InchBug – Personalized Bottle Name Labels
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 22, 2016
Asking For:
$400,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
MyDrinky is a two-piece, adjustable juice-box holder designed to prevent accidental squeezes, and InchBug also offers Orbit Labels for baby bottles and sippy cups.
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Background Story
Brenda Lee Feldman, the founder of InchBug, started the business in 2004 out of her garage in Austin, Texas. She initially created Orbit Labels, personalized labels for baby bottles and sippy cups, and over the past 10 years, InchBug has sold $15 million worth of these labels, with $2 million in sales in the past year. The company experienced challenges with inventory due to a fire at its U.S.-based manufacturer’s plant.
Despite this setback, Orbit Labels has maintained steady sales, reaching $2 million per year for the past four years. Brenda introduced MyDrinky, a two-piece juice-box holder designed to prevent accidental squeezes, seeking $400,000 for a 10% stake in the company.
The Product
MyDrinky is a two-piece, adjustable juice-box holder designed to prevent children from squeezing juice boxes and pouches, avoiding spills and stains on clothes and furniture. The product is demonstrated on the show, showing its simple design and functionality. It comes in four colors and is adjustable to accommodate various sizes of juice boxes and pouches.
Brenda also mentions Orbit Labels, the first product she invented, which are personalized labels for baby bottles and sippy cups. Orbit Labels have sold $15 million over the past 10 years, with $2 million in sales in the past year. The labels are sold in packages of four for $12.95, with a manufacturing cost of $1.44 per package.
How It Went
The company’s position before Shark Tank
InchBug has experienced significant growth since its inception in 2004, with sales increasing from $150,000 in the first year to $850,000 in the second year. The company faced challenges with inventory due to a fire at its U.S.-based manufacturer’s plant, impacting MyDrinky’s availability. Despite this setback, Orbit Labels have maintained steady sales, reaching $2 million per year for the past four years. The labels are personalized, sold online, and have a manufacturing cost of $1.44 per package, sold for $12.95. InchBug’s distribution initially started from Brenda’s home and garage but later expanded online.
The Negotiations:
Brenda entered the tank seeking $400,000 for a 10% stake in InchBug. The Sharks expressed skepticism about MyDrinky’s potential success in the retail space and advised Brenda to focus on the proven product, Orbit Labels. Kevin O’Leary made an offer of $400,000 for a 5% stake with a royalty until he recoups three times his investment. However, the other Sharks, including Barbara Corcoran, Lori Greiner, Mark Cuban, and Robert Herjavec, were not convinced about the retail strategy and the potential success of MyDrinky.
They emphasized the challenges and risks associated with entering the retail market. Ultimately, Brenda declined O’Leary’s offer, expressing confidence in her vision for growing the business, including exploring the retail space. The Sharks were divided in their opinions, with some expressing concern for Brenda’s decision to venture into retail, while others admired her determination.
