Kettle Gryp Dumbbell Holder
DEAL
EPISODE SUMMARY
🕓 Air Date: January 28, 2022
Asking For:
$300,000 for 10%
Investor:
Lori Greiner
Deal:
$300,000 for 15%
PRODUCT SUMMARY
Kettle Gryp is a portable dumbbell adapter designed to transform existing dumbbells into kettlebells, offering a versatile and space-saving workout solution.
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Background Story
Kettle Gryp was founded by Dan and Andy, childhood friends hailing from Missoula, Montana, and Locust Grove, Georgia, respectively. The two founders brought diverse backgrounds and experiences to the table. Dan, a former Marine Corps pilot with 20 years of service, had extensive expertise in discipline and precision. His experience in the military instilled in him a strong sense of problem-solving and innovation. Meanwhile, Andy had established himself as an entrepreneur, having operated multiple successful ice cream stores in San Diego, California, earning him the moniker “the ice cream king of Mission Beach.”
The genesis of Kettle Gryp occurred as a response to the inherent limitations of conventional kettlebells. Recognizing the high cost and space constraints associated with kettlebells, Dan conceived the idea of transforming existing dumbbells into functional kettlebells. This revelation came as a result of his personal need for a versatile workout solution that didn’t require extensive equipment. Impressed by Dan’s initial concept, he shared it with his longtime friend, Andy. Despite the rough initial sketch, the duo recognized the potential for a practical and portable workout solution.
Their collaborative efforts culminated in the development of Kettle Gryp, a portable dumbbell adapter that allowed users to perform a wide array of kettlebell exercises with standard dumbbells. The product’s creation symbolized their shared commitment to providing fitness enthusiasts with a cost-effective and convenient alternative for comprehensive full-body workouts, irrespective of their location or access to specialized gym equipment.
The Product
Kettle Gryp is a revolutionary fitness accessory designed to maximize workout flexibility and convenience. Compatible with most standard dumbbells, it offers users the functionality of a kettlebell without the need for additional bulky equipment. The product’s intuitive design allows for easy conversion of a standard dumbbell into a fully functional kettlebell, enabling users to perform various exercises such as swings, upright rows, overhead presses, enhancing their range of motion and functional strength.
With its sturdy build and secure latch mechanism, Kettle Gryp ensures a safe and reliable workout experience. Its ergonomic grip design provides added comfort and stability during exercises, eliminating the discomfort commonly associated with traditional kettlebells. Additionally, Kettle Gryp boasts a weight capacity of up to 55 pounds, making it suitable for a wide range of fitness levels and exercise regimens.
Fitness enthusiasts can purchase Kettle Gryp directly from the company’s website or through various online marketplaces. The product is competitively priced at $34.95, offering users a cost-effective solution compared to purchasing separate kettlebells. Its affordability and portability make it an ideal choice for individuals looking to maintain a consistent workout routine both at home and while traveling. With its user-friendly features and versatile functionality, Kettle Gryp serves as a valuable addition to any fitness enthusiast’s workout equipment collection.
How It Went
The company’s position before Shark Tank
Kettle Gryp has demonstrated remarkable growth and resilience in the fitness equipment market, solidifying its position as a leading provider of innovative workout solutions. With a strong emphasis on online sales, the company has capitalized on the burgeoning demand for portable and versatile fitness equipment, leveraging its robust digital presence to reach a wide customer base. The majority of their sales, approximately 92%, are generated through various online marketplaces, showcasing their proficiency in e-commerce operations and digital marketing strategies.
The company’s strategic focus on maintaining a strong profit margin has contributed to its financial stability, with a production cost of $6.57 per unit and a retail price of $34.95, yielding an impressive 81% profit margin. This profitability has facilitated sustainable business growth and provided the necessary resources for continuous product innovation and development. Kettle Gryp has upheld its commitment to domestic production, manufacturing all its products within the United States. This dedication to local manufacturing has not only bolstered the company’s position as a supporter of the American manufacturing industry but has also contributed to its brand identity as a provider of high-quality, domestically produced fitness equipment.
Although the founders acknowledged their limited expertise in marketing, the company’s commendable sales figures, reaching a lifetime total of 106,005 units sold, have solidified its position as a prominent player in the fitness equipment market. However, the company recognizes the need for strategic partnerships to further expand its market reach and venture into new distribution channels, particularly in the big-box retail sector, where it has encountered challenges in securing partnerships. The founders’ previous experiences in diverse fields, ranging from military service to entrepreneurship, have instilled a strong sense of discipline, resilience, and adaptability within the company, contributing to its current structured approach to business operations and future expansion plans.
The Negotiations:
During the negotiation process on Shark Tank, the founders of Kettle Gryp presented a compelling case, highlighting their impressive sales figures and unique value proposition. While some sharks, like Robert and Mark, chose not to invest, Kevin and Daymond made offers. Kevin proposed a $300,000 investment for a 20% equity stake. Lori, recognizing the potential for the product in the retail market, put forth a creative offer for the same investment amount but with preferred stock, ensuring priority distribution during profit payouts.
Amid the offers, Daymond was hesitant, citing the limited consumer base due to the product’s reliance on existing dumbbells. Eventually, he opted out of the deal. Despite initial interest from Mr. Wonderful, the founders were drawn to Lori’s expertise and her promise to facilitate retail expansion. They ultimately accepted Lori’s offer, agreeing to a $300,000 investment for a 15% stake, establishing a beneficial partnership that would leverage Lori’s marketing acumen to propel Kettle Gryp into new market segments.
The negotiation process highlighted the product’s unique positioning and potential for growth, as well as the Sharks’ recognition of its profitability and innovative design. Lori’s strategic offer, combined with her vision for the company’s expansion into the retail sector, resonated with the founders, leading to a mutually beneficial agreement that paved the way for Kettle Gryp to tap into a broader consumer market under Lori’s guidance.
