LIT Handlers – Drink Handlers
DEAL
EPISODE SUMMARY
🕓 Air Date: May 21, 2021
Asking For:
$200,000 for 10%
Investor:
Daymond John
Deal:
$200,000 for 20%
PRODUCT SUMMARY
LIT Handlers are beverage insulators with an integrated easy-to-grip handle and a pocket for convenience, designed to prevent condensation and provide a stylish way to hold various drink containers.
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Background Story
Destiny Padgett, originally from Buna, Texas, became an entrepreneur out of necessity when she was a young mother. After moving to Utah and later returning to Texas, she started her first Etsy store in 2014. Her journey led her to create LIT Handlers, a unique solution to the problem of holding cold and wet beverage containers.
Destiny’s innovative idea included a patent-pending handle with an integrated pocket, providing convenience and style for drink enthusiasts. With no formal college education in entrepreneurship, she relied on her family’s entrepreneurial background for support and guidance.
The Product
LIT Handlers are beverage insulators designed to provide a comfortable and convenient way to hold various drink containers. These insulators come with an easy-to-grip handle that distributes the weight of the beverage, preventing the container from becoming cold and wet.
What sets LIT Handlers apart is the integrated pocket within the handle, allowing users to carry small items like lip balm, pens, or keys. The product is available in different sizes to accommodate a wide range of drink containers, from iced coffee cups to beer cans.
Customers can purchase LIT Handlers directly from the company’s website, on Etsy, or through Amazon. Wholesale orders are also available, with a minimum purchase requirement of three units. The pricing varies based on the size of the insulator, with retail prices ranging from $8.99 to $12.99.
How It Went
The company’s position before Shark Tank
LIT Handlers has experienced remarkable growth, with year-to-date sales reaching $630,000 at the time of the pitch. The company primarily operates online, selling products through its website, Etsy, and Amazon. Sales are evenly split between wholesale and retail channels.
Manufactured overseas in China, the insulators have a production cost ranging from $1.20 to $1.60, depending on the size. Wholesale prices start at $3.19 per unit, while retail prices range from $8.99 to $12.99. LIT Handlers is a debt-free company, with Destiny Padgett owning 100% of the business. She projected a net profit of around $200,000 for the year and was seeking investment to support growth, expand into licensing opportunities, and explore new markets, such as sports merchandise and college bookstores.
The Negotiations:
Destiny Padgett entered the Shark Tank seeking $200,000 for a 10% equity stake in LIT Handlers. Lori Greiner and Mark Cuban both praised Destiny’s accomplishments but declined to invest and so did Kevin O’Leary after Daymond’s offer. Kevin O’Leary was the first to make an offer, proposing $200,000 for 20% equity. Daymond John followed with an offer of $200,000 for 25% equity.
Ultimately, Destiny accepted Daymond John’s offer of $200,000 for 20% equity, agreeing to reduce her equity stake from the original 10% request. This deal allowed LIT Handlers to gain a valuable partner with experience in licensing and access to premium companies for merchandise sales. The negotiation highlighted Destiny’s impressive growth and business acumen, as well as the sharks’ recognition of the product’s potential in the market.
