Little Burros – Gardening Tools
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 1, 2020
Asking For:
$250,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Little Burros presents the Burro Buddy, a garden tray that attaches to wheelbarrows, offering organization and convenience for gardening tools and beverages.
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Background Story
Little Burros, a family-owned business based in the USA, was founded by Bob Thorsen, a general contractor, and his daughter Mollie Thorsen. The inspiration behind their product, the Burro Buddy, came from Bob’s desire to reclaim his mornings by solving the issue of misplaced gardening tools.
The company is a tribute to family unity, with Mollie emphasizing its importance after her sister Rebecca, who served as the CFO, passed away in 2016. The Burro Buddy, aimed at simplifying gardening tasks, is a manifestation of their dedication to continuing Rebecca’s legacy and expanding their innovative product line.
The Product
The Burro Buddy is a lightweight garden tray designed to fit standard wheelbarrows. It efficiently organizes long and short-handled tools, and beverages, and even includes a water-resistant compartment for protecting cellphones from the elements.
Weighing only 3 pounds, it can be easily attached and removed, serving as a portable garden tray as users move around their yards. The product proudly made in the USA, caters to the needs of gardening enthusiasts by maximizing efficiency and minimizing the hassle of searching for tools.
How It Went
The company’s position before Shark Tank
Little Burros has shown robust performance, securing placements in major retailers like Target, Menards, Duluth Trading, Ace, and True Value. With a presence in big-box stores nationwide, their sales have reached 2,500 units per month since January, translating to approximately $400,000 in revenue. Priced at $25 FOB with an MSRP of $39.95, the Burro Buddy is cost-effective to produce at $10.50.
The company has invested around $1 million in the business, ensuring that every aspect, including design and engineering, is patented. The founders expressed a desire to utilize the $250,000 sought from the Sharks to expand their product line and create an innovative tool brand.
The Negotiations:
Barbara Corcoran and Mark Cuban both opted out of making offers, emphasizing the family’s significant investment and the potential challenges of bringing in external investors. The pitch garnered interest from the Sharks, with Kevin O’Leary and Lori Greiner making offers. O’Leary offered $250,000 for a $7 royalty until he recoups $500,000, along with a 7% equity stake.
Greiner proposed a $250,000 loan at 6% interest, with a $5 royalty until the loan is repaid and a 3% equity stake. The founders, however, chose not to accept either offer, citing their preference for avoiding royalty deals. In the end, the founders expressed gratitude for the offers but decided not to move forward, valuing their independence and current trajectory. The Sharks respected their decision, and the Little Burros team left the Tank without securing a deal.
