Mensch on a Bench
DEAL
EPISODE SUMMARY
🕓 Air Date: December 12, 2014
Asking For:
$150,000 for 10%
Investor:
Lori Greiner, Robert Herjavec (50/50)
Deal:
$150,000 for 15%
PRODUCT SUMMARY
Mensch on a Bench is a new Jewish family tradition for Hanukkah, featuring a 12-inch Mensch figurine, a bench, and a hardcover book that tells the story of Moshe the Mensch.
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Background Story
Neal Hoffman, the founder of Mensch on a Bench, hails from Cincinnati, Ohio. As a former Hasbro toy executive, Neal brought a wealth of experience in the toy industry to the creation of his unique product. The genesis of Mensch on a Bench occurred within the context of Neal’s interfaith marriage, where the “December Dilemma” became a recurring challenge during the holiday season. Walking through a store with his son, who asked for an Elf on a Shelf, Neal realized the need for a Jewish alternative that could resonate with his own family’s traditions.
Rejecting the idea of elves, Neal conceptualized Mensch on a Bench as a character that could not only fill the void but also serve as an educational tool for Jewish children. The inspiration struck him like lightning, leading to the creation of Moshe the Mensch and the accompanying story that introduces different Jewish traditions each night. Neal’s personal experience navigating the complexities of an interfaith family during the holidays fueled his determination to create a product that would bring joy and meaningful traditions to households like his own.
Motivated by his commitment to preserving and enhancing Jewish traditions, Neal took the entrepreneurial leap, raising $22,000 on Kickstarter and successfully selling 1,000 units. The subsequent pre-orders for an additional 1,000 units signaled the potential success of Mensch on a Bench. With a solid background in the toy industry and a personal connection to the product’s purpose, Neal Hoffman embarked on a journey to make Mensch on a Bench a cherished and enduring part of Hanukkah celebrations for families across the nation.
The Product
Mensch on a Bench is a heartwarming and educational holiday product designed to enhance Hanukkah traditions for Jewish families. Each Mensch on a Bench package includes a 12-inch Mensch figurine, a dedicated bench, and a hardcover book recounting the story of Moshe the Mensch. Positioned as an alternative to the popular Elf on a Shelf, the Mensch becomes a centerpiece for Hanukkah celebrations, embodying positive values and acting as a do-gooder character.
The Mensch figurine serves practical functions during Hanukkah rituals, watching over the menorah and holding the shamash, the leader candle. The accompanying book introduces different Jewish traditions each night, making it both entertaining and educational for children. Priced at $29.99 for big-box retailers and $34.99 for specialty stores, Mensch on a Bench has successfully penetrated major retailers like Bed Bath & Beyond, Target, Barnes & Noble, Michaels, and Toys “R” Us.
The product’s success lies in its ability to bring joy to Jewish households during the holiday season, offering a unique and culturally relevant alternative to existing holiday traditions. The Mensch on a Bench not only serves as a decorative and symbolic figure but also fosters a sense of community and values, making it a meaningful addition to Hanukkah celebrations. Consumers can easily purchase Mensch on a Bench from various retail outlets, making it accessible to families seeking to create lasting and festive memories during the holiday season.
How It Went
The company’s position before Shark Tank
Mensch on a Bench has demonstrated robust performance, positioning itself as a notable player in the holiday product market, particularly during the Hanukkah season. The company’s health and position appear strong, with an anticipated sales projection of $930,000 on 60,000 units for the current year. Mensch on a Bench has secured partnerships with significant retailers, including Bed Bath & Beyond, Target, Barnes & Noble, Michaels, and Toys “R” Us, showcasing its appeal to diverse consumer segments. The company has strategically addressed inventory challenges by having retailers take possession of the inventory F.O.B. from China, mitigating risks associated with managing stock.
With a cost of $7.45 per unit, Mensch on a Bench is poised to generate substantial profits, with an expected $250,000 profitability in the current year. Founder Neal Hoffman’s background as a former Hasbro toy executive has likely contributed to the company’s effective navigation of the toy market. The customer base for Mensch on a Bench extends to Jewish households seeking to enrich their Hanukkah traditions. The product’s success lies in its ability to resonate with interfaith families and provide an alternative holiday tradition that is both entertaining and educational.
The positive response to Mensch on a Bench has prompted the company to secure substantial funding, initially raising $22,000 on Kickstarter. As for the company’s current structure, it is mentioned that Neal Hoffman is working part-time, devoting two days a week to Mensch on a Bench while continuing to work three days in his former job. The company’s structure may evolve, given Neal’s readiness to quit his job and commit full-time to Mensch on a Bench upon securing a deal in the Shark Tank negotiation. Overall, Mensch on a Bench appears to be in a strong position, combining cultural significance with commercial success in the competitive holiday product market.
The Negotiations:
In the Shark Tank negotiations for Mensch on a Bench, founder Neal Hoffman entered seeking $150,000 for a 10% equity stake in his holiday product company. The sharks, concerned about the seasonal nature of the product and the associated inventory risks, raised questions about its long-term viability. Kevin O’Leary and Mark Cuban opted out, expressing skepticism about the scalability and potential profits. Lori Greiner and Robert Herjavec collaborated on a joint offer, proposing $150,000 for a 30% equity stake. However, this offer seemed steep to Neal, who was hesitant to relinquish such a significant portion of his company.
As the negotiation progressed, Lori and Robert revised their offer, suggesting the same $150,000 investment but for a 15% equity stake. This revised offer included a unique aspect—a guaranteed payback over three years, addressing concerns about the company’s performance. Barbara Corcoran then entered the negotiations with a competitive offer of $150,000 for a 20% equity stake, proposing changes to enhance the Mensch’s face and book content.
In a surprising turn, Lori Greiner and Robert Herjavec re-entered the negotiation, expressing their continued interest in Mensch on a Bench. Neal, considering the broader expertise and connections of both sharks, accepted their joint offer, securing a deal with Lori Greiner and Robert Herjavec. This negotiation showcased the sharks’ concerns, competitive spirit, and the dynamics of striking a balance between equity, investment, and strategic guidance for the future of Mensch on a Bench.
