Milk Snob – Infant Car Seat & Nursing Cover
DEAL
EPISODE SUMMARY
🕓 Air Date: November 11, 2016
Asking For:
$125,000 for 5%
Investor:
Lori Greiner
Deal:
$150,000 for 10%
PRODUCT SUMMARY
Milk Snob is a multi-use accessory for new moms, serving as an infant car seat cover and a breathable nursing cover with 360-degree coverage.
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Background Story
Milk Snob, founded by Melanie Disbrow and based in Allen, Texas, is a testament to entrepreneurial ingenuity born out of personal experience. Originally from Germany, Melanie moved to the United States with her husband, who served in the military. Faced with the challenges of being a new mom and unable to attend college due to family commitments, Melanie took the initiative to teach herself photography. The inspiration for Milk Snob arose from the practical difficulties encountered with conventional infant car seat covers.
Melanie, like many parents, found that traditional blankets and canopy covers would not stay in place, often getting pulled off by her children or blown away by the wind. Determined to find a solution, she conceived the idea of a versatile accessory that could serve as both an effective car seat cover and a practical nursing cover. The Milk Snob cover, as presented on “Shark Tank,” offers a simple yet innovative solution. It fits onto any infant car seat within seconds, providing breathability and allowing parents to easily check on their sleeping baby. Its soft and breathable design also transforms it into a nursing cover, offering 360-degree coverage for confident breastfeeding in public.
The product’s utility, combined with Melanie’s firsthand experience as a mother, has contributed to its widespread popularity among new parents. The success story of Milk Snob is intertwined with Melanie’s journey from being a self-taught photographer to the founder of a thriving business. Her resilience, coupled with the practical needs of parenting, led to the creation of a product that has not only addressed a common challenge faced by parents but has also garnered substantial sales and attention, making it a must-have for new parents everywhere.
The Product
The Milk Snob cover is a versatile and innovative accessory designed to simplify the lives of new parents. Primarily functioning as an infant car seat cover, it boasts a user-friendly design that easily fits onto any infant car seat within seconds. The cover addresses a common problem faced by parents – the inability of conventional blankets and canopy covers to stay in place. The Milk Snob cover’s secure fit ensures it remains in position, even in windy conditions, eliminating the frustration experienced with traditional covers.
Beyond its utility as a car seat cover, the Milk Snob serves a dual purpose as a nursing cover. The fabric is soft and breathable, offering a comfortable environment for the baby while providing 360-degree coverage for discreet breastfeeding in public. This multifunctional aspect makes it an essential accessory for on-the-go parents, offering convenience and privacy during feeding times.
Priced at $36, the Milk Snob cover is available for purchase online, with an emphasis on social media advertising for promotion. Manufactured in Dallas, Texas, the product’s retail price reflects its quality and the commitment to domestic production. The success of the Milk Snob cover is evident in its rapid sales growth, with $800,000 in revenue generated over the last five months, attesting to its popularity and practicality among new parents.
How It Went
The company’s position before Shark Tank
Milk Snob has demonstrated robust performance and rapid growth in its relatively short existence. Over the span of 18 months, the company achieved an impressive $1.2 million in sales, a testament to the widespread appeal of its versatile infant car seat cover and nursing accessory. The recent five-month period saw an exceptional surge in sales, reaching $800,000, highlighting a trajectory of increasing demand.
The company’s success has been propelled by a strategic focus on online sales, primarily through social media channels. This approach has effectively reached its target demographic of new parents, creating substantial brand awareness and driving sales. Despite being a relatively young company, Milk Snob has attracted attention from larger retail stores, indicating its potential for further expansion and market penetration.
Milk Snob’s commitment to domestic production is noteworthy, with manufacturing taking place in Dallas, Texas. This decision aligns with a trend of supporting local industries and has likely contributed to the company’s positive image among consumers. The company’s customer base is widespread, reaching new parents across various demographics who appreciate the practicality and quality of the Milk Snob cover. With a retail price of $36, the product is positioned as an accessible yet premium accessory for parents seeking convenience and comfort.
The Negotiations:
The negotiations for Milk Snob on “Shark Tank” unfolded with a series of compelling offers from three Sharks: Lori Greiner, Chris Sacca, and Mark Cuban. Melanie Disbrow, the founder, sought $125,000 in exchange for 5% equity in her company, and the Sharks were quick to express their interest in the innovative infant car seat cover and nursing accessory. Lori Greiner, recognizing the product’s potential, made a strong offer of $150,000 for a 10% stake. Chris Sacca followed with an offer of $125,000 for 8%, while Mark Cuban offered the same amount for a 10% share.
The negotiation took an unexpected turn when Lori and Chris expressed a desire to partner together on the deal, suggesting Melanie increase the equity offer. However, Melanie was hesitant to go beyond 5% or 10% equity. After some back-and-forth and playful banter among the Sharks, Lori secured the deal at $150,000 for 10%, ultimately winning Melanie’s acceptance. Mark and Chris gracefully bowed out, acknowledging the strength of Lori’s offer and expressing excitement about the potential of the partnership.
The negotiation showcased the Sharks’ diverse strategies and their recognition of Milk Snob’s market appeal. Melanie’s reluctance to compromise on equity demonstrated her commitment to the value of her company. In the end, the deal with Lori marked a significant milestone for Milk Snob, opening doors to potential growth, increased exposure, and the expertise of a seasoned entrepreneur. The negotiation’s outcome reflected both the entrepreneurial spirit and strategic acumen that define successful ventures on “Shark Tank.”
