NeatCheeks – Flavoured Face Wipes
DEAL
EPISODE SUMMARY
🕓 Air Date: April 17, 2015
Asking For:
$150,000 for 20%
Investor:
Barbara Corcoran
Deal:
$150,000 for 25%
PRODUCT SUMMARY
NeatCheeks offers flavored, plush, moisturizing wipes for easy and tantrum-free cleanup of kids' faces and hands.
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Background Story
NeatCheeks, a company founded by Danielle Stangler and Julia Rossi in Castle Rock, Colorado, emerged from a moment of parental ingenuity and a genuine need for a better solution to messy mealtime cleanups. The two mothers, collectively raising six children, found themselves facing the all-too-common challenge of cleaning a child’s face without the convenience of typical wipes during a restaurant visit. Danielle’s inspiration struck when, lacking her usual wipes, she enlisted her husband’s help to use a napkin dipped in lemonade to clean their 18-month-old daughter’s messy face.
To their surprise, the child’s positive response, expressing delight and asking for more, sparked the innovative idea of creating flavored face wipes. This lightbulb moment in a quiet restaurant laid the foundation for NeatCheeks. Both founders bring a wealth of parenting experience to their venture, having navigated the trials and joys of raising children. Through their collective journey of raising six kids, Danielle and Julia developed a keen understanding of the challenges faced by parents during mealtime cleanup. Their shared experiences provided valuable insights into what would make the process not only efficient but also enjoyable for both parents and children.
Over a span of four years, the founders meticulously developed and fine-tuned the NeatCheeks product, ensuring it met the highest standards of quality, effectiveness, and safety. The result is a unique offering in the form of flavored, plush, moisturizing wipes designed to be gentle on sensitive skin and, most importantly, to make the cleanup process easy and tantrum-free. The NeatCheeks journey reflects a blend of parental insight, innovation, and a genuine commitment to providing a premium solution for families dealing with the messy realities of raising children.
The Product
NeatCheeks introduces a revolutionary solution to the challenges of messy kids with their uniquely flavored, plush, and moisturizing wipes. Designed to simplify and enhance the cleanup process, these wipes offer a delightful experience for both parents and children. The wipes are specifically formulated to be gentle on sensitive skin, making them perfect for cleaning faces and hands after messy meals.
What sets NeatCheeks apart is the addition of Stevia, a natural plant extract, for a mildly sweet flavor that kids love. This innovation turns the often-dreaded cleanup into a tantrum-free and enjoyable moment. The wipes are free from sticky residues, as Stevia is not sugar, ensuring a pleasant experience for both parents and kids. Available at the price of $3.99 per pack, each containing 12 wipes, NeatCheeks provides a premium but effective solution for parents seeking a hassle-free cleanup alternative.
The production cost of 72 cents per unit is planned to decrease to 53 cents at larger volumes. NeatCheeks is already making waves in the market, with a successful 90-day test at Walgreens and plans for regional expansion. Parents can purchase these innovative wipes at various retail locations, making NeatCheeks a convenient and sought-after choice for those looking to transform messy moments into happy experiences.
How It Went
The company’s position before Shark Tank
NeatCheeks has demonstrated a promising performance, positioning itself as a rising player in the market for innovative parenting solutions. With approximately $4,000 in sales this year, the company anticipates a significant revenue boost, projecting figures between $90,000 and $100,000 by the end of the year. These optimistic projections are fueled by a strategic launch at a major trade show, indicating the brand’s commitment to expanding its market presence. NeatCheeks has secured partnerships with nearly 40 retail locations, including a successful 90-day test at Walgreens. This strategic collaboration resulted in a rapid reorder within just 30 days, emphasizing the product’s market appeal.
The founders aim to further penetrate the market by rolling out regionally with Walgreens, showcasing the brand’s potential for broader distribution. Currently, NeatCheeks sources its funding primarily through sales revenue, marking a self-sustaining model. The founders have showcased resourcefulness and financial prudence, developing the product at a production cost of 72 cents per unit, with plans to decrease it to 53 cents at larger volumes. The company’s ability to secure retail partnerships and maintain a positive trajectory in sales indicates a healthy financial position.
The company’s structure is founded on the expertise and dedication of its two creators, Danielle Stangler and Julia Rossi. With a combined experience of raising six children, the founders have been hands-on in the product development process, ensuring that NeatCheeks aligns with the needs and preferences of their target demographic—parents dealing with messy mealtime cleanups. The company’s current structure emphasizes a customer-centric approach, innovation in product development, and strategic partnerships to fuel its growth in the parenting product market.
The Negotiations:
The negotiations for NeatCheeks on “Shark Tank” were a rollercoaster of offers, with several sharks expressing interest and concerns. After presenting their flavored, plush wipes, Danielle Stangler and Julia Rossi sought a $150,000 investment for 20% equity in their company. The sharks were intrigued by the unique concept but voiced concerns about the lack of a patent and the potential vulnerability to competition. Barbara Corcoran and Lori Greiner both made offers of $150,000 for 25%, contingent on the patent approval. However, Barbara went beyond the financial investment, highlighting the added value of joining her entrepreneurial family, where resources and expertise are shared among her successful entrepreneurs.
Mark Cuban, while expressing interest, pointed out the potential challenge of entering a market where larger competitors could replicate the idea without a patent. Kevin O’Leary and Robert Herjavec also expressed reservations, with Kevin emphasizing the risk of exposing the idea to competitors at trade shows. The negotiation took an unexpected turn when Barbara and Lori engaged in a spirited debate, each presenting the benefits of joining their respective entrepreneurial families.
In the end, the entrepreneurs chose Barbara’s offer, appreciating her alignment with their strategic objectives and the potential support from her network. The negotiation process showcased the delicate balance between financial offers and the additional value that sharks can bring to a partnership. The entrepreneurs ultimately selected Barbara’s offer, excited about the prospect of not just an investment but also the strategic support and connections that could propel NeatCheeks to greater heights in the parenting product market.
