Peanut Butter Pump
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 10, 2019
Asking For:
$200,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Peanut Butter Pump is designed to make using peanut butter cleaner and more convenient by providing a mess-free way to dispense it from the jar.
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Background Story
Andy Scherer, the founder of Peanut Butter Pump, was inspired to create the product after being laid off from a job in financial services. With a passion for peanut butter and a desire to innovate, Scherer embarked on a journey to become an inventor. The idea for the Peanut Butter Pump was born out of frustration with the traditional method of scooping peanut butter from a jar, which he found messy and inefficient.
Two and a half years ago, he started working on the prototype and launched a crowdfunding campaign, initially asking for $20,000. The campaign proved successful, with total sales reaching $129,000. Despite facing challenges and delays in production, Scherer remained transparent with his backers. The Peanut Butter Pump is not only a product but a symbol of Scherer’s determination to overcome adversity and create a solution to a common problem.
The Product
The Peanut Butter Pump is a device designed to revolutionize the way people use peanut butter. It addresses the messiness and inconvenience associated with scooping peanut butter from a jar. The pump allows users to easily dispense the desired amount of peanut butter without the need for a knife or spoon. It features a 10-millimeter inlet to accommodate chunks of stabilized peanut butter, catering to the preferences of different consumers.
The prototype presented on Shark Tank showcased the product’s functionality, emphasizing its ability to measure peanut butter for recipes and clean the sides of the jar efficiently. However, the pump is specified to work with stabilized peanut butter, indicating a limitation in compatibility.
The crowdfunding campaign generated substantial pre-orders, reflecting a market interest in the innovation. The average price during the campaign was $27, positioning the Peanut Butter Pump as a premium kitchen gadget. While the product has generated pre-orders and sales, it faced scrutiny from the Sharks regarding its necessity and the target market’s size.
How It Went
The company’s position before Shark Tank
The Peanut Butter Pump has demonstrated market interest, with a crowdfunding campaign that surpassed its initial funding goal, reaching $129,000 in total sales. The founder, Andy Scherer, revealed that there are pre-orders for the product, indicating a demand for the innovation. However, challenges in production and delays have been acknowledged, and Scherer has been transparent with backers about these issues.
The product’s price during the crowdfunding campaign was $27 on average, positioning it as a relatively high-end kitchen accessory. The target market appears to be individuals and families who regularly use peanut butter, with a focus on households with school-age children and fitness bars. The product’s compatibility is limited to stabilized peanut butter, potentially restricting its appeal to a niche audience.
While Scherer has withdrawn some funds from the campaign, he expressed a need for additional investment to continue production, highlighting potential financial challenges. The company’s current structure and partnerships were not explicitly mentioned in the pitch, leaving some gaps in understanding its overall health and position in the market.
The Negotiations:
The Sharks engaged in a lively and humorous discussion with Andy Scherer, expressing skepticism about the Peanut Butter Pump’s necessity and market size. Despite initial interest from some Sharks, including Daymond John, who appreciated the quick sales and community engagement, no deal was secured. The negotiations primarily focused on the product’s compatibility with different types of peanut butter, the size of peanut chunks that could be accommodated, and the overall value of the business.
Kevin O’Leary raised concerns about the community’s preferences and questioned the need for a pump for such a common kitchen item. Mark Cuban, while acknowledging the elegance of the design, ultimately found the asking valuation of $200,000 for 15% equity to be too high, stating that the entire business wasn’t worth that amount.
The negotiation concluded with all Sharks opting out, wishing Scherer luck with his product. Despite not securing a deal, Scherer remained optimistic about the Peanut Butter Pump’s future, expressing confidence that someone else would recognize its potential.
