Pinch Me Therapy Dough
DEAL
EPISODE SUMMARY
🕓 Air Date: March 5, 2021
Asking For:
$300,000 for 7%
Investor:
Robert Herjavec
Deal:
$300,000 for 20%
PRODUCT SUMMARY
Pinch Me Therapy Dough is an innovative, aromatherapy-infused, moldable, multisensory stress reliever designed to reduce stress quickly.
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Background Story
Nancy Rothner’s journey from a former stockbroker to a therapist specializing in stress reduction is a testament to her unwavering commitment to helping others. With a background in finance, Nancy discovered her true calling when she volunteered at a domestic violence shelter. Witnessing the struggles of individuals dealing with trauma and stress ignited a deep passion within her to make a positive impact on their lives.
Nancy’s dedication to her newfound path led her to pursue extensive training and certification in therapeutic services. Over the years, she honed her skills in assisting people in overcoming various challenges, ranging from addictions to phobias and, most notably, stress. Her expertise in stress reduction became a guiding force in her life, driving her to explore innovative ways to reach a wider audience and offer them solace from the burdens of stress.
The catalyst for Pinch Me Therapy Dough emerged during a pivotal moment of reflection. While contemplating how to extend her reach beyond her therapy sessions, the idea for a tangible stress-relief product struck her like a bolt of inspiration. She envisioned a product that would empower individuals to manage their stress effectively, especially during the heightened stress levels brought on by the global pandemic.
Despite encountering personal trials, including her husband’s leukemia diagnosis, Nancy remained resolute in her mission. She managed to secure initial retail placements for her product, and sales began to soar. However, when life threw her a curveball, she temporarily halted sales to navigate her husband’s health crisis. Despite these setbacks, Nancy’s determination and unwavering belief in Pinch Me Therapy Dough’s potential never waned.
The Product
Pinch Me Therapy Dough is a versatile and user-friendly stress-relief tool. Its moldable nature allows individuals to knead, massage, or shape it as they prefer. What sets it apart is the infusion of aromatherapy scents that enhance the calming effect. The product is safe, non-toxic, and has undergone lab testing to ensure its safety for users.
Pinch Me Therapy Dough is available in different sizes to cater to varying needs and preferences. The smaller version is priced at $4.50, with a retail price of $14.99, offering a cost-effective solution for individuals seeking stress relief. The larger size, priced at $7.50 with a retail value of $24.99, provides even more value for users.
Users can use Pinch Me Therapy Dough repeatedly, making it a practical and sustainable solution for managing stress. Its user-friendly nature, combined with its effectiveness in stress reduction, has made it a popular choice among those seeking relief from stress in their daily lives.
How It Went
The company’s position before Shark Tank
With lifetime sales totaling an impressive $5.3 million, Pinch Me Therapy Dough has demonstrated its market appeal and effectiveness as a stress-relief solution. The journey began in 2015 when Nancy Rothner introduced the product to retail stores. Almost immediately, her pitch resonated with retailers, resulting in quick acceptance and high demand.
However, as life sometimes presents unforeseen challenges, Nancy’s personal life took a significant turn when her husband was diagnosed with leukemia. In the face of this health crisis, she made the difficult but necessary decision to temporarily put sales on hold, prioritizing her family’s well-being. It was a testament to her dedication not only to her business but also to her loved ones.
Despite this hiatus, Pinch Me Therapy Dough has made a remarkable comeback. In 2016, the company achieved sales of $200,000. This figure rose steadily in subsequent years, reaching $800,000 in 2017 and an impressive $1.6 million in 2018. Even in the face of the COVID-19 pandemic, which significantly impacted retail sales, the company was poised for continued growth, with projected sales of at least $2.5 million for the beginning of the current year.
However, the pandemic’s challenges led to a revised outlook. Pinch Me Therapy Dough has managed to maintain a sales figure of $760,000 despite the turbulent market conditions. The projected profit for 2023 stands at $220,000, reflecting the company’s ability to adapt to challenging circumstances.
The Negotiations:
After presenting her pitch and allowing the Sharks to experience the product firsthand, Nancy Rothner received an offer from Robert Herjavec. He proposed investing $300,000 in exchange for a 20% equity stake in the company. Nancy was intrigued by Robert’s offer, considering his extensive business experience and the potential for his guidance in developing an online presence for the product.
Daymond John, also expressing interest in Pinch Me Therapy Dough, initially offered the same investment amount of $300,000 but with a slightly higher equity demand of 25%. Nancy appreciated Daymond’s interest but was drawn to Robert’s offer due to his expertise and the potential for synergies in building an online strategy for the product.
During the negotiation, Nancy decided to accept Robert Herjavec’s offer of $300,000 for 20% equity. Her choice was influenced by Robert’s knowledge and willingness to assist with the development of an e-commerce strategy for the company. The negotiation highlighted the importance of building a robust online presence in today’s market, which Nancy recognized as a valuable opportunity to expand Pinch Me Therapy Dough’s reach.
Ultimately, Nancy’s decision to partner with Robert Herjavec aligned with her vision for the company’s growth and her desire to reduce stress for individuals on a global scale. The negotiation process showcased the value of experienced guidance and strategic planning in the business world and laid the foundation for a promising collaboration between Nancy and Robert.
