PODillow
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 15, 2010
Asking For:
$250,000 for 33%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Podillow is a facedown tanning and massage pillow with internal storage pockets for personal items like cell phones and wallets.
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Background Story
Anthony Calvert, a dedicated deputy sheriff for San Diego County, and his wife Tina embarked on their entrepreneurial journey from their home base in San Diego, California. Anthony’s career as a 20-year veteran on the Sheriff’s S.W.A.T. team came to a halt when he suffered an injury, leaving him with ample time for recovery at home. It was during this period of recuperation that the seeds of the Podillow were sown. Frustrated by the discomfort of traditional relaxation methods, particularly the challenge of lying face-down for tanning or massages, Anthony sought to find a solution.
Drawing from his own experience and recognizing a gap in the market, he envisioned a specialized pillow that would enable comfortable face-down relaxation. With Tina’s unwavering support, they decided to turn this concept into a reality. Their journey into entrepreneurship began in their garage, where they dedicated themselves to developing the Podillow. Despite initial skepticism from colleagues, Anthony and Tina pressed forward with determination.
They poured their passion and energy into refining the product, ensuring it met their vision of providing comfort and convenience for users seeking face-down relaxation. Their background in law enforcement instilled in them a strong work ethic and commitment to excellence, qualities that they brought to their new venture. The Podillow wasn’t just a product; it was a testament to their resilience and ingenuity in the face of adversity. With a clear vision and a drive to succeed, Anthony and Tina embarked on a journey to bring the Podillow to the masses, confident in its potential to revolutionize the way people relax and unwind.
The Product
The Podillow is a revolutionary facedown tanning and massage pillow designed to enhance relaxation and comfort during tanning or massage sessions. Its innovative design features a hole at the top, allowing users to comfortably lie face down without strain on their neck or discomfort. This ergonomic design alleviates the need to prop up the head with towels or fists, providing a more enjoyable and relaxing experience.
In addition to its ergonomic design, the Podillow boasts internal storage pockets, enabling users to conveniently store personal items such as cell phones, keys, or wallets within reach while they relax. This added feature enhances convenience and ensures that users can fully unwind without interruptions.
The Podillow is suitable for a variety of settings, including home use, tanning salons, spas, and massage therapy studios. It is available for purchase online through the company’s website and select retailers. Priced at $29.95 retail, the Podillow offers an affordable yet effective solution for individuals seeking a comfortable and relaxing way to enjoy tanning or massage sessions.
How It Went
The company’s position before Shark Tank
Podillow has made significant strides since its inception, establishing itself as a prominent player in the relaxation and wellness industry. With sales approaching 6,000 units within just two years of operation, the company has demonstrated strong demand for its innovative product. Despite facing challenges in meeting this demand due to limited production capacity and resources, Podillow has successfully penetrated the market through strategic partnerships with major retailers and wholesalers. The company’s primary partners include renowned mail-order catalogs such as Lillian Vernon and Solutions, both of which have sold out of Podillow units and placed additional purchase orders that the company struggled to fulfill.
Podillow’s customers range from individual consumers purchasing for personal use to tanning salons, spas, and massage therapy studios incorporating the product into their service offerings. This broad customer base highlights the versatility and applicability of the Podillow across various settings within the wellness industry. Currently, Podillow relies on sales revenue as its primary source of funding, with no external investment or venture capital. This self-sustaining model has enabled the company to maintain control over its operations and product development process. However, it also poses challenges in scaling the business to meet growing demand and expanding market reach.
While the company has demonstrated impressive sales figures, its profitability may be constrained by production costs and operational expenses. Additionally, the valuation of $750,000 based on current earnings of $21,000 raises questions about the company’s scalability and potential for long-term profitability. Podillow operates as a privately held corporation, with Anthony and Tina Calvert serving as the founders and key decision-makers. The company’s structure reflects its grassroots origins, with operations managed from the founders’ garage and no dedicated marketing budget. Despite these challenges, Podillow remains committed to delivering innovative relaxation solutions to its customers and exploring opportunities for growth and expansion in the competitive wellness industry.
The Negotiations:
During the negotiations on Shark Tank, Anthony and Tina Calvert sought a $250,000 investment in exchange for a 33% equity stake in Podillow. While the Sharks expressed interest in the product’s potential, they raised concerns about the company’s valuation and financial performance. Kevin O’Leary questioned the valuation, pointing out the discrepancy between the company’s earnings and the asking price. Daymond John showed initial interest in the product but ultimately withdrew his offer due to valuation concerns.
Other Sharks, including Lori Greiner and Mark Cuban, also declined to invest, citing similar concerns about the company’s valuation and profitability. Despite the interest in the product’s concept, the negotiations stalled as the Sharks struggled to reconcile the valuation with the company’s financial performance. Anthony and Tina defended their valuation, citing the product’s popularity and potential for growth with additional resources and expertise. However, they were unable to secure a deal that met their funding needs while addressing the Sharks’ concerns about the company’s valuation.
Ultimately, the negotiations concluded without a deal, leaving Anthony and Tina to explore alternative funding avenues to support Podillow’s growth. While disappointed by the outcome, they remained determined to overcome the challenges facing their business and pursue their vision of bringing innovative relaxation solutions to the market.
