Pooch Selfie Dog Products
DEAL
EPISODE SUMMARY
🕓 Air Date: March 17, 2019
Asking For:
$100,000 for 20%
Investor:
Daymond John
Deal:
$100,000 for 33,30%
PRODUCT SUMMARY
Pooch Selfie is a simple device using a squeaky tennis ball to capture the attention of dogs, enabling pet owners to take perfect photos and selfies with their furry friends.
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Background Story
Jason Hernandez, the founder of Pooch Selfie, hails from San Diego, California, and has a deep passion for dogs. The inspiration for Pooch Selfie struck him as a result of his own struggles trying to capture the perfect pictures of his beloved fur companion, Logan. Recognizing the common challenge among dog owners, Jason embarked on a mission to find a solution. With a background in mechanical engineering, Jason brought a unique set of skills to the table. His engineering expertise allowed him to not only conceptualize the product but also fine-tune it for efficient manufacturability.
The frustration of taking numerous shots to get a single good picture of Logan led Jason to devise a creative solution that could hold a dog’s attention long enough for a great photo. The journey of creating Pooch Selfie involved Jason’s hands-on approach. From the initial design stages to the actual manufacturing process, he took a proactive role. Venturing to China himself, Jason collaborated with molders, ensuring the product met his standards and vision.
Despite facing challenges, including the product being delisted from a major retailer due to customer education issues, Jason’s determination to revolutionize the way people capture moments with their dogs fueled his entrepreneurial spirit. The U.S. utility patent he secured adds a layer of protection to his invention, emphasizing his commitment to the longevity and success of Pooch Selfie. In essence, Pooch Selfie is not just a product for Jason; it’s a culmination of his love for dogs, engineering skills, and entrepreneurial dedication.
The Product
Pooch Selfie is a revolutionary device designed to enhance the experience of capturing memorable moments with canine companions. The product consists of a universal smartphone clip and a squeaky tennis ball attachment. The innovative design leverages a dog’s natural attraction to tennis balls, making it a versatile tool for pet photography.
To use Pooch Selfie, the smartphone clip is attached to the top of the device, and the squeaky tennis ball is placed in the clasping mechanism. This simple setup instantly transforms pet owners into master dog photographers. The squeaky tennis ball serves as a focal point, capturing the dog’s attention and allowing for perfect selfies and portraits.
Pooch Selfie’s benefits extend beyond just selfies. Users can also capture delightful portraits of their dogs, showcasing their personalities. Priced at $9.99 per unit, the product offers an affordable solution for pet owners seeking high-quality photos of their furry friends. The $1.30 production cost ensures a healthy profit margin for the company.
Pooch Selfie is primarily available for purchase online, with 74% of sales conducted through direct online retail channels. The company aims to redesign the product for compatibility with a broader range of smartphones and improve packaging for enhanced shelf appeal. Additionally, there are plans to introduce a variant that holds treats instead of tennis balls, expanding the product line and catering to different preferences of pet owners.
How It Went
The company’s position before Shark Tank
Pooch Selfie has demonstrated a commendable performance in the market, achieving $380,000 in sales with 25,000 units sold to date. The company is strategically positioned in the pet photography niche, with a unique product catering to the challenges faced by dog owners in capturing perfect moments with their furry companions. Currently operating as a solo venture, Jason Hernandez, the founder, manages all aspects of the business. Despite being a one-person operation, Pooch Selfie has secured a U.S. utility patent, providing a competitive edge by safeguarding the uniqueness of the product. The company’s focus on online retail channels has proven successful, with 74% of sales conducted directly through their website.
Pooch Selfie’s notable achievement includes securing placement in Bed Bath & Beyond, a significant retail milestone. However, challenges arose when the product was placed among other dog toys, necessitating customer education for better understanding. The company faced a setback with the product being delisted due to this issue. In terms of financials, the company has achieved a profit margin, given the $1.30 production cost per unit and the $9.99 retail price. The current available capital and funding sources are not explicitly mentioned in the pitch. However, Jason Hernandez invested $18,000 of his own money into the business, indicating a bootstrap approach to funding.
The company’s structure is streamlined, with Jason overseeing every aspect of the business, from product design and manufacturing to sales and marketing. While Pooch Selfie has faced challenges, including potential knock-offs, Jason’s commitment to protecting his creation and making Pooch Selfie a leading brand in pet photography reflects a resilient and determined approach to business. As the company moves forward, the proposed redesign for broader smartphone compatibility and the introduction of a variant holding treats demonstrate a strategic vision for growth and product expansion.
The Negotiations:
During the negotiations on Shark Tank, Jason Hernandez sought $100,000 in exchange for a 20% equity stake in Pooch Selfie. The sharks were immediately intrigued by the product, which addressed a universal challenge for dog owners. Daymond John expressed his interest and made a compelling offer of $100,000 for a slightly higher equity share at 33 1/3%. Jason took a moment to consider Daymond’s offer but decided to explore other potential deals. Mark Cuban, Kevin O’Leary, and Lori Greiner opted out, citing various reasons, leaving Daymond as the sole shark showing interest.
Daymond, recognizing the value and potential of Pooch Selfie, made a decisive move, emphasizing the need for Jason to make a quick decision. Sensing the sincerity and commitment, Jason accepted Daymond’s offer. The deal was sealed, marking a successful negotiation for Pooch Selfie. The emotional resonance of Jason’s backstory, where he shared his personal connection to the product and the challenges faced in protecting his invention, played a pivotal role in swaying Daymond to invest.
Despite facing rejection from other sharks, Jason’s passion and Daymond’s strategic vision aligned, leading to a mutually beneficial partnership. In the aftermath, Jason expressed his gratitude for the deal, highlighting the significance of securing a partnership on a platform he had admired for years. The negotiation showcased the importance of a founder’s dedication and a shark’s ability to recognize the potential in both the product and the entrepreneur. The outcome solidified Pooch Selfie’s future with Daymond John as a strategic partner.
