Pretty Padded Room
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 15, 2013
Asking For:
$100,000 for 30%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Pretty Padded Room offers online therapy for women, connecting users with licensed therapists through video chat or a digital diary at an affordable price.
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Background Story
Bea Arthur, the founder and CEO of Pretty Padded Room, sought to revolutionize the accessibility and perception of therapy. Feeling that traditional therapy lacked approachability and affordability, Bea combined the credentials of experienced therapists with the comfort of confiding in a trusted friend. Her background as a domestic violence counselor fueled her passion for providing accessible mental health support. Over two and a half years of hard work, she developed Pretty Padded Room, aiming to break barriers in the field of psychotherapy.
The Product
Pretty Padded Room offers users access to licensed therapists through two primary channels: video chat sessions and a digital diary. Users can opt for a trial session at $20, allowing them to experience either a 30-minute video chat session or utilize the digital diary for therapeutic journaling.
The pricing structure includes various membership tiers: $100 for five digital diary sessions, $150 for four 30-minute video sessions plus one digital diary, and $200 for four 45-minute video sessions and three digital diaries. These options cater to different user preferences and needs, making therapy more flexible and personalized.
The digital diary feature allows users to interact with their therapists through written communication, providing a convenient and accessible alternative to traditional face-to-face therapy. The platform aims to make therapy comfortable and approachable, particularly for women, though it does have a small male membership base.
Pretty Padded Room’s innovative approach to online therapy has garnered attention, with users appreciating the convenience and affordability of the service. Despite initial challenges in customer acquisition and understanding the business metrics, Bea remains committed to her vision of making therapy accessible to all.
How It Went
The company’s position before Shark Tank
In its initial stages, Pretty Padded Room struggled with low sales figures, generating around $7,500 in its first year of operation. However, Bea’s dedication and belief in the concept led to steady growth, with the company projecting $21,000 in sales for the current fiscal year. The company primarily relies on word-of-mouth marketing to attract users, with a conversion rate of approximately 40% from trial sessions to paid memberships. While the average customer retention period spans three to six months, there are concerns about the significant drop-off rate after the initial trial period.
Bea’s background as a non-tech entrepreneur has presented challenges in understanding the business metrics essential for sustainable growth. Despite the positive feedback from users and therapists, the company’s financial performance and customer acquisition strategy require refinement. Pretty Padded Room operates on a subscription-based model, offering different tiers of membership to accommodate varying user needs. While the platform has attracted a loyal customer base, questions linger regarding the long-term viability of the business model and its ability to scale effectively.
The Negotiations:
Despite the innovative concept and Bea’s passion for the project, the Sharks expressed reservations about the company’s financial performance and understanding of key business metrics. Barbara commended the concept but criticized Bea’s handling of the numbers, ultimately opting out of a deal. Mark echoed similar sentiments, emphasizing the importance of learning the language of business to succeed. Daymond offered a poignant analogy, likening Bea’s role in the business to the first seal sacrificing itself for the survival of the pack.
While acknowledging the value of the service, Daymond chose not to invest due to concerns about the company’s financial management. Ultimately, Bea’s inability to articulate a clear strategy for addressing the Sharks’ concerns led to a unanimous decision against investing. While the Sharks recognized the potential of Pretty Padded Room, they believed that Bea needed to prioritize gaining a deeper understanding of the business metrics to secure future investments.
