PurseCase – Phone Cases
DEAL
EPISODE SUMMARY
đŸ•“ Air Date: November 22, 2013
Asking For:
$55,000 for 12%
Investor:
Lori Greiner
Deal:
$55,000 for 15%
PRODUCT SUMMARY
Pursecase is a smartphone clutch designed to keep essential items like cash, cards, and ID accessible and secure, featuring a stylish chain handle and a compact mirror for fashion emergencies.
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Background Story
Kelley Coughlan and Jenn Deese, the creators of Pursecase, embarked on their entrepreneurial journey with a mission to blend style and functionality seamlessly. The duo’s background experiences as busy publicists provided them with valuable insights into the challenges of carrying smartphones and essentials while on the go. Their concept for Pursecase originated from personal frustration. As active professionals, they found conventional methods of carrying smartphones in oversized handbags or back pockets to be inconvenient and potentially risky.
The constant struggle to locate their phones amidst clutter or the fear of losing them prompted them to seek a better solution. Drawing from their backgrounds in public relations and marketing, Coughlan and Deese conceptualized Pursecase to address this common dilemma. Their combined expertise in understanding consumer needs and trends enabled them to envision a product that not only provided practical functionality but also incorporated elements of style and elegance.
Their desire to create a product that resonated with fashion-conscious individuals led them to develop Pursecase, the first-ever smartphone clutch designed to cater specifically to the needs of modern consumers. With a vision to revolutionize the way people carry their phones and essentials, Coughlan and Deese embarked on a journey to bring Pursecase to life, driven by their passion for innovation and their commitment to providing a solution that seamlessly integrates technology into everyday life.
The Product
Pursecase is a revolutionary smartphone accessory designed to offer both practical functionality and elegant style. The product features a sleek clutch-like design with a pocket specifically tailored to fit smartphones such as the iPhone 4 and iPhone 5 securely. This pocket ensures easy access to the phone while also providing space for essential items like cash, cards, and ID.
Key features of Pursecase include a stylish chain handle that doubles as a bracelet, allowing users to carry it effortlessly while keeping their hands free. Additionally, each Pursecase comes equipped with a compact mirror, making it convenient for quick touch-ups or fashion emergencies on the go.
Pursecase is available in a variety of colors, allowing users to choose a design that complements their personal style and outfit preferences. The product can be purchased online through the company’s website or through select retailers. The wholesale price for Pursecase is $15, with a retail price of $38, offering consumers a high-quality and stylish solution at an affordable price point.
How It Went
The company’s position before Shark Tank
Pursecase has demonstrated strong performance and promising growth prospects since its inception. The company’s health and position in the market are robust, evidenced by their successful preorders totaling $30,000 within the first three months of operation. With a projected sales forecast of $240,000 for their first calendar year in business, Pursecase has positioned itself as a competitive player in the smartphone accessory market.
One of Pursecase’s key partnerships is with DALL International, a logistics company that has extended a million-dollar credit line to the company in exchange for a 15% equity stake. This strategic partnership provides Pursecase with the necessary funding to fuel its expansion efforts, including the development of molds to accommodate additional smartphone models such as the Samsung Galaxy S4. In terms of distribution, Pursecase sells its products both wholesale and retail. Their wholesale price is $15 per unit, while the retail price stands at $38.
Despite some skepticism about the retail price point, the founders have reported no resistance from customers, indicating strong market demand and acceptance of the product at its current pricing. Pursecase’s target customers are fashion-conscious individuals who prioritize both style and functionality in their accessories. The product’s innovative design, which seamlessly integrates smartphone protection with fashion-forward elements, appeals to a wide demographic ranging from young professionals to trendsetting consumers.
The Negotiations:
During the negotiations on Shark Tank, Kelley Coughlan and Jenn Deese, the founders of Pursecase, received offers from multiple sharks. Kevin O’Leary proposed $55,000 with a unique structure: $1 per unit until he recoups his investment, followed by 75 cents per unit in perpetuity. While acknowledging the rare opportunity of a million-dollar credit line from DALL International, O’Leary’s offer reflected his interest in securing a favorable return on investment.
Lori Greiner, known as the “Queen of QVC,” offered the exact amount the founders requested—$55,000 for 15% equity. Her enthusiasm for the product, combined with her expertise in retail and QVC, made her offer particularly appealing to Coughlan and Deese. Mark Cuban also made an offer, but they were already leaning towards Greiner’s proposition. Ultimately, Coughlan and Deese accepted Greiner’s offer, as it aligned with their initial ask and their preference for partnering with her.
They appreciated Greiner’s expertise and felt confident in her ability to propel Pursecase to success, especially considering her extensive experience in retail and television sales. Although O’Leary’s offer presented an intriguing alternative, the founders’ decision reflected their strategic vision and desire to work with a partner who could provide not only financial backing but also valuable guidance and industry connections. Greiner’s offer marked a pivotal moment for Pursecase, securing a partnership that would propel the company towards achieving its ambitious growth goals.
