Rent A Grandma
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 9, 2012
Asking For:
$150,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Rent-A-Grandma offers experienced and trustworthy caregivers who provide childcare and household assistance, aiming to fill the gap left by unreliable babysitters.
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Background Story
Todd Colby Pliss, the founder of Rent-A-Grandma, identified a common problem faced by many families: the lack of reliable and experienced caregivers for their children and households. Recognizing the value of seasoned individuals like grandmothers, who are known for their care and attention to detail, Todd founded Rent-A-Grandma. Based in Los Angeles, the company began operating late last year and quickly gained traction, receiving an overwhelming number of requests for services nationwide.
Todd’s inspiration came from hearing numerous horror stories about babysitters more focused on their phones than the children they were supposed to care for. He believed that leveraging the experience and trustworthiness of grandmothers could provide a solution to this problem.
The Product
Rent-A-Grandma connects families with experienced caregivers who offer childcare, household assistance, and even baking services. Customers sign a placement agreement with the company and pay a fee upfront, typically between 12% and 15% of what the grandmother earns.
Grandmas are paid between $14 to $20 per hour, depending on the city, with rates higher than traditional babysitters due to their decades of experience and exceptional caregiving abilities.
The company’s revenue model relies on acquiring customers and charging a percentage fee for placements, with a minimum commitment from clients for temporary assignments.
How It Went
The company’s position before Shark Tank
Rent-A-Grandma has seen sales of approximately $25,000 so far, with 50 grandmas currently serving in Los Angeles. The company has trademarked its brand and received substantial interest in franchise opportunities, with over 400 requests for franchise information in the past two months. While the concept has gained popularity, some sharks expressed concerns about the scalability and profitability of the business model, particularly given the thin margins and early stage of the company.
The Negotiations:
Despite Todd’s enthusiasm and the unique concept of Rent-A-Grandma, none of the sharks were convinced to invest. Concerns were raised about the thin margins, low sales figures, and scalability of the business. While some sharks appreciated the idea and the brand, they ultimately passed on the opportunity due to doubts about its long-term viability and profitability. Todd’s pitch highlighted the need for reliable childcare solutions and the value of experienced caregivers, but the sharks were hesitant to invest in a business at such an early stage with uncertain prospects for growth.
