Safe Grabs – Microwave Mat
DEAL
EPISODE SUMMARY
đź•“ Air Date: October 21, 2016
Asking For:
$75,000 for 10%
Investor:
Lori Greiner
Deal:
$75,000 for 25%
PRODUCT SUMMARY
SafeGrabs is a versatile silicone mat designed to protect hands from hot surfaces, functioning as a microwave splatter guard, pot grabber, jar opener, plate, trivet, and place mat.
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Background Story
Cyndi, the tenacious founder of SafeGrabs, embarked on her entrepreneurial journey with a vision to revolutionize kitchen safety and convenience. Facing initial manufacturing challenges and financial setbacks, Cyndi navigated the difficult terrain of entrepreneurship. Living with her parents to avoid accumulating additional debt, she epitomized the perseverance needed to overcome early obstacles. Despite skepticism from those around her, Cyndi remained committed to her dream, fueled by a passion for creating innovative solutions to everyday problems.
The genesis of SafeGrabs emerged from a common kitchen dilemma—burning fingers while retrieving hot dishes from the microwave. Cyndi recognized this widespread issue and sought to address it with a simple yet effective solution. The result was SafeGrabs, a versatile silicone mat that not only shielded hands from microwave heat but also served a multitude of kitchen functions.
Through her journey, Cyndi showcased her dedication by working a full-time retail job while managing her business during lunch breaks. The challenges she faced, including an initial setback with a manufacturer and financial struggles, underscored the arduous path of entrepreneurship. Cyndi’s appearance on Shark Tank marked a pivotal moment in her entrepreneurial pursuit. With a compelling background story and a product designed to enhance kitchen safety and efficiency, Cyndi successfully secured a deal with Lori Greiner, propelling SafeGrabs toward broader market reach and success.
The Product
SafeGrabs, the innovative silicone kitchen accessory, stands out for its multifunctional design and user-friendly features. Primarily created to address the common issue of burning fingers when handling hot dishes from the microwave, SafeGrabs offers a versatile solution that goes beyond its primary purpose.
Made from high-quality silicone, SafeGrabs serves as a protective mat placed on the microwave turntable. When a hot dish is ready, users can effortlessly lift it from the bottom without the risk of burning their fingers. The product’s versatility extends to various kitchen applications—it functions as a trivet, place mat, jar opener, pot grabber, and even a practical plate for children.
SafeGrabs caters to users looking for a convenient, all-in-one kitchen accessory. Its benefits include enhanced safety, ease of use, and a reduction in the need for multiple specialized tools. The product comes in two sizes, with the 10-inch priced at $12.95 and the 12-inch at $14.95. Currently available on Amazon and in boutiques nationwide, purchasing SafeGrabs is convenient for consumers seeking a reliable solution to common kitchen challenges.
The silicone material ensures durability, and its multipurpose design adds value to the user’s kitchen routine. SafeGrabs not only simplifies daily tasks but also contributes to a cleaner and more organized cooking environment. With its affordable pricing and broad range of applications, SafeGrabs proves to be an indispensable addition to any kitchen, enhancing both safety and efficiency.
How It Went
The company’s position before Shark Tank
SafeGrabs demonstrates a resilient performance and a promising position in the market. The company’s health is marked by a notable lifetime sales figure of $310,000 over three years, with a slower start in the first year due to manufacturing issues. Year to date, the company achieved $165,000 in sales, showcasing steady growth. Partnerships and distribution channels have been established, with SafeGrabs currently available on Amazon and through boutiques across the nation.
The company’s success is partly attributed to effective demonstrations of the product’s versatility and functionality. In terms of financials, SafeGrabs reported breaking even, with $50,000 invested in inventory. The founder, Cyndi, mentioned overcoming initial financial struggles, highlighting her resourcefulness and dedication to keeping the business afloat. The funding source is not explicitly mentioned, but Cyndi’s journey suggests a combination of personal investment and, potentially, loans or external funding.
The customer base includes individuals seeking kitchen solutions that prioritize safety and convenience. SafeGrabs’ affordability, demonstrated functionality, and availability on popular online platforms contribute to its appeal among a diverse consumer demographic. Cyndi appears to be a solo entrepreneur, navigating the challenges of running the business independently. The successful negotiation with Lori Greiner on Shark Tank suggests an openness to external partnerships, which could positively impact the company’s growth trajectory.
The Negotiations:
The negotiations for SafeGrabs on Shark Tank showcased a dynamic exchange between Cyndi, the founder, and the Sharks, culminating in a strategic deal with Lori Greiner. Cyndi initially sought $75,000 for 12% of her company but sweetened the deal during the pitch by offering 12% for a limited time. However, early on, both Mark Cuban and Kevin O’Leary opted out, expressing concerns about the scalability and retail viability of the product.
Lori Greiner, recognizing the potential of SafeGrabs as both a TV and retail product, expressed interest and made an initial offer of $75,000 for a 30% stake. Cyndi, leveraging her experience in manufacturing and freight, countered with a lower equity stake of 17%, emphasizing her existing capabilities. The negotiation dance continued with Lori settling at a 25% equity share, considering the value she would bring to the business in terms of retail distribution, including major outlets like Bed Bath & Beyond and Target.
Cyndi, acknowledging the value of having a Shark partner, accepted Lori’s offer. The negotiation highlighted Cyndi’s adept negotiation skills and Lori’s recognition of the potential for SafeGrabs in both TV and retail markets. The strategic partnership formed between Cyndi and Lori not only secured the funding needed for SafeGrabs but also opened doors to significant retail opportunities, marking a successful outcome for both the entrepreneur and the investor. The negotiation process exemplified the balance between equity considerations and the strategic value each party brought to the table.
