SiliDog Silent Pet Tags
DEAL
EPISODE SUMMARY
🕓 Air Date: October 21, 2016
Asking For:
$100,000 for 15%
Investor:
Lori Greiner
Deal:
$100,000 for 30% + $0.25 royalty per unit
PRODUCT SUMMARY
SiliDog has created innovative pet tags made from 100% silicone, eliminating the annoying jingling sound of traditional tags. These tags are silent, never fade, and glow in the dark.
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Background Story
Mikey Lickstein, along with his co-founder Bentley, introduced SiliDog, a game-changing pet tag company, during their compelling pitch on Shark Tank. Hailing from the vibrant city of Miami, Florida, Mikey embarked on the journey of entrepreneurship driven by his passion for pets and a keen awareness of the drawbacks in conventional pet tags. The inception of SiliDog traces back to Mikey’s master’s degree pursuit and a heartwarming connection with Bentley, a dog rescued from the perilous circumstances of being thrown from a car on the highway.
Bentley’s incessant scratching throughout the night, exacerbated by the jingling noise and fading information on traditional pet tags, became the catalyst for Mikey’s innovative solution. Fueled by his frustration with the noisy and easily degradable metal and plastic tags, Mikey set out to create the next standard in pet identification. The result was SiliDog, a revolutionary pet tag made entirely from 100% silicone. Mikey’s background in accounting and business, honed at the University of Florida, equipped him with the skills needed to navigate the complexities of entrepreneurship.
SiliDog’s mission extends beyond crafting silent, durable, and customizable pet tags; it embodies a commitment to pet owners everywhere, resonating with the idea that every dog deserves to be a SiliDog. Mikey’s journey reflects the fusion of personal experience, entrepreneurial spirit, and a genuine desire to address a common pet owner pain point. The company’s base in Miami, a hub of creativity and innovation, aligns seamlessly with the dynamic and forward-thinking ethos driving SiliDog’s success.
The Product
SiliDog has redefined pet identification with its innovative and user-friendly pet tags. Crafted from 100% silicone, these tags address the common nuisances associated with traditional metal and plastic tags. The tags are not only silent, eliminating the bothersome jingling sounds, but they also boast exceptional durability, never fading even after prolonged use. Additionally, they have the added benefit of glowing in the dark, enhancing visibility during nighttime activities.
Customers can easily customize their SiliDog tags through the company’s website. The online platform allows users to choose tag designs, input personalized information, and select preferences for both the front and back of the tag. The company ensures a quick turnaround, manufacturing and shipping the personalized tags within three to five days. Priced at $19.99 per tag, SiliDog offers a competitively priced solution with the added bonus of free shipping.
SiliDog has strategically expanded its distribution, securing placement in over 90 retail stores. The company has implemented a unique wholesale strategy, selling tags to retailers at $8.99 each. This approach ensures that SiliDog’s revolutionary pet tags are readily available to a wide customer base, combining convenience and affordability for pet owners seeking a superior identification solution for their furry companions.
How It Went
The company’s position before Shark Tank
SiliDog has experienced robust growth and a solid market position, demonstrating the company’s resilience and appeal in the pet industry. The company’s health is reflected in its impressive financial performance, having achieved $142,000 in sales within a span of 14.5 months. This notable revenue figure showcases SiliDog’s successful market penetration and consumer adoption. In terms of distribution, SiliDog strategically partnered with over 90 retail stores, effectively expanding its reach to a diverse customer base.
The adoption of a wholesale strategy further underscores the company’s commitment to making its innovative pet tags accessible. Notably, the tags are sold to retailers at a competitive price of $8.99 each, fostering a mutually beneficial relationship with partners. SiliDog’s customers primarily include pet owners seeking a superior alternative to traditional, noisy, and fading pet tags. The company’s success in securing placement in major pet-product trade shows, coupled with its expansive retail presence, attests to the broad appeal of its products.
The company’s funding primarily comes from a mix of venture capital and strategic partnerships. This diverse funding approach has allowed SiliDog to maintain a sound financial position with consistent profits. The company’s available capital is directed toward scaling operations, particularly in response to unexpectedly high demand, as evidenced by the rapid sell-out of inventory within three months. SiliDog’s current structure is streamlined, with a focus on efficiency and operational excellence. Mikey Lickstein, the 24-year-old entrepreneur and founder, manages the company from his garage, showcasing the resourcefulness and agility that has contributed to SiliDog’s success.
The Negotiations:
The negotiations for SiliDog on Shark Tank unfolded with a compelling pitch from Mikey Lickstein, showcasing his innovative pet tags. Seeking $100,000 for a 15% equity stake, Mikey garnered significant interest from the Sharks. Barbara Corcoran emerged as a key player, offering $100,000 for a 30% equity stake with a $2 per tag royalty. This initial offer presented a control-focused proposition. However, Lori Greiner quickly joined the negotiation, matching Barbara’s terms but with a reduced royalty of $1 per tag. Mark Cuban, adding his twist, offered the same terms as Lori, creating a competitive environment.
As the negotiation progressed, Kevin O’Leary made an enticing offer of $100,000 for 30% equity but with a reduced royalty of 25 cents per tag. The negotiation took an unexpected turn when Barbara, initially offering a control-centric deal, pivoted and made a more appealing offer of $100,000 for 30%, maintaining the $2 per tag royalty. Ultimately, Mikey faced the challenging decision of choosing between the control-focused deal presented by Barbara, the matched offers from Lori and Mark, and the cost-effective deal proposed by Kevin.
After careful consideration, Mikey accepted Lori Grainer offer of $100,000 for 30%, with the $0,25 per tag royalty.The negotiation showcased Mikey’s ability to navigate multiple offers and make strategic decisions for the future of SiliDog. Barbara’s experience and the enticing royalty deal played a pivotal role in securing the partnership, offering the company a unique opportunity to leverage her expertise for growth and success in the pet industry.
