SoundBender Audio Amplifier
DEAL
EPISODE SUMMARY
🕓 Air Date: February 1, 2013
Asking For:
$54,000 for 26%
Investor:
Daymond John
Deal:
$54,000 for 40%
PRODUCT SUMMARY
SoundBender is a magnetic, power-free amplifier for iPads designed to enhance sound quality and directionality.
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Background Story
SoundBender is the brainchild of Rabbi Moshe Weiss, who resides in St. Paul, Minnesota. Besides being a devoted father and husband, Rabbi Weiss is also a rabbi who brings his faith and problem-solving skills into his entrepreneurial ventures. He recognized a common dilemma faced by iPad users worldwide and sought to find a solution. The idea for SoundBender emerged when Rabbi Weiss, a teacher at a Jewish high school, received an iPad as a gift during tough times brought on by the recession.
Using his innovative mindset, he devised prototypes to enhance the iPad’s sound quality, eventually leading to the creation of SoundBender. Manufactured in the USA, SoundBender reflects Rabbi Weiss’s commitment to quality and his desire to provide practical solutions to everyday challenges.
The Product
SoundBender is a simple yet effective accessory that clips magnetically onto iPads, redirecting the sound toward the user. Its innovative design eliminates the need for batteries or power sources, making it convenient to use anywhere. With a retail price of $12.99, SoundBender offers significant profit margins, appealing to both consumers and retailers.
Available in various colors, it has gained traction both online and through wholesale channels. Rabbi Weiss’s dedication to continuous improvement is evident as he plans to use the investment to further enhance the product’s design and functionality. With high interest from major retailers like Walgreens, SoundBender has the potential for widespread adoption and success.
How It Went
The company’s position before Shark Tank
SoundBender has sold 7,000 units within six months of its launch, primarily through online platforms and wholesale distribution channels. With a manufacturing cost of $1 per unit, including magnets, and a retail price of $12.99, the product offers substantial profit margins. Rabbi Weiss’s commitment to quality is reflected in the decision to manufacture SoundBender in the USA.
The company’s partnership with major retailers like Walgreens highlights its growth potential in the accessories market. The investment from Daymond John provides the necessary capital to scale operations and secure additional retail partnerships, driving further growth and profitability.
The Negotiations:
Rabbi Weiss initially sought $54,000 for 26% equity but ultimately struck a deal with Daymond John for the same amount of investment at a higher equity stake of 40%. Despite alternative offers proposing licensing arrangements, Rabbi Weiss remained committed to maintaining control over the product’s production and distribution.
Daymond John’s offer aligned with Rabbi Weiss’s vision for SoundBender, providing the necessary capital and expertise to accelerate growth and secure retail partnerships. The negotiation process highlighted Rabbi Weiss’s determination and entrepreneurial spirit, ultimately resulting in a mutually beneficial agreement that positions SoundBender for success in the competitive accessories market.
