Springer Dog Water Bottle
DEAL
EPISODE SUMMARY
🕓 Air Date: May 13, 2022
Asking For:
$400,000 for 6%
Investor:
Lori Greiner
Deal:
$400,000 for 10%
PRODUCT SUMMARY
The Springer travel bottle is a leak-tight, portable water bottle designed for dogs, allowing for easy access to water while on the go.
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Background Story
Springer, a company headquartered in two diverse locations, Austin, Texas, where Shannon resides, and Oxnard, California, Griffin’s home base, was born out of the shared passion for innovation and their deep love for dogs. The founders, siblings Shannon and Griffin, inherited an innate talent for creative problem-solving from their father, an inventor. His influence and their upbringing in an environment that nurtured ingenuity became the bedrock of their entrepreneurial journey.
In their pursuit of developing products that could enhance the lives of dogs and their owners, Shannon and Griffin astutely observed the difficulties many pet owners faced when providing water for their furry companions during outdoor escapades. The prevalent methods of makeshift hand-bowl techniques or toting separate water bowls not only proved cumbersome but were often associated with mess and inconvenience. It was this recognition of an unaddressed need that sparked their innovative spirit.
This realization became the driving force behind the creation of the Springer travel bottle, a testament to their commitment to providing a practical, hygienic, and efficient solution for pet owners and their four-legged friends. Their professional background as models in the family business, coupled with an entrepreneurial spirit, laid the foundation for Springer to emerge as a pet brand dedicated to crafting innovative products that alleviate the common challenges faced by pet owners. Quality, functionality, and an unwavering dedication to addressing these challenges have remained at the heart of their business ethos and product development.
The Product
The Springer travel bottle is a meticulously designed, leak-tight water bottle intended for dogs, addressing the need for a convenient hydration solution during outdoor activities. The product’s functionality revolves around its simple yet effective mechanism: by squeezing the bottle, the attached bowl fills up with water, providing easy access for dogs to drink.
Once the dog is done drinking, releasing the bottle causes the water to flow back into the bottle, minimizing spills and wastage. Its leak-tight shut-off ensures that the bottle remains secure even when tipped or placed sideways. Ideal for dog owners on the go, the Springer travel bottle offers several benefits, including a hygienic way to provide water without the need for separate bowls, reduced water wastage, and a mess-free experience.
The product comes in various sizes to accommodate different breeds and needs, with the mini priced at $22, the medium size at $25, and the growler at $28. Customers can purchase the Springer travel bottle directly from the company’s website or through various pet supply retailers. Its durable build, ease of use, and innovative design make it a valuable accessory for pet owners seeking hassle-free hydration solutions for their furry companions.
How It Went
The company’s position before Shark Tank
Springer has exhibited steady growth since its inception, with an initial revenue of $711,000 during its first year of sales in 2016. The company’s revenue further increased to $1.7 million in 2020, showcasing a positive trajectory in terms of market acceptance and demand. While the company maintains a strong position in the pet industry, concerns were raised during the Shark Tank pitch regarding the company’s profit margins. Despite impressive retail margins of 88%, the net profit for the company was reported to be $100,000, leading to questions about the allocation of expenses and overall financial health.
The company operates with a dedicated team, including the founders, their parents, and two in-house employees, indicating a close-knit structure and a familial approach to business management. Springer has established strategic partnerships with suppliers and manufacturers to ensure the quality and efficiency of their product production process. Additionally, the company has collaborated with various pet supply retailers to expand its distribution network, enabling wider accessibility for customers interested in purchasing the Springer travel bottle.
In terms of funding, the company initially sought $400,000 for 6% equity during their appearance on Shark Tank, reflecting a clear intention to secure additional capital for business expansion and development. The founders emphasized their dedication to investing in intellectual property, branding, and new product innovations, indicating a proactive approach to sustaining and enhancing the company’s competitive edge in the market. However, concerns were raised during the negotiations regarding the company’s expenses and the need for a more efficient utilization of available resources to optimize profitability and ensure long-term sustainability.
The Negotiations:
During the negotiations on Shark Tank, the founders of Springer, Shannon and Griffin, initially sought $400,000 for 6% equity in their company. However, concerns were raised by the Sharks regarding the company’s valuation and profitability, leading some of them to opt out of the deal. Mr. Wonderful expressed skepticism about the company’s financial performance, highlighting the need for a more robust profit margin.
Lori Greiner made an initial offer of $400,000 for 10% equity, with a preference for preferred stock, ensuring early distributions when profits are paid out. She displayed a keen interest in the company’s sales and cash flow, emphasizing the importance of a sustainable business model. Mark Cuban and John were unimpressed by the equity offering, expressing their reluctance to invest given the perceived discrepancies in the company’s financials and the founders’ proposed terms.
In contrast, Kevin O’Leary proposed a royalty deal, offering $400,000 for 3% equity, with a request for $3 per unit until he recoups his initial investment, and half of that, $1.50, in perpetuity afterward. Lori’s offer of $400,000 for 10% equity was ultimately accepted by the founders, Shannon and Griffin, as they believed that her expertise and support would be instrumental in accelerating the company’s growth and market expansion. The negotiation process highlighted the importance of aligning the interests of the investors with the long-term goals and sustainability of the company, ultimately resulting in a successful deal for all parties involved.
