SubSafe Sandwich Container
DEAL
EPISODE SUMMARY
🕓 Air Date: January 27, 2019
Asking For:
$50,000 for 13%
Investor:
Mark Cuban, Charles Barkley (50/50)
Deal:
$100,000 for 25%
PRODUCT SUMMARY
SubSafe is a waterproof, crush-proof, and floating container designed to protect and store subs and other valuables during various activities, such as boating, camping, and tailgating.
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Background Story
Adam and Desiree Haller, the innovative minds behind SubSafe, share a deep-rooted passion for boating and offshore fishing. Their love for aquatic adventures became the inspiration for a unique solution to a common problem faced during their excursions. Though the exact location of their business origin is not specified, their nautical background plays a pivotal role in the genesis of SubSafe. Adam, having grown up around water, boating, and fishing, experienced the frustration of his subs becoming wet and squished after a day on the water. This inconvenience led to a determination to find a product that could keep subs dry, but when their search yielded no satisfactory results in the market, Adam and Desiree took matters into their own hands.
Thus, SubSafe was conceived out of a genuine need for a reliable container that could protect subs and other valuables during water-based and outdoor activities. The couple’s combined background in boating and Desiree’s experience in dealing with the challenges of preserving sandwiches in such conditions contributed to the product’s inception. Their dedication to solving a personal problem expanded into a broader mission to provide a versatile, durable, and effective solution for others who shared their predicament.
This commitment is evident in their decision to invest $37,000 of their own money into the venture, even selling their boat to fund the business. The journey of SubSafe is a testament to the founders’ resilience and creative problem-solving. Despite limited funds for marketing, their product has gained recognition and attracted interest from a national sub-chain restaurant, showcasing the potential impact of their innovative solution on a larger scale.
The Product
SubSafe, the brainchild of Adam and Desiree Haller, is an ingenious solution designed to protect subs and valuables during various outdoor activities. This BPA-free container is made from high-quality plastic, ensuring it is waterproof, crush-proof, and even capable of floating. Its versatility extends beyond safeguarding subs; users can store items such as phones, sunglasses, keys, and wallets securely.
The SubSafe comprises three pieces that cater to both 6-inch and 12-inch subs. Using the container is simple — place the sub inside, lock it tightly, and toss it into a cooler with confidence, knowing your sub will remain dry and intact. The flattened ends of the container are strategically designed to double as cups and bowls, adding an extra layer of functionality.
Priced at $17.95, SubSafe offers an affordable and effective solution for individuals engaged in boating, camping, tailgating, hunting, racing, and beach days. Its durability and multi-functional design make it a must-have for those who want to keep their sandwiches and valuables dry during various outdoor adventures.
For those interested in purchasing SubSafe, it is available on their website. The product’s reasonable cost, combined with its unique features and applications, positions it as a practical and attractive solution for outdoor enthusiasts seeking reliable protection for their subs and belongings.
How It Went
The company’s position before Shark Tank
Since its launch on February 26th, SubSafe has demonstrated promising early success, amassing over $40,000 in sales. The founders, Adam and Desiree Haller, shared during their pitch that the company’s initial performance has been achieved with limited marketing expenditure, a testament to the product’s appeal and utility. As for partners and wholesalers, the pitch highlighted a significant development with a national sub-chain restaurant expressing interest in featuring SubSafe in a campaign across 1,500 locations for the summer of 2019.
This potential collaboration suggests a strategic partnership that could significantly boost SubSafe’s visibility and market reach. In terms of funding, the founders have invested $37,000 of their own money into the business. This personal investment, coupled with the $50,000 secured from the Sharks (Mark Cuban and Lori Greiner), provides SubSafe with essential capital for growth, marketing, and potential expansion into new markets.
The founders’ decision to sell their boat to fund the business reflects their commitment and belief in the product’s potential. The company’s current structure wasn’t explicitly detailed in the pitch. However, the deal with Mark Cuban and Lori Greiner for $100,000 in exchange for 25% equity indicates a shift in ownership. This injection of capital from experienced entrepreneurs not only provides the necessary funds for marketing and business development but also brings valuable expertise and support to SubSafe, positioning the company for future success.
The Negotiations:
The negotiations for SubSafe on Shark Tank were dynamic and culminated in a successful deal for the founders, Adam and Desiree Haller. The pitch began with the couple seeking $50,000 for a 13% equity stake in their company. Mark Cuban and Lori Greiner were quick to express interest, jointly offering $100,000 for a 25% stake (12.5% each). However, Kevin O’Leary did not make an offer, expressing reservations about the limited scope of a single container. Charles Barkley recognized the broader market potential beyond subs and, along with Mark Cuban, proposed a $100,000 deal for 25% equity, with both sharks taking 12.5% each.
Ultimately, it was Mark Cuban and Lori Greiner’s joint offer that won the day. They pledged $100,000 for 25% equity, providing the necessary capital for marketing and business growth. The founders, appreciative of the offer and recognizing the strategic value of having both Mark and Lori on board, accepted the deal. The negotiations showcased the sharks’ belief in SubSafe’s potential, with Mark and Lori not only offering the requested funds but also bringing their expertise to help the company thrive in the market.
The negotiation process reflected the sharks’ recognition of SubSafe’s unique product and the founders’ commitment. While the equity stake was higher than initially proposed, the deal promised substantial support for marketing efforts, increasing the likelihood of SubSafe’s success in the competitive market of outdoor and food storage products.
