The Pop Pacifiers
DEAL
EPISODE SUMMARY
🕓 Air Date: January 21, 2018
Asking For:
$250,000 for 5%
Investor:
Kevin O'Leary
Deal:
$250,000 for 10%
PRODUCT SUMMARY
Doddle & Co. presents the Pop pacifier, featuring a patented silicone protective bubble around the nipple to keep it clean when dropped, targeting babies aged zero to six months.
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Background Story
Nicki Radzely, the founder of Doddle & Co., introduces the Pop pacifier on Shark Tank. Tired of pacifiers falling on unsanitary surfaces while caring for her baby, Radzely developed the Pop pacifier with a unique design to address this common issue. The company launched four months prior to the pitch, aims to revolutionize the pacifier market by offering a solution to the hygiene problem parents frequently face.
Radzely, a mom of four children under the age of 7, brings firsthand experience to the challenges of parenting, especially with pacifiers constantly ending up on the floor. The Pop pacifier is initially designed for babies aged zero to six months, with plans to extend the product line to cater to older infants.
The Product
The Pop pacifier features a groundbreaking design, incorporating a patented silicone protective bubble around the nipple. This innovative bubble ensures that every time the pacifier is dropped, the nipple pops back into the protective bubble, preventing it from touching dirty surfaces.
The simple yet effective mechanism allows parents to easily pop the pacifier for their baby, and the baby takes over from there. The product is designed to mimic breastfeeding to a certain extent, providing a natural and gentle experience for newborns.
Radzely showcases the product’s functionality during the pitch, highlighting its ease of use and the added benefit of maintaining cleanliness. The pacifier is suitable for babies aged zero to six months, catering to the crucial early months of infancy.
Doddle & Co. has successfully sold over 25,000 units in the four months since its launch, with availability in prominent retailers such as Nordstrom and Buy Buy Baby.
How It Went
The company’s position before Shark Tank
Doddle & Co.’s journey started with a Kickstarter campaign in 2015, achieving full funding. In 2016, the company focused on prototyping, leading to the successful fulfillment of 25,000 units just four months prior to the Shark Tank pitch. The product has gained visibility and credibility by securing placements in major retailers like Nordstrom and Buy Buy Baby.
The financials of the company reflect both its progress and challenges. Radzely disclosed that the cost to manufacture each unit is approximately $1.20, with a wholesale price of $5 and a retail price of $9.99. The company reported sales of $117,000 for the year 2017, indicating a promising start for a product that has been on the market for a relatively short period.
Doddle & Co. has fully embraced its entrepreneurial journey, with Radzely mentioning a Friends and Family Round that raised $433,000 at a valuation of $2.5 million. This early investment played a crucial role in de-risking the venture and navigating challenges related to safety and engineering.
The company’s current position involves expansion plans, including launching in other countries and building a robust pipeline. Doddle & Co. is actively seeking opportunities for growth, with interest from retailers and potential partnerships. The decision to enter the highly competitive baby product market has been validated by the positive response and retail presence.
The Negotiations:
During the negotiation phase on Shark Tank, Nicki Radzely sought a $250,000 investment for 5% of Doddle & Co. The first offer came from Kevin O’Leary, who proposed a deal of $250,000 for 10%. Radzely expressed hesitation, prompting Sara Blakely to make a counteroffer of $250,000 for 15%. Lori Greiner joined in and also made an offer of $250,000 for 20% together with Sara.
As the negotiation progressed, Radzely asked for more favorable terms. She proposed a counteroffer to both Blakely, Greiner, and O’Leary, suggesting $500,000 for 20% equity and $250,000 for 7% equity, respectively. O’Leary declined to adjust his terms, maintaining the original offer of $250,000 for 10%. Blakely and Greiner also declined the counteroffer.
Ultimately, Radzely decided to accept Kevin O’Leary’s offer of $250,000 for 10%. Despite Mark Cuban’s advice to reconsider and Kevin O’Leary’s skepticism about the deal’s value, Radzely believed O’Leary’s offer provided the best combination of investment and expertise. The negotiation showcased the dynamics of securing a deal on Shark Tank, with entrepreneurs weighing multiple offers and considering the value beyond just the monetary investment.
