Tie-Not – Water Balloon Tool
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 16, 2014
Asking For:
$125,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Tie-Not offers a solution to the tedious task of tying water balloons, with their Tie-Not Filler and Tie-Not Tying Stick, allowing users to fill and tie water balloons in seconds.
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Background Story
Tie-Not, a product designed to simplify the arduous task of tying water balloons, was brought to life by Wayne Sikorcin and Scott Smith. Sikorcin and Smith embarked on their entrepreneurial journey with Tie-Not to alleviate a common inconvenience faced by many. The genesis of Tie-Not can be traced back to a family picnic in 2008, where Sikorcin found himself grappling with the time-consuming and finger-straining task of tying water balloons. Frustrated by the process, he realized the need for a more efficient solution.
Inspired by his daughter’s observation of one of his sketches resembling a stick, Sikorcin began conceptualizing a device that could streamline the water balloon tying process. Utilizing his background in design and innovation, Sikorcin, alongside Smith, embarked on a journey of prototyping and testing to bring their vision to life. After diligent research and development, they patented their solution and unveiled Tie-Not at a toy fair in 2010. Both founders bring complementary skills to the table – Sikorcin’s expertise lies in design and problem-solving, while Smith likely contributes to the business and operational aspects of the venture.
Their shared determination and entrepreneurial spirit drove them to navigate the challenges of product development and bring Tie-Not to market. Despite facing setbacks, such as entering into a licensing agreement with a larger toy company, Sikorcin and Smith remain committed to their vision of revolutionizing the water balloon tying experience. Their background story reflects the quintessential entrepreneurial journey – identifying a common problem, innovating a solution, and navigating the complexities of bringing a product to market.
The Product
Tie-Not offers a revolutionary solution to the mundane and time-consuming task of tying water balloons. The product comprises two essential components: the Tie-Not Filler and the Tie-Not Tying Stick. The Tie-Not Filler attaches effortlessly to any standard garden hose, serving as the primary mechanism for filling water balloons. Its intuitive design allows users to swiftly fill balloons with water, eliminating the need for manual filling methods that often lead to messy spills and sore fingers.
Once the balloon is filled, the Tie-Not Tying Stick comes into play. This universal tool simplifies the tying process, enabling users of all ages and finger sizes to tie water balloons effortlessly. By simply slipping the balloon onto the stick, tilting it forward to engage the filling mechanism, and then swinging the balloon around the stick, users can quickly secure the balloon without the need for intricate knot-tying skills.
Tie-Not offers unparalleled convenience and efficiency, making it the perfect accessory for water balloon fights, outdoor parties, and summertime fun. The product’s ease of use and innovative design have garnered praise from consumers and industry experts alike.
Tie-Not can be purchased online through various retailers and the company’s official website, typically priced at $4.99 for a package that includes 50 balloons. Its affordability and effectiveness make it a must-have accessory for any water balloon enthusiast.
How It Went
The company’s position before Shark Tank
Tie-Not has demonstrated steady growth and innovation in the water balloon accessory market. Despite facing challenges, such as entering into a licensing agreement with a larger toy company, Tie-Not has managed to establish a foothold in the industry with its innovative product offerings. The company’s licensing agreement suggests a strategic partnership with a larger player in the toy industry, which likely provides Tie-Not with access to broader distribution channels and increased brand visibility.
Tie-Not’s wholesalers and distribution partners are not explicitly mentioned in the transcript, but they likely include toy retailers, online marketplaces, and potentially direct-to-consumer channels through their website. Tie-Not’s target customers span a diverse demographic, including families, outdoor enthusiasts, and anyone looking to simplify the water balloon filling and tying process. Their product appeals to both children and adults, making it a versatile accessory for various occasions.
Tie-Not’s sales performance indicates a promising trajectory, with $385,000 in total sales reported last year. However, questions regarding profit margins and operational expenses raise concerns about the company’s overall financial health and profitability. Despite these challenges, Tie-Not remains focused on building its brand and expanding its product offerings. The company’s structure likely includes a small team of founders and employees responsible for product development, marketing, sales, and operations.
The Negotiations:
During the negotiations on Shark Tank, Tie-Not founders Wayne Sikorcin and Scott Smith faced scrutiny over their $1.25 million valuation. Despite receiving praise for their innovative product, the Sharks expressed reservations about the company’s financial performance and valuation. Barbara Corcoran made the first offer, proposing $125,000 for 25% equity, which the founders declined. The negotiation continued with Kevin O’Leary expressing concerns over the valuation and suggesting that the licensing agreement skewed the company’s perceived value. O’Leary ultimately decided not to invest.
Daymond John and Lori Greiner also opted out of the deal, citing concerns about the valuation and profit margins. Mark Cuban, while impressed with the product, felt that the valuation was too high and declined to invest. Barbara Corcoran made a second offer, this time proposing $125,000 for 25% equity, but the founders countered with an 18% offer, which included $50,000 in cash and $100,000 in credit line. Corcoran stood firm on her offer, leading to a stalemate.
Despite not securing a deal, the founders remained optimistic about Tie-Not’s potential for growth. The negotiation showcased the Sharks’ skepticism towards the company’s valuation and highlighted the challenges of striking a balance between valuation and equity stake. Ultimately, Tie-Not left the Tank without a deal but with a renewed determination to continue building their brand and expanding their product offerings.
