Totes Babies Car Seat Carrier
DEAL
EPISODE SUMMARY
🕓 Air Date: March 12, 2021
Asking For:
$100,000 for 10%
Investor:
Lori Greiner
Deal:
$100,000 for 22%
PRODUCT SUMMARY
Totes Babies offers the Totes Babies Car Seat Carrier, a convenient solution for shopping with babies by attaching a car seat to a shopping cart.
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Background Story
The concept behind Totes Babies sprouted from the personal experience of Lindsey, a first-time parent, who found herself grappling with the difficulties of shopping while caring for her baby. It was during these challenging moments that she recognized a pressing need for an improved solution. Fueled by her determination to make shopping safer and more convenient for parents like herself, Lindsey embarked on a collaborative journey with her father, Stan.
Stan brought a wealth of knowledge and expertise to the table, with a background steeped in manufacturing. His impressive portfolio included over 40 patents, and he had previously worked on creating products for prominent big-box and hardware stores. This combination of Lindsey’s new-parent perspective and Stan’s manufacturing prowess led to the birth of Totes Babies.
Their partnership bore fruit when Stan transformed Lindsey’s initial concept into a tangible product. Using adjustable curtain rods, electrical tape, and a drop cloth, he crafted a prototype that demonstrated the idea’s potential. The prototype’s success during real shopping trips validated their belief that they were onto something remarkable. Together, they decided to take this innovative concept to the market, laying the foundation for Totes Babies and its mission to simplify and enhance the shopping experience for parents.
The Product
The centerpiece of Totes Babies’ innovation is the Car Seat Carrier, meticulously designed to resolve the challenges of shopping with an infant. This ingenious solution seamlessly fits over a variety of shopping cart sizes, ensuring that parents can confidently secure their baby’s car seat during the entire shopping excursion.
With a remarkable weight-bearing capacity of up to 75 pounds, the Car Seat Carrier not only accommodates infants but also growing toddlers, making it a versatile choice for families. It can be conveniently purchased through various channels, including Amazon, buybuy BABY, Bed Bath & Beyond, and the official Totes Babies website, offering customers a range of options for acquisition.
Behind this innovation lies a commitment to quality and affordability. The manufacturing cost of the Car Seat Carrier is a mere $9.90, underscoring Totes Babies’ dedication to providing a practical solution without breaking the bank.
This price point ensures accessibility to a wide range of parents, reflecting the company’s mission to make shopping with babies not only safe and simple but also budget-friendly.
How It Went
The company’s position before Shark Tank
Since its inception in August 2018, Totes Babies has made commendable strides in the market. With a total of $220,000 in sales, the company has demonstrated its appeal to parents seeking a convenient solution for shopping with their little ones. Totes Babies’ ability to meet the needs of this niche market segment is evident in its steady revenue growth. Totes Babies has strategically leveraged online platforms, particularly Amazon, as a primary sales channel.
This digital approach aligns with the modern shopping habits of parents, who often turn to e-commerce for their convenience needs. The company’s online presence has facilitated access to a broader customer base, further fueling its success. In support of their marketing efforts, Totes Babies has invested approximately $20,000 in advertising. This expenditure underscores their commitment to spreading the word about their innovative product and ensuring it reaches parents looking for a safer and more efficient shopping experience.
With an acquisition cost of 15%, Totes Babies has effectively managed its marketing expenses in relation to sales, optimizing their investment in customer acquisition. Looking ahead, the company is poised for expansion into the grocery market. This strategic move reflects their ambition to make the Car Seat Carrier a ubiquitous solution for parents, solidifying their position as a go-to brand in the realm of shopping convenience for families.
The Negotiations:
During the intense negotiations on “Shark Tank,” Totes Babies received offers from three prominent Sharks: Lori Greiner, Daniel Lubetzky, and Robert Herjavec. Initially, Lori and the duo of Daniel and Robert each extended a $100,000 offer in exchange for a 25% stake in the business. However, the negotiation table soon saw some exciting twists. Lori Greiner, recognizing the potential of Totes Babies and their compelling backstory, proposed a slight adjustment to her offer.
She offered the same $100,000 investment but for a reduced equity share of 22%. This move was likely aimed at making her offer even more enticing to the founders, emphasizing her belief in the product and her dedication to their success. This proposition presented a choice for Lindsey and Stan: accept Lori’s offer for a slightly smaller equity stake while still gaining her expertise and resources, or go with the joint offer from Daniel and Robert, which would have maintained a 25% equity stake.
In the end, the founders chose to partner with Lori Greiner, accepting her offer of $100,000 for 22% of the business. This decision highlighted the value they saw in Lori as a mentor and partner, as well as her potential to help propel Totes Babies to new heights within the market.
