UnbuckleMe – Kids Car Seat Tool
DEAL
EPISODE SUMMARY
🕓 Air Date: May 6, 2020
Asking For:
$100,000 for 10%
Investor:
Lori Greiner, Mark Cuban (50/50)
Deal:
$100,000 for 20%
PRODUCT SUMMARY
UnbuckleMe is a patented tool that uses a type-2 lever to reduce the force required to unbuckle a child's car seat by more than 50%.
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Background Story
Becca, along with her daughter Eve and her mother Barb, pitched UnbuckleMe on Shark Tank. The idea originated from Barb’s struggle to unbuckle Eve’s car seat due to arthritis in her thumb. Recognizing the widespread challenge, Becca and her team created UnbuckleMe, a tool that significantly reduces the force needed to unbuckle a child’s car seat.
Based in Houston, Texas, the founders shared a personal connection to the product, emphasizing its impact on family safety during travel. Becca’s background in child passenger safety and the collaboration with her mother, an occupational hand therapist, underscored the product’s credibility.
The Product
UnbuckleMe is a simple yet effective device designed to address the difficulty of unbuckling a child’s car seat, a common problem faced by many caregivers, particularly those with arthritis or limited hand strength.
The patented tool employs a type-2 lever mechanism, reducing the force required by more than 50%. It doesn’t attach to the car seat for safety reasons and should be kept out of reach of children when not in use.
To use UnbuckleMe, users slide the tool around the buckle, position the peg over the red button, and pinch the ends together, making unbuckling significantly easier.
The founders emphasized its versatility, catering not only to grandparents but also to younger families dealing with the challenges of the school drop-off line. By handing the tool to a child in the backseat, parents can expedite the unbuckling process and improve overall convenience.
UnbuckleMe is priced at $14.99 and is manufactured in the U.S., aligning with the founders’ commitment to quality. With 35,000 units sold in 22 months and total sales reaching $400,000, the product has gained traction in the market.
The founders highlighted their target audience, including the 70 million grandparents in the U.S. and the broader market of parents seeking a solution for smoother car seat unbuckling.
How It Went
The company’s position before Shark Tank
UnbuckleMe has been on the market for 22 months, selling over 35,000 units with total sales of $400,000. Priced at $14.99, the product is manufactured in the U.S., emphasizing quality and safety. The founders revealed that about half of their sales come from grandparents, a market segment comprising 70 million individuals in the U.S. Additionally, 30% to 40% of their sales target younger families using UnbuckleMe for the school drop-off scenario.
The company relies on Facebook and Amazon ads for customer acquisition, with a current cost of around $3 per customer, which they aim to reduce further. UnbuckleMe has two issued patents, ensuring protection for their unique design. The founders expressed their commitment to continuous growth, projecting an 85% increase in sales over the previous year by the end of the current year, reaching $300,000 in total sales.
Currently cash-flow positive, the company has positioned itself as a reliable solution in the child safety market. The founders acknowledged the importance of social media and expressed eagerness to learn from the Sharks in this regard.
The Negotiations:
Becca initially sought $100,000 for 10% equity, valuing the company at $1 million. Kevin O’Leary, known as Mr. Wonderful, together with Anne Wojcicki made an offer of $100,000 for 7% equity and a $1 royalty per unit. Kevin later reduced their royalty offer to 50 cents after recouping the initial investment. In a surprising turn, Mark Cuban and Lori Greiner joined forces and threw in an offer of $100,000 for 20% equity (10% each), but without a royalty.
This prompted Daymond John to make an offer of $100,000 for 15% equity, without a royalty too. Becca asked to split 15% to call it a deal but Cuban and Greiner stood firm on their 20% equity proposal. The founders, eager to secure a deal, then accepted the joint offer from Mark Cuban and Lori Greiner at $100,000 for 20% equity, with no royalty. The negotiation showcased the Sharks’ interest in the product and the founders’ ability to secure a favorable deal with two experienced Sharks.
