WISP Cleaning System Broom and Dustpan
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 18, 2018
Asking For:
$500,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
WISP Industries presents the WISP, a revolutionary floor-cleaning system designed to disrupt traditional sweeping with a one-handed, pulling motion and an innovative dustpan featuring foot-activated pressure.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
WISP Industries, the brainchild of founder Eben Dobson, emerged from a desire to revolutionize the mundane household task of sweeping. The founder, Eben Dobson, introduced himself as the visionary behind the WISP, a groundbreaking floor-cleaning system that aimed to disrupt the centuries-old practice of sweeping. Eben’s motivation stemmed from the inefficiencies he identified in traditional brooms and dustpans, prompting him to reimagine these commonplace tools.
The WISP, introduced during the pitch, features a re-engineered design with short, dense bristles set at a 90-degree angle to the floor, creating a perfect seal for effective cleaning. The accompanying patented dustpan, activated by foot pressure, further enhances the ease of debris collection. Eben’s background and experience in product development and entrepreneurship were not extensively detailed in the provided transcript. However, his pitch indicated a deep understanding of the shortcomings in existing sweeping tools and a commitment to introducing innovation to this household chore.
The company’s journey, as outlined by Eben, involved overcoming challenges, including significant financial setbacks. Despite facing a loss of $600,000 in the previous year due to marketing costs and revenue-sharing deals, WISP Industries had achieved notable success with over 100,000 units sold and $3.3 million in lifetime sales.
The Product
The WISP, presented by WISP Industries, is a revolutionary floor-cleaning system designed to transform the conventional practice of sweeping. The product comprises a re-engineered broom and dustpan with innovative features aimed at enhancing efficiency and user experience. The broom is intentionally lightweight, allowing users to operate it with one hand in a pulling motion, departing from the traditional two-handed sweeping method.
The key innovation lies in the design of the bristles, which are short, dense, and angled at 90 degrees to the floor. This configuration creates a perfect seal to the surface, ensuring optimal contact and efficient cleaning. The patented WISP dustpan complements the broom by introducing foot-activated pressure. Users can step on the back of the dustpan to create a seal, facilitating effortless debris collection.
Additional features include combs on the side of the pan for easy cleaning of the bristles, addressing a common challenge with traditional brooms. The product’s benefits include ergonomic design, one-handed operation, and improved efficiency in debris collection.
WISP has been sold to consumers, with over 100,000 units sold to date. The price of the WISP is mentioned as $29.95, positioning it as a higher-priced alternative to traditional brooms but with added functionality and efficiency. In summary, the WISP offers a modernized approach to floor cleaning, emphasizing one-handed operation, innovative bristle design, and foot-activated features in the accompanying dustpan. The product’s benefits include improved ergonomics and efficiency, making it an appealing solution for consumers seeking a more advanced and user-friendly sweeping experience.
How It Went
The company’s position before Shark Tank
WISP Industries, as outlined in the provided episode transcript, exhibited a mixed financial performance and faced challenges in terms of profitability and financial stability. The company’s health and position were characterized by notable sales success, having sold over 100,000 units of the WISP and achieving $3.3 million in lifetime sales. However, the financial health was compromised by a loss of $600,000 in the previous year. This loss was attributed to significant marketing costs and revenue-sharing arrangements with shows, impacting the company’s profit margins.
The funding history of WISP Industries involves Eben Dobson, the founder, raising close to $2.5 million over six years from his network. The episode did not provide detailed information on specific partners, wholesalers, or customers. However, Eben mentioned that the company had experienced a viral event in 2016, leading to a sell-out of inventory due to over 110 million views. This success was followed by challenges in inventory management, as the company struggled to maintain consistent production and distribution.
The financial structure of WISP Industries revealed $50,000 in available capital, $300,000 in inventory, and cumulative losses exceeding $2.1 million. Eben expressed the need for a strategic partnership to address financial instability and enhance the company’s online presence. The company’s current structure and details about its internal operations and team composition were not explicitly provided in the episode. In summary, WISP Industries demonstrated a history of notable sales success but faced financial challenges, particularly in managing marketing costs and achieving consistent profitability.
The Negotiations:
The negotiations for WISP Industries unfolded with Eben Dobson seeking $500,000 for 10% of the company. Kevin O’Leary, expressing concern over the company’s financial performance and cumulative debt of over $2.1 million, made a substantial offer of $500,000 for a significant 50% equity stake. Despite Mark Cuban and Lori Greiner raising doubts about Eben’s ability to execute and manage finances, Kevin emphasized the need for adult supervision and a focused strategy.
Lori, recognizing the potential of the product but expressing reservations about the company’s financial situation, declined to invest but expressed interest in purchasing the product. Mark advised Eben to focus on his strengths and consider hiring for weaknesses. Eben ultimately accepted Kevin’s offer, signaling a willingness to part with a substantial equity share in exchange for the much-needed capital injection.
However, the negotiation took an unexpected turn when Lori questioned the exclusion of her involvement and Kevin’s reluctance to include her despite offering no capital. Eben, perhaps sensing an opportunity to broaden his support base, agreed to include Lori and accept the deal, resulting in a unique partnership with both Kevin and Lori. The negotiation showcased the challenges faced by WISP Industries and the critical importance of securing a strategic partnership to overcome financial hurdles and capitalize on the product’s potential.
