Zorpads Shoe Odor Inserts
DEAL
EPISODE SUMMARY
🕓 Air Date: January 27, 2019
Asking For:
$150,000 for 8%
Investor:
Charles Barkley, Lori Greiner (50/50)
Deal:
$150,000 for 20%
PRODUCT SUMMARY
Zorpads are ultra-thin shoe inserts utilizing NASA-tested technology to eliminate odors, fitting all shoe sizes without altering the shoe's fit.
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Background Story
Zorpads, a venture originating from Venice, California, was presented on “Shark Tank” by founders Taylor and Sierra. The dynamic duo first crossed paths at Harvard Business School, where they forged a partnership that would eventually lead to the creation of Zorpads. Their diverse professional backgrounds equipped them with a unique set of skills to tackle the age-old problem of shoe odors. Taylor brought a wealth of product development experience from a stint at Clorox, where he worked on innovations for Brita water filters and earned five patents for his inventive contributions.
Notably, he transitioned from the realm of consumer goods to the aerospace industry, contributing to air filtration systems at SpaceX. Sierra, on the other hand, leveraged her expertise in strategy and operations, showcasing her leadership abilities by becoming the youngest director, regardless of gender, at a major hospital network. Later, she ascended to the position of Chief of Staff to the CEO.
The inspiration for Zorpads struck the founders in the midst of daily life scenarios. Imagining the discomfort of entering a friend’s apartment with the oppressive smell of worn shoes, they conceptualized a solution. This led to the development of Zorpads, ultra-thin shoe inserts incorporating NASA-tested technology designed to obliterate odors effectively. Their commitment to tackling the universal issue of shoe odors, combined with their diverse professional backgrounds, laid the foundation for Zorpads’ journey from concept to a sought-after product featured on the “Shark Tank” stage.
The Product
Zorpads, the brainchild of Taylor and Sierra, are cutting-edge shoe inserts revolutionizing the battle against unpleasant odors. These ultra-thin inserts employ activated carbon cloth, a NASA-tested technology, to efficiently absorb and neutralize odors, ensuring that shoe-related smells become a thing of the past. One key feature is their one-size-fits-all design, ensuring compatibility with various shoe sizes without compromising comfort or fit.
The benefits of Zorpads extend beyond their odor-fighting capabilities. Unlike traditional solutions like sprays or powders, Zorpads don’t alter the fit of the shoes or create discomfort. The inserts, discreet in size, adhere securely in place, providing a hassle-free and inconspicuous solution to a common problem.
Priced at $5 per pair, Zorpads offer an affordable yet effective remedy for shoe odors. The product is available for purchase directly through their website, and the founders have strategically expanded their market presence by launching on prominent e-commerce platforms such as Amazon, Walmart, and Jet.
How It Went
The company’s position before Shark Tank
Since its launch in July 2017, Zorpads has demonstrated a steady performance and garnered notable attention on the “Shark Tank” stage. The company’s health and position in the market showcase a promising trajectory, with total sales reaching $103,000 to date. Zorpads has strategically positioned itself in the market through a direct-to-consumer marketing approach. The founders emphasized their commitment to building a brand, leveraging their online platform to sell the odor-fighting inserts directly to customers.
Additionally, Zorpads has expanded its market reach by recently launching on major e-commerce platforms, including Amazon, Walmart, and Jet. As for partnerships, the company has not disclosed specific details about collaborations with other businesses or brands. However, the decision to broaden their distribution channels to well-established platforms suggests a proactive approach to forming strategic alliances.
Zorpads’ primary customers are individuals seeking an effective and convenient solution to combat shoe odors. The product’s affordability, priced at $5 per pair, makes it an accessible choice for a diverse consumer base. In terms of funding, the founders sought a $150,000 investment on “Shark Tank” to further fuel the company’s growth. The deal secured with Lori Greiner and Charles Barkley at a 20% equity stake indicates a successful infusion of capital to support marketing and sales expansion. The founders mentioned a production cost of $1.65 per unit, expected to decrease to 80 cents at scale. This cost structure suggests a focus on maintaining a competitive pricing strategy to enhance market penetration.
The Negotiations:
The negotiations for Zorpads on “Shark Tank” unfolded with a mix of enthusiasm, strategic thinking, and some playful banter. The initial ask by Taylor and Sierra was $150,000 for an 8% equity stake in their odor-eliminating shoe insert business. Kevin O’Leary made an early offer, proposing $150,000 for a substantial 30% equity share. Lori Greiner followed suit with a more favorable offer of $150,000 for a 20% stake.
Mark Cuban and Robert Herjavec joined the negotiation table, expressing interest in the product. Charles Barkley, intrigued by the potential of Zorpads, also entered the fray. The negotiations took an unexpected turn when Lori Greiner introduced a contingency to bring Charles Barkley into the deal, emphasizing the potential for a celebrity endorsement and QVC exposure. Herjavec, ever the strategist, voiced concerns about the equity being offered, leading to some spirited back-and-forth among the Sharks.
Ultimately, Lori Greiner and Charles Barkley clinched the deal, offering $150,000 for a 20% equity stake, which Taylor and Sierra accepted. The negotiation showcased the founders’ ability to navigate offers, respond to contingencies, and secure a deal with Sharks who brought both financial backing and strategic value to the table. The playful exchange, particularly Barkley’s humor and Greiner’s marketing expertise, added an entertaining dynamic to the negotiation process, resulting in a successful partnership for Zorpads on the “Shark Tank” platform.
