Lolla Cup on Shark Tank Show
The Lolla Cup is a 100% spill proof sippy cup that looks more like a toy. The creative design of the Lollacup makes it easy for children as young as 9 months old to start drinking out of a straw within the spill proof cup. Mark and Hanna Lim went on the Shark Tank Show looking for an investment of $100k in exchange for a 15% ownership of the baby cup business and valuing it at $1.5 million. At the time of their interview on the Shark Tank they had $30,000.00 in sales within the last 3 months and a soft order for an additional $30k for the Holiday Season. The Lollacups retail for $18.00, wholesale for $9.00 and costs $4.50 to make. The Lim's give a flawless presentation and have at least a few Sharks that are very interested.
Kevin O'Leary wants to know how much cheaper it would be to make oversees
compared to Made In The USA. Lim says they could get them made oversees for half the cost's in the U.S. but they want this to be a Made In The U.S.A. Product. It's no secret we have had some issues with kids toys imported into this country that proved to be harmful and because of it, has started a Made In America Revolution especially when it comes to our kids toys. Mark Cuban agrees that a few extra bucks per sippy cup is a small price to pay for your kids health as we'll as Brand this product as US made. He wants to know if they have already taken this to the big box stores and what did they think about the Lollacup. The Lim's took it to a trade show and it was the big box stores that initially approached them. They used Baby's-R-Us as an example of one of they stores. They do not mind the cost of the Lollacup as much as they did mind the packaging which would be difficult to display on store shelves.
Lori Greiner really loves the product and compliments Hanna on the design. It's an obvious choice (at least I thought so) that Lori could make the Lollacup very famous on QVC and she would make a decent offer. The Lim's have invested $100,000.00 to get their version of the sippy cup to this point. They already have an exclusive deal set up with a company for one year with about 8 months left on that contract. The Sharks really pounce on this news because there is no guarantee of sales quotas within this deal. Furthermore, because of the exclusivity, they themselves have to pay a 15% royalty on all the Lollacups sold. Ouch! Not good news to the Sharks.
Kevin O'Leary gives the Lim's the biggest compliment he could when he said "this is the New Sippy Cup" and goes on to say "you have done a fantastic job". He then proceeds to offer them $100k for 50% of the business but they have to start looking for an oversees production company to start making them for half the costs.
Daymond John decides to make the same offer but only if they can get out from under the contingency deal. O'Leary says he doesn't need that because he will deal with them in his own special way. Diamonds offer is also not contingent on them finding an oversees supplier. Robert Herjevic wants the Lim's to come back with a more realistic number before he decides if he will make an offer. Lim will do the deal for $100k and 40% which is more realistic number for the Sharks to consider.
Mark Cuban who has not said more then a few words so far, immediately says "Yes, Done" and stands up and walks towards the Lim's as if it's a done deal. The other Sharks go in an uproar and now there is offers flying all over the place. Ironically it was Hanna that brought order back in the Shark Tank and comely asked Cuban if he would be interested in doing the deal with Herjevic. Could the two rivals actually become business partners in the baby business? Yes, it's a done deal and they actually shake each others hands first which I think had more meaning then it appeared.
Before the Lim's went on the Shark tank Show they had lifetime sales of $40,000.00 from 50 retail stores. Within months they brought the Lollacup back for a featured update in Season 4 and reported that sales have already climbed to over $300k and it's now available in over 300 stores. To keep up with demand the Lim's needed to move the production and fulfilment out of their cramped house which was capable of producing only 800 Lolla Cups a day. They now had the capital and the orders to hire a facility to do the assembly which can make 3000 to 5000 Lallacups in a single day. They report that both Mark Cuban and Robert Herjevic have been very hands-on in making sure this business becomes a Huge Success.
|Robert Herjevic is one Happy Shark|
sipping on his Lollacup!
Order the Lolla Cup Online