- Boom Boom, says The Basics Company.
- Chelsea and John Pinto are the owners.
- Energy Nasal Inhalers is a product (Pocket Aromatherapy Products)
- $300,000 (with 10% equity) is the asking price.
- None in the end.
- None of the sharks took the bait.
Before Shark Tank, there was a lot of energy
John and Chelsea Pinto are two Los Angeles-based entrepreneurs. They saw several individuals carrying nasal inhalers while on a vacation to Thailand in 2010, with the intention of giving enough stamina to party till morning. They spoke to several locals and learned that a Muay Thai fighter used a nasal inhaler to get back up after a major knock-out.
They were motivated to produce a comparable product for the United States, so when they returned, they collaborated with chemists and medical experts to design a nasal inhaler that would provide the same advantages as those they observed in Thailand, but with better components.
When John and Chelsea started an Indiegogo crowdfunding campaign for their product, Boom Boom Inhaler, it was already selling well on Amazon. Their objective was to get their goods into shops.
The Pintos chose Shark Tank to pitch their product because they were seeing good development and wanted to increase brand awareness. They hoped that participating in the program would raise exposure for the inhaler, but they also understood that more funding would be needed to take the device to the next level.
On Shark Tank, there’s a lot of boom boom energy
Season/Episode: Episode 4 of Season 10
John and Chelsea approached the stage and asked the sharks for $300,000 in return for a 10% stake in their business. They were selling “a new best buddy for your nose,” as John put it. It was time, he added, to convert breathing into cash.
Chelsea went on to explain that eye drops, mouthwash, and lip balm are available for use in the eyes, mouths, and lips. However, there was no such thing as a daily healthy and safe nose product. Essential oils, menthol, and other stimulating fragrances were used to create their all-natural nasal inhaler. Boom Boom was designed for extreme refreshment and rejuvenation, unlike other nasal products, which were designed for congestion or allergies. They then showed how to use the device by unscrewing the cap off the tube, putting the barrel at the tip of the nose, and inhaling deeply.
It was like chewing gum for your nose, but 10 times more minty and pleasant, according to John. When you inhale, you’ll feel a cooling and tingling feeling.
The sharks were eager to taste it, so the Pintos gave them some. After inhaling, all of the sharks seemed to be considerably energized, and several of them exclaimed, “Whoo!” John said that they had five fragrances available, all of which were comparable in strength, but that Tropical Rush was the most popular.
Robert inquired whether they had any other goods similar to theirs. Chelsea mentioned two additional inhaler brands, but they were more medical and earthy than joyful and bright, according to Chelsea. Charles Barkley, a guest shark, inquired about their sales figures. John informed them that the business had earned $754.000 the previous year and was on pace to generate $1.1 million this year.
Lori wanted to know where the inhalers were sold, and Mark wanted a breakdown of the sales channels. According to John, 20% of sales on their business website were direct-to-consumer, 30% of overall sales were through Amazon, and 45 percent were sold to wholesalers and other distributors. Charles inquired about their prices. A single pack costs 70 cents to produce, according to John, and they sell it for $7.95 on their website. After paying himself a salary, the prior year’s net profit was $125,000.
Charles was also curious as to where it was manufactured. It was made in southern California, according to John. Kevin inquired as to why they did not outsource production to save money. John said that by scaling up, they could reduce expenses by 25%. They chose to retain production in the United States because they wanted to guarantee that the ingredients were safe and of excellent quality.
Mark inquired about the wholesalers’ fees. Kevin informed John that the wholesale price was $1.50, and that wasn’t a decent margin. When John started the retail price was $3.99, the news became much worse. Kevin was surprised to learn that they were selling at a considerably greater price on the internet and that the low retail pricing was eroding their profit margins. John said that he had evaluated pricing points at retail between $3.99 and $5.99 and discovered that $3.99 worked best for what was termed an impulsive purchase.
Charles inquired as to whether or not this was their full-time employment. It was for John, but Chelsea worked as a dentist and could only devote half of her time to the project.
Kevin was still perplexed by the pricing disparity between the internet and the physical store. He informed them that their retail margins were terrible. John, on the other hand, justified his retail price approach, claiming that the product is more of an impulse purchase in shops.
When asked whether he had any other partners, John replied he had a cofounder who got the same amount of stock as him – 36 percent – and two additional investors who each paid $200,000 for a 25 percent stake.
They sought more money from the sharks in return for less ownership, but John defended their choice, claiming that the product was presently selling well. It was worth more today than when the initial investors put their money in. Kevin, on the other hand, argued that there was value up here (with the sharks) as well. Kevin went on. He claimed he was fascinated by the product and how well it had sold so far, but that a $300,000 investment based on a $3 million value was too much. He was on his way out.
Lori was pleased with what they had achieved as well, but she was hesitant to give them $300,000 for a product that would only be purchased once. She was out since it didn’t connect with her.
The product seemed interesting to Charles, but not something he would use on a regular basis. He advised Chelsea not to leave her work as a dentist before informing them he was going to take a break.
Mark didn’t think the value was excessive, but he was concerned about the margins, especially if they planned to grow into retail. He was no longer among us.
Robert loved the product – and noticed that most of the other sharks did as well – but had reservations about its price. He would give $300,000 in exchange for 36 percent, which is the same amount of stock that John has. He said that he couldn’t get to the $3 million values any other way. Kevin then informed the PIntos that they had requested much too much money.
John said that he was unable to give up so much equity. He asked Robert whether he would take 15%. “No,” Robert replied right away. He was adamant about not lowering the price from that point.
John retorted once again. He claimed the most he could go was 20%, but Robert replied he couldn’t go much higher. The Pintos walked off the stage without concluding an agreement.
After Shark Tank, there’s a lot of energy
Despite not having struck a deal with a shark, Boom Boom Energy seems to be doing well. Aside from the company’s website and Amazon, the product is now available in Walmart, which is quite a feat!
The pricing for a single pack is still $7.95 on the website, but you can save money if you purchase several packs. The cost of three tubes is $19.95, and the cost of five tubes is $29.95. You may also customize your own bundle by selecting one of the brand’s five fragrances. The inhaler has received generally favorable feedback.
The retail price at Walmart is still much less than the price of a tube on the internet. A one-pack at the retail behemoth costs $4.76, which is 60 percent less than the site’s unit price. However, just one of the fragrances is available at Walmart: Wintermint.
Despite the lack of sales statistics, the Boom Boom has had a significant effect on social media. The business has 42,000 Facebook likes and 102,000 Instagram, followers! Is this an indication that individuals are purchasing inhalers more than once? If the Boom Boom Inhaler really increases energy, there’s a good chance it’ll be a repeat buy.
The material in this article is given only for educational purposes; Royal Pitch is not connected with Boom Boom, Shark Tank, or any of its subsidiaries.
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