how two moms invented a sippy cup for wine, figured out kickstarter and landed a shark tank deal - wine glass
When their children started kindergarten in 2013, Reagan Kelleher and Shannon Zapala were ready to leave their job, and kelaher was the project manager for the San Diego Kaiser permanent company, zappala is the marketing manager of a financial services company there.
After Kelaher's son knocked over a glass of plastic wine at an outdoor concert, she and Zappala thought of a portable wine glass with a small mouth.
$24 Goverre (made of white glass)
"Verre" means Glass in French)
Comes with silicon sleeves of all colors.
Their products entered Oprah Magazine and 550 specialty retailers across the country, with sales reaching $500,000 last year.
However, they have to spend more than $100,000 on inventory orders and royalties, while paying zero fees.
On March 2016, they had a whim and sent an email to ABC's business promotion program Shark Tank.
More than a year later, on April 21, their show aired, with four of the five sharks scrambling to invest.
The option for the third business has dropped to $200,000, either Kevin O'Reilly, who runs a mail order wine site in other businesses, or a joint deal between the three sharks on the same terms
Billionaire Dallas Mavericks boss markcuban, IT security executive Robert hejavitz and inventor, QVC pitchwoman Lori Greiner.
In this interview, Kelaher, 39, explained her decision with Zappala, 42.
Susan Adams: where did you get the idea from Goverre?
Regen kellehe: We read Guy Kawasaki's book The Art of the beginning, and we came up with three things that are important to us: creating new products or services, add value or better to existing products or services.
Second, it must be new, or there is a turning point. No.
3. it must be interesting or sexy or both.
Why do you want to make a portable wine glass?
Shannon and I were at a concert in a small town park.
We were pouring wine into the plastic cup and one of my kids knocked my Cup over.
It sounds cheesy, but we think there must be a better way to do that.
Adams: How did you design it?
Kelaher: We have a clear, dry-free wine glass, we paint it white with craft paint, and then stick a cupcake cover on it.
Then we removed a silicone sleeve from the cup we found at Target.
That's our model. up.
Adams: why make a white glass with a blurry wine color?
Kelaher: We think that white with popular colors will become a trend and will be beautiful.
Goverre is not made for wine tasting.
It is an outdoor activity at a concert or on board.
Adams: How did you put your model
Became a prototype, how much did it cost?
We paid $15,000 to a local engineering company.
How did you launch this product?
Kelaher: We thought it was easy and we would go to Kickstarter like everyone else.
We were defeated.
Our target is $100,000 and we only raised $40,000.
What did you do wrong?
Kelaher: We didn't think about population statistics for Kickstarter.
It is aimed at young people. this is not our market.
Adams: How did you stick to it?
We must be at the crossroads. We cried.
But we're not ready to give up.
So we launched another campaign and this time we knew we had an audience already, so asked for $40,000. We got $64,000.
Adams: How did the retail price of $24 come from?
Kelaher: we read that "Keystone" is the best thing for retail products.
You cost twice as much.
The cost of our glass production is $6, so we wholesale $12 and retail $24.
Adams: How did your product get into the store?
We started out door to door.
Then we went to New York and it was our first trade show and we got 70 new accounts.
Oprah came to us and they wrote our story.
It was January 2016.
We can hardly keep up.
How did you get into a shark tank?
Kelaher: on March 2016, we searched Google for "how to get on a shark tank ".
"I had a drink and wrote a short, cheeky email saying we were two moms and we had a very interesting product.
In July 2016, we received a call from a producer.
We were shocked.
Adams: is that simple?
No, there are a lot of emails and at least 6 phone interviews and we have to submit a video.
Then we only heard that they wanted to shoot us a few days before our September shoot.
Adams: How did you prepare it?
Kelaher: once we knew we had a chance, we practiced like we were going to the show.
We watched as many shows as possible and we drafted the answers to all the questions.
We go over and over until our children know the answer.
Adams: What does the recording look like?
Kelaher: Nervous, overwhelming, exciting.
The strange thing is, I don't remember most of it.
Adams: on the show, it looks like the shark is starting to quote in a few minutes.
How long does it really take?
Kelaher: We shot for an hour and they made a quote towards the end.
Adams: Why did you refuse the offer of Kevin O'Reilly, who owns an online wine company, but instead chose Robert, Lori, and Mark?
This is an intuitive reaction.
Robert, Mark and Lori would like to work with us and we are particularly honored.
In addition, we also heard that Lori was with her partner.
Adams: What are your goals when you get publicity or business advice on the show? Our number.
The suggestion is a goal.
As for propaganda, we have barely kept up.
It may be childish, but we think we can eventually find an investment if we need.
Did you make a deal? We did it.
It moves fast.
We are not allowed to share the details but we are very happy with the deal.
Adams: When did you find out that your part was going to be on air?
Kelaher: it's only two weeks before the broadcast date.
Adams: How did you prepare the broadcast date?
Kelaher: We have 60 days lead time for our orders at our factory in China.
We took the risk of ordering inventory and packing supplies, and we updated our website so it wouldn't crash.
Adams: But now, I can only
Delivery can be ordered.
Kelaher: our inventory arrived this week.
We want to make sure we give our customers clear expectations.
We find that people are willing to wait as long as there is communication.
What did you say to your retailer about shark tanks?
Kelaher: when we get the broadcast date, we want them to be the first to know we're going to be on the show.
Our business is 70% wholesale.
What they are most worried about is that we will enter a big box shop.
This is the first question at the trade show.
Adams: how do you answer?
Kelaher: We don't have any plans right now, but we will keep you in touch if we have any plans.
Do you want to sell big cases?
Kelaher: we want to come up with a lower one.
We can sell pricing versions for beds, bathrooms and other places.
Adams: It aired on Friday, April 21.
How about weekend sales?
We have about half our annual sales.
Adams: on the show, you said you had a profit of $134,000 last year, but you didn't pay for it yourself.
How is mathematics done?
If you use Quickbooks, you think you have a lot of profit.
But in banks, net profit cannot be converted into cash.
The money is spent on upcoming inventory, patent fees and business development fees.
This is a very difficult lesson.
Adams: How did you survive without a salary?
Kelaher: we have savings. We are very frugal. Thank God, we have supportive husbands.
Adams: What advice did you get from the shark?
We have not received any specific advice yet.
We have arranged some calls for this week and next week.
I'm really excited to see if their ideas are consistent with ours.
Adams: What did you do for $200,000?
Kelaher: we use it for stock and production operations and help with cash flow.