The first entrepreneur into the Shark Tank this week was presenting his business Fidgetland and seeking $50k in exchange for 10% of the business. He has developed a line of fidget toys that are discreet and silent and can help treat ADD and anxiety.
As for his numbers, he has sold fifty thousand units since 2007, equating to sales of $500k. This year he is on track to see $500k in sales with 85% of those sales being online. They retail between $8 - $15, cost $1.35 - $2.69 to make, and he expects to see $175k in net profits this year.
Personally, I am excited about the potential of this product, but I do have some concerns. From a consumer perspective, I love the idea of this toy being silent and discreet. So many of the options on the market now are loud and distracting. However, from a marketing perspective I am worry about this feature. Part of the massive success seen by fidget spinners comes from the fact that they are a bit of a spectacle. Kids in a classroom see other kids playing with them and then run home to beg their parents for one. If a kid is playing with a Fidgetland toy, the other kids may never know about it or see it. The toy accomplishes its purpose while at the same time damaging its own marketability.
It’s encouraging to hear that the business has hired a marketing agency in the past year. Much of their recent success has come from the virality of other fidget products and that’s not a solid strategy to rely on for the longterm. Viral trends come and go. If he can take that success and prepare for when the trend starts to die out, the business has a much better chance to stand the test of time.
It was great to see Fidgetland make a deal in the Tank with Barbara. They landed on $50k in exchange for 20%. Though that cuts his initial valuation in half, it still seems like the kind of deal that will help Fidgetland grow and maintain their relevance. Good luck to them!