Pop It Pal
Pop It Pal is a product developed by a family of entrepreneurs that pledges to help people satisfy their craving to pop pimples. Inspired by their own obession with watching pimple popping videos on YouTube, these three entrepreneurs developed a silicon pad with sixteen "pimples" that simulate the sensation and (to some degree) the look of popping white head pimples.
In addition to the silicon pad, the Pop It Pal can be refilled with additional "creams" so that the "fun" can continue indefinitely.
The company was founded by a husband and wife and a cousin. Together the husband and wife manufacture the product at home while the cousin specializes in marketing.
In terms of sales, Pop It Pal has made $315,000 of gross sales in four months. They project making $940,000 sales by the end of the year with a projected profit of $333,000.
Part of the reason this for the net revenue being so low is that the entrepreneurs make each Pop It Pal at home and costs $8.32 per unit to manufacture. The entrepreneurs stated that they are making a large order (30,000 units) with a manufacturer to bring the cost down to $5 a unit. They claim the costs remain high even at volume because of the silicon material the Pop It Pal is made from. They are also doing this to meet demand as they have been contacted by sellers in the United Kingdom and Germany about selling the product there but do not have the volume to meet this demand.
The Pop It Pal can be yours for just $19.99 per unit.
A reasonable reader might ask, how does one find out about this? According to the entrepreneurs, they have made a series of videos demonstrating the product that have gone viral among the pimple popping crowd. They claim they had 30 million videos in three weeks of their videos though that has since trailed off to 50,000 views a month now.
This deal aired on Episode 10.08.
Making A Deal
Though Mr. Wonderful might seem like the last person who would be interested in a "pimple popping simulator", he actually jumped at the idea, though in the most Kevin way possible.
On hearing that 44% of users bought the upsell of the puss refill tubes on checkout, Kevin made his deal contingent on bring to market different colors of puss to put into the Pop It Pal, including green and red for reasons best not gone into. Additionally, he structured his deal as a royalty with a little bit of equity.
Specifying that he would give the entrepreneurs their requested $250,000 in exchange for 5%, he also said that he wanted a $1.50 royalty on every unit sold until he had made $750,000 at which time the royalty would expire.
Because of the way the Stats Shark values deals, this actually added $2,500,000 to the value of the company and the entrepreneurs jumped at the opportunity to work with Kevin, bringing him on board as an investor.