Ta-Ta Towels
A Los Angeles based company that has created a product aiming to solve the problem of boob sweat on "well endowed women." The product, the Ta-Ta Towel, is a towel that drapes over a woman's neck and holds a breast in each end with a cinch behind the neck to adjust lift. The original idea was to wear it after taking a shower to both dry a woman's breasts but also to allow heat to dissipate so as not to sweat when putting on a fresh shirt. However, according to the entrepreneur, some women have taken to wearing them outside too.
The product is terry cloth on one side and another soft fabric on the other and is reversible. The smallest size fits a woman with a "small-C" cup to the largest which fits a "big-H."
The company also has a second product designed specific for maternity uses but it was not described or shown how it is different than the original. Both products have design patents and trademarks.
The original product sells for $45 per item and the maternity version retails for $55. Both seem to cost $24 per item to make because they are manufactured in Los Angeles "by women for women." The product is only sold on the company's own website.
At some point the product went viral and sold $1,100,000 in twelve months. However, the entrepreneur stopped selling the product for an unspecified period of time in order to enforce the patents on businesses selling knock-offs.
Though only $188,000 has been sold to the year to date (June, presumably, given that a shark mentioned that it was six months into the year), the entrepreneur projects grossing $2,000,000 by the end of the year.
As of airing, the entrepreneur has 10,000 units on hand for $250,000 in potential profit.
This deal aired on Episode 10.02.
Making A Deal
The sharks were not fans of the numbers they were hearing. For one, they did not like the entrepreneur's reliance on going viral for a second time in order to move units. Secondly, Mark specifically, did not like that she would have to move her current inventory four times over in the next six months in order to meet her $2,000,000 year end projection.
They also were not fans of the entrepreneur having so much inventory on hand with the belief that the product would definitely go viral a second time. Kevin expressed doubt that the company was even worth the $200,000 investment itself.
Lori, however, believed there was something to the product but made an offer for 50% equity. The entrepreneur turned it down because a prior investor already owned 10% and a 50% deal with Lori would make her a minority stakeholder in the company. Instead, she countered with 40% and Lori accepted.
Despite the deal from Lori representing a bite of $1,500,000 off the value, the Ta-Ta Towel will no doubt succeed in a format like QVC and more than recoup the value.