The Eggmazing Egg Decorator
When the main product a company makes is intended to decorate eggs, expect a lot of egg puns throughout the course of the pitch because this one had all of them. That's because The Eggmazing Egg Decorator, from Amarillo, TX, is there to... well... decorate eggs.
Cleaner, and supposedly more "fun" than the traditional dye method of coloring eggs, The Eggmazing Egg Decorator essentially spins an egg in a circle like a laythe. Then, using a colored marker, someone can draw designs onto the egg as it spins. The entrepreneur behind this "innovation" was inspired to create is in 2015 after seeing all the "mess" created by dyes and then built a prototype.
The initial run of 10,000 units sold out, representing $150,000 in sales. They cost $8.28 per unit to manufacture and retailed for $19.99. After discovering that retailers were selling them for more (Amazon, for instance, had it listed as high as $59) The Eggmazing Egg Decorator raised its retail price to $24.99.
The company has been able to drive down costs. The product now costs just $4.71 per unit, landed cost. This enables them to sell it wholesale for $12.50 per unit. Better yet, they do not accept returns, so every sale is final.
The Eggmazing Egg Decorator entrepreneur says that the company has a PO for $1,200,000 but for two products, half of it is for The Eggmazing Egg Decorator while the other half is for a new product, The Ornament Decorator that retails for $30.
Making A Deal
This being a device that has to be demoed, it makes sense that Lori would scoop this up. Unsually, for Lori, she put a royalty on he deal, asking for $2 per unit sold until it earned back her $350,000 investment. However, half of that royalty Lori promised to give to charity.
Also, she asked for 10% equity in the business instead of the 7% originally offered. This resulted in a bite of $1,500,000 from the original value. If only there were a way to tell if this was worth it...
Updates
In Episode 10.18, we were treated to an update on the status of The Eggmazing Egg Decorator. It turns out that the original order that they sold out of and made $150,000 of sales on represented the entirety of their sales until the deal was made. In the year since, the company has earned $12,000,000 in sales and has been able to give $50,000 to the Make-A-Wish Foundation.
Not too shabby for a device that spins an egg in a circle.