ToyGaroo Entrepreneur Nikki Pope came up with a great idea which created the Netflix of toy rentals.
She pitched ToyGaroo to the investors on TV show Shark Tank and was able to walk away with a great deal. She’s taking her company to the next level with the new found success.
She came in asking for $100,000 for 10% of the company and walked out with a deal worth $200,000 for 35% of the company with Kevin O’Leary and Mark Cuban but not until O’Leary through Robert H under the bus and out of the deal.
O’Leary was hooked when he asked Nikki how much they would have to spend on inventory to do $1 million dollars and she replied a mere $64,000.00. That’s a pretty nice margin and creates a great opportunity.
So here’s how ToyGaroo works. Every two months parents get a new box of toys keeping the selection fresh. Kids love it because they get to play with something new and parents don’t have unused toys left in a toy box.
As of airing of the show, she had yet to have a toy damaged beyond repair, but should it happen, the parent would pay cost of the toy.
Nikki did a soft launch with ToyGaroo starting out with 500 customers who paid $42 per month. During the soft launch, over 1,000 potential customers expressed interest in the service.
While the idea of the monthly fee might sound expensive, Nikki noted that the average family spends $1,200 to $1,400 per year on toys.