Highlights
- Sandy Hyun and Roman Pietrs introduce Mr. Poncho, a handmade cell phone carrying case with a unique cord management feature.
- They seek $50,000 for 25% equity but face skepticism from the Sharks due to the lack of a patent on a key component and insufficient market research.
- The Sharks appreciate the creativity but are concerned about the product’s scalability and market appeal, leading them to pass on the investment.
Overview
| Category | Details |
|---|---|
| Name | Mr. Poncho |
| Founders | Sandy Hyun, Roman Pietrs |
| Industry | Accessories, Consumer Products |
| Product | Cell phone carrying case with cord management |
| Funding | Sought $50,000 for 25% equity on Shark Tank |
| Investment Ask | $50,000 |
| Equity Offered | 25% |
| Valuation | $200,000 |
Sandy Hyun and Roman Pietrs bring fun to episode 111 in the form of their cell phone carrying case that they call Mr. Poncho. The easy-going pair came up with the idea and took it to a craft fair. They’ve been making a modest profit selling the homemade Mr. Poncho cases, but they feel ready to take their product to the next level and begin mass production so that they can increase sales.
Can Hyun and Pietrs swim with the Sharks, or will these little fish be swallowed whole?
Mr. Poncho Shark Tank Recap
The pair come in to the Shark Tank, hoping to acquire $50,000 in return for a 25% stake in Mr. Poncho. They attempt to tame the savage Sharks with a musical introduction. They sing the name of their product, leaving the Sharks looking mildly amused and confused. Robert Herjavec complements Pietrs on his singing skill. The couple quickly get down to business, demonstrating their product. The simple sleeve cover is enhanced with a rubber cup. The headphone cord can be wound around the center of the cup, and the edges folded back, to keep the cord from unraveling. The design protects the headphones and prevents tangling.
The Sharks want a closer look, so Hyun hands out samples for them to examine. Kevin O’Leary is intrigued. He wants to know if the entrepreneurs have a patent on their product. Pietrs explains that they have a patent pending on the unit, but do not own the patent on the cup – a crucial part of the Mr. Poncho cases. Undeterred, the Sharks press forward to ask about sales. While the couple have enjoyed reasonable success, selling over 5,000 units, the Sharks want meatier information. Kevin Harrington asks how much the Mr. Poncho costs to make, and how much they retail for. With the cost of materials at a modest $3, and the sales price of $18, it’s clear that the couple have priced their product to sell and turn a profit.
Who’s In?
Daymond John wants to know if they’ve researched manufacturers for mass production. He wants to know the cost of the Mr. Poncho as produced in bulk. Huyn guesses that the cost of manufacture would be “under $1”, based on the cost of the materials, but the couple hasn’t done their homework. Robert Herjavec explains that the problem he has with the product is that his kids “wouldn’t buy this.” The lack of a patent on the cup pushes him to say he’s out. Barbara Corcoran is out for the same reason. Two Sharks have declined to offer deals. Only three remain.
Kevin O’Leary recommends that the couple shouldn’t “quit your day jobs”. He’s out. Daymond John calls the business “premature.” He points out several features that the product lacks, and goes out. Kevin Harrington believes that the couple have “a great home business,” but he doesn’t believe there’s a business for him to invest in. The final Shark is out, and the couple leaves the Shark Tank without a deal.
Mr. Poncho Shark Tank Update
The couple went away from the Shark Tank with a new vision of their business, and a better understanding of what’s required to create a company. They kept selling their Mr. Poncho product through direct sales on sites like Esty, but their dream of mass production was limited by their lack of a proprietary patent on the main component of their Mr. Poncho cases – the rubber cup. Mr. Poncho is no more, but Sandy sells her jewelry line on her website and in hundreds of retail stores including Anthropologie, Neiman Marcus, Nordstrom and many small, independent jewelers and shopkeepers. As of July, 2021, Sandy is earning about $1 million a year with her jewelry and Roman is a Creative Director at Global Popstar Design.
Company Information
Out of business.
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