Tom Filippini Pitches Pepper Pong On Shark Tank Season 16 Episode 6
Highlights
- Pepper Pong appears in the sixth episode of Shark Tank Season 16.
- Tom Filippini seeks $150K for 10% equity in the company.
- The Shark investors appreciate his clever presentation style but are apprehensive about his business goals.
Overview
| Category | Details |
| Name | Pepper Pong |
| Founder | Tom Filippini |
| Industry | Racket Sport |
| Product | Pepper Pong |
| Funding | $500K (self-funded) |
| Investment Ask | $150K |
| Equity Offered | 10% |
| Valuation | $1.5 million |
Tom Filippini, an aspiring entrepreneur from Mile High City, approaches the Shark investors with Pepper Pong. Initially, it seems he is fumbling during the Pepper Pong Shark Tank pitch. It is later clear that he has done it purposely to show that Ping Pong has become over two centuries old.
Tom presents ‘Ping Pong’ in the sixth episode to ‘spice things up.’ As a portable version of the classic Ping Pong game, it emerges as a refreshing version that is fun for all ages and can be up anywhere.
To explain further, the entrepreneur uses a video demo to show how Pepper Pong ditches the need for a dedicated table. Any flat surface, including the floor, works for it.
The specially designed fence in Tom’s game expands to fit any surface and sets up in seconds. Pepper Pong’s secret sauce is in the peppers – three unique balls designed to be adaptable to any surface. This makes the game easy to learn but difficult to master.
Low-bounce jalapeno is great for beginners and small tables. Medium bounce habanero is an all-around favorite for any table size and skill level. There is also a ‘ghost pepper’ for intense rallies on larger tables.
Tom adds that Pepper Pong is ‘whisper-quiet’ and furniture-friendly, which allows at-home moms to play ball in the house.
Pepper Pong Shark Tank: What Happened In Season 16
The entrepreneur appears with the Pepper Pong Shark Tank pitch, seeking $150K for 10% equity in his company. Once the presentation ends, the Sharks applaud Tom for his clever move at the beginning of the pitch. After this, the entrepreneur invites the Shark Tank investors for a round of Pepper Pong.
Two teams are formed for a doubles round. Lori Greiner and Guest Shark Todd Graves compete against Kevin O’Leary and Daymond John. Once the fun part ends, the investors begin with their questions.
Lori wants to know about the sales. Tom says he launched Pepper Pong less than a year ago. Since then, the company has made $260K in sales. In the fall of 2023, sales were $160K. Currently, they are only selling on their website to control the consumer experience.
Pepper Pong’s projected sales for 2024 are between $600K-$800K. Out of 160 reviews, 100% of Pepper Pong reviews have been five-star ones, which amazes the Sharks. Tom then lists down the flaws of Ping Pong, including the need to have a table. Plus, sometimes the paddles are broken, and the balls are cracked.
Kevin inquires about the costs. Landed costs are around $20, whereas the Pepper Pong game is sold for $70. The ‘little’ numbers fail to impress the judges. The entrepreneur responds by saying that the company has elasticity up to 89 without much detriment to sales or conversion rates.
When Todd asks about his background, Tom reveals that he used to be a successful businessman, but his alcoholism affected it. He became sober in 2016 with the help of his family and bounced back with his passion project, Pepper Pong.
Tom is the only investor in the company and has paid about $500K into it. He has made his own mold, which is why Lori thinks it was a big cost for his multi-cavity mold. The entrepreneur agrees, saying that it was expensive and that the company has its inventory. Total inventory is somewhat lower than 10,000 units.
Custom acquisition costs are around $21-$22. Kevin thinks he is giving away a big amount on customer acquisition for selling just one game. Tom disagrees, saying there are a lot of repurchases for gifting purposes.
Describing Pepper Pong as a ‘generation defining game,’ the entrepreneur states that it is patented for its foldable fence.
Tom is seeking the investors’ help for starting the second mold and doubling the output production.
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Did Shark Tank Invest In Pepper Pong?
Lori Greiner is the first one to exit the Pepper Pong Shark Tank deal. She thinks it will be a mistake to start a second mold worth $100K at this point in the business. Lori advises the entrepreneur to ‘crawl, walk, and then run.’ So, although Pepper Pong appears to be fun, she chooses not to invest.
Kevin O’Leary and Mark Cuban also do not make an offer.
Daymond John shows an interest in Pepper Pong in terms of its retail aspects and the founder’s backstory. This is because he went through a similar phase and did not have a drink in two years. His offer is $150K for 30% equity. The fellow Sharks are shocked at Daymond’s proposed valuation.
Hinting at Todd Graves, Kevin tells the ‘Toddster’s still in the deal.’ Todd agrees.
In order to convince Todd, the entrepreneur says that Pepper Pong could be a great pick as a customer entertainment vehicle at Raising Cane’s. Todd loves the business’ portability and reminisces about his similar, previous collaborations with Post Malone and a pickleball team.
Todd’s offer is $150K for 25% equity. Daymond reacts by saying, ‘Todd, you animal,’ which makes the fellow judges chuckle. Plus, he added that he is a ‘guest,’ so he should not ‘undercut’ him.
The entrepreneur wants to know how both the Sharks can help him. Reiterating his association with Post Malone, Todd claims to help him expand Pepper Pong for low acquisition cost through social media and his expert team.
After this, Tom asks Daymond about his vision for the retail aspects of Pepper Pong. Daymond asks him the same question. The entrepreneur then says that he is not looking much into retail at the moment. As a result, Daymond takes back his offer and opts out of the Pepper Pong Shark Tank deal.
Left with just one offer, Tom counters Todd’s offer with a 17.5% equity, who rejects it and revises his offer to $150K for 20% equity. The entrepreneur re-counters it with a 19% equity. Todd agrees and locks the Pepper Pong Shark Tank deal for $150K at 19% equity.
More products from this episode! Check out other businesses that participated alongside Pepper Pong.
