Lori Greiner Sharing Insights On Shark Tank Season 16
Highlights
- Lori Greiner has been appearing as a Shark investor for more than ten years.
- She has been offering key advice for entrepreneurs throughout the seasons, with the latest one being in the Pepper Pong pitch.
- Lori advised Tom Filippini to take it slow and not rush his entrepreneurial venture.
Shark Tank’s vast audience can be attributed to the loyal fans of the judges on the show. Each of the Sharks brings their individual experience and offers valuable advice for entrepreneurs on the show. One such instance was in the Pepper Pong pitch, where Lori Greiner shared advice for its entrepreneur.
Lori Greiner has been a known face on the judges list of Shark Tank for more than ten years. In her many appearances on the show, Lori has poured money in a variety of businesses that have later emerged as million-dollar empires. An example of this is Scrub Daddy, which has become a great Shark Tank success.
Here, the focus will be limited to Lori’s golden advice for the Pepper Pong entrepreneur who appeared in the sixteenth season of Shark Tank. Below is a detailed description of the Pepper Pong pitch, why Lori shared her advice, and if she proposed a deal.
Pepper Pong Shark Tank Pitch: A Recap
A rising entrepreneur from Mile High City, Tom Filippini, made his way to the judges with Pepper Pong, a revamped version of the age-old Ping Pong game. Seeking $150K for 10% equity in the company, Tom stated that the game can be played on any flat surface, removing the need to have a table.
According to the entrepreneur, Pepper Pong has different varieties: low-bounce jalapeno, medium-bounce habanero, and ghost pepper. Additionally, he claimed that the product is ‘whisper-quiet’ and furniture-friendly.
To make the pitch engaging, Tom called upon Lori Greiner, Todd Graves, Daymond John, and Kevin O’Leary for a doubles round of Ping-Pong.
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Lori Greiner’s Concern For The Pepper Pong Entrepreneur
Once the presentation was over, the Shark inventors started asking questions related to the business figures. Lori Greiner inquired about the sales of Pepper Pong. Tom replied that having started less than a year ago, in 2023, the total sales of Pepper Pong were $260K. Out of it, $160K was made in the fall of 2023.
While the numbers were not too high, Tom tried to draw their attention by stating that the company was projecting sales between $600K and $800K in 2024. Plus, of the company’s 160 reviews, 100% were five-star ones.
Just when the panelists started getting interested, things started falling out for Pepper Pong when the founder was asked about the costs. While its landed costs are $20, the game is sold for more than $70. All of the Shark Tank judges felt that the margins were too low.
On answering further questions, Tom revealed that he was the only investor in Pepper Pong. He had paid a total amount of $500K into the company. Additionally, the entrepreneur said that he had made his own mold. Hearing this, Lori Greiner was hugely shocked. She thought it was a massive cost for the multi-cavity mold.
Tom had no justification for Lori’s concerns. He agreed that it was indeed expensive, and Pepper Pong had its own inventory. The company’s total inventory was slightly less than 10,000 units. Apart from these, the costs of customer acquisition were somewhere between $21 and $22.
The reason why Tom Filippini appeared on Shark Tank was to get the investors’ assistance with starting a second mold. Plus, he wanted to double the output production.
Lori Greiner’s Advice For Pepper Pong Entrepreneur
Lori Greiner was not convinced of Tom’s idea of starting a second mold at this point in the Pepper Pong business. This was because it would require him to spend about $100K. As the business was less than a year old and he had already poured in $500K, Lori felt this idea was not a good choice.
Additionally, the sales figures below $300K were not too high for Pepper Pong, and the customer acquisition costs were quite questionable.
Based on these reasons, Lori advised the Pepper Pong entrepreneur to ‘crawl, walk, and then run.’ This meant that Tom should first let and make everything stable for the first mold, including customer acquisition costs. Once that was done and the sales took off, he should then start thinking of a second mold.
Giving these reasons, Lori made her way out of the deal. Pepper Pong did bag an offer from guest investor Todd Graves, though (150K for 19% equity).
Conclusion
Lori Greiner’s crucial advice for Tom Filippini emphasized the importance of sound financial management and calculated growth in Pepper Pong’s infant stages. Her focus on stabilizing the company before expanding via a second mold demonstrated the value of the cautious nature of a successful startup.
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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