Tired of tossing and turning? What if your pillows were designed just for you? Pluto is a pillow company that creates sleep solutions (pillows) tailored to individuals’ preferences. It falls within the Sleep Products industry. It offers 35 possible variations of pillow designs to choose from. The company was founded in 2018 by Kevin Li and Susana Saeliu.
Pluto Pillow came into existence when Susana faced this issue herself. One morning, she woke up with a sore neck. She searched the market for a pillow that suited her best, but she couldn’t find one. That is when she decided to create it herself.
The brand’s mission is to give everyone a good night’s sleep they deserve. A major milestone for Pluto came in 2023 when CNN named it the “Best Overall Pillow for 2023.”
Quick Facts About Pluto
Below is a snapshot of Pluto Pillow.
| Aspect | Details |
| Business Name | Pluto Pillow |
| Founders | Kevin Li and Susana Saeliu |
| Product / USP | Customizable pillows that are designed based on user preferences using a patented algorithm |
| Shark Tank Episode | Season 12 Episode 24 |
| Deal Status | No Deal |
| Revenue | $3 million (as of July 2023) |
| Current Status | Active |
What Makes Pluto Pillow Special?
Pluto operates in the sleep products industry. The distinct feature of its flagship product is the customizable design that caters to individual choices.
This foundational product, the Pluto Pillow, is what the company began with. They have expanded their line of products to more options, like The Puff, which offers ultra-soft comfort. Then there is The Pod, their travel pillow, which provides comfortable support during your journey.
One of their unique features is the patented algorithm, which guides customers through a series of questions that compile to create the perfect pillow for their comfort. They combine a high-grade CertiPUR-US foam core with a plush outer pillow to give the best experience ever. They even offer personalized features like cooling gel fibre for people who tend to overheat while sleeping.
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How It Works: From Quiz to Delivery
All the steps required for you to take in order to get a personalized Pluto Pillow are:
- Take the Sleep Quiz: First, you answer questions on Pluto Pillow’s website. The quiz asks about your body size, how you sleep, your mattress, and what you like in a pillow.
- Personalized Pillow Profile is Created: Your answers create a special profile using Pluto’s system. This system chooses the right materials and size just for you.
- Pillow Is Hand-Assembled: Your custom pillow is then made by hand. It uses both firm foam inside and soft layers outside, made for your sleep needs.
- Quality Check: Before it’s sent, the pillow is checked to make sure it’s perfect. This ensures it meets Pluto’s standards for comfort and how well it works.
- Shipping & Delivery: The pillow is shipped right to your home. In the U.S., this usually takes 7–10 business days. The packaging is simple and good for the environment.
Pluto Pillow – Overcoming Early Challenges
Even with a quality product and a good online store, Pluto experienced a period of very low sales. In over three weeks, they could only make a single sale. This indicates that potential customers were not aware of their existence. Their PR strategies were lagging, and they also needed better marketing strategies.
The Sleep Industry Boom & Pluto Pillow’s Position
The company caters to anyone who seeks a comfortable sleep and those who struggle to fall asleep easily because of their posture or sleep habits. There is no age-defined target audience group for the product. The global sleep product market has been increasing over time. These days, people are becoming a lot more aware of the importance of good sleep, and with their initiatives to improve their sleep quality, the market is growing.
The Pluto Pillow fits well within the sleep aid market as it addresses the long-standing concern of its customers who feel that no pillow suits them. Pluto’s customizable pillow allows customers to order a pillow created according to their sleep preferences and body metrics.
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Can Pluto Pillow Scale? Growth & Expansion Plans
Pluto leverages e-commerce platforms and digital marketing strategies. The company does not have to deal with the challenges of maintaining large inventories when each pillow is customized based on customer preferences.
The business supply chain is partially vertically integrated, meaning the company controls critical aspects of production but collaborates with third-party manufacturers for scalability. It continuously improves as it gets real-time consumer feedback.
Currently, Pluto is focusing only on the U.S. market, but there is significant potential for global growth. In terms of future scaling, it can expand the line of sleep aid products. Pluto can also update existing features with AI-driven sleep analysis. The company can partner with wellness retreats, hotels, or luxury travel brands to grow its reach.
How Pluto Pillow Sells, Grows, and Plans for the Future
As the company focuses on running as a direct-to-consumer (DTC) e-commerce business, there is no middleman involved. They don’t distribute through large retailers either. The primary sales are done through the company’s official website.
The cost of the Queen Pillow is $95, and the King Pillow is $115. It takes $25-$30 to manufacture one unit. The shipping cost is $18 per unit, and the net profit is $47-$52.
Susana had existing connections with large pillow industry suppliers, which she used to source premium materials for her business. Therefore, they have reliable and high-quality manufacturing partners.
The media also helped influence public opinion and awareness. When they were featured on major outlets like CNN and Shark Tank, they gained a lot of recognition.
Pluto could expand its reach by partnering with retail stores. They could take products to the shelves of major chains like Target, Walmart, or Specialty mattress stores. Pop-up stores work great for promoting any growing business. Platforms like Amazon can help them reach international customers.
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Who Funds Pluto Pillow and How the Money Is Spent
If we dig into the funding history and financial structure of the business, we find some interesting facts. The business was initially self-funded, with the founders investing their own capital as seed money. The company later secured funding from private investors. Pluto has raised $150K from 500 global investors.
The funds were used to scale their production process. Since their products are made-to-order, this can slow down fulfillment. They also diversified their product range slightly, which would have also taken some portion of the funds.
Pluto Pillow Revenue, Profitability & Financial Health
Pluto has been performing well financially. Their revenue has grown steadily, which proves that they are attracting more and more interested customers. In 2018, they made $197,000 in sales. In the following year, they made $473,000, and in 2020, they reached $490,000. This data shows a clear upward trend.
By July 2023, Pluto had reached an impressive $3 million in revenue. The company has a 40% year-on-year growth rate.
Pluto is making consistent money, but it costs them a lot to make and ship their products, so they need to be really careful about managing their money. Today, the net worth of the company is $13 million USD.
Pluto is currently generating very thin profit margins. Most of the money earned is reinvested in R&D.
Competition and Barriers to Entry in the Pillow Market
Since Pluto operates in the sleep product industry, it faces large competition from competitors, as it is a highly competitive industry. There are other companies that focus on custom-made or performance-based pillows, so it gets challenging to stand out from the crowd. Pluto faces direct competition from:
| Feature | Pluto Pillow | LAYR Customizable Pillow (Luxome) | Honeydew Sleep |
| Customization Method | Algorithm-based selection of materials & dimensions based on a detailed quiz. | The pillow has different soft layers inside (like squishy foam) that you can take out or put in to make it feel right. | These pillows are made for how you sleep (on your side, back, etc.) and your size. |
| User Interaction | Primarily through the online website. | You change the pillow yourself by moving the layers inside. | You can often add or take out some of the soft stuff inside for manual fill adjustment. |
| Personalization Focus | Personalised internal construction and dimensions. | User-controlled firmness and loft through layering. | Provides ergonomic support tailored to your sleeping position. |
Indirect competitions: Even though Tempur-Pedic, MyPillow, and IKEA don’t make pillows exactly like Pluto, they still compete for customers. Tempur-Pedic sells comfy memory foam pillows, MyPillow has pillows you can adjust a little, and IKEA offers cheap pillows in lots of styles. So, even though they don’t do custom fits, they can take customers away from Pluto by offering other sleep comfort options.
Pluto’s Competitive Edge: What Sets It Apart?
Pluto’s patent protection makes it harder for new competitors to copy their process. They have also built a reliable customer base by now. A comparative table is given below:
| Feature | Pluto Pillow | Traditional Pillows |
| Customization | Fully customizable based on your sleep habits and body type | One-size-fits-all or basic options like soft/medium/firm |
| Materials | CertiPUR-US certified foam core + plush outer layer | May include cotton, down, polyester, or memory foam |
| Support | Offers tailored support and comfort for the neck and spine | May or may not provide adequate support |
| Durability | High-quality materials designed for long-term use | Often loses shape or firmness over time |
| Trial Period | 100-night risk-free trial | Usually no, or in some cases, a limited trial period |
| Warranty | 1-year warranty on material defects | Typically varies |
| Design Process | Online quiz to personalize the pillow | Choose from standard options |
| Sleep Position Adaptability | Tailored to back, side, stomach, or combination sleepers | Might not accommodate all sleep styles |
| Price | Higher as compared to traditional pillows | Wide range, often cheaper |
Who Should Try This Pillow
Pluto Pillow can be a great fit for you:
- If You Can’t Find the Right Pillow in Stores: Pluto Pillow could be perfect. It makes a pillow just for you, so you don’t have to guess which one to buy.
- If You Sleep on Your Back, Side, or Both: The quiz makes a pillow that fits how you sleep. So, it’s likely a good choice for most people.
- If Your Neck or Shoulders Hurt: This pillow is made to support your body in the right places. This might help with small aches caused by a bad pillow.
- If You Like Tech and Data: If you like things made using smart computer systems and information, you’ll probably like how this pillow is designed.
- If You Want to Give a Great Sleep Gift: This is a thoughtful present for someone who cares about sleep. It’s personal and something they can use every night.
Building the Pluto Pillow Brand Through Smart Marketing
The main marketing channel of Pluto is its website. They rely on a direct-to-customer sales model. They are also present on platforms like Amazon. This helps them reach Amazon’s vast audience.
Pluto Pillow generally receives positive online reviews, with comfort and customization frequently praised. Minor drawbacks mentioned include price and an initial adjustment period. Some pros and cons based on customer reviews are as follows:
| Pros | Cons |
| Personalized to user preferences | May feel too firm or too soft for some initially |
| High-quality materials and construction | Higher price point compared to standard pillows |
| Improves sleep quality for many users | Adjustment period needed for optimal comfort |
| Good neck and head support | Limited return/exchange flexibility |
| Custom quiz makes the selection process easy | Not suitable for all sleeping positions (per some users) |
Pluto has a strong Instagram presence, and it promotes its product among many different groups of customers. They even appeared on ABC7 for their product once. Growing sales and netizens’ interaction on their social media posts give strong proof of customer engagement.
They are regular at posting on social media like Instagram, where they currently have 22.7K followers. The company actively creates promotional posts and features their products. They collaborate with famous blue-tick Instagram users like Mikhaila “Coco” Rocha, a Canadian model. Their hashtags like #plutopillow and #plutopuff help boost brand visibility and engagement among users.
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Operations: Pluto Pillow’s Manufacturing & Team
The Pluto team is rather small. There are 8 members as of now, each with different responsibilities. The co-founders are Kevin Li and Susana Saeliu. Their manufacturing process is intricate and uses personalized data for each customer. The material is supplied from undisclosed sources, and the information is not disclosed openly. However, according to what co-founder Susana shared on television, it is clear that they had ties with the suppliers already.
Pluto makes pillows only when ordered, so they need a good system to store and ship them quickly, probably using other companies to help. They also focus a lot on customer service, helping people pick the right pillow. They use social media and their website to talk to customers and keep them happy. This helps them earn a few returns and have a good reputation.
Pluto makes sure their products are top-notch by checking quality at every step, using good materials, tailoring items to what customers want, and always improving based on feedback.
Pluto Pillow’s Growth Strategy and Future Expansion
Pluto’s strong growth comes from direct sales, personalized products, and effective marketing. They innovate with new pillow lines, using customer data for better comfort. Future growth could involve expanding into Europe and Asia, adding retail or online sales channels, and partnering with related brands. Emphasizing sustainable materials would also boost their market appeal.
Keeping Track of Success and Stacking Up the Awards
Pluto has a good record when it comes to recognition. They have won many awards for their super comfortable pillows. The awards they received are the Tried and Tested and Forbes’ 2022 Best Customizable Pillow.
As for their media appearance, they came on Shark Tank Season 12 to seek investment and mentorship, but no deal was finalized. They appeared on outlets like Living Cozy, where they discussed the product and the idea behind it. The company also made its footprint on CNN.
Pluto has received great reviews from customers on their website and the Amazon platform. They also have a good following on social media. They feature user-generated content of their product that shows their customers are happy with their pillows.
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The Road Ahead for Pluto Pillow
Pluto aims to sell personalized pillows worldwide. The future challenge for them could be facing issues with making enough and keeping prices low. Some international rules might also hinder their progress. But as long as people want custom and eco-friendly sleep products, Pluto has a chance to thrive.
FAQs
1. Are Pluto pillows still in business?
Yes, Pluto Pillow is still in business. They are also active online and are still going strong in the marketing game.
2. How is Pluto Pillow doing after Shark Tank?
Even though they could not secure a deal on Shark Tank, they have been doing good. Pluto Pillow saw a huge sales surge after their 2021 episode. They’ve expanded their product line beyond custom pillows and received numerous positive reviews and awards. The company is still operating successfully with an increased valuation.
3. How much does a custom Pluto Pillow cost?
A custom Pluto Pillow costs about $135 (standard) or $165 (king). It includes a 125-night trial and 1-year warranty.
