Brad Boskovic and Charlie Williams are two entrepreneurs who are determined to take gift giving to the next level. DigiWrap, a company focused on making personalized wrapping tissue and bags will take a plunge in the Shark Tank, asking for $150,000 for 10% of the company. Will the sharks accept this gift?
When was the last time you gave someone a gift? You take a boring generic bag, you wrap your gift in a plain piece of tissue paper, you stuff it in the bag and you’re done, right? Wrong! In a world that’s gone completely digital and personalized in almost every manageable way it is about time gift packaging is caught up. Well, now it has thanks to Charlie Williams and Brad Boskovic, the creators of DigiWrap.
DigiWrap is the only company in the world taking gift bags and tissue paper to where it‘s never been before due to its unique digital processes which allow them to customize gift bags and tissue paper on demand. With DigiWrap the whole process is done in a matter of days! On top of that, the company is the only one who can manufacture personalized gift bags and paper short run, meaning you can order a single personalized bag. DigiWrap takes cutting edge printing technology and makes it viable for a single order for consumers.
The company currently has two lines business: their own online site where they focus currently on just the tissue paper, and they also have a partnership with a large online personalized retail, Zazzle.
But what is so special about personalized paper? Everyone can do it! Well… think again! DigiWrap has their own patent on the personalizable tissue paper business.
Although they have only been in business for two years, last year they sold 350,000 units and this year they are on track for 500,000 for tissue and bags.
The retail price is on average $10 per bag, and $1 per tissue paper, with a production cost of $0.50 per tissue paper, although they did not specify the cost of production per bag.
The main concern the sharks had was regarding the profitability of the company since they are selling to consumers directly, rather than selling to companies or selling through another big chain.
Robert also mentioned that if they get a customer and the customer becomes too big, the customer’s needs won’t be met by the company, and therefore the company has to continuously keep finding new customers. On top of that, Robert could not understand how could the company turn a one-on-one model into a big profit, thus backing out.
Next up, it was Lori’s turn to turn down the deal. She took a different approach, saying that she did not think people would spend a lot of money on gift wrap, as it would eventually end up in the trash.
Barbara didn’t seem interested at all and didn’t think there was a big market for personalized gift wrap, quickly getting herself out of the chance to make a deal
Mark’s perspective on the company was more profit-oriented. Even if the company would grow 5 times, he would still not get his $150,000 back in a timely manner. Seeing this as a non-profitable deal, he decided not to make an offer.
The only shark left was Kevin O’Leary…and he was ready to get wrapped up in this business! He offered the two entrepreneurs an offer of $150,000 for 50% of the company. The negotiation went back and forward for quite some time, as the two entrepreneurs were unwilling to give up more than 40% of the company. Until they remembered something: royalties! This brought Kevin back into the deal and, after a long renegotiation the deal was finally made: $150,000 for 20% of the company plus royalties of $0.05 per tissue and $0.10 per bag until Kevin gets $450,000 back.
Once again, it’s still too early to get some more news about DigiWrap, but we are excited to find out if Kevin has reached his $450,000 goal yet and to see how the company is doing under Mr. Wonderful’s guidance. If you want to get your own personalized gift bag or tissue paper, make sure to check out their website digiwrapit.com
Original Air Date: December 9, 2016
Entrepreneurs: Charlie Williams and Brad Boskovic
Proposal: $150,000 for 10% stake
Investor: Kevin O’Leary
Final Deal: $150,000 for 20% of the company plus royalties of $0.05 per tissue and $0.10 per bag until Kevin gets $450,000 back.
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