S06.E15: Lumio, Napwell, TurboPup, Bello Verde

[cooksdelight]

Did anyone ask the Lumino guy about his patent(s)? I don't remember that coming up in conversation, but if he doesn't have one I couldn't see them jumping all over it the way they did. I can see having that for camping when I have to make my way over to the restroom that's invariably far, far away from my campsite.

Suit guy gave me a headache. Literally, I had to turn the volume off when he was yelling.

The first thing I thought about with the dog treats is.....does it make his poop smell funky? OK, a pet owner will know what I'm talking about if you introduce a very different food into their system. I just brought home a new cat and I've got no idea what he ate previous to coming to live with me, but whatever it was.....he's not getting it again. Ever. Sometimes those food items that are super-packed with protein or whatever will do strange things to their digestion. My dog has his usual food when we go camping.

[Amarsir]

I thought the Lumio guy had an average product that was really well presented.  A folding light didn't impress me, but he did.  However, Kevin's $6+ million valuation put him at 20x free cash flow, which seems completely out of character for him.  Even granting the royalty structure, that's still a high value. Robert's equity-only deal was a $3.5 million value, and I'll remind you the Lumio is making $300k profit on $2m sales.

 

So they were clearly bidding on this being a household item that will sell for years. Sharks don't go in on a 10-year payback period.

Edited January 20, 2015 by Amarsir

[Kel Varnsen]

I Ioved the lumio, too. I was really digging the way the magnets could be displayed on that armature. Think of that above a dining table. Just turn the armature horizontally.

The magnet thing didn't really impress me that much, mostly because I am not sure what I would stick it too. I mean it is not like I have a ton of metal structure on my house that I could stick it to. Other than the fridge what would people have in their house that they could attach it to? Unless you had some kind of purpose built structure made of metal for it. 

[Guest]

I don't know what I'd do with a Lumio, either.  Every lighting situation I can think of is handled by a corded (full time) light or a flashlight, or my cell phone flash.  I guess as a pretty table lamp that you leave plugged in, and maybe bring outside for special events?  

[cooksdelight]

Wedding planners will jump all over Lumio, if they haven't already. They would be great outdoor lighting, and a nice gift people could take home.

[Guest]

A $200 party favor?  Sign me up!  Heh.  It looked really bright.  I wonder if outdoors for ambient eating lighting you'd have to have it half shut, then it wouldn't light half a round table?  Or maybe it has a dimmer setting.  

[basiltherat]

Lumio would mostly be something to use to impress your guests at parties, to show how cook you are.  It does make you smile, as it did Robert.  They sell it now at museum gift shops, and it is sort of an art piece with a little bit of use.  However, the real prize is the guy behind it..  Lots of times, sharks will invest in a product because the person is a go-getter.  With Lumio, you get both the unique product and a really talented partner in the guy.

[Kromm]

Other than that, really loved the Lumio, and Robert was exactly the right partner for him.  

I wish I was more convinced of that.  I mean they've had one or two Robert follow-up stories, but overall we don't hear much about what becomes of his deals.

 

The money was best with Robert's deal, but I think Lumio needs a crapload of help to reach the level it could really do.  Not convinced Robert has the strings to pull to get that done.

I don't know what I'd do with a Lumio, either.  Every lighting situation I can think of is handled by a corded (full time) light or a flashlight, or my cell phone flash.  I guess as a pretty table lamp that you leave plugged in, and maybe bring outside for special events?  

I'd go with the selling point of it being the world's most interesting book light.  While that sounds dismissive... it's not.  There's a huge market there, even with eReaders around (most which aren't self-illuminated, even still.

 

I'd also take the basic Lumio tech and make a Camp light version.  

 

I could even see something like it being used for Event lighting.  Like as a centerpiece at nighttime weddings or any event with multiple tables.

During the ST Update, they showed how angry Lori and Barbara got when all the men went out of the deal for the women's accessories company. Barbara even complained how the men ALWAYS do that when a female-centric product is shown.

Cut to half an hour later, when the custom suit guy was pitching his company. Lori's comment: 'Well, this is a men's clothing company, which I know nothing about. I'm out." LOL

True.  Then again I'm suspicious of the update with Lori and Barbara, because it felt really "managed" to me.  I always get the sense the two of them can't stand each other, and that update almost seemed designed (and orchestrated) to make it seem they just need the right deal to be super-businesswomen buddies.  Yeah.  Riiiiight.

[Amarsir]

Everyone was shocked when Kevin said he doubled the valuation (and they had a right to be shocked), but Kevin didn't actually increase the offer at all - he had the worst valuation.  IIRC, the guy wanted $250,000 for 8% - a valuation of $3,125,000.  Kevin said he was increasing the valuation to 6 million, supposedly because he was paying $250,000 and getting 4%.  However, Kevin's offer was that he puts in $250,000, gets paid $7 ($9?) per unit until he is paid back $500,000, and then owns 4% of the company.   Kevin would end up getting paid $250,000 and still owns 4% - that is a negative valuation.

You can't really value it like that. Even a pure equity offer will take money out and still owe their X%.  You're right that we can't simply say it's a $6.25m valuation without regard to the royalty Kevin gets. But it's not negative value either.

[starri]

I wish I was more convinced of that.  I mean they've had one or two Robert follow-up stories, but overall we don't hear much about what becomes of his deals.

 

The money was best with Robert's deal, but I think Lumio needs a crapload of help to reach the level it could really do.  Not convinced Robert has the strings to pull to get that done.

I really don't think the Lumio guy is looking to immediately jump into Target or Walmart.  After mentioning his website and retailing at various museums, he mentioned that his next aim is to get into some place like Design Within Reach, which is (pardon the pun) way out of reach even of middle-class consumers.  Honestly, a $200 lamp at DWR would be a bargain.  His bigger problem seemed to be inventory, which the money will solve.

[candall]

I thought it was an interesting product. It seemed like the kind of thing that wouldn't sell a crazy amount, but instead have a crazy loyal following of dog owners who do a lot of camping or travelling or whatever and want something simple they can pack as a food for their dog. I mean a bunch of those would fit in a suitcase or backpack a lot more efficiently than a bag of kibble would.

 

Oh my gosh, rescuers would erect a statue in her honor. 

 

I've had Roger Rabbit tires driving toward some natural disaster with 500 pounds of kibble and 50 gallons of water.  Besides emergencies and the camping scenario she plugged, a lightweight granola bar-style food option would be perfect for travel/transports.  (Eliminating the need for carrying and cleaning food bowls would be a huge bonus consideration.)

 

In fact, anywhere there are multi-pups, a compact "complete meal" would be great, even just to have as emergency backup rations if they were too expensive to feed exclusively.

Edited January 21, 2015 by candall

[Kel Varnsen]

Oh my gosh, rescuers would erect a statue in her honor. 

 

I've had Roger Rabbit tires driving toward some natural disaster with 500 pounds of kibble and 50 gallons of water.  Besides emergencies and the camping scenario she plugged, a lightweight granola bar-style food option would be perfect for travel/transports.

 

In fact, anywhere there are multi-pups, a compact "complete meal" would be great, even just to have as a backup if they were too expensive to feed exclusively.

Your totally right. I could also see a situation where these are marketed to people who have pets and live in disaster prone areas. Like how you are supposed to have a kit with non-perishable food and a bunch of water and a radio and a first aid kit. Convince anyone who has one of those to throw a couple of these bars in for their dog as well, an you would sell a ton. Sure you wouldn't have these people buying and re-buying all the time, but you could sell a crazy amount of them regardless.

[marny]

As soon as Lori mentioned wanting to make the Lumio lights in different colors, I knew he wouldn't pick her.  I know she's a good businesswoman, and great at hawking her QVC wares, but she's just so tacky.

[90PercentGravity]

Lumio would not work as a book light. A book light needs to be above your reading material. The only way you could use that lumio is if you were holding it, which is not going to work at all.

 

I think once the novelty of opening it wore off, you'd just be stuck with an expensive paper lantern.

[cooksdelight]

As soon as Lori mentioned wanting to make the Lumio lights in different colors, I knew he wouldn't pick her.  I know she's a good businesswoman, and great at hawking her QVC wares, but she's just so tacky.

She'd want them in the shape of ice cream cones in pastel colors, hanging from the trees.

[Kel Varnsen]

Lumio would not work as a book light. A book light needs to be above your reading material. The only way you could use that lumio is if you were holding it, which is not going to work at all.

 

I think once the novelty of opening it wore off, you'd just be stuck with an expensive paper lantern.

You could use the magnets to hang it from the random pieces of metal hanging from your walls and ceiling. The more I think about this thing, the more I agree with others that it would be an expensive (maybe kind of handy) gadget you would show off to people when they come over. Because really I can't think of too many lights in my house it would really replace. Which means it would be an extra light I just don't need. Then again I am probably not the target market.

[needschocolate]

The lumio looked cool, but I thought they were too bright.  I would find it distracting and/or blinding.

[AyeshaTheGreat]

I am happy to see the discussion about Lumio.  When he was presenting and everyone was going crazy about it, I was sure that I had missed something.  I am not the target audience but I don't see the problem it is solving either.  I hope to see a true update (probably outside of Shark Tank) about this product because I do not see its usefulness yet.  Outside of it looking cool, I am not sure why else someone would want or need it.

[NikSac]

The first thing I thought about with the dog treats is.....does it make his poop smell funky? OK, a pet owner will know what I'm talking about if you introduce a very different food into their system. I just brought home a new cat and I've got no idea what he ate previous to coming to live with me, but whatever it was.....he's not getting it again. Ever. Sometimes those food items that are super-packed with protein or whatever will do strange things to their digestion. My dog has his usual food when we go camping.

 

I was thinking about this too!  My first thought was it would be convenient for a road trip or camping and my very immediate second thought was "OMG I would NOT want to be in a tent or an enclosed vehicle with a dog adjusting to a new food!"  They claim it's interchangeable with regular food, but I have my doubts. Plus, I'm not sure if I'd want my dog having extra energy on those particular occasions - camping maybe, road trip definitely not. I can see a market for something like it, I'm just not quite sure exactly what. It seems too expensive for a complete replacement for other food, and this is coming from someone who spends quite a bit on my dogs' food. Even for my current fairly small dog this would cost almost $15/day if that's all he ate - larger dogs you'd be looking at $30+ per day.  Maybe it would be better marketed as an occasional treat, or a nutrition supplement for ill dogs (for example, when my girl had cancer I'd have bought this for her in a heartbeat if I thought she'd eat it and it would help her feel better... even if it made her stinky). I hope they do well, but I'll be curious to see the reviews from real life users.

[NikSac]

Your totally right. I could also see a situation where these are marketed to people who have pets and live in disaster prone areas. Like how you are supposed to have a kit with non-perishable food and a bunch of water and a radio and a first aid kit. Convince anyone who has one of those to throw a couple of these bars in for their dog as well, an you would sell a ton. Sure you wouldn't have these people buying and re-buying all the time, but you could sell a crazy amount of them regardless.

 

I see I was behind on the thread, sorry!  This was also my other thought, that putting them in emergency kits would be a great marketing angle. They could probably even sell them in bulkto those companies who pre-package emergency kits. Even small ones designed for cars, for example - have a canine version or add on that had however-many days' worth of these bars.

[Guest]

I was thinking about this too!  My first thought was it would be convenient for a road trip or camping and my very immediate second thought was "OMG I would NOT want to be in a tent or an enclosed vehicle with a dog adjusting to a new food!"  They claim it's interchangeable with regular food, but I have my doubts. Plus, I'm not sure if I'd want my dog having extra energy on those particular occasions - camping maybe, road trip definitely not. I can see a market for something like it, I'm just not quite sure exactly what. It seems too expensive for a complete replacement for other food, and this is coming from someone who spends quite a bit on my dogs' food. Even for my current fairly small dog this would cost almost $15/day if that's all he ate - larger dogs you'd be looking at $30+ per day.  Maybe it would be better marketed as an occasional treat, or a nutrition supplement for ill dogs (for example, when my girl had cancer I'd have bought this for her in a heartbeat if I thought she'd eat it and it would help her feel better... even if it made her stinky). I hope they do well, but I'll be curious to see the reviews from real life users.

I agree.  And with two large dogs, it'd be pretty easy to just toss my roller bin of kibble (or a bag of it) in the car in emergencies and cost prohibitive to feed them fancy bars.  I can camp with a ziploc of kibble.  And this is from someone who hand-makes her own specialty ferret food.  In an emergency, dogs can eat people food, too.  

 

But pet products sell.  And specialty, outdoorsy pet products... probably a safe bet.  I wouldn't buy it but I bet some would.