SoapSox is the creation of Ray Phillips, program director at a residential treatment facility. Ray modified a stuffed toy to hold soap to help a child feel comfortable taking a bath.
SoapSox Pitch in Season 6
SoapSox pitches that modified toy in Shark Tank Season 6. He brings a partner, Alvin Uy who joins Ray as his company co-founder. Alvin Uy worked in a creative agency for brands including Disney, Hasbro, and Mattel.
SoapSox ran a successful Kickstarter campaign before making their Shark Tank pitch. The program launched the next generation of wash clothes for kids.
Ray and Alvin have had SoapSox in the market for six months at the time of the pitch, and Nordstroms introduced SoapSox into their stores. They did $300,000 in the first six months.
SoapSox has utility and design patents, and retail them for $19.99, and cost $3.64 to manufacture. They project second-year sales at $2.4 million.
Entrepreneurs: Ray Phillips and Alvin UY
From: Eagle Rock, California
Ask: $260,000 for 10% equity
Companies in this episode: Heart Pup, Ninja Cards, DrumPants
Season: Season 6 Episode 603
Sharks: Mark Cuban, Daymond John, Kevin O'Leary, Lori Greiner, Robert Herjavec
First Aired: 10/03/2014
Deal: No Deal
What do the Shark Tank Investors say about SoapSox
Mark Cuban likes the fact they are killing it on margins, but this doesn't get him lathered up, so he is out.
Daymond John wants to be a part, but he can't give a $2.6 million valuation. He offers $260,000 for 33%. Ray counters at 15% for $350,000. Daymond stays firm on the 33%.
Kevin O'Leary believes their price is too high, and it should be $9.99. He feels they are not worth $2.6 million so he is out.
Lori Greiner wants to know if they can get their manufacturers to get the price down instead of going with Nordstroms because they have a hefty margin. They can get it down to around $2.60 with a half a million units. Lori thinks it is a smart product, and very clear. She is concerned that they are not going to get the patent. If they were at a lower price, they could blitz the market. She is out. Lori comes back in and offers $1 million to buy the company. They decline the offer.
Robert Herjavec believes they have proven a great concept, but they haven't proven his money wants to go there, he is afraid he will take a bath so, he is out.
SoapSox after Shark Tank
SoapSox continued to be in Nordstroms and featured in many publications. The company has a strong following and has many plush SoapSox available. And, they have their price in line with what Kevin O'Leary suggested during their Shark Tank pitch. The SoapSox start at $9.99 and go to $14.99, probably driven by licensing agreements.