Chelsea and John Pinto hope the Sharks smell a deal when they pitch Boom Boom, their pocket aromatherapy product, in Shark Tank episode 1004. Boom Boom is a Chapstick sized tube filled with essential oils and scents designed to “help you stay focused and feel refreshed.” It’s kind of like an energy drink for your nose.
The Pintos discovered the idea while traveling in Thailand. They saw people all around them using nasal inhalers. Foreigners in Thailand called them “The Wonder Vapors” and the Pintos brought some home to the states with them. They spent three years developing their version of the product which eventually became Boom Boom. The product claims to “rejuvenate your mind, refresh your senses, and increase your focus… all without harmful chemicals or sugary energy drinks.”
The product line includes nasal inhalers (think Vicks inhaler), roll on essential oils and lip balm. The inhalers are the main product and they come in five scents: Winter Mint, Melon Drop, Tropical Rush, Cinnamint and Berry Breeze. The inhalers claim to provide “lifted mood, increased focus and enhanced breathing.” They’re also good for clearing a stuffy nose. At $19.95 for a three pack, they’re priced similarly to a Vicks inhaler. The Pintos likely want a Shark’s help with distribution. Will a Shark smell a good deal here?
Company Information
Video
Posts about Boom Boom on Shark Tank Blog
BoomBoom – Pocket Aromatherapy
Boom Boom Shark Tank Recap
Chelsea and John enter the Shark Tank seeking $300k for 10%. They tell their back story and give their pitch, then hand out samples to the Sharks. The Sharks try their samples and they’re invigorated. There are two other inhaler brands on the market, but they were “mediciney.”
They made $754,000 last year (2017) and were on track to do $1.1 million this year (2018). 20% of sales are direct to consumer on their website, 30% was on Amazon and the rest is wholesaled to distributors. Each unit costs 70 cents to make and they sell for $7.95 on their website. Profits last year were $125,000. The products are made in California and he can get production costs down with more volume. He won’t go off shore because he wants good quality. They wholesale it for $1.50 – not good margins – and retail it for $3.99. John reveals he owns 36% of the business and another co-founder owns 36%. Two other investors own 25%.
Kevin says he can’t justify the valuation; he’s out. The product doesn’t resonate with Lori; she’s out. Charles doesn’t think people will use it regularly; he’s out. Mark doesn’t like the margins; he’s out. Robert likes the product, but not the valuation. He offers $300,000 for 36%. John asks if he’ll go to 20%. When Robert says no, John declines and leaves with no deal.
Boom Boom Shark Tank Update
The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show. After the show, John told Forbes “Had we accepted the 36% offer, that equity would have been split between myself and the other co-founder, which would essentially make the investing shark majority owner and not something that we could feel comfortable with.” On show night, they did around three and a half months worth of sales.
As of October, 2020 the company has expanded to over 6000 retail locations including Wal Mart and CVS. Approximately 800 of those locations are Wal Marts. They now have a full Amazon Store, too. As of November, 2022, the company is still in business and earning $4-$5 million in annual revenue.
Recent Comments