In the high-stakes world of Shark Tank, David Artuso and Mike Kane entered with CellHelmet, a revolutionary iPhone case promising unique protection and repair guarantees. While the Sharks initially hesitated to take the bait, Artuso and Kane’s entrepreneurial journey post-Shark Tank revealed a different narrative.
This article delves into the aftermath of their televised pitch, exploring the twists and turns that propelled CellHelmet beyond the tank, uncovering strategic moves, business expansions, and the undeniable success that followed their unconventional foray into the fiercely competitive realm of mobile device accessories.
What Is CellHelmet:
This restorative service is conveniently accessible through any of their expansive 50-plus repair facilities scattered nationwide. Phones affected by accidents are expedited through the channels of overnight express shipping, and iPhones, in particular, undergo repair and restoration within an impressively brief timeframe of fewer than 72 hours.
Owning a CellHelmet not only involves safeguarding your phone within a visually appealing casing but also translates to potential savings on insurance costs, with the caveat that coverage excludes instances of loss or theft. Remarkably, CellHelmet stands as the sole company globally offering such an unparalleled guarantee in the realm of mobile device casings.
Features and Guarantee:
Made in the USA:
CellHelmet takes pride in its American roots, being crafted in Pittsburgh, PA. The local origin not only adds a touch of authenticity but also contributes to the brand’s commitment to domestic manufacturing.
Innovative Guarantee:
CellHelmet’s standout feature is undoubtedly its groundbreaking guarantee. Unlike conventional phone cases, CellHelmet offers a promise that if your phone breaks while protected by their case, they will fix it for a nominal fee of $ 50. This guarantee is coupled with the convenience of over 50 nationwide repair facilities, ensuring quick and efficient service. The commitment to repairing damaged phones within 72 hours is a notable aspect, providing users with a swift resolution to their device issues [2].
Overnight Express Shipping:
The inclusion of overnight express shipping for damaged phones is a testament to CellHelmet’s dedication to customer satisfaction. The expedited shipping ensures that users experience minimal downtime, further enhancing the appeal of the guarantee.
Cost Savings on Repairs:
CellHelmet’s guarantee not only offers peace of mind but also presents a cost-effective solution for users. The nominal fee of $ 50 for repairs contrasts sharply with the potentially exorbitant costs associated with fixing a damaged iPhone through other means. This financial aspect adds a layer of practicality to the product.
Aesthetic Appeal:
Beyond its functional aspects, CellHelmet doesn’t compromise on style. The case is designed to be not just a protective shield but also a fashion statement, adding to the overall appeal for users who seek both form and function in their smartphone accessories.
Save on Insurance:
The unique guarantee from CellHelmet extends beyond mere protection; it offers users a chance to save on insurance costs. While it doesn’t cover loss or theft, the assurance that your phone will be repaired for a nominal fee provides an alternative to traditional insurance plans, potentially appealing to a budget-conscious consumer base.
Pros:
- Protection: CellHelmet cases are designed to provide maximum protection for your device. They are made from high-quality materials that can withstand drops and impacts, promising to keep your phone safe and secure;
- Repair or Replacement Guarantee: One of the standout features of CellHelmet is its guarantee. If your phone breaks while in their case, they promise to either repair or replace it. This kind of assurance is rare in the phone case industry and gives customers peace of mind;
- Variety: CellHelmet offers a wide range of cases for different phone models. Whether you have an iPhone or an Android device, you’re likely to find a suitable case;
Cons:
- Price: While the protection and guarantee offered by CellHelmet are impressive, they do come at a cost. Their cases are more expensive than many others on the market;
- Bulkiness: Some users have reported that CellHelmet cases are quite bulky, which can detract from the sleek design of modern smartphones;
- Limited Designs: Though they offer cases for numerous phone models, the design options are somewhat limited. Users looking for more aesthetic variety might be left wanting;
Who May Benefit From Using?
iPhone Users Seeking Comprehensive Protection:
CellHelmet is specifically designed for iPhones, and users of these devices who are looking for comprehensive protection against accidental damage may find this case particularly appealing. The guarantee of repair at a nominal fee adds an extra layer of security for iPhone users who want to safeguard their devices without breaking the bank on potential repair costs [3].
Individuals Prone to Accidents:
If you’re someone who tends to be a bit accident-prone with your phone — be it drops, spills, or other mishaps — CellHelmet’s guarantee against accidental damage can be a game-changer. This case offers peace of mind for individuals who want to protect their investments without the constant worry of potential damage.
Budget-Conscious Consumers:
The $ 50 repair fee for damaged phones is considerably lower than the potential costs associated with repairing a damaged iPhone through other means. Budget-conscious consumers who are looking for a cost-effective solution to phone protection, coupled with potential savings on insurance, may find CellHelmet to be a practical choice.
Frequent Travelers:
The inclusion of overnight express shipping for damaged phones is a notable benefit for those who are always on the move. Frequent travelers who rely heavily on their phones and cannot afford extended periods without their devices will appreciate the quick turnaround time for repairs.
Fashionable Tech Enthusiasts:
CellHelmet doesn’t just focus on functionality; it also considers aesthetics. Users who view their smartphones as fashion accessories and want a stylish case that doesn’t compromise on protection may find CellHelmet to be an attractive choice.
Users Interested in Environmental Sustainability:
CellHelmet’s commitment to using sustainable materials in its packaging may appeal to environmentally conscious consumers. If reducing your ecological footprint is a priority, CellHelmet aligns with a more sustainable approach compared to some other phone case options.
Fans of American-Made Products:
For individuals who actively seek out products made in the USA, CellHelmet’s origin in Pittsburgh, PA, adds a patriotic touch. Supporting domestic manufacturing may be a key factor for those who prioritize products with local roots.
People Uninterested in Traditional Phone Insurance:
CellHelmet’s unique guarantee provides an alternative to traditional phone insurance plans. Individuals who are not interested in or find traditional insurance to be too expensive may see CellHelmet’s repair guarantee as a more practical and affordable option.
About Founders Of CellHelmet
Their innovative business idea revolved around creating a sturdier protective case for smartphones, steering clear of the perceived shortcomings of existing options. The duo conceptualized a new design utilizing thermoplastic polyurethane rubber—a robust and lightweight material. This choice not only resulted in a more lightweight and convenient phone cover but also promised additional benefits for their customers.
In a strategic move, they collaborated with a prominent insurance company to provide an extra layer of protection for customers. If a phone broke while housed within a CellHelmet case, the entrepreneurs guaranteed either repair or replacement, ensuring peace of mind for their users.
To fund the manufacturing process, David and Mike initiated a Kickstarter campaign in January 2012, capturing the imagination of the crowdfunding community. While their initial goal was a modest $ 10,000, the campaign surpassed expectations, concluding with over $ 19,000 in funding and the support of more than 300 backers within 40 days [5].
Following the success of the Kickstarter campaign, CellHelmet officially launched its business. Recognizing the potential for further expansion with additional investment, the founders set their sights on securing a spot on the hit television show Shark Tank. After a persistent five-month effort to engage with the show’s producers, their determination paid off, and they earned the coveted opportunity to pitch their innovative product on Shark Tank.
The Pitch Of CellHelmet At Shark Tank
David Artuso and Mike Kane, donning Viking helmets bearing their company logo, entered the Shark Tank, aiming to secure a $ 160,000 investment for a 20% stake in their business, CellHelmet [6]. The entrepreneurs, aware of the potential skepticism, used the helmets not for physical bashing but as a visual representation of the protective qualities of their product.
They presented CellHelmet as a unique service, offering accidental damage insurance protection for phones housed in their cases. The guarantee was clear: if a phone broke within a CellHelmet case, the company would either repair it or replace it if repair proved impossible. The duo showcased competitors’ products with exaggerated claims of durability, using a boat anchor and baseball bat for dramatic effect.
Lori Greiner inquired about the insurance aspect, and Mike explained the company’s model: customers purchasing a CellHelmet screen for $ 44.99 automatically received one year of accidental damage coverage. The company, operating a 24/7 hotline, is committed to repairing or replacing damaged phones.
Robert Herjavec questioned the company’s sales and longevity, learning that CellHelmet had been in business for only four months since a successful Kickstarter campaign, selling 1,300 units during that time.
However, Kevin O’Leary explosively criticized the business, referring to it as “Nothing Burgers” and asserting that the mobile phone industry, worth hundreds of millions annually, rendered CellHelmet insignificant.
Mark Cuban defended the entrepreneurs, emphasizing that 1,300 units sold in four months was commendable for a new business. He inquired about the average repair cost, and Mike disclosed that each repair cost an average of $ 77, with a $ 50 repair fee charged to customers [7].
Concerns arose about potential abuse of the system, with customers buying CellHelmet cases for cheap repairs. David acknowledged the possibility but stressed that the $ 50 repair fee prevented significant losses for the company.
Despite the explanations, Kevin O’Leary and Robert Herjavec expressed strong reservations about the business model. Lori Greiner saw limited growth potential and likened CellHelmet to a “Cellphone Emergency Room Business,” prompting her exit.
Daymond John and Mark Cuban shared concerns about the potential cost to the business. Mark highlighted the absence of patent protection for CellHelmet’s services, leaving them vulnerable to larger competitors.
In a final attempt, Mike argued that the validation from larger competitors adopting a similar model would benefit CellHelmet. However, Mark Cuban disagreed, stating that CellHelmet would be pushed out of business by bigger players.
Ultimately, all the sharks declared they were out, with Kevin O’Leary humorously suggesting a Viking send-off for the entrepreneurs.
CellHelmet After The Shark Tank
Despite the Sharks’ initial skepticism and decision not to invest in CellHelmet, David Artuso and Mike Kane have proven their business acumen and achieved significant success in the years following their Shark Tank appearance.
Shortly after the show aired, the entrepreneurs expressed their gratitude to Kickstarter backers and shared positive news. They had secured investments from two local investors in Pittsburgh, both bringing valuable wireless industry expertise. These investors not only infused capital but also provided an immediate retail outlet for CellHelmet, owning 15 Verizon stores in the area.
This early expansion opportunity, coupled with heightened interest post-Shark Tank, propelled CellHelmet to even greater heights. The product’s presence increased in Verizon stores in the Pittsburgh area, with plans to expand to other Verizon locations in 2016. Within 24 hours of the segment airing, an additional 2,000 CellHelmet screens were sold. A month later, sales had surpassed 10,000 units.
The success story of CellHelmet, from a challenging beginning to widespread availability and product diversification, suggests that the Sharks may have underestimated the immense market potential for CellHelmet products. David Artuso and Mike Kane’s perseverance and strategic decisions have led to a thriving business that continues to grow and innovate.
While the Sharks may have missed out on partnering with CellHelmet, the entrepreneurial duo has navigated the business landscape successfully, ensuring that, much like a phone protected by their product, they weathered the challenges without irreparable damage. The future looks promising for CellHelmet, and its founders can enjoy a profitable journey without sharing profits with Shark investors.
The Net Worth Of CellHelmet
The company’s success can be attributed to its unique selling proposition – offering robust phone cases with a repair or replacement guarantee should the phone break while housed in their case. This proposition, though leading to higher prices for their products, has attracted a large customer base willing to pay a premium for the peace of mind offered.
CellHelmet pulls in an impressive annual revenue, with figures reported to be around $ 9.8 million. This figure is a testament to the company’s growth, considering the company went from $ 200K to over $ 6 million in sales in one year alone. By July 2021, the annual revenue had already reached $ 11 million.
Despite not receiving an investment during their Shark Tank appearance, CellHelmet has managed to establish itself as a formidable player in the mobile accessories market. With offices in the US and China and multiple locations up and running, the company continues to expand its reach [10].
Alternatives To CellHelmet:
OtterBox:
OtterBox is a well-known brand for rugged and durable smartphone cases. Their Defender Series, in particular, provides robust protection against drops, shocks, and dust. OtterBox cases are available for various smartphone models and are a popular choice for users seeking heavy-duty protection.
Spigen Tough Armor:
Spigen is recognized for producing reliable and stylish cases. The Tough Armor series offers a good balance between protection and slim design. It features air cushion technology to absorb shocks and is suitable for users who want a sturdy case without excessive bulk.
LifeProof FRĒ Series:
LifeProof specializes in waterproof cases, making them an ideal choice for individuals who need protection against water damage. The FRĒ series is designed to be submersible in water, making it suitable for outdoor activities and environments where water exposure is a concern.
RhinoShield CrashGuard:
RhinoShield offers a minimalist alternative with its CrashGuard bumper case. It provides impact protection without covering the back of the phone, maintaining the device’s original design. RhinoShield also offers screen protectors for added defense against scratches.
Apple Silicone or Leather Case:
For those who prefer official Apple accessories, the silicone or leather cases offered by Apple provide a slim and stylish option. While not as rugged as some other cases, they offer a good balance between protection and aesthetics.
UAG (Urban Armor Gear) Monarch Series:
UAG is known for its rugged yet lightweight cases. The Monarch series, in particular, combines a tough exterior with a stylish design. UAG cases are drop-tested to military standards, making them suitable for users with an active lifestyle.
Nomad Rugged Case:
Nomad focuses on creating high-quality, durable cases with a touch of elegance. Their rugged cases are made from genuine leather and offer a blend of protection and sophistication. Nomad cases are suitable for users who want a premium look with dependable protection.
Mous Limitless 4.0:
Mous is known for its protective cases that use innovative materials like AiroShock™ technology to absorb and disperse impact energy. The Limitless 4.0 series offers slim yet robust protection and is compatible with accessories like card wallets and mounts.
Tech21 Evo Check:
Tech21 specializes in cases with impact-absorbing materials. The Evo Check series features FlexShock™ technology, providing advanced drop protection while maintaining a slim profile. It’s a good option for users seeking reliable protection without sacrificing style.
Catalyst Impact Protection Case:
Catalyst produces cases known for their durability and water-resistant features. The Impact Protection Case is drop-tested and provides additional safeguards against water and dust, making it suitable for users in challenging environments.
FAQ:
- How long will it take for CellHelmet items to arrive?
CellHelmet aims to process and ship orders promptly. Shipping times may vary, but customers can typically expect their items within a reasonable timeframe. For more specific information, it’s recommended to check the shipping details provided during the order process.
- What happens if CellHelmet packages are damaged or faulty when they arrive?
In the rare event that a CellHelmet package arrives damaged or faulty, customers are encouraged to contact CellHelmet’s customer support immediately. The company is committed to addressing such issues promptly and providing suitable solutions.
- Does CellHelmet offer a 30-day money-back guarantee?
CellHelmet stands behind the quality of its products. While specific guarantee periods may vary, it is advisable to check the product details for any applicable return policies. CellHelmet is dedicated to ensuring customer satisfaction.
- How can you contact CellHelmet?
Customers can reach out to CellHelmet’s customer support through the provided contact information on their official website. Whether it’s inquiries about products, orders, or general questions, the customer support team is ready to assist.
- What are the best-selling accessories for CellHelmet?
CellHelmet offers a range of accessories, and the best-sellers may vary. To discover the current popular accessories, customers can explore the product listings on the official website or contact customer support for recommendations.
- What is the warranty for CellHelmet products?
CellHelmet typically provides warranties for its products. The duration and details of the warranty may vary depending on the specific item. Customers are encouraged to check the warranty information provided with each product.
- Does CellHelmet guarantee that their cell phone will be completely protected?
CellHelmet is designed to offer robust protection, but no product can guarantee complete invincibility. The guarantee provided by CellHelmet typically covers accidental damage, showcasing the company’s commitment to its customers.
- Is the CellHelmet QI charger compatible with their phone or device?
Compatibility details for the CellHelmet QI charger can usually be found in the product description or specifications. Customers are advised to review this information or contact customer support for clarification on device compatibility.
- Have all 5 sharks ever invested in one product?
While it’s not common for all five Sharks to invest in a single product on Shark Tank, there have been instances where multiple Sharks collaborate on a deal. The dynamics of each episode and investment decision vary.
- How real is Shark Tank?
Shark Tank is a reality television show where entrepreneurs pitch their business ideas to a panel of investors (Sharks). While the interactions and pitches are real, certain aspects, such as the negotiation process and behind-the-scenes details, may be edited for entertainment purposes.
Useful Video: Cellhelmet Shark Tank ABC News!
References:
- https://www.forbes.com/sites/alejandrocremades/2019/04/20/they-were-rejected-on-shark-tank-and-today-are-making-millions/
- https://www.sharktankblog.com/business/cell-helmet/
- https://gazettereview.com/2016/09/cellhelmet-update-happened-shark-tank/
- https://www.sharktanksuccess.com/cell-helmet/
- https://startupreneurship.com/what-happened-to-cellhelmet-after-the-shark-tank-pitch/
- https://seriosity.com/cell-helmet-shark-tank/
- https://kirktaylor.com/cellhelmet-changes-product-shark-tank/
- https://2paragraphs.com/2016/03/cell-helmet-what-happened-to-cell-phone-case-on-shark-tank/
- https://allsharktankproducts.com/shark-tank-products-fashion/cell-helmet-phone-cases/
- https://sharktanktales.com/cellhelmet-shark-tank-update/
