Emerging from the inventive minds of siblings Jake, Lachlan, and Erin Johnson, Flipoutz captured the hearts and imaginations of both young and old as it unveiled a novel blend of interactive fashion and innovative gameplay.
This article unveils the story of Flipoutz after Shark Tank, tracing its evolution from inception to the present day. With a mission to explore the business’s growth, its pivotal decisions, and the impact it left in the wake of its captivating concept, this narrative encapsulates the spirit of entrepreneurship and innovation that has come to define the modern business landscape.
What Is Flipoutz?
The inception of FlipOutz took place as a result of the creative brainstorming of a trio of siblings – Jake, Lachland, and Erin Johnson. Their innovative concept emerged during a traffic jam, leading to the development of an engaging coin game intertwined with an interactive fashion bracelet.
Moreover, children are bestowed with the opportunity to monitor the journey of their coins as they circulate globally, traversing diverse hands and locations. Notably, Lachlan Johnson stands out as one of the youngest participants in the entrepreneurial realm, making a remarkable appearance at the age of 18, a testament to his innovative spirit and business acumen.
About the Founders Of Flipoutz
With tempered expectations, their parents anticipated a modest outcome from this exercise. However, the youthful minds merged their creative faculties and formulated an idea that held promise beyond anyone’s foresight. Thus, the conception of Flipoutz transpired at that very moment.
At its core, the notion behind Flipoutz was refreshingly straightforward. They envisioned a silicon rubber bracelet cleverly outfitted with compartments capable of accommodating a repertoire of up to five distinctive coins. These coins would serve as canvases for imaginative and eccentric designs, alongside the infusion of motivational messages. The true innovation rested in their aspiration to transform these coins into tradable and traceable entities through a dedicated Flipoutz website.
Both Mr. and Mrs. Johnson perceived the embryonic potential of this novel toy-cum-child’s apparel accessory, galvanizing their conviction in its success. This enthusiasm prompted them to explore a partnership with one of the formidable Sharks on the revered platform of Shark Tank.
The Pitch Of Flipoutz At Shark Tank
Emily Johnson steps into the Shark Tank, initiating the conversation by introducing her spouse and subsequently her offspring. She proceeds to recount the genesis of the Flipoutz product to the Sharks. As previously mentioned, Emily had challenged her children to devise the ultimate plaything or amusement to ensure harmony during their journey back home, rather than squabbling amongst themselves. The outcome was Flipoutz, for which they currently seek a $ 100k investment in exchange for a 20% share in the enterprise [3].
With the financial aspect momentarily addressed, the Johnsons’ eldest daughter, Lachlan, takes the reins and acquaints the Sharks with the creation she and her siblings have concocted. Adorning her wrist are two Flipoutz bracelets, which she showcases while elucidating that these wristbands house personalized tokens designed to be collected, traded, and monitored online via the Flipoutz website.
After distributing bracelets to each Shark, Erin proceeds to expound on how she infused these tokens with a touch of creativity.
Their purpose is to empower wearers to express themselves by discovering coins adorned with unique artwork or uplifting messages. Moreover, for ease of tracking, each coin bears a 10-digit code etched onto its back, which can be entered online to allow owners to track the global journey of their tokens as they are exchanged.
The technological aspect of Flipoutz owes its existence to Jake, who yearned for its invention to incorporate a gaming element. He envisioned a website where users could fashion their own personal pages, enabling them to blog or engage in similar activities. The first Shark to contribute to the discussion is Robert Herjavec, who commends Jake for collaborating with his sisters long enough to conceive this idea.
However, he promptly inquires about the current sales figures. Although the Flipoutz brand has only been on the market for six months, it has managed to amass $ 20k in sales during that time. These sales were predominantly achieved through their website, but they have also forged partnerships with a business representative and a souvenir distribution company that supplies Flipoutz to theme parks and zoos.
Daymond John directs his inquiry toward the heart of the matter, seeking insight into the production costs of the bracelets. He learns that the manufacturing cost for one bracelet along with a coin stands at $ 0.66, while the retail price hovers around $ 5. This revelation prompts a discussion about their primary competitor, Silly Bandz, a product that holds great appeal to children, as acknowledged by Robert Herjavec. John poses a critical question, pondering why children would be motivated to trade the coins integrated with the bracelets.
The Johnsons elucidate the interactive aspect: each coin allows its possessor to inscribe personal messages, creating a chain of connection and history as these coins change hands. The concept has sparked interest, with a substantial response from their high school peers and even resonating among college students.
The trajectory of Flipoutz hasn’t been without financial investments. The Johnson parents have committed approximately $ 250k into the business. However, the expenses incurred for website development and patent-related legal matters have exerted a considerable financial strain. This realization precipitated their quest for external investment, a decision met with skepticism by Kevin O’Leary, who remains unconvinced of the product’s unique value. Emily stands firm, emphasizing the significance of securing a patent for their tracking and trading mechanisms as the key to their future success.
Barbara Corcoran acknowledges the potential held within their patent, yet pragmatically recognizes the formidable competition in the market and the resource-intensive battle ahead [4]. She and Kevin Harrington opt to step aside, citing the demanding journey the Johnsons are embarking upon. However, Emily’s revelation about a substantial purchase order for 25 million coins and 2-3 million bracelets sparks renewed interest. The potential buyer’s commitment to a 30% upfront payment for production expenses adds credibility to the Johnsons’ business prospects.
In a bid to garner support, Emily unveils their ongoing negotiations and the lucrative order on the horizon. John seizes the opportunity to extend an offer of $ 100k in exchange for a 33% stake, emphasizing the need for guidance and financial backing to fulfill the large order. The Johnsons express a desire for a multi-Shark deal, prompting a joint proposition from Kevin O’Leary and Robert Herjavec for a 50/50 partnership. In a swift pivot, John revises his offer to a 25% stake.
Tempers flare briefly as O’Leary requests a moment for the Sharks to confer privately. Upon their return, the Sharks collectively propose a $ 100k investment for a 33% equity stake. They highlight their belief in the patent’s potential while acknowledging the inherent risks. In a surprising twist, Jake discloses their decision to explore alternative funding, putting forth a counteroffer of $ 150k for the same equity stake.
However, the Sharks remain steadfast, and after a final opportunity to reconsider, the Johnsons ultimately choose to accept the original offer, cementing their partnership with the Sharks.
Flipoutz After The Shark Tank
Following its appearance on Shark Tank, Flipoutz found its place on the shelves of Toys R Us and Hallmark retail outlets. Reports from various sources revealed that John and the Johnsons, the minds behind Flipoutz, completed a transaction involving the sale of their creation to Wild Craze Inc. in 2013. The precise financial details of this deal remained undisclosed [5].
Presently, the Johnson siblings, namely Lachlan and Jake, have shifted their focus toward an innovative startup known as Beaux Up. This new venture introduces a collection of bow ties crafted from “up-cycled” lengthy ties, showcasing their dedication to sustainable practices.
An exciting highlight in Jake’s journey was his participation in Warren Buffett’s entrepreneurial competition, “Grow Your Own Business Challenge”. The outcome was favorable, as he emerged victorious, securing one of the dual $ 5,000 rewards offered. It is worth noting that Flipoutz maintains its presence on the expansive online marketplace, Amazon.
In 2013, the Johnson siblings decided to part ways with their business, selling it to a company known as Wild Craze. The exact amount of this transaction remained undisclosed. However, by 2015, a significant shift occurred as Wild Craze opted to shut down the business entirely. Following this decision, a rebranding effort took place, transforming Flipoutz into SnapTagz in the same year, signaling an attempt to pivot and reshape its market presence.
In terms of their individual pursuits, Jake had embarked on a legal education journey, enrolling as a law student at Tulane University. Meanwhile, Lachlan was reaching the culmination of his studies as a senior at Saint Louis University. Erin, on the other hand, had chosen to maintain a low profile, her current endeavors remaining outside the public eye.
The Net Worth Of Flipoutz
The FlipOutz enterprise proved to be a lucrative venture, driven in part by the revealing of the manufacturing costs, which amounted to a mere $ 0.66 for a single bracelet and accompanying coin [6]. This low production cost stood in contrast to the retail price of approximately $ 5 per package, yielding a substantial profit margin for each unit manufactured.
The digital aspect of the FlipOutz experience added a layer of personalization that resonated with kids and the youth. On the website, participants could inscribe their thoughts and affix messages to their coins, creating a narrative that extended beyond the physical product. This ingenious feature contributed to the sense of crafting a history for each coin, enhancing the overall engagement and enjoyment.
At the juncture of their Shark Tank appearance, FlipOutz held a valuation in the vicinity of $ 300,000, a testament to the traction and potential they had garnered over time. Between 2011 and 2013, the business witnessed a period of substantial growth and expansion.
Ultimately, the Johnsons took a significant step by selling the FlipOutz enterprise to Wild Craze Inc., a prominent consumer products holding company. This transaction was shrouded in confidentiality, involving both an undisclosed sum of money and a stake in the acquiring company’s stock.
Alternatives To Flipoutz
If you’re looking for alternatives to Flipoutz, there are several other options available in the market.
Here are a few alternatives you might consider:
- Snapbands: Snapbands are wristbands that can be easily snapped onto the wrist. They come in various designs and colors and can be personalized with different accessories;
- Charm Bracelets: Charm bracelets offer a similar concept of collecting and personalizing accessories. These bracelets have individual charms that can be added or removed to reflect the wearer’s interests and style;
- Friendship Bracelets: Friendship bracelets are a classic choice for expressing creativity and sharing with friends. These bracelets are typically handmade using colorful threads and can be customized with different patterns and designs;
- Smartwatches for Kids: If you’re looking for a more tech-oriented option, smartwatches designed for kids offer features like GPS tracking, games, and communication capabilities. These watches often come with customizable watch faces and bands;
- Collectible Toys: There are various collectible toys available in the market that offer a similar concept of collecting and trading. These toys often come in blind packs or series, encouraging users to complete a set or find rare items;
- Online Gaming Communities: For those interested in the gaming aspect of Flipoutz, exploring online gaming communities can be a great alternative. These communities provide platforms for users to create their own profiles, interact with others, and participate in various gaming activities;
Also, Silly Bandz is a product that shares similarities with Flipoutz in terms of its trading and collectible nature [7]. Silly Bandz are silicone rubber bands molded into various shapes and designs that return to their original shape when removed. They gained popularity among children for their unique shapes and the trend of trading and wearing multiple bands on their wrists.
Like Flipoutz, Silly Bandz also tapped into the social aspect of collecting and exchanging. Kids would often trade Silly Bandz with their friends to complete sets or acquire specific shapes. This interactive aspect created a sense of engagement and community among young collectors.
Additionally, the diverse designs of Silly Bandz allowed children to express their interests and preferences through the bands they chose to wear.
While Silly Bandz and Flipoutz have their differences, such as the materials used and the specific mechanics of interaction, they both leverage the concept of collectibility and trading to create an appealing experience for kids.
FAQ:
- Who founded Flipoutz?
Flipoutz was founded by three siblings named Jake, Lachlan, and Erin Johnson. They devised the idea during a car ride home from the beach, seeking to create an engaging toy or game that would keep them from bickering with each other. This idea eventually led to the development of Flipoutz, a coin game and interactive fashion bracelet.
- What is the Shark Tank TV show?
Shark Tank is a popular reality TV show where entrepreneurs pitch their business ideas to a panel of wealthy investors, known as “sharks”. The entrepreneurs seek investments from the sharks in exchange for equity in their companies. The sharks evaluate the pitches, ask probing questions, and negotiate deals with the entrepreneurs if they see potential in their business ventures.
- Who are the 7 sharks in Shark Tank India?
The specific lineup of “sharks” on “Shark Tank India” may not have been finalized. However, the show typically features successful entrepreneurs and business experts willing to invest their money in promising business ideas. The lineup of sharks can vary from season to season.
- Does Sony own Shark Tank?
No, Sony does not own the Shark Tank TV show. Shark Tank is a show created by Mark Burnett and is owned by MGM Television and Sony Pictures Television.
- Do the “sharks” get paid by businesses?
The “sharks” on Shark Tank do not receive direct payment from the businesses that appear on the show. Instead, they negotiate deals with the entrepreneurs in which they offer to invest their own money in exchange for a percentage of equity in the businesses. If a deal is successfully negotiated and the entrepreneurs’ businesses become successful, the sharks can earn returns on their investments.
- Why is it called Shark Tank?
The term “Shark Tank” metaphorically alludes to a challenging and competitive environment, much like a tank filled with hungry sharks ready to prey on opportunities. The show’s name reflects the intense nature of the pitching process, where entrepreneurs present their business ideas to a panel of savvy investors.
- Why are investors called “sharks”?
The investors on Shark Tank are referred to as “sharks” because of the aggressive and decisive nature they exhibit during the negotiations. Just like sharks in the ocean, these investors are known for their willingness to take risks and make swift decisions. The name captures the competitive and sometimes intimidating atmosphere of the show.
- What Shark Tank deals failed?
Shark Tank has seen numerous deals fail for various reasons. Some businesses might not have been able to deliver on their promises, faced challenges in execution, or experienced changing market dynamics. Some entrepreneurs might have rejected offers from the sharks or failed to reach mutually agreeable terms.
- Which “shark” is actually making a profit?
Several of the sharks on Shark Tank have made profitable investments through the show. The profitability of their investments varies based on the success of the businesses they’ve invested in. Some notable sharks known for their successful investments include Mark Cuban, Kevin O’Leary, Lori Greiner, and Robert Herjavec.
- Why Shark Tank is so popular?
Shark Tank is popular for several reasons:
- Entertainment: The show combines business pitches, negotiations, and the dynamics between entrepreneurs and investors, making it engaging to a wide audience;
- Aspirational Content: The show showcases ordinary people with innovative ideas striving to achieve their dreams, resonating with viewers’ aspirations;
- Learning Opportunity: The show offers insights into entrepreneurship, investment, negotiation, and business strategies, making it educational
- Diverse Pitches: The wide variety of pitches and products keep the content fresh and appealing to different interests;
- Drama and Tension: The negotiations, the pressure, and the competition create dramatic moments that captivate viewers;
- Does Shark Tank give money?
On Shark Tank, the “sharks” are potential investors who can offer their personal funds to invest in entrepreneurs’ businesses. If an entrepreneur accepts an offer from a shark, the shark provides the agreed-upon investment amount in exchange for equity in the business.
- Does Shark Tank still exist?
As of 2023, Shark Tank was still airing new episodes. However, TV show statuses can change, so I recommend checking the latest sources to confirm if the show is still ongoing.
- What is the most successful rejected Shark Tank?
One of the most famous and successful products that was rejected on Shark Tank is the Scrub Daddy, a smiley-faced scrubbing pad with unique properties. Although the sharks initially rejected the deal, the product went on to become a huge success, making millions in sales and securing widespread retail distribution.
- How many billionaires are on Shark Tank?
There were two billionaires among the sharks on “Shark Tank” – Mark Cuban and Kevin O’Leary. Keep in mind that circumstances might have changed since then.
- Do Shark Tank’s entrepreneurs get paid?
Entrepreneurs who appear on Shark Tank do not get paid to pitch their ideas on the show. However, if they successfully secure an investment from one of the sharks, they receive the agreed-upon investment amount in exchange for equity in their business.
- Why do Shark Tank deals not close?
Shark Tank deals might not close for various reasons:
- Due Diligence: After the show, further investigation might reveal issues that discourage the sharks from proceeding with the deal;
- Changing Terms: Entrepreneurs might change their terms or receive better offers outside the show;
- Unforeseen Circumstances: Market changes or internal challenges might impact the viability of the deal;
- Failed Negotiations: Negotiations may stall due to disagreements on terms or equity;
- How did Lori Greiner get rich?
Lori Greiner, often referred to as the “Queen of QVC”, got rich through her inventions and investments in consumer products. She has created and patented over 700 products, many of which have become successful through QVC and other retail channels. She’s also known for her role on “Shark Tank,” where her investments and royalty deals have contributed to her wealth.
Useful Video: FAQ#1: What Is Flipoutz?
References:
- https://www.sharktankblog.com/business/flipoutz
- https://gazettereview.com/flipoutz-update-see-happened-shark-tank/
- https://seoaves.com/what-happened-to-flipoutz-after-shark-tank/
- https://bizzbucket.co/flipoutz-shark-tank-update/?expand_article=1
- https://sharktanktales.com/flipoutz-shark-tank-update/
- https://www.reddit.com/r/sharktank/comments/oarm15/what_really_happened_to_flipoutz/
- https://2paragraphs.com/2017/08/flipoutz-daymond-john-sold-coin-bracelet-toy-co-after-shark-tank/