Debbie Brooks Handbags before Shark Tank
Debbie Brooks Handbags is a line of high-end bags that have changeable magnets. Debbie Brooks, the inventor, and her husband Paul thought of the idea after Debbie made a bag for herself that got attention from a random person. Seeing Debbie’s creativity and some demand, Paul and Debbie started their business. Paul was able to take Debbie’s designs and add something proprietary to it: a removable magnet on the front. This allowed them to stand out from the countless competitors in the market.
Paul and Debbie were able to get their bags into numerous jewelry stores before coming on Shark Tank. This also demonstrated their unique mindset as their bags stood out in these stores by having no other competitors and with prices that seemed reasonable in this environment. With this distribution, Paul and Debbie’s business reached massive sales and was profitable. They applied to be on Shark Tank hoping to increase value in the brand and were invited for season three.
Debbie Brooks Handbags on Shark Tank
Paul and Debbie entered the Tank seeing $540,000 for 20%. Paul told the Sharks about how he met Debbie and that a gift of $5,000 exposed Debbie’s creativity which eventually led to their successful company. Debbie also told the Sharks about their patent of having a removable magnet and Paul mentioned how this patent was beneficial as “woman need a different look for every outfit.”
Lori was interested in what they wanted the money for. Paul mentioned that they were currently selling to jewelry stores and the money would help them continue this while building brand recognition through marketing. Paul also sold the Sharks on the uniqueness of having their handbags in jewelry stores and how it comes off as a “cheap” purse in a high-end environment which has led to their success. Kevin was interested in the numbers as he addressed the valuation. Paul told Kevin they had $1,200,000 in sales, a profit of $685,000 and that the purses were selling for around $150-$300. Paul also tried to sell the Sharks on the demand for high-end products by mentioning other brands, but Lori justified those brand prices by what actually was on those purses such as Swarovski crystals.
Robert asked Lori if she liked the purses, and Lori was hesitant at first, but stated she liked some of them. Lori was more interested in the patents owned by the company. Paul went into detail about how the patents covered the “click-on” and “click-off” function of a magnet, but Lori stated that others could still make a purse with a magnet on it. Daymond didn’t believe in their patent and went out. Paul tried to address some concerns by stating the potential of licensing. Mark mentioned that he loved Paul and Debbie’s marketing strategy of selling to jewelry stores, but knew he couldn’t add value to the company and went out. Robert was confused by what he would be getting in the deal and also didn’t connect to the product so he went out.
Kevin went back to addressing the valuation as he didn’t feel investors would pay a nearly ten times cash flow valuation. Paul brought up what other value the company had outside the sales such as the patents and the artwork. Kevin felt he would have to cut the valuation in half to make is fair, but still didn’t want to make an offer and went out. Lori was in the same boat as Daymond as she didn’t trust their patents and went out as well. As Paul and Debbie left, Debbie was scared Lori would “knock them off” as she asked many questions about their patents, but Paul said she couldn’t as Lori sell purses very cheaply.
Debbie Brooks Handbags after Shark Tank
Did the company succeed?
Despite not getting a deal, Paul and Debbie have grown the brand as they had hoped and have become a massive company. Debbie Brooks now offers more than just handbags such as phone covers, key chains, and pendants.
Where can I buy Debbie Brooks products?
Debbie Brooks products can be bought directly from the company’s website at https://www.debbiebrooks.com. The company also sells some of their products on Amazon and they have a list of retailers that carry their products found on the link below. https://www.debbiebrooks.com/index.php?file=storelocator
What do the reviews look like?
Debbie Brooks has gotten a lot of media attention outside of Shark Tank which has helped them gain positive feedback. Most who buy Debbie Brooks products are impressed, mentioning they look very pretty and that the items help them gain compliments which is one of the key objectives when buying high-end fashion products.