Biaggi is a foldable luggage company. It was founded by Stephen after his father built a successful handbag company. His father ended up selling the handbag company for 162 million dollars and after seeing the success of his father, Stephen wanted to build a successful company himself rather then being given money from his father who earned it.
With connections and an entrepreneurial background, Steven was able to get massive sales and distribution for Biaggi in the first two years of business. However, Steven over invested in inventory and had trouble educating consumers about how the foldable luggage worked since it was non-demonstrable in retail. Seeking help on the financial side and marketing side, Steven applied to be on Shark Tank and was invited for Season 6.
Biaggi on Shark Tank
Stephen entered the Shark Tank seeking $500,000 for 30% of his business. Stephen talked about how regular luggage takes up so much space in everyday households. He then presented his foldable luggage Biaggi and demonstrated how it worked through patented hinge lock technology. He showed the Sharks two different products, one large Contempo luggage that could fold down to slide under a bed and another zipsack that transformed from a 4 wheel spinner into a tiny pouch.
Kevin immediately asked what the sales were and Stephen mentioned he had done $2,500,000 in two years which impressed the Sharks. However, he brought up the issue about he stopped manufacturing the product after he had to recall inventory and he learned that he needed to educate consumers better. Daymond asked how much money Stephen had invested in the business and Stephen stated he, his family, and their long time partner had invested $3,500,000!
Stunned, the Sharks wanted to know more about Stephen’s background. Stephen talked about how his father started a business which he eventually sold for 162 million dollars, but how Stephen didn’t get any of that money as he wanted to earn it through Biaggi. Lori was interested in how much the bags cost and Stephen mentioned the largest size cost him $62 to make and it sells for $269.
Mark liked the fact that Stephen was honest about the issues he was facing, but didn’t want to be in the luggage business and went out. Robert was concerned about the education process and competition and also went out. Kevin also politely respected Stephen because he was starting his own business rather than using his father’s money, but was also concerned with the consumer education and went out.
Daymond was concerned with how Stephen would differentiate his product from other luggage pieces in retail. However, Daymond had a connection with the Home Shopping Network for luggage and because of this, he made Stephen an offer of $500,000 for 33%. Stephen loved the offer, but wanted to hear from Lori. Although hesitant at first, Daymond eventually let Lori give her background about how she has been selling luggage for years and hence was also interested. She also offered Stephen the $500,000 for 33%. Daymond talked about how he she Stephen both lived in New York and they could meet often, but Lori stated she could get the product on QVC in 4 months.
Stephen went outside to get his father’s advice. While he was outside, Daymond asked Lori how well she knew the luggage industry and she stated she has sold over $100,000,00 worth of luggage. As Stephen came back in after getting advice from his dad, Daymond let Stephen know that Lori would be a better partner for him because of her expertise in the industry. Because of this, Daymond went out which surprised all the Sharks. Stephen thanked Daymond for his offer and happily accepted Lori’s offer as Lori welcomed Stephen into her Shark Tank family.
Biaggi Now in 2018 – After Shark Tank Update
The deal between Stephen and Lori closed after the show. Lori kept her promise and got Biaggi on QVC multiple times which eventually led millions in sales and the company becoming profitable.
However, Lori was only interested in selling the Zipsack on QVC as she felt Stephen’s other product, the foldable contempo luggage, had too much competition and was too bulky. Stephen tried to convince Lori to sell the contempo on QVC as well, but Lori told Stephen that she felt it would be better if they continued to sell the Zipsack and only sold the Contempo online. Although hesitant, Stephen eventually accepted Lori’s advice and knew that she had the best knowledge about to make the company successful through QVC.
Biaggi continues to grow as the Zipsack is still sold on QVC. Lori constantly invites Stephen and her other Shark Tank entrepreneurs to trade shows where they all demonstrate their product and get interest from retailers. With the help of Lori, Stephen was able to educate consumers about the benefits of Biaggi and create a profitable business that may grow as large as his father’s.