YuBo Lunch Box Before Shark Tank
Modern day lunchboxes can be pretty gross – and the other alternative, brown paper bagging, can be extremely expensive and hurt the environment. YuBo serves to change that as a newly created lunchbox. How exactly does YuBo differ from its competition? Read on more to find out..
YuBo Lunch Box on Shark Tank
Paul and Cyndi Pedrazzi are seeking $150,000 in exchange for 15% of their lunchbox company, YuBo. It all started four years ago as the proud parents of two beautiful little girls, they would send them to school with a typical fabric lunchbox, filled with plastic baggies and personallized with a permanent marker on the side. They were going through nearly 2,000 plastic bags per year, not to mention that these lunchboxes would come home completely nasty. They weren’t dishwasher safe, and were never properly cleaned. Paul and Cyndi looked everywhere for a lunchbox that was clean and good for the environment, but couldn’t find one, so they came up with YuBo.
YuBo is the only lunchbox where kids can create their own designs and change them out whenever their tastes change, so a whole new lunchbox isn’t required. If yogurt or crumbs are spilled into the box, simply wash it out or put it in the dishwasher; YuBo also comes with containers and a custom ice pack, so food stays fresh for longer. Paul and Cyndi then bring out custom YuBos for each Shark, demonstrating that the faceplates can easily be pulled out with just pulling on a corner. There’s no zippers or hinges part of the design, as well.
Robert asks about the included containers; are they add-ons, or included in the basic purchase? Cyndi explains that YuBo has two models, the basic lunchbox which comes empty at a lower pricepoint of $21.95 and the deluxe model which comes with three containers and retails for $30 with no personalization, or up to $40 with personalization included. Lori points out the brilliance in the design, since it allows for the YuBo to quickly be disassembled and put into the dishwasher.
Robert points out the excellence in the presentation and the design, and asks if they are at the cusp of going
to retail; the two confirm that YuBo has entered around 100 retail stores across the nation, and YuBos are also sold internationally through the website. YuBo typically sells for $15 to $20, and in 4 years, they have finally managed to enter the sales arena of selling $200 to $250,000 worth of product in the year of filming this episode alone. So far, they have two patents, a design and utility patent, and YuBo is already trademarked. Not only is their goal to expand in the channels they are already in, but they also have another vision; Cyndi picks Barb for an example, since she knows Barb has a daughter. She gives the example of Barb taking her daughter to Disneyland, where the daughter then meets any Disney princess – now, just imagine if a picture was taken of this encounter and when the daughter and Barb go into a giftshop, imagine if the picture was already printed out and waiting on a lunchbox.
Robert asks if they already have this deal in place, but the Pedrazzis say that they are here today to look for the capital in order to make that deal with Disney and other such amusement parks or locations. Lori asks how much the two have invested, and so far, they have invested $350,000 of their own money into YuBo. With their industrial designer, they did not have the cash to pay the designer what he asked for upfront, so they gave him 20% of their company and they own the remaining 80%. However, the designer does have a royalty of 5% to 1%, which is on a sliding scale based on the units sale in perpetuity – forever. At 750,000, the royalty drops to 1%; Robert points out that this is sales, which draws negative reactions from each Shark, who all comment on how steep it is. Paul says that they wouldn’t be here without the deal, and Mark interrupts saying that the lunchbox industry is such a competitive industry. After investing $350,000, their sales are still nowhere close to that, and Mark is upset by the idea of a perpetual royalty – Mark is out.
Barb objects to the size of the lunchbox, saying that she could not put the YuBo in a backpack, and that she finds that to be a problem. While the product and personalization of it are charming, it is simply too big; Barb is out as well.
Kevin says he wants to make an offer since he is interested, but there is a fair amount of work to be done to pull YuBo into retail where a fair amount of lunchboxes are bought. Kevin offers $150,000 for 10% equity in their company, plus the same royalty as the designer – a sliding scale of 5% to 1% based on sales volumes. Paul says that the size of a royalty like that is unsustainable, and Robert is the next to make an offer. Robert offers $150,000 in exchange for 30% ownership, but no royalty.
Lori is the third shark to make an offer, an extremely rare occurrence on Shark Tank; $150,000 for 20%, and Lori says she is already in Disney and also has a relationship with Wal-Mart. Robert says that he believes every Shark could get the YuBo into Disney. Kevin changes his offer to $150,000 to a 20% stake in the company, but that 20% could drop down to 12.5% if the full $150,000 is paid back within 18 months. Lori says she would give a similar deal, of $150,000 for 15% but requires the $150,000 to be paid back within 15 months. Robert stays with his original deal, giving them exactly what they asked for. Robert promises the offer of moving to retail and eventually Disney.
Kevin says that he wants to put a little more pressure on everyone, since he is having fun; he changes his offer to offer the $150,000 they are asking for at a 20% equity, but after Kevin is repaid in full, he will then drop his equity down to 10% if the investment is repaid in 18 months, making him the lowest bidder.
Paul asks if any of the sharks would be willing to team up, and Robert says he would be willing to go into Kevin’s deal. Robert goes in with Kevin, and the deal is the same – $150,000 for a 20% equity, which then drops to 10% if the investment is repaid within 18 months. The Cedrazzis accept Kevin and Robert’s deal, finding their $150,000 in YuBo, and the comfort of two sharks mentoring them.
YuBo Lunch Box After Shark Tank – 2018 Update
After being featured on Shark Tank the YuBo took off like a rocket ship. The lunch box is now sold all around the world and featured for sale both online and in brick and mortar stores around the world. If you are interested in the YuBo lunch boxes you actually get them cheaper on amazon by clicking here to get the discounted price.
Additionally they’ve launched a few new product lines such as a washable tote and larger food storage solutions for teen/adult consumers with larger appetites. So overall it looks like YuBo lunch boxes were and continue to be a huge success for everyone involved.