All33 Before Shark Tank
Chair design has remained the same for quite some time. The chair itself has been around for thousands of years and the lag in new design has meant that for more than a thousand years people have been suffering from back problems. Whether it’s at home or the office, you are assured of an unpleasant time once you are ready to sit down for more than 5 minutes.
Is sitting the new smoking? For some people it is and the poor chair design is crippling them. Dr. Dennis Colonello had treated back problems for more than 45 years. In that time he had developed ways to keep the back muscles moving as you go about your day-to-day activities.
Bing Howenstein was a serial entrepreneur always looking for products that could help people. He went to see his friend Dr. Dennis Philanel and saw that he was interested in the work of Dr. Dennis Colonello and had made a chair which Bing thought was a game changer in the chair-making business. The chair had a rocking bottom that made it possible for all 33 of a person’s vertebrae to move as they sat guaranteeing comfort and being able to sit for a longer period of time.
Bing and Dennis started All33 which was a business that sold the chair and it was such a success that even major celebrities endorsed it. The company had a great start but still needed more funding and strategy to grow. That’s why they turned to the Shark Tank. Bing made his pitch on the 9th episode of season 12.
All33 on Shark Tank
Bing Howenstein went to the Shark Tank seeking $500,000 for 2.5% of his business All33. This gave All33 a value of $20,000,000. He started by showing the sharks the problems people experienced with conventional furniture. He then showed the sharks the solutions that Alll33 furniture provided for back relief. He also showed the sharks an endorsement that he got from Justin Bieber. Bing then invited Kevin to try sitting on his seat.
Kevin said that he was skeptical about all the claims made about the chairs because he had seen so many. However, as some time passed he said that the device was working. However, he did not like the valuation of the company. Bing said that he was happy to talk about it. Daymond also asked Bing to tell him how he had gotten into the business and how everything happened.
Bing said that he had been a patient of Dr. Philanel for about 20 years. From that relationship they became friends. He became a bit of a serial entrepreneur from then making products and ensuring that they were sold. From there, he got into the back chair space. At some point, he sat on his friend’s chair and it was so comfortable that he knew that it was an entirely different game.
He knew that his friend Dennis would never do anything with his chair and so Bing decided that as a friend he would do a Kickstarter for his friend. The Kickstarter performed very well. Barbara then asked him what very well was for him. Bing said that the Kickstarter raised $800,000. The sharks thought that his evaluation was correct, the Kickstarter had gone very well. Daymond then asked Bing if he had licensed the All33 or bought it from his friend.
Bing said that he owned a percentage of the business. Daymond then asked him how much of the company he owned. Bing said that he owned about 5%. Barbara said that a premium chair in the market sold for about $2,000. She then asked Bing what the selling price of the chair was. Nick said that the chair was sold for $799.
Mark Cuban asked Bing what his margins were and what it cost to make them. Bing said that his profit margins were around 67% and the cost of delivery was about $260. Kevin still had a problem with the valuation and so he had to ask Bing how many chairs he was selling.
Bing said that in that year alone they had already sold chairs worth $3,500,000 and they expected to realize $5,500,000 in sales by the end of the year. Kevin then asked them how much profit they expected from the $5,500,000 sales. Bing said that they were slightly profitable in the second quarter and they expected to also be profitable in the third quarter.
Kevin said that he still needed some help seeing the value of the chair and he still could not understand why the business was valued at $20,000,000. Bing said that he was looking for cups for other companies that were in a similar space and they would have 3-4 times more revenue and he was certain that they would get there. Bing said that he had also talked to the market and it was not only his opinion that a $20,000,000 valuation was fair.
Daymond then asked Bing why he was there if so many people had given him that valuation. Bing said that it was because an investment from the sharks was better than an investment from anybody else. Daymond asked if they were being charged more because they were sharks. Bing said that he was not and he was even ready to give them a discount because they were sharks.
Daymond then asked if he could give a discount. Bing said that he was the CEO of the company and he was there to make a deal. Mark Cuban said that All33 was primarily a marketing company. They had their product and they had it right. The product also had its angles and differentiations. However, Mark Cuban did not want to be in the chair business and he felt that it was just not for him and for that reason, he left.
Barbara told Bing that if he had gone to the Shark Tank to sell a chair she would have bought a chair because he would have been the perfect guy. However, he was not there to sell a chair, Bing was there to sell a business. She felt that he lacked credibility because he only owned 5% of the business and he thought that it was a lesson for other entrepreneurs that they should not send a salesman to the Shark Tank.
Bing said that he had dedicated his life to the task and saying that he was simply a salesman was a bit of a denigration. Bing said that he was building a company and a movement in a sector that wasn’t there before. All33 was going up against the bigger companies in a fractured system that he looked forward to breaking.
Barbara said that she wished that she could see him making a category but she could not see it as a category. Instead, she saw it as a chair with a new design element. It wasn’t getting her excited in any way and for that reason, she left.
Lori then left and she said that the problem for her was the valuation. She thought that it was a bit too high and it was also a bit too soon to be investing in the business. Daymond followed suit and left because he was working with a larger company that was selling something similar and so for him, it would be a conflict of interest.
Kevin followed the other sharks and left because of the offer made. He said that he didn’t want to bargain and so he left. Bing said that he was offended by being called a salesman by Barbara and it was the least enjoyable part of his Shark Tank experience.
All33 Now in 2023 – The After Shark Tank Update
All33 did not need a deal from the sharks to continue doing business and was even featured in several magazines including Forbes and CNN. However, it looks like operations have stopped. The All33 website is no longer operational and the last time new content was posted on its social media was in November of 2022. What could have caused the closure of the business?
There are several factors that were working against the business and it reflects in the fact that none of the sharks wanted to invest in it. One of the problems was that the back-chair market was quite developed and so there are consistently new entries that could have proved to be more efficient than the ones in the market. Bing had said that he was not the inventor of the All33 and if the inventor no longer had any interest in the business then they would have been surpassed as other copied their innovations and improved on them.
On Instagram, All33 has over 3,400 followers and it was the only social media account that they have as far as we know. The business was located in Las Vegas and made an annual revenue of $1,400,000. There are substitutes but All33’s presence will be missed and hopefully, it will come back soon.