Sunday, April 21, 2024

Boho Camper Vans After Shark Tank Update 2024– Where Are They Now

Boho Camper Vans Before Shark Tank

The Boho Camper Vans business was started in the early spring of 2018 by David Sodemann, a former content and marketing manager. A van that David rented while on vacation inspired the idea to start the company. He wanted to bring that experience to his hometown of Tempe, Arizona. He got his friend, Brett Ellenson, to do the van build-outs.

David continued to work as a marketing manager for Kindred Cannabis, an Arizona marijuana dispensary, for a few months as he got Boho Camper Vans off the ground. According to his LinkedIn profile, he left that job in October 2018 to pursue his dream full-time. The vans made the pages of local papers and travel journals and were finally featured on Shark Tank.

Boho Camper Vans on Shark Tank

The Entrance and Presentation

boho camper vans on shark tank11 Brett Ellenson and David Sodemann walked onto the stage and into the Shark Tank. They introduced themselves and their Arizona-based company Boho Camper Vans. In exchange for a 10% equity stake in the business, the pair of entrepreneurs asked for a $300,000 investment.

Brett claimed that their company and product were changing how people travel and live by allowing them freedom. David said that people hear the word freedom all the time, but most people do not get to experience the concept truly. Most people are drowning in debt, have an inflexible work schedule, and are just trying to keep up with the cost of living.

David continued, stating that most people feel like they will never catch up and are just living today trying to survive. This shoestring existence was not an excellent way to experience life. Brett said that BoHo Camper Vans allows people to share that freedom, renting the vans at a three-night minimum and selling their creations to people looking for a portable tiny house experience.

Boho Camper Vans provide short-term adventure or the ability to live on the road full-time. The business could accommodate either need. Each van came with comfortable beds, kitchenettes with appliances and running water, solar-powered electricity, pull-out countertops, and more.

Brett said that the best part was you could take them anywhere. Dave noted that mobile living was not a new concept, and Boho Vans stood out because they cater to a broader demographic. The vans were affordable, easy to drive, and Instagram-worthy.

David asked the Sharks which one of them wanted to help people live more with less and if they wanted to join the movement. Brett invited them up onto the stage to check out the van.

Question and Answer Portion

boho camper vans shark tank 1 All of the Sharks jumped up excitedly to check out the van. Barbara joked that she wanted the entrepreneurs to lock them all in there. David said they tried to make it look like a tiny home.

The camera panned to a comfy-looking bed. Lori and Mark climbed in first – Mark sat on the bed, and Lori sat in a seat in the kitchenette.
Lori asked about the running water. The guest Shark, Rohan Oza, tried out the sink and declared it worked.

Mark asked what it would take to do a shower area, and the entrepreneurs said they had one out the back of the van and would love to show it to him. In the back of the vehicle, they had fully functioning showers, butcher block countertops for food prep, and extra storage. Lori wanted to know what had inspired them to start the business in the first place.

Phoenix was a big tourist area where people rent cars and go to the Grand Canyon. They would attempt to get lodging in the area, but the accommodations wouldn’t always be the greatest. David decided to call up Brett, a friend he knew could build things – David referred to Brett as a master of his craft. The two discussed the details, bought a van, and started experimenting with the build.

Brett said that his background was in machining and fabrication, and he had been doing tool-and-die work since he was a young teenager. David said his experience was in design and marketing. Both of them had started the business as a passion.

They intended to make a little money on the side if they weren’t using the van themselves. They were able to book out the van so much that they could not use it themselves. Once customers booked that van, they built out more and started renting those out.

They had five vans in their rental fleet and have sold 12. Rohan wanted to know how much they rented it out and how much money they put into each one. David said it equaled about $200 a night, with a 3-night minimum.

Brett said they spent about $20,000, sourced the vans used, and did all the building himself. Barbara asked how much revenue they could generate in a year with that $20,000 van, and David said they were doing about $2000 a month per van, which means they got their money back in about 8- 10 months.

Boho camer vans shark tank2 Mark wanted to know how many they’ve sold as tiny houses for people to inhabit. Brett said that it was 6 of the 12 vans that they had sold. The Sharks seemed surprised, but David wasn’t. He saw the vans as mobile real estate or the next living level.

Rohan wanted to know what gave them an edge over and a difference over similar companies and inquired about how they would scale the business model over time beyond one master craftsman. David said the vans were affordable compared to others in the space.

He said that others had reached out to them, wanting to get on their list to build a van. Lori asked what fitting the van out would cost, and David pointed to the model they had brought with them and conveyed they’d bought it for $15,000 used and would charge $29,000 for the buildout.

Lori continued, asking how long it would take them to convert it into something livable. Brett said that they had their process down to a three-week time frame. They had zero debt for the business. They made in the last months about $195,000 net, and their sales total for the calendar year of 2019 was $493,000.

This impressed the Sharks and earned congratulations from Mark Cuban. Rohan wanted to know what they planned on doing with the $300,000 investment from the Sharks. Brett said he planned on taking any money they got from the sharks, and he would put it into manufacturing.

He planned to have the finished pieces ready to go in the van. That way, they could hire installers, and everything would be prefabricated. Kevin, of course, wanted to know more about the numbers. He asked how much an investor would be able to make the following year.

Brett said that at the end of the year, they projected to be at $800,000 in sales. The following year, they were projecting $1.9 million. They thought they would make $1 million pre-tax based on their current margins. Barbara asked them why they didn’t have more competitors, and David said they talked it over and thought it was time, space, and the know-how to do everything.

Let’s Make a Deal

boho camper vans on shark tankk Rohan started the negotiations, saying that he was in. He said that while he loved their numbers, they were only doing about $500,000. They were asking for a valuation of $3 million, and he called it a “sporty valuation.” Mark Cuban disagreed, saying it wasn’t a stretch if they would make a million in profit next year.

Kevin pointed out that that number assumes everything would work perfectly and interrupted Rohan. Rohan looked mad and asked for the pair’s attention since Kevin was gauging them, and he was about to make a serious offer. Rohan said that they needed to get to a more reasonable and fair valuation. He didn’t think it should be a third, but he asked for 25%. In exchange, he would bring his skills in marketing and awareness building.

Mark Cuban stepped out, stating that he thought it was a great business for them, but didn’t see it as investable. Kevin went up next, saying he should be the third partner at 33.33% the way he saw it. He offered $300,000 for a 1/3 of the business, rationalizing it by stating that he was Mr. Wonderful.

Lori pointed out that the entrepreneurs did not look happy with that offer.
After Barbara offered, he said he could be way more creative than she had been. He offered them a $300,000 loan at 9% for two years, and then he wanted 7% equity. Mark Cuban grinned and said they would be able to walk into a bank and get it for less than what Kevin was offering.

David said that they prided themselves on being debt free. Lori said she needed to think for a minute but loved the van idea. Lori offered $300,000 for 20%, but her offer had a caveat. She wanted a charitable component for a cause that assists the homeless.

David said that he loved that idea, and they’ve wanted to align with a social cause. He asked her if she could go down to 15% with the same rules, and Lori said it was too low. Barbara said that she didn’t believe they needed a partner at all and they just needed cash.

She believed in their plan and their projections. She offered them exactly what they wanted – the $300,000 for a 10% equity stake. She would give them $150,000 cash upfront and then $150,000 in a credit line. She would continue to fund the growth as long as they kept expanding at that rate.

Amid all the debating, Barbara said that her offer was the best one since she gave them everything they needed, and no one could market better than her. The pair of entrepreneurs talked amongst themselves and ultimately decided to go with Barbara.

Boho Camper Vans Now in 2024 – The After Shark Tank Update

boho camper van after Barbara provided the two entrepreneurs with $300,000 to fund the pre-production phases of the van components. This change to the process gave Brett, a master carpenter, a break from his labor, allowing other workers to complete the work efficiently. Brett and David continued to work hard, prompting Barbara to tell them, “You’re one of the entrepreneurs when I go to bed at night that I don’t worry about.”

In the year before appearing on Shark Tank, Boho Camper Vans did just under $500,000 in sales. In 2020, despite the pandemic, they still managed to pull in $1.4 million in business. Profits took a steep decline, and they began to lose thousands daily. Instead of getting discouraged and giving up, the pair decided to give away some vans to first responders in their local area.

On their website, Boho Camper Vans has the option to book a trip starting in one of two locations – either Phoenix, AZ, or San Diego, CA. They have gorgeous vans that sleep between 2 to 3 people. They cost up to $230 to rent for the night, with a three-night minimum.

The website lists the option to design your van build or purchase a rental used on the road for a year. These could be used as a secondary vehicle to travel or a more mobile tiny home to live in. Love the product and the message but are not ready to put down that much money? Boho Camper Vans also offers fun t-shirts that support charity.

Ariel Leather
Ariel Leather
Ariel is a freelance writer, Etsy seller, and Internet money-making quasi-expert living in New Jersey. She is pursuing her A.A. In Marketing at Brookdale Community College. Ariel enjoys traveling, hiking, unnecessary impulse purchases, and making things with her hands.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here