Tuesday, June 25, 2024

Chirp 2024 Update – What Happened After Shark Tank

Chirp Before Shark Tank

Tate Stock created Chirp, a yoga wheel that alleviates back pain, while he was still a student at Brigham Young University. He came up with the idea after seeing a similar yoga wheel at his aunt’s house. When he searched up the product when he got home, however, he learned that it was no longer being made.

So he took matters into his own hands. Wanting to recreate the product, he went to the store and bought some sewer pipe and a yoga mat. It took him several weeks but he was eventually able to recreate a similar yoga wheel. He subsequently posted them on Amazon without any logos or brandings. And to his surprise, they sold quickly. Within two weeks, he had made more than $12,000. However, he soon ran into a problem; he wasn’t able to create and ship the products fast enough, which led him to be kicked from the site.

As it turns out, it was a blessing in disguise as it forced Tate and his team to make their own website. They also hired a few fitness influencers to promote the wheel for the first year and a half, which landed them $100,000 in sales.

By 2017, Tate had begun consulting with chiropractors and doctors about the product; he also rebranded the wheels to be a back stretching device. By then, they were selling approximately 500 units a day. They soon realized, however, that shipping costs were eating into profits so they decided to start their own fulfillment platform called ShipStud.

The following year, they launched a Kickstarter campaign that successfully raised more than $1.5 million. This allowed them to rebrand the company from the Plexus Yoga Wheel to Chirp. They also expanded their products to include pain relief items.

Eventually, their product caught the attention of the show’s producers, who invited them to pitch in the tank. However, they still had to go through the audition process, which consisted of several interviews and
“lots of paperwork”.

Several weeks later, they received the call that they would be featured in the twelfth season.

Chirp on Shark Tank

Tate walks into the tank with his friend. Once inside, he introduces himself as the founder of Chirp, and tells them they’re to discuss back pain, which he describes as a “very serious matter.”

Continuing, he explains they created the Chirp Wheel, the world’s simplest back pain reliever. As he says this, the camera zooms in on a few wheels that they have on display, all of which are of different sizes. He also tells the sharks that they will show them how it works.

chirp shark tank
Tate Stock and his friend, the latter of whom is covered in bubble wrap (the bubbles representing deep muscle knots)

Before he does that, however, he turns their attention to his friend, who is covered in bubble wrap. He explains that the bubbles represent hard-to-reach muscle knots in the back and neck areas. His partner then lowers himself to the ground and uses a foam roller, which Tate explains, is what most people go for when they have back pain. However, he explains that it doesn’t provide enough pressure for deep tissue back pain relief.

His friend goes on to reach for the Chirp wheel, which immediately begins to pop the bubbles aka “deep muscle knots” as soon as he starts using it. Robert seems impressed.

Grabbing one of the Chirp wheels, Tate explains that the product is designed to “fit perfectly between the shoulder blades” and that it comes with compression-sensitive padding. and a patent-pending spinal canal that relieves pressure off the spine by stretching the muscles in four different directions. He tells them the Chirp wheel comes in three different sizes: 6″ (Deep Tissue), 10″ (Medium), and 12″ (Gentle), and that each of them applies different amounts of pressure.

He reveals that they’ve already sold more than a million wheels and tells them he’s looking for $900,000, in exchange for two percent of the business. The sharks are noticeably surprised by the high valuation.

Seconds later, Tate invites Robert up to try the 10″ medium wheel. Directing him toward the yoga mat, he tells him to sit all the way down on the ground.

Robert takes off his blazer before getting down to try the wheel. Tate is also demonstrating how it works beside him. He reminds him to keep his arms on the ground and tells him he can also “just sit there” if he rolls it all the way down to his hips. Robert is amazed and notes that it “really works”.

chirp wheel 2
Robert giving one of the Chirp Wheels a try

Lori asks him what it felt like and he tells her “it’s way better than what [she] thinks.”

Kevin is the next shark to speak; he asks Tate about the company’s $45 million valuation. Tate reveals they’ve already done $12 million in sales so far this year and $4 million in profits. The sharks are stunned by the numbers. Continuing, Tate tells them they’re expecting to do $40 million in sales with $12 million in profit by the end of the year.

Lori questions what he needs from a shark with those numbers.

Tate says they know things that he doesn’t know and would love the opportunity to work with an experienced entrepreneur. The sharks laugh at his explanation.

Tate continues and says they also need help with their hypergrowth as well as funding for P.O.s. The sharks are skeptical and note that he already made $4 million this year. Mark also asks him where they’re getting their P.O.s from. Tate tells him it’s all B2C as they mainly sell through their website.

Asked how they’re marketing to customers, he explains that they mainly advertise through social channels such as Instagram and Facebook. He also reveals that the cost to acquire a customer is between $20 to $30. With more probing, he also reveals they’ve spent $3 million on marketing so far this year.

Tate tells them that during COVID-19, they had three months of inventory, which they sold out within three weeks. This led to a lack of inventory, which cost them $4 million a month in sales.

Mark asks him about the price of a three-pack. Tate explains that the three-pack retails for $99 (approximately and that their landed manufacturing costs are $21.96 (approximately $6, $8, and $10 for individuals).

Asked whether or not the wheels are made in China, Tate says no, that they’re manufactured in Taiwan. He also reveals that they have no debt and no partners, which causes Daymond to become skeptical about why he’s actually in the tank.

Tate reassures him that he’s here to make a deal. Daymond asks him what sets him apart from failing businesses that “really” need the money. Tate defends by saying that everyone needs a Chirp wheel at home.

Mark also steps in and says he might want the money to hire more people.

Tate once again reassures them that he’s here for a deal- that he’d like to receive a “creative offer” from one of the sharks. He also adds that they’ll be able to make their money back fast; to the point where they’d be able to get their money back by the end of next year.

Right away, Lori offers him a deal that’s contingent on those terms.

chirp wheel 3

Kevin notes that he can help him lower his customer acquisition costs by 15 percent and offers him the $900,000 for 2.5 percent equity and a royalty of $3 per unit until he gets back his money. He also points out that his offer doesn’t come with any time constraints like Lori’s.

Daymond says he likes to give opportunities to those who are just starting out and for that reason goes out.

Mark believes their valuation may not be justified as their sales may have been bumped up due to a “COVID element” and for that reason also goes out.

Tate thanks them for their time and turns their attention to Robert, who praises him for the sales that he’s done so far. The shark isn’t sure how long his success will last but tells him he’d like to “go along for the ride” and gives him an offer- $900,000 for three percent of the company, and a payback of $1.50 for every wheel sold until $1.2 million is recovered.

Tate asks if Lori and Robert would consider going on a deal together.

Lori isn’t keen on having a partner; she repeats her offer to him instead and emphasizes that $500,000 will be repaid this year and $500,000 next year. On a whim, she also raises the equity from two percent to two and a half percent.

Robert pitches his deal next. He tells Tate it’s the first time in twelve years that he’s offered a royalty deal.

With that, everyone looks at Tate as he is forced to make a decision.

Tate decides to counter Lori. Instead of repaying $500,000 this year and $500,000 next year, he proposes that he repay $400,000 this year and $500,000 next year and that they do it at two percent equity. He also reiterates the fact that she will get her investment back in the next 18 months without any risk.

chirp wheel 4
Tate and his bubble-wrapped friend celebrates after leaving the tank with a deal from Lori

Lori counters with two and a half percent.

After some urging from the sharks, Tate accepts her offer. The rest of the sharks congratulate them on their deal before he and his friend both exit the tank.

Chirp Now in 2024 – The After Shark Tank Update

As far as we can tell, the deal with Lori never went through. In fact, many believe that Tate was only on the show for the exposure- that he never intended to work with the sharks.

Fast forward to 2024 and the business is still thriving. In fact, they just recently announced a new product called the Chirp wheel Pro, which according to their press release, “features a vibrating core with three power levels that will penetrate deeper into the muscles and increase blood flow for a faster recovery.”

That’s not all, they’ve also released the Chirp Weel XL – Super Comfort, which features a thicker foam (50% thicker than the original Chirp wheel) for additional comfort and a 30 percent wider base (7″) for added stability and better weight dispersion for a more gentle tension release. It currently retails for $69.99, or you can pay 4 interest-free payments of $17.49.

They’ve also started selling “The Ultimate Back + Neck Bundle”, which includes a 12″ Chirp Wheel, 10″ Chirp Wheel, 6″ Chirp Wheel, 4″ Chirp Weel, a posture corrector, as well as a case, for $185.99 (it is currently discounted to $129.99 at the time of this writing).

chirp wheel
Chirl offers a variety of bundle packs, in addition to the Chirp Wheel XL, which features a wider based for added stability

And like before, they also have a 3-pack and a 4-pack, which consists of the Firm, Deep Tissue, and Focus and Stretch, Firm, Deep Tissue, and Focus respectively. The former is a top seller and retails for $99.99 while the latter goes for $129.99 (currently on sale for $119.99).

For those who are interested, you can check out their website at gochirp.com. They also offer international shipping (customers are responsible for paying customs).

For those who’d rather buy on Amazon, the wheels are also available on the site and they come with free Prime shipping. They have many positive reviews as well. Take their newest Chirp Wheel XL, for example, it currently has a 4.5-star rating on Amazon, with several users praising the wider wheel for being easier to use.

chirl wheel amazon
The new Chirl wheel XL currently has a 4.5-star rating out of 24 reviews on Amazon

It’s worth mentioning, however, that there are several copycats on the site, many of which are actually cheaper than the actual product. For example, there’s one by “Blackroll”, which is priced at $31- less than half of Chirp’s retail price.

As for the company’s current valuation, it’s estimated to be worth somewhere between $45 million and $50 million, which is significantly higher than the valuation the sharks gave it on the show. Needless to say, they’re doing reasonably well for themselves, which isn’t surprising, given the numbers that they came into the tank with.

Brooke Carter
Brooke Carter
Freelance writer who loves dogs and anything related to Japanese culture.
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