When life gets too stressful, just rubbing it against a textured surface can calm you down. Michael Malkin invented Calm Strips, a tactile calming tool you can carry with you. After pitching it on Shark Tank, the founder landed a deal with Robert Herjavec. Calm Strips is now valued at $3 million.
Founder
Michael Malkin is from Newport News, Virginia, and holds a bachelor’s degree in English from Old Dominion University. After college, he became an English teacher in Newport News Public Schools and a store manager at Dell.
He also managed an Apple retail store, where he met Luce Fuller, who also had experience managing stores such as Starbucks and Coach. Fuller joined Apple as a specialist in 2013 but later left to take care of her five children and run an Etsy store.
Founding Calm Strips
While working at Apple, Michael often suffered from anxiety due to the busy work environment. His way of coping was to wrap his fingers with carpenter’s tape and rub them. This helped him calm down every time.
That’s because the sense of touch can help people relax and stay focused, Science explains. With this in mind, Malkin created low-profile, textured strips that stick to most surfaces. Calm Strips launched in 2020, and he hired Luce Fuller as executive director.
They sell their products in packs of five, with customers choosing between soft sand and river rock textures. Just one year into business, the company has hit $2.5 million in sales.
Shark Tank Appearance
Luce and Michael appeared in Season 13, seeking $250,000 in equity in exchange for a 10% stake. They did a good job in the pitch and introduced their product with a short animation.
The duo revealed that they have a very low return rate and a healthy profit margin. The Sharks were amazed at their lifetime sales. The company is making a ton of money! Despite the strong sales, Calm Strips sales are seasonal, as people are less stressed out during the summer.
Robert was the first to make an offer, but he wanted $250,000 for 35% of the profits. Too greedy! Of course, Kevin also offered to pay royalties, but he wanted them forever. In the end, they accepted Robert’s offer of $250,000 with a $2.50 per unit royalty until he broke even. Then, $1.50 per unit royalty until he made $750,000. It was a bad deal, and they agreed to borrow $250,000 and pay back $750,000.
After Shark Tank
Calm Strips saw a surge in orders after the Shark Tank episode. It appears the deal with Robert has not yet been completed, as Calm Strips is not listed under the Shark Tank investment category on his website. The royalties on the deal may have been too expensive.
Calm Strips has over 200,000 satisfied customers. The product is particularly popular in schools, with teachers and students in over 5,000 schools using it. It also appeals to those with body-focused repetitive behaviors and those with autism.
You can buy their products at CalmStrips.com, Amazon, Etsy, and a few small independent retailers in the U.S. The business has continued to expand and now has seven full-time employees.
Several of their packages have an average rating of 4 stars on Amazon. Some negative reviews highlight the lack of texture in the bars. The company has not released recent sales figures, but is currently valued at $3 million.
Categories: Shark Tank
Source: svlsf.edu.vn