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Erin Robertson came to The Shark Tank seeking $200,000 for 10% equity in her company, Ta-ta Towel. Erin invented this product after she was getting ready for a date and realize that she was sweating below her chest. When she would use a regular towel, she would just get hotter, causing the problem to get worse. She designed the Ta-Ta Towel to help absorb moisture and sweat, while not creating excess body heat from the user. This is a problem that well-endowed women often face.
In order to create her product, Erin learned how to sew from a YouTube video and began making prototypes in her living room. As the product grew, she decided to leave her administrative job, and work on Ta-Ta Towel full time. The Ta-Ta Towel organically went viral and spiked sales last year. In 2017 the company made $1.1 million. Now that the viral boom is over, the company is struggling to have a profitable year in 2018 with sales only summing $188,000 YTD.
Although the product is patented here and in China, and it is manufactured in LA for women by women, the judges are very concerned about the strategy behind Erin’s business. She currently has 10,000 units on hand. Kevin points out that it is very scary for an investor when a business has more inventory than they know what to do with. They comment that she doesn’t have a good long-term strategy and that hope is not an acceptable business strategy. They are also concerned with sales that are sliding backward instead of growing.
Among the criticisms from The Sharks, Lori Greiner surprised everyone by making an offer to Ta-Ta Towel for a 50/50 partnership. Because Erin already has one partner, she is hesitant to take another at that large of a share in the company. Without putting Lori’s army behind the product, the product may never get another viral following. She counters and they decide on a 40% share at $200,000.
The social response to this product was mostly supportive and the photos and videos of Mr. Wonderful in a Ta-Ta Towel will be around for years to come:
Did anyone notice @kevinolearytv kept his tatas on for the entire pitch? @tatatowel #SharkTank @ABCSharkTank
— Barbara Corcoran (@BarbaraCorcoran) October 15, 2018
I’m glad @tatatowel was able to make a deal with @LoriGreiner on @ABCSharkTank , I think that was a awesome deal for an awesome product. Being a photographer who photograph well endowed models I’m going to tell them about #tatatowels. #SharkTank
— BarriMedia (@BarriMedia) October 15, 2018
Tata towels! Where’s @TheSharkDaymond for this one lol @ABCSharkTank #sharktank
— Sherina Marie (@SherinaMarie87) October 15, 2018
https://twitter.com/JoeDillrd/status/1051646810467520512
As a Shark, I like to know that my entrepreneurs are in it for the long run, not just that one viral bump. @tatatowel #SharkTank @ABCSharkTank
— Barbara Corcoran (@BarbaraCorcoran) October 15, 2018
“50% of a watermelon is better than 90% of a grape” @mcuban | #SharkTank @ABCSharkTank
— Nick Stepanovich (@NickStepanovich) October 15, 2018
I see #tatatowel as a great accessory in the spa sauna rooms gym for more discreet #sharktank
— Jacqueline E (@helpbusinesses) October 15, 2018
What are your thoughts on the Ta-Ta Towel? Would you use this product? Sound off in the comments below!
For more information about Ta-Ta Towel’s deal with Lori Greiner or to review key business take-a-ways, from Shark Tank, check out this summation of the Shark Tank episode featuring Ta-Ta Towel. Shark Tank airs on Sundays at 9pm EST on ABC.