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Crochet Kit Woobles Shark Tank Success Story: How a Simple Idea Made It Big

The Woobles, the first learn-to-crochet company, appeared in the Shark Tank Season 14 episode 2. The Woobles stepped into the ‘Tank’ to present its innovative crochet kits designed to make learning the craft easy peasy, and fun.

Woobles Shark Tank Facts

  • Shark: Mark Cuban, Lori Greiner
  • Investment: $450,000 for 6%
  • Valuation: $7,500,000
  • Season, Episode: 14, 2

Woobles Shark Tank Overview – Everything You Need to Know

The husband and wife founders, Adrian Zhang and Justine Tiu, pitched in Season 14 Episode 2  and introduced their innovative crochet kits that simplify learning to crochet through fun kits. It was with complete step-by-step video tutorials and all the necessary materials. Also, the kit comes with yarn and other necessary crochet material. All this material was supportive and fantastic in learning as customers are adults. 

Our product lineup has been well-received. It is demonstrated by the 1,700+ 5-star reviews and the creation of limited edition kits following the appearance on Shark Tank. We take pride in making crochet accessible and enjoyable for a wide audience. This allows us to foster a new community of crafters.

Founders’ Pitch

During their pitch, Justine Tiu and Adrian Zhang sought $250,000 in exchange for 5% equity in their company. This means that the valuation of the company based on the request was $5,000,000. They explained the business side of The Woobles to the sharks. They detailed what types of items were included in their kits to learn how to crochet, such as crochet hooks, stuffing, and easy peasy yarn needles. 

They also revealed their desire for wholesaling opportunities and also looked for help with licensing. The pitch was well-received, with one Reddit user describing it as one of the top five pitches in Shark Tank history from the entrepreneur’s end. The sharks were actually impressed with the couple’s business savvy and the potentials of their product.

The Woobles Shark Tank pitch was simple yet powerful. We aimed to highlight not only the educational value of our product. But also its ability to foster creativity in people of all ages. They had the Sharks hooked with:

  • The uniqueness of The Woobles
  • Demonstrable growth and sales
  • Our vision for company expansion

By the time Woobles appeared on Shark Tank, they had already generated $ 5.3 million in sales. However, this represented the total revenue of the company since its inception. The company had brought in $3.1 million in revenue in just the past year before their appearance on the show

Sharks’ Investment

During the pitch, the Sharks asked questions about investment value, business model, and the product’s market viability.

Negotiation Outcome

Their primary concern was to understand whether the investment would yield a substantial return or not. There were a few offers from the sharks, including Kevin O’Leary offering $250,000 in exchange for 10% equity, and Barbara Corcoran raising the initial investment to $300,000 but keeping the 10% equities prompted by Kevin. Lori Greiner also proposed an initial deal at $300,000 for 10%. The Woobles founders then had another shark coming in with Barbara, who teaming up with Mark Cuban for $350,000 at 6%. In response to that, Lori teams up instead with Robert Herjavec offering even more money, $450,000 at 6%, thus increasing the company’s valuation. 

With a surprise twist, in true Shark Tank fashion, the co-founders Tiu and Zhang asked for the Lori Greiner and Mark Cuban dream team. And they did indeed make a deal from investors Mark Cuban and Lori Greiner for $450,000 in exchange for a 6 % stake. This effectively shifts the valuation from $5,000,000 to $7,500,000…an increase of 2.5 million dollars!!

Read More: https://www.looper.com/1376321/whatever-happened-woobles-shark-tank/

 “It turns out Cuban and Greiner was their target from the beginning,” said Zhang.

Woobles Business Model

Retail and E-commerce

The primary business model of The Woobles is retail, selling their products directly to consumers through their online platform. By offering a range of crochet kits along with step-by-step video tutorials that come with crochet pattern PDFs, Woobles made it easy to guide customers through the process of creating a plush toy

The Woobles Shark Tank episode also indicated how they positioned themselves as an ed-tech startup, leveraging digital learning to ensure a controlled first-time experience for customers. This educational aspect is a core part of their business, as they aim to not only sell kits but also to improve how people master new skills more broadly.

Overall, thanks to the exposure from Shark Tank translated into increased visibility for them.  Their story was covered by Looper, noting the quite sweet and unique deal at this time. 

Product Expansion and Partnerships

The company has expanded its product line to include a book titled “Crochet Amigurumi For Every Occasion,” which features 21 products with mostly new patterns for complete beginners. They have also begun participating in partnerships and character licensing to further grow their brand.

Manufacturing and Supply Chain

To support their growing business, The Woobles has expanded from a single warehouse to a 15,000-square-foot warehouse to accommodate inventory and operations. They have also hired a China-based team of crocheters to create the base stitches for and assemble their products, indicating a focus on scaling production to meet demand.

Customer acquisition cost and margins

The Woobles Shark Tank episode explained how the company has a customer acquisition cost of $16 per customer. Each kit costs them around $3, and they sell it to wholesale partners for around $15. With direct to consumer and an average sale value of $57, their profit margins can be broken down as follows:

  • Gross profit margin: 86% 
  • Net profit margin: 32% 

These margins indicate the percentage of revenue that remains after accounting for the cost of goods sold (COGS) and other expenses. The gross profit margin represents the difference between the revenue generated and the cost of goods sold, while the net profit margin considers all expenses, including operating costs, taxes, and other financial obligations.

Woobles – What Happened After Shark Tank?

Following their appearance on Shark Tank there are a few interesting developments. 

They did not want to close!

While at Shark Tank Woobles got a handshake deal from investors Mark Cuban and Lori Greiner, the deal never went through. Mark Cuban confirmed that the investment never happened. Cuban said in an interview with Bizjournals that “it was their choice”, and Woobles decided to continue on their business trip without the help of the Sharks.

Business Growth

The night the episode aired, Woobles proudly released “Tank the Shark”, a friendly shark crochet kit dedicated to their Shark Tank appearance. The finished item is roughly 3.5 in tall. It was sold out the night of the show. At the time of writing, January 2024, the friendly shark is back in stock

the woobles shark tank kits

As part of their business growth, the crochet kit company also established partnerships with PAC-MAN. Thanks to this, they were able to create kits for PAC-MAN, Blinky the ghost and cherries. This was so well received that it sold out in the pre-sale phase. At the time of writing, the PAC-MAN kits are back in stock together with other collaboration products. The total number of current kits developed thanks to collaborations, as of January 2024, is 47.

Customer Reception

Woobles got what they wanted from Shark Tank, and it goes beyond exposure. They got customers that love these kits. A ton of people have learned crochet thanks to them. We don’t have the number of the total number of customers since their launch in 2020 Customer reception has been overwhelmingly positive with the business garnering over 1,700 5-star reviews. The sentiment reflects the brand’s success in making crochet accessible. This was highlighted by their own Woobles Shark Tank page. Their hands-on approach to teaching crochet has cultivated a loyal customer base that appreciates the quality and variety of the crochet kits.

Competitor Analysis

the woobles shark tank competitive analysis

Analyzing the competitive market landscape, several competitors fight for a share in the crafting market. Despite The Woobles Shark Tank episode making headlines, they still have to compete with their competitors. The Woobles stand out due to their unique approach to crochet. It gained significant exposure to Shark Tank for the company.

Our competitors typically fall into two categories:

  • Craft Kit Producers: Companies that produce similar craft kits aimed at consumers looking for a complete package to begin their crafting journey. We differentiate ourselves with our focus on crochet and our user-friendly kits designed for beginners.
  • Digital Learning Platforms: Sites that offer tutorials and classes in various crafts, including crochet.

Some of the main competitors include:

  • LoveCrafts UK: This is a popular knitting and crocheting store that competes with The Woobles.
  • KnitPicks: Another competitor in the knitting and crocheting market, offering a variety of products similar to what The Woobles Shark Tank episode showed.
  • Yarnspirations: This brand offers a variety of yarns and patterns for knitting and crocheting. The Yarnspirations Bernat is a tube yarn that is nearly identical to the Woobles easy peasy yarn.
  • I Like Crochet: This is another competitor in the knitting and crocheting market. It offers a variety of crochet patterns and resources.
  • Purl Soho: Known for its stylish knitting kits, Purl Soho is another competitor in the market.
  • Wool and the Gang: This brand offers modern and trendy crochet kits, making it a competitor to The Woobles.
  • ArtSugar: This Manhattan-based company, founded in 2017, is also a competitor of The Woobles.

Frequently Asked Questions

What is the backstory of The Woobles on Shark Tank?

The Woobles is founded by Justine and Adrian. It captured the interest of the Sharks with their innovative crochet kits designed for easy learning. They came up with the slogan to learned crochet with The Woobles. Their appearance on Shark Tank gave them a unique platform to showcase their vision of making crochet fun and accessible. 

How successful has ‘The Woobles’ been since appearing on Shark Tank?

Since being featured, The Woobles has experienced significant growth in popularity. Their unique approach to teaching crochet has resonated with customers. Also, they’ve continued to expand their business in the aftermath of their Shark Tank exposure.

What products do The Woobles offer following their Shark Tank episode?

Following their Shark Tank debut, The Woobles began to offer a variety of crochet kits. The kits feature all the necessary materials and video guides to cater to both beginners and experienced crafters alike. They are user-friendly as both left-handed and right-handed individuals can easily work with these kits. Their product line aims to provide an enjoyable learning experience in crafting handmade crochet items. Like amigurumi, the art of creating crochet aminals. With the help of crochet kits, people can create different animals and have a fun activity for daily routines.

Are customers satisfied with The Woobles products based on reviews?

Customer reviews have been overwhelmingly positive. It highlights the quality of the crochet kits and the effectiveness of the instructional content. Their products have garnered a reputation for being both fun and educational. All this leads to a strong base of satisfied customers. Reviews reflect their appreciation and enjoyment of the products.

What is the estimated net worth in 2023 after The Woobles Shark Tank pitch?

The numbers regarding The Woobles’ net worth in 2023 are not publicly disclosed. The Woobles disagree with discussing the status of the deal and their net worth publically. However, the company has reportedly seen a substantial increase in valuation due to its growth and success post-Shark Tank.

Can individuals or beginners sell products made from The Woobles crochet kits?

Individuals are welcome to sell the products like Shark Wooble beginner kit that they make from The Woobles crochet kits. However, it is always best practice to credit the original design and patterns to The Woobles. To respect intellectual property and the effort put into creating these unique crochet designs.

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