It can be hard to dig through a big purse in search of one’s smartphone. That’s why Kelly Coughlan and Jenn Deese designed a stylish phone case that doubles as a tiny purse. Will they earn a deal on
Shark Tank Pursecase Update
- Entrepreneurs: Kelly Coughlan, Jenn Deese
- Business: Phone case with built in purse
- Ask: $55,000 in exchange for 12% equity
- Result: $55,000 in exchange for 15% equity
- Sharks: Lori Greiner
Jenn explained that she and Kelly came up with their Pursecase because they needed a way to carry their phone and just a few essentials when they didn’t want to lug around a bag. The two friends designed a phone case with a chain handle, a lipstick mirror, and a pocket for cards and cash.
In three months, they sold $30,000 worth in pre-orders alone, and Jenn projected their first-year sales to be $240,000. The cases cost $4.42 to make, wholesale for $15, and retailed for $38. Their profit margins were 88% when sold on their website, and 71% when sold in retail.
Kelly said that a manufacturer approached them about their idea, offering a $1 million line of credit in exchange for 15%, which the women accepted.
Robert Herjavec told the women that he had seen phone cases like theirs in cheap shops all over Europe. Barbara Corcoran explained that she would have liked it more if it lost the snap flap and had a pocket for change. Mark Cuban said he preferred not to invest in electronics accessories, as product configurations and peoples’ tastes were constantly shifting. Robert, Barbara and Mark were out.
Kevin O’Leary balked at the $38 price tag and told the two that they could sell ten times as many if they cut the price in half. He offered a deal anyway of $55,000 in exchange for $1 of every sale, until the loan was paid off, at which point the royalty would drop to .75 cents for perpetuity. The women didn’t accept.
Lori Greiner told Kelly and Jenn that she sold hundreds of thousands of a very similar product on QVC, and she thought she’d be able to sell Pursecase, too. She offered $55,000 in exchange for 15% equity, and Kelly and Jenn happily accepted. What happened next for their company? Keep reading our Pursecase update to find out!
We have sad news to share! While the company enjoyed success for a time, it seems as though Kelly and Jenn’s relationship couldn’t bear the strain of the company’s rapid growth. Kelly ended up buying out Jenn’s shares and in 2015, Kelly was profiled in Season 2 Episode 11 of Beyond the Tank, saying the company was ready to get back on track. Unfortunately, the company ultimately went out of business, so this will be our final Pursecase update.
Would you like to learn about the other companies featured on Season 5 Episode 10? Follow the links below for our other company updates from the episode.
We’ve partnered with six companies to put together a Shark Tank Stocking Stuffer Box that’s worth $100! Here’s everything that’s in the box:
- Sheets Laundry Club Travel Packs x2
- Honey Bee Bars - 12 Pack
- Snactiv Finger Chopsticks
- FryAway Cooking Oil Solidifier
- Pizza Pack
- Nature’s Wild Berry Sampler Pack
For even more on companies and products, be sure to stop by our Season 5 Products Page!
Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!