If you have kids in your life, you know how quickly they can get bored of toys. Because of this, Nikki Pope created a toy subscription service. Will she get a deal on
If you’re short on time, here’s a quick overview of what happened to ToyGaroo after
ToyGaroo appeared on
|Kevin O’Leary and Mark Cuban
|Accepted deal of $200,000 for 40% equity
Shark Tank ToyGaroo Update
- Entrepreneur: Nikki Pope
- Business: Toy subscription service
- Ask: $100,000 for 10% equity
- Result: $200,000 for 40% equity
- Shark: Mark Cuban and Kevin O’Leary
Nikki brought ToyGaroo to
This led her to create a toy lending subscription service, the only one of its kind in the country.
Intrigued, Barbara Corcoran asks to see one of the toys. When Mark Cuban asks how many toys there are in the catalog, Nikki tells him there are over 300 types.
Nikki further explains that cleaning is the most important aspect of the company. For this reason, ToyGaroo assures that each toy is sanitized, and shrink-wrapped before delivery to another child.
When asked about toys breaking, she says that has only happened once in the previous 6 months. However, if a toy breaks, they would sell it to the customer at a discount.
Kevin O’Leary wants to know how the company makes money. Nikki says the monthly membership fee starts at $35 and goes up to $89.
The high price surprises the sharks, so Kevin wants to know about enrollment. Nikki tells him that they have a test launch of 500 members, who pay $42 a month for a toy box worth over $200.
She says the total cost is less than a family usually spends per year on toys. Kevin then asks how the business could be scaled up.
Nikki wants more marketing and more exposure. Kevin asks how much he would have to spend on just toys per $1 million in sales.
Nikki tells him it will be $64,000 for the toy inventory, for a year of toys. Kevin then asks Nikki how much of the company she owns, and she reveals only 10%, with her husband owning the majority at 50%.
Daymond goes out based on prior bad experiences with non-controlling partners.
Kevin makes an offer of $100,000 for 35% equity. Then, Robert Herjavec and Mark Cuban decide to partner up.
They offer $200,000 for 40%, which makes Barbara go out because she says she was about to offer less.
As things heat up in the tank, Kevin highlights the importance of his experience in the toy business, while Mark highlights his own social media and internet presence. Then, Nikki asks Kevin if he is sticking to his offer.
Just then, Kevin partners up with Mark, leaving Robert out of the deal, and they offer her the same deal, $200,000 for 40%. Nikki accepts, and leaves the tank with a deal!
Do you think ToyGaroo succeeded following
Our ToyGaroo update shows that the company, unfortunately, folded within a year of Nikki’s appearance on the show. While they did benefit from an uptick in sales immediately following the show, they ultimately could not handle the demand.
Further, it seems that the owners of ToyGaroo and the sharks, could not agree on business decisions such as shipping costs for instance. Overall, the idea was a good one, but it seems the business plan just couldn’t be fully carried out.
This will be our final ToyGaroo update.
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Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!