Why Did Shark Tank Pass On The Chub Rub Patch? Season 14, Episode 14

Why Did Shark Tank Pass On The Chub Rub Patch? Season 14, Episode 14

The Chub Rub Patch did not secure a deal on Shark Tank due to concerns over its niche market, high equity request, competition, and the product’s return rate.

During her Shark Tank appearance (Season 14, Episode 14), Brittany Lammon, The Chub Rub Patch founder, sought $200,000 for 30% equity in The Chub Rub Patch. She demonstrated the product’s effectiveness by explaining how the patch helps individuals avoid the painful experience of inner-thigh chafing.

Brittany shared key business insights:

• Manufacturing cost per unit: $2.12
• Retail price: $8.99
• Gross revenue: $105,000 in sales in the year prior to filming
• Return rate: 23%

She also explained that she planned to use the investment for marketing efforts, including social media ads and influencer partnerships. Unfortunately, none of the sharks saw the product as a good investment opportunity, and they all dropped out.

However, Brittany Lammon has continued to grow the business and successfully market the product through alternative channels.

The Chub Rub Patch is a product designed to prevent inner-thigh chafing, a common issue for many people. The product is a patch that adheres to the skin to reduce friction and discomfort.

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Here’s a detailed look at why the Sharks on Shark Tank passed on The Chub Rub Patch during its pitch in Season 14:

Reasons Shark Tank Rejected The Chub Rub Patch:

1. Product Validation and Market Fit:
   • Sales Performance: At the time of the pitch, Brittany Lammon, the founder, had achieved $105,000 in gross revenue. While this demonstrated some market interest, it was not sufficient to convince the Sharks of the product’s potential for rapid scale.
   • Product Niche: Although the Sharks acknowledged the product’s usefulness, they felt that the market for thigh chafing solutions might be too niche. This limited the product’s broader appeal and potential for large-scale success.
2. Investment and Equity Proposal:
   • High Equity Request: Brittany was seeking $200,000 for 30% equity, which implied a valuation of approximately $666,000. Some Sharks were concerned about the high equity stake required for the amount of investment and the associated risk with such an early-stage product.
3. Marketing and Competition:
   • Marketing Strategy: Brittany planned to use the investment primarily for marketing efforts, including influencer partnerships and social media advertising. The Sharks were skeptical about whether this would be enough to drive significant growth and differentiate the product in a competitive market.
   • Alternative Solutions: Mark Cuban and other Sharks noted that there are existing products and alternatives for chafing relief, which might impact the potential success of The Chub Rub Patch.
4. Financial Concerns:
   • Return Rate: Brittany mentioned a return rate of 23%, which raised concerns about product satisfaction and potential future issues with customer retention and profitability.

Shark Feedback:

• Kevin O’Leary: Was not convinced by the product or the business model and decided to drop out.
• Mark Cuban: Felt there were already established alternatives for chafing relief and was not interested in investing.
• Robert Herjavec, Lori Greiner, and Emma Grede: Also decided to pass on the investment, citing reasons such as the niche market appeal and overall investability of the business.

Post-Shark Tank Update:

• Business Status: Despite not securing a deal on Shark Tank, The Chub Rub Patch remains in business. The product continues to be sold on its website and on platforms like Amazon.
• Growth and Sales: The company has seen success in leveraging social media platforms for marketing. As of the latest updates, the business has estimated sales of around $2.5 million, indicating that the product has found a market despite the Sharks’ initial reservations.