Who would have thought that a poop tool would become one of the most successful products on Shark Tank? Squatty Potty is a footstool that helps you poop in a comfortable position. It was launched by mother and son duo Judy and Bobby Edwards. As of 2024, Squatty Potty is valued at $50 million.
Family business
While Judy and Bobby are the founders of Squatty Potty, they are not the only ones involved. Family patriarch Bill Edwards is also involved in running the Squatty Potty business in St. George, Utah.
Judy suffered from hemorrhoids and constipation, and it was difficult for her to go to the toilet. The doctor suggested that she try squatting, but it turned out to be difficult.
Judy and her family realized that the problem was that they were used to sitting to defecate, not squatting, so they wondered if they could squat to defecate while still using a regular toilet in an American home.
Founding of Squatty Potty
Bobby, a contractor and designer, used his skills to design a stool that elevates the user’s feet and knees, allowing them to squat while using the toilet.
Edwards and his wife gave similar stools to family members and acquaintances, who immediately felt relieved. That’s when they decided to make Squatty Potty their family business.
They used their garage as their base of operations. Bobby ordered many of the supplies online and began selling stools through their website. This helped them make $1 million in their first year, $2.2 million in their second year, and $2.7 million in the first half of 2014.
The stool that caught the shark off guard
In 2014, Bobby and Judy went on Shark Tank and asked for $350,000 for 5% of their company. They showed how the traditional toilet seat exacerbated digestive issues. They hoped to raise money to get the FDA to approve the product as a medical device.
Multiple studies have confirmed the benefits of their product. By promoting bowel movements, squatting can help relieve constipation and eliminate hemorrhoids. These claims attracted 158,000 viewers, who reportedly visited their website after watching the episode.
When it came to how well the product sold in its first few years, the Sharks were stunned. Kevin O’Leary joked that it was the first bad investment he actually liked. This prompted a number of offers, but Lori Greiner ultimately won the 10% stake with a $350,000 bid.
Lori Greiner helps Squatty Potty reach new heights
They earned $1 million in two days of marketing. Bobby and Judy starred in the spin-off Beyond the Tank, which chronicled how Lori Greiner helped get Squatty Potty into more than 11,000 Bed, Bath & Beyond stores.
The Edwards family also introduced other designs and products that brought new growth opportunities to the company. They created constipation medicine, deodorant, and bidet spouts.
In May 2021, Squatty Potty was acquired by Aterian for $31.1 million. $19 million of the transaction was paid upfront in cash, with the remainder made up of stock and transition services. In the 12 months prior to the acquisition, Squatty Potty had sales of $16.8 million and operating income of $4.7 million.
Squatty Potty is still performing well under the Aterian brand, with estimated annual sales of $10-15 million. Its cumulative sales exceed $260 million, and the company is valued at $50 million.
Categories: Shark Tank
Source: dut.edu.vn
