Some women with fuller bodies have a problem that is rarely talked about – sweaty breasts. To solve this problem, Erin Robertson created her Ta-Ta Towel. The entrepreneur marketed the product on Shark Tank and landed a deal with Lori Greiner. By 2024, the Ta-Ta Towel is estimated to be worth $2 million.
Erin Robertson’s Story
Erin Robertson is a Los Angeles, California native. Before becoming an entrepreneur, she worked as a personal assistant for 13 years, but she hated the job. That all changed one fateful summer.
While preparing for the date, Robertson was sweating a lot, especially in her chest. Her air conditioning system wasn’t working, and it was hot in Los Angeles. She tried applying talcum powder and tucking her clothes into her chest. But she didn’t like how it affected her appearance.
Bringing products to market
After the appointment, Erin searched online for alternatives, but nothing she found was to her liking. This prompted her to find her own solution by learning to sew. She enlisted help from her mom and watched YouTube tutorials.
She then tried to make a wearable breast towel out of ordinary towels she had in her apartment. When she created a prototype that resembled a bra, she shared it with her friends, who loved it. Not only did the product keep breasts dry, it also kept them firm.
Erin started selling Ta-Ta towels in 2015, and the product quickly became a social media sensation, with the company making a whopping $1.1 million in profit in 2017. Their profits would have been even higher if they had stock, but when the viral attention died down, Erin was left with only 10,000 towels.
Ta-Ta Towel on Shark Tank
Despite having surpassed $1 million in sales, Robertson still needed help. In 2018, Erin Robertson appeared on Season 10 of Shark Tank, seeking $200,000 for a 10% stake. A $2 million valuation was high!
The founder invited models to demonstrate the product and attracted the attention of the Sharks. The promotion started well, but when the Sharks found that sales were declining and she had no clear marketing strategy, things started to go wrong.
Cuban was the first to bid, followed by three other Sharks players. Despite this, Lori Greiner was still interested, but wanted 50% for $200,000. It was a very aggressive offer, but Erin was eager to make a deal, and they finally agreed to 40% for $200,000. Despite giving up a large stake, Cuban summed it up well – “50% watermelon is better than 90% grapes.”
After Shark Tank: The Journey Continues
Robertson gained many new customers after Shark Tank, and she had no trouble selling her remaining inventory. It appears that the deal with Lori Greiner was never completed, and it is possible that Erin changed her mind about giving away 40% of her inventory after her national television appearance, which led to a significant increase in sales.
To be fair, Lori’s offer did not take into account cash in the bank and inventory. The inventory at the time was worth $500,000, and Lori would have earned that money back without doing any work. Ta-Ta Towels has grown revenue every year since the show aired, and has expanded its product line.
In addition to its signature bras, the startup now sells shorts, tube tops, headbands, and other items in a variety of colors and designs. They frequently update their merchandise, which is available on Amazon and TaTaTowels.com. The company still manufactures the product in Los Angeles, which is great!
Their wearable towel has 613 reviews on Amazon with an average rating of 4.2 stars, and the company has cut prices. Annual sales are now estimated at about $800,000, and the Ta-Ta towel is worth $2 million.
Categories: Shark Tank
Source: dut.edu.vn
