When you buy socks, you usually buy them in pairs. But with Throx, you get three pairs for every set you buy. Founder Edwin Heaven’s novel idea solves a simple problem, as the average person loses 15 pairs of socks per year! He pitched the idea on Shark Tank but was unable to land a deal. Fast forward to 2024, and Throx is valued at $2 million.
Background of Edwin Heaven
Edwin Heaven is a creative from San Francisco. Little is known about his educational background as he grew up in a movie theater. As a child, he spent a lot of time watching comedy classics and cartoons.
When he grew up, he aspired to be an artist. He started out as a writer, best known for writing the critically acclaimed book The Handsomest Man in the World. Heaven was hired as a screenwriter for Stan Lee’s Howard the Duck.
Eventually, he became a film director, most notably for The Organist. In addition to film and writing, Edwin worked in the branding department at eGroups, a startup acquired by Yahoo for $500 million.
Founding Throx
Like many people, one of Edwin’s biggest annoyances was losing a sock. One day, he finally figured out how to sell socks in pairs of three.
In 2003, he produced his first line of socks, cleverly named Throx. He sold them in packs of three pairs for the price of one. In the beginning, he did a lot of online and direct sales.
While the restaurant was popular with young people, it wasn’t as profitable as the founders had hoped. Six years after opening, Throx had revenue of $38,000 in 2009 but was struggling to find traction.
Shark Tank Appearance
In 2009, he appeared on the first season of Shark Tank, seeking $50,000 in exchange for 25% equity. Edwin showed up in a suit and gave a quirky introduction.
The Sharks scoffed at the idea and didn’t take him seriously. With only $38,000 in sales in 2009, sales weren’t enough to get them excited. Plus, the product couldn’t be patented, so the idea was easy to plagiarize.
The Sharks believed that it was difficult to get repeat orders for novelty items and that the large players in the market could crush the business if it gained any market share. All of the Sharks backed out, and Edwin walked away empty-handed. Although no deal was made, it was one of the most memorable pitches on Shark Tank.
After Shark Tank
Despite all the criticism, Edwin did not give up and continued to run the company. At that time, Shark Tank was not a household name and the ratings were not as high as they are now. Initially, the coverage of the show did not help the company.
Because the show is memorable for its founder’s quirky style, it has been re-run a lot over the past decade, which has helped drive sales. Although Throx has never hit retail, the socks sell well on its website, Throx.com. You can also buy them on Amazon.com, where they cost $16 to $20, depending on the design.
Throx has only one 5-star review on Amazon, so it probably won’t be a best-seller on the platform. Throx has an estimated $500,000 in annual revenue and is worth about $2 million. Edwin is still active in the film industry and still lives in San Francisco. The missing sock cure never really caught on, but it’s a lucrative little business.
Categories: Shark Tank
Source: dut.edu.vn
