Sandy is the founder of Mr. Poncho, which is a company that sells cases for MP3 players, allowing you to keep your headphones untangled from daily use.
Although the world has quickly progressed to wireless headsets, this was not the case several years ago, when people still had to rely on wired connections.
Millennials often faced this conundrum when using their iPods or media devices and had to deal with the annoyance of having to untangle their wired connections several times a day.
Mr. Poncho created a protective sleeve and holder to keep your earbuds and wired connections safe and tangle-free for optimal use.
It is a simple yet effective design that reduces frustration and annoyance, making it highly useful for people who frequently use their media devices for audio purposes.
Sandy and Roman entered Shark Tank seeking a 50,000 USD investment for a 25% stake in the company.
The couple tried a musical approach to try and calm down the judges since they seemed to be in a particular mood.
When the sharks heard the name of the product, they were quite amused and wanted to know more.
They showcase their product, which is a combination of a rubber cup and sleeve cover designed in a way to prevent the wires from getting tangled up in the first place.
The sharks ask to take a closer look at the design and inspect the product, only to realize that it’s quite unique and ask the couple if they have parented their invention.
The judges quickly start talking about sales and prior success, which the couple responds to by stating that they’ve sold more than 5000 pieces.
Kevin asks about the manufacturing prices and how much they’re selling their product for.
It turns out that the manufacturing price is only 3 USD, and the retail price is 18 USD.
Daymond inquires about any market research the couple had conducted on companies offering mass production services and wanted to know the wholesale price.
The couple estimates that it probably takes 1 USD to manufacture, and Robert is the first one to back out of the deal, stating that his children wouldn’t buy it.
Despite the sharks liking the product and company idea, they choose not to enter negotiations, leaving the couple with no deal at Shark Tank.
Our Review of Mr. Poncho
Mr. Poncho was an excellent idea that considered a need in the market, more specifically, the annoyance many headphone users face when using their media devices.
The couple took measures to create a protective casing that made it more convenient and less annoying for headphone users to use their wired devices, making their idea quite promising.
However, the couple did not have their finances in order and did not have a backup plan in place in case they didn’t secure a deal, which led to their inevitable failure.
The couple tried to get other investments so they could expand their business and begin selling outside their apartments, which wasn’t successful.
The sharks were right in thinking it was a risky business that was still immature and in its infantile stage, which turned out to be true.
You can’t find any relevant information about Mr. Poncho on the Internet, which points to its failure to grow and develop past small-scale operations.
Sandy was previously interested in making jewelry, and if you try to find websites for Mr. Poncho, you are redirected to her other website, which is still operational.
Although Mr. Poncho wasn’t successful, the couple learned a lot from the sharks’ perspectives and knows what to do the next time around.
Sandy’s jewelry business is quite successful, and she earns 1 million USD per year, which is a hefty sum of money.
Pros of Mr. Poncho
There are many pros of Mr. Poncho, which are described below.
- Poncho filled a need in the market that catered mostly to millennials and others who wanted not to deal with tangled headphones.
- Their protective sleeve and rubber cup product are highly efficient in preventing wires from getting tangled up.
- The business idea was promising, and the couple could have made a lot of money if they were better at execution and had their finances in order.
Cons of Mr. Poncho
There are a few cons of Mr. Poncho, which are described below.
- Poncho could not predict that the world would soon go wireless, which would have jeopardized their business eventually had it not failed immediately.
- The couple failed to execute their idea properly and did not have the finances in order to pursue their business plan without funding from the sharks.
Who is Mr. Poncho For?
Mr. Poncho is exclusively for people who use wired headphones and earphones and want to be free from the annoyance of constantly having to untangle their headphones.
It does not cater to any other group of people.
Are There Any Alternatives?
Many headphone companies like Beats by Dr. Dre and Sony have protective casings for many of their products to ensure the wires do not get tangled up.
Their inventions are not necessarily patented and make use of simple yet effective designs to get the job done properly.
Our Final Thoughts
Mr. Poncho was a promising business idea that certainly filled a need in the market and could have appealed to a niche market since many headphones users frequently get annoyed with having to untangle their wires.
The company’s mission was a failure due to a lack of execution by the couple, who did not set their finances in order and relied exclusively on the sharks for investment.
The company website is no longer functional, and it seems like the couple has moved on to new and better things.
Sandy is currently making 1 million USD in annual income by selling her self-made jewelry.
Roman is involved at Global Popstar Design and holds a managerial position at the company.