Toygaroo, sometimes known as Netflix for toys, is an online toy retailer where people can rent toys for a month and trade them in for new toys every month. This company is unique because there are not many businesses like it, and parents can rent even the most expensive toys they might not have been able to afford at a minimal price.
After Shark Tank, the company’s owner had big hopes and dreams for Toygaroo. However, the business ceased operations in April 2012 due to bankruptcy caused by high logistics and inventory expenditure. Sadly, it was only one year after obtaining funding when Toygaroo shut down in 2013.
Nikki Pope’s company Toygaroo featured in Shark Tank in season 2, episode 2. Pope requests $100,000 from the Sharks for a 10% stake in her company. She discusses how her company works and discusses how she charges $35 to $89 per month. Toys from her customer’s wish lists are sent to their addresses on a predetermined schedule.
The toys that kids no longer want are returned in the postage-paid package. The toys go through a thorough cleaning process and are shrink-wrapped before being distributed to the next customers. She explains that her service costs just $500 a year, compared to the typical family’s twelve to fourteen hundred dollars yearly toy budget.
In Mr. Wonderful’s opinion, the business is overvalued, but he is prepared to work on the figures until he learns that Pope owns only 10% of the company. Her spouse and other individuals on the additional 90%. Daymond John is not too pleased with this, so he is out. Mr. Wonderful offers a hundred thousand dollars take in exchange for 35%.
Robert Herjavec and Mark Cuban intervene, and both offer two hundred thousand dollars for 40%. Barbara Corcoran is out as she is offering much less than the others. In the end, Herjavec is excluded from the agreement when O’Leary proposes to work with Cuban on the two hundred thousand dollars for 35%, and Pope leaves Shark Tank with a deal.
Our Review of Toygaroo
Toygaroo is an excellent option for parents on a tight budget. It allows parents who do not wish to spend a lot of money on toys their children will soon outgrow to save money while also providing their children with an array of toys. It assists parents in keeping their home from becoming cluttered and living a minimal lifestyle by allowing them to trade old toys for new ones each month.
Parents can pick from 500 toys and add them to their carts from the comfort of their homes. Hence, the company saves parents time and stress by keeping them from making a trip to the mall for toy shopping.
The firm also allows parents to select different subscription plans based on their requirements. Parents can also buy some of the toys at low prices if their children become too attached to them and refuse to let them go at the end of the month.
The store also has a rigorous sanitization procedure in place for the toys. This involves steam cleansing, washing with a bleach-free and organic cleaning solution, and inspection by a sanitization expert before getting packaged for shipping.
Toygaroo is an excellent method for parents to keep their children entertained and offer them a chance to play with different toys, which can help enhance their cognitive abilities and encourage creativity. The parents also don’t have to worry about paying any shipping costs as the company covers them.
However, Toygaroo has limited its services to only toddlers and elementary-going children; older people may have problems finding suitable toys for themselves. We believe that this is one of the reasons why the company failed because it had limited its services to younger children.
Pros of Toygaroo
Here are a few benefits of Toygaroo:
- Easy on the pocket
- A wide selection of toys
- No shipping cost
- Reduced clutter
- New toys each month offer brain stimulation for children
- Thorough sanitization process
Cons of Toygaroo
Here is a drawback of Toygaroo:
- The company mainly sells toys for toddlers or children in elementary school and doesn’t carry any toy options for older children.
Who Is Toygaroo For?
Toygaroo is great for budget-conscious parents of toddlers and elementary-going children who do not want to spend a fortune on toys. The organization gives an effective solution to parents whose children quickly outgrow their toys and demand new toys.
The toy rental service is also a fantastic initiative for those who cannot afford to spend a lot of money on toys but still want to offer their children necessary entertainment alternatives to keep their brains stimulated.
Parents who are tired of having a cluttered home due to too many toys will also benefit from the service, as they will be able to swap old toys for new toys every month, preventing their home from becoming cluttered with too many toys over time.
The company offers its services online, which is a plus point for people who have a busy schedule and don’t have time to visit the mall for toy shopping.
Are There Any Alternatives?
Below are a few alternatives for Toygaroo:
We have put Babyquip on our list of alternatives for Toygaroo as the company operates in more than 900 locations and offers clean toys for rent along with a cleaning service that parents can hire to get their children’s toys professionally cleaned.
Our Final Thoughts
Toygaroo’s original concept is what makes the company so distinctive; when Pope launched her toy rental service, there were few businesses like it. However, various toy rental businesses have recently emerged on the market. Unfortunately, the firm could not continue operations for an extended period.
Suppose the firm had not offered free delivery. In that case, it might not have gone bankrupt due to logistics issues, as each toy has a different weight, and the company would have had to pay high amounts of money on shipping, which would have substantially reduced their revenue.