Pitch Introduction
Char Charms Shark Tank pitch captured attention with its unique approach to water bottle accessories. Founder Charlotte Trecartin presented her colorful water bottle personalization products to the Sharks, seeking investment to scale her growing business. This detailed breakdown covers the complete pitch, Q&A session, and business analysis.
Business Overview
Char Charms offers accessories for water bottles, including stick-on hooks, colorful charms, bottle boots, straw toppers, and zip pouches. The company addresses the need for personalization and protection of water bottles, particularly among young consumers who view their bottles as personal accessories. Their unique selling proposition includes dishwasher-safe stick-on accessories that work on any water bottle shape or size.
| Company Detail | Information |
|---|---|
| Company Name | Char Charms |
| Industry | Fashion/Beauty – Water Bottle Accessories |
| Location | Long Grove, IL |
| Founder | Charlotte Trecartin |
| Website | charcharms.com |
| Season | 16, Episode 10 |
About Founder’s
Charlotte Trecartin is the founder and 100% owner of Char Charms. She developed the idea while she was a sophomore at the University of Illinois during the pandemic. Trecartin leveraged social media marketing, particularly TikTok, to build brand awareness and drive sales. Her entrepreneurial journey began with creating prototypes and evolved into a nationwide retail presence.
- University of Illinois student during pandemic
- Self-taught social media marketer
- Hired TikTok coach for growth strategy
- Built from 0 to 80,000 followers organically
Shark’s and Founder’s QnA
Sharks, I want to introduce you to someone very special that goes everywhere with me. We go to work together. We go to the gym together. And heck, I even bring her to get my nails done with me. Oh, you think I’m talking about my best friend, Silly Sharks. I mean, don’t get me wrong, she’s important, but not as important as this gal, my water bottle.
She’s the best, isn’t she? She keeps track of my hydration. She gives me emotional support. But there’s one thing she’s missing that every girl needs. And that’s accessories. And that’s where Charms comes in. A fun and colorful way to accessorize your water bottle, no matter what shape, size, or color.
There’s a lot of crap like this on the market. I mean, how is it that Charms is different than any of the other crap?
We were the ones that created the stick on hooks and charms. There was nothing like that out there. So you might see keychains, things like that, but we were the ones that came into the market with the first ever stick on water bottle charms that work on any water bottle.
Tell us about your market and tell us why you did this.
So I came up with this idea when it was co and I was a sophomore at the University of Illinois. Everyone was sent home and I was looking at my water bottle and I had this idea. What if you accessorize your water bottle? And so I started creating prototypes and this was pre the big hydration like burst. So I went all in on social media and I hired a Tik Tok coach to help me and I posted three times a day.
No, it was worth it. Was it really?
Yes. It was amazing. We went from 0 to 80,000 followers, millions of likes, millions of views. And as we started to go super viral, retailers started to reach out to us. And this was where I realized I’ve never even thought about how we are going to merchandise this in stores. So, I figured it out very quickly and we’re still figuring it out.
What are your sales?
Absolutely. Our first full year was 2022, we did $80,000 in sales. Okay. 2023 we did $250,000 in sales. This year to date we’re at $6 million.
Wait a minute. What is that? All the crap in retail.
Yeah. Do you still think it’s crap in retail? I want to know is it is it selling through? Is it a lot of crap? It’s a lot of crap. But it’s not crap if it’s selling through. It’s crap if it’s not. It’s not.
So we launched nationwide at Dick Sporting Goods. We did a test with them last holiday. It went amazingly well. They they reorder this March. They reordered for all 780 stores. Wow. And then we got our purchase order from Target and I met with the buyers. That quickly escalated from online test to let’s just go nationwide.
How many SK nationwide with all 17 SKUs?
Charlotte, when I walk into Target, do I buy a bundle of the crap or one craft piece at a time?
So, what we sell in Target is we’re doing four straw packs, three charm bundles. They’re kitted. They’re in packs, right? So, what are the price points for the Everything in Target is $11.99.
What do your margins look like?
Everything wholesale is anywhere between $5 to $5.40. And then our cost of goods is anywhere between a dollar to $2.
You’re going to make like multiple millions of dollars in profits this year.
Correct.
Do you want to switch places?
Yeah, I’d love to.
Why do you need us? I mean, you look like you’ve got a really profitable business.
I’m here because I’m looking for a partner to not even invest in Chararmms, but invest in me to help me grow this business into the next billion dollar accessory company.
Are you running this yourself?
So, I am 100% owner of the business. I just hired my first employee on Monday. And we have a team of warehouse workers that are all temp. So, they come in when we have a huge order that we need to fulfill. And a lot of these orders are very like short turnaround. So, we’ll have maybe 10 weeks, 12 weeks.
How are you? But you’re like ordering from overseas. I’m ordering from doing all of this fulfillment. That is a real nightmare to do. You’re doing UPC codes, everything.
The whole point of this business is for me to learn. I am really figuring it all out. EDI, yes, I’m trying to build a team and hydration is huge, you guys. Like, it’s huge. It’s a trend.
So, what happens after people aren’t on the hydration boost anymore and carrying around these mammoth water bottles?
This isn’t just a trend. It blew up and now the idea of carrying a water bottle that you love is what is the norm.
Charlotte, okay, so couple things don’t add up. one, you’re going to do $6 million this year, and your wholesale price is about $5, give or take. Yeah. So, that’s $1.2 million units. Getting them ordered, making sure they’re manufactured correctly, making sure they get through customs. Who’s doing all that for you?
These are all factories that I’ve had an established relationship with for the last 2 and a half years. So, a lot of these factories, I went from ordering 200 pom poms to now ordering 30,000. So, they’ve been they’ve been doing a good job for you and everything, right?
And in terms of financing it, that was pretty much my biggest challenge this year was the financing of these POS. And I feel very fortunate that I was able to work with an individual to do my PO financing for these first. How much you paying for that factory?
Expensive. 11%. Uh, it’s 1.75% every 10 days.
I want to clarify something you said earlier. You said 6 million year to date. That’s all the POS we have on hand.
Oh, this PO’s on hand, not sales. So, what do you think you’ll do this calendar year? at least 10 million if we only continue to grow in retail.
So, something’s working for you. Okay, I see that. I’m going to make you an offer, but I want to explain what I want to do because you’re the um the brand visionary. You did the Tik Tok thing. That’s all you should do. All of this distribution has to be taken over by a giant distributor because agreed. If you pick up more retail, I don’t think you can do it, you know, with one employee.
No, no. I definitely need a team. That’s what I do for including I want to get this into Walmart for the holiday. We’re a little late.
What distributor do you use?
Not saying, but I’m I’m telling you now. Here’s my offer. I’m going to give you the $300,000. I want 25%. You were like, “This is crap.” Yeah. The You know what? I’ll tell you something, Charlotte. Show me the money. It’s my kind of crap. I like this crap. You know why this crap is good? This crap. You’re selling great crap.
There’s other things with Charms that I see a huge potential with. even just in the water bottle accessories. So, for example, hydration is huge in the promotional products industry. And I can imagine every single one of these products with a logo, with licensing, with all of that. That is huge. So, uh so listen, I think uh you want 25 uh 300,000 for 25%. I I’ll go 300,000 for 20%. I think that this is a big licensing play.
Thank you so much for that offer. I’d love to see if anyone else has any I adore you. I think you’re amazing. Your energy is incredible. You’ve built a great business.
But as a mother of six children, we go through water bottles and lost and found every day. This is just more stuff that they’re going to lose. This isn’t for me.
Uh so I’m out. Thanks so much, Kendra. Appreciate it.
I’ve got to tell you, you blow me away. You learn every facet. So I’m really impressed with the fact that you did some stuff that was really hard. But I just don’t know the tween market that well. It’s never really been my market.
So, I wish you good luck, but I’m not. Don’t worry. Okay, Mark, what are you doing? I don’t know. Um, because your offers are insane, right? Both your offers.
Well, then make an offer. Two sharks are out.
Charlotte has two offers on the table from Kevin and Damon for her line of accessories for water bottles, Sharmms. But Mark may also be interested. The problem is cash management. Mhm. Because there’s nothing worse to a company growing as quickly as you are to have poor financials, right?
Who’s doing all that stuff for you?
Yeah. I have an accountant, so they do our numbers. Look, when you say you have an accountant who knows the numbers, that scares me because you need to have these financials coming to you on ongoing basis, but I’m trying to protect you from these predatory offers because whether it’s 20% or 25%, David, you’re going to write them a check right back if you, you know, based off the profit. It’s all tied up in inventory. Yeah. Yeah. It’s all going to distribute it.
That’s just part of growing. You in, you out. What do you want to do? I’m torn. Right. I’m not the perfect partner for you on this, but please be careful when your decision with these guys.
I’m out. Says the guy who’s giving you that, Mark. Thank you. I mean, it’s it’s easy to say, look, you go for it and not write a check. This is a lot of work. Well, the biggest thing because you don’t know what you don’t know. You’ve been very successful in in coming up with a great concept and maybe Ken’s right. Maybe it’s a flash in the pan. I don’t know.
But I do know distribution. 20% even 25% is too high for me.
But I appreciate those initial offers.
Mr. Wonderful, if you would consider $300,000 for 12% and helping me with just distribution.
Charlotte, it’s not enough because I know how this works. But I will go to 20%.
Would you go down to 12 1/2%.
I can’t because right now if I go to a regular company, I say I will do your licensing agent for you. I get 30% just doing that.
What about 15%.
That’s the highest I would go.
17 and a half. Come on. Two and a half%.
Oh, you come. Yeah, I was at 20. Oh, you came down a whole 2 and 12%. He’s so generous.
Listen, I would normally do this for 30 if I went to a company and licensed for them. I’m going to stick I cannot take 17. Let me help you. I’m not going to come down. If you want to go that way, go ahead.
That’s the That’s the point. We know the work we have to do. I understand.
Well, I appreciate all your offers. Um, unfortunately, I can’t go lower than 15. So, good for you.
Thank you so much for congratulations on your business. Thank you. Great job.
Key Stats & Financials
Char Charms demonstrated impressive financial growth from its inception to the Shark Tank pitch. The company showed exponential revenue increases, strong retail partnerships, and solid margins that attracted significant interest from multiple Sharks. Understanding these financial metrics is crucial to evaluating the business opportunity.
- Sales: Started at $80,000 in 2022, grew to $250,000 in 2023, with $6 million in purchase orders year-to-date
- Margins: Wholesale prices between $5-$5.40 with cost of goods between $1-$2, providing healthy margins
- Valuation: Seeking $300,000 for 10% equity, implying $3 million valuation
- Investment Request: $300,000 for 10% equity stake
- Use of Funds: Working capital for inventory financing and team expansion
| Financial Metric | Details |
|---|---|
| Revenue 2022 | $80,000 |
| Revenue 2023 | $250,000 |
| POs Year-to-Date | $6 million |
| Projected 2024 | $10 million |
| Wholesale Price | $5-$5.40 |
| Cost of Goods | $1-$2 |
Business Potential and TAM
The water bottle accessories market represents a significant opportunity, particularly as hydration awareness continues to grow. Char Charms positioned itself in the fashion/accessory segment, targeting young consumers who view their water bottles as personal style statements. The total addressable market includes not just individual consumers but also promotional products and corporate gifting opportunities.
- Hydration trend driving increased water bottle usage
- Young demographic with disposable income for accessories
- Promotional products market for corporate branding
- Retail expansion opportunities in major chains
Char Charms: Ideal Target Audience & Demographics
| Demographic | Details |
|---|---|
| Primary Age Group | 15-30 years old |
| Gender Focus | Primarily female |
| Income Level | Middle to upper-middle class |
| Geographic Focus | Urban and suburban markets |
| Lifestyle | Health-conscious, social media active |
Marketing and Distribution Strategy
Char Charms built its brand through aggressive social media marketing, particularly on TikTok, which drove viral growth and attracted retail partnerships. The company’s distribution strategy focused on major retail chains like Target and Dick Sporting Goods, with aspirations to expand to Walmart. Moving forward, the business needed to scale its operations while maintaining its brand identity and retail relationships.
- Social media marketing with TikTok coach driving viral growth
- Retail partnerships with Target and Dick Sporting Goods
- Plans for Walmart expansion
- Kit packaging for retail sales optimization
Char Charms Deal Outcome
Despite receiving multiple offers from prominent Sharks, Charlotte Trecartin ultimately decided not to accept any investment deal. Kevin O’Leary offered $300,000 for 25% equity, while Daymond John offered $300,000 for 20% equity. Mark Cuban attempted to negotiate a better deal at 17.5% equity, but Trecartin held firm at her minimum of 15% equity requirement, leading to no deal conclusion.
| Shark | Offer Details |
|---|---|
| Kevin O’Leary | $300,000 for 25% equity |
| Daymond John | $300,000 for 20% equity |
| Mark Cuban | $300,000 for 17.5% (negotiated) |
| Final Decision | No deal accepted |
Char Charms Post-Show Update
Following her appearance on Shark Tank, Char Charms experienced a significant boost in traffic and sales. According to founder Charlotte Trecartin, the company saw a record amount of site visitors, with approximately 20,000 people visiting their store simultaneously. She noted continued strong sales performance even weeks after the episode aired. Trecartin emphasized that while the appearance provided a valuable boost, it wasn’t a life-changing business experience, particularly for niche products like water bottle accessories.
Business Analysis & Lessons
Char Charms represents a compelling case study in rapid business growth and the challenges of scaling operations. Founder Charlotte Trecartin successfully identified a market opportunity and leveraged social media to build a strong brand presence. However, the pitch also revealed some operational challenges, including inventory financing costs and the need for professional financial management. The decision to walk away from all offers demonstrates the importance of understanding true company valuation and maintaining negotiating power.
The pitch offers several key business lessons for entrepreneurs. First, social media marketing can be extremely powerful for building brand awareness and driving sales, particularly for consumer products targeting young demographics. Second, rapid growth brings operational challenges that require careful financial management and potentially professional guidance. Finally, maintaining confidence in your business valuation is crucial, even when facing pressure from experienced investors.
- Social media marketing can drive explosive growth
- Rapid scaling requires professional financial management
- Maintaining valuation confidence is crucial in negotiations
- Retail partnerships require significant operational capacity
Pitch Conclusion
Charlotte Trecartin’s Char Charms pitch demonstrated remarkable entrepreneurial success at a young age. Despite walking away from all offers, the appearance on Shark Tank provided valuable exposure and validation for her growing business. The company’s impressive growth trajectory, strong retail partnerships, and innovative product positioning make it a compelling example of modern e-commerce success. What lessons from Char Charms’ Shark Tank experience resonate most with your entrepreneurial journey?