March 4, 5: Last Updated March 9, 9: The pitch Surgeon Jean Segal, his wife Randi and their two adult children Brandon and Haylie entered the Den to pitch their Vancouver-based family business: He often prescribes compression socks, which are believed to increase the delivery of oxygen and prevent swelling and blood clots.
Getting his patients to wear them, however, has been a problem. Segal, who runs the practice. To fill a gap and tap into what Mrs. We knew the benefits. We had great market research because we were familiar with all the manufacturers. The family found a manufacturer in Taiwan, and began selling the socks in June. In short order, the socks were selling across British Columbia, and into Edmonton and Calgary. Soon, we found people coming up to us because they liked the designs and we started thinking bigger.
Compression socks increase circulation; they give your legs more energy and help prevent vein disease. If we can make a fashionable, therapeutic sock we can not only entice our patients to wear them, but people who had never thought about wearing compression socks. When they entered the Den in March , Dr. The money was earmarked for production, marketing and to hire more staff.
They received three offers and accepted an on-air deal from David Chilton. During due diligence, the terms changed and the deal did not close.
The Segals have since redesigned the packaging and started promoting the product as energy socks. They also streamlined number of SKUs from to 70, addressed distribution issues, and hired a full-time social media person.
They are all sharp and bring complementary skills to the business. Chilton was also concerned about the amount of competition and had heard from a buyer that a major clothing manufacturer was moving into the space. Segal had asked him to quantify the impact he would have. At the same time, this is a family business and they are in it for the long term.
As an investor, liquidity is important. I have to think about exit and how to make the most of my investment. The key will be how they position them with less obvious target markets. The question is how do you take it to the next level? I like that they reduced their SKU count. Inventory management is key. They will have to refine their message, highlight the applications and benefits and create a buzz that will help build their brand. The price points people are willing to pay vary depending on the sales channel.
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