Internet criticizes AU Baby's $160 luxurious blanket as Alexandra Ulmer nearly misses out on sole 'Shark Tank' offer
LOS ANGELES, CALIFORNIA: AU Baby was introduced to viewers on a fascinating episode of 'Shark Tank.' Even though the firm was able to obtain a deal, viewers were taken aback when they discovered the cost of the "pricey" luxurious baby blanket.
Despite the founder's aspirations, 'Shark Tank' viewers promptly noted the steep pricing of her baby blankets. These blankets are available for purchase at $246 on her website, aubabyshop.com.
Baby blankets in the United States typically range from $20 to $40, making this product targeted at the luxury market. However, with the ongoing cost of living concerns, many parents may be hesitant to invest in a product at this price point.
Mocking the price of the product along with another inexpensive product from the February 2 episode, fans on Reddit joked, "I could use my $160 lunchbox to carry my $160 blanket!"
While another user wrote, "I really question the intelligence of someone that would pay $160 for a baby blanket."
Some also reacted to the USP of the product, writing, "Not washing a kids blanket for a year!? hell.....no." A user asked, "Kinda wish she did a spill demonstration on the blanket. Because babies are messy."
On X, one person wrote, "That's a pricey baby blanket!"
That's a pricey baby blanket! #SharkTank @ABCSharkTank pic.twitter.com/0evBYY5Xpx
— Jamie Steinberg ♡ (@NotYerAvgChick) February 3, 2024
AU Baby has a lifetime sale of $62,000
Alexandra Ulmer, the founder of AU Baby, is a passionate entrepreneur with a strong dedication to eco-conscious living. Her experience in environmental science, along with her personal journey into parenthood, motivated her to launch a company dedicated to cleaning up "the toxic textile industry."
Alexandra has ten years of knit design expertise in performance sports and luxury clothes. She previously worked as a knit designer for Nike for over seven years.
Specifically, she invented knit materials for Flyknit, a $2 billion+ sustainable footwear company. She formerly worked as a freelance designer.
AU Baby produces blankets at a cost of $74 per unit and sells them for $160 each. The total lifetime sales for AU Baby amount to $62,000.
In 2022, she achieved $38,000 in sales. In the previous year, at the time of filming, her sales were at $14,000, with hopes of reaching $100,000 by the end of that year. AU Baby features 100% DTC sales.
Sharks feel AU Baby failed to crack the marketing code
Kevin O'Leary thought Alexandra was failing to reach out to expectant or new moms with her products. Customer acquisition is critical, yet she is failing to obtain any.
He was also surprised by the product's price. Despite being featured in a number of podcasts and collaborating with a number of pediatricians throughout the country, her efforts have not resulted in sales.
Robert Herjavec was the first to not make a deal. Mark Cuban believes Alexandra has not broken the code on how to market it; therefore, he was out.
Lori Greiner understands that there is a lot of competition in the market, and at the pricing point, she does not view it as a worthwhile investment. Lori thought the firm was still in its early stages.
Emma Grede likes the product, but she believes it is too pricey. As an investor, she also believes it is too early in the journey.
Kevin O'Leary made a last-minute offer to AU Baby
Kevin already has a phenomenal track record with female entrepreneurs. Given that he loves investing in recession-proof live events such as marriage and death, he could just add AU Baby to his list.
Even though Kevin was impressed with Alexandra, he wasn't happy that she didn't have any customer acquisition costs jotted down.
Kevin first offered $80K for 50%. She tried to be generous by countering it with 30%.
In the end, Alexandra managed to convince Mr Wonderful and close the deal at 80k for 35%.
'Shark Tank' Season 15 airs on Fridays on ABC at 8 pm ET.
For those who missed the episode, it will be available on demand the following day and on Hulu. Additionally, viewers can explore past seasons and episodes on Amazon Prime Video and iTunes.