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PurseCase Overview
PurseCase is a stylish and functional phone case designed to resemble a chic mini purse. It was featured on Season 5, Episode 10 of the popular American reality show Shark Tank.
PurseCase is a smartphone case that doubles as a mini purse. It combines fashion with convenience, making it easier to carry essentials while protecting your phone.
Created by entrepreneurs Jenn Deese and Kelley Coughlan, PurseCase offers a practical solution for individuals who prefer to travel light or find carrying a traditional purse inconvenient.
Key Features of PurseCase
- Functionality and Fashion: The PurseCase securely holds smartphones while providing small storage space for essentials like credit cards, IDs, and cash.
- Additional Features: Includes a compact mirror for quick touch-ups and a short chain strap that serves as both a wristlet and a small handbag handle.
- Material and Design: Made from high-quality, durable materials and available in various colors and designs to match personal style.
Benefits
- Convenience: Combines the functions of a phone case, wallet, and small purse, making it a space-saving solution.
- Fashion Statement: Blends style with practicality, appealing to those who value both fashion and convenience.
Founders
Jenn Deese and Kelley Coughlan are the brains behind PurseCase:
- Jenn Deese: A business professional with expertise in sales, product development, and fashion. She holds a degree in Business Economics from the University of California, Santa Barbara, and an MBA from Pepperdine University.
- Kelley Coughlan: A marketing expert with a degree in Mass Communications and Media Studies from the University of California, Los Angeles, and an MBA from Pepperdine University. She also co-founded Melrose PR.
PurseCase Shark Tank Experience
- Investment Asking For: $55,000 for 12% equity in PurseCase.
- Final Deal: $55,000 for 15% equity with Lori Greiner.
- Episode: Season 5, Episode 10.
- Business Status: Out of Business.
- Website: PurseCase Website (now defunct).
- Net Worth: $0.
PurseCase Shark Tank Pitch Overview
Entrepreneurs Jenn Deese and Kelly Coughlan pitched their product, PurseCase, on Shark Tank, seeking $55,000 for 12% equity, valuing the company at $458,000.
PurseCase is a stylish phone case that doubles as a tiny purse, featuring a chain handle, a lipstick mirror, and a pocket for cards and cash.
The idea for PurseCase arose from the need to carry phones and essentials without a large bag. In just three months, they sold $30,000 worth of products in pre-orders and projected first-year sales to be $240,000.
Manufacturing costs are $4.42 per unit, wholesales are $15 and retails are $38, yielding profit margins of 88% on their website and 71% in retail.
The Sharks had mixed reactions:
- Robert Herjavec noted similar products in low-cost European shops.
- Barbara Corcoran suggested design improvements, such as removing the snap flap and adding a change pocket.
- Mark Cuban was hesitant to invest in electronics accessories due to rapidly changing consumer tastes.
- Kevin O’Leary offered $55,000 for a $1 royalty per sale until recoupment, then $0.75 in perpetuity.
- Lori Greiner saw the potential for QVC sales and offered $55,000 for 15% equity, which Deese and Coughlan accepted.
Despite the initial success and the promising deal with Greiner, PurseCase faced challenges. The rapid growth strained Deese and Coughlan’s relationship, leading to Coughlan buying out Deese’s shares.
Although Coughlan aimed to revive the company, it ultimately went out of business, as revealed in Season 2 Episode 11 of Beyond the Tank.
PurseCase Shark Tank Update
After a successful pitch on Shark Tank, PurseCase secured an investment from Lori Greiner. Her mentorship helped founders Jenn Deese and Kelly Coughlan expand their business significantly, securing deals with major retailers like QVC and Staples.
However, the rapid growth brought increased pressures. Jenn Deese decided to step away, leading Kelly Coughlan to buy out her shares. Despite initial successes and positive customer feedback, the company faced significant challenges.
Kelly Coughlan appeared in Season 2, Episode 11 of Beyond the Tank, expressing optimism about the company’s future. Unfortunately, PurseCase eventually went out of business due to the strain on relationships and the pressures of managing rapid growth.
Research indicates that PurseCase is no longer in business. Despite achieving substantial revenue of $5 million in 2021, the company ceased operations by January 2023.
Frequent website shutdowns in 2022 contributed to this decision. The departure of co-founder Jenn Deese and subsequent buyout by Kelly Coughlan marked significant challenges.
Efforts to recover and reorganize were unsuccessful, leading to the company’s closure. The website is offline, and no PurseCase stores remain operational.
This marks the end of PurseCase’s journey, illustrating the complex dynamics and challenges associated with rapid growth and operational changes.
The net worth of PurseCase is estimated to be $0 since the company is out of business. The valuation of PurseCase was $366,000 after securing Lori Greiner’s investment on Shark Tank.