What happened to your Old Sound albums? Finally, we have fantastic technology to bring back your old records if you have kept them safely… Looking forward to it! Fortunately, products like RokBlok are making it a reality.
While he was at Learn Up, Riley invented the concept, investing his own money in developing the product. Logan Riley, the founder of Pink Donut, invented RokBlok in June 2015.
Shark Tank is a reality show that focuses on identifying and investing in the top businesses in America. The RokBlok business was a ‘Not to Miss’ opportunity, as it combines music with a spin on vinyl records.
What is RokBlok?
RokBlok is the world’s smallest, most compact, and cordless record player. A 42-block bamboo package (3.2 oz) sits atop an album. The RokBlok spins and plays vinyl records when you pull the lever.
A Bluetooth-enabled speaker or headphones can also stream music wirelessly from the system. Logan Riley of RokBlok appeared on Shark Tank in December 2017 to pitch his firm (RokBlok by Pink Donut). Riley approached the Tank asking for $300,000 in exchange for a 15% stake.
Suddenly, there was a surprise. Robert Herjavec offered Riley $500,000 in exchange for 100% ownership of the company, a six-figure salary for two years, and a $5 royalty on every sale. The offer was taken up by Riley as well!
Who is the Founder of RokBlok?
Logan Riley, who spent nine years as a Creative Lead at Apple in San Francisco, decided to invest the money he had saved into his innovative idea.
An entrepreneur who applied for the patent after being self-taught by YouTube videos set out to develop a prototype.
Riley created a unique way of playing vintage vinyl records via his music player, the BLOK, which includes a pair of speakers (even Bluetooth).
Many people wished to revive their vinyl collection using a portable device that took up less space, amplified sounds and was affordably priced. As a result, portable music players became a hot commodity. Thus, RokBlok, the result of this magical process, was created.
Logan Riley’s second product at his start-up, Pink Donut, was RokBlok… A firm that develops ideas. Riley’s RokBlok was an instant hit despite his previous failures.
How was the Shark Tank Pitch of RokBlok?
Logan enters the tank and tells the sharks that Pink Donut is his startup. The man says that he is looking to acquire 15% of his product, RokBlok, for $300,000.
He begins his pitch by asking whether the sharks recall vinyl records after removing the contents from the sleeves.
Within the next couple of minutes, he talks about how elegant an analog disc is, reminding them that records have been around for more than 120 years.
As incredible as the experience is, he says there is one downside: it requires a turntable and a good pair of speakers.
He pulls out a small gizmo from his jacket and presents it as the RokBlok, demonstrating that he has found a way to make it all portable. He then goes on to demonstrate how to use the world’s first wireless record player.
His first step is to activate it and place it over a prepared record. He says that once you raise the lever, it begins playing immediately.
When the RokBlok circles the record, it begins playing instantly, as if by magic. The sharks are unable to look away from the merchandise in front of them.
Logan shows how to stop it by placing your palm on top of the RokBlock.
Logan explains that the device can be connected to any Bluetooth speaker or headphones, as some listeners prefer louder music.
His example involves plugging the gizmo into a table-mounted speaker, and then music fills the room. Once again, sharks are surprised.
The creator emphasizes its portability and tells them that it will last for several hours on a single charge due to its small size.
Finally, Mark asks Logan if it can be used on any surface, and Logan says yes-though he does recommend laying something beneath it, like a non-skid mat.
Lori asks when he delivers each of them a sample whether it is capable of playing any type of vinyl, to which he replies that it can play everything except 78s.
The sharks then proceed to examine the product in their hands. Kevin quickly inquires about the RokBlok’s innards, asking whether or not it contains a phono cartridge. Next, he inquires via Bluetooth about the quality of the sound when told that it is good.
Logan responds that Bluetooth’s audio compression will result in poor audio quality. However, he claims that the difference is negligible.
Mark concludes by asking why anyone would travel with their records.
Logan responds that the RokBlok may be a viable option for those who do not have space to house a turntable.
He uses the example of his little flat in which there is not enough room for a decent setup.
Logan tells Mark that the market is expanding when Mark implies that it is contracting. The RokBlok is designed as an audiophile tool and an accessible portal for collecting records, says RokBlok.
Logan confirms Robert’s statement that the product is intended for people who cannot afford a record player. However, the mark remains unconvinced by the concept.
RokBlok is priced at $99 per pair. Barbara inquires about their pricing. Logan elaborates on the numbers, stating that the creation cost $23.
Robert further pressed him, and he revealed he had raised $350,000 through Kickstarter and an additional $60,000 off-the-books. “Manufacturing is in progress right now,” he replied when asked if he had delivered any products.
Kevin appears to be concerned about the fact that they have yet to receive feedback on the project.
Logan still expresses confidence in the product, owing to his status as an audiophile. Mark then asks about his finances, to which he replies that he has invested $2,000 of his own money in the initiative, surprising the sharks.
Logan elaborates on his use of the Kickstarter funds, explaining that he used $350,000 to manufacture the product.
He also adds that he spent two months sleeping in front of the manufacturer’s headquarters in China while developing.
Lori asks how he came up with the idea. He said he became inspired after finding his apartment too small to accommodate a decent turntable setup.
He wanted to share his vinyl discs with his friends, so he built a portable record player. He finally developed a system that could sit not beneath but above the record.
Logan reveals more about himself by telling them that the Rokblok is, in fact, his first hardware project after self-teaching himself engineering on YouTube.
Sharks are immediately impressed. Lori asks if he owns a patent for the project. He claims to own a patent covering wireless audio transmission.
He admits to running an audio studio at the age of nineteen when asked for more information about his background.
Barbara backs out of the deal, stating that it is “far too early.” Almost immediately afterward, Mark remarks on the Rokblok’s limited market.
Logan then turns his attention to the rest of the panel, thanking them for their time, as the shark withdraws as well.
Kevin realizes that the product has inherent dangers, so he offers him $300,000 for 50%. Logan thanks the offer, but he wants to hear what the other sharks think about the arrangement first.
He is surprised when Lori tells him that despite the specialized market, she is undecided.
However, Robert quickly expresses interest seconds later, as if he were on cue. Next, he makes him a different offer of $500,000 for 100% of Rokblok, a two-year job contract, and a royalty of $5 per unit.
Logan surprises everyone by accepting Robert’s offer just as Mark begins to speak. After concluding the transaction, the two come together for a brief embrace before he exits the tank.
Logan Riley, the developer of RokBlok, appeared on Shark Tank in December 2017 to pitch his firm (RokBlok by Pink Donut). Riley sought $300,000 in exchange for 15% equity.
What Happened to RokBlok After Shark Tank?
One of the Sharks, Robert Herjavec, fell in love with the product and invested $500,000 for 100% of RokBlok’s equity, resulting in a complete buyout.
Riley was given a two-year contract with a six-figure salary and a five-dollar royalty on each unit sold. What happened next… Riley was thrilled to accept the offer.
Finally, Pink Donut was introduced to entrepreneurialism.
How Does RokBlok Make Money?
In order to gain a deeper understanding of Pink Donut’s revenue model – RokBlok’s parent company – let’s look at the company’s financial statements.
- Number of Employees: 51-100
- Valuation of RokBlok: $5 Million
- Revenue of RokBlok: $959,000
Pink Donut is a company that has developed RokBlok record players using its yet-to-be-patented Bluetooth Delivery System technology. The RokBlok team exceeded its $50,000 goal within 47 days of its launch in 2016.
A manufacturing issue caused 5% of the batch to be defective for an initial period of time.
A shaky start did not deter the firm from regaining its footing. Consumers were offered a replacement on the next batch, and the production issues were resolved immediately.
Shark Tank enhanced its sales by a significant amount after the show aired in 2018. Since then, orders have increased from three to four units per day to 100 to 200 units per day. The company hired more workers to handle the spike in business.
The manufacturing cost of the product is $23 and its retail price is $99. The product has a high profit margin and is an excellent alternative to the Original Vinyl players, which cost around $500.
RokBlok value increased from $350,000 to $5 million in 2020, a year-over-year increase.
Who are Investors of RokBlok?
Robert Herjavec is the investor of RokBlok. The Herjavec Group Investments identifies, trains, and supports entrepreneurs with a combined net worth of approximately $200 million.
These investments were made in peer-selected startups in the energy, financial services, and enterprise software sectors in Canada. A major milestone for the company was the sale of “BRAK Systems” security software for $100 million.
Is RokBlok Profitable?
Revenue and unit sales make the RokBlok business profitable. The current net worth of $5 million and sales of $959,000 speak volumes about the story of RokBlok.
RokBlok has been in high demand and is out of stock at the moment (Out of Stock). In spite of this, excitement persists, people are willing to wait, and the company is offering a $10 discount off the initial $99 price per device.
Currently, the company is performing well, and it’s collaborating with musicians and the music industry to explore other unique opportunities.
Using RokBlok…Prepare to rock…
What are the Alternatives of RokBlok
Here is the list of RokBlok Alternatives if you want to get one for yourself:
|Analysis||RokBlok||Vertical||Sound Wagon||Fuse Vert|
|Founding Company||Pink Donut||Easygoproducts||Tamco|
|Speakers||Any Bluetooth Speaker – Up to 30 feet away||Stereo Speakers||Speakers||Bluetooth Speaker|
|Flexibility||Bluetooth Delivery System(Patented)||None||None||Bluetooth and FM|
|Price||$89 ($10 Post Discount)||$129||$210||$179.99|
Key Takeaways from RokBlok
The RokBlok record player is the world’s smallest, portable, wireless device.
Some interesting features of RokBlok :
- This is a relatively lightweight (3.2 oz), 42-block MDF (Honeycomb pattern) record holder.
- With RokBlok, you can play numerous recordings; you can choose what you want to hear.
- Bluetooth speakers and headphones up to 30 feet away are totally wireless with this.
- Built-in amplifiers for analog speakers.
- You can use your favorite tune-up for up to 4 hours on a single charge.
- A diamond-edged needle is set with three rubber wheels on the record, while the music is played with the help of the needle.