Overview
Knife Aid is a subscription-based startup that provides a modern solution to traditional knife sharpening services. Their process is straightforward: customers order online and receive a secure, postage-paid envelope to send in their dull knives. Within about a week, an expert knife smith recreates a razor-sharp edge on the knives, which are then shipped back to the customer sharper than the day they were bought.
The company was founded by Mikael Soderlind and Marc Lickfett, who noticed the demand in the American market for a contemporary way to get kitchen knives sharpened. The founders explained that the craft of knife sharpening has almost been lost, and they aim to make it accessible and convenient for everyone. Let’s explore the history of Knife Aid, its appearance on Shark Tank, and its growth since then.
Appearing on Shark Tank
In 2019, Knife Aid appeared on Shark Tank seeking an investment of $400,000 for 15% of the company. The founders have already generated $120,000 in sales and want to expand their business. They have experimented with various marketing strategies, including Facebook, Instagram, and Google ads, and have gone through four iterations of their website.
The company has a proven concept and a unique value proposition, and the founders are looking for a partner who can help them with channel strategy, target audience, and product packaging.
The Sharks saw potential in their unique service, and this caused a heated back-and-forth. Lori Greiner teamed up with guest Shark Rohan Oza to offer $400,000 for 20%. Barbara Corcoran worked with Kevin O’Leary to propose $500,000 for 20%.
In the end, Lori and Rohan won with $500,000 for 20%. Following their memorable appearance on Shark Tank, the knife sharpening startup received a lot of attention. Although they shook on a massive deal, it reportedly never closed once the camera’s stopped filming.
Product Demonstration
Dull Knife Test
The Knife Aid service claims to be able to sharpen dull knives to a razor-sharp edge. To demonstrate this, the Sharks are shown a dull knife and a sharp knife, and asked to cut through a pineapple with each.
The dull knife struggles to cut through the tough skin of the fruit, while the sharp knife slices through it with ease.
Sharp Knife Test
Next, the Sharks are shown a rope and asked to cut through it with a dull knife and a sharp knife. Again, the dull knife struggles to make a clean cut, while the sharp knife slices through the rope with ease.
The Knife Aid service offers a solution to the problem of dull knives, which many Americans struggle with. Customers can order the service online, and receive a secure, postage-paid envelope to send their dull knives in. Within about a week, their knives will be returned to them sharper than the day they bought them.
Knife Aid charges an average of $10 per knife, with a minimum package of four knives. The service is available for all types of knives, including serrated and bread knives, as well as scissors.
The Sharks are impressed with the Knife Aid service, and several make offers to invest in the company. Ultimately, Kevin and Robert offer $500,000 for 20% of the company, which the Knife Aid founders accept. With the Sharks’ investment and expertise, Knife Aid is poised for growth and success in the knife-sharpening market.
Knife Aid After Shark Tank
Because of this, they sought out new investors through other means. The lending company TQ Ventures eventually funded their expansion plans. According to their website, it costs $69 to sharpen five knives and you can sign up for a subscription service. In September 2023, the company opened up a local knife sharpening store in Conejo Valley.
They expanded operations by offering scissor sharpening and knife repair services. It is reported that their annual sales are around $2 million. Knife Aid is doing fine with a $2 million valuation and has over 14,000 followers on Instagram.
Founder Backgrounds
Mark and Michael’s Origin
Mark and Michael, the founders of Knife Aid, are originally from Sweden. Mark grew up in Sweden while Michael has lived there for a while. Before starting Knife Aid, they founded Happy Socks, a popular brand that sells colorful and stylish socks. They moved to the United States to start up Knife Aid, a modern version of a traditional service business that offers knife sharpening services.
Happy Socks Success
Mark and Michael’s previous success with Happy Socks, a brand they founded, is noteworthy. Happy Socks is a popular brand that sells colorful and stylish socks. Although Mark is no longer involved in the day-to-day operations of the company, he is still on the board. Their success with Happy Socks is a testament to their ability to build global brands and businesses.
Founding Knife Aid
In the past, there were people called “moletas” who traveled from town to town to set up small shops where locals get their dull blades fixed. However, it’s almost impossible to find these people in modern times. This kind of service was what Marc and Mikael aimed to replace.
They launched Knife Aid, a subscription-based startup that provides a modern solution to traditional knife sharpening services. The company offers a blade-proof envelope to mail knives to Knife Aid, where they will be sharpened and returned to the customer.
Lessons from Knife Aid’s Success
Here are three practical tips for aspiring young entrepreneurs looking to pitch their startup businesses effectively:
1. Innovate traditional services
Knife Aid identified a gap in a traditional market—knife sharpening—which had not yet been modernized. They transformed this service by using digital platforms (e-commerce) to offer a mail-in sharpening service, making it accessible and convenient for customers across the country.
Do this: Look for traditional services that can be updated with modern technology. This could involve digitalizing the service, adding a subscription model, or using online platforms to widen the service’s reach. Innovation in delivery and accessibility can be as impactful as inventing a new product.
2. Simplify the customer experience
Knife Aid’s service is streamlined to ensure ease of use; customers simply order online, send their knives in with a provided secure envelope, and receive them back sharpened within about a week.
Do this: Focus on customer convenience and simplicity. Remove barriers to usage or purchase by streamlining processes, simplifying pricing models, and reducing the time or effort required from customers. This approach not only enhances customer satisfaction but also encourages repeat business and referrals.
3. Understand and leverage market entry points
Knife Aid’s founders recognized the importance of understanding the American market and chose to seek strategic partnerships to navigate it effectively.
They presented their business on Shark Tank not just for financial investment but for the strategic value sharks bring in understanding and accessing U.S. consumers.
Do this: When entering a new market or scaling a business, it’s crucial to understand the local consumer behavior, regulatory environment, and competitive landscape.
Partnerships can provide local expertise and credibility. Consider potential investors or partners not only for their financial resources but also for their ability to accelerate market penetration and brand recognition.
Conclusion
Knife Aid is a successful subscription-based startup that provides a modern solution to traditional knife sharpening services. The company was founded by Mikael Soderlind and Marc Lickfett, who noticed the demand in the American market for a contemporary way to get kitchen knives sharpened.
Their appearance on Shark Tank helped them gain attention and the lending company TQ Ventures eventually funded their expansion plans. They have expanded operations by offering scissor sharpening and knife repair services, and their annual sales are around $2 million.
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