Brian Altomare, the brain behind LugLess, found his niche in the airline baggage services industry after facing rejection from Shark Tank in 2013. LugLess offers a unique service that allows travelers to send their luggage ahead of time at affordable rates, positioning itself as a budget-friendly alternative to costly airline baggage fees. The business took off quickly, raking in $215,000 in its inaugural year. In a bid to expand further, Altomare took his pitch to Shark Tank, hoping to secure a $100,000 investment for a 10% stake in LugLess. However, he left the show empty-handed.
Despite the sharks’ concerns about the business being “too pricey” and facing stiff competition from industry giants like FedEx and UPS, LugLess experienced a surge in popularity, tripling its customer base within a year. Altomare’s intuition paid off, as his baggage transportation service provided a practical solution for travelers, especially those with large families or extensive luggage requirements. Customers embraced the convenience and cost-effectiveness of LugLess, allowing them to skip the hassle of long check-in queues and excessive baggage charges. Just a month after appearing on Shark Tank, the demand for LugLess spiked by a whopping 448%.
The company’s rapid growth landed it a spot on Entrepreneur Magazine’s esteemed list of 100 Brilliant Companies in 2014. Altomare expressed his satisfaction with this achievement, stating, “We experienced a 500% growth post-show because everyday travelers connected with our proposition as a wallet-friendly substitute to airline baggage check-ins.” He viewed the surge in consumer interest as a validation of their business model following the national exposure from the show. Satisfied customers hailed LugLess as a clever solution for economical travel.
Altomare didn’t shy away from criticizing the Shark Tank judges for failing to see the potential in his business. He pointed out that the panel comprised millionaires and billionaires who couldn’t relate to the average American’s travel challenges. According to Altomare, the judges’ inability to “walk in the same shoes” as most Americans led them to overlook LugLess’s value proposition in addressing high airline fees and lengthy check-in processes.
Since its inception, LugLess has witnessed substantial growth, now catering to over 250,000 users and achieving what Altomare describes as “full-year 2016 revenue in under two weeks.” He credits much of this success to his Shark Tank appearance, which, despite not resulting in funding, brought significant attention to his venture.
The rejection on Shark Tank served as a humbling experience for Altomare. Despite meticulous preparation for the show, including navigating through a rigorous application process and multiple interview rounds, there was no guarantee of striking a deal. Presently, Altomare’s focus lies on expanding LugLess, forging new partnerships, and honing the business model to enhance the travel experience for the burgeoning customer base.
