From Turning Kids' Clutter into Cash to a New App to Monitor Your Unborn Baby's Heartbeat

Rebecca Jarvis reveals what you need to know on Real Biz 3.27.2014.
3:00 | 03/27/14

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Transcript for From Turning Kids' Clutter into Cash to a New App to Monitor Your Unborn Baby's Heartbeat
Hello and welcome to -- -- I'm Rebecca Jarvis here in New York City and here's what's happening this is what's on our radar earn big bucks from all -- -- you get when you have a baby plus. A new app that lets you monitor the heartbeat of the baby. -- filling your belly and maybe it's time to -- king entertainment's addictive game to candy crashed will explain let's get right to it does this sound familiar. Here in new parent and your home is filled with kids -- that don't fit toys galore. And stuff your new baby just doesn't use any -- well it's clutter everywhere so many of my friends are going through this right now. Many of you -- they're probably -- as well and if instead of storing it top theater donating it you'd rather sell it. Well we've got a solution is the idea behind -- just between friends a franchise that creates bargain stores. For all things baby Shannon will burn is the -- pandering here with her -- Kathy Winslow franchisee it's a nice to have voting anyway we're excited to be here so explain what this is Janet. OK so it's -- children's and maternity consignment events we now have storefronts are franchisees rent a space in the territories where we have franchise since. And they advertise to the community to get families you have -- -- maternity clothes toys and baby equipment that they're ready to get -- bad. Those people those family -- bring their items to the event -- tagged. It's that much like a department store. We opened to the public -- -- -- fifty to 90% off retail. That families that participate may. Sixty to 70% -- whenever they're selling 67%. And I read my notes it's something like 350 dollars that the typical sale. If you come in with yourself you're gonna make 350 dollars across the country that's the average that we have something we have some families that participate have to report heads and they may make a thousand dollars or. 15100 dollars -- -- it depends on how much. People brain Kathy. There is some start up costs here to becoming a franchise the I think I read it was -- 25000 dollars on average -- typical person so. There is some there's a little bit of risk involved here. What -- you do it. Well I decided when my daughter was three years old I wanted -- -- clothes for her. My first event was a little bit different because it was actually in my living where I just cleared all the furniture out put plastic on the floor and then. How about thirty friends over -- so I started small but now. Franchise in it can grow a lot quicker than what I did she's now -- 70000 Jesse Kelly may have had Allen's -- at 8000 square feet people have about 14100 can signers. At the upcoming event in April and Oakland city that are registered and ready to go attacking their items. And I thought you where talking earlier about this one easy here it's it's tagged as sport dollars that's what somebody could buy it or not between -- and this is a boutique -- Lindsay anywhere I like an eighteen dollar one sees so. Like Shannon said about 90% off of what you would pay retail brand new in the store and it looks brand and I think he's yet to decide what they want to sell their items where -- we may have. Fifteen at the exact same stroller and someone selling -- for thirty and selling ever had and now -- We have we have lines that easily go around the building and people -- and Kirsten debates I -- space. What is the biggest ticket item that sold when your sales we have you know high end diaper -- believed that an indictment bags are like a 38 -- -- you presently. Like a form of PG -- pickle bottom -- is a big breakthrough you -- I'm not a lot but I -- I'm sure how well. Annual and it almost rollers -- -- it's like we have strollers and Ehrlichman cadillacs for kids for babies and and the -- go crazy elections that they'll wait in line for up to two hours just to be the first to get in the doors. Things venture Angel parents are concerned about is actually new parents recalls and and these are the kinds of things that -- -- -- with car -- how EU. As -- reseller these goods protect consumers and the great thing about just between friends is that we have and and -- Only in charge. Recall and she. -- this information out to the franchisees and to the people in charge of pulling items from the sales but before and -- the public. And earnings came -- she works in -- closely with the consumer product safety commission and other safety organizations concerned number one concern is making -- -- think that things were selling. Are safer. And Republican signers as their -- Right on the -- on our website is a recall -- -- you can just type in. -- -- -- and it'll bring up anything that has been recalled with that name so. One -- I was just looking on their my coffee maker had been recalled and bring it brings up anything that's that's on the -- registries. And in terms of -- I'm sure were a lot of people. Hold it like eleven overwhelming at first to think about being a franchisee. So I'm sure for a lot of people they start out they -- -- they sell of these things they make some good money and they're excited about maybe I could actually be doing this on a larger scale yeah. What's your advice to people were listening right now. At about trying to go that -- and just doing a little more becoming the franchisee. I think if you're good with people at your well organized and you have a lot instituted this. It and if you don't give up easily. -- he'll start off in a little it that's a smaller in the smaller venue you know finding the right location. And then getting your closest friends involved because they will be your biggest cheerleaders. And I feel like we've grown a lot from word of -- just having an exceptional event with high quality items I am really picky about what comes into the in the -- that's -- yesterday don't want people sifting through Jack we don't want it to feel like a garage -- -- coming and they're like oh my goodness I had no idea how organized this would be you know all of the -- -- together all of the door either. Together and keep them coming back got next like it doesn't get -- on one by having a budget jog -- don't want -- -- come back got an -- and everything's organized by size by gender and -- -- Easy don't you know walking around have a list and get what she needs -- and we get all -- for shopping to you on our. You know bring a list of what you're looking for and -- -- -- for people -- -- sale dot com JBS -- that just between friends adding that he thinks so much for joining us up real -- minus. That's the good stuff for now. Anybody who's got a baby check it out. Woburn baby clutter to a new app that says it can help you track your -- -- -- heartbeat while it's stealing your -- It's called -- -- -- -- -- record and share their baby's heartbeat. Using just -- handheld device Smartphone. And is it safe that's our question I have so many of them here to explain at all. -- airs at your show and she is co-founder of -- she's joining us on Skype thank you so much for joining us there's. Thank you -- -- me in terms of what this device does how does it work. Well it's a small device connected -- years Smartphone that enables you to hear their -- -- these. And then within that ad you can -- of legalization of the heartbeat and -- and a collection. You can recorded and then share it -- your loved -- family or friends how is it back on the market and our people actually buy. So we launched -- in Europe in Germany. In the empire and then -- lines in this State's a month ago and we have gained huge traction so far. We sold nearly 8000 devices. 8000 devices. It because I wonder if somebody who I -- number of my friends have gone through pregnancy it's it's definitely a time where your very worried about your health and the health of your child. How -- -- does this play into may be giving some people a false sense of security or even anxiety. Over the health of their top failed. The so. A lot of our customers. Had previous bad experience with pregnancy so they're answering a new -- with a lot of anxiety. So real quick bigger that listening to their -- -- -- it's something that brings. A little bit of peace of mind especially in the beginning Bob pregnancy when they kind when they -- killed there and baby moving yet. But we're trying to teach them also how to check other kings in pregnancy. An app like think -- movement which is also an important sign up babies -- -- he. Pregnancy weight gain. Prenatal -- there -- -- examinations so they know what's going on. In prenatal care. On fetal development week by week with illustrations. I'm so we're just trying to build the whole. Quantified -- platform. Are -- it -- so that we teach women how to check the themselves during pregnancy. Why that is important and what's being stitched back. And how -- selling this sport right now. -- telling her a 129. Dollars a 129 dollars. And in terms of your margins how are you doing -- you are you spending more money than you're taking -- right now are you hoping this becomes huge enough so that you can scale it up. So so far we are and it really small company did since fired up. But I think we we we we're getting enough to build the platform -- -- And the software to provide -- software. And algorithms within their ad just to provide. A premium on quality product what. Guidelines how locked in for example can a person knew was this during a day and is there any issue. For example with those electronics so close to your unborn child. So we will we have played really say we've developed product that they're safe for you and -- your child. -- so you can use a device. Everyday. And we provide debt debt at displayed on an ever played moment. So that your phone dozen. And -- and -- signals. Well it's really fascinating -- -- -- as the company airs at thanks so much for joining us very early in the morning from San Francisco. Thank you so much -- questions. We'll shares of king are getting -- -- the candy crash maker's stock now -- close to 20% after debuting yesterday morning for the first time. So wary investors hour on this wildly popular apple we want to welcome Deborah Borchardt she's markets analyst. For this street and Everett so nice to see you thank you for having me -- is really a surprise I don't think there was a person out there at least not one that I read about who was saying this is. I huge IPO it's gonna be great river every homeless really excited about it because we -- -- -- -- some of -- are addicted -- the game. But if you really look at the numbers you saw that going from September to December at the numbers were coming down and -- there was a big fear. -- -- with going to be a one hit wonder with candy crash. Right because this -- -- company it's a UK. Maker of games the biggest one is candy crash candy -- did very well but like all games on the Internet everybody gets really hot -- something for awhile. They move on to the next big fat. And if you're the maker of games you gotta keep churning out those bats in order to be profitable well that's correct everyone remembers we were hooked on Angry Birds and -- was being of people were hooked on aren't well. And so there's a real worried that this will be a one hit wonder that they're not going to be able to get people onto. The next game. What does -- -- eighty you about technology. To see and I peel like -- come out you know the fact that there was investor interest. Prior to it being public in owning this company. Facebook's out making multi billion dollar acquisitions what feels like on a daily business. Everybody has been calling this -- frothy they've been calling it a bubble now for a handful of years but do you feel like we've actually gotten to the point where it we could see it tipping point. I I don't because I think that this is specific to this company we just had coupons dot com go public a couple weeks ago and they're up 63%. So people look at coupons dot comment that you know -- This is a good model they're making money I know what I think they're going to be sticking around. We're seeing here is just so much uncertainty as to whether people are going to. Step up and buy that next eight I expect we're going to be bombarded with advertising for that next game all the money they just -- on -- IPO. -- it absolutely advertising for that next -- which is an interesting part of how all of these companies online are making their money it's primarily. Through advertising. You know so many of them are having -- Like Google for example try to look for other alternatives to making money on the Internet but advertising is really -- at the end of the day. At the same time. 36% of Internet traffic is hate it's phony it's these bots that people are talking about these games they also make them all -- call micro transactions so unit -- -- deafening and -- are well. I mean I might -- -- I liked honor and I sent that up. But again wouldn't you looked at the numbers for king -- that those players spending money were coming down. From September to December and that just made everyone very nervous I'm not sure how much you could hear of the last segment but we were talking to this app maker -- be. Which is an app that lets moms listen to their child's heart their unborn child's heart -- Just app economy -- -- you you've covered -- you look at it but. But the growth here -- there are no barriers to entry she actually at a really good space right now because. Health and fitness and medical tech is booming and there are so many neat and cool things like what she's doing that are coming on the market right now. That it it is a hot place to be right now is medical health fitness -- Gaining -- -- and a little iffy Anna and I think that that's what this market is shown. Everybody believes king should've gone public last year. They should -- how long and being went public before exiting shouted that they were of one -- wondered that would have been much better -- now. Zynga the maker for those who don't know the maker of farm bill which was really hot at what moment in time as well. So hot today right it was huge that's not huge on Facebook and people went to playing games on their phones and not electronic -- -- And that's where they went wrong whatever we really appreciate you joining us thanks so much for being with -- thank you. And -- you for joining us I'm really is we might hear from you what do you think about Allenby. Would you be into that app that lets you listen to your unborn baby's heartbeat. Tweet -- -- real business RJ until like that this is Rebecca Jarvis from New York have a great day.

This transcript has been automatically generated and may not be 100% accurate.

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