A $60 beach tote transformed Bogg Bag into a $100 million a year business.

Kim Vaccarella's closet used to be a graveyard of discarded beach bags.

In 2008, a mother of two boys was constantly seeking a durable bag for her family's frequent trips to the Jersey Shore, as straw and mesh bags were not suitable for the sand and moisture of the beach, while canvas bags quickly became dirty.

She wanted a spacious vehicle that she could easily clean and maintain at the end of the day, according to CNBC Make It.

Vaccarella determined that she required an EVA foam bag, which is a water-resistant and rubbery material similar to Crocs. However, she encountered a problem: no such bag was available.

"The 54-year-old admits that he lacks artistic skills and simply drew out a square bag with holes and handles on paper when he realized there was nothing like it on the market."

Vaccarella had read all the "Millionaire Mommy" books and was always searching for ways to increase her family's income. She sold items on eBay and experimented with purchasing website URLs that could potentially become valuable in the future.

""I've always been a bit of a Lucille Ball, with a penchant for harebrained schemes to become the next big thing," she admits."

It was discovered that Vaccarella had accurately identified a demand for a spacious, easy-to-clean bag that can stand upright without collapsing.

After sixteen years of developing her idea for the perfect beach bag, Bogg Bag is projected to generate $100 million in revenue this year.

The journey of the product from a rough idea to a Target exclusive collection was challenging. The company almost failed when its first order went awry.

Vaccarella transformed Bogg Bag from a concept into a billion-dollar enterprise.

Accidentally starting a business

Vaccarella, who had been in a successful commercial real estate career for 16 years, initially dismissed the idea of manufacturing Bogg Bags due to her lack of experience in the field.

Vaccarella was inspired by Crocs' acquisition of Jibbitz for $10 million and wanted to develop a bag idea and sell it to the highest bidder.

"If Jibbitz could be sold for $10 million, I believed I could get $50 million for Bogg Bag," she says. "At that point, it was all Monopoly money. I was just making up these figures in my mind."

Vaccarella took several years to obtain a patent for her bag and locate a factory in China. In 2010, she finally received a prototype, which she adored. Despite her inability to sell her idea, she remained convinced of its potential.

Vaccarella purchased 300 pink bags from a New Jersey shop and began attending trade shows to expand her business knowledge and seek potential retailers.

Currently, Bogg Bags are available in three sizes and a variety of colors, with prices ranging from $55 to $100. However, determining the initial price for the bags was challenging. Vaccarella admits that there was a lot of speculation involved in setting the $60 price tag.

"She admits that she was unfamiliar with wholesale and retail pricing, so she relied on her intuition and came up with a price. She explains that she based her price on the cost per piece she was paying and then doubled it twice to arrive at a reasonable wholesale price."

In 2012, Vaccarella made a major financial commitment to her business by placing a $30,000 order for 1,200 bags, which felt like spending $1 million.

"We prioritized saving for our children's college education from the beginning. Although neither my husband nor I attended college, this was a significant goal for us."

Upon receiving her shipment, Vaccarella discovered that the bags, which were supposed to be bright yellow, were actually streaked with black.

"I couldn't sell these bags because I always imagined them to be Nordstrom or Bloomingdale's bags, and there was no way to fix it."

Her company was bankrupt due to lack of products and funds for inventory. It would take four years before Vaccarella would sell a Bogg Bag again.

Rising from the ashes

Hurricane Sandy hit the Northeast shortly after Vaccarella received her botched $30,000 order. In response, she and her husband donated the defective bags as part of a care package for storm victims. They created a Facebook page to inform the public about their efforts to distribute resources.

As the area started to recover, people began thanking Vaccarella for the donation and inquired about more bags through the Facebook page. Vaccarella was thrilled to hear from them, but knew she needed to reconsider her approach for Bogg's second attempt.

"The prospect of beginning anew filled her with the same fear she experienced initially," she admits.

Several years were required to revive Bogg Bag, which involved locating a new factory in China and obtaining a $120,000 investment from a family friend to settle debts and increase inventory. The company resumed operations in 2016 and experienced steady growth.

""On weekends, after work, I would do Bogg Bag at night. My husband, son, and first employee, who is still with us today, would assist me. We would pack, tape, load, and unload trucks. It was challenging at first," she recalls."

In 2018, Vaccarella's business reached $1 million in revenue, making it too large for her to manage in her free time. After 26 years in real estate, she resigned and focused on expanding Bogg Bag's presence nationwide.

Blowing up during lockdown

Despite steady growth, it was only during Covid lockdowns that Bogg Bag's revenue skyrocketed to $4 million in 2019.

She says, "We quickly discovered that it had numerous uses, and Covid was one of those times where we saw a lot of uses flourish."

Nurses and teachers quickly fell in love with the bags due to their durability and antimicrobial properties.

""It was a matter of teachers and nurses bringing things back and forth to school or work and wanting to make sure they didn't get sick," she says."

Similar to Crocs, Bogg Bags are designed to be customized with accessories. The company offers a range of decorations that can be easily attached to the bags, as well as additional features such as dividers, pockets, and a sturdy cupholder capable of holding the popular Stanley Quencher.

Despite bringing in $54 million last year and being on track to surpass the $100 million mark in 2024, Vaccarella is not satisfied and continues to work towards achieving even greater success.

Bogg Bag has recently partnered with WinCraft by Fanatics to offer bags featuring official sports team logos and aims to expand into the Midwest and West Coast. In the future, Vaccarella hopes to establish Bogg Bag retail stores and establish a global presence.

"Vaccarella says that Bogg Bag feels like a dream and hasn't been fully explored yet."

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