Headphone Company Creates Pennsylvania Jobs Using EXIM Export Credit Insurance
July 19, 2019
(Ex-Im Bank)
Washington, D.C. – An entrepreneurial couple from Pennsylvania grew their
small business from a kitchen-table operation into an award-winning company with
27 employees whose jobs are supported by international sales backed by the
export credit insurance of Export-Import Bank of the United States (EXIM).
In 2007, Dr. Wei-Shin Lai, a family physician, and her husband, Jason Wolfe, a
video game developer, founded AcousticSheep LLC, a small business in Erie,
Pennsylvania, that manufactures comfortable headphones designed for sleeping and
running. International sales have grown about 15 percent each year, and the
company now exports its products to 16 countries.
To draw attention to the White House’s Made in America Week, EXIM is
showcasing companies such as AcousticSheep, whose success in exporting
illustrates how American businesses, both small and large, contribute to U.S.
economic prosperity by sustaining and creating jobs in the United States.
Dr. Lai came up with the idea for AcousticSheep’s headphones when she found
that she wasn’t sleeping because of late-night phone calls from patients.
Struggling to fall back to sleep, Dr. Lai would listen to meditative music to
help her relax but couldn’t find comfortable headphones to sleep in. She
decided to invent the product she needed by embedding thin headphones into soft
fabric, similar to a headband, which she found more comfortable than regular
headphones for sleeping and traveling. Dr. Lai describes the product as
“pajamas for your ears.” The success of SleepPhones® was followed by
RunPhones®, which are made of a moisture-wicking fabric to make them suitable
for exercising.
As AcousticSheep grew, the company began selling its products overseas but
experienced difficulty when customers defaulted on payments. In 2017,
AcousticSheep turned to EXIM and now uses the agency’s short-term export
credit insurance for protection against the risk of nonpayment of foreign
receivables. EXIM’s insurance has enabled the company to continue increasing
its exports, which today account for about 25 percent of its sales.
“We want our international customers to feel like we are partners, with a good
deal of trust,” said Dr. Lai, AcousticSheep’s CEO. “Part of that is being
able to extend credit terms. Plus, to grow, we need to sign on new partners.
EXIM gives us confidence to try new countries.”
With EXIM’s support, AcousticSheep has expanded into new markets and increased
export sales. Since 2017, EXIM has insured nearly $95,000 of the company’s
exports.
The Consumer Technology Association has honored AcousticSheep as the Small
Business of the Year, and the Small Business Administration has named Dr. Lai
Pennsylvania Small Business Person of the Year.
“EXIM Bank has helped increase our confidence in working with distributors in
countries we may not have previously considered,” said Dr. Lai. “We plan on
using the agency indefinitely.”
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