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GSNN
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Previous Episodes August 9 August 16 |
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You have the dream. They have the money. But do you have what it takes to swim with five of the business world's elite sharks? Recaps by Chico Alexander, GSNN
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Episode 3 First in the newly refurbished Tank tonight... OWNER: Marian Cruz She believes that every home cook will want her new product after years of using bulb basters that don't baste and basting brushes that don't brush. The battery-operated gizmo is a bulb baster, a basting brush, and an injector tip for marinades. She only has a non-working prototype and a dream. And her rationale for the product? "It does more than one thing." That's all she has. She's a nice enough person who couldn't tell O'Leary if he could make a profit, so he's out. Barbara's out for the same reason. Robert follows suit, as he says that Marian has only a bubbly personality that the Sharks love and little else. Harrington knows that there is a market. He decides to make an offer of $35,000 plus a 2% royalty for 100% of the product. But we're not done yet. Daymond counters with $40,000 for 51% plus a 2% royalty. He wants to build a bigger brand as a manufacturer. He raises to $50,000. So Marian could take Daymond's offer and be a partner on the manufacturing side... or give it all to Kevin H and focus on marketing. In the end... ACCEPTED: Kevin H's offer of 100% for $35,000 and 2% of the profits OWNER: Bryan Parks; Eugene, OR Living in Eugene, Brian stays true to his goals of being a "green" advocate. He was aware of a resource that was going to waste thanks to living in China for a time. That product specifically... art made of chopsticks. He has recycled a few chopsticks into lamps and wine racks. His best selling product is a fruit basket worth $30 that folds up. He's done 500,000 in sales, but he only started making a profit when he made the fruit basket, charging over $100,000 for the capital. O'Leary does the math and calculates Bryan's guesstimation as a million dollar business. Harrington says that this is not a "gotta have" product. It's a "nice to have". He's out. Robert thinks that it's a small business. He's out and so is Kevin... and Daymond... and Barbara basically says that he's got no business being here. All the Sharks are out, but Robert does get a fruit basket for his wife. OWNER: Lori Lite; Marietta, GA She's a mother of three who has a very stressful brood. Her aunt forced her to go to stress-management classes. She used the techniques she learned on her son... and it inspired a home business. Her house is on the market, and she believes that parents need to know about this product. Will the Sharks bite? She created a story that entertained and incorporated a stress-management technique. That turned into a line of books and CDs that promoted such things. She wrote, produced, and published her own material, her best being "The Angry Octopus". She moved 30,000 units totaling $180,000, making $50,000 in profit. O'Leary wants to know why she hasn't gone to a publisher. She did go for the first two books, but they didn't pay well. The only way she'll make money is massive distribution through Borders, Barnes & Noble, and Amazon.com. Robert's lost by having all of the distribution channels, yet nothing's happening. He does the math as a million-dollar business is only making $50,000. Lori thinks that some of this is from belief. Robert's out. Harrington would only focus on ONE item. He's out. O'Leary offers up $250,000 for EVERYTHING. Lori... refuses. Kevin's out. Daymond offers $250,000 for 51%. Barbara counters the same deal for 50%. So does she want equal partnership or does she want the Angry Octopus brand to be out there? Lori decides to phone-a-friend, her husband Rick. He says that she has to play hardball and that Daymond's offer wasn't what they were considering. She comes back with an offer for only 40% for $250,000. She thinks that it's fair. Barbara withdraws her offer then and there. Daymond also withdraws his offer if he cannot get control. Lori loves Daymond's idea... but Barbara's deal is more attractive. ACCEPTED: $250,000 for a 50% stake And no, Lori doesn't know what happened. NEXT... OWNER: Ken Bradford Flash cards... CD... Guy in a funny suit. Example: PENCIL-vania through a HAIRY BURGER (Harrisburg). Ar-CAN SAW through a can and find a LITTLE ROCK. COW-lifornia has his TOE on a SACK of MINTS (Sack Mint Toe... Sacramento).. I got a million of these! He sold... ONE. The business is not worth anything right now, so Kevin O is out. Barbara thinks that it's an adorable idea, but again, the business is not worth anything. Same with Harrington and Daymond. Robert has a couple of cards for him... Eye... am OUT. Last into the Tank tonight... OWNER: Jeff & Josh Cohen, Pleasanton,
CA The Cohen boys love music and credit it for fostering a father-son relationship. This all may be for naught if he doesn't get the backing that the Sharks can provide. The guitars don't just look good or sound good... they also fold in half thanks to a patented hinge. It fits on her back. Kevin O wants to see if he'll have to retune it after putting it back together... He also wants to show off his mad guitar skills. The Cohens own the patent to the hinge. They launched earlier this year and sold all 800 of their units. They want more capital to build more units. So far, they sold $400,000 of guitars, but are still in the red. The math suggests that the business is worth $10 million. Kevin O sees greed... but there are three million guitars sold in the US every year. Robert suggests collecting royalties from the hinge on the back of other guitar manufacturers. It's easier if he can demonstrate market acceptance. But in the end, Robert suggest selling him the patent. Jeff says 49% for $1 million. Kevin O counters with $500,000 for 51% of the company that owns the patent. He has experience in licensing. His whole company, sold for $3.2 BILLION, is in licensing. Jeff doesn't want to give up 51%. Robert pulls out. Kevin O says that he wants to protect Jeff from himself. Harrington says go 25% to bring the TV to the table. Barbara's too nervous to be in. Daymond isn't sure of what Jeff wants out of this, leaving the two principles and their deal, a combined 51% for $500,000. Jeff Cohen... doesn't accept for more than 50%. BIG MISTAKE. Kevin O says that there is no tomorrow. "You're dead to me when you say no to my deal." Robert? "I'll send you an invoice for my time." That was painful to watch. He could've made some money... instead, he's going to try and has something out on his own, and with that, we put the Sharks back in their gilded cage for another week. To see this episode in its entirety, go to www.abc.com/primetime/sharktank. |
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