Another day in the Shark Tank, and another five
hopeful entrepreneurs want to take the Sharks for a swim.
OWNER: Jonathan Miller; Chicago
PRODUCT: Element Bars
OFFER: $150K for a 15% stake
Jonathan and his wife make custom energy
bars. He got the idea from seeing all the unpronounceable ingredients on
OTC energy bars. He's grown his operations, and he's hoping to take his
project to the next level. Users visit his website and they create
everything from the ingredients to the labeling. to demonstrate,
Jonathan's done his homework on the Sharks and made his own bars for
each one. Barbara's "Sweet and Smart Bar" was chewy.
Is the company valued at a million? They sold
30,000 to date. They doubled their sales and gross $12,000, $50,000 so far.
Kevin O says that the value is insane. It's not a million dollar business.
Robert asks: what's more important, the idea or the execution? They all agree
that it's execution, but they don't believe it's worth a million. He's invested
in $50,000 himself. He wants more than 100% of that, but he's willing to prove
Kevin O is struggling... but he's out. Barbara
doesn't believe that the market is there, and if it is there, someone's going to
knock it off. Daymond wants 75% of the business. Kevin H offers the money and a
4% royalty in perpetuity for everything. Daymond's offer would limit future
growth, so he declines. Robert is out as he would not accept anything more than
Jonathan turns down Kevin H's offer... Kevin H
counters with this: 35% for $150,000 and 4% royalty. Jonathan wants to talk him
down to 25%. Kevin H makes a final offer split down the middle...
ACCEPTED: Kevin H offer of
$150,000 and 4% royalty for 30%.
REVISIT: Mr. Tod's Pie Factory.
Mr. Tod's business is booming. Within
five minutes on QVC, he's sold out of pies, and he's on course to make
millions this year.
OWNER: David Chodosh; Manhattan Beach,
PRODUCT: The Fizz
OFFER: $150K for a 25% stake
David invents toys and games, and he's
very passionate about his product, investing $50,000 in his product.
He discovered the root beer float and decided to
reawaken the sleeping giant by making a preloaded ice-cream product that fizzes
upon the addition of soda. It's fun.
Last year's sales are $84,000 from vendors and
ice-cream stores. Coca-Cola wanted to order some for a giveaway, but they're not
in the ice-cream business.
He's not the ice-cream guy or a soda guy, so
Kevin H, Daymond, and Barbara are out. There's only one real option: sell it to
the ice-cream guy and have them license the idea. The two dragons-turned-sharks
are also out.
OWNER: Buck & Arlene Weimer
PRODUCT: Underease Underwear
OFFER: $55K for a 25% stake
Arlene has Crohn's disease, which leads
her to episodes of gas. Buck decided to devise airtight filtered pants
to alleviate the problem (and perhaps save their marriage). Last year,
they sold 37,000. The year before, over 67,000. One pair costs $24.95.
Robert's out. The market's small. Daymond agrees.
Kevin H agrees. Barbara would feel "medical" in those, so she's out. Kevin O's
indifferent, so he's out.
OWNER: Kimberly Kayce; Venice, CA
PRODUCT: Kalyx Technologies
OFFER: $125K for a 20% stake
Kimberly's business was created by women
for women, but for what? She's been a professional golfer, but had since
retired, gotten divorced, and beta-tested a product. She's invested her
life savings on this product, and she's running on fumes.
Her product: a Kalyx sports bra with a specially
designed underwire designed to alleviate breast pain by working with activities
and body types. There is a wait-list of over 250 women to buy this product.
There are five leaders in this market, and 250
women are somewhat disenfranchised by them. How will she compete with that
market share? She also has no patent on file. The money would be used to
Kevin H sees tremendous competition. He's out, as
is Robert. Barbara probably would have to wait until year 5 to get a return on
her investment. She's out. Daymond's also out. She's too early. Kevin O says
that she's nothing. And $125,000 isn't going to get her anywhere. He thinks that
she knows that this is a losing gamble. The Sharks are all out. "It's the
beginning of something else... and the end of this."
OWNER: Heath Hall & Brett Thompson;
PRODUCT: Pork Barrel BBQ
OFFER: $50K for a 10% stake
They're taking pork-barrel spending to a
new level with this product. Two self-described conservatives - Heath
works for a think-tank and Brett is a lobbyist - believe in an age where
everything is being bailed out that they can still use the power of the
American Dream to win over a market. They call their inaugural product,
a spice rub, a "bipartisan blend of herbs and spices".
Daymond says that they're valuing their product
at half-a-million. They have 10,000 units in production heading to stores this
month. They have a 50% profit to produce, and based on their estimates, they're
looking at over a million in profit in a year.
Robert says that it's all about marketing, and
they're too little to market. He and Kevin H are out. Daymond's out. Too
crowded. Kevin O says that they're not full time. They say that this is about
making money for their families. But it's too embryonic for Kevin O. He's out.
Barbara says she's interested, but the money's
crazy. They're prepared to invest another $100,000. Barbara makes an offer of
$50,000 for 50%. Heath & Brett ask for 40% and a pig costume. Barbara doesn't
budge. Heath & Brett... do.
Typical Washington politicians buckling under a
buck. But that's neither here or there.
ACCEPTED: Barbara's offer of
$50,000 for 50%.
Remember, folks... Shark Tank moves to
its new night and time starting September 29 at 8/7c. Until then, the
Shark Tank... is... closed.
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