Tonight’s pre-Christmas Shark Tank show was filled with Christmas related products and elves.
First up was Lite Netics with sales of $118k(?) and net income of $38k(?), patent granted, but the sharks were unimpressed with the lack of competitive pricing. Competitors charge $20 for 50 feet of LED lights vs $70 for magnetic lights. It would be okay to be 20-25% above, but that much of a difference caused three of the sharks to disengage. Surprisingly, LiteNetics received two offers, Kevin O’Leary (Mr. Wonderful) fought with Daymond over licensing offers. I missed some of the details of the show here, but regardless, Lite Netics walked away from the deal. When Kevin & Daymond want in on a deal, fight over the specifics, seems to me you should take something here unless Lite Netics wanted relatively free publicity nothing more.
Morri Chowaiki wants $50k for a 15% stake for his interfaith Christmas & Hanukkah product, a Hanukkah Tree Topper. He’s sold 12,000 online through affiliate websites, as well as In Flight Magazine. 70% wholesale, 90% retail margin. Gross sales $150k in the last three years. 1.5 million target households. They are in Bed, Bath & Beyond. 70% online, 20% In Flight magazine, 10% in the brick & mortar stores. Daymond wants 35% in exchange for $50k. Licensing play from Daymond to have product expansion. Why do these guys sit there and pontificate, especially with Daymond? Morri took the deal with Daymond. I’ve checked out the website and they now sell the Hanukkah Tree Topper from this website.
Ruckpack Combat Nutrition was on Season 4. They are about to sell their products in over 9,000 Walgreens stores featuring their combat nutrition energy product. They’re doing really well.
Rachel & Melissa of Cashmere Hair Girls are asking for $45k for 15% stake. There are hair auctioners. Cost per extension is $105 retailed for $399. Full set of Cashmere Hair. 20 suppliers. They have been in business for six months, with sales for $38k. They did not get a deal but these two ladies are on to something based on search volume. There is a LOT of search volume for
- “hair extensions”
- “human hair extensions”
- “clip-on extensions”
- “clip on human hair extensions”
- “remy hair extensions” and related keywords.
With a little bit of search, ecommerce & digital marketing, these Cashmere Hair ladies could do very well.
TipsyElves recreates the Christmas sweaters. $862k in sales. Nearly half came from Amazon.com. Sells them for $65. Founder has background in SEO. $100k for a $2 per unit royalty and then $1 in perpetuity. Robert offered $100k for 10% equity. The guys took Robert’s deal. And notably, one of the founders has a background in SEO. He’s ranked #2 for “ugly christmas sweaters”. As of today, before Shark Tank’s episode, there were not a lot of people searching for
- Christmas sweaters
- ugly Christmas sweaters
but there are now. Daymond brought up a really good point. One of the problems with ugly Christmas sweaters is “returns”. People don’t want them. Ironically, Tipsyelves.com (@TipsyElves) just made ugly Christmas sweaters hip again likely amongst college kids. My guess is based on the Twitter noise, Christmas sweaters just became hip again, and I’m watching poeple talk about buying them right now on Twitter. Good for Tipsy Elves.
In summary, while TipsyElves has a product line that may be a real hit this Christmas season, the Cashmere Hair Extension product could have year-round demand. Both would make good investments in my opinion.