by Laura Thieme
Debbie of Fairytale Wishes wants $35k for 33% fairytale wishes Lavender Scent sweet dreams for children’s — one is monster fighting bubble gum scented dispenser. Grape jelly scented sprays were another option. Costs $2.16 in the United States, sold $4.99. Sold $5500. Barbara Corcoran says the only feedback that’s honest, is your sales. She’s got a good point there. Telling the sharks she’s only sold $5500 is not a good thing to hear on the Shark Tank. Love Lori’s idea of 5 bottles & likes her creativity. The best thing about potential investors is that
Note: I’ve said it before, if you’re going to get in front of the sharks on national TV, have a kick-ass product with IP protection, or substantial sales – more than $5500. If I put Bizwatch in front of the Sharks, I’d have $500k in annual sales with 25% sales growth each year.
Peoria, Illinois’s Echo Valley Meats – was told he was unprepared because he did not know their new customer cost of acquisition. Business has exploded, 6700 orders. Deals with Amazon and Costco resulted and sales have grown substantially.
Two firefighters from Austin, TX have invested $20k of their own money to The Freeloader, a strap-on backpack child carrier that can carry up to 80 lbs. Crowdfunding raised $40k. Guys are asking for $200k for product manufacturing and operating expenses. Safety came up and was an immediate concern. Corcoran suggested it needed to be sold with as demonstration. But Robert Haverjac is a dad and wants to go down the journey with The Freeloader. He offered $200k for 33%.
Two sassy girls from L.A. – $50k for 20% equity – cooking lifestyle Kook’n Kap. Cost is $3.70. The biggest mistake here was it was labelled “flammable”. This error alone is a red flag. They say it’s non-flammable. None of the sharks wanted this opportunity.
Chris of Rapid Ramen Cooker – $300k for 10% – that’s a huge valuation – $3M. Cooker sells for $5.99. 2500 stores – Albertsons, Safeway. He’s a sales guy through and through. Reservoir design patent pending. Sales in past month $80k, 80% retail. These guys know their numbers, don’t mess with them. Needs capital for inventory. Mr. Wonderful is about to make an offer. $1.10 royalty – then he gets .50. Zero equity is pretty impressive. Lori is concerned about the ability that others would have to come in and crush him by replication. She & Barb were out. Robert will give $300k for 40%.
Note: I actually like Kevin’s deal better than Robert’s.
Royalty is .75 until they get $300k back. Robert gets 25% equity. Chris wants it for 25%. Cuban $150 for 20% and a $150k loan. Chris countered – this guy can negotiate under pressure and hold his own! He got Cuban f0r 15%.