This episode was originally aired on February 3, 2012. The entrepreneurs were outstanding!
Platinum Sharky……..Travis Perry, Chord Buddy
Travis Perry ended up getting $125K from Robert for 20% of his company. He had built a guitar attachment that lets people learn how to play the guitar quickly and easily. The purchase price was about $50 and his cost to manufacture it was $7. This is a nice gross margin and helped generate lots of interest from the Sharks. He also had actual sales revenues of $500K and P.O.’s (Purchase Orders) that represented another $100k in new business. Travis was passionate and funny. He said he had his product in eight stores in L.A. (Lower Alabama!). He ended up getting four offers.
Gold Sharky………. Pat McCarthy, Liquid Money
Pat had a great looking product. It was perfume that smells like money! He made a great presentation, but the Sharks pushed back saying that a product like that is too expensive to bring to market. Mark Cuban made a statement that all entrepreneurs should remember. He said it’s a red flag whenever an entrepreneur says they’re in a huge market and “if I can just get a small percentage of a huge market, I’ll be fine”.
Daymond tried to bully Pat by saying he’d give him $1ooK but he needed 80% ownership of his company. When Pat paused, Daymond said he would up that to 85% if he didn’t accept his offer immediately. Pat correctly turned him down. Never, ever, take an offer from a potential investor when it doesn’t feel right. Good for you, Pat! You will make it without the Sharks.
Silver Sharky……..Megan Cummins, You Smell
Megan was a delight. She convinced the Sharks she was tenacious and would do whatever it took to be successful selling her soap product. The Sharks loved her and she ended up taking Robert’s offer of $50K in salary for the first year plus an investment of $55K for 20% of the company.
Shark Barbara was unusually aggressive on this opportunity. She made a lowball offer and when it was rejected, she lectured the other Sharks about how “ Women work harder than men”. Barbara is usually not the snarky Shark, so I’ll just write it off to her having a bad day.
Shark chum went to Kyle Rainey of Tail Lightz. The Sharks felt there was too much competition, his designs were dated, and there was nothing proprietary about his product. Kyle needs some Marketing help.