After four weeks of repeats, Shark Tank returned with the first new episode of 2015. The Sharky Award for entrepreneurial excellence for this episode goes to……
Zander from Doorman……This service allows customers to schedule package deliveries using a mobile app. Subscribers can pay $3.99 per package or $19 per month for unlimited deliveries.
Zander’s costs include warehouse space and drivers who use their own vehicles to deliver packages. His biggest cost is customer acquisition cost. He is currently delivering in San Francisco and will be expanding to Chicago in the near future. Doorman was described as a company like Uber. It requires their drivers to buy their own vehicles and works best in heavily populated areas. Like Uber, it will be expensive to acquire new customers and scale the business.
Zander had the perfect demeanor in the tank. He came across as a friendly, humble, knowledgeable guy who knew his business. He answered all questions without hesitation and ended up accepting Shark Robert’s offer of $250K for 12% of his company.
Best of the Rest……Nick and Elyse from Bantam Bagels got a nice deal from Shark Lori. Their product was unique and tasted great…..bagel balls stuffed with cream cheese or other assorted goodies. They currently have a store on Bleeker Street in New York City where they sell the bagel balls for $1.50 each. This husband and wife team gave a great presentation (samples were given to the Sharks……they all loved the taste!) but Nick hadn’t given up his Wall Street job and that concerned Shark Robert. He wasn’t convinced they were “desperate enough” and thought they should be rolling this out much faster.
Soo, Arum, and Dawoon are sisters who started an online dating service called “Coffee meets Bagel”. They are smart and very well-educated (Harvard, Stanford, etc.), but the Sharks lost interest when they learned their breakeven point was $10 million in revenue (per year) and they were paying themselves $100K each. They also made a strategic error when they wouldn’t reveal the number of subscribers they had. They said it was somewhere between 100K and 500K users. That prompted Mark Cuban to say, “you can’t not tell us that”. He dropped out immediately.
Julie from Skinnyshirt gave a nice presentation but had too much working against her. She had declining sales due to vendor quality and delivery problems. No investor likes to invest in a company with declining sales….especially when the entrepreneur has no background and experience in that industry. Julie was in the publishing industry before starting this clothing company.