In the Update segment of last night’s episode, Shark Lori took several of her consumer product companies to exhibit at a large trade show and she revealed an amazing statistic. These companies combined annual sales prior to their appearances on Shark Tank was $8 million. Fast forward to the trade show, their combined annual sales are now $188 million! Lori has clearly been the dominant Shark in terms of Return on Investment results.
The winner of this episode’s Sharky Award, given for entrepreneurial excellence, is Sean and Steven from Pride Bites.
Pride Bites sells personalized pet toys and accessories. To date, 70% of their sales ($1.4 million) has been generated thru retail channels. The Sharks immediately saw a large opportunity to ramp-up online sales. Sean and Steven appeared knowledgeable and committed to growing their company. They ended up getting a deal from Sharks Lori and Robert. Once they help beef-up the online presence and capabilities, this should be a home run.
Best of the Rest…..Chris and Jason from Coolbox make a toolbox that can best be described as a “smart toolbox”. In addition to carrying tools, it charges phones, provides blue tooth capabilities, etc. Their company was so cash-starved, they couldn’t deliver their current orders. Despite that, they remained cool and showed no signs of desperation. They had successfully bootstrapped their company with $50K of their own money and needed a cash infusion to move forward. Lori made a deal that called for a $500K line of credit in return for 15% equity. This should be a win-win if it makes it past due dilligence and they can figure out how to reduce the cost ($110 each) and price ($249 each) of the Coolbox.
Chris and Jeremy from Trobo sell a “story-telling plush toy”. It was basically a teddy bear with a speaker in it. The content was not compelling (it was crowd-sourced!) and it was over-priced at $60 each. They had sold 600 units but failed to draw any significant interest at Toy Fair. Despite all of these red flags, Shark Robert offered $166K for one-third of their company thinking he could get a large licensing deal for them. He sees this as a “content delivery vehicle” not just a talking plush toy.
Comic relief was provided by Van and Chris from NoPhone. This was a very entertaining and funny pitch! Their NoPhone looks like a smart phone, but is only a piece of plastic with nothing inside! They believe it is going to become “the pet rock of our generation”. Unlike the pet rock, which was amusing right out of the box, the NoPhone requires Van and Chris’s comedic spoof to make their product “work”. No deal here.
OVERALL EPISODE RATING……………..B