A lackluster episode tonite……only Renata and Doug from Night Runner 270 drew interest from multiple Sharks. Although no Sharky’s will be awarded, I’ll give Doug high marks for some excellent negotiating.
He and his wife Renata entered the tank with sales of $260K in the first 8 months of their existence. Their product was originally designed to help people running in the dark avoid potholes. They discovered their shoe lights had a larger potential market in the workplace safety market. Once the Sharks heard about their new “Night Shift” product, they became intrigued.
Doug and Renata were cool under pressure…….they were down to their last $15K in the bank and about to run out of money.They may have been nervous, but didn’t show it. They let the Sharks battle it out and led them into a bidding war. They ended up getting four offers and taking Shark Robert’s offer of $250K in equity and a $100K loan. They only had to give up 15% of their business. Well played!
Adam and Craig from TekDry did a good job presenting their product……a machine that drys wet cell phones. They are currently installed in 82 big box stores and forecast sales of $650K for the current year. They charge each store $80 per month plus a percentage of the revenue they derive from their machine.They have already raised $2.2 million and ended up getting a deal from Mr. Wonderful……..a $500K loan with 13% interest. He gets a 5% equity kicker for making the loan.
Shark Barbara made a great point……technology enhancements will hurt this business. For example, Apple’s latest smart phone release can be kept under water and still work when it is removed from the water.
Wally Amos (formerly Famous Amos) is now running The Cookie Kahuna. The margins are poor (20%) and he had only sold $36K prior to his appearance on Shark Tank. The Sharks respectfully declined this opportunity.
Kara and Shelly from Raising Wild have designed women’s swim suits for a variety of body types. Despite their lackluster sales they were planning on expanding their product line and sales channels. Mark Cuban discouraged their strategy by saying, “If you go too wide, too fast, you drown”.
Shark Barbara made a deal with Kara and Shelly calling for a $100K investment for a 50% equity stake.
OVERALL RATING FOR THIS EPISODE………….C