ENTREPRENEUR: Megan Cummins
PITCH: You Smell
ASKING FOR: $55k for a 20% stake
BEST PART OF THE PITCH: Megan has a new luxury soap brand that she claims is a breath of fresh air in a snooty marketplace. She had about 1,200 bars made in two custom fragrances—lemon and mint. She tested the market by sending them out to different companies. She learned that people were selling her product for between 7-12 dollars per bar. Some big name companies, like Urban Outfitters, are interested in selling it for around five bucks per bar. Megan also has a paper soap product that would work well as an impulse buy item.
DO THE SHARKS BITE? Daymond admires Megan's tenacity, but this isn't a business he's interested in. He's out. Kevin is also impressed with Megan, but he's not willing to invest in an unproven product. He can't smell the money. He's out. Mark likes her spirit and offers $55k for a 20% stake. Barbara says hold on. She was surprised by Megan. She offers $55k for 40% of the business plus 10 cents for every bar of soap sold. Robert loves the product, but wants to know if Megan will be all in. He offers $55k with a $50k salary for a 20% stake. This has Barbara editing her offer down to a 30% stake. She also says that women work harder. Needless to say, the male Sharks are thrashing in their chairs after that remark.
THE RESULT: Megan has always wanted Barbara to be her business mom, but Robert's deal is just too good to turn down. That extra money as a salary helped tip the scales. Megan could also smell success by having Robert as a business partner.
WANT TO KNOW MORE: Visit http://www.YouSmellSoap.com