SHARK TANK - EPISODE 406
ENTREPRENEUR: Jim Tselikis & Sabin Lomac
PITCH: Cousins Maine Lobster
ASKING FOR: $55k for a 5% stake
BEST PART OF THE PITCH: These two cousins are bringing Maine lobsters to Southern California via their amazing Lobster Shack on wheels. They want another truck or two to help them keep up with demand. The cousins serve up some tasty lobster rolls to some hungry sharks. They have $150,000 in sales and have only been open for two months. The cousins say they are locked in with their suppliers as far as pricing, so prices won't go up offseason.
DO THE SHARKS BITE? Mark wants to know what the economics of the truck are, but goes out when he feels the guys are dealing with nonsense from the other sharks. Kevin wonders why these guys are estimating the value of their company at over $1 million. The evaluation is too high for him. He's out. Daymond also thinks the evaluation is too high and wants the guys to make him a better offer. When they offer 7 or 8 percent, he goes out. Robert offers them $55k, but he wants 25%. Barbara makes the same money offer for 17% equity. This inspires Robert to offer $100k for 25%.
THE RESULT The cousins want to know about strategies. Barbara has some great marketing ideas. The fact that Robert feels these guys want him to prove himself to them has him pulling his offer. He's out. The guys counter with 12%. Barbara knocks her equity request down to 15%. This has the cousins welcoming Barbara into the family.