SHARK TANK - EPISODE 414
ENTREPRENEUR: Dave Jackson & Dave Petrillo
PITCH: Coffee Joulies
ASKING FOR: $150k for a 5% stake
BEST PART OF THE PITCH: Coffee is served at around 180 degrees Fahrenheit. The two Daves have a product that absorbs the heat from your coffee to make it a drinkable temperature within minutes. Then the product releases the heat it absorbed to keep the coffee within the perfect drinking range for twice as long as usual. They say the right temperature to drink coffee is 140 degrees. It won't burn your tongue and gives you the flavor you desire. They had $575,000 in sales last year. They expect to sell over a million buck this year. They've been doing a lot online, but retail stores like Bed, Bath and Beyond and Office Max are now showing interest in their product.
DO THE SHARKS BITE? Daymond believes the evaluation of the company is way too high, so he's out immediately. Kevin offers $150k but wants a royalty of $6 for every unit sold until his investment is recouped. Then the royalty goes down to $1 per unit in perpetuity after that. Lori offers to jump in on that deal, as does Robert. Mark thinks the guys are crazy to go into retail and wholesale because their cost will go through the roof. Lori disagrees so vehemently that Daymond is convinced to jump back in on their deal. Mark offers them $250k for 12%. He prefers that they not go retail right away because he sees this as an opportunity to sell the company down the road for huge money. The Daves step out to call an adviser who is revealed to be author and entrepreneur Timothy Ferriss. While they chat with him, the four partnering sharks chat about possibly changing their offer.
THE RESULT: While the Daves are still on the line with their adviser, Kevin steps out to them with a preemptive counteroffer. They'll drop the royalty rate on the wholesale unit to $3. The Daves reenter the tank to thank Mark for his offer, but they decide to partner up with the other four sharks. They'll likely hammer out the details over some 140-degree coffee.