ENTREPRENEUR: Kevin and Melissa Kiernan
PITCH: The Last Lid
ASKING FOR: $40k for a 20% stake
BEST PART OF THE PITCH: The Kiernans have been dealing with the issue of disappearing garbage can lids. This has led to numerous raccoons tearing through their trash. Retail stores want you to buy the entire trash can, so they don't sell lids separately. That's why Kevin created a water-resistant fabric replacement cover for the cans. The Last Lid clips to the handle and the couple claims their product is raccoon-resistant. They have no sales, but there are also no universal garbage can lids out there.
DO THE SHARKS BITE? Robert has no interest in this product. He's out. Lori loves the passion Kevin and Melissa exhibit, but she can't invest. Kevin doesn't like the numbers regarding how much it costs to produce, what the retailers will need and the selling price. He's out. Mark thinks this is a good product, but doesn't think it is ready to blow up the marketplace. He's out. That leaves Daymond.
THE RESULT: Daymond doesn't like the $200k value attached to a company that has no sales. Kevin offers to raise his equity. Daymond will give him one shot to give him a good number. The offer is for a 60% stake, even though Melissa was thinking 50 would have been fine. Daymond accepts the offer largely because he found himself looking for a garbage can cover a month ago. Robert says he would have sold him one for a lot less than $40,000!
ENTREPRENEUR: Amanda Schlechter
PITCH: Ledge Pillow
ASKING FOR: $30k for a 25% stake
BEST PART OF THE PITCH: Amanda's product is a wedge-styled pillow specially designed for women with large breasts so they can lie on their stomachs comfortably. The product is patented, but Amanda hasn't had the time or money to advertise. She's sold 83 pillows to date over three years.
DO THE SHARKS BITE? Lori doesn't believe that the product appeals to a mass market. She suggests a name change before going out. Kevin agrees that the product will not make anyone any money. He's out. Robert also believes the market would have found her by now if it was there at all. He bails. Daymond can't add any value to what's there. He's out. Mark doesn't believe that Amanda wants this enough, so he's out, too. You've now been kept abreast of all the rejections.
ENTREPRENEUR: Steve Nakisher & Shane Talbott
PITCH: Talbott Teas
ASKING FOR: $250k for a 20% stake
BEST PART OF THE PITCH: Talbott Teas is designer whole-leaf teas and accessories that are steeped in style. There are 23 blends in this affordable, daily indulgence. The guys had $100,000 in sales in 2009. That grew to $350,000 in 2010. They were at $500,000 for 2011 before hitting the 4th quarter. They had a spike in sales after being declared one of Oprah's Favorite Things. They've been on QVC and want the Sharks to help them capitalize their growth. They have a 50% profit margin before they pay themselves. They've invested $300,000 of their own money and believe they can grow the company to eventually sell it for millions.
DO THE SHARKS BITE? Daymond loves the story, but he's already in the marketplace. He regretfully has to go out due to conflicts. Mark isn't a big tea guy, so he's out. Kevin likes the fact that this product is recession-proof. He offers them $250k for 40% of the business. Robert agrees with Kevin's assessment of the company, but he's out. Lori follows his lead.
THE RESULT: The guys ask Kevin if he'd be willing to reduce his equity at 30%. Mr. Wonderful rarely ever changes his mind after making an offer, but he likes these guys. He goes down to 35%. Steve and Shane take the deal. Looks like these three guys are going to have a little tea party.
LEARN MORE: Visit http://www.talbottteas.com
ENTREPRENEUR: Maddie, Margot and Diane Bradshaw
PITCH: M3 Girl Designs
ASKING FOR: $300k for a 15% stake
BEST PART OF THE PITCH: Maddie is the 15-year-old president of the company. V.P. Margot is her 11-year-old little sister. Diane is the mom who refuses to disclose her age. They started their jewelry company for girls from age 8 to 80 in 2006. Maddie made magnets for her locker out of bottle caps when she was 10. This led her to create an interchangeable bottle cap necklace. She partnered with her mom to create adjustable necklaces and adjustable bracelets for kids and adults of all ages. They are in over 1,000 stores and have $5 million in sales over the past five years. Maddie even wrote her own book to inspire other kids to start their own business.
DO THE SHARKS BITE? Kevin wants 30% of the company for the $300k. Lori will go in with him as long as he stays a silent partner. She also wants 40% of the company along with the offer of her being a mentor. Diane wants to hear what else is on the table. Daymond believes there are others who could be more beneficial to her. He's out. Mark wants to partner with Lori for 30% equity. Robert doesn't believe Maddie wants to give up 30%. He's right. Robert teams with Kevin for the $300k for 30%. Now Maddie must decide who she wants to work with.
THE RESULT: The ladies huddle together. They want to partner with Lori, Robert and Mark at 20%. Lori feels that is low, as does Robert. They still want 30%. Maddie will go for it if Mark kicks in season tickets for the Mavericks. He can't do that because they are all sold out, but is willing to let them sit in his luxury suite whenever they want. Deal! These three ladies really know how to play ball
LEARN MORE: Visit http://www.snapcapsonline.com