SHARK TANK - EPISODE 201
ENTERPRENEURS: Jonathan Boos
PITCH: Wurkin Stiffs, a men's brand and Power Stays, the world's only magnetic collar stays.
ASKING FOR: $85k for a 10% stake.
BEST PART OF THE PITCH: Jonathan came up with the idea for a magnetic collar while running late for a dinner date. His magnetic "power stay" device creates instant hidden button-down collars. Jonathan designs and creates all his products. The sharks realize this guy's the real deal when they learn his product is in Nordstrom's. He's made a half million bucks to date with a projection of $1.8 million for next year.
DO THE SHARKS BITE? Guest shark Mark Cuban loves Jonathan's passion, but he's not the guy to help him. He's out. Barbara's gone, too. Kevin offers $100k for a 30% stake but also wants a 14% royalty. Jonathan doesn't like that deal, as it sounds like a loan. Daymond doesn't like the fact that Jonathan won't let him talk long enough to make an offer. He's out. Robert offers $100,000 for 30% and no royalty. Kevin then drops his equity to 20% but the royalty stays. Robert then goes to 25%.
THE RESULT: In a surprise move, Barbara offers 100k for 20% only if Daymond forgives Jonathan and allows him to be her frontman. Daymond wants 40%. Kevin then drops to 15%. But Jonathan goes with Barbara and Daymond's offer. That'll work, as long as Daymond never has to talk to Jonathan on the phone.
WANT TO KNOW MORE: Visit http://www.wurkinstiffs.com/
Update: Classroom James
Classroom Jams founder Marc Furigay made a $250,000 deal with the sharks that was spearheaded by Kevin O'Leary. The two men visit the headquarters of the Houghton Mifflin Company where Marc gives a sampling of the difficult classroom subjects he makes more enjoyable by setting them to cool music. The execs at this educational firm are impressed enough to give Marc the opportunity to do a national test. Kevin says, "I can smell the money already."
ENTERPRENEUR: Megan Reilly and Sarah Nuse
PITCH: Tippi Toes, a children's dance company
ASKING FOR: $30,000 for a 5% stake.
BEST PART OF THE PITCH: Two sisters parade children into the Shark Tank to demonstrate the dancing and music they use to get kids moving and grooving. They've been franchising their business since 2009. So far they've sold seven franchises for a $30,000 buy-in with a monthly royalty fee. They made $29,000 in profit last year. The sharks are impressed to learn that Megan and Sarah collect interest when they finance the buy-in fee for investors. Kevin O'Leary wants these ladies to come work for him! Their dream is to build a brand and eventually get into DVD sales.
DO THE SHARKS BITE? Daymond believes the ladies will be just fine without him, so he's out. Robert thinks the sisters are trying to take too big of a leap, so he's out. Kevin offers $50,000 for a 51% stake. Barbara wants 20% of the business for $60,000. In order to avoid a bidding war with Barbara, Mark makes a proposal. If he says yes to their counteroffer, they must say yes to him immediately.
THE RESULT: The sisters want $100,000 for 30% of their business. "Done!" Mark closes the deal before Barbara can get a word in.
WANT TO KNOW MORE: Visit http://tippitoesdance.com/
ENTERPRENEURS: Shawn Davis
PITCH: CBS Foods, with a flagship product called the Original Shrimp Burger.
ASKING FOR: $200k for a 25% stake.
BEST PART OF THE PITCH: Shawn Davis, better known as Chef Big Shake, gives the sharks a sample of his shrimp burger, which comes in four different flavors. He's sold over 22,000 units of these burgers with sales grossing around $30,000. Chef Big Shake wants to put his shrimp burgers into every supermarket in America.
DO THE SHARKS BITE? Mark says he'd buy the product, but doesn't know the food business well enough to invest. He's out. Barbara, however, wouldn't buy the product because she doesn't like shrimp. That's why she bows out. Kevin had a bad experience in the risky seafood biz, so he's out. Robert doesn't believe the value is worth what Shawn says it is, so he's out. Daymond agrees the company is overvalued. He'd be buying into Shawn more than he would the business. He's out, too. Shawn promises to keep moving forward even though none of the sharks bit on his shrimp.
WANT TO KNOW MORE: Visit http://www.chefbigshake.com
ENTERPRENEURS: James Martin
PITCH: Copa Di Vino, America's first premium wine by the glass.
ASKING FOR: $600k for a 20% stake.
BEST PART OF THE PITCH: James shows the sharks individually-packaged wine glasses that have the interest of retailers everywhere. He has a winery that makes about 2,500 cases of wine per year and has sold product into 26 states. The company has three different revenue streams. James can license and collect royalties. He can bottle for an industry. And he can launch his own brand. Regarding that last point, he's had over half million dollars in sales in five months. There's also been over $800,000 in orders. James is also negotiating multi-million dollar deals with large wine companies.
DO THE SHARKS BITE? Daymond believes it's just too early in the game for him to invest. He's out. Robert, Barbara and Mark also bail. Kevin O. believes the packaging is the key here. The idea of separating the intellectual property from the wine business is broached. Kevin offers $600k for a 51% stake of the patent. James believes the opportunity is far greater than what he's offering. He wants three million bucks. Kevin says forget it. And on that note, James raises a glass of wine and says "cheers" to them all.
WANT TO KNOW MORE: Visit http://www.copadivino.com/