SHARK TANK - EPISODE 203
ENTERPRENEUR: Kiersten Hathcock
PITCH: Mod Mom Furniture
ASKING FOR: $90k for a 25% stake
BEST PART OF THE PITCH: Kiersten runs an internationally-known furniture company from her garage. Three years ago, she taught herself carpentry in order to design modern toy boxes. They have puzzle pieces as lids. Last year, she made $34,000 in sales. She builds everything by hand and can no longer keep up with the orders. Her supportive husband lost his job, so everything is riding on this venture.
DO THE SHARKS BITE? Barbara thinks Kiersten is going to be a success, but she'll need way more cash if she wants to extend her brand. She's out. Daymond fears the furniture business, so he's out. Kevin H. doesn't think the toy box biz will ever pop, so he's out. Kevin O. will cough up the $90k for a 33% stake, but he also wants a 7.5% percent royalty on all units sold until he gets his money back. Robert makes the same offer except he'll only take a royalty after the company makes $500k.
THE RESULT: Kiersten appreciates both offers, especially considering the position her family is in at this time. After building 328 toy boxes with her bare hands, she opts to take Robert in as a partner. She even promises to teach him how to use a jigsaw!
WANT TO KNOW MORE: Visit http://www.modmomfurniture.com
ENTERPRENEURS: Stacy Erwin
PITCH: Fitness Stride
ASKING FOR: $140k for a 15% stake
BEST PART OF THE PITCH: Stacy's product allows you to get in shape while you're multitasking. He straps his rubbery power bands around the legs of the sharks. Robert, Daymond and Kevin O. waddle around the tank to the delight of Barbara and Kevin H. Stacy says you get double the exercise benefit whenever you perform an activity while wearing his product. He sells the power bands for about 50 bucks. It costs $10 to make them in China..
DO THE SHARKS BITE? The sharks question the value of his company. Kevin O. thinks the product would be a marketing nightmare. He's out. Robert wants to know how he's going to go from $150k in sales to millions. Stacy's answer: Infomercials. Enter Kevin Harrington, who doesn't quite buy the product's effectiveness. He can't invest without a big testimonial base. Robert and Daymond bail, too. Barbara is out because she's not sold on the product. She does, however, likes Stacy's hustle, not to mention his tush.
WANT TO KNOW MORE: Visit http://www.FitnessStride.com
ENTERPRENEURS: The Johnson Family
ASKING FOR: $100k for a 20% stake
BEST PART OF THE PITCH: Mom, Emily, challenged her kids to come up with their version of the perfect toy or game. Flipoutz is a silicon bracelet that holds five personalized coins that kids wear, trade and track online. Each coin has its own customized artwork with a positive message that's meant to represent your interests or hobbies. There's a 10-digit code on the back of the coin so kids can track it as it gets traded around the world. They've sold $20,000 worth of product over the last six months. Their parents have plopped about $250,000 into the business. The sharks are intrigued by the fact that the family has a patent pending on the tracking-trading process.
DO THE SHARKS BITE? Barbara believes the marketing campaign will cost a ton of money. She's out. Kevin H. feels the same way. Mom says they have interest from another company that wants to make 25 million coins and 2-3 million bracelets. They'll pay for 30% of the inventory up front. Daymond offers $100k for 33%. Kevin O. teams with Robert for the same offer which makes Daymond drop his stake to 25%.
THE RESULT: The three sharks opt to join forces for $100k for 33%. 11-year-old Jake says the family wants a little more cash. He wants $150k for the 33%. This forces Robert and Daymond to step out. Kevin O. says the original offer they made was their last. Eventually, the family takes the deal and the kids get a lesson on how to swim with the sharks.
WANT TO KNOW MORE: Visit http://www.flipoutz.com
ENTERPRENEUR: James Mitchell
PITCH: Pure Ayre
ASKING FOR: $150k for a 10% stake
BEST PART OF THE PITCH: Pure Ayre is the only safe and natural odor eliminator on the market because it breaks up the molecules that make the smell. Other products cover it up with a chemical fragrance. The product isn't patented because James is reluctant to disclose everything about it. James has sold about $3.2 million of Pure Ayre. Business dipped when he was booted from the shelves of Walgreens. Kevin O. knows his competitors are great partners with that store and others. They want to crush James before he hurts them.
DO THE SHARKS BITE? Barbara and Kevin H. are out right away. Daymond will bring his knowledge into the mix for a 50% stake. Kevin O. wants to buy the entire company for $150k. James will be fired immediately, but will get a 7% royalty for the rest of his life. Robert thinks James is an awful salesman. He wants to know if he's willing to walk away from his company. James can't give Robert a straight answer. The deal changes after James steps out to call his wife. Daymond teams with Kevin O. on his offer. Robert adds $75k if James walks away. He can't accept that offer. Just like that, the deal evaporates into Pure Ayre.
WANT TO KNOW MORE: Visit http://www.pureayre.com