SHARK TANK - EPISODE 204
ENTERPRENEURS: Darryl and Randy Lenz
PITCH: Ride-on Carry-on
ASKING FOR: $50k for a 25% stake
BEST PART OF THE PITCH: Darryl's been a flight attendant for 27 years. During that time, she's seen many parents struggle their way through the airport trying to carry both luggage and kids. That's why she and her husband, Randy, developed a product that instantly converts carry-on luggage into a travel stroller. The attachable seat can carry kids from 8 months to 5 years old. It then folds onto the luggage for easy storage.
DO THE SHARKS BITE? New shark Jeff Foxworthy thinks they have a great idea and he loves the couple's enthusiasm. This just isn't the business for him. He's out. Robert thinks they should go down the licensing road, so he's out. Barbara will give them the $50k for 25% of the company. Kevin O. also makes an offer. He'll give them $50k for 20% of a licensing deal. As Daymond goes out, he warns that Kevin's offer is a sucker deal.
THE RESULT: Barbara isn't against the licensing possibilities; she just thinks they need help marketing the product. With two offers on the table, Darryl and Randy break Mr. Wonderful's heart as they decide to team up with Barbara. Looks like Kevin will have to carry-on without them.
WANT TO KNOW MORE: Visit http://www.rideoncarryon.com
ENTERPRENEUR: Ken Howell
PITCH: Uncle Zip's Beef Jerky
ASKING FOR: $25k for a 20% stake
BEST PART OF THE PITCH: Ken's business is a tribute to his dad who passed away a few years ago. He doesn't use any additives or preservatives for his fresh-tasting beef jerky. One of the sharks sitting before Ken also sells a brand of beef jerky. But Jeff Foxworthy still gives props to a very good product which has a shelf life of about two months. Ken had about $100,000 in annual sales at his peak, but that's dipped to about $40,000 now.
DO THE SHARKS BITE? Robert doesn't think the product has a long enough shelf life and Ken's still not making any money. He's out. Daymond says this is a small business, not an investment. Kevin O. feels the same way. They're both out. Jeff's out because he's in the same business. Barbara's out, as well. She doesn't think Ken needs their help getting his business back on track. He's capable of doing that all on his own. Let's hope he tastes success again in the very near future.
WANT TO KNOW MORE: Visit http://www.unclezipsbeefjerky.com
ENTERPRENEURS: Mike Abbaticchio & Shon Lees
PITCH: Hill Billy Brand, a country-style clothing brand
ASKING FOR: $50k for a 25% stake
BEST PART OF THE PITCH: The country-style clothing these guys produce sells well at rodeos and concerts. The clothes look good and the guys are looking to expand their brand. They have over $271,000 in sales over the past three years. They say the term "hillbilly" doesn't have a negative connotation anymore. Jeff Foxworthy may be a redneck, but he probably has a little hillbilly in him, too. Everyone does! They signed an agreement to get their product into 30 Sports Authority stores as well as a deal to get Hill Billy clothes in truck stops and travel plazas everywhere.
DO THE SHARKS BITE? When the sharks crunch the numbers, they realize the business only makes about $7,000 a year, and that's without Mike and Shon taking a salary. Kevin O. doesn't want to be in the retail biz, so he's out. Daymond and Jeff think the guys should explore licensing opportunities. Barbara's out because she has no licensing contacts. Robert wants to know if Jeff will license the product. If he's in then Robert wants 100% of the company for the product name. They'll pay them a 7% royalty. Daymond's in, too.
THE RESULT: Jeff, Daymond and Robert will pay $50k plus a 7% royalty for the entire company. Mike and Shon counter with $100k deal with a 10% royalty and the opportunity to get the company back if these guys just put it on a shelf. The three sharks counter that offer with $75k and the industry standard 7% royalty. There's a loud hillbilly shout of joy inside the tank as Mike and Shon take the deal.
WANT TO KNOW MORE: Visit http://www.hillbillybrand.com
ENTERPRENEURS: Johnny Gennaro & Vinny Pastore
PITCH: Broccoli Wad
ASKING FOR: $50k for a 20% stake
BEST PART OF THE PITCH: We recognize Vinny Pastore as one those wiseguys we used to watch on The Sopranos. Most mafia men carry their money in a wad, not a wallet. Hence, the Broccoli Wad. Basically, it's a piece of rubber that you wrap around your cash. Barbara doesn't get it. She thinks this product is the worst thing she's ever heard on this show. Jeff, however, is intrigued.
DO THE SHARKS BITE? The sharks wonder why Vinny's celebrity mug isn't adorning the product. They can call it the Vinny Wad. If that happens, Barbara will come back in. Jeff, Kevin, Robert and Daymond are definitely out though. Barbara will put up $50k for a 40% stake and she'll give Vinny half of her stake. Vinny takes the deal, but Johnny isn't sure where he stands. Fear not. He didn't just get whacked. Johnny still gets 60%. Barbara just made sure Vinny became the face of the wad. She still thinks this is a horrible product, but the marketing concept is genius. In other words, fuggedaboutit!
WANT TO KNOW MORE: Visit http://www.broccoliwad.com