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Ep416 Episode 416

02/14/13 Season 4 TV-PG
ENTREPRENEUR: Carmen Lindner

PITCH: Gotta Have S'More

ASKING FOR: $75k for a 25% stake

BEST PART OF THE PITCH: Carmen loves s'mores, but she doesn't like camping. That's why she invented the s'muffin. It's a s'more in the shape of a mini-muffin. She has $250,000 in sales over the past two and a half years within the local L.A. market. A few specialty stores currently carry her product. She just started shipping these items at a high price.DO THE SHARKS BITE? Kevin thinks the cost of shipping the s'muffins is crazy, so he's out right away. Mark believes Carmen is so in love with her s'muffins, that she can't see the dollars from the marshmallows. He's out. Robert says the s'muffins are good, but her business strategy is not. He's out. Daymond follows his lead. Barbara didn't actually care for the s'muffin, so she's out. Hopefully, Carmen will have s'more luck outside the tank.

LEARN MORE: Visit http://www.GottaHaveSmore.com
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UPDATE: Invis-A-Rack
In Season Three, Donny McCall failed to get a deal for his collapsible truck rack. Since his appearance in the tank, he had $75,000 in sales in three months. He could have made more, but he ran out of inventory. He signed a licensing deal with a company in Iowa so he can mass produce the clever product he invented in his garage.

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ENTREPRENEURS: Peter & Yuen

PITCH: How Do You Roll?

ASKING FOR: $1 million for a 12% stake

BEST PART OF THE PITCH: Peter and Yuen took the same high quality you get at a sushi restaurant and paired it with the convenience at a grocery store. Barbara steps up to create her own custom-made sushi roll. The brothers dole out samples of their own sushi rolls for the other sharks. The brothers have sold 40 franchises with 15 of them now open. They get a 7% royalty from their franchisees' sales. 

DO THE SHARKS BITE? Mark thinks the sushi business is brutal. He doesn't want to be part of it, so he's out. Daymond thinks the margin will be too low for him, so he's out. Robert likes the business and the sushi, but he can't invest. Barbara feels the presentation was a little too buttoned up for her tastes. She's out. That leaves Mr. Wonderful.

THE RESULT: Kevin offers the brothers $1 million for 22% equity. He also wants a monthly distribution prorated to the owners from the franchisees. The brothers counter at 15%, but Kevin will go down to 20%. The guys ask Kevin how he will help them with the real estate side of opening new locations. He says that's still up to them. At the end of the negotiation, Peter and Yuen take the offer because they believe a strategic partnership with Kevin will help get How Do You Roll? on a roll.

LEARN MORE: Visit http://www.howdoyouroll.com
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ENTREPRENEUR: Bea Arthur

PITCH: Pretty Padded Room

ASKING FOR: $100k and a 30% stake

BEST PART OF THE PITCH: Bea created a place that provides online therapy to women. Clients are connected to licensed female therapists via video chats or digital diaries for a fraction of the price paid for seeing a real psychotherapist. Bea has set up a subscription service with various price structures. She did about $7,500 sales in her first year. She's on course to do $21,000 in sales this year. 

DO THE SHARKS BITE? Robert is concerned because the drop-off rate after a person signs up for the sessions seems to be huge. The numbers just don't add up. He's out. Mark agrees that Bea needs to learn the language of business before she can move forward. He's out. Barbara likes the noble purpose of the service. She advises her to find a smart finance person to help with her business, but she's out. Daymond likes Bea's passion, but he can't invest because of the numbers. He's out. Kevin says that Bea did a service to entrepreneurs who come into the tank without knowing the numbers for their business. He's out, too.

LEARN MORE: Visit http://www.PrettyPaddedRoom.com
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ENTREPRENEURS: The Inventioneers

PITCH: Smartwheel

ASKING FOR: $100k for an 15% stake

BEST PART OF THE PITCH: The Inventioneers is a group of clever kids ages 12-18. They've created a way to put an end to distracted driving. The Smartwheel is a device that lights up or makes a tone to alert the driver that he is engaged in one of three unsafe driving positions. They have a prototype and plan on selling their product for $200. They did a pilot study at MIT saying that their product would be effective at changing a driver's unsafe behavior. Even President Obama has said that he'd like a Smartwheel for his daughters when they are old enough to drive.

DO THE SHARKS BITE? Daymond likes the product, but he can't add any value to this area. He's out. Barbara thinks the kids have gone too far with the fact that their product produces a report indicating the times unsafe driving occurs. She thinks teens will rebel against that. She's out. Kevin doesn't believe this product actually stops anyone from driving in an unsafe way. He thinks the kids will come up with a good idea one day, but this one isn't it. He's out. Robert thinks the kids should sell this product to someone instead of trying to produce it. He'll give them $100k for 30% contingent on a licensing deal with a car company.

THE RESULT: Mark offers to go 50-50 on Robert's deal but thinks they should take out the contingency. However, he also believes they should talk to the car companies. The kids go along with that. They have a deal for the wheel!

LEARN MORE: Visit http://smartwheelusa.com
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