SHARK TANK - EPISODE 207
ENTREPRENEURS: Jason Lucash & Michael Szymczak
PITCH: Orig Audio
ASKING FOR: $150k for a 15% stake
BEST PART OF THE PITCH: Jason and Mike have a product called The Rocket. It uses vibration technology to turn anything into a speaker. Whatever their product sticks to utilizes sound movement to amplify what's being played. An upside-down fishing boat was once turned into a giant speaker with the product. Their first product was "Fold and Play" recycled speakers, the origami of audio. They have $750,000 in sales after one year in business. Their product is in stores and is also sold online. They have a license agreement with a manufacturer in China. They've also sold their product on QVC.
DO THE SHARKS BITE? Daymond wonders what's going to keep the manufacturing company from throwing these guys under a bus should the product take off. Kevin O. thinks the value they placed on their product is too high in a very competitive industry. He's out. Mark wants a better percentage before he'll talk to them. He also doesn't want the guys to talk to anyone else before that happens. This ticks off the other Sharks as time ticks away for Jason and Michael.
THE RESULT: Robert doesn't like bullies, which is a label he bestows upon Mark. Daymond offers $300k for 100% of the company. Barbara offers $150k for 25% while Robert says he'll do the original deal. That means Mark is out. The guys take a timeout to chat about the offers. While they are out of the tank, Robert makes it clear that he wasn't impressed with Mark's tactics. In the end, Jason and Mike are impressed with Robert and take his deal.
ENTREPRENEUR: Johnson Bailey
PITCH: Man Candle
ASKING FOR: $50k for a 25% stake
BEST PART OF THE PITCH: A few years ago, Johnson was looking for a way to freshen up his stinky place. He wanted the place to smell good, yet manly. He created the Man Candle. His line of candles come in scents of pot roast, golf course, football, popcorn and draft beer—just to name a few. His best-selling candle has a scent that you may experience after being around someone who has had a lot of baked beans. 'Nuff said. Johnson had $53,000 in sales last year, which doesn't impress most of the Sharks. Mark says don't let the others drag him down.
DO THE SHARKS BITE? Kevin O. doesn't feel he can invest in a gimmicky product such as this one. He's out. Barbara doesn't think the business is big enough. Daymond says Johnson doesn't have cash, credit or enough customers. Robert doesn't believe this product will make any money. They are all out. Mark likes Johnson's attack dog mentality, but he can't visualize this as a full company. He's out, too. If only Johnson had a candle that smelled like money, Kevin O. would have surely jumped in.
ENTREPRENEUR: Julie Goldman
PITCH: Original Runner Company
ASKING FOR: $250k for a 15% stake
BEST PART OF THE PITCH: Julie created the world's first non-stick fabric aisle runner for wedding ceremonies and special events. The paper and plastic runners typically available in stores easily tear when stepped upon in stiletto heels. Julie has lots of Internet sales, but now wants to market The Walk-Safe Aisle Runner that is mass-produced and available in retail stores. There's also a home monogram kit she'd like to push. Julie is a savvy businesswoman who has an answer for every question the Sharks throw at her.
DO THE SHARKS BITE? Kevin O. and Mark think Julie is already the best in a niche market. So why do a mass-market product when people are already paying top dollar for her custom runners? A bunch of the Sharks argue about Julie's business strategy until Barbara puts the kibosh on all the quarreling. She then lets Julie know she's out. Mark doesn't believe any retailer is going to sell this product better than Julie already does. Robert doesn't see this turning into a large scale business. They're out, as is Daymond. That leaves Kevin O.
THE RESULT: Kevin O. offers Julie $250k for 51% of her business. He wants control to keep her on the straight and narrow while they both get rich. That offer is rejected. This wedding deal is off.
ENTREPRENEUR: Jeff Stroope
PITCH: HyConn LLC.
ASKING FOR: $500k for a 40% stake
BEST PART OF THE PITCH: Jeff is a firefighter who was looking for a way to save time in getting water to a fire scene. HyConn is the world's fastest way to connect and disconnect from a fire hydrant. At a fire scene, every second counts. There are over 33,000 fire companies across the United States. Jeff believes they could make millions with this product. More importantly, they could save lives.
DO THE SHARKS BITE? Robert wonders if the fire departments will be willing to work the cost of this product into their budgets. They sell for either $215 or $385 depending on the size. Daymond is out because he's concerned that distributors want Jeff to take on the financial responsibility. Barbara is out because she doesn't think municipalities will cough up the money for the short time-saving device. Then Jeff pulls out a device that uses the same patented design that can be used for garden hoses. Suddenly, the Sharks perk up.
THE RESULT: Mark offers Jeff $1.25 million for his company plus a three-year employment deal to run the show at a $100,000 annual salary. Kevin O. wants the garden hose piece only for $500k and he'll give Jeff a 3% royalty. Jeff would want 7% royalty from Mark. Kevin O. goes up to 5%. This back-and-forth has Robert bailing out. And the end of the negotiation, Jeff makes a deal with Mark. They're both fired up to make some bucks.