Shark Tank Presents Collar Stays for Working Stiffs, CBS Foods Shrimp Burgers, Wine By the Glass and Extortionists?
An Extremely Contraversial Episode for Me
Although I love the shrimp burger and lobster sliders. The collar stays which is an excellent product for the man who always wants to look his sharpest, and the retail wine by the glass ideas. The Tippi Toes "extortionist" as the sharks called them almost made me want to stop watching the show. Then the fact that some of the sharks were jumping at the chance to invest after they stated, "Our vision is stay at home moms" and were, well lets get to the show and you can judge for yourself.
First in the Tank
First in the tank was Jonathan Boos owner of Wurkin Stiffs and creator of the collar stays. I must say for those men who don't want to run around looking like John Travolta in Saturday Night Fever this is an invention to be considered. It has a little clip for underneath the collar and then a little magnet to hold it in place. If you watch the video it's actually quite clever yet simple to use. He was looking for an $85,000 investment for 10% of the company stating he had numerous other ideas in the works.
Once he started his presentation you could tell he was very passionate (to say the least) about his product and also quite talkative, (not that I'm anyone to say anything). The problem was he was turning the one shark off, Daymond John, who with FUBU (his line of clothing) could do him the most good as far as marketing and knowledge. Then when Jonathan and Daymond started talking after Kevin (the devil in disguise) and Robert had made an offer he kept interrupting him and put up his hand as if to blow him off. That was enough for Daymond who was out. Although Daymond did make a rather snide comment in reference to designers (the ones who make him money) stating he could never get a word in edge wise and you can never get anything done, Barbara jumped in to save the day. Then Robert was going to give him $100,000 for 25% of his company, and Kevin had dropped to $100,000 for 15% but a 14% royalty Daymond would consider nothing else other than Barbara and he gave the $100,000 for 40 % and he took it. Just goes to show you how people have respect for those who start by selling hats in Brooklyn to a clothing line selling over a billion dollars.
Next in the Tank the Tippi Toes Extotionists Themselves
Sarah Noose and Megan Riley are in the tank next owners of Tippi Toes. The children demonstrating the dance with music were adorable and the girls stated they focus on healthy activities and the kids having fun. They stated one in every five children is obese and this would help them get active while having fun.
They started in 2009 and have sold 7 franchises leaving Barbara with a few questions as to how much they charge and what do they get? Sarah explained they charge $30,000 and their vision is the stay at home mom to go into preschools and day cares and charge the parents separately for the dance/exercise classes . They then pay a monthly royalty fee of (are you ready for this) a minimum $1,000 (that's right a month). For this Sarah explains they get the cd, and pictures of the lovely creatures and they go out and help set things up
Mark adds it just goes to show you with drive and a vision what you can do. Kevin of course pops off with he wants them to come to work for him at OLeary Funds, and Daymond calls them extortionists with tutus on. They also, along with the $1000.00 a month will finance the $30,000.00 with interest of course. On top of that there is a ten year commitment!
Daymond tells them they are great extortionist but they don't need him and is out. Kevin doesn't know whether to applaud them or call the police, and Robert thinks they are trying to take to big of a leap wanting to create a dvd and is out. Thank you both for not investing for whatever the reason.
Kevin offers $50,000 for 51% and they have to wear ankle bracelets that will shock them every time they say DVD, and Barbara offers $60,000 for 20%. Mark wants a counter to come back with him on the condition that if he accepts it they must say yes and no further negotiations. They come back with $100,000 for 30% and Mark is in agreement. Barbara is not happy.
I hate to say this, (not really) but those of you that know me know that I tell it like it is and Mark I hope you lose your butt in this deal. I know to your billion dollar industries, 100G's is nothing but it's the point. i used to sell timeshare and people thought it was a rip off but at least they got a deed and a gorgeous place to stay on vacation for a lot less money than $150,000 + interest if you finance the $30,000, that's minimum.
By the way to all of you that are looking for cute dance music geared towards smaller children just google it or go on you tube there is a bunch of them some for free and others for a lot less than $150,000.00 That's right minimum $1000 a month X 12 months $12,000 X 10 years $120,000.00 plus $30,000.00 is $150,000.00 For that amount you could make hundreds of cds.
Check This Out From 30k in Sales to a Projected 5 MILLION This Year I Knew It
Next Up is Shrimp Burgers and Lobster Sliders MMMmmm
Shawn Davis, otherwise known as Chef Big Shake, owner of CBS Foods is up next in the tank with his shrimp burgers that come in 4 different flavors such as spicy teriyaki, etc, and lobster sliders. He was looking for a $200,000 investment in exchange for 25% of the company and he brought samples for everyone, (wish I could have been there),
You just kind of take a liking to this guy and then when he tells you about growing up with an Italian family you just kind of go hmmmm. His sales were around $30,000 selling 22,000 units. He wanted to get his product into every single supermarket, and was going to complete a deal for an $87,000 order in a few weeks.
After trying the samples they all thought they were great, but Mark stated although he would buy the product he knows nothing about the food industry and is out. Barbara states she just doesn't like shrimp at all and is out.
Kevin wanted to know the cost and what it sold for and states there is not enough margin with the refrigeration requirements and fluctuation in the cost of his ingredients and is out. Robert wants to know how he thinks his business is worth $800,000 with only 100G in sales (87G in supermarket orders within 10 days),and loves the product but hates the evaluation and is out.
Last but not least is Daymond stating he loves the burgers, ate both of his and will eat the others when there done, he just can get around the numbers. After a few negotiations Daymond stated he would be buying more into him than the product and was out.
I wonder if I can order them online ( by the way you can) just click on Chef Big Shake. They really looked good and I would love to try a lobster slider Yuuuuum
Daymond I thought you had this one and he hit it out of the ball park. Just check out the video.
Wine By the Glass Retail
Next in the tank is James Martin owner of Copa De Vino a company that produces their own wine and where James has invented/patented a way to package wine by the glass for retail sales. He is very passionate and wants to be the first entrepreneur to come back as a shark. He is seeking a $600,000 investment for 20% of his company. He loves wine and thinks it is the perfect way to celebrate special occasions. He brought samples which they all tried and then wanted to know what they are buying the packaging or a winery.
James told them there are three different types of revenues licensing for packaging, the ability to bottle for an industry, and launch there own brand. The largest thus far is selling his wine in which the business that was started 5 months ago has done $500,000 in sales and has $800,000 in orders.
Kevin set him straight and stated it was not a premium wine, it is an industrial wine. Then Barbara called him a wine snob. Kevin wants to know if there is a way to take the patent out of Copa de Vino He really likes the patent. James states that people need a company that will service this niche, but the two can be separated. Mark wants him to give him an amount for just that and then he can run with the wine company and make his own money. James thinks they are trying to devalue the company when in reality they just don't want to be in the wine sales business.
Daymond states he is to early in the business for him and is out. Robert states he is not going to try to get him to separate the two because it's obviously something James is not interested in and is out. Barbara is also out.
Kevin keeps telling him where the money is stating every time someone rips a top off he makes money, and that's where the money is, but James just doesn't seem interested Kevin offers $600,000 for 51% of the IP licensing (packaging) and he still has all of the brand name and 49% of what Kevin makes in licensing with other companies. Now James is sweating profusely but states the opportunity is greater than that. Mark tells him that's a lot better offer than he was going to offer and is out. James keeps sweating and trying to explain, well sell them and they keep telling him no. Finally Kevin asks how much for 51% of the IP James replies with 3 million and Kevin is like there is no way. He is going to go buy a thousand dollar bottle of wine tonight and think about the money lost.
So James leaves with zippo. Well that's it in the tank, have a great week and catch you next time.
Thanks for you time and hope you enjoyed it. Have an incredible day.