- A husband and wife from Raleigh, North Carolina, show how their franchised art studios work; two men from Melrose, Massachusetts, have a futuristic version of a notebook that sends writing wirelessly; two entrepreneurs from Mechanicsburg, Pennsylvania, create hair-care products infused with pheromones; and a divorced mom from The Poconos, Pennsylvania, has an idea for how brides can bag up their wedding gowns and use the bathroom on their own.
- In the Shark Tank, several entrepreneurs pitched their business ideas. Sharks present in this episode are Mark, Barbara, Kevin, Lori, Robert
The first pitch was from "Wine & Design," a company that offers painting classes with wine served, seeking $500,000 for a 10% stake. They mentioned having nude male models for Bachelorette parties and a $35 per person class fee. Although they had 74 franchise locations and $250,000 in sales in the first 9 months, some of the sharks were skeptical. The company takes 6% royalty over gross revenue from franchisees. This year they will make $600,000 cash from royalties, plus $25,000 franchise fees. Next year they are projecting $350-400,000 in profits. Mark was out due to concerns about the return on investment, and Kevin noted that it would take 17 years to recoup the investment. Barbara opted out due to valuation concerns, and Lori cited market saturation and competition. Kevin offered a $350,000 loan with 12% interest and $150,000 for 10% equity, while Robert proposed $500,000 for 33.3%. Kevin also suggested selling his wines at their events, and the entrepreneurs accepted his offer.
Next up was "Rocketbook," a notebook that could scan content to cloud services and be erased via microwaving. The founders, Jake Epstein and Joe Lemay, were seeking $400,000 for 10% equity. They had sold 75,000 books, generated $2.2 million in sales, and had a pending patent. The product retails for $27 per unit. However, Barbara found it gimmicky and exited, while Robert doubted the market size. Kevin pointed out that it was a one-time purchase, and Lori found it too complex. Mark couldn't take the product seriously, and they left without a deal.
Then, "Laid Brand" presented their hair-care products infused with pheromones, seeking $30,000 for 30% equity. With no sales yet, Robert opted out, believing that adding pheromones wasn't proprietary. The product retails for $25 per unit, and costs $2.5 per unit to manufacture. Kevin didn't see shelf space in cosmetics sections and exited, while Lori cited competition, lack of scent, and product efficacy as concerns. Mark is out as the guys have underestimated the capital needs for their business. Barbara is out as she doesn't believe in the product.
The last pitch was from "Bridal Buddy," a slip designed for wearing under wedding gowns, allowing the wearer to use the restroom independently. Heather Stenlake sought $75,000 for 10% equity, having $195,000 in sales with a $30 selling price and $14 cost. Mark exited as he wasn't in the wedding business, and Robert thought selling one at a time was challenging. Lori and Kevin collaborated, offering $75,000 for a 50% stake, with Lori handling manufacturing and Kevin providing his business platform "Mr Wonderful". They also want Heather to bring her friend into the deal as a 25% partner, as her friend stood up for her in the tank and is a great sales person. Barbara offers $75,000 for 33%. Kevin & Lori offer $75,000 for 40% and remove the contingency of having her friend in as part of the deal. Heather counters Kevin and Lori for 30%. Barbara matches the offer, but Heather goes with Kevin and Lori.
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