Liz Lovely Cookies on Shark Tank
Gourmet Cookies Season 4 Episode 403 - 9-29-2012 Update
|Dan and Liz Holtz on the Shark Tank Show|
Dan and Liz Holtz are the owners of the Liz Lovely Cookies seen on the Shark Tank earlier in season 4 when they were seeking a $200,000.00 investment for a 10% stake in the gourmet cookie business. All the cookies are gluten free and vegan made only with the freshest ingredients. They use none of the traditional ingredients such as eggs, milk, butter and wheat flour.
After an entertaining presentation Kevin O'Leary asks "what are they made out of, sand"? Dan rightly so seems to take offense to his comment and replies "they are made out of a blend of rice flour and some starches but don't let that fool you". All the Sharks seem to really like this rather interesting way of making cookies
especially when they reveal having already
sold over a million dollars worth of Liz Lovely Cookies.
That is with the exception of good Ole Mr. Wonderful who says "I wouldn't eat these unless I had too". If there is one thing you can always count of O'Leary is he will say xactly what's on his mind and doesn't seem to care who it offends in the process. This was no exception.
Out of the million dollars in sales last year they had a profit margin of only 10% because of the high overhead getting to this level. The profit margin could be raised significantly with an investment from the Shark Tank. It cost $1 to make and package two Liz Lovely Cookies and retails for $3.99-$4.99. Apparently $2 is the average price for a gluten free cookie so this product is right in line with the competitions.
Dan and Liz were three days away from opening up the first retail location when Hurricane Irene completely wiped out the entire operation and they had to rebuild from the ground up. With all the obstacles the Holtz's have gone through to get to this point, they are more determined than ever to succeed.
They have the orders coming pouring in and all the Sharks think Dan is a terrific salesman for this product but think the 2 million dollar valuation is still way too high at this point. The Sharks all proceed to go out with the exception of Mark Cuban.
Mark ends up doing something he has never done on the Shark Tank and reverses his usual strategy. He gives them one chance to come back with a better offer if they want his money and him as a business partner. After returning to the Shark Tank, Dan and Liz offers Mark double the equity or 20% of the cookie business. This was not the number Cuban was looking for and proceeds to go out. He did happen to mention after the Holtz's left the Tank that he would of done the deal for 33% of the business. Unfortunately had Mark done what he normally does and gives the terms he might be interested in, they very well may of accepted his one third ownership.
Liz Lovely Cookies after the Shark Tank Update
Dan and Liz are still determined to get the Liz Lovely Cookies in all the Health Food Store across the country. They ended up trying the Kickstarter route a few months later to get the much needed capital to expand their operation. Unfortunately this also did not meet their rather ambitious goal of $50,000.00 within a month's time.
After studying several successful Kickstarter campaigns it's possible they could of changed a few things and possibly got the Liz Lovely Cookies funded. For starters the minimum to invest in the campaign and actually get their main product "cookies" would have cost you $50. The cheapest you could help this crowdfunding campaign was a $10 donation for a shout out. To tell you the truth the more I look at the pledges, the more it confuses me. Are they selling cookies or are they selling T-shirts and aprons sporting their Brand? If they put a more realistic goal with more (smaller) pledges for the cookies, they very easily could run a "successful campaign".
This set back again has not stopped Dan and Liz from making the Liz Lovely Cookies a household name. Just a few weeks ago they announced they made a deal with Safeway to carry their brand in all 1400 stores across the country which will drastically increase the bottom line.
Yes I do believe Major Success is just around the corner for the Holtz Family and proving once again that nothing can stop you once you are determined to succeed!
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