Coat Chex

Coat Chex on the Shark Tank

Coat Check In - Season 4 - Episode 401

Coat Check-In seen on Shark Tank
Coat Chex - Derick Pacque is seeking $200k for a 10% equity stake in the ticket less Coat Chex check-in. The energy of Derick was over the top, very motivated and seemed like a shoe in to get a deal from a Shark on the panel. First question from Daymond after an entertaining presentation "Do you have any sales?" Which was a surprisingly No?.

 Pacque is looking more for a franchise deal. Mark Cuban lays into him telling how hororable this marketing idea is.
O'Leary asks him why he has never even tried out the concept with REAL People. Derick quickly answers without thinking about it "Because it's been to warm outside". Daymond John cracks up laughing already knowing this is a very valuable step that has been neglected and Derick himself just admitted it might only be a seasonal business. All the Sharks get a good laugh and Derick's presentation starts heading south kind of quick. He says he has a patent on the ticketless technology which sparks interest but the Sharks start dropping out. All of them except for Mark Cuban. You could see Cubans mind going a million miles an hour trying to figure out how many Coat Chex kiosks it will take to cover the Dallas Mavericks Stadium. (Probably all the stadiums in the NBA knowing Cuban) Robert likes the idea (and the patents) but just can't get over the $2 million Pacque put on this unproven business. Derick comes back at a new valuation of $1.5 million. That's not exactly what Robert wanted to hear. Robert's out. Just too much money for a business with zero sales.

Mark Cuban is the only Shark left. He first gives him a free class in business and marketing that Dericks Professor must not of covered (a proven sales record BEFORE you go looking for financing on such a high valuation) and then offers Derick the $200k for 33% of the Coat Chex business. Daymond asks Mark if he is crazy making an offer like that. Derick practically accepts the deal then makes a fatal business decision and asks to go call his teacher first. The teacher thinks its too much equity to give away at such an early stage (remember - NO SALES) advises his student NOT to give a Proven Self-Made Billionaire a third share of the business. Mean while in the Sharks Den Mark is trying his hardest to convince the other Sharks that it's a good offer. Derick returns from his phone call and basically insults Mark that his contribution would not be worth that much. Now the other Sharks are on Dericks side trying to convince him what he is about to throw away if he doesn't accept the deal. Pacque smiles very confident and counters with $200k but for only 20%.

 The whole Shark Tank erupts on what they just heard. Cuban is stunned, speechless. Then points his finger at him and said NO and probably thinking Derick needs to go to the school of hard knocks. Dericks teacher may be a good teacher in the classroom but clearly may a lot to learn in the Real Business World. It's hard not to feel sorry for Derick and all the hard work he put into this project. A project that had the potential to have him work along side a billionaire, if he could of just thought for himself at that critical moment. Not to mention a $200,000.00 check that Derick let slip away.

Will Coat Chex and Derick Pacque Become A Success?

Season 4, episode 401,
Derick Pacque staying relaxed while
getting drilled by the Sharks
My moneys on, Yes he will. Derick learned a very valuable lesson in business negotiations that night. One I'm sure he will never forget. He has the ambition and motivation to come back from this and do very we'll. That "what if " will keep him motivated for a very long time.

MY PREDICTION: Derick will be on the Shark Tank again in the future. This time with a proven sales record that will justify Coat Chex valuation.

Keep in touch with Derick at:
Coat Chex on Facebook
Coat Chex Twitter


  1. Anonymous11:08 PM

    I thought this is a great idea.HOWEVER,there is a reason his teacher is a teacher of business,and not a millionare business man, All BRAINS NO BALLS. So what if you give up an extra 23% of an unproven business, what is 23% of a billion dollars? Not much of a big deal when your sailing around the world with a hot chick, burning money for fun. Have fun checking coats for the rest of your life DUMBASS!

  2. Anonymous9:58 AM

    33% is too much if what he says about having this system patented is true... like he said, this can be used in MANY applications, not just for checking coats... dry cleaning is a perfect example and could potentially save a small dry cleaning business tons of money from mix up clothing items, and all for 1500 bucks. He very much made right decision, despite Mark's connections. The only thing Mark would be doing is taking 33% of his profits while speeding up his growth. If he's patient and does it himself, this kid will get 100% of the profits instead. The teacher made the right call.

  3. Anonymous11:11 AM

    To commenter #1, the teacher he was calling has started quite a few businesses in his day and is worth a lot more than you are. I will say that Derick should have said he was going to call his business partner, and not his teacher.

    1. Anonymous7:57 AM

      I disagree with you and I can promise you that I am worth a lot more than you are. so does that make your comment invalid then?

  4. Anonymous11:27 AM

    technically getting connections is more important than equity. if you have someone like cuban at your side, it will help you propel more. the offer was fair, considering others sharks usually offer ridiculous deals like 75% or 51%.

    1. Anonymous11:05 PM

      I agree, the other sharks would have taken him to the town lol....Again greed takes over!!!

  5. Anonymous10:35 AM

    Bill Gates would often say, Technology is complicated, buisness is not. Anyone can learn buisness. If you have the right product and execution, success will follow. If you don't have the product or execution, you will be relegated to mediocrity for ever. What can Cuban offer him other than some introductions? I'm skeptical about how real these partnerships really are. I mean Cuban is a multi billionaire. How much sleep would he lose over a 200,000 investment? End of the day, its still you by yourself. But its a huge confidence boost for this kid to see Cuban jump in but he really doesn't need it.

  6. Anonymous11:01 PM

    you guys are not factoring time and the amount of sweat it takes to make a business profitable...I have seen individuals give away 65% equity in shark tank and when its all said and done they end up millionaires. Greed was a huge factor in this deal which by the way went sour. Mark Cuban gave him a very resonable offer at 33% if you factor the connections and or doors which the Cuban name will open; just imagine Cuban being his Ezpass all over the U.S....Fellas sometimes you need to stop being so damn greedy and take the safe bet straight to the bank.

    This coat chex idea is not one that will be be around 20yrs from now it is the type of business that you sell down the road for a truck load of money...

  7. Anonymous2:15 AM

    Looks like the author might need to do an update as the company is doing well now


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