Featured Shark Tank Post
eCreamery - Shark Tank Season 4, Episode 2
Aired on 9/21/2012 on ABC
eCreamery.com - Abby Jordan and Becky App wants $250k for a 33% interest in their one of a kind Personalized Ice Cream Gift Business. Customers can visit the e Creamery website and start by picking out their favorite flavors of ice cream in over 50 flavors. Mix and match and design your own unique new ice cream flavor's. You then need to come up with a name for your creation which gets printed on the label. Jordan and App were very smart to create all the Sharks on the panel, their own unique and very personalized Ice Cream flavors.
Roberts was called "Robert's Investment Mix". Barbara's was "Delicious Dividends" Keven O'Leary's was "Mr. Wonderful Shark Bait". Daymond John's was "Fashionable Fashions Factory" and Mark Cubans was "The Cubanaro". If you want to get close to a Shark, it's always best to feed them something they Love. The entire Shark Tank Cast ate it up.
eCreamery Negotiating with The Sharks
O'Leary asks about sales. eCreamery has sold $2 million in sales since 2007. They are on track to do $750k for 2012 alone (before the Shark Tank Effect). Net profit was estimated at only $60k. The majority of the money has been going back into the business at this point.
It is revieled that there is already a venture capitalist investor in eCreamery.com that already controls 70% of the company for a $600k investment. The Sharks all are stunned. How can Jordan and App be offering the Sharks a 33% stake if another investor already controls 70% of the business? It's because the Venture Capitalist is Very Smart and sees the value in having the Sharks involved with this deal. He is willing to give all the 33% from his shares (just under half his equity) in eCreamery still leaving Jordan and App with their original stake in the company for making this deal.
Keven O'Leary is the first to bite and offers them $125k for 25%, half the money they were looking for and hoping for another Shark to come in the deal with him. Long story short, all the other Sharks are out. Kevin eventually withdrawals his offer and eCreamery ends up with No Deal.
WOW- What started out as a sweet looking deal didn't end like I expected.
Will eCreamery.com Become a Success Despite Not Getting A Deal With The Sharks?This is such a unique business idea that I believe they will. It would be nice to get the prices down just a bit, which would in my opinion, attract more customers. One idea I had that would take care of some of the Sharks concerns, as we'll as the Next Day Delivery costs, would be to integrate eCreamery with a National Flower Delivery Shop. Instead of competing with them, join them! Sending 4 pints of ice cream to Denver is a lot more expensive (per pint) then sending 200 pint's. This way you get the Flowers and a Personalised "And Very Tasty" Gift Delivered at the same time . Just a thought.
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