Shark Tank Season 5 - Episode 513
Recap from Shark Tank - 12/6/2013
The first up in the Shark Tank Season 5 Episode 513 was Alexander Mendeluk and Marley Marotta representing the Stylish Spirithoods. They waste little time asking for $450,000.00 for a 15% stake in these creative Animal Hats. A few Spirit Hood Models dress up the Sharks to help bring out their inner animal spirits and giving Robert Herjevic what appears to be a bunny with big floppy ears.
But they seemed to forget about Mark Cuban which might not of been the best way to make a good first impression. They finally reveal a Spirithood for Mark they named the Fanimal for Professional Sports Teams Cuban quickly say's "I'm not feeling it" as he seems to take it off about as fast as it went on.
A few of the other Sharks on stage also don't seem to be feeling it, until Kevin O'Leary asks about the sales of the Spirit Hood Brand. To date, Spirit Hoods has done $9.4 million in sales which gets All the Sharks excited that maybe there's something to these Faux Hats after all. Never the less, all the Sharks proceed to go out until only The Shark Daymond John was left. Daymond knowing a thing or two about building a Successful Brand starting with Hats sees this more as a licensing opportunity and offers the $450k but wants 50% of the SpiritHood Brand. It would have been a deal made in Angel Investing Heaven had Mendeluk and Marotta agreed to the deal, but wisely decided not to take Daymond's deal in the end.
Oculus Rift Virtual Gaming Mask. After a very impressive demonstration what it's like to walk, run, shoot and jump within a virtual reality shooters game, all the Sharks seemed very interested.
Robert Herjevic eagerly gets up on the Shark Tank Stage and tries out this new invention, steps onto the Virtuix Omni and just about rolled off as if He really was on a treadmill. Once they had Robert all suited up and looking like a professional virtual reality soldier, He begins to really get into the game and repeatedly says "Very Cool" before almost falling on his face had the Omni safety features not been in place. Daymond John brings up a good point when he wonders if gamers are really going to want to put that much effort into playing in the reality world versus sitting on the couch with their paddles. Barbara Corcoran instantly sees the benefits of also turning this technology into a weight loss product.
In the end, all the Sharks were not willing to put up the minimum $2 million Jan was initially seeking which is not negotiable inside the Shark Tank. The valuation of the Business is negotiable, but the dollar amount must be equal to or greater than the initial investment requested.
Kelly Dineen and Joycelyn Fine came into the Shark Tank with their creative way to customize Children's Safety Helmets known as the Fohawx. Each Fohawx product comes with its own self-adhesive Velcro strip which makes changing and trading them a breeze. The two Mompreneur's were seeking a $150k investment for 15% equity stake in their Business. Within the first full year in Business, they've sold over 5000 units generating over $50,000.00 in revenue. The majority of sales came from 80 specialty retail stores across the country and being test marketed in a few select Walmart and Toy-R-Us Stores.
Oh boy I'm not sure what to write here, but there's a few very good businesses lessons to be learned. On the surface getting any product into that many Specialty Retail Stores within the first year, not to mention already in contact with Wal-Mart and Toy-R-Us, would be considered a major success in most people's book. But when Kevin O'Leary broke down the numbers on a per-store average basis, He wasn't impressed as both Dineen and Fine clearly was. It actually had me yelling at the TV trying to tell them to break those store numbers down further and mention the top selling stores where the Fahaux Accessories is selling best.
All the Sharks seemed to keep dwelling on the average store sales and the fact they have already been in business for a full year. That's quite an interesting sentence you might like to read a second time, especially the part about being in business for a full year as if it's an eternity in today's Business World. For two Mom's starting with nothing but an idea, and manage to make it on the Biggest Investment Stage in the World within a years' time, is a Major Accomplishment and something they should always be proud of. No doubt we have not heard the last of these two Very Determined Moms to make the Fahaux brand a household name.
Big Al "Bubba" Baker might have played for the NFL as a job, but it was always BBQing that was His passion. Al came into the Shark Tank with his daughter Brittani Bo Baker, seeking $300,000.00 investment for a 15% equity stake in the Deboned Baby Back Ribs Business. While Bubba gets into His pitch to the Sharks, Brittani quietly starts making Boneless Baby Back Ribs inside a microwave oven. We all know most food cooked in the microwave usually has a rubbery taste to them, right? Wrong, after 20 years perfecting Al's way to Bar-B-Que, these Baby Back Ribs taste just like they do at His Restaurant. All the Sharks pay Al "Bubba" Baker their highest compliments on how good they taste coming right out of the microwave.
When Al brings out his patents on his process of making His Famous Ribs, again all the Sharks perk right up as they realize the possibilities what these patents mean. How hard is it to cook Ribs with the bones, and then de-bone the Baby Back Ribs before eating? According to Al, you can check out his patent all you want, but good luck on figuring it out. Kevin O'Leary still amazed at the patents he's now holding onto tightly, says "In the entire History of the Shark Tank Show I have never seen a patent on a food product".
Sale's at that time were $154,000.00 over the past year and already in 48 stores. Al admits at one point He actually gave up and quit on His dream to make the De-Boned Baby Back Ribs as successful as He knew they could be. If it hadn't been for his Daughter who used a little reverse sociology herself to turn this dream into reality, they never would've been on the Shark tank Show.
Kevin O'Leary sees the value in the patent and wants to license the technology to a large meat processor, but wants 49% of the Business for his $300k investment. Daymond John seeing the long term potential in microwavable Baby back Ribs, says he'll do the same licensing deal, but for only 30% stake in the company. Al "Bubba" Baker easily decides to take Daymond up on his offer and a Great Deal was completed.