Potato Parcel on Shark Tank
Potato Postcards - Episode 805 - October 28, 2016
|Anonymously Send A|
Potato Parcel in the Mail
The entrepreneur behind the Potato Parcel is Alex Craig, who''ll be appearing on the next Shark Tank in Episode 805 with Riad Gekhit, October 28, 2016. The idea is simple, but with margins over 1000% profit, the Sharks will certainly be impressed. In lots of ways, the Potato Parcel business model reminds me of "I Want To Draw A Cat For You" seen in Season 3. It was such a simple (and profitable) concept Mark Cuban invested in the business. But a potato already starting to rot when your recipient receives it in the mail? Who would possibly spend hard earned money on that? You might be very surprised.
Alex launched his potato-in-the-mail idea online in May 2015, starting with a post on Reddit that soon went viral. On the second day in business, Craig sold over $2,000.00 of his potato's for only $9.95 each (plus shipping). The company is now averaging (Before their Shark Tank appearance) between $10 to $20,000.00 per month in online orders.
What makes these potato's the most valuable on the planet? First off, you can send them anonymously to anyone with a personal message up to 130 characters long. Alex claims it took hours of R n D (Research and Development) finding the perfect instrument for writing notes on a potato. He ultimately chose the G2 Pens available on Amazon for a buck apiece.
A single G2 pen (the most expensive tool to create this soon-to-be Shark Tank product) can easily produce over 100 Potato Parcels or $1000.00 in revenue. Those are fantastic margins in anyone's book, but what about the labor costs usually being the biggest expense? The Potato Parcel has also mastered this technique averaging only 30-seconds per order to complete. What's not to like about this business model?
Interestingly, it looks like Alex Craig auditioned for the Shark Tank four total times before getting on this Episode 805 in Season 8. Considering Potato Parcels been in business since May 2015, He's apparently taken a few other business ideas to the auditions before this appearance. If that is indeed the case, "Congratulations Alex for Never Giving Up On Your Dream." But selling rotting potato's in the mail? I guess you never know until you try.
Watch Potato Parcel on the brand new Shark Tank Episode 806 next Friday night, October 28, 2016, and see if the Sharks invest in this rather unusual, but extremely profitable online business. If I had to guess, I'd say Kevin O'Leary will add up the costs to start a competing company when valuing this business. In this case, it would cost less than $20 bucks and lots of viral traction. Good Luck Kevin!
Potato Parcel Webite
FaceBook (Over 19,000 Like's before Shark Tank appearance)