Wednesday, May 4, 2011

Watch shark Tank - Week 3 /Episode 4 - Broccoli Wad

The following are actually REAL negotiations between entrepreneurs and investors (Guppies & Sharks). The sharks invest their own money at their discretion. The guppies get devoured into a belly of finance, or spit back into the ocean of hard knocks to fend for themselves. The entrepreneurs must convince the sharks to invest the FULL AMOUNT, or walk away with NOTHING.








THE GUPPY: Johnny Gennaro and Vinny Pastore
THE COMPANY: The Broccoli Wad
WEBSITE: broccoliwad.com
SYNOPSIS: A rubber band money clip
SEEKING: $50K for a 20% stake




PRODUCT/SERVICE: The broccoli wad is a rubber band money clip made out of a broccoli band to hold a bankroll.

WHAT'S THE SKINNY?: The product comes with 4 bands and 4 metal slides. It's a $10-$14 item, they've already created two 2 minutes spots shot with Vinny Pastore and other Soprano cast members. They already have personal appearance arrangements with the casino's in Atlantic City and Las Vegas where the casino's will be giving them out to casino players. They want the investment to put together the TV spots and get the sharks expertise in sales and marketing the product.


STATS: I've got a brilliant idea. Let's bust up in the tank, pull out the heat and make the sharks an offer they can't refuse. Who's with me? LOL. Well, ..... Barbara drops out first. She doesn't get it at all and even says it's the worst thing she ever saw on the show. Kevin thinks it's too expensive to pay Vinny Pastore to represent the product long term and drops out.  Jeff seems to like the product a lot but say's it just isn't for him and also drops out. Daymond follows suit and drops out next. Then it get's interesting. Don Barbara Corleone (yes, the same Barbara who just called it the worst idea she ever saw on Shark Tank) decides to jump back in with an offer! (And this is the genius of how fast her marketing mind works). She decides to offer $50K for a 40% stake and split the 40% with Vinny, so she basically funded getting Vinny into the deal with his face. so his partner Johhny will still own 60% of the company and get the $50K while Vinny will help market it for his 20% stake which actually kills two birds with 1 stone by taking care of paying Vinny to stay with the product longterm. What a genius! The Blacktip Shark spit the guppy out, does a little dance and then decides to snap back down on the guppy and dig in when the scent of money started to bleed through the waters of the tank leaving a trail back to the marketability of Vinny Pastore. Vinny and Johnny agree to do the deal and walk out with the investment they sought, and didn't even have to bust any balls. Finnito. Done deal. Forget about it. Capish!?

CAME IN SEEKING: $50K for a 20% stake
WALKED WITH: $50K for a 40% stake split with a guppy!!!
GRADE: (Guppy): A+
GRADE: (Sharks): A
COMMENTARY: Whoa! Barbara was the first shark to jump out but no sooner than you could blink she jumps right back in!? What changed? Ok boys and girls, ..... what's the magic word for today? can you say ..... Marketability? I knew you could. LOL. This was the strangest deal I've seen in the tank so far. The turbulent waters of the tank can just about take on ANY shift in the waves my friend. ANYTHING can happen. I think everyone came out on top with this one....... 









"Just when I thought I was out... they pull me back in." (Michael Corleone - Godfather Part III)




CHECK OUT THE SHARK FINS SECTION FOR ARTICLES AND INTERVIEWS. ALSO CHECK OUT THE SHARK TEETH SECTION FOR HELPFUL TOOLS OF THE TRADE.

WHAT DO YOU THINK? COULD THEY HAVE GOTTEN THE SAME CAPITAL (OR HIGHER) WITH A LOWER STAKE? WHERE THE SHARKS FAIR IN THEIR NEGOTIATIONS? DID BOTH PARTIES COME OUT ON TOP? POST YOUR COMMENTS AND TEST YOUR NOODLE AT THINKING LIKE A BILLIONAIRE...........

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