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: Johnson Bailey
THE COMPANY: Man Candle
SYNOPSIS: A candle with manly fragrances
SEEKING: $50K for a 25% stake
PRODUCT/SERVICE: A candle with awesome manly fragrances like pot roast, football, popcorn, basketball, new car, bacon scented and a fart candle. etc..
WHAT'S THE SKINNY?: They retail $10-$12 dollars, they've got around 400 store carrying the product and they've done $53K in sales last year. He's got about $40K into it and he hand pours each candle himself. He does 6-7 re-orders a year.
STATS: This is a very unique product. Who would ever think a fart candle could make it's way into Shark Tank. Kevin can't see investing in it, Barbara thinks the business is to small, Daymond thinks it lacks cash, credit and customers, Robert doesn't think it will make money, and Mark is also out. 5,4,3,2,1. Over and out. Looks like the sharks don't like fart candles. Not enough dollars dangling on this bait. Johnson walks out with no investment.
CAME IN SEEKING: $50K for a 25% stake
WALKED WITH: No Investment.
GRADE: (Guppy): D
GRADE: (Sharks): Not Applicable
COMMENTARY: I think the candles are very interesting and now he's about to have the whole world buying fart candles. Good luck Johnson.
WHAT DO YOU THINK? COULD HE 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...........