Watch Shark Tank - Week 2/Episode 3 - Pure Ayre

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 SHARKS: Barbara Corcoran, Daymond John, Kevin O'Leary, Kevin Harrington, Robert Herjavec

THE GUPPY: James Mitchell

THE COMPANY: Pure Ayre

WEBSITE: pureayre.com

SYNOPSIS: Pure Ayre is the only safe and natural odor eliminator on the market today.

SEEKING: $150K for a 10% stake

PRODUCT/SERVICE: Pure Ayre is the only 100% food grade edible odor eliminator on the market. 

WHAT'S THE SKINNY?: The product is not patented. He's sold almost $315K worth last year. the year before he sold $1/2 Million and $170K of it was to Walgreen's but they lost distribution at Walgreen's when a large competitor had them terminated. He hired a CEO to bring in a consulting firm to project how much money it would cost to support national retail for the product and the answer was $4 Million. 

STATS: Hurry, hurry, step right up, welcome to Ringling Brothers Barnum & Bailey Circus. This guppy is very interesting, his interaction with the sharks is somewhat comical making the show very entertaining to watch. James has an investor that he co-owns the company 57% with. Family and friends own the rest. He raised $600K for the business and it's all gone. He got kicked out of a national retailer, and there are other competitors. James says, the guy he hired was not even a professional CEO before he hired him. Robert wants to know if James called a large company to try to license it and James said that was his job to do that, but it never got done. Daymond wants to know also if anybody affiliated with his company has talked to a major producer of this type of product in the last two years. James finally admits that he talked to a division about a week ago. Barbara wants to clear the field early and drop out asap. Kevin Harrington drops out due to the fact that James ran through $600K with nothing to show, and he also thinks James doesn't know what he's doing. Daymond offers to bring his knowledge to the market for $150K for a 50% stake. Kevin O'Leary decides to make the bold and daring offer of buying the whole company outright for $150K with 100% equity + a 7% Royalty to James for the rest of his life, but promises to FIRE him as soon as he does, telling him it's the best news James has heard today, and that his deal will make James very rich. James thinks he has star power, but he can't seem to answer anyone's questions directly. Kevin doesn't care, he wants to fire James anyway. Robert also wants to know if James is willing to walk away from the company. James can't seem to answer Roberts question and Robert drops out. James decides to step out in the hall and call his wife. While he does that, Kevin O'Leary decides to pull Daymond to the side and split the deal with him and fire James the second he writes the check. The new offer is that Kevin and Daymond offer to buy James company for $150K take his formula, license it, pay James 7% for the rest of his life and fire him the second they write the check, LOL (sorry James, I didn't mean to laugh). James looks shocked and undecided and turns the offer down. Then Robert hops back in the water and offers to bring another $75K to the table, splitting the deal with the other 2 sharks, bringing the offer up to $225K for 100% + 7% Royalty. James turns it down also. The guppy swims back into the ferocious waters of commerce to fend for himself with no investment.

CAME IN SEEKING: $150K for a 10% stake.

WALKED WITH: Not a chance in hell ..... well, maybe

GRADE: (Guppy): F

GRADE: (Sharks): A

COMMENTARY: I don't even know what to say after this one. I'm with Kevin O'leary, ............ "UNBELIEVABLE." good luck James. Maybe the competitor that shut you down at Walgreen's will buy you out to eliminate you now that you got a lot of free pub. 

WATCH SHARK TANK WEEK 2/EPISODE 3 - PURE AYRE

"Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren Buffet





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 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...........

Watch Shark Tank - Week 2 /Episode 3 - Flipoutz

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 SHARKS: Barbara Corcoran, Daymond John, Kevin O'Leary, Kevin Harringtin, Robert Herjavec

THE GUPPIES: The Johnson Family

THE COMPANY: Flipoutz

WEBSITE: flipoutz.com

SYNOPSIS: A silicon bracelet that holds 5 personalized coins that kids wear, trade, and track online at the flipoutz website.

SEEKING: $100K for a 20% stake

PRODUCT/SERVICE: Flipoutz is a bracelet with personalized collectors coins and a supplemental web profile that allows kids to track their coin online as it gets traded around the world. Kids can create a profile page, a blog, chat with friends, give status updates, and most importantly name, describe and track their coins online. 

WHAT'S THE SKINNY?: They've sold $20K worth so far in the past six months online, also partnered with souvenir distributing company to go in theme parks, zoo's etc. It cost 69 cents to make the bracelet and 1 coin, it retails for $4.99. The coin has a code on the back, on the website you can enter that code and the coin pops up, then you can personalize the coin, write something about it, trade the coin, and create an online history with the coin and repeat the process. It has caught on with college kids already. The parents have spent $250K on website development and patent attorneys. They have a patent pending on the tracking and trading process, and they can track and trade anything related to kids collectibles.  

STATS: A school of fish, a happy family of guppies swims into the tank and dangles their bated hooks in front of the sharks. Barbara is out due to the fact that she thinks the product is going to take a ton of marketing money and it's success is dependent on the applications patent and to her, this just doesn't seem to be the right application of it. Kevin Harrington doesn't think $100K is enough for the Johnson's and it's just too risky for him. The Johnson's suddenly announce that they are in the process of closing a purchase order for 25 million coins and 2 to 3 million bracelets. The company making the order will agree to pay for 30% of the inventory upfront. Daymond smells money and wants to make an offer of $100K for a 33% stake contingent on the patent. Kevin O'Leary wants to go in with Robert and shut Daymond out the deal. Robert agrees to go in with Kevin O'Leary 50/50 for the same amount Daymond offered giving the Johnson family the teamwork and funding of two sharks. But no sooner than Kevin's offer rolls off his lips, Daymond drops his equity and offers $100K for a 25% stake. It looks like the waters may get a bit turbulent in the tank for a second until Kevin O'Leary asks the Johnson family to excuse them for a moment. When the Johnson's return, the result is that Daymond, Kevin and Robert agree to come together for an offer of $100K for a 33% stake. because they see the real value in the patent. But the Johnson's have decided to counter by asking for more money! The evil face of greed has reared it's ugly head on the picture perfect family as the jaws of these little guppies snap with a counter offer of $150K for a 33% stake! But Daymond decides to step out of the deal on the counter offer and so does Robert. Kevin decides to utilize the moment to give them a lesson: "In the end, it's only about the MONEY, .... all of the time" he says. The sharks offer is a hard offer, he gives the Johnson's one last chance to take the original offer with the contingency that they clear the patent. The Johnson's finally decide to take the offer and walk away with the investment. 

CAME IN SEEKING: $100K for a 20% stake.

WALKED WITH: $100K for a 33% stake.

GRADE: (Guppy): A

GRADE: (Sharks): A

COMMENTARY: Teamwork. They had a game plan, they came in prepared, and they even turned down an offer and came back with a counter (to no avail of course), but yet they've still managed to execute walking away with the investment they came for. And the kid is a rockstar! A shark in the making! Stupendous work! Good work Jake!

 WATCH SHARK TANK WEEK 2/EPISODE 3 - FLIPOUTZ

"Successful people make money. It's not that people who make money become successful, but that successful people attract money. They bring success to what they do." - Wayne Dyer





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...........

Watch Shark Tank - Week 2 /Episode 3 - Fitness Stride

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 SHARKS: Barbara Corcoran, Daymond John, Kevin O'Leary, Kevin Harrington, Robert Herjavec

THE GUPPY: Stacy Erwin

THE COMPANY: Fitness Stride

WEBSITE: fitnessstride.com

SYNOPSIS: A way to get in shape while you multi-task

SEEKING: $140K for 15% equity

PRODUCT/SERVICE: A device that allows you to burn calories while not doing anything at all.

WHAT'S THE SKINNY?: They sale for $49.95, you get two sets with 36 different resistance combinations, the production costs is $10 in China. Foot locker buys it wholesale for $30. The product is in foot Locker, Lady Foot Locker, East Bay and Champs. Sales last year were $150,000 with a profit of $60,000. 

BUSINESS MODEL/HOW DOES IT MAKE MONEY?: $49.95 at Foot Locker and more!

STATS: Extra-Extra! New breakthrough technology allows sharks to burn calories while floating in their office chairs lounging doing absolutely nothing. Well, not exactly but it's in ballpark range. Too bad the numbers aren't quite in close enough range for the sharks to nibble. Kevin O'Leary thinks it's a marketing nightmare and he's out. Robert is out because he thinks Stacy needs to spend hundreds and hundreds and hundreds of thousands of dollars to market the product. Kevin Harrington doesn't like the fact that there are no before and after testimonials like the other 150 fitness products he's reviewed this year.  Daymond thinks Stacy evaluated the company too much and he's out on that basis. Barbara is sold on Stacy's enthusiasm and likes his hustle, but just doesn't seem interested in the product and drops out also. Stacy walks away with no investment, but I'm pretty sure that a product with the potential to help burn calories while sitting still is money in the bank for someone with a lot of capital and some innovative marketing ideas. Maybe Nike will pick it up after all the Shark Tank exposure. Who knows.......

CAME IN SEEKING: $140K for 15% equity

WALKED WITH: Free publicity

GRADE: (Guppy): D+

GRADE: (Sharks): Not Applicable

COMMENTARY: Stacey may have had an advantage with just a little bit more preparation. Maybe a few testimonials could have went a long way and helped convince the sharks. I wouldn't give up so soon on a product that Foot Locker buys wholesale though. The distribution is already there. It just needs some innovative marketing to hit the jackpot. Good luck Stacy.

 WATCH SHARK TANK WEEK 2/EPISODE 3 - FITNESS STRIDE

"Money never starts an idea. It is always the idea that starts the money." - Owen Laughlin


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 HE HAVE GOTTEN THE SAME CAPITAL (OR HIGHER) WITH A TESTIMONIAL? DID HE REALLY OVER EVALUATE THE VALUE OF THE COMPANY? POST YOUR COMMENTS AND TEST YOUR NOODLE AT THINKING LIKE A BILLIONAIRE...........

Watch Shark Tank - Week 2 /Episode 3 - Mod Mom Furniture

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 SHARKS: Barbara Corcoran, Daymond John, Kevin O'Leary, Kevin Harrington, Robert Herjavec

THE GUPPY: Kiersten Hathcock

THE COMPANY: Mod Mom Furniture

WEBSITE: modmomfurniture.com
BLOG: modmomfurniture.blogspot.com

SYNOPSIS: Modern designer toyboxes built eco friendly and fun for kids

SEEKING: $90K for 25% Equity stake

PRODUCT/SERVICE: Hand built toy boxes and designer furniture.

WHAT'S THE SKINNY?: She made $34,000 last year, she builds 3 a week, turned away retailers due to lack of capital to build product, it cost about $115 to build (including wage to self), they sell for about $475 including shipping, it takes about 10 hours to make them, she has an Amish manufacturer in Ohio that can make 50 to 100 even 1,000 in a week, she wants the $90K to invest and grow into extending her brand.

STATS: This lovely guppy swims into the tank with confidence as if prepared for a showdown. She is the definition of what fuels the economy and creates jobs. Although her investment is very reasonable, Barbara thinks Kiersten is underestimating the amount of cash she'l need and drops out. Daymond happens to be petrified of the furniture business and drops out next. Kevin Harrington is also out. Kevin O'Leary likes Kiersten's story and decides to make her an offer. He say's the big challenge on it is liquidity and  he wants to make sure he'll get his money back so he offers $90K for 33% + a 7 1/2% Royalty on every unit sold until he recoups his investment. Robert decides to give her $90K for 33% + Royalty after 500K boasting that he understands small businesses, and knows that a small business can't pay a royalty when starting out, that a small business needs to re-invest the cash, and pay a  royalty only after reaching a certain amount in sales. Kevin O'Leary boasts that his 7 1/2% royalty is the discipline she needs to survive. After thinking it over a second, Kiersten decides that Robert's offer is the better offer and walks away with the investment. 

CAME IN SEEKING: $90K for 25% equity stake

WALKED WITH: $90K for a 33% stake + royalty after 500K

GRADE: (Guppy): A+

GRADE: (Sharks): A

COMMENTARY: She came in prepared for a showdown, confidence in her eyes and walk, tools at hand. She managed to obtain the investment she wanted while keeping 67% of her company. Not bad. Not bad at all. Good job Kiersten!

 WATCH SHARK TANK WEEK 2/EPISODE 3 - MOD MOM FURNITURE

"A creative economy is the fuel to magnificence." - Ralph Waldo Emerson


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 SHE 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...........