Alaska Glacial Mud Co.
Lauren Padawer, a commercial salmon fisherman from Cordova, Alaska, is first into the tank with her company, “Alaska Glacial Mud Co.” Her product is a mud mask that is literally made from mud from the Copper River in Alaska. The idea started on a rafting trip when she decided to cover her face in this “buttery mud.” Upon removal, it left her face soft and glowing.
She is seeking 100K for a 20% equity stake in her company. Her sales to date are only 36K a year, which draws concern from the Sharks. Her product is being sold in a few spas across the country, and she hopes to get into more spas worldwide. Barbara loves her story, but explained that it’s tough to sell cosmetic products to both retail locations and spas. Kevin O’ Leary brings up a good point when he mentions that anyone could go to the Copper River and get the mud for free. All five Sharks have concerns about the product and none are willing to make a deal.
Mike and Brian are next into the tank with their business, “invisiPlug.” InvisiPlug is a line of surge protectors that are designed to seamlessly blend in to hardwood floors. They are seeking a 125K investment for 10% equity in their business.
The Sharks seem a bit skeptical about the product in the beginning. Kevin wonders what is stopping other companies from making a similar design. Robert, being in the technology business, but doesn’t see the value. They have sold 1,500 units in the 6 ½ weeks that have been in business, with gross sales of just 10K.
Things look bleak until they mention that their product is going to be featured in Oprah Magazine’s “new product” section. This immediately gets the attention of the Sharks and they now seem intrigued.
QVC Queen Lori Greiner shoots them an offer of the 125K for 10% like they asked for, but she also wants $1 per unit sold until she gets her money back. After recouping her money, perpetuity would drop to 50 cents per unit. Mike and Brian counter and get Lori down from 50 cents perpetuity to 25 cents.
Robert, who went out earlier, has grown impressed by Mike and Brian and decides to jump back in and make an offer of 125K for 25% equity. Brian and Mike counter and get Robert down to 20%, but Robert will only do the deal if they agree to terms immediately. Brian and Mike hesitate and lose Robert’s offer altogether. They end up taking Lori’s deal.
Update: Grilled cheese restaurant “Tom + Chee” appeared on Shark Tank in Season 4, landing a deal with Barbara. Before the show, their sales were at $1 million for an entire year. Since the show aired, they’ve reached $1 million in sales in just 3 months! Tom + Chee went from having 40 employees and 3 locations, to 80 employees and 6 locations in just a short period of time.
Next up, two fathers have created a product to keep students organized. Greg and Stephen are the owners of “Locker Bones,” a school locker organizer. The product is a wooden, vertical divider with shelves that can be moved around to best suit the student. They have only sold 500 units in 2 years, but they have not done much marketing for their product.
Robert loves the proof of concept, and he and Lori go in with an offer of 175K for a 50% stake. They quickly accept Robert and Lori’s deal, as they are excited to gain two Sharks in the deal.
Last into the tank is Ben, with a way to ease the difficulty of dining-out with children. His business “Balloon Distractions” has balloon artists come into restaurants and make balloon animals to keep kids entertained while they wait for their food. He is seeking 250K in exchange for 30% of his company. Balloon Distractions makes an average of 500K a year, and the business has made $4 million since inception.
Ben is a very high-energy guy with impressive salesman skills, but he doesn’t have a very sound business plan. The Sharks generally seem to like the business concept, but they believe the actual structure of the business is flawed. The result ends with all Sharks bowing out, and Ben being let without a deal.
Would you buy any of the products featured on this week’s episode of Shark Tank? Feel free to post your thoughts and comments below.
Shark Tank airs every Friday night at 9PM ET on ABC.