This week’s episode of Shark Tank features energy bars that include protein from crickets, a garage lock to prevent break-ins, a shower cap that fixes “bedhead,” and digital textbook rentals. Also an update on Fiber Fix.
First into the tank is Pat Crowley, an environmentalist from Salt Lake City, Utah. He is seeking an investment to increase production. He is asking for $50,000 for a 5 percent stake in his company. His total sales in just under a year are $50,000. His company manufactures energy bars with a sustainable, eco-friendly form of protein. What is that sustainable form of protein? CRICKETS!
Kevin O’Leary believes that consumers will be revolted at the thought of the bars containing insects. They actually work with a “cricket ranch” to get their crickets. Grind the crickets into a flour. Robert Herjavec is freaked out by insects, so he is out. Barbara Cocoran believes that the protein bars taste great, but thinks it will be tough to convince people to buy an insect-based product.
Mark Cuban wants more than 5 percent equity, so he and Jim start talking business. Pat tells Mark he will give up 15 percent equity for the $50,000. Although Robert initially went out, he has grown impressed by Pat’s business savvy. He jumps back in and offers $50,000 for 20 percent. Moments later, Mark says he will do the 15 percent for $50,000. Pat agrees to the terms and has a deal with Mark Cuban.
Update: Fiber Fix
This season, Eric Child and Spencer Quinn made a deal with Lori Greiner for their multi-purpose repair product, Fiber Fix. Before Shark Tank, they only had $300,000 in sales. In 3 months since the show aired, they have done nearly $6 million in sales. They sold 45,000 rolls in 10 minutes on QVC. Their product can be found at Home Depot, Ace Hardware, and many other retailers. They are soon rolling into all Lowe’s stores across the country.
Garage Door Lock
Next up is Bryan White with his company, “Garage Door Lock.” He is looking for $275,000 in exchange for 30 percent of his company. He explains that there is a home invasion every 15 seconds. His product is a steel deadbolt lock that automatically locks the garage door when you close it. He sells it $49.95 and has sold 450 units so far with gross sales of $112,000.
Robert wants to know how he will educate the market. He has not done any marketing thus far, and the product is exclusively sold online. He wants to go to retail, and says he has a “guaranteed introduction” to a major garage door company. The Sharks seem perplexed by this, and are not confident in Bryan’s marketing abilities given his personality. However, they like the product. Daymond offers $275,000 for 40 percent, but it’s contingent on them getting a licensing agreement with a garage door manufacturer. Robert jumps in and offers the $275,000 but wants 70 percent equity. Bryan counter offers 35 percent, and Daymond accepts and they two have a deal.
Up next is Max Valverde, who comes out with his hair looking a mess. His products aims to fix “bedhead.” It is a reusable, re-washable cap that you put on your head, rub it around for a few seconds, and your hair is completely wet. He has sold 7,000 units in over 42 countries for a total of $36,000 in sales. The caps are priced at $7.99 apiece. He is seeking $25,000 for 20 percent equity.
The Sharks joke that it’s just a shower cap. Barbara says she uses a damp face cloth to rub on her bedhead; she goes out. Kevin says that the product qualifies as “poo-poo on a stick.” The Shark just don’t see it becoming a million dollar company. Max leaves the tank without a deal.
Last into the tank is Kasey Gandham and Mike Shannon with their business, “Packback Books.” They are seeking $200,000 for a 10 percent equity stake in their company. Packback Books is a pay-per-use access that allows students to rent for a day at a time for $5 or less. A student logs in, selects the book they need and the textbook is available for 24 hours. They believe that students are only using most textbooks on four main occasions, so students would only be paying $30-35 per textbook instead of hundreds of dollars. Mike and Kasey explain that they are already working with one major textbook publisher. Barbara admires their persistence, but believes they will have a hard time selling their product. Kevin has worked with textbook publishers for over a decade, but doesn’t want to get back into the education business.
Mark likes the concept, and has a lot of experience in the technology industry, but he wants for than 10 percent equity. After talking it over, Mike and Kasey offer Mark 17.5 percent equity in exchange for a $200,000 investment. Mark counters with $250,000 for 20 percent. Kasey, for some strange reason, asks Mark if he would be willing to do $200,000 for 20 percent – less money and more equity. The Tank clearly has him nervous and not thinking clearly. They guys end up taking Mark’s counter offer of $250,000 for 17.5 percent equity and leave the tank with a deal.
Tune in to ABC next Friday at 9|8c for an all-new Shark Tank.