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Product - Nearly newlywed
Created By - Jackie Courtney
Seeking - $35k for a 10% stake
Nearly Newlywed is an online boutique as a way to buy wedding dresses. Jackie has a background as a fashion publicist and realized that she borrowed clothes from designers and could use the same concept with her business. She pointed out that on Nearly Newlywed was a website that basically sold used wedding dresses and guaranteed a buyback of 50% of the original cost. The inspiration came from her own wedding, because there are several women wearing her personal wedding dress for their weddings already.
Jackie claimed that while there was the thought of sentimentality, she was convinced that women today wanted better dresses. The sentimentality was what prevented Robert from really getting into the product. Barbara admitted to re-using a wedding dress. She claimed that there are options of alterations that rented dresses couldn't do. She has about 90 dresses in her inventory. She has $300K in inventory and she got it from consignment from brides and designers. She claimed that she didn't pay for her dresses until she made a profit.
Daymond was wondering about price. Jackie noted a 30-40% markup. Robert was worried that there was a personal issue with the dresses. For sales, she only has sold four dresses in 30 days. Her goal was building inventory and having a press run. Mark was worried about PR, Jackie claimed Facebook was important. She claimed that she has pieces in Martha Stewart Living and other magazines. Barbara thought it was too early to test the product and dropped out.
Daymond was interested in the bridal space, because females have no rational in thinking about the dresses and weddings, but nearly newlywed didn't fit. Mark thought that the business was too press-driven.
Offers - $35k for 40% stake from Kevin
Accepted Offer - None
Product - Corks Away
Created By - Shane Cianciolo & Nathan Buffett
Seeking - $105k for a 20% stake
Corks Away was basically a wine tasting on a boat. They claimed that they had "Wine on the Water" theme but there were also beer, mimosa, or even couples cruises. Kevin called it a "booze cruise." They have 12 cruises a week, year round. They have $250K in sales for one boat in a year. They are in a stage two (of four) for franchising, they are basically looking for a way for captains to expand their businesses. For $175K they can provide a boat and all the business instructions for a captain to begin a business partnership franchise. The boat cost $35K and the sharks were surprised that technically their business plan cost $145K. They were convinced that customer service was important.
Stage Three was the "Pesto Tort" phase where they wanted to sell the food as part of the plan. They admitted that it wasn't a large or important part of the big plan. Their stage four was to make an indoor dinner ride in Las Vegas years down the line. The sharks were stunned after hearing the remarks.
Mark's problem was the scaling of how many bays this business could get to. Robert appreciated how two friends could really get together, but there were too many flaws to get to the ride. Kevin didn't think the business was worth an investment.
Offers - None
Product - Tie Try
Created By - David Powers & Scott Tindle
Seeking - $100K for a 25% stake
The two created Tie Try as the Netflix for ties. Just like the DVD rental service, the Ties would be borrowed and then returned for a monthly fee. They only launched a few months ago and used free press. They have 110 subscribers as a proof of concept. Kevin wondered where value was added. The duo pointed out a two tie a month program that was $15.99 a month. If you wore a tie and returned it quickly they could make a large savings. They were looking for a referral program they were hoping to expand to other men's accessories.
The duo has an 85% renewal rate at the moment. Mark was worried about getting free press and losing the 15%. The subscription model is an interesting model, but Robert was worried about the subscriber base. Scott was convinced that he could go on a tour to sell ties. There were also college representatives hoping to work for the company. Kevin decided to put in half the money and hoped to have another shark jump in. Barbara knew the "young guy" market was the great area, but she disliked how small the company was at the moment. Daymond didn't hear a word about the beauty of fashion and was immediately out after there was no passion.
Offers - $50K from Kevin looking for another investor (withdrawn)
Product - Ruckpack
Created By - Rob Dyer
Seeking - $75K for a 10% stake
The military professor created a product after he was in Afganistan. The product was originally made for Marine Spec Ops. The item was a shot that provided nutrition. The product provided caffine-free energy, which was great for snipers.
Kevin loved the story for servicemen, but wondered how to translate the product to the everyday person. Rob admitted that he created the prodict to cater to other military personnel. There were small independent stores that sold the product, but needed more money to create more product.
The name "Ruckpack" derived from the bag that carries all the gear that a military person needed, not wanted. The product wasn't endorced by Marines. Rob pointed out that there were proprietary ingredients but some ingredients had to be released. Robert wondered about how the product would get out to the general public. Rob pointed out that the product was "healthy." Rob is a currently working as an accounting professor for the miliraty. He has two and a half years teaching, but he spends the rest of his time on Ruckpack.
Rob wanted scale and manufacturing with the money he was looking for. Each product costs about 85 cents and sold for $1.65 wholesale. There was no inventory and he had to pay 50% ahead of time. He put in about $95K of his own money in. There are sixteen owners and he and his wife owns 45%. The company spent about $240K, money was spent for R&D and websites. They have a caffenated version as well in inventory. Rob's issue was filling existing sales. Robert was worried about the money not being able to invested in a cycle. Daymond has a similar product and dropped. Mark was worried about how he wasn't fully invested in the product because of his teaching status.
Offers - $75K for a 10% stake from Kevin, $150K for a 20% stake Kevin and Robert
Accepted Offer - Kevin & Robert