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With only two episodes left in season 3, the Sharks were hungry for some big deals on the most recent episode of Shark Tank. Barbara was back in the tank, ready to take on Kevin, Mark, Robert, and Daymond in the battle over who could win the best deals. This episode had some interesting business concepts, including one by the inventor of rollerblades. We also got a peek at how one of this season’s favorite contestants is doing after making a deal with Lori Grenier. If you missed the action, here’s a recap of what went down in the tank:
AirBedz self-inflating mattress tries to put $250,000 to bed
First into the Shark Tank tonight was James Pittman, representing his company AirBedz, a self-inflating air mattress designed to fit in the bed of a pickup truck. James asked the Sharks for a $250,000 investment, in exchange for a 15% stake in his company. The Sharks quickly pegged AirBedz as only appealing to a niche market, so they were eager to hear about the company’s sales record. AirBedz saw $210,000 in sales in 2010, and had already surpassed that benchmark in 2011, as of the time the show was taped. But then James dropped a bomb that made four of five sharks bow out: he is currently sitting on over $400,000 in inventory. Despite the lacking sales drive, and Kevin’s chiding “Are you gonna send money to die here, Barbara?”, Barbara made an offer: $250,000 for 50% of the company. Not wanting to give away that much of his company, James countered at $250,000 for 25%, but Barbara was no longer interested. Unfortunately no deal was made with AirBedz.
Shark Tank Success Story: Show No Towels
Shark Tank fans will remember the heart-warming story of Show No Towels, which originally aired earlier this season. Founded and sewn in Shelly Ehler’s basement, Show No Towels are towel ponchos that children can wear while changing, making it easy to switch out of a wet swimsuit after a day at the water park. Shelly made a deal with Lori Grenier, and she’s never looked back. Show No Towels has gone from Shelly’s basement to being sold at Walt Disneyworld Parks! Congrats ladies!
Rollerblades guru, Scott Olson, tries to land $3 million deal for SkyRide
Next into the Shark Tank was SkyRide, the newest creation from the original inventor of rollerblades, Scott Olson. SkyRide, an innovative self-powered air bike that glides across a track, needed a $3 million investment from the Sharks in exchange for 20% of the company. The Sharks were interested in Olson’s profit from inventing rollerblades, though he declined to reveal exactly how much he’d made (just stating it was “more than $5 million”). Unfortunately, the Sharks failed to see the consumer application of SkyRide, thinking the product was too costly and required too much area for it to be in demand. All of the Sharks were out, but Kevin took it one step further when he quipped, “This is a very bad idea. It howls at the moon. You should take it behind the barn and shoot it.”
Boot Illusions requests $100,000 for 30% of unique shoe company
Third up was interchangeable shoe company, Boot Illusions, represented by Queenie Davis and Andrew Goodrum. They were seeking $100,000 in exchange for 30% of the company. The company’s potential and profit margin immediately piqued the interest of both Barbara and Daymond. The FUBU mogul saw money in licensing the idea, and he made an offer of $100,000 for 75% of just the boot technology, with a $0.25 royalty to Queenie and Andrew for every product sold. Seeing her chance, Barbara jumped in with $100,000 for 55% of the company, much closer to Boot Illusion’s original valuation. Without a second thought (or even consulting Andrew!), Queenie took Barbara’s deal.
Villy Customs seeks $500,000 for customized bike company
Last into the tank was Villy Customs, a custom bike company founded by Fleetwood Hicks. He asked the Sharks for a $500,000 investment for 33% of his company. Villy Customs builds fully customized cruiser bikes, and offers over 1 billion color and design combinations. As is usually the case when there are high valuations on the table, the Sharks were eager to hear about the numbers. The average Villy Customs bike retails for $641, while it costs the company only about $240 to produce and ship. This year Villy Customs projects sales of about 350 bikes. While some of the Sharks were turned off by the high price of the bike, Barbara and Mark are ready to make a combined offer of $500,000 for 45% of the company. Fleetwood quickly countered at 40%, and Mark and Barbara offer to meet in the middle. With an investment of $500,000 from Mark and Barbara, in exchange for 42% of Villy Customs, the deal was made.
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