Pizza Pack – Shark Tank S.14 Ep.1
Name & brand: Pizza Pack
Branding wise it is perfect, easily to associate the product with the function and the usage.
Logo: Is a nice caricature of the pitcher with his pizza cape, however it is not showing on the product packaging.
Story: Tate Koenig second pitch on the shark tank. A serial entrepreneur, this time he is coming with a company that produces a expandable storage container for pizza. He has 2 other partners each of the partners have 1/3rd, and each have invested $25k to launch the company, no external investors so far.
Company offer: Collapsible Pizza Container (one product).
The Pitcher: Tate Koenig.
The Problem that needs solving: Storing pizza slices, and eventually heating them in the microwave.
The ask: $100 k for 10% of the company.
Valuation: $1 million.
Defensibly: 1 utility and 2 design patents. But still pending.
Sales: April to date $250k, $60k in profit.
Cost: $4 (Produced in China) Sells: $24.99
Marketing: Social media ads, Customer acquisition cost: $2.30.
Competitors: Some knockoffs but they are being shut down by the patents, 1 main competitor still (to be shut down when patents are issued).
Business model: Wallmart + Website + Amazon.
Needs the money: For inventory. they produced 1000 units, they sold out, then 2500 units they sold out again. Now they have no products in the inventory, they are waiting for the next batch. Also they need the connections a shark can offer.
The Sharks offers / deals:
Barbara finds keeping pizza for more than a day shocking, so she’s out.
Robert, does not like single products companies, thus he decides to pass as well.
Mr Wonderful, offers 100K for 10%, but with a royalty deal of 2$ per unit till $200k, then 50 cents per unit for perpetuity.
Daymond, wants to be an equal partner, thus offers 100k for 25%.
Mark offers to buy the company, an acquisition offer, he tells Tate to give him a number, the number was $5 million, later Mark counter offered $1.5 million.
Lorry offers offers 100K for 20%, then later 15%, then 13% as Tate asked her to meet him in the middle. And Tate accepted Lorry’s offer.