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Rebecca Rescate in Shark Tank (2009)

Plot

Episode #2.9

Shark Tank

Edit

Summaries

  • A woman seeks an investment for a toilet training kit for cats.

Synopsis

  • Sharks on the episode were Kevin Harrington, Daymond John, Kevin O'Leary, Barbara Corcoran, and Robert Herjavec.

    Rebecca Rescate presented her product called "CitiKitty," a toilet training product for cats. She asked for $100k in exchange for a 15% stake in her company. CitiKitty involved using a special seat and a small amount of cat litter to train cats to use the toilet instead of a litter box. The product eliminated the mess and odor associated with traditional litter boxes. CitiKitty was priced at $29.99 and cost $4.67 to produce in quantities of 10k units. Rebecca had sold $225k worth of CitiKitty products the previous year and projected sales of $350k for the current year. She had already sold 40k units in the current year and wanted the investment to hire a sales representative and for marketing. Robert Herjavec, being a dog person, opted out of the deal, and Kevin O'Leary, who disliked cats, also declined. Kevin Harrington made an offer of $100k for a 40% stake and proposed to market the product on TV. Daymond John opted out, but Barbara Corcoran offered $100k for 15% if her TV partner in New York City approved the product. Rebecca counter-offered to Harrington, asking for $100k for a 20% stake. Harrington came back with a revised offer of $100k for 25%. Rebecca attempted to get Harrington and Barbara to collaborate, but they both declined. Barbara removed the contingency from her offer, but Rebecca had doubts about Barbara's commitment. In the end, Rebecca accepted Harrington's offer of $100k for a 20% stake, and a deal was made.

    Kim Preis presented her product called "Samson Martin," which consisted of T-shirts for expecting mothers. Kim sought $50k in exchange for a 15% stake in her company. Initially, Kim had launched her product in high-end boutiques but faced difficulties due to the recession. She now wanted to pivot towards mass-market retail. Over six years, she had generated $1.2 million in sales, with $90k in sales for the previous year. The peak sales reached $400k. The price range for Samson Martin T-shirts was between $40 and $60. Kim aimed to bring her affordable T-shirts to big-box retailers, but she hadn't made any phone calls yet, leaving the product untested in the mass market. Daymond John opted out, believing that the clothing market was already saturated with big brands. Kevin Harrington was concerned about Kim's 30 SKUs and decided not to invest. Barbara Corcoran didn't see the value in the product, and Robert Herjavec didn't believe the business could recover. Kevin O'Leary disliked the limited target market of pregnant women and opted out, suggesting that Kim could target the broader market of 250 million Americans. Kim was visibly upset by O'Leary's comments but tried to hold back her tears. Unfortunately, she did not secure a deal.

    Aldo Aorta presented his company, "Aldo Orta Jewelry," which offered mass-market versions of custom jewelry. He asked for $180k in exchange for a 45% stake in his business. Aldo had previously designed exclusive jewelry pieces for royalty and celebrities but now wanted to make his designs accessible to the general consumer at an affordable price. Concerns were raised during the pitch. Kevin O'Leary worried about the sustainability of the business if Aldo were to pass away, and Kevin Harrington expressed concerns about Aldo's lack of experience in the mass-market segment. O'Leary opted out, and Daymond John decided not to invest due to the recession and consumers' reluctance to spend on extravagant jewelry. Robert Herjavec also declined, believing the price point was too high. However, Aldo had been in talks with QVC and gained their interest. Barbara Corcoran liked Aldo and offered to contribute half the investment. Harrington agreed to match the other half, and a deal was struck.

    Dominique McLain Bartley presented her product called "One Sole," which offered shoes with replaceable tops. She requested $500k for a 20% stake in her company. The shoes featured a comfortable sole that could be paired with different tops, allowing customers to change the style of their shoes easily. Dominique's business had achieved significant success, with $20 million in sales over four years, presence in 2000 stores across 30 countries, and successful product demonstrations on various shopping channels. The soles were made in Italy, and the tops were manufactured in Florida. Dominique sought the Sharks' help to improve sourcing and manufacturing partnerships, potentially including China. Dominique, a licensed pharmacist, started the shoe business as a hobby. In the current year, she had already generated over $4 million in sales, with a net margin of 30%. The cost to produce a pack of three soles was $18, wholesaling for $30 and retailing between $85 and $95. The product had two utility and two design patents, with additional patents pending. Dominique needed the investment to fulfill orders, as her capital was tied up after purchasing a house in Florida. Daymond John made an offer of $500k for a 35% stake. Barbara Corcoran opted out, considering it too time-consuming. Kevin O'Leary offered $500k for a controlling 51% stake. Harrington and Herjavec matched O'Leary's offer with $500k for a 50% stake. Dominique accepted Daymond John's offer, and a deal was made.

    In an update on a previous episode, Jeff and Josh Cohen, the founders of Voyage Air Guitar, rejected a deal on Shark Tank because the Sharks wanted them to license the patented hinge, which Jeff disagreed with. Despite not securing a deal, their sales were projected to reach $3 million, and they had even launched the Voyage Electric Guitar. The exposure on Shark Tank had provided a significant boost to their business.

    It is also noted that the creator of CitiKitty would return to the Shark Tank in a future episode (Episode 415) to pitch a new product.

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