But an $800 light show seems like kind of a tough sell, especially as it's pitched as a Christmas tree replacement.It’s holiday season in the Shark Tank and the latest episode showed that even the Sharks can’t help but be swept up in the spirit of giving. Whether this deal ends up being worth it depends entirely on what kind of additional sales Barbara can bring through new partnerships. However, the 18% in equity does seem particularly sharky, especially considering that she took 20% from The Original Comfy, a company that had no sales and no royalty as part of the deal.įor all intents and purposes, the entrepreneur is giving away 18% of their company for the privilege of an interest free loan. In this case, at least for the large "trees", the company has a profit of $567 per item which can easily afford the $5 royalty. The Stats Shark is not generally opposed to royalty deals if the company has the margin with which to absorb them. Even though this represented a bite of almost 50% off the original value or $444,444, the entrepreneur accepted. Not only did she want 18% in equity instead of just the ten the entrepreneurs originally pitched but she also wanted a $5 per unit royalty on every product until the original $100,000 was paid back. But rather than just offer another straight equity deal, Barbara went for something more akin to what Mr. In terms of sales, 80% of customers find their product through their own website while just 20% are sold through retail channels.īarbara was having a big night after having already invested in The Original Comfy. The entrepreneur stated that their profit margin is near 50%. The entrepreneur claims that in the current year they have made $380,800 in gross sales and that they have seen 70% growth each year since starting in 2014. The big "tree" model retails for $799 per item an costs $232 to manufacture each one. The business was started in his honor after he was diagnosed with Alzheimers.
The original Modern Christmas Tree was designed and built by the entrepreneur's grandfather. Constructed from concentric rings so that it can store flat, Modern Christmas Trees are themed light shows that can be hung from the ceiling or from the side of the wall. Modern Christmas Trees is a company from Denver, CO, that has a new take on what a Christmas tree can be.
Equity/Royalty Deal Sharks: Barbara Corcoran
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