Bug Bite Thing
Bug Bite thing is a product from South Florida that promises to be a "simple solution to a common annoynace." When the mother-daughter pair of entrepreneurs appear in the tank, they promise that "our product sucks!" becuase it is, in fact, kind of a sucking device.
What the Bug Bite Thing is is a plastic tube that can be applied over an insect bite that, through the power of vacum, will suck up the venom or salviva that makes these creatures' bites itch. The mother-daughter pair of entrepreneurs claim that this product will work to remove the itch from all insects that leave venom or saliva just under the skin like bees, wasps, ants, or mosquitos. They further demonstrate this with photos to show the before and after application of the Bug Bite Thing within an hour of the bite and use.
The product actually comes from Denmark and was brought to the United States by the daughter member of the team when she moved to South Florida and found herself unprepared for the sheer scale of the mosquitos there. She acquired the exclusive rights to the product in the United States.
Thus far, the Bug Bite Thing is sold direct to consumer online for $9.95. The entrepreneurs claim to have an 80% margin since the total cost of production is just $1.53 per unit landed. The entrepreneurs do throw this number into some contention though by then claiming that packaging is another $0.40 per unit and the average per unit cost is $2 per unit. In the previous year, the company's gross sales were $500,000 but just $800 in sales were made in the first five months (implyingthat the other $420,000 in sales were made in the remaining seven). The entrepreneurs project that the Bug Bite Thing will sell make as much as $2,000,000 in sales by the end of the year.
The mother-daughter entrepreneural pair claim that the Bug Bite Thing has secured a deal with an unnamed chain store to be in 7,000 store.
Making A Deal
Mr. Wonderful states that he actually likes the value the entrepreneurs have put on the deal.
Looking at the offers, the mother in the mother-daughter entrepreneural pair states that they're looking for investments because they need to purchase more unpackaged product to package ahead of time in order to meet demand.
To this, Lori Greiner offers her "Golden Ticket", in which she will give the entrepreneurs exactly what they're asking for because she belives in them. All Kevin can do is to offer his "magic pen" to let them sign on the the dotted line with him. Barbara and Rohan, mean while, attempt to team up but the entrepreneurs go with Lori before a solid counter offer can form.
In all honesty, Lori seems like the best shark for this product and, given that the entrepreneurs didn't have to sacrifice any additional equity to get her on board, this really does seem like the perfect world for deals on Shark Tank.
- This may sound like a sweet deal and the Stats Shark will certainly post something about the value of the Golden Ticket in the near future but the value of it is really based on the idea that Lori is the shark the entrepreneur(s) are looking for to begin with and that, normally, she would bite a much larger chunk off their value. Some times, this "Golden Ticket" might actually valye the company the most when compared to the other sharks but this it should be noted how this is valued.