Snarky Tea
Snarky Tea is a company from Nokomis, FL, that makes a line of teas that are named after that they promise to do with a wry sense of humor. For instance, the "Get Your Ass to Bed" tea is claimed to help people sleep. They appear to have a half-dozen different blends all of which are targeted specifically at women.
85% of their sales have been direct to consumer through the company's own website. The rest has been sold through retail outlets like women owned boutiques.
Tins cost $4.34 to produce and retail for $12.99. However, their customer acquisition cost has been $11 per customer which, as Mr. Wonderful helpfully pointed out, means that there is no profit.
This deal aired on Episode 9.08.
Making A Deal
Despite Mr. Wonderful's criticism, he teamed up with guest shark Bethenny Frankel to make an offer of $150,000 for a fifty percent stake within the business. The entrepreneur accepted despite the fifty percent chop in value that this led to.
Analysis
This is probably a pretty solid deal for the entrepreneur given the current cost to acquire a customer. With Bethenny Frankel's Skinny Girl brand, it's likely this line of products could be folded into the portfolio and sold alongside to introduce new customers to it as well as increase sales. Given that the company probably does not currently turn a profit, the valuation is hypothetical anyway.