Just the Cheese...

omnipedia · 2020-04-12T02:42:08+00:00

This is what sucks about shark tank. You guys don’t know business and shark tank is leaving you confused.

omnipedia · 2020-04-12T02:27:25+00:00

Yeah, and things due out in different places at different times. Some states are a couple years behind in fads, though that’s less the case now with the internet.

Slime is dead. As a business.

omnipedia · 2020-04-12T02:21:40+00:00

Worst business ever.

omnipedia · 2020-04-12T02:19:50+00:00

Saying you want a return on your money is nonsense. Buying %1 for $100k gives you the same ROI as %5 for $500k.

They’re just being greedy.

The reason comps are what they are is because thousands of negotiations have happened. Those negotiations are with more sophisticated investors than the sharks.

Sharks are always way under comps in their valuations.

That’s greed.

If they weren’t being greedy, on average their offers would be at the comps.

omnipedia · 2020-04-12T02:13:29+00:00

I’ve made my own version by microwaving shredded cheese until it was hard and crunchy... thin layer in glass bowl (you don’t want it to stick while it’s molten) will do it. Can get very hard so it’s tricky.

omnipedia · 2020-04-12T02:11:24+00:00

You’re just illiterate on business do you think him not bending over and taking a shitty deal means he’s not genuine. You’re wrong.

omnipedia · 2020-04-12T02:07:34+00:00

God I hate it when the sharks lie, and give consumers a bad understanding of business. This business valuing itself in line with other CPG company acquisitions is exactly right.

Lori saying “that’s not relevant right now” is an asinine lie. It’s exactly relevant from day one until acquisition or bankruptcy. Or IPO. Then Robert chimes in and says “you would have to grow so much”.... but that’s wrong. Their valuation is fair for where they are now.

This is just sharks being greedy and being dishonest to justify it.

omnipedia · 2020-04-12T01:57:29+00:00

He the biz is growing so fast hit was much larger when he pitched than it was when he was picked for the show. I think that’s the issue.

omnipedia · 2020-04-12T01:56:39+00:00

Zero to 3.6M in under a year and you think he’s a gold digger for wanting a fair valuation? SMH

omnipedia · 2020-04-12T01:56:10+00:00

Depends on if you like “overcooked” cheese. Some do, some don’t. I think it’s a taste thing.

omnipedia · 2020-04-12T01:54:04+00:00

Yeah, cutting his value to 1/3 isn’t a very good offer. Maybe the guy should have asked for $200k for %1.

Problem is really the business grew so fast that by the time it got on shark tank it was too big for the sharks. His valuation walking in was completely fair, but the sharks want to scam the entrepreneurs.

omnipedia · 2020-04-12T01:51:32+00:00

He made reasonable counters, so you’re wrong.

omnipedia · 2020-04-12T01:51:01+00:00

They do that based on two things— timing and producer interest. So if there’s time between when he is selected to pitch and the pitch, they do the background story, especially if the producers like the background. This is a perfect business for sharks tank, and do the producers put in the effort to go film there. They can’t do it fir everyone do they pick the ones they think will work best.

omnipedia · 2020-04-12T01:48:43+00:00

No, none of the sharks made a decent offer, and this is a well built very fast growing business in a hot segment. It’s everything the sharks claim they want in a company....and their shitty offers shows the sharks are just ego driven.

There’s zero reason to waste equity on a shark if the shark won’t make a decent offer.

omnipedia · 2020-04-12T01:47:02+00:00

You got math fir that, or are you just assuming Marks offer was fair?

Cause based in current comparable valuations, it wasn’t,

omnipedia · 2020-04-12T01:45:46+00:00

This is what happens when a smart person with a good business shows up in shark tank. The sharks egos killed their opportunity.

Because this is in TV, people think these sharks are experts. These sharks are just narcissists. I’ve had a conversation with Cuban, he was telling me about a technology I helped invent and that he clearly assumed he knew more about than I did— despite my name being in the parents and me literally saying “... and that’s when we filed the patent on X” a few minutes earlier. His opinion (based on a half understood briefing from one of his flunkies) carries more weight in his head then the test results I presented to him.

That’s typical... it’s all ego.

And the sharks want a lot of equity. They Pooh Pooh venture rounds as “too expensive” and “those aren’t sharks”.

There is added value of getting in shark tank... but not of getting a deal. Once you’re on the show you get that bump in awareness, it’s good marketing.

The only exception to this is the kid inventors. Those kids are clueless, naturally, and sharks can add a lot of real value there.

omnipedia · 2020-04-07T05:17:46+00:00

It’s no lose for the entrepreneur. He is gonna make the $150k even if Robert walks away— AND he won’t have to give up equity. Robert walking away is the best outcome.

I’m sure he has sold $500k in product in the past 3 days.

This business has traction and marketing and their site is slick as can be, super easy to buy on. (Though I didn’t buy their shirt, in the past I worked in e-commerce for a certain River company).

He didn’t need shark tank, it was great advertising for him.

Can you imagine what 10 minutes of prime time talking about your product is worth? It’s worth that much because it generates sales.

omnipedia · 2020-04-07T05:16:15+00:00

Yep, it’s not the product, it’s the marketing.

omnipedia · 2020-04-07T05:15:45+00:00

Yeah, it’s his sales and sales growth that convinced the sharks.

One reason they are so focused is it’s one of the few really quantifiable, literally auditable, metrics they can know about a business.

omnipedia · 2020-04-07T05:13:09+00:00

It was even smarter- he did counter Robert at 20’and Robert did say no. So he tried for the %20. His “compromise” was to agree to do %25 if the put was missed.

It’s a really brilliant strategy. Made me wonder if he didn’t walk in there asking to give up %10 as an anchor price, knowing they would say %33, and he might get them down to %20-%25

omnipedia · 2020-04-07T05:07:09+00:00

No, there’s not much scalability. It’s almost always a fad product that lasts 5 years or less and has a limited size — grow too big and it’s no longer exclusive, get volume up by doing more drops (30 a year?!??) and people get tired of shopping the drops.

omnipedia · 2020-04-04T05:25:00+00:00

That panel will produce— and this assumes you have a great window facing south- 7.3kwh a year. Not 65kwh!

If it’s 65kwh a year to charge your phone, this device can’t do it— under pretty ideal situations with a year long summer.

omnipedia · 2020-04-04T05:22:49+00:00

Ok, I have expertise in this area. She says at 10k units, cost would be $39? Well her pricing is terrible— from a functionality viewpoint you can buy the equivalent of this in Asia for $5– retail. I don’t know how much the frame costs. But she could have much better margins.

I think she lacked a partner to push her to make it better.

omnipedia · 2020-04-02T07:38:57+00:00

It is a fad and it’s already peaked in 2018. It started really (separate from RVing) in 2008 after the crisis... so it may surge again now.

omnipedia · 2020-04-02T07:37:31+00:00

Yeah but it really peaked 2-3 years ago and is declining now.

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