Randy Rothfus and Jennifer Sullivan were two creators that wanted to bring their drinkware company, Guzzle Buddy, on
Shark Tank Guzzle Buddy Update
- Entrepreneurs: Randy Rothfus and Jennifer Sullivan
- Business: Drinkware / Glasses
- Ask: $400,000 for 10% equity
- Result: $400,000 for 25% equity
- Sharks: Daymond John
Jennifer and Randy told the sharks that they had only been on the market for about ten months and had already generated more than $1.4 million in gross sales. The sharks were wildly impressed with those sales numbers and wanted to hear more. The company had generated about $320,000 in net profits from lifetime sales to date.
A single unit costs about $3 to manufacture and is currently sold at a price point of $24.99. These margins were very impressive to the sharks. Some of the sharks still had concerns about the implied valuation that Randy and Jennifer had placed on their company. Mark Cuban was the first shark to drop out due to the valuation. Daymond John quickly dropped out as well because he believed that he could not provide value to the company.
All of the remaining sharks dropped out except for Lori Greiner. She wanted to give the entrepreneurs a chance to make a fair offer to her with an opportunity to make the valuation a little bit more realistic. Randy and Jennifer told the sharks that they would be willing to do $400,000 for 20% equity, but Daymond responded and jumped in to say that he would do it for 25% equity. Jennifer and Randy quickly accepted.
Our Guzzle Buddy update is exciting because the company continues to generate about $2 million per year in gross revenue. A new plastic version of the product is now available as the company continues to come up with new ideas for its product catalog. The future seems bright for Guzzle Buddy as they look for new ways to build on the momentum that they have already generated from being on
You can find the other company updates from Season 9 Episode 18 here:
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