Hire Santa Update | Shark Tank Season 10
Entrepreneur Mitch Allen, pitched his company Hire Santa, during
If you’re short on time, here’s a quick overview of what happened to Hire Santa after
Mitch Allen appeared on
| Shark: | Result: |
| Barbara Corcoran | Accepted deal for $200,000 for 50% equity until money made back, then 10% equity in perpetuity |
| Kevin O’Leary | $200,000 for 50% equity, until money made back, then 15% equity in perpetuity |
| Daymond John | $200,000 for 50% equity, until money made back, then 15% equity in perpetuity |
| Lori Greiner | No offer |
| Mark Cuban | No offer |
Shark Tank Hire Santa Update
- Entrepreneurs: Mitch Allen
- Business: Santas for hire
- Ask: $200,000 for 10% equity
- Result: $200,000 for 50% equity until money back, then 10% equity in perpetuity
- Sharks: Barbara Corcoran
Mitch Allen is the founder of Hire Santa, and he started his company to help spread Christmas cheer. His company essentially hires out Santas to malls, and various events during the Christmas season.
Daymond John asked Mitch how he got into such a unique business. Mitch shared that he began playing Santa at a friend’s party, and he was touched by the way that it brought joy to the kids.
Overtime, he became very successful playing Santa, even appearing in tv commercials, and some of the biggest parades in the world. Eventually, he decided to put his efforts into outsourcing Santas as a business.
Since Hire Santa is basically a holiday entertainment business that involves deploying a Santa to a number of different types of events, Mitch did his best to explain the different scenarios and pricing structures that his company uses.
He told the sharks that individual visits from a Santa could cost about $300, while longer-term holiday season bundles could involve larger payments on an hourly scale. These hourly rates can generally be around $50 to $60 per hour, and partnerships can involve retail stores, malls, and other similar venues.
With some solid sales numbers from the previous years, sharks were certainly interested. Mitch told the sharks that his company was on pace to easily do over $1 million in revenue in the current year, while potentially doubling in the following year if growth expectations continue at their current rate.
This comment from Mitch certainly caught the attention of all five sharks. The pitch seemed to be going well early on, but some bad news awaited Mitch and his company.
The first shark was about to drop out of the negotiations and it was going to be Lori Greiner. Simply stated, she didn’t believe a consistent revenue stream was possible with Hire Santa.
Mark Cuban said that at the end of the day, Hire Santa is just a staffing business. Because of the competitive nature of the industry, he decides to drop out.
Daymond John loves the business concept, but it’s not for him. For this reason, he’s out.
Barbara Corcoran doesn’t like the short season to make money. Further, she doesn’t think there’s room for an investor, so she’s out too.
However, Kevin decided to offer $200,000 for 50% equity. Mitch then realized that he wanted to make a counteroffer to Kevin’s original offer.
Slightly offended by Kevin’s offer, Mitch counters him with $200,000 for 15% equity, but Kevin is not interested. Before he can counter, Mitch counters again with $200,000 for 50% until his money is made back, then the equity drops to 10%.
Kevin is intrigued, however he changes the equity once his money is recouped to 20%. Before Mitch can answer, Daymond swoops in and says he would do the last deal that Mitch suggested.
Then, Kevin says he’ll do the deal at 15% equity, and this causes Daymond to say he’ll also do it at 15%. Mitch tries to get Daymond to drop to 10%, with no success.
Just then, Barbara swoops in and says she’ll do the deal for 10%, and in a shocking turn of events, Mitch accepted Barbara’s offer. They ultimately agreed on $200,000 for 50% of company profits, until she made her investment back, and then 10% equity in perpetuity.
Do you think Mitch’s company found success following
Now let’s look at the Hire Santa update after
Check out the Hire Santa website, where Santa personalities can find jobs. You can also order a personalized video message from Santa.
Now that Mitch and Barbara have teamed up, the company is generating millions of dollars every single year. So, the future seems bright for Hire Santa, even though their profit window is so narrow during the holiday season of each year.
If we learn anything new about Hire Santa, we will certainly let you know. In the meantime, you can check out our other company updates from Season 10 Episode 7, by following the links below!
For even more on companies and products, be sure to stop by our Season 10 products page!
Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!