Christmastime is the hardest time of year to be a Jewish child. From the songs on the radio to the decorated stores, Jewish children can feel left out. That’s why Neal Hoffman created a Hanukkah themed company that is looking to evolve into a brand during the holiday season. Will the sharks offer him a deal on
Shark Tank Mensch on a Bench Update
- Entrepreneurs: Neal Hoffman
- Business: Hanukkah gifts for children
- Ask: $150,000 for 10% equity
- Result: $150,000 for 15% equity + Guaranteed Payback of Money within 3 Years
- Sharks: Lori Greiner and Robert Herjavec
Neal entered the tank with a humorous presentation of his Mensch on a Bench line of Hanukkah giftware. He explained that his kids wanted an Elf on the Shelf when they saw it in the store. After explaining to them that they don’t do that because they were Jewish, he came up with the idea for Mensch on a Bench. His educational, holiday line is great for kids, teaching them about Hanukkah and all of its traditions.
A single unit costs $7.45 and Neal is capable of selling them at a price point between $29.99 and $34.99. These margins are not only reasonable, but they’re also actually quite good and the sharks wouldn’t harass Neal about his margins for very long. They were more concerned about the risk that would be required for inventory on a seasonal basis.
Neal told each of the sharks that his company would likely reach $930,000 in gross sales and net a profit of $250,000. He also told the sharks a lengthy list of stores that his products would be located in, including Bed Bath & Beyond, Target, and Barnes & Noble.
Kevin O’Leary felt like the company was not really investable and thought that it was more of a hobby rather than a brand, so he dropped out. Mark Cuban also decided to go out for similar reasons.
Robert Herjavec and Lori Greiner decided to team up to make an offer. It was three times lower of an imputed valuation than Neal came in asking for from the sharks. Their offer was $150,000 for 30% equity, which almost seemed to be disappointing for Neal because he believed his company was worth about three times more than that offer. Neal decided to counteroffer with $150,000 in exchange for 15% equity plus a personal guarantee that he would repay the money within three years.
Barbara Corcoran politely interrupted because she claimed to have an even better offer for Neal to consider. Barbara decided to offer $150,000 dollars in exchange for 20% equity, although she had a contingency of re-writing the book and re-designing the toy.
Just as Barbara had finished explaining her offer, Robert and Lori agreed to accept Neal’s counter-offer. What became of Neal’s company? Keep reading our Mensch on a Bench update to find out!
The future remains bright for Neal. Research for our Mensch on a Bench update revealed that the company continues to generate millions of dollars in annual revenue. New products for the Jewish community are continuously being developed and launched on a seasonal basis. Several products through the line can be purchased online through the Mensch on a Bench website and on Amazon.
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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!