Every home needs a gnome, according to this entrepreneur. On
Shark Tank Wendy’s Gnome Shop Update
- Entrepreneur: Wendy Hoffmeister
- Business: Decorative holiday gnomes
- Ask: $200,000 for 20% equity
- Result: $200,000 for 30% equity
- Shark: Daymond John
Wendy Hoffmeister came into the tank with a proven business model. Her Etsy page had made $688,000 in sales in the last 18 months. Her decorative gnomes were taking the internet by storm, and she quickly became the top gnome seller on Etsy.
The gnomes she presented were furry decorations with holiday themes — year-round holidays included. These cute little guys could even be customized. They sold for $35 on Etsy and her website, and only cost about $3.50 to make.
While the sharks seemed to agree that the gnomes were cute, Kevin O’Leary was the first to weigh in. He was amazed by the concept and that people were buying gnomes in droves. He respected her sales numbers, and how she persevered to turn her hobby into a business. However, it wasn’t for him, so he went out.
Lori Greiner followed. It wasn’t the right business for her, though she thought the gnomes were cute. Mark Cuban had similar feedback. Gnomes were a niche category and he didn’t want to invest, so he dropped out.
As a response to the other sharks dropping out, Daymond John wondered aloud how he could add value to this business.
Wendy explained that she needed a partner for help with marketing, SEO, and business strategy. Daymond said he could do that for her and offered $200,000 for 35% equity.
Before Wendy could reply, Barbara Corcoran also made an offer. She offered $200,000 for 30% equity, plus a $1/unit royalty in perpetuity. She urged Wendy to move her business off of Etsy since most of the profits went to fees.
With both Daymond and Barbara interested, they quickly began to undercut each other. Daymond revised his offer to 30% equity but included a $0.50/unit royalty until $200,000 is paid.
Barbara immediately dropped the royalty from her offer, which prompted Wendy to ask Daymond if he would drop his royalty as well. He agreed, leaving Wendy with a tough choice between Barbara and Daymond.
In the end, she decided to go with Daymond. Was this a great match for the company? Keep reading our Wendy’s Gnome Shop update to find out.
Wendy’s Gnome Shop has thrived after appearing on the show. You can purchase some pre-made gnomes through Etsy, but most of her sales are now on her website. Following the show’s air date, she featured a
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