The Sharks Get Festive With Readyfestive | Shark Tank US | Shark Tank Global

first in the tank is a convenient way to get festive for the holidays hi sharks I'm Liz and I'm Christina we're from San Francisco California and we're seeking $250,000 for a 10% Equity stake in our company ready festive sharks we all of the feeling of a festive home for the many holidays and Seasons throughout the year we love the magic the memories the Traditions made with family and friends but shopping for decorations not so festive finding holiday and seasonal decorations for your home and your style can be a frustrating and overwhelming process many of us lack the time or the creativity to pull it all together and as soon as one holiday is over the next one is around the corner we need some help introducing ready festive ready festive is a customizable and convenient service delivering on Trend home decor for the holidays and Seasons you celebrate throughout the year here's how it works go to our website and choose your favorite holidays and Seasons select a mini standard or Deluxe box size next customize your decor and your ready festive box will be delivered right to your doorstep to help take your home from everyday to Holiday no more frenzy shopping trips or hours of scrolling required simply unbox and start decorating or as we like to say stress less and festive more sharks who's ready to flip this $25 billion industry on its head and deliver festive to every doorstep in America with us wow what do we have in front of us so each of you has a ready festive box in front of you to enjoy uh Mark we've curated a Hanukkah box for you today thank you Barbara we know that you love to host Thanksgiving so we have chosen that box for you Mr Wonderful America sweetheart we've chosen a Valentine's Day box for you since you have such a huge heart so true conf Lor Lori we've curated a Glam Halloween box just for you I love Halloween thank you these are bunnies we know you have two cute bunnies at home that love to decorate for Easter so you have an Easter box today oh thank you so the products in front of you are really representative of the the bread of products that we provide in all of our boxes what's this it's a table runner it's a runner what's the table what's the table runner it's a table runner so you lay it across your dining room table and then you can put decorations or candles why do they call it a runner cuz it runs down the middle of the table and why would you even do that why you just put it on the table to make it more festive do you get to choose what you want in your box and do you price it per box or per item so we allow our customers to customize in four different ways choosing their holidays and Seasons we have 14 options four um seasons and 10 holidays and we just require that you sign up for a minimum of three we have two payment options you actually can pay up front and save 10% or pay as you go which means you pay as your box ship you're trying to entice me into a subscription service it is isn't it yes to our customer we're a subscription service but really we see ourselves as the new wave of subscription because our service is completely customizable for our customer we're not a monthly or a quarterly box because that's not how you celebrate the holidays and Seasons how do you keep track then and have so much inventory because if I'm getting to pick from everything you have to pick and pack each thing right the beauty of our business is that it is customizable and so our customers are pre-ordering and we have a lot of data that they feel comfortable trusting us with and so with that data and constantly talking to them and serving them and the pre-orders we able to forecast very closely in we've actually scour the trade shows every season and we find the biggest Trends the biggest ideas and we curate usually three to four collections each holiday or season and Christina are you trying to hit a certain price point in that collection each and every time we are Barbara so our mini box is $69 our standard is $99 and our Deluxe is $159 plus shipping and really what we promise our customer is that the total retail value of the items in your box will be equal to if not greater than if you were to go out and shop for them yourself and then of course we've saved you the time and the hassle of doing that Christina this seems like a very complicated business potentially inventory potentially moving pieces what makes you guys qualified and experienced to run this business so um Christina and I like to say that we have very complimentary business backgrounds I bring the customer in the door and she gets them out the door so that's great that's great my background is primarily in marketing and sales I spent most of my corporate career working for one of the world's largest media and entertainment companies and so I really handle everything that's customer facing all of our marketing and social media and my background is in U merchandising and product development and I worked um for over 15 years at one of the world's largest retailers okay who um Gap in so guys now would the appropriate time to talk about sales sales yes we're waiting for you to ask I just did so we launched ready festive at the very end of 2019 so we're going on our third year in business and we've done over $1.5 million in sales life time today good for you good J can you walk us through year one year two year three so year one we did $250,000 in sales year two we doubled that and did 500,000 in sales and then this year we're tripling that obviously with 1.6 million in sales for 2022 and are you making money this is the first year that we're going to turn a profit how much are you going to make we're going to make 300,00 000 this year that's after paying yourselves we don't pay ourselves and what's your sales year to date our sales year to date $800,000 that's good what does it cost you to make it and what do you sell it for um our average box sells for $127 and cost us $75 to make so it's a 40% margin landed to the customer so you must know your customer acquisition cost our customer acquisition cost is $40 so um the average customer comes to us and gets 6 and boxes during their tenure uh they spend about $750 with us our monthly turn is about 5% so that would equate to our average customer stays with us for about 2 years so another way to look at that is how much is your prepaid Revenue right now so what we have committed is uh $800,000 in the door and then we already know for 2023 that we have close to a million5 but you haven't collected the cash some we have 85% pay as your box shipped okay so only 15% that's an amazing float if you could get to a float of 800,000 or a million up front that would be incredible let me get the ball started you guys have buildt a great business right and it's super cash friendly and I can see you grow to be you know $10 million in sales but that's just not a business that gets me excited this is not my thing so for those Reasons I'm out but congrats but you built an amazing business listen ladies I the part of the business that I'm uncomfortable with is how many holidays you have and how many SKS you have to keep stock and how your cash buying all that product has to be anticipated well it's too many excuse so I'm out thank you bar ladies I'm not sure it's worth 2 and a half million but and I was thinking do I beat them to a pulp on valuation even though I've got a little love sign in front of me you know it's it's um it's one of those deals where it's it's too small right now it's not for me I'm out so I don't really think that you need a shark I don't always say that when I I feel it though I say it honestly love what you're doing but unfortunately I'm out thank you well I don't agree with that because you've made me an amazing decorator look you've created a different push model to your customers which is really fabulous I love the holiday model and what I've learned um Tipsy else we started out with inappropriate ugly Christmas sweaters now we do every season the key to it is great operators there's inventory challenges there are stocking challenges the design challenges you need fantastic operators who live and breathe the business all day long you guys are great operators thanks Robert thanks Robert like you make me believe you're going to make this business happen thank you I'm going to make you an offer I love the holiday season and I think it's a bed on you guys I will give you the 250,000 for 20% 20% yeah thank you Robert thank you for that offer um at 20% that's going to value US below what we'll do in sales for this year so you like to counter you okay um would you do the 250,000 for 12% 12% just isn't enough for me Liz I mean yeah it may value you below the revenue but I I think it's more of what we can do with the money today and where we're going I built a $500 million business with a line of credit so I'm very good at making sure the money is being used wisely but I love you so much I'll come down a little bit okay you went up 2% I'll go to 18% let's go and decorate christas ladies remember bring Jo to the world remember the love remember the love thank you Robert okay one more counter offer robt okay how about 15% 18 how about 15 based on our forward looking run rate we're going to do $2.5 million in the next 12 months that feels very fair it is but this is the Shark Tank would you do 300,000 for 18% I'll do 250,000 for 18% look a year from now you're not going to look back and remember the 3% all right Robert You've Got A Deal got a deal to hug you you're even in Easter pastels I okay this is thank you every congratulations guys we gave away more Equity than we were looking for but Robert is going to be a great partner he has Tipsy Elves he gets the holidays he gets us and we know that we are going to do great things with him

Channel: Shark Tank Global

Views: 148,036

Keywords: Shark Tank, Shark Tank US, Shark Tank Australia, Kevin O’Leary, Barbara Corcoran, Daymond John, Robert Herjavec, Mark Cuban, Lori Greiner, Dragons’ Den, Money Tigers, Entrepreneurship, investment, reality tv, ready festive box, ready festive unboxing, robert herjavec ready festive

Id: XfVnvHQq1Po

Length: 11min 38sec (698 seconds)

Published: Tue Feb 13 2024