'Shark Tank' contestants miss out on $175,000 deal after getting their numbers wrong
"Shark Tank" is a platform for entrepreneurs to showcase innovative products through the most creative pitches, but even that doesn't guarantee a deal. During negotiations, sharks look at the numbers to figure out whether a business is worth their investment. But the co-founders of Eco Nuts, Scott Shields and Mona Weiss, lost sight of this fact and learned their lesson the hard way after they messed up a $175,000 deal. The creators of eco-friendly, nut-based cleaning products claimed by mistake that their company was a market leader and worth more than a million dollars. The sharks were quick to pounce on their mistake and push them out of the tank without a deal.
Shields and his partner/fiancée Weiss entered the Tank seeking $175,000 for a 15% share in their business. They pitched EcoNuts, a line of organic, all-natural soaps that harness the power of “soap berries” or soap nuts, sourced from the Himalayan Lychee tree. They claimed that their laundry detergent cleans clothes without harsh chemicals and acts as a natural fabric softener.
The co-founders shared that they did about $100,000 two years back and $250,000 in the previous year. With this, Shields claimed that they were the market leader, which is why their ask insinuated a $1.2 million valuation.
With the numbers laid out, the Sharks started making moves. Kevin O'Leary was the first to go out, saying he did not like the valuation. "It's just that your company today is not worth over a million dollars. It just isn't. You're not making enough money yet. You're not even married yet. For $175,000, I probably have to own all of this company right now. I'm out," he said. Daymond John soon followed suit, asking Sheilds about the numbers. This is when Weiss admitted that they made a mistake by claiming that the firm was worth a million dollars. "How do you not know the numbers, guys?" Herjavec interjected. Saying that they can't be getting the basics wrong, John dropped out as well.
On the other hand, Herjavec liked the business as he saw the potential for growth. However, since the couple got their numbers wrong, he asked for 50% of the company for $175,000. To this, Weiss took a jab at the shark, saying, "You better be working 16 hours a day on our business like we do for that kind of money." Herjavec hit back, saying, "Oh, no, Mona. I work 24 hours a day in my business, so I could have the privilege of sitting up here and listening to people like you. I'm out."
Mark Cuban, too, had a fallout with the entrepreneurs after slamming their packaging. Barbara Corcoran followed the footsteps of her colleagues but called the couple adorable and urged them to get married soon. Hearing this, O'Leary jumped in, saying, "I'm willing to do it today because I am Mr. Wonderful. Do you want me to marry you now?" However, the couple was out on that.
According to the Shark Tank Blog, Eco Nuts stayed in the market for several years after their episode aired, introducing more products. Unfortunately, the couple split up in 2015, and the company went out of business in 2022.
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