'Shark Tank' contestants made $2 million selling ice cream — but still failed to impress judges

The entrepreneurs might have hoped that a third of their company would attract a shark, but it didn't.

PUBLISHED 2 HOURS AGO

Screenshots showing Kevin O'Leary and the entrepreneurs on "Shark Tank" (Cover Image Source: YouTube | Shark Tank Global)

Even after impressing judges with a pitch on "Shark Tank," sales figures are what matter the most when it comes to convincing them to make a deal. But sometimes, even a high revenue figure isn’t enough for the sharks. One needs to have a good margin of profit and a clear vision to make the business successful. Those were the things that a couple who founded an ice cream startup didn't have, and that's why they left empty-handed.

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Abby Jordan and Becky App sought $250,000 for a third of their business (33.3%), eCreamery. It was an ice cream company, but it doesn’t market the beloved dessert in the traditional way. Instead, the company portrays ice cream as a gift item that could be given on various occasions. These ice creams are personalized by the buyer in line with the taste and preferences of the person they’d be gifting it to.

Customers could even name the ice cream in a way that felt personal to them. However, this ice cream was far more expensive than regular ones. A customer has to pay close to a whopping $80 for just four pints of ice cream. That’s a lot, but Robert Herjavc pointed out that if it were seen as a lifestyle product, the price would not be too high.

Screenshots showing the product. (Image credit: YouTube | Shark Tank Global)

Asking for a $750,000 valuation, the entrepreneurs revealed that they had generated $2 million from sales since their inception. They also claimed to have recorded a revenue of $750,000 in the year prior to that. However, when asked how much profit they made on that, the entrepreneurs revealed a small figure of $60,000. They claimed that the margins were 60% and the reason for the profit being so low was that they had invested heavily in improved production facilities in the year of taping.

The company did not just to sales online, but had a brick and mortar store as well. However, when Barbara Corcoran asked if they’d be more profitable without the store, they said yes. All of the sharks except one decided against offering a deal to the entrepreneurs.

Screenshot showing Barbara Corcoran. (Image credit: YouTube | Shark Tank Global)

However, that one shark was Kevin O’Leary, who is not known for cutting an easy bargain. He was interested in the product and said that he’d pay $125,000 for 25%. While he asked for less equity, he cut down the money by half, and the entrepreneurs took too much time to decide whether to take it or not. As a result, in the end, Mr. Wonderful lost his patience and withdrew the offer.