First into the tank is what the Entrepreneurs believe is a more elegant Way to gift [Music] Hi I'm Sal I'm Alex and I'm David we're The owners of bouquet bar we're seeking Ten and that we're seeking 150 000 for 10 of our company Thank you very much It's not always easy buying a gift for Someone Take your moment think about the last Time you had to order a gift for a Family member friend or a co-worker were You happy with that purchase or did you Just wind up buying one of these gift Cards because you couldn't find what you Were looking for yes well we have a Perfect solution for that welcome to the K Bar an online gifting platform that Has taken flowers unique gifts combined It with amazing packaging for a whole New elegant way of gifting here's how it Works choose one of our designer gift Boxes then add the gift of your choice Whether it's lavender infused dark Chocolates organic tea Blends or Beautifully arranged flowers the Possibilities are endless with bouquet Bar add a custom note finishing touches To your gift box and send it to that Special someone so sharks who wants to Help us Out guys let's do some amazing treats
Okay We like treats don't we Kev a moment on The lips a Lifetime on the hips Lori you Know what what he always says that only Smells so good oh this is beautiful oh My God mine is huge yes no this is Gorgeous This is nice So that's a dozen roses that's a dozen Roses wow this is cool thank you how do I mix and match items so you come to our Site and you get three items in the Small box six items in the medium box And in a large box you get a large Bouquet of flowers and two smaller gifts So you select your box and then you mix And match whatever you want how many Different choices do I have we've been Actually out for only four months so the Products that we have right now we've Only been doing this for four months Four months yes candles chocolates Truffles we have about 22 screws and Plus the two bouquets that we have what About shipping this is heavy before they Attack you on the numbers it's okay We're ready How much does it cost to ship this Because it's heavy as hell right now That box gets shipped or with our Regional ship around 12 to 15 that's the Shipping glass that's the shipping cost This is quality stuff what is an average Uh cost of the small box to make with
Product and make the total cost both Labor and everything it's about uh 20 on Our small box we sell that box for fifty Dollars okay second box cost about Thirty four dollars to make all in we Sell it for 75 last box it's a it's 155 Dollars to make it 68 so how did you Guys get into this business yes thank You Alex and I have known each other for About 10 years we actually own a luxury Floral design company so I've I've been In a flower business for 25 years okay I Had my first flower shop at 19. Um I come from very humble backgrounds I Had nothing coming to this country as an Immigrant so flowers from where uh Iran Iran so um I came here to study my Parents just put me in a plane say Here's four grand Go to America how old were you when you Came over 15 and a half you were 15 and A half came by yourself yes I work at Burger King at night after school okay He has an immigrant myself nine years Old my dad was selling pizzas from a Motorhome sold ice creams and Parks you Name it I sold flowers on a corner Street I went to school by a chemistry Major minor in econ wannabe doctor make That proud I was volunteering at the Emergency room I'm pre-med I'm getting My degree older gentlemen came in all Bloody and everything I said you know What this is not for me I can't do that
So we came out with bouquet bar about Two years ago and one day we sat down we Said we're missing that right technology Person Sal's a good friend of mine known Him for years so my background is Digital media technology in my previous Job I co-founded a digital media company So for bouquet bar I'm in charge of all Marketing and all technology how much Revenue does your other business do About three million dollars annually Okay kitties getting a piece of that Business in this deal too well That's what you say So all of us me included have many many Gifting companies I'm in the wedding Business big time so let's just pick any One of them a Wicked Good Cupcakes the Number one issue of the business has Been for the last four years I've been Involved is customer acquisition costs How's it going to work the data is uh Our our custom customer acquisition is About sixty dollars we're using Utilizing Google you know so you're not Making anything at all now as of right Now Kevin we just launched revenues in The last four months let's get to the Numbers on sales close to a hundred Thousand dollars close to a hundred Thousand dollars How much are your money's in this Business six hundred thousand dollars Whoa wow
And what about any external money or Just your own money just just our own Money what was the money spent on 300 000 of it was spent on developing the Product coming out of the process Website operations right now I really Want to stress is that we have a 6 200 Square foot facility with a cooler we Have about three hundred thousand Dollars worth of inventory that will Translate to about a million to 1.2 Million dollars and and revenue we're Ready to scale what about the focus on The customer acquisition cost you've got To get it down to between 10 and 15 Bucks then yeah exactly that's that's What our goal is and that's going to Take a little bit of time well and now Who is your customer great good question Our customer right now is uh males and Females between 35 and 55 60 female and 40 males what we want here to tell you Is you know what we're going to teach People the gifts people are scared to Gift they don't know how to get so I Have to I have to call out the white Elephant for me in the room this looks Just like sugar Fina right sugar Phoenix Started off with a box like this and They fill it with different candies it's Sort of their trademark Wait wait when people Google search They're gonna find sugar Fina and They're going to find you and sugar Fina
Is less expensive so to me you need to Do something that is going to be Different you are flower experts yes but You've got to think of how are you going To beat it or be more unique or Different and we're already working on That Lori to answer that yeah sugarfina Does have candies we do we do have a lot Other stuff in in the play right now That I'm designing for the next lines to Me if you would come in with really cool Innovative different gorgeous floral Things and your price was great I'd be Going to you Lord there is though I love Your drive your passion and who you are But you haven't figured the business out Yet and for that reason I agree with Lori I'm very familiar with Sugar Fina as well I see the point of Difference you're going for which is the Mix of the candle and the bath bomb I Think that's going to be easy for Someone else to replicate your Background it's incredible you guys Should be very proud of yourselves but The point of differentiation is not big Enough for me to invest so I'm out I think the people that don't know their Gifting wrong don't know because when I Was single 10 years ago my girlfriends I Would always get them across ball a big Fishing pole I lost a girlfriend but I had to learn That the hard way and I think the area
That you need help is the area of Educating people that they don't know And I think that's going to be very hard Uh and it's going to cost a lot of money So I love this but I'm out Let's talk about some other markets the Wedding market for example if you look At the wedding Market billion dollar Market 3 billion no one here is Questioning the quality of this box it's One of the best we've ever seen on Shark Tank okay and it's one of those deals That's rare to me where I like a lot of It but not enough of it because I want To pour my 150 000 on the already solved Customer acquisition problem and blow it Up it's with heavy heart that I say I'm Out Okay now the Riff Raff's out of the way Okay you've obviously looked at Corporate gift selling you guys have Bigger businesses where you have sales People or is it all walk in These people so can those sales people Go out and sell and just work on a Commission from their side yeah yeah how Flexible are you to come up with Different designs because it seems like The flowers are the hammer and Everything else is the nail we're Innovative that way and I love I love to Design more stuff all right so getting Down to business 150k for 10 is not Enough why did you guys think 10 was
Enough I think our ask is is not that High Mark honestly what we'll do is have Valuation first number number one you Have to put three or four companies Together in order to create what we've Created We're gonna need more money But we also what are you going to need More money for and when I you know Basically in regards to like uh sales And operations and also Staffing the Whole point of being a virtual E-commerce company is that you don't Have to have a big staff and you can Outsource or you can virtualize a lot of It but you can get help to do that so Why would you need to spend a lot more Money I don't think I don't think a lot More money but you know what for for us Or is it because you have all your money For example no No it's just you got to spend so much More no no no we have a hundred thousand Dollars in the bank right now if I have To refinance my house if I have to put Into this company I will do what what I'm gonna do I get that right I get that But the thing is right now look we have Inventory we're ready to sell if you Come and say look guys I want you guys To put this product in here it's not Going to cost you that much expensive Because it's not that heavy let's ship It we can do that right now we're ready
We got the sales people to do it you Have the people to do it here All right I'll make you guys an offer 150 000 for 20 non-negotiable They need an answer Yes we're here All right all right Congrats guys congratulations [Applause] [Applause] Now we know what your wife is getting Exactly right It'll save me so much money on flowers You have no idea Should I call my dad I mean so much It's not about It's about living the dream You know people always say [Music] Work hard and you know what I was in the Tank And they're dropping off they're Dropping off And I always watch TV and when people do Something and I was like you know what Say this say that say that And I was in the tank and I said don't Give up don't give up whatever you say Don't give up now the hard work begins Before you go don't forget to subscribe To the Shark Tank Youtube channel and Click on that notification Bell to keep Up with everything that's bubbling in
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