The Sharks Are Uneasy On Investing In Easy Treezy | Shark Tank US | Shark Tank Global

First in the tank is an easier way to Decorate for the holidays [Music] Hi sharks I'm Christmas Kurt Chief Artificial Christmas tree Farmer at easy Treasy the world's easiest Christmas Tree now I know it's Christmas but where Are all the decorations for the tank Mark did you forget to put up the tree Again always maybe all we need is a Little Christmas magic does anybody know Any elves Oh there they are the easy trees the Elves I bet they can help let's turn This tank into a holiday masterpiece Easy treasy was invented to solve the Headaches of putting up an artificial Christmas tree our trees are extremely Light and go up extremely quickly all by Yourself our memory wire patent-pending Cone technology features an industry First electromagnetic lighting system Securely snaps together and instantly Illuminates the lights Wow now let's talk decorating we have a Designer collection that ships Completely decorated right out of the Box all the ornaments attached sets up In under a minute and you are done with Your Christmas tree love to decorate With those cherish ornaments you've Collected over a lifetime no problem Easy treasy has a natural collection That allows you to decorate the trees

Any way you like and what's best is once You attach the ornaments you can Actually store them attached so that Next year they're ready to go wow wow Now what's the worst part about the Holidays when they're over and we have To take everything down lucky for us With easy trees it goes down as fast as It went up and conveniently stores hung In closets under beds or laid on shelves Thanks to our lay flat technology wow Now our tank looks like a cozy holiday Home and I haven't even had enough time To tell you how much money I want So about that I'm looking for 400 000 for 10 of my Company to help put an easy treesy in Every living room across America Now we put out some hot cocoa for you It's a special cocoa to help loosen up Your wallets yeah What does this Tree sell for right there Uh this one will sell for 7.79 a tree Like this that's undecorated will be Your lower price point at 5.99 and then Barbara you had an investment in this Space yes is that a lot for a tree well The modern Christmas tree that's been Selling so well really so that's a good Report card for you uh they sell for Roughly 600 to 800 vastly different Opposite very modern these are Traditional it's a different customer Base I'm sure it is well the value here

Is the Simplicity right the fact that it Takes no time to set it up takes no time To tear it down the question is where Can I buy it at 10 p.m on Christmas Eve Uh well so we're in Big Box retail we Are in a store called at home it's 210 Locations across the U.S so getting back To the price point our treason at home Are actually retailing for 2.99 smaller Tree smaller same size tree but Different quality of tips different Quantity of Lights what we can do here And we've started to work with other big Box retailers on is we can take a price Point people want to hit and we can Engineer a tree But the reason what are your margins on That at 299 dollars so we have about a 35 margin to them right now we will Drive that margin up slightly with with Volume Kurt tell us about yourself I got To know how you came up with this I'm From Wisconsin originally uh very rural Town so we had forests right behind our House and when Christmas came we'd go Out and chop down a Christmas tree and You know I just always loved the Christmas holiday it was very important To me a lot from my mom she ended up Getting a disease called Scleroderma When I was in high school and I got to watch her unfortunately kind of Deteriorate and she eventually passed Away in 2009 sorry so you know the

Holidays were so special to her that she Couldn't and any longer go out and cut Down that Christmas tree and haul it in And do the whole live thing so one of The things was how do I make a Christmas Tree that a single person can put up Because regular Christmas trees are very Very heavy this was always in my head is How do I fix this problem Tell us about your sales 2018 we did 605 thousand dollars this Year we're projected to do 2.2 million Wow so if you're only selling in the 210 Stores for 299 each what percentage of Your sales are there and what other Platforms are you selling on that Percentage of business is about 15 of Our business just 15 to retail yes we do A big business through Amazon as Everyone knows it's kind of the Beast And then we do have a great direct to Consumer through our own website what Percentage is direct the consumer uh About 50 okay so how much money have you Raised how much have you put in yourself A lot and how much debt do you have no Debt but I'm all in man that sure sounds Like it so you've raised no outside I Haven't raised any money so much have You put I'm self-funded uh about 500. That's hard money to put into any Business I know I tell my sister sometimes I feel like You know I'm at the casino table on

Blackjack the Dealer's showing the six And you've got the the 11 here and you Got to double down and I've taken like Is out there everything's there all Right let me push a couple of buttons Here on price I'm in this space with a Deal called geek my tree we provided the Lighting for a lot of Manufacturers yes And I learned all the price points Selling a tree for over 200 is really Hard yes so I'm assuming these 600 trees That you're selling premium Market Direct to customer yes no retailer is Going to touch that no so how is it that You think you can get to 2.2 the whole Purpose of the design right so last year It was really data collection so we Learned what the customers who the Customer is how they interact with the Website well you're doing Facebook ads Instagram ads we tested Instagram Instagram Facebook were okay Google Performed the best so how much are you Going to spend on digital advertising For this season uh we have budget about 120 000. that's it that's it Look I want to tell you something I'm Actually related to Scrooge he's my Uncle and I tell you what's going to Happen here you are going to be very Disappointed in how few you sell at that Price above 299. Nobody is going to pay you 700 for this

Tree it's not going to happen I hate this business I'm out thank you Kevin that's right Kurt who does your digital advertising For you right now we have a contractor That does it down okay to me that's the Problem your whole business is dependent On your best skill being your digital Advertising abilities well if I can so We presented this tree to Home Depot in Early 2018. we were actually invited to Their plr in China they gave us a verbal Commitment for 70 000 units which came In right around like eight and a half Million dollars You didn't think it was relevant to tell Us I was getting there I've had a lot of Questions so we had the verbal Commitment so what happened is at that Point you know the mold was very Expensive to make what we presented to Them was actually like a handmade sample Because we were still trying to get that Developed so they look at that and they Don't have the confidence that we can Ship 70 000 units but now I have data That I can go back to Walmart Lowe's Home Depot what I'm saying is the most Profitable part and the greatest upside Of your business is what you sell direct To Consumer the key to being successful There is being a great digital marketer I didn't get a sense of confidence that You really have that under control so

For those Reasons I'm out You know I'm curious about a couple of Things you mentioned that you had a Problem with Home Depot did you go back To that store and resell them again After you solve the problem well we've We've been in contact with them Throughout we still stay in touch and Give them updates sounds like a relative You don't really want to see well you Know we want to see them but we want to See them when we're right still this is What's bothering me you had an eight Million dollar order that you let lie There a while we'll get them back don't Worry we'll get a million dollars I pay A lot of attention eight million dollars I'm out Listen your price point is too high I Don't think it's the right deal for me So I'm sorry I'm out Okay then Robert what are you gonna do Kurt I love the uh business Aesthetically I think it's beautiful and I love the reason you started the Company because I think as a deeply Personal meaning to you but to me this Business is worth about a million Dollars for me to give you four hundred Thousand I would need to own forty Percent of it I don't think you with Your shiny hat are going to entertain That I mean a million dollar valuation Is it's a gamble you're in a very is

That an official offer by the way Got me if you're willing to entertain That offer I'm certainly willing to make It 400 000 for 40 percent I mean you know I understand the risk Um that you're facing certainly editing Life is Unpredictable except for death and taxes Would you be at all flexible to come Down on the percentage to say you know 20 for 400 thousand dollars I mean that's giving me a two million Dollar evaluation Kurt I think you're learning a lot I Think Mark made the point I wish you had More digital marketing expertise but You're learning that you'll get there no One's born great at something you learn It along the way you know it's better to Hire experts than to do everything Yourself you know we want to make sure That we get that always true best person When you start a business you got to be An expert up what makes your business Grow and sell but the reality of the Situation is I am the only shark that's left I know [Music] Kirk what are you gonna do [Music] What's right for you I would be willing to do the deal at 25 Percent I wouldn't it's it's how I see the deal

And how I've equated and baked in the Risk 400 000 for 40 percent Yes I don't I can't accept that offer I Said my business I can respect that I still hate you but I can respond congratulations my history It was a clever idea good luck thank you Luck I wish we would have landed a deal but You know life goes on and easy treasy Will evolve and live and again we'll be In every house in America at some point I thought it's pretty you have to like a Skinny tree Oh my God Robert You break it you buy it Robert Dive into the Shark Tank Youtube channel And subscribe now

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