Your Flavour Has An INTENSE Negotiation With Naomi | Shark Tank AUS | Shark Tank Global

First into the tank tonight is a young Entrepreneur with a very tasty Proposition I'm feeling way too excited I'm full of confidence right now And cannot wait to go in there and make Sure I spice up the Shark Tank [Music] Hello sharks this is Ace from Melbourne And I'm the founder of your flavor Seasonings and today I'm seeking for Eighty thousand dollars in return for 10 Of my company Sharks healthy eating is the most Important and vital aspect of life and It's great for mind body and soul in Australia our health food and supplement Industry turned over roughly 1.8 billion Dollars a year And still increasing by 10 to 15 percent Each year and yet we are one of the most Unhealthy nations in the world at your Flavor our goal is to keep seasonings 100 gluten free vegan paleo friendly Keeping low salt levels at the same time Making it more enjoyful funful and tasty Your flavor tasting brand is Australia's Only seasoning brand which makes onion And garlic free seasonings great for People who follow low FODMAP diet So sharks I need your help to take my Small home business to the next level And together we can give Australia a Reason to season thank you good job a Reason to season that's good okay Ace so

You're looking for eighty thousand Dollars for 10 of your business so You're valuing it at eight hundred Thousand that's correct yes okay so tell Us a bit more about the product yeah Great okay I'll bring some products over You start this in first no okay you can Give him two because Oh there you go So in total we have um eight flavors all Together it's been 15 months so far Since I've been running this as a Smaller home business and so far my Online sales are four hundred and fifty Five thousand dollars Go again say that again it's 455 000. I Like it after 18 months 15. uh just a Little over 15 months yeah So tell me your background why are you An expert in this area well roughly um End of 2014 me and a couple of my Friends we tried to go on a diet and by The fourth day I was hating my life Having broccoli chicken three times a Day four days a week is like torture I Know it is mental torture and I'm like You know what let's go find some flavors And see what we can flavor the Seasonings with I have nothing to do With seasonings or cooking in the past I Work in a corporate company and I Resigned to focus full-time on this good Man good man however I still have a Part-time job to keep my weekly expenses

On the go as I'm not taking any money From the business and what's up I work As at Kohl's as a retail assistant I Want to keep that because I just love The people I work with and I only work Saturday and Sundays Monday to Friday I'm full time on this business good Stuff you said you've got a home kitchen Or where is it being done all the Experiments happen in the initial phase In my kitchen right so what the mates Here must no no you have no idea how Angry my mum was oh so you live with Your mouth I live with my parents and She was on the verge of kicking me out Of the house The entire house smell like spices funny That did your mum help you she helps me All the time she's the best unpaid Worker ever like mum's Sweat Equity I Hope you're making 450 Grand why aren't You paying your poor old mum well she Helps me every all the time and you know I'll never say no to her for anything She's just proud of you absolutely I'm Dying to find out how much money you're Making on 450 000 bucks in yourself so Um I have netted 20 you've knitted 20 after after Everything after all the expenses 90 Grand so what would one of these cost on Average to make three dollars three Bucks what do you sell it for uh twenty Dollars online single bottles including

Shippings for this bottle yes that's Right but that including the community Keep a 90 000 bucks What's going on there I mean I'm sorry But if you if you're actually costing You three bucks you're selling it for 20 Yeah right And your net you're only netting 90. yes There's something something's not Something's not stacking up here Because I invest every single dollar Which I've made even from the profits Back in the business Marketing period in that 15 months for 450 Grand how much would you spend on Marketing anywhere between 175 000 to 200 000 so you'll you're spending a lot On marketing yes that's right yeah I teamed up with a social media Influencer for about barbecue flavor she Is a fitness trainer and she helped me Did social media marketing great Exposure for me great feels for me and She gets a reasonable cut for that she Has been great for me so why is your key To success I've seen as your digital Engagement and your social media Strategy Because that's impressive Ice your ice right I know someone had to Say it Um the um your product is really good I Really really like it thank you um I Think you've got great drive and your

Great passion Um I'm not I'm not going to say I'll be A customer sorry I'm a customer I just Bought some online so it's on its way Wow awesome you know can I just high Five you yeah come on high five look at That well done I am now a customer of Yours 100 you're amazing I'm not going to be so much amazing Because the competitive space is too big For me yes that's correct so for me for This one I am a customer but I'm out oh That's okay thanks for your time I mean there's already a lot of Competitors out there so the question is What's your competitive Advantage you Personally if we could sort of duplicate You and fly you all around the world and Bottle you and stick you on every stand That would be easy but we can't I mean I Love your enthusiasm I think you you've Got a good business going for yourself Here you should push the online space You need to really work on your margins And get your costs down yeah I wish you Well but I'm out thank you thanks for Your time So I so I'm not buying it mate you know Paleo is supposed to be back to the Caveman type diet and you're giving me a Fully processed product doesn't fit in The other thing you slapped on here is Vegan and I'm thinking let's just slap Paleo and vegan on this and see if we

Can get into the health food market oh Look at all the bloody paleo vegan rock That gets trumped in here and this is The first guy I give a hard time to give Me a break we see so many we see so many Compost balls coming here that are paleo Vegan God knows what else all this Protein rot you're doing really well Mate just don't listen to him at all all Right yeah I I'm still not buying the Health benefits Ace yep you lost me I'm Trying to convince me this is some new Health fad it's not so unfortunately for That reason I'm out thank you thanks for Your time Ice it's such a low buried entry Market Moment if you put this in the Supermarkets and you actually start Competing on price They're going to go yeah look uh this is Selling really well why don't we come Out with our own low garlic sugar onion Whatever it was yep and compete against Them they'll just they'll brand you out Look if I was thinking that that thing No they will do that no no trust me I Would never be at this point I'm gonna Do every time I'm looking forward to trying this at Lunch [Music] On mail Thank you thanks for your time One shark left

A red shark See The thing is there's not many barriers To entry So this is a land grab and what is Missing is your brand really what you Need more than anything is marketing Help yep But I'm also looking at who are you as a Leader as a manager and could I work With you Awesome Could I Or would I So I am going to make you an offer great But you're not going to like it Ice is seeking eighty thousand dollars For a 10 stake in his spice business Together we can give Australia a reason To season so far four of our sharks find The deal unsavory you need to really Work on your margins and get your costs Down yep only Naomi remains to make an Offer really what you need more than Anything is marketing help yep so I am Going to make you an offer great But you're not going to like it Ace the reason why I have to make you This offer is because of the risk the Execution risk and I do need to make Sure that we check everything from the Licenses of your commercial kitchen to Your trademarks yep you actually don't Have a background in food technology

Yeah look um you don't have to have a Background in something to come up bring It to the market to drive how many how Many juices did you saw before you start A boost none dead Roy so my offer is Eighty thousand dollars For 50 of your business oh Ouch fifty percent run scared eighty Eighty thousand for fifty percent Look I think Um so far I've worked quite really hard to get to This point and prove that there is a Market for it Giving away 50 just like that is Something no startup should do in the First and in the very early stages no Real investors should offer it either Mate So you're saying no well I would like to Counter okay And I would say Eighty thousand dollars For 25 percent And I will guarantee you your money back In the first 24 months if I don't you get 35 percent You got to be careful making those sort Of promises I agree that there's there's A there's a Minefield you'll be about to Walk through here right with that with That with that counter Ice I just need to talk to you about What you've counted okay yeah so you've

Said here's 25 but if it doesn't work Out I'll give you more now that is a Disincentive for me to grow your Business because I'll end up with more You see what you want from me as a Business partner is to grow your Business yeah so I want you to be in 10 000 retail outlets within 24 months but If I do that I'll miss out on my next 10 Percent so you've actually offered me a Dis incentive to grow your business yeah Okay okay so I'm going to pretend you Didn't say it yep okay okay because That's the way a partnership starts Right is looking after each other that's Right okay so let me repeat my offer to You which is 50 of your business for Eighty thousand dollars Yep okay so that is my offer Are you able to come down Any less than 50 as it's quite it's Quite high for me Um it's half your business and um so I Want you to think about how long would It take you to get into ten thousand Supermarkets how long would it take you Well it will take quite a few years is Speed to Market yeah and I want to get a Return on that time yeah but so she's Gonna let's face it like what were you Being often Riders an opportunity to get On red balloon right obviously I would never put this on red balloon That is

In the 10 000 supermarkets look at your Margins right now and understand what's Going to happen to your margins Understand why you make the best amount Of money 50 points is ridiculous yeah Right you can't do this for 50 points You can listen to him all you like I Have no intention of turning this into An experienced gift so that is not my Intention I'm talking about retailers He's out the only deal you've got is Hurt you've got to make a decision I'm Having a friend he's got by the sound of It as well so it's really up to you if You want to listen to him go right ahead But then the deal will be off the table I know what I bring to the market you Either want it or you don't and I've Talked you out of the other deal because There's a disincenter for me as a Partner yep Naomi would you accept eighty thousand Dollars for 40 percent And we will make it work 40 points And you know I came here with a concrete Offer not to go more than 25 percent And we'll stick their guns on Stick It 25 and put it back to it if it doesn't Work so I'll be back next year to pitch It to you and double the valuation you Finish Ace finish what you're going to Say ace I really think you can bring a Lot to the table and I I believe

Together if you work as a team 40 is a reasonable chunk From someone who is sort of proving the Point I would like you to consider that [Music] You have a deal That was nerve-wracking thank you so Much thank you so much Awesome Thank you thank you all right guys [Music] What a great great energy Finally it happened Wow

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