Pricetitution Card Game
DEAL
EPISODE SUMMARY
🕓 Air Date: April 14, 2019
Asking For:
$100,000 for 20%
Investor:
Lori Greiner, Rohan Oza (50/50)
Deal:
$100,000 for 40%
PRODUCT SUMMARY
Pricetitution is an interactive game designed to bring people closer by guessing how much money it would take someone to do various humorous and challenging tasks without actually doing them.
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Background Story
Dan Killian, the 31-year-old founder of Pricetitution, brought a unique blend of psychology, improv comedy, and entrepreneurial spirit to the “Shark Tank” stage. After dedicating nine years to a successful job, Dan took a daring leap by quitting and returning home to his parents’ house. Embracing humor and relatability, he shared his story of trading a stable job for the pursuit of a dream. Inspired by everyday conversations among friends and family, where people pondered the price they would pay for various challenges, Dan conceived the idea for Pricetitution.
Recognizing the universal nature of these discussions, he saw an opportunity to turn them into a game that could foster connections and laughter among players. The concept involved guessing how much money it would take someone to undertake amusing and quirky tasks, all without the actual execution of those challenges. Dan’s background in psychology and improv comedy likely played a crucial role in shaping the interactive and social nature of Pricetitution. These experiences equipped him with a keen understanding of human behavior and the ability to create an engaging and entertaining game that taps into shared experiences.
Moving back home with his parents was not just a personal decision but also a strategic one, as it became the backdrop for his pitch on the show, adding a humorous touch to the presentation. As the sharks probed into his background and the motivation behind the game, Dan’s charisma and quick wit shone through. The relatable nature of his journey and the universal appeal of Pricetitution created a compelling narrative that resonated with both the sharks and the viewers.
The Product
Pricetitution is an innovative and interactive party game designed to bring people together through humor and shared experiences. The game revolves around guessing how much money it would take individuals to perform various entertaining and sometimes absurd tasks, without actually requiring them to carry out those challenges.
The gameplay is centered around a deck of cards, each featuring a unique task or scenario. One player becomes the “Pricetitute” for a round, drawing a card and reading the task to the group. The remaining players, referred to as the “Sharks,” then attempt to guess the Pricetitute’s lowest acceptable dollar amount to perform the task. The Pricetitute also privately writes down their actual minimum amount. The player with the closest guess earns a point for that round.
Pricetitution is not just a game; it’s a social experience that encourages laughter, conversation, and connection. The scenarios on the cards range from humorous to daring, sparking lively discussions and revealing unexpected aspects of participants’ personalities.
The game is priced at $21.99 per unit, with a production cost of $3.09. It can be purchased through various channels, and during the pitch, Dan mentioned that he had initially focused on direct sales with a successful Kickstarter campaign. The product’s humorous and relatable nature, combined with its ability to serve as an icebreaker in social settings, positions Pricetitution as a versatile and entertaining addition to gatherings and parties.
How It Went
The company’s position before Shark Tank
During the pitch on “Shark Tank,” Dan Killian provided insights into Pricetitution’s performance, partnerships, and its current position in the market. The company’s health and standing were discussed, shedding light on key aspects of its journey. Sales for Pricetitution amounted to approximately $40,000, with a focus on direct sales, including a successful Kickstarter campaign that contributed to early traction. The founder mentioned receiving interest from major players in the industry, notably the world’s largest toy and playing card manufacturers. However, he turned down licensing offers due to unfavorable terms, including high subscription costs and restrictive exclusivity clauses.
Partnerships were briefly touched upon, with Dan mentioning interest from the largest toy manufacturer and playing card manufacturer globally. Although these deals did not materialize, they underscored Pricetitution’s appeal to industry leaders. Regarding the company’s financials, the production cost per unit was disclosed as $3.09, with a retail price of $21.99. Dan spoke about exploring licensing opportunities and mentioned his decision to decline an above-average advance offer due to unfavorable terms, such as perpetual exclusivity without guaranteed minimum sales.
The founder shared that Pricetitution had been structuring the business to focus on licensing deals and expressed a commitment to driving the game’s success in the market. The funding landscape of Pricetitution was not explicitly outlined, but Dan indicated a focus on licensing offers as a potential avenue for securing capital and expanding the business. The pitch did not delve into the company’s current structure, existing partnerships, or available capital in great detail, leaving room for further exploration as the business evolves beyond the “Shark Tank” appearance.
The Negotiations:
The negotiations for Pricetitution on “Shark Tank” unfolded with multiple sharks expressing interest and making compelling offers. Lori Greiner and Rohan Oza jointly offered $100,000 for a 40% stake in the company. Simultaneously, Barbara Corcoran proposed a 50% deal contingent on taking the game entirely online, emphasizing the potential of an online model. Mark Cuban made a straightforward offer of $100,000 for a 50% stake.
After initial considerations, Dan Killian, the founder, engaged in a brief negotiation. Expressing gratitude for the offers on the table, he inquired if any of the sharks would be willing to come down by 5% on their equity ask. The suggestion was based on the premise that, given the anticipated success, the impact of a 5% difference would be negligible in the long run.
Lori Greiner and Rohan Oza accepted the negotiation, agreeing to lower their equity stake from 50% to 40%. This adjustment sealed the deal, and Dan enthusiastically accepted their joint offer of $100,000 for a 40% share in Pricetitution. The negotiations showcased the sharks’ belief in the game’s potential and their willingness to adjust terms to secure the deal. The collaborative offer from Lori Greiner and Rohan Oza, with the modified equity percentage, resonated with Dan, and they celebrated the agreement together.
