ScreenMend
DEAL
EPISODE SUMMARY
🕓 Air Date: October 11, 2013
Asking For:
$30,000 for 25%
Investor:
Lori Greiner
Deal:
$30,000 for 50%
PRODUCT SUMMARY
ScreenMend offers an innovative solution for patching screens quickly and effectively using a wax-infused patch.
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Background Story
ScreenMend, founded by Lily, Emma, and Brian Hooks, is a family-run business based in their garage. The idea for ScreenMend emerged during a routine chore when their mother tasked them with cleaning out the porch. While attempting to patch a hole in the porch screen using a self-adhesive patch, they encountered difficulties as it kept falling off. It was during this moment of frustration that Lily suggested applying wax to the patch, which surprisingly worked, keeping the patch intact for over a year. This simple yet effective solution sparked the creation of ScreenMend.
The Hooks family’s entrepreneurial journey began with their kitchen serving as the initial production space, where they crafted their wax-infused screen patches. With Brian leading the charge and Lily and Emma providing invaluable input, the family transformed their innovative idea into a marketable product. Their dedication and ingenuity led to the successful sale of 750 units, each priced at $6.95, demonstrating the product’s appeal and potential.
Despite facing competition in the market, the Hooks family believes in the superiority of their product, emphasizing its longevity and ease of use compared to traditional screen patches. With a keen eye for opportunity and a determination to overcome challenges, the family is poised to take ScreenMend to new heights. Their entrepreneurial spirit, combined with their unique product offering, sets them apart in the screen repair industry, positioning them for growth and success.
The Product
ScreenMend offers a revolutionary solution for repairing damaged screens quickly and effectively. The product consists of a wax-infused patch that adheres to screens with the application of heat from a hairdryer for 30 to 60 seconds. This simple process makes screen repair fast, easy, and hassle-free, eliminating the need for cumbersome tools or messy adhesives.
Ideal for repairing holes, tears, or punctures in window screens, door screens, or any other mesh surface, ScreenMend provides a durable and long-lasting solution. Unlike traditional screen patches that may peel off over time or degrade in adverse weather conditions, ScreenMend patches stay securely in place, even when exposed to rain, wind, or sunlight.
Customers can purchase ScreenMend directly from the company’s website or through select retailers. Each package contains multiple patches, allowing users to tackle multiple repairs with ease. Priced at $6.95 per unit, ScreenMend offers exceptional value for its convenience and effectiveness.
With ScreenMend, homeowners can save time and money on screen repairs, avoiding costly replacements or professional services. Whether it’s fixing a tear caused by pets, weather, or everyday wear and tear, ScreenMend provides a simple and reliable solution for maintaining the integrity of screens in homes or outdoor spaces.
How It Went
The company’s position before Shark Tank
ScreenMend has demonstrated robust performance and is positioned for growth in the screen repair industry. With a solid foundation established in their garage-based operation, the company has garnered significant interest from both customers and potential retail partners. ScreenMend’s partnerships include collaborations with retailers like Bed Bath & Beyond and Home Depot, indicating recognition and demand for their innovative product.
The company primarily sells its products directly to consumers through their website, leveraging online channels for sales and marketing. They have also explored retail opportunities, aiming to expand their reach and accessibility to a broader customer base. In terms of funding, ScreenMend initially relied on self-investment, utilizing revenue generated from sales to fuel business operations and growth. However, the company recognized the need for additional capital to facilitate expansion, leading them to seek investment from the Sharks on Shark Tank.
Financially, ScreenMend has demonstrated strong margins, with a low manufacturing cost of 31 cents per unit and a retail price of $6.95. The company’s structure likely revolves around the Hooks family, with Brian leading operations and Lily and Emma contributing to product development and marketing efforts. As they continue to scale their business, ScreenMend may consider expanding their team to support areas such as manufacturing, sales, and distribution.
The Negotiations:
During the negotiations on Shark Tank, the Hooks family received offers from multiple Sharks, each presenting different terms and value propositions. Mark Cuban made the first offer, matching the family’s initial ask of $30,000 for a 25% stake in the company. While this offer met their financial requirements, Lori Greiner expressed her desire to provide additional support and guidance, acknowledging the significant work required to grow the business. She offered the same $30,000 investment but for a larger 50% stake, emphasizing her willingness to take on more responsibility in areas such as manufacturing, retail placement, and marketing.
Despite the higher equity stake, the Hooks family ultimately accepted Lori Greiner’s offer, recognizing the value of her expertise and resources in helping ScreenMend achieve its full potential. By partnering with Greiner, they gain access to her extensive network and experience in product development and retail distribution, which they believe will accelerate their growth and success. While Mark Cuban’s offer aligned with their initial expectations, the family chose Greiner’s offer due to the added support and strategic guidance she offered.
The negotiation process highlighted the importance of not only financial investment but also the value of mentorship and strategic partnership in driving the company’s growth and success. By aligning with Greiner, the Hooks family secured not only the funding they needed but also a committed partner who shares their vision and is dedicated to helping them achieve their goals.
