PC Classes Online
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 9, 2012
Asking For:
$150,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
PC Classes Online offers online technology classes specifically tailored for individuals over 50 years old.
WATCH HERE
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Background Story
David A. Cox, CEO, and founder of PC Classes Online, had an epiphany while teaching basic computer classes to a predominantly over 50 audience in Cape Cod, Massachusetts. Recognizing the demand for technology education in this demographic, Cox founded PC Classes Online to cater to the needs of older adults.
The idea stemmed from his experience managing an Apple computer dealer and observing the popularity of his computer classes among older individuals. Cox’s aim was to bridge the technology gap for baby boomers and older adults, realizing that there was a significant demand for someone who could teach technology to this age group effectively.
The Product
PC Classes Online offers a subscription-based service priced at $199 a year, providing access to a variety of online technology classes. The classes cover topics ranging from basic computer skills to more advanced software applications like Photoshop.
The platform also includes newsletters listing class schedules and offerings. During the pitch, Cox demonstrated how the service works by showcasing an example where a user, portrayed by Bruce Vilanch, learns how to use Photoshop to edit photos.
The company’s strategy involves partnering with computer and gadget retailers to bundle their service with hardware sales, offering retailers a 100% markup. By doing so, PC Classes Online aims to increase both its and the retailers’ profits.
How It Went
The company’s position before Shark Tank
 PC Classes Online, at the time of the pitch, had been in existence for six months and boasted 115 members, generating approximately $35,000 in revenue. The company’s revenue model relies on partnerships with retailers and leveraging volunteer teachers who earn a commission from private lessons they secure after teaching a class. However, the company faced skepticism from the Sharks regarding its valuation of $1 million, especially given its modest sales figures and lack of a clear differentiation strategy.
The Sharks expressed concerns about the company’s ability to scale, as well as its understanding of fundamental business concepts like bundling and pricing strategies. Additionally, the Sharks questioned the feasibility of Cox’s plan to bundle the service with hardware sales on a large scale, pointing out logistical challenges and a lack of infrastructure to support such expansion.
The Negotiations:
Despite Cox’s passion and humor, the Sharks unanimously opted out of investing in PC Classes Online. Mark Cuban highlighted the company’s failure to articulate a clear strategy for targeting its demographic and differentiating itself in the market.
The Sharks raised doubts about the scalability of the business model and expressed concerns about Cox’s understanding of fundamental business concepts. Ultimately, Cox left the tank without a deal, but he remained optimistic about the potential for live technology classes for older adults, acknowledging the need to refine his approach and gain traction in the market.
