Echo Valley Meats
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 5, 2013
Asking For:
$300,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Echo Valley Meats specializes in delivering high-quality meats from farm to tables nationwide, focusing on old-fashioned butcher shop quality.
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Background Story
Echo Valley Meats, founded by Dave Alwan, originates from a family deeply rooted in the meat business for three generations. Dave, a cattleman and farmer, grew up immersed in the industry’s nuances, learning the ins and outs from conception to consumption.
The idea for Echo Valley Meats stemmed from Dave’s desire to share his passion for top-quality meats with others. Based in Peoria, Illinois, Dave embarked on a decade-long journey of grassroots marketing, personally delivering sample boxes to local businesses to showcase his exceptional products.
The Product
Echo Valley Meats offers a range of premium meats, including beef tenderloin, hickory smoked beef brisket, ham, and award-winning summer sausage. Their meats are renowned for their exceptional taste and quality, slow-roasted and prepared with meticulous care.
Customers can purchase Echo Valley Meats products through their retail store in Peoria or via mail order. Despite offering products at a 42% lower price than competitors, Echo Valley maintains a commitment to superior quality and taste.
How It Went
The company’s position before Shark Tank
In the past year, Echo Valley Meats achieved $1.25 million in sales through retail, catering, and mail-order channels. However, despite the substantial revenue, the company’s net profit was only $20,000. Dave attributes this narrow profit margin to the high costs associated with customer acquisition and maintaining operational overhead. Despite the low-profit margins, Echo Valley Meats operates with all equipment fully paid for, including a quarter-million-dollar smokehouse and a $150,000 sausage stuffer.
The Negotiations:
Despite offering a delicious product, Dave’s lack of preparedness regarding the company’s marketing strategy and customer acquisition costs led to no deal. The Sharks expressed concerns about the scalability of the business and the uncertainty surrounding the effectiveness of investing $300,000 solely into national marketing efforts. Dave’s failure to provide a clear plan for utilizing the investment ultimately resulted in all Sharks passing on the opportunity, despite their appreciation for the quality of Echo Valley Meats products.
