The Smart Baker
DEAL
EPISODE SUMMARY
🕓 Air Date: March 2, 2012
Asking For:
$75,000 for 25%
Investor:
Barbara Corcoran
Deal:
$75,000 for 40% + 5% royalty until repaid
PRODUCT SUMMARY
The Smart Baker offers innovative baking tools such as the Cheat Sheet Apron, pre-cut parchment paper, and reusable cupcake and treat towers, designed to simplify baking processes and eliminate common challenges faced by home bakers.
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Background Story
Stephanie and Daniel Rensing, a married couple, founded The Smart Baker with a passion for baking and a desire to streamline the baking experience. Stephanie, previously an elementary art teacher, lost her job, prompting her to focus full-time on their business. Their journey began in their garage, where they developed the Cheat Sheet Apron to address the common struggle of scaling recipes and converting measurements for smaller batches.
This product quickly gained traction online, leading to the expansion of their product line to include parchment paper and reusable baking towers. Their dedication and innovative solutions have propelled The Smart Baker to significant sales growth, despite facing challenges such as Stephanie’s recent job loss.
The Product
The Cheat Sheet Apron is a unique apron with baking measurements and conversions printed upside down for easy reference while worn. The pre-cut parchment paper comes in flat sheets tailored to fit common baking pans, featuring lift tabs for convenient handling.
The cupcake and treat towers are reusable and washable, made of durable PVC, offering a sustainable alternative to disposable cardboard towers. These products cater to both novice and experienced bakers, enhancing convenience and efficiency in the kitchen.
Customers can purchase The Smart Baker’s products online or through mail-order catalogs. Prices range from $59.99 to $64.95 for the cupcake towers, providing value for quality and functionality.
How It Went
The company’s position before Shark Tank
The Smart Baker has seen rapid sales growth, with total sales reaching approximately $72,000, including $34,000 in the past three months alone. They aim to achieve $140,000 in sales by the end of the year, with a projected net profit of $100,000. The company primarily sells its products online and through mail-order catalogs, with trade shows contributing to their sales strategy. The cupcake tower is their best-selling product, generating approximately $40,000 in sales since October. Despite facing challenges such as Stephanie’s job loss, The Smart Baker remains resilient and focused on expanding its market presence.
The Negotiations:
After receiving offers from Daymond and Barbara, Stephanie and Daniel ultimately accept Barbara’s offer of $75,000 for 40% of the company, along with a 5% royalty on sales until the investment is recouped. Despite considering a counteroffer, they ultimately decide to accept Barbara’s deal, recognizing the potential for growth and expertise she brings to the table. The negotiation process highlights the couple’s determination and Barbara’s confidence in the company’s potential for success.
