Arkeg Arcade Game & Beer Tap
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 4, 2013
Asking For:
$100,000 for 33%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Arkeg combines a kegerator with classic arcade games, allowing users to enjoy drinks while gaming.
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Background Story
Dan Grimm and Brant Myers, childhood friends from San Luis Obispo, California, shared a passion for tinkering and gaming since their youth. Their friendship and shared interests led them to create Arkeg, a unique product born from their college days when they combined a kegerator and an arcade machine in their shared house. Recognizing the appeal of their creation, they saw an opportunity to merge their engineering and manufacturing expertise to commercialize the concept.
The Product
The Arkeg is a multifunctional appliance that serves as both a kegerator and an arcade game console. It pours various beverages, including beer, wine, and root beer, while also offering pre-loaded classic arcade games for entertainment. Its versatility makes it suitable for family rooms, game rooms, or man caves, catering to different demographics.
Priced at $4,000 retail, it targets consumers seeking a unique combination of entertainment and convenience. The appliance’s sleek design and functionality make it an attractive addition to any social space, offering an immersive gaming experience paired with refreshing drinks.
How It Went
The company’s position before Shark Tank
Arkeg had sold 20 units over two years, indicating modest but steady sales. Their target market included gaming enthusiasts, homeowners looking to enhance their entertainment spaces, and individuals seeking unique gifts. The founders had full ownership of the business, maintaining control over its operations and direction.
While they sought investment in Shark Tank to scale their business and reach a wider audience, they ultimately retained 100% ownership. They aimed to penetrate big-box stores with the help of external funding to lower their price point and expand their customer base. However, without a deal, their current funding sources remained undisclosed, and their capital for growth was limited to their existing resources.
The Negotiations:
Despite presenting a unique product with niche appeal, Arkeg faced skepticism from the Sharks, who raised concerns about its market viability and limited sales. While the founders showcased the appliance’s features and versatility, Sharks questioned its relevance in the modern gaming landscape dominated by smaller, portable devices. Offers from the Sharks varied, with some expressing interest in the concept but ultimately passing due to concerns about its scalability and market demand.
Mr. Wonderful viewed it as a limited opportunity, preferring to invest in businesses with potential for substantial growth. Ultimately, the founders declined Lori’s offer of $50,000, recognizing the importance of maintaining full ownership and control over their venture. Despite not securing a deal, they remained optimistic, acknowledging the exposure gained from the show and the freedom to pursue their passion while maintaining autonomy over their business.
