Bello Verde Custom Clothing
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 16, 2015
Asking For:
$360,000 for 6%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Bello Verde offers the ultimate luxury suiting experience with custom-made, high-quality suits.
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Background Story
Bello Verde, a burgeoning custom-clothing label, finds its roots in Columbus, Ohio, under the guidance of founder Joe Chay. With a background steeped in sales and management, Chay’s journey into the world of custom suiting began during his tenure at Astor & Black. The luxury suiting brand, known for its purely custom offerings, faced financial challenges, providing Chay with a unique opportunity. After a decade with Astor & Black, Chay decided to venture out on his own when the company went under.
The pivotal moment in his career came when he made a strategic move to acquire Astor & Black for $405,000. This acquisition not only included the brand but also brought invaluable assets like over $1 million worth of inventory in belts, shoes, sweaters, jeans, ties, and a sophisticated back-end web system. Chay’s foresight extended beyond the purchase of physical assets; he also inherited a business model that focused on in-home fittings, a concept that resonated well with clients like UFC superstar Urijah Faber and actor Dean Cain. Inspired by his experiences and the potential for growth, Chay founded Bello Verde.
The name, meaning “Beautiful Green” in Italian, reflects his aspiration to create a brand synonymous with elegance and style. The company stands on the precipice of monumental growth, offering a unique blend of craftsmanship and convenience. With a vision to revolutionize the custom-clothing landscape, Joe Chay and Bello Verde entered the Shark Tank seeking an investment of $360,000 for a 6% equity stake, inviting the Sharks to be a part of their journey towards becoming a global leader in luxury suiting.
The Product
Bello Verde’s product lineup stands as the epitome of luxury suiting, offering a personalized and unmatched sartorial experience. The heart of their offering lies in custom-made suits meticulously crafted to meet the unique preferences and measurements of each client. The process involves an extensive procedure, where master tailors take up to 30 measurements on the client’s body, ensuring a precise and comfortable fit.
The suits boast full canvas construction, functional buttonholes on every sleeve, and handpicked stitching on every seam, embodying the pinnacle of craftsmanship. Bello Verde takes pride in offering a diverse selection of fabrics sourced from the world’s premier mills, ensuring a wide range of choices for their clientele.
The brand caters to a broad spectrum of customers, from individuals like UFC superstar Urijah Faber to actor Dean Cain, accommodating various body types and style preferences. Notably, Bello Verde distinguishes itself by providing in-home fittings, a service appreciated by those who prefer the convenience of personalized consultations without the hassle of traditional shopping.
The price range for Bello Verde suits spans from $1,000 to $3,000, with the company’s core business centered around the $1,000 to $1,500 suit category. The dual-brand strategy includes retail under the name Bello Verde and wholesale under the recognizable Astor & Black label. Additionally, the company has ventured into online sales, with an already launched online store featuring accessories like shoes, belts, sweaters, and ties.
How It Went
The company’s position before Shark Tank
Bello Verde’s current health and position showcase a company on the verge of substantial growth. With anticipated sales of $2 million, the company expects a net profit exceeding $500,000. The product range, spanning from $1,000 to $3,000 suits, caters to a diverse clientele, from UFC superstar Urijah Faber to actor Dean Cain. These partnerships highlight the brand’s versatility in serving a wide array of customers with varying body types and style preferences. The strategic acquisition of Astor & Black has provided Bello Verde with a strong foundation.
Partnerships with reputable mills worldwide ensure a rich selection of fabrics for their custom suits. The incorporation of Astor & Black as a wholesale label allows Bello Verde to tap into different market segments, providing a dual-brand strategy for retail and wholesale operations. The company is poised for further expansion with multiple revenue streams. In addition to in-home fittings, Bello Verde has launched an online store for accessories, diversifying its sales channels. The utilization of Fashion Metric’s technology, a company under Joe Chay’s ownership, adds another layer to Bello Verde’s strategy, incorporating algorithms for personalized fittings.
Funding for Bello Verde came from the strategic acquisition of Astor & Black, with Joe Chay investing $405,000 to secure assets valued at over $1 million. This move not only provided the necessary capital but also positioned the company with a robust inventory, a sophisticated web system, and an established customer base. Profits and losses have been promising, with a projected net profit of over $500,000 on sales of $2 million. The company’s available capital is expected to increase with future growth, leveraging the diverse revenue streams outlined in their business model. The current structure includes both retail and wholesale arms, along with an online sales platform, showcasing Bello Verde’s adaptability and readiness for market expansion.
The Negotiations:
The negotiations in the Shark Tank for Bello Verde were dynamic, with Joe Chay seeking a $360,000 investment for a 6% equity stake. The offers and counteroffers revealed both the potential and challenges the Sharks perceived in the business. The pitch attracted early interest from Daymond John, who offered $360,000 for a hefty 33% equity share. This proposition, though substantial, was deemed far too steep by Chay, leading to a counteroffer of 7%, which failed to bridge the gap.
The negotiations took an intriguing turn when Mark Cuban entered the fray with an offer of $360,000 for 25%, expressing concerns about the high valuation. However, this offer was also rejected by Chay, who believed it didn’t accurately reflect the value of his business. Ultimately, Daymond John presented a final offer of $360,000 for 25%, a compromise that Chay found unappealing, leading to his decision to decline the deal. The negotiations showcased a misalignment in valuation perceptions, with Chay confident in the potential for monumental growth but the Sharks hesitant due to the perceived risk.
Despite leaving the Tank without securing a deal, Joe Chay remained resolute in his belief that the Sharks failed to grasp the vision and proper valuation of Bello Verde. The negotiation process underscored the challenges of finding common ground between an entrepreneur’s vision and the Sharks’ expectations, providing valuable insights into the dynamics of securing investments in the highly competitive environment of Shark Tank.
