Bev Buckle – Beverage Holding Belt Buckle
DEAL
EPISODE SUMMARY
🕓 Air Date: September 14, 2012
Asking For:
$50,000 for 10%
Investor:
Barbara Corcoran
Deal:
$50,000 for 51%
PRODUCT SUMMARY
The Bev Buckle is a belt buckle that can fold out to hold a beverage, allowing users to keep their hands free while enjoying their drinks at events or activities.
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Background Story
Jay Kriner, the founder, developed the idea for the Bev Buckle while in college, where he wanted a hands-free solution for holding his drink while socializing with friends. Coming from a background in unexploded ordnance identification and remediation, Jay sought a safer alternative to his previous career path as he was expecting his first child and prioritized family safety.
The Product
The Bev Buckle is a belt buckle designed to hold beverages, featuring a fold-out mechanism that securely holds drinks of various sizes. Made with a magnetic closure, the buckle can easily attach to any belt. It offers customization options for branding and logos.
It is priced between $35 to $110 depending on customization and has a manufacturing cost of $10. Customers can purchase it directly from the company’s website or through retailers.
How It Went
The company’s position before Shark Tank
The company has generated $340,000 in sales over four years, primarily through personal sales at festivals and events. However, the founder faced challenges with defective products from the manufacturer, hindering scaling efforts. Despite interest from major retailers and raceways, the lack of working capital prevented sealing deals. The founder currently holds 62 units of inventory and seeks $2,000 to $3,000 per month for full-time dedication to the business.
The Negotiations:
Jay Kriner entered the negotiation with enthusiasm, seeking $50,000 for a 10% equity stake in Bev Buckle. While his product garnered immediate interest and admiration from the sharks, concerns arose during the discussion. Mark Cuban and Daymond John both expressed doubts about the company’s ability to overcome longstanding challenges and achieve significant growth. Despite Robert Herjavec’s offer of $50,000 for a whopping 75% stake, which Jay declined, the Sharks ultimately couldn’t reach a consensus.
Barbara Corcoran’s offer of $50,000 with a 51% equity seemed appealing, emphasizing her belief in Jay’s potential but acknowledging the company’s current limitations. Despite some hesitancy, Jay ultimately accepted Barbara’s offer, expressing gratitude for her guidance and expertise. While the negotiation showcased the sharks’ differing perspectives on the company’s prospects, Jay’s decision to accept Barbara’s offer reflected his desire for mentorship and support as he navigated the challenges of entrepreneurship.
