Bouquet Bar Gift Boxes
DEAL
EPISODE SUMMARY
🕓 Air Date: January 21, 2018
Asking For:
$150,000 for 10%
Investor:
Mark Cuban
Deal:
$150,000 for 20%
PRODUCT SUMMARY
Bouquet Bar, an innovative online gifting platform, offers meticulously curated designer gift boxes containing unique gifts, flowers, and personalized notes for a distinctive and elegant gifting experience.
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Background Story
The entrepreneurial journey of Bouquet Bar is deeply rooted in the expertise and passion of its founders — Sal, Alex, and David. Sal, with 25 years of experience in the floral business, hails from Iran and arrived in the U.S. at the age of 15 with a humble background. Alex, a Biochemistry major, initially pursued a path towards medicine but later transitioned to entrepreneurship.
The two came together, leveraging Sal’s extensive floral expertise and Alex’s digital media and technology background. Bouquet Bar was conceived two years ago when the founders identified a gap in the market for a more sophisticated and personalized gifting solution. The vision was to combine their floral design prowess with technology to create an elevated and convenient gifting experience.
The Product
Bouquet Bar’s online platform provides customers with a seamless process to create thoughtful and personalized gifts. Customers can choose from various designer gift boxes and select gifts such as lavender-infused chocolates, organic tea blends, or exquisitely arranged flowers.
The customization options are vast, allowing users to add a personal touch through custom notes and finishing touches to their chosen gift box. The founders take pride in the quality of their products, emphasizing the aesthetic appeal of the packaging and the diversity of gift options available.
Having been in business for only four months, Bouquet Bar has already established a product lineup comprising 22 SKUs, including candles and truffles. The pricing tiers are structured with careful consideration, with the small box priced at $50 (with a $20 total cost), the medium box at $75 ($34 cost), and the large box at $155 ($68 cost). Shipping costs range from $12 to $15, ensuring that the quality of the product is maintained throughout the delivery process.
How It Went
The company’s position before Shark Tank
Bouquet Bar’s performance showcases a promising trajectory within its short existence. The founders operate out of a 6,200-square-foot facility with an inventory worth $300,000, poised to translate into an anticipated revenue range of $1 million to $1.2 million. With a background in luxury floral design, the founders already own another business generating approximately $3 million in annual revenue.
Bouquet Bar has invested $600,000 of their own capital, demonstrating a significant commitment to the success of the venture. The company is well-positioned for scalability, with a robust infrastructure and the readiness to expand operations. The customer acquisition cost, currently standing at $60 and utilizing Google CPC, has been an area of scrutiny. Within just four months of its launch, Bouquet Bar has generated close to $100,000 in sales, underscoring its market traction.
The Negotiations:
The Shark Tank pitch elicited a mix of enthusiasm and skepticism from the Sharks. Concerns were raised about the potential similarities to existing businesses like Sugarfina, prompting a discussion on the need for a more distinctive business strategy. Lori and Kevin opted out, citing reservations about the refinement of the business model. However, Mark Cuban, recognizing the potential of Bouquet Bar, offered $150,000 for a 20% equity stake.
The negotiation delved into the founders’ commitment to the business, their willingness to make personal financial sacrifices if necessary, and the potential need for additional funds. Despite the initial reservations, the deal concluded with Mark Cuban securing a 20% stake in Bouquet Bar for his $150,000 investment, marking a successful outcome for the founders and highlighting the potential growth trajectory of their unique gifting platform.
