Easy Treezy – Artificial Christmas Trees
NO DEAL
EPISODE SUMMARY
🕓 Air Date: December 1, 2019
Asking For:
$400,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Easy Treezy offers a quick and easy-to-set-up artificial Christmas tree with a memory-wire patent-pending cone technology and an electromagnetic lighting system, available in designer and natural collections for simplified decorating.
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Background Story
Christmas Kurt, the chief artificial Christmas tree farmer at Easy Treezy, introduced the product as the world’s easiest Christmas tree. Growing up in Wisconsin with a family tradition of cutting down live Christmas trees, Kurt was inspired to create a solution for the difficulty his mother faced during the holidays due to illness.
The idea was to develop a lightweight, easy-to-assemble artificial Christmas tree that could be set up by a single person. The business, Easy Treezy, was born from Kurt’s desire to make the holiday season more accessible and enjoyable for individuals who faced challenges with traditional Christmas trees.
The Product
Easy Treezy’s artificial Christmas tree is designed to be lightweight and quick to set up. Featuring a memory-wire patent-pending cone technology, the tree securely snaps together, and an industry-first electromagnetic lighting system instantly illuminates the lights.
The product is available in two collections: the designer collection, which ships completely decorated with attached ornaments, and the natural collection, which allows users to decorate the tree as they like.
Notably, the tree’s lay-flat technology enables easy storage under beds, in closets, or on shelves, making it convenient for users to store and retrieve each year. The trees are priced at $599 to $779, depending on the size and features.
How It Went
The company’s position before Shark Tank
Easy Treezy achieved $605,000 in sales in 2018, with projections of reaching $2.2 million in the current year. The product is sold through big-box retail, particularly in At Home stores, contributing to about 15% of the business. Additionally, the company has a strong online presence, with approximately 50% of sales coming from direct-to-consumer channels, primarily through Amazon and the company’s website.
Easy Treezy has not raised external funding, with Christmas Kurt investing around $500,000 of his own money into the business. The digital advertising budget for the current season is $120,000, with a focus on platforms like Google.
The Negotiations:
The negotiations saw Christmas Kurt seeking $400,000 for 10% of Easy Treezy. The Sharks expressed concerns about the high price point of the trees, with Barbara Corcoran noting the success of modern Christmas trees in a similar price range. Kevin O’Leary, skeptical about the product’s value and market acceptance, quickly opted out. Mark Cuban and Lori Greiner also expressed reservations, leading to all Sharks bowing out.
When asked about Easy Treezy’s sales and distribution, Christmas Kurt revealed that the company had a verbal commitment from Home Depot for an $8.5 million order, but the deal fell through due to concerns about the product’s manufacturing capabilities.
Robert Herjavec, the only remaining Shark, offered $400,000 for 40% of the company, valuing it at $1 million. After a brief negotiation, Christmas Kurt declined the offer, unwilling to part with 40% of his company, and suggested a counteroffer of $400,000 for 25%, which Robert also declined. The pitch concluded with no deal made.
