Garage Celebrations – Garage Door Cover
DEAL
EPISODE SUMMARY
🕓 Air Date: December 9, 2022
Asking For:
$200,000 for 20%
Investor:
Mark Cuban
Deal:
$200,000 for 30%
PRODUCT SUMMARY
Garage Celebrations offers decorative garage door covers for various holidays and events, making it easy for homeowners to transform their garage doors into festive displays without tools or clips.
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Background Story
Bill and Bill, a father-son duo, presented Garage Celebrations on Shark Tank. Their product aimed to simplify holiday decorating by offering reusable, machine-washable garage door covers that fit most residential garage doors. The concept stemmed from Bill’s desire to stay active after retirement and his fascination with garage door covers. He enlisted the help of his architect son, Bill, to turn this idea into a business.
The duo emphasized the uniqueness of their product, particularly the patented collar system that allows easy installation without tools or clips. They highlighted their initial sales success, having secured a significant order from a major Halloween retailer. While they recognized the potential of customization, they acknowledged the need for expertise in social media marketing to drive the business forward.
The Product
Garage Celebrations offers decorative garage door covers designed for various holidays and occasions, such as Christmas, Halloween, and the 4th of July. These covers are made from a fabric blend that includes 6% spandex, making them flexible and stretchy.
To install a Garage Celebrations cover, users need to open their garage door slightly to access all four corners. The fabric stretches to accommodate different garage door sizes and does not impede the garage door’s operation. Garage Celebrations covers are reusable, machine washable, and fold easily for storage.
The covers are sold for various holidays and occasions, allowing homeowners to quickly transform their garage doors into festive displays without the need for tools, clips, cords, or tape. The covers are designed to enhance the holiday spirit and curb appeal.
The price point for a one-car garage door cover is $120, with a landed cost of $35. The covers are designed to be sold to retailers, and Garage Celebrations aims to offer customized versions in the future.
How It Went
The company’s position before Shark Tank
At the time of their Shark Tank pitch, Garage Celebrations had achieved $175,000 in sales, primarily through a significant order from a major Halloween retailer. They mentioned that they had recently started production, with delivery taking place the week before the pitch. The company’s primary strategy for growth was social media marketing, particularly on platforms like TikTok. However, they acknowledged the need for expertise in this area and the importance of building a community around the product.
Garage Celebrations had manufacturing arrangements in Vietnam, with plans to purchase their own dye sublimation printer to enhance production efficiency. Their landed cost for a cover was $35, and they sold the covers to retailers for approximately $43 each. While the founders recognized the potential for customization, they mentioned the challenges associated with long lead times and the need to develop software that would allow customers to upload high-resolution images for personalized covers.
The Negotiations:
In the Shark Tank, Garage Celebrations sought a $200,000 investment for 20% of their business. The Sharks had mixed opinions about the product, with some expressing concerns about seasonality and the need for social media marketing expertise. Barbara Corcoran was the first to bow out, expressing that she found the design of the product dated and unattractive, leading to her decision to not invest.
Lori Greiner appreciated the Halloween-themed cover but ultimately decided to pass on the opportunity, as she didn’t see it as the right fit for her investment portfolio. Kevin O’Leary expressed skepticism about the valuation and the need for additional marketing expertise. He also questioned the founders’ ability to handle customization efficiently and profitably.
Mark Cuban, however, saw potential in the product and offered $200,000 for a higher equity stake of 30%. He emphasized the possibility of streamlining production by purchasing their own dye sublimation printer and the potential for customization. The founders accepted Cuban’s offer, securing a deal in the Fun Tank. While the negotiation process raised questions about the company’s readiness to scale, Cuban’s investment offered the opportunity to explore customization and expand the business through efficient production methods and strategic marketing.
