GeekMyTree Animated Glow Balls
DEAL
EPISODE SUMMARY
🕓 Air Date: December 11, 2015
Asking For:
$225,000 for 25%
Investor:
Kevin O'Leary
Deal:
$225,000 for 50%
PRODUCT SUMMARY
GeekMyTree offers animated glow balls that bring the excitement of outdoor light shows inside to the family Christmas tree, with synchronized lighting patterns and the potential for full musical sequences.
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Background Story
Brad Boyink, based in Ferrysburg, Michigan, is the founder of GeekMyTree. He was inspired by his experience creating mega Christmas light shows, including one that attracted over 70,000 people and was the second-largest in the country. The idea for animated glow balls came from wanting to bring the joy of synchronized outdoor light displays to the family Christmas tree. Boyink seeks $225,000 for 25% equity to modernize Christmas tree lighting and make it more captivating for families.
The Product
The animated glow balls from GeekMyTree offer a modern twist to traditional Christmas tree lighting. Priced at $299 to $399, the product includes a controller, 16 built-in patterns, and a mobile app for purchasing additional patterns.
What sets GeekMyTree apart is the professionally synchronized lighting patterns, including options like “Fill Her Up,” “Back to Spring,” and “Color Rain.” Boyink envisions expanding the product to offer full musical sequences, as demonstrated with Tchaikovsky’s “The Nutcracker” during the pitch.
The starter kit, priced between $299 and $399, is the initial offering, with expansion kits available for $200. While acknowledging that there are cheaper LED string lights on the market, Boyink emphasizes the uniqueness and quality of his product.
How It Went
The company’s position before Shark Tank
GeekMyTree has produced around 300 units and faces challenges with the high price point of $299 to $399 per set. Boyink explains that the limited production run for the current season is a factor contributing to the high cost. He mentions the possibility of reducing the price by 20% if they can produce over 10,000 units and an additional 30% reduction for volumes exceeding 50,000 units.
However, the Sharks express concerns about the price, with Kevin O’Leary and others finding it significantly expensive. GeekMyTree has sold almost 300 units, and Boyink highlights the potential to lower costs with increased production.
The Negotiations:
The Sharks are taken aback by the high price of GeekMyTree’s product, expressing skepticism about its market appeal. While some Sharks, including Mark Cuban and Barbara Corcoran, bow out, Kevin O’Leary offers $225,000 for 50%. Despite expressing concerns about the high price, Greiner sees potential in the product, especially during the Christmas season.
Boyink attempts to negotiate for a 40% equity stake, but O’Leary insists on a 50/50 partnership. In the end, Boyink accepts the deal, and GeekMyTree secures Kevin O’Leary as a partner for a 50% stake in the company.
