Gotta Have S’More
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 15, 2013
Asking For:
$75,000 for 25%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Gotta Have S'More offers S'Muffins, a twist on traditional s'mores in the form of mini muffins, aiming to revolutionize the dessert industry.
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Background Story
Founder Carmen Lindner, a former advertising sales executive, was inspired to start Gotta Have S’More after being laid off during the recession. With a severance package, Carmen and her husband pursued their dream of opening a s’more store. Fueled by Carmen’s love for s’mores and the desire to create happy memories for others, they embarked on creating the unique S’Muffin. Carmen trademarked the name and focused on expanding their reach beyond the local market, investing heavily in national shipping to make their product accessible to everyone.
The Product
Gotta Have S’More’s flagship product, the S’Muffin, is a mini muffin-shaped version of the classic s’more. It comes in various flavors such as dark chocolate, chocolate with caramel, and milk chocolate, each offering a unique taste experience. With only 200 calories per serving, the S’Muffin aims to provide guilt-free indulgence.
The product is primarily sold online, with 75% of customers ordering directly through the company’s website or by phone. Additionally, Gotta Have S’More has secured placements in select local specialty bakeries and wine stores.
Each dozen S’Muffins costs $29.95 to the customer and $9.34 to produce, with nationwide shipping recently introduced at a cost of $54 per shipment, including 5 pounds of dry ice for preservation during transit. Despite the high shipping costs, Carmen is confident in the product’s appeal to high-end customers willing to pay for quality and convenience.
How It Went
The company’s position before Shark Tank
Gotta Have S’More has achieved sales of $250,000 within the local Los Angeles market over two and a half years, with a projected revenue of $165,000 for the current year. The company primarily sells directly to consumers through its online platform and phone orders. While local specialty bakeries and wine stores also carry the product, online sales remain the focus. The recent introduction of nationwide shipping represents a significant investment aimed at expanding the customer base beyond the local market.
Gotta Have S’More operates with a lean structure, with Carmen Lindner as the founder and CEO, supported by a small team. The company’s performance metrics demonstrate steady growth and a loyal customer base drawn to the unique offering of the S’Muffin. Despite challenges such as high shipping costs, Gotta Have S’More remains committed to delivering quality products and expanding its reach.
The Negotiations:
Despite offering a unique product with steady sales and growth potential, Carmen’s valuation and high shipping costs deterred the Sharks from making an investment. While Carmen’s passion for her product was evident, the Sharks raised concerns about the feasibility of the business model, particularly regarding the high cost per unit and shipping expenses.
Although some Sharks appreciated the product’s appeal and recognized its potential, they ultimately chose not to invest due to the perceived challenges in scaling the business and generating profits. Carmen’s insistence on pursuing national distribution further raised doubts about the company’s focus and financial sustainability. Despite the setback, Carmen remained determined to pursue her vision for Gotta Have S’More, recognizing the need to reassess the company’s strategy and address the concerns raised by the Sharks.
