Prime 6 Charcoal
DEAL
EPISODE SUMMARY
🕓 Air Date: November 20, 2020
Asking For:
$200,000 for 10%
Investor:
Kevin O'Leary
Deal:
$200,000 for 25%
PRODUCT SUMMARY
Prime 6 offers an eco-friendly, sustainable charcoal made from repurposed sawdust that burns longer, hotter, and with minimal ash, providing a convenient grilling experience.
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Background Story
Riki and Oron Franco, hailing from New York City, came up with the idea for Prime 6 after being frustrated with the hassle of traditional charcoal grilling. Their family’s love for grilling and an encounter with a similar product in Vietnam planted the seed for this innovative solution. They envisioned a sustainable, all-natural charcoal alternative that would eliminate the mess and inconvenience associated with traditional charcoal while benefiting the environment.
Their journey started from selling the product out of the back of their cars to restaurants and stores, displaying their determination and hustle. As they drove from one customer to another, the Franco brothers refined their sales pitch and product presentation, learning valuable lessons about the market. Their grassroots approach and unwavering commitment ultimately paved the way for Prime 6’s impressive success on the grilling scene.
The Product
Prime 6 is an eco-friendly charcoal alternative that’s 100% sustainable and made from repurposed sawdust. Its unique hexagon shape allows for even heat distribution, resulting in longer and hotter burns compared to traditional charcoal.
What sets Prime 6 apart is its reusability – users can simply turn it off, close the grill’s lid to extinguish the fire, and relight it for future use, leaving virtually no ash or mess behind. This all-natural product contains no harmful additives, making it environmentally friendly and safe for both users and the planet.
Prime 6 comes in different sizes, with a 9-pound pack being equivalent to 30 pounds of regular charcoal, offering users a cost-effective and efficient grilling experience.
How It Went
The company’s position before Shark Tank
Prime 6 has seen significant growth since its launch, with over $300,000 in sales within the first 12 months. They have diversified their distribution channels, selling to food service providers, retail stores, and through e-commerce. Notably, they secured a substantial $130,000 purchase order from Lowe’s, demonstrating their potential for rapid expansion.
Prime 6’s commitment to sustainability extends beyond their product, as they’ve partnered with the organization “One Tree Planted” to plant a tree for every pack sold, costing them just $1 per tree. While they were profitable, the founders had not paid themselves initially, but with the Lowe’s deal, they were planning to change that.
Prime 6 has applied for patents to protect its innovative design and packaging, ensuring its uniqueness in the market. Their focus is on direct-to-customer sales, as they believe this approach will maximize their margins, especially in the current challenging retail environment. With Kevin O’Leary on board as a partner, they are poised to take their business to the next level.
The Negotiations:
The negotiation process saw three Sharks bowing out of the deal. Mark Cuban and Blake Mycoskie opted out due to potential conflicts of interest with existing products they were associated with. However, Kevin O’Leary and Daymond John both expressed interest. Kevin O’Leary initially offered $200,000 for 25% equity, emphasizing his ability to help with direct-to-customer sales and maximize margins.
He also believed that the current retail landscape was challenging. However, he refused to go lower than 25%.Daymond John matched Kevin’s offer of $200,000 for 25% equity, citing his expertise as a professional griller and his passion for the product. He shared a personal connection to grilling from his upbringing.
The founders deliberated briefly and ultimately chose to accept Kevin O’Leary’s offer, believing in his ability to help them grow the business and navigate the complexities of the market.
