Ready Festive – Holiday Decorations
DEAL
EPISODE SUMMARY
🕓 Air Date: December 9, 2022
Asking For:
$250,000 for 10%
Investor:
Robert Herjavec
Deal:
$250,000 for 18%
PRODUCT SUMMARY
ReadyFestive is a customizable and convenient service delivering on-trend home decor for various holidays and seasons throughout the year.
WATCH HERE
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Background Story
The founders, Liz and Kristina, both have complementary business backgrounds with experience in marketing, sales, and product development. Liz worked for a large media and entertainment company, while Kristina spent over 15 years at one of the world’s largest retailers, Gap Inc. They came up with the idea for ReadyFestive to simplify the process of holiday and seasonal decorating for customers who may lack the time or creativity to do it themselves.
The Product
ReadyFestive allows customers to choose from various holidays and seasons (14 options), customize their decor preferences, and select box sizes (mini, standard, or deluxe).
The company curates on-trend home decor items for these occasions and delivers them to customers’ doorsteps. Prices range from $69 for a mini box to $159 plus shipping for a deluxe box.
The products in the boxes have a total retail value equal to or greater than if customers were to shop for them individually. Customers can choose to pay upfront and save 10% or pay as their boxes ship. The company also offers pre-order options.
How It Went
The company’s position before Shark Tank
ReadyFestive has done over $1.5 million in sales since its launch at the end of 2019. Their sales for year one were $250,000, year two saw $500,000 in sales, and they expected to reach $1.6 million in sales for 2022. This year marked the first year of turning a profit, with projected earnings of $300,000.
The average customer spends about $750 with the company, and the monthly churn rate is around 5%. They have $800,000 committed in prepaid revenue and expect close to $1.5 million for 2023. Their customer acquisition cost is $40.
The Negotiations:
The founders initially asked for $250,000 for a 10% equity stake. Mark Cuban, Barbara Corcoran, Kevin O’Leary, and Lori Greiner went out, expressing concerns about the complexity of inventory and the number of holidays and SKUs. Robert Herjavec made an offer of $250,000 for 20% equity, which the founders countered with 12%. Herjavec increased his offer to 18%, which the founders accepted, securing a deal.
