Sealed By Santa Letters
DEAL
EPISODE SUMMARY
🕓 Air Date: December 9, 2016
Asking For:
$150,000 for 20%
Investor:
Lori Greiner
Deal:
$75,000 for 22,50%
PRODUCT SUMMARY
Sealed by Santa offers personalized letters from Santa, complete with magical reindeer food, a red wax seal, a phone call from Santa, and two video messages.
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Background Story
Sarah Blain, the founder of Sealed by Santa, resides in Delray Beach, Florida, and her journey into the festive world of personalized letters from Santa is a captivating tale of determination and creativity. A mother of two beautiful daughters, Sienna and Milan, Sarah’s love for Christmas runs deep, making it her favorite time of the year. The inception of Sealed by Santa traces back a decade ago when Sarah stumbled upon a similar concept online. Convinced that she could enhance the idea, Sarah, fueled by her entrepreneurial spirit, decided to create a business around her favorite holiday.
Christmas holds a special place in her heart, and she wanted to share the joy and magic of the season with families worldwide. However, Sarah’s entrepreneurial journey took on a new dimension following a challenging period in her personal life. Recently divorced, she found herself the sole financial provider for her household. Undeterred by the circumstances, Sarah saw Sealed by Santa not only as a business venture but as a means to secure a better future for herself and her daughters. This season marked her first year as a single mom, adding an extra layer of significance to her entrepreneurial pursuit.
Sarah’s background in working for Santa Claus, helping respond to children’s letters along with her elf friends, uniquely positions her to create an authentic and magical experience for families. The business thrived under her dedicated management, processing a remarkable 45,000 letters in the previous year. Her strategic expansion into other holidays, such as summer and Easter, showcases her innovative thinking, aiming to transform Sealed by Santa from a seasonal venture into a year-round enchanting experience for children and families. Sarah’s story is one of resilience, creativity, and a commitment to making lasting memories for families during the most wonderful time of the year.
The Product
Sealed by Santa offers a delightful and personalized experience for families, bringing the magic of Christmas to life through intricately crafted letters from Santa Claus. The process begins when parents, grandparents, aunts, or uncles visit the Sealed by Santa online platform. There, they can choose from a selection of 12 different letters, catering to various occasions such as Baby’s First Christmas and teen letters.
Customers provide details about the child, including their accomplishments, wish list items, and other personalized information. Once the order is placed, Sealed by Santa’s team swiftly gets to work. The letter is meticulously printed, adorned with a red wax seal, and includes magical reindeer food. The final touch involves shipping the letter directly to the North Pole for Santa’s approval, ensuring an authentic and enchanting experience.
The pricing for each letter starts at $10.95, with the option to select different packages. Sealed by Santa prides itself on a quick 24-hour turnaround, ensuring that the personalized letter arrives promptly to create lasting memories for the children. The product’s charm lies in its attention to detail, authenticity, and the magical touch of receiving a letter directly from Santa Claus, making it a cherished keepsake for families during the holiday season. Customers can easily access and purchase these magical letters, making Sealed by Santa a heartwarming addition to Christmas traditions.
How It Went
The company’s position before Shark Tank
Sealed by Santa has demonstrated robust performance, establishing itself as a prominent player in the personalized letters from Santa market. In the past year, the company reported impressive sales, reaching $355,000 with a commendable net profit of $180,000. This success reflects the growing demand for personalized and magical experiences during the festive season, positioning Sealed by Santa as a profitable venture. The company’s customer base is substantial, boasting a database of 60,000 individuals who have embraced the enchanting offerings of Sealed by Santa.
These customers include parents, grandparents, aunts, uncles, and friends seeking to create memorable Christmas experiences for the children in their lives. The product’s popularity is evident in the significant volume of letters processed, with Sarah handling a remarkable 45,000 letters in the previous year. Sealed by Santa’s strategic expansion into other holidays, such as summer and Easter, demonstrates an adaptive approach to transform the business from a seasonal venture to a year-round enchanting experience. This diversification has proven successful, with the summer letters alone generating about $15,000 in revenue each.
The company’s current structure involves Sarah Blain as the founder and CEO, leading a team of 12 elf friends who assist during the busy holiday season. This structure allows for efficient operations, ensuring that the personalized letters are processed and delivered with care and attention to detail. The absence of disclosed wholesalers or detailed information about partners suggests that Sealed by Santa may primarily operate as a direct-to-consumer business, maintaining a strong connection with its customer base. With its solid financial performance and dedicated customer following, Sealed by Santa appears well-positioned for continued success in delivering magical moments during the holiday season.
The Negotiations:
The negotiations for Sealed by Santa on “Shark Tank” were emotionally charged and dynamic, showcasing Sarah Blain’s determination to secure a deal that aligned with her goals as a single mom and entrepreneur. Sarah entered the tank seeking a $150,000 investment for 20% equity in her company. The first offer came from Kevin O’Leary, who proposed a $150,000 investment for a 33 1/3% equity stake. He emphasized the value he could bring to the partnership.
Lori Greiner, recognizing the emotional significance of Sarah’s journey, presented a competing offer of $150,000 for 33 1/3%, with the condition that the first $100,000 would serve as Sarah’s salary, providing her immediate financial support. Robert Herjavec entered the negotiation with a unique offer, providing a $75,000 loan and a $75,000 investment for 22 1/2% equity. Sarah faced a challenging decision, torn between securing the necessary funds and maintaining the equity stake in her business. Expressing her gratitude and acknowledging the significance of the offers, she eventually accepted Lori’s deal.
Lori’s offer, balancing investment and salary, resonated with Sarah’s immediate financial needs and her vision for the future of Sealed by Santa. The negotiations not only highlighted the financial aspects but also touched on Sarah’s personal journey and the emotional weight of being a single mom striving to provide for her family. In the end, the deal with Lori Greiner represented a mutually beneficial partnership that aligned with Sarah’s mission to make Sealed by Santa a lasting and successful venture.
