Shake It Pup! – Dog Food Seasoning
DEAL
EPISODE SUMMARY
🕓 Air Date: February 28, 2020
Asking For:
$100,000 for 20%
Investor:
Mark Cuban
Deal:
$100,000 for 25%
PRODUCT SUMMARY
Shake it Pup! is a dog food seasoning that transforms bland dog food into flavorful, customizable meals, providing a humanlike dining experience for furry friends.
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Background Story
Brett and AJ, childhood friends since second grade, founded Shake it Pup! based on their shared passion for dogs. The idea took root when Brett comforted AJ on a school bus when his dog was unwell. Fast forward, and they created a solution to dogs’ monotony in meals. Launched over a year ago, the company faced initial challenges with production but quickly gained traction, reaching $105,000 in sales within the first annual year.
Despite operating from a small 350-square-foot space, they engaged in hands-on sales efforts, visiting stores and venues throughout California. Their personal connection to dogs and the limitations of existing dog food options inspired them to develop a product that enhances dogs’ meal experiences.
The Product
Shake it Pup! is a dog food seasoning made from handcrafted, all-natural recipes using human-grade, local, and organic ingredients. The seasoning is designed to eliminate the monotony of dogs’ diets by adding a new flavor profile to each meal.
Unlike traditional toppers that dogs may pick out, Shake it Pup! coats the entire meal, allowing for a varied and interesting dining experience. The product offers a range of flavors to cater to different tastes and nutritional requirements, providing a solution to the limited options available in the market.
The founders emphasize that it takes just one shake of the seasoning to turn ordinary dog food into a gourmet experience. Priced at $12.99 per bottle, with a production cost of approximately $2.45, each bottle can last for 30 to 60 meals. The simplicity of the product, combined with its potential to revolutionize the dog food industry, garnered interest from the Sharks.
How It Went
The company’s position before Shark Tank
In its first year, Shake it Pup! achieved $105,000 in sales, showcasing rapid growth and market demand. However, the founders faced production challenges as they operated out of a 350-square-foot space, leading to agility in response to increasing demand. The product’s appeal lies in its unique approach to enhancing dogs’ meals, differentiating it from traditional dog food toppers. The company’s capital was invested back into small production equipment, indicating a commitment to growth.
Shake it Pup! identified the need for a partner to streamline production and overcome packaging and labeling costs, which comprised 37% of their expenses. Despite having an inventory of approximately 3,000 bottles, the founders highlighted the need for external funding to scale production efficiently. They acknowledged their limitations in manufacturing and the challenges of keeping up with demand.
The Negotiations:
The Sharks expressed varying degrees of interest and concern. Kevin O’Leary, though skeptical, offered $100,000 for 50% equity. Lori Greiner appreciated the idea but felt it was too early for the market. Daymond John and Maria Sharapova bowed out, citing concerns about market saturation and niche appeal.
Mark Cuban, recognizing the potential of the product, offered $100,000 for 25% equity. Kevin countered with a royalty-based offer, but Mark’s equity-focused deal resonated more with the founders. Ultimately, they accepted Mark’s offer, solidifying a partnership that brought $100,000 in capital and valuable expertise to Shake it Pup!
