NERDiT NOW – Device Repairs
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 27, 2019
Asking For:
$150,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
NERDiT NOW is a tech repair company that purchases, repairs, and resells computers, phones, and tablets, offering services through storefronts, a mobile device repair ambulance ("Motherboard"), and a prototype remote kiosk.
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Background Story
NERDiT NOW was founded by Markevis Gideon, Jonathan Hoxter, and Jake Voorhees in Wilmington, Delaware. Markevis, an engineer, and Jonathan, with a finance background, combined their skills to address the rising issue of Post-Traumatic Screen Disorder. Frustrated with the lack of trustworthy and affordable tech repair services, they launched NERDiT NOW to provide reliable and cost-effective solutions.
The company started from Markevis’s two-bedroom apartment and has since expanded to two storefronts and the innovative mobile repair ambulance, the Motherboard. The founders shared a common passion for technology, with Markevis’s early exposure to computers shaping his career as a Microsoft-certified systems engineer.
Jonathan, with a finance degree, and Jake, with a civil engineering degree, joined forces to create a business that not only fixed devices but also addressed the challenges of trust and pricing in the repair industry. Their dedication is evident in the sacrifices made, such as Markevis moving in with his in-laws and putting $20,000 on his credit card to kickstart the business.
The Product
NERDiT NOW offers a range of tech repair services for computers, phones, and tablets. The unique aspect of their business is the mobile device repair ambulance, the Motherboard, and a prototype remote kiosk.
The Motherboard serves as a mobile repair unit that responds to customers’ calls for device repair, functioning similarly to a traditional ambulance for tech emergencies. The remote kiosk, still in the prototype stage, allows customers to drop off broken devices for same-day repair without interacting with a human.
The repair services cover various devices, including the popular iPhone 7, with NERDiT NOW charging $90 for a repair that comes with a six-month warranty. This pricing strategy is a significant improvement over competitors, with the added advantage of repairs being done in front of the customer to build trust.
The founders explained their plan to scale the business, introducing more Motherboards and kiosks in strategic locations like Philadelphia and Baltimore. The goal is to test markets with the Motherboard, building trust within organizations, and then deploying kiosks once trust is established.
How It Went
The company’s position before Shark Tank
NERDiT NOW’s current sales figures indicate a year-to-date revenue of $74,000, with a projected $250,000 for the entire year. The previous year saw $157,000 in revenue. The company’s business model revolves around the mobile device repair ambulance, generating approximately $30,000 in a 5-day period. The founders expressed plans to use the $150,000 investment to purchase two more Motherboards, test markets in Philadelphia and Baltimore, acquire 10 kiosks, and complete software development.
NERDiT NOW has capitalized on its unique selling proposition of trustworthy and affordable tech repairs, differentiating itself from competitors like mall kiosks and comprehensive service providers like Geek Squad. Their strategic approach involves joining food-truck circuits to maximize visibility and trust-building opportunities.
As for the company’s structure, partnerships, and funding, the founders did not provide detailed information during the pitch. However, they showcased a clear understanding of their market niche and the challenges they aimed to address.
The Negotiations:
The negotiation phase saw the Sharks expressing concerns about the scalability and investability of NERDiT NOW. While the founders sought $150,000 for 20% equity, they left the tank without a deal. Mark Cuban expressed skepticism about the scalability of the business, stating that it is not easily investable due to its dependence on proximity and time. Kevin O’Leary also voiced his doubts, emphasizing the lack of a compelling rollout strategy and a high return on investment.
Lori Greiner and Daymond John both bowed out, citing reasons such as early-stage investment concerns and a preference for businesses with less physical involvement. Matt Higgins acknowledged the cleverness of NERDiT NOW’s model, particularly the well-branded mobile repair truck. However, he advised the founders to continue scaling slowly, stating that the business might be a bit too early for investment.
In a final plea, the founders passionately expressed their determination to scale the company, emphasizing the uniqueness of their service and their commitment to making the Sharks part of their success story. Despite their efforts, the Sharks remained unconvinced, and NERDiT NOW left the tank without a deal. The founders, undeterred, left with a positive outlook, ready to prove the Sharks wrong and continue building their tech repair empire.
