The AVE Venice
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 23, 2012
Asking For:
$125,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Ave is a unique retail concept allowing customers to custom-create any article of clothing, from hats to shoes, right in the store while they wait.
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Background Story
Nick Romero, the founder of The Ave, resides in Venice Beach, a hub of creativity. His store, The Ave, was born out of a desire to provide a platform for people to express themselves through clothing. Romero, a self-starter who never attended college, previously worked in a corporate job for three years before pursuing his entrepreneurial dreams. The idea for The Ave came from observing the growing trend of self-expression through clothing in the digital age, leading him to create a physical space where customers could bring their ideas to life.
The Product
The Ave’s flagship offering is custom-designed shoes made using a patented printing process. Customers can bring in any image or idea, and the store transforms it into wearable art on the spot.
The process involves modifying a digital garment printer with a custom-made template for each shoe size, ensuring precise printing.
The Ave’s retail model eliminates the need for pre-made inventory, as products are only created upon customer orders. Prices for custom shoes start at $100, with a production cost of around $27-$28, including the shoe itself.
How It Went
The company’s position before Shark Tank
Since opening in mid-April of the previous year, The Ave has generated $570,000 in sales, with a profit of $150,000. The company’s unique retail model contributes to higher profit margins by eliminating the need for pre-made inventory. Romero aims to expand The Ave into a chain, with plans for larger stores and potential franchising in the future.
The Negotiations:
Despite an initial pitch that showcased The Ave’s innovative retail concept and impressive sales figures, Romero failed to secure a deal with the Sharks. While impressed by the business idea, Sharks expressed concerns about the scalability of the business model and Romero’s willingness to sacrifice personal income for the company’s growth. Ultimately, Romero’s reluctance to commit to significant personal sacrifices led to all Sharks opting out of the deal, despite recognizing the potential of The Ave’s unique concept.
