The Bouqs Company
NO DEAL
EPISODE SUMMARY
🕓 Air Date: May 2, 2014
Asking For:
$258,000 for 3%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Bouqs Company offers simplified bouquets with transparent pricing and eco-friendly sourcing, aiming to revolutionize the online floral industry.
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Background Story
The Bouqs Company was founded by John Tabis and his co-founder J.P. Montúfar. Tabis brings a wealth of experience in front-end operations, marketing, and branding, while Montúfar contributes expertise in floral farming. Their journey began with a shared frustration over the lack of genuine online floral solutions. Tabis, with his background in marketing and branding, recognized the opportunity to disrupt the traditional floral industry by offering transparent pricing and eco-friendly sourcing. Montúfar’s knowledge of floral farming further fueled their vision for The Bouqs Company.
The idea for The Bouqs Company emerged from their desire to provide consumers with fresh, sustainably sourced flowers without the inflated prices and hidden fees commonly associated with traditional florists. They saw an opportunity to streamline the floral buying process by offering simplified bouquets with upfront pricing, sourced directly from eco-friendly, sustainable farms located on the equator.
Combining Tabis’s passion for creating memorable customer experiences with Montúfar’s expertise in floral cultivation, they set out to revolutionize the online floral industry. Their commitment to transparency, quality, and sustainability drove the development of The Bouqs Company, positioning it as a disruptor in the market. With a shared vision and complementary skill sets, Tabis and Montúfar embarked on a mission to redefine how consumers purchase and experience flowers, ultimately establishing The Bouqs Company as a leader in eco-friendly floral delivery.
The Product
The Bouqs Company offers a diverse range of bouquets sourced directly from eco-friendly, sustainable farms located on the equator. Each bouquet is carefully curated to provide customers with fresh, high-quality flowers that are harvested upon order to ensure maximum freshness and longevity.
Customers can browse The Bouqs Company’s online platform, where they are presented with a variety of bouquet options categorized by occasion, flower type, or color scheme. The website features transparent pricing, with all bouquets priced at $40, inclusive of shipping costs. Additionally, customers have the option to upgrade their bouquets for an additional fee, allowing for customization based on personal preferences or special occasions.
The Bouqs Company distinguishes itself from traditional florists by eliminating hidden fees and offering a simplified, user-friendly purchasing process. Bouquets are shipped directly from the farm to the customer’s doorstep, ensuring a seamless and convenient experience. With a focus on sustainability and ethical sourcing practices, The Bouqs Company provides customers with peace of mind, knowing that their purchase supports eco-friendly farming practices and promotes environmental conservation.
How It Went
The company’s position before Shark Tank
The Bouqs Company has demonstrated robust growth and a strong position in the online floral industry since its inception. With $700,000 in sales year-to-date and minimal marketing expenditure, the company has proven its ability to attract and retain customers. The company’s transparent pricing, eco-friendly sourcing, and commitment to quality have resonated well with consumers, contributing to its success. The Bouqs Company has cultivated partnerships with eco-friendly, sustainable farms located on the equator, from where they source their flowers.
These partnerships ensure that the company delivers fresh, high-quality bouquets to its customers while supporting ethical farming practices. Additionally, The Bouqs Company has established relationships with media outlets and influencers, leveraging PR opportunities to increase brand visibility and attract new customers. The company primarily targets individual consumers looking for fresh, sustainably sourced flowers for various occasions, including birthdays, anniversaries, and holidays. By offering a wide range of bouquet options and a user-friendly online platform, The Bouqs Company appeals to a diverse customer base seeking convenience and quality in floral purchases.
In terms of funding, The Bouqs Company raised $13,000 in a friends-and-family round at the outset, followed by a seed round of $1.1 million in May. The company’s valuation post-seed round was $5.2 million. However, during the pitch on Shark Tank, The Bouqs Company sought an additional $258,000 in funding, indicating ongoing efforts to secure capital for expansion and growth initiatives. The Bouqs Company operates with gross margins ranging from 40% to 50%, demonstrating healthy profitability. The company’s lean business model and efficient operations contribute to its financial stability and position it for future success.
The Negotiations:
During the negotiations on Shark Tank, The Bouqs Company sought $258,000 in exchange for a 3% equity stake. Despite presenting impressive sales figures and a unique value proposition, the Sharks raised concerns about the company’s valuation, competitive differentiation, and scalability. While the Sharks acknowledged The Bouqs Company’s transparent pricing model and eco-friendly sourcing, they questioned the sustainability of its competitive advantage in a crowded market.
Furthermore, they challenged the company’s valuation, with Kevin O’Leary expressing reluctance to invest at such a high multiple of earnings. Ultimately, none of the Sharks were convinced to make an offer. Mark Cuban highlighted the challenge of achieving a successful exit in the floral industry, while Barbara Corcoran criticized the company’s name, branding, and perceived lack of differentiation.
Robert Herjavec and Lori Greiner also opted out, citing concerns about the company’s high valuation and uncertain exit strategy. Despite the setback, John Tabis remained optimistic about The Bouqs Company’s future and expressed gratitude for the feedback received from the Sharks. The negotiation showcased the challenges of securing investment in a competitive market and highlighted the importance of addressing investor concerns regarding valuation, differentiation, and scalability.
