The Living Christmas – Tree Delivery And Pickup
DEAL
EPISODE SUMMARY
🕓 Air Date: December 4, 2012
Asking For:
$150,000 for 30%
Investor:
Mark Cuban
Deal:
$150,000 for 40%
PRODUCT SUMMARY
The Living Christmas Company offers live Christmas tree rentals, delivering them to customers' homes before Christmas and picking them up afterwards, aiming to revolutionize the holiday tradition.
WATCH HERE
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Background Story
Scott Martin, known as “Scotty Claus,” conceived the idea while delivering Christmas trees at 17. Frustrated by seeing discarded trees, he envisioned a rental service for live trees. In 2008, he turned this idea into reality, starting with a web platform and a hundred rented trees. Over the years, the company grew, delivering over 1,300 trees annually. Scott seeks investment to expand nationally and change how Christmas is celebrated.
The Product
The Living Christmas Company offers a unique service of renting live Christmas trees. Customers can choose from various tree options online, and the company delivers the tree to their home before Christmas and picks it up afterward. The trees are kept alive in containers, providing a sustainable alternative to traditional cut trees.
Pricing ranges from $100 to $200 per tree, with options for different sizes and varieties. Customers can book their trees through the company’s website, and there are penalties for damaging or not properly caring for the tree.
How It Went
The company’s position before Shark Tank
The Living Christmas Company has been operating for four years, primarily in Southern California. They have seen growth, delivering over 1,300 trees in the previous year with a profit of $33,000. However, the business faces challenges such as seasonal demand, pricing competition with traditional tree purchases, and the need for capital and infrastructure to scale nationally. Martin is passionate about creating meaningful jobs, particularly for veterans, and emphasizes the environmental benefits of their service.
The Negotiations:
Initially, the sharks expressed concerns about the business model’s scalability, profitability, and market competitiveness. While some sharks opt out due to these concerns, Mark Cuban sees potential in the company’s mission and offers $150,000 for a 40% stake. He emphasizes the need for collaboration to overcome challenges and scale the business effectively. Scott accepts the deal, excited about the opportunity to work with Mark and share the company’s vision with a broader audience.
