Tree T Pee
DEAL
EPISODE SUMMARY
🕓 Air Date: November 1, 2013
Asking For:
$150,000 for 20%
Investor:
John Paul DeJoria
Deal:
$150,000 for 20%
PRODUCT SUMMARY
Tree-T-Pee is a water-containment system designed for agricultural use, offering water conservation and frost protection to maximize crop growth while minimizing water usage.
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Background Story
Johnny Georges, the creator of Tree-T-Pee, resides in Arcadia, Florida, a region deeply entrenched in agricultural traditions. With nearly three decades of experience in the irrigation industry, Johnny’s journey began under the tutelage of his father, who imparted invaluable knowledge and instilled a passion for innovation. As a young man working alongside his father, Johnny witnessed the evolving challenges faced by farmers, particularly concerning water scarcity, a growing concern in the ’80s.
Inspired by his father’s ingenuity during freeze nights, where they used makeshift coverings for trees, Johnny envisioned a solution that could revolutionize irrigation practices. The pivotal moment came when Johnny proposed the idea of creating larger, more durable coverings that could be left on trees year-round to conserve water and protect against frost damage.
Drawing from his extensive experience and guided by his father’s teachings, Johnny embarked on a mission to bring his vision to life. He founded Tree-T-Pee, a water-containment system designed to address the pressing need for efficient irrigation methods while promoting sustainability in agriculture. Rooted in his deep-rooted respect for farmers and their livelihoods, Johnny’s dedication to promoting water conservation worldwide through Tree-T-Pee reflects his commitment to making a tangible difference in the agricultural landscape.
The Product
Tree-T-Pee is a revolutionary water-containment system designed to optimize irrigation efficiency and promote sustainable farming practices. The product works by encapsulating each tree, forming a protective barrier that retains water and shields against frost damage. Unlike traditional irrigation methods that result in significant water wastage, Tree-T-Pee ensures that water is efficiently distributed to the tree’s roots, maximizing absorption and minimizing runoff.
One of the key benefits of Tree-T-Pee is its ability to drastically reduce water usage, with farmers needing only 800 gallons per tree per year compared to the previous 25,000 gallons. This substantial reduction not only conserves water but also translates to significant cost savings for farmers, making Tree-T-Pee a financially viable solution.
Tree-T-Pee boasts several features that set it apart, including its durable construction designed to withstand harsh weather conditions and extended use. Each Tree-T-Pee unit is built to last over five years, ensuring long-term reliability and effectiveness.
Farmers can purchase Tree-T-Pee directly from the company, with each unit priced at $4.50. Despite its affordability, Tree-T-Pee delivers unparalleled value, offering a sustainable solution that enhances crop yield and profitability while promoting environmental stewardship in agriculture. With its innovative design and proven effectiveness, Tree-T-Pee represents a transformative tool for farmers seeking to optimize water usage and mitigate the impact of frost damage on their crops.
How It Went
The company’s position before Shark Tank
Tree-T-Pee has demonstrated robust performance and positioned itself as a leader in sustainable agriculture solutions, particularly in water conservation and frost protection. The company’s success is evidenced by its ability to manufacture 127,500 units and secure a loyal customer base primarily within a five-county area in Florida. Tree-T-Pee’s direct-to-farmer sales model has proven effective, allowing them to maintain profitability by selling each unit at $4.50 with a production cost of $2.95.
As for partnerships, Tree-T-Pee has not yet engaged with distributors or wholesalers, choosing instead to sell directly to farmers. While this approach limits the company’s reach beyond Florida, it has allowed for a more intimate understanding of customer needs and preferences. However, Tree-T-Pee has garnered significant interest from potential distributors, indicating future growth opportunities. In terms of funding, Tree-T-Pee’s initial capital was likely self-funded by Johnny Georges. However, with the recent investment of $150,000 from John Paul DeJoria for a 20% equity stake, the company has gained additional financial backing to support expansion efforts.
Profits have been steady, with each unit sold yielding a profit margin of $1. Despite limited distribution outside of Florida, Tree-T-Pee remains financially stable and poised for growth with available capital from the recent investment. Currently, Tree-T-Pee operates as a relatively small-scale operation, with Johnny Georges at the helm as the founder and primary decision-maker. The company’s structure may evolve as it seeks to capitalize on new opportunities and expand its market presence beyond its current geographic scope. With a strong foundation built on innovation, sustainability, and dedication to farmers, Tree-T-Pee is well-positioned to make a significant impact on the agricultural industry.
The Negotiations:
In the negotiations, Johnny Georges sought $150,000 for a 20% equity stake in Tree-T-Pee. His pitch attracted interest from the Sharks, particularly John Paul DeJoria, who resonated with Johnny’s mission to support farmers and promote sustainability in agriculture. Despite suggestions to increase the product price for distributor margins, Johnny remained committed to affordability for farmers.
Ultimately, DeJoria made an offer aligning with Johnny’s ask, proposing $150,000 for 20% equity. DeJoria emphasized his admiration for Johnny’s values and the importance of making Tree-T-Pee accessible to all farmers. While acknowledging the potential challenges of scaling up without higher margins for distributors, DeJoria believed in Johnny’s vision and expressed his willingness to support the company’s growth. In a heartfelt moment, DeJoria extended his partnership offer to Johnny, emphasizing their shared values and the opportunity to make a positive impact in agriculture.
Johnny gratefully accepted, marking a significant milestone for Tree-T-Pee and securing a billionaire business partner. The negotiations showcased Johnny’s unwavering dedication to his mission and his willingness to stand by his principles, even in the face of lucrative offers. DeJoria’s investment not only provides financial backing but also validation of Tree-T-Pee’s potential to revolutionize irrigation practices and make a difference in the agricultural community.
