Villy Custom Bicycles
DEAL
EPISODE SUMMARY
🕓 Air Date: May 4, 2012
Asking For:
$500,000 for 33%
Investor:
Mark Cuban, Barbara Corcoran (50/50)
Deal:
$500,000 for 42%
PRODUCT SUMMARY
Villy Customs offers fully customizable fashion bikes for all ages, allowing customers to select colors and styles to create their unique bike.
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Background Story
Founded by Fleetwood Hicks, Villy Customs was inspired by his beloved dog, DeVille, who also serves as the brand icon. Fleetwood’s background in the fashion industry provided him with the expertise to bridge the gap between fashion and the bicycle market.
The idea for Villy Customs emerged from Fleetwood’s desire to inject creativity and personalization into the often mundane bike-buying experience. Beginning as a traditional brick-and-mortar store, Villy Customs transitioned to online sales, capitalizing on Fleetwood’s design acumen to offer a unique product in the digital marketplace.
The Product
Villy Customs’ flagship offering is its fully customizable bicycles, accessible through their user-friendly website interface. Customers can choose from an array of colors and styles for various bike components, enabling them to design a bike that reflects their individuality.
With prices averaging $641 per bike, Villy Customs targets a discerning demographic seeking both functionality and fashion. Each bike is handcrafted to order, ensuring that no two are exactly alike.
This approach positions Villy Customs as a purveyor of personalized transportation solutions, appealing to consumers seeking to make a statement while on the move.
How It Went
The company’s position before Shark Tank
Despite being in the early stages of its journey, Villy Customs has achieved notable success, projecting $250,000 in sales within its first year of operating solely online. The company’s transition from a physical storefront to an e-commerce platform has fueled its growth, with sales doubling within the first 12 months.
Fleetwood Hicks has personally invested $185,000 into the business, demonstrating his commitment to its success. While Villy Customs has yet to turn a profit, it has garnered enthusiastic feedback from customers, indicating strong demand for its innovative product offerings.
The Negotiations:
During the negotiations, the sharks expressed skepticism regarding the company’s valuation and profitability. However, Barbara and Mark recognized the potential of Villy Customs’ unique business model and made a joint offer of $500,000 for a 42% stake in the company.
After some back-and-forth, Fleetwood ultimately accepted the deal, viewing Barbara and Mark as valuable partners who could provide the resources and expertise needed to propel Villy Customs to new heights. Despite relinquishing more equity than initially planned, Fleetwood expressed confidence in the decision, believing it was the right move for the company’s future growth and success.
