Biz Tips: Shark Tank: Saucemoto Accepts $45,000 From Kevin O’Leary

Biz Tips: Shark Tank: Saucemoto Accepts $45,000 From Kevin O’Leary

Biz Tip:

Shark Tank: Saucemoto Accepts $45,000 From Kevin O’Leary

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Friends from Cleveland, Tony Lahood, William Moujaes, and Michael Koury came to the Shark Tank in hopes of finding a strategic business partner willing to invest $45,000 for a 15% equity share of their company, Saucemoto. They created their flagship product while they were on a road trip together. They went through a drive-thru line and sauce for their lunch spilled in Tony’s brand new car. Having a diverse skill set in engineering design, graphic design and creative marketing, they decided to create a product to solve this problem.

The Saucemoto, a condiment holder, is designed specifically to easily attach to any automobile air vent to safely and securely hold ketchup, sauce or other condiments while you drive. The 5-in-1 aperture holds sauce from nearly any fast food restaurant and has been extensively field tested to stand up to most road conditions. They have sold 12,000 units since the company began, netting $77,000 in sales.

The Sharks like the design of the product as well as the price margins. They feel that there are many opportunities to sell this product through cross-selling, as well as offering them as a promotional product for fast food restaurants. Notably, the market also supports this product as 20% of American meals are consumed in automobiles. The Sharks are also impressed with the marketing that Tony, William and Michael have done with the product. They scripted a video highlighting their product that went viral and has been shared over 44 million times.

Kevin O’Leary offers Saucemoto $45,000 for 50% equity. He would like to see this product be sold as an add-on cross-sell item at a drive-up window. Robert Herjavec thinks that Tony, William and Michael are excellent marketers and are in the wrong business. He offers them $45,000 for a 40% share of the company. He wants the team for their marketing and not their product. He thinks the product is actually the people. After hearing Robert’s offer, Kevin counters with $45,000 for a 25% equity share. This would make each of them equal owners. They accept Kevin’s offer.

What do you think of this product? Would you purchase this product as an add-on item in the drive-thru line? Do you think this was a wise investment for Mr. Wonderful, Kevin O’Leary? Sound off in the comments below!

or a full summary of this episode, check out this article. Shark Tank airs on Sundays at 10:00 PM EST.

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