Element Bars on Shark Tank - Update
Custom Energy Bars - Season 1 - Episode 6
|Jonathon Miller on Shark Tank Show|
If I could choose one former Shark Tank contestant to take with me and help with negotiations, Jonathon Miller would be high up on that list. In fact, during the show, Barbara Corcoran calls Jonathon a mini Shark for his negotiation skills. He was asking $150k for 15% stake in his custom-made energy bar business valuing it at a whopping $2.25 million. The company was averaging 1000 custom energy bars per week at that time. The custom bars retail for $2.99 so approximately $12k/Month in sales. Apparently, this valuation could be considered way out of line on the surface BUT
Miller did a fantastic job in persuading the Sharks this was his passion, and they're getting a chance to invest before he takes this to the next level. He needs this investment to expand the operation just to keep up with the orders.
Before the Shark Tank Aired
|Customized Energy Bars Made Just For YOU!|
The Shark Tank Show started, and they still couldn't bring the site online. Knowing thousands of people will soon be coming when the Element Bars make their appearance on national T.V., they worked even harder to fix the problem. It was now Jonathon Miller, and the Element Bars turn as he walked into the Shark Tank in front of 5 million+ people. And POOF, as if on cue, the website came back online without a minute to spare. Within moments, the website received tens of thousands of visitors from around country. The site was brought to a crawl but continued to operate and bring in a flood of new orders.
Element Bars Gets Deal on the Shark Tank
The way the negotiation were going, it wasn't clear Jonathon would even make a deal with the Sharks. The investors were put in a position with someone negotiating on their level, and this may have thrown them off their game. Miller knew his product, he knew the market and most importantly, he knew himself and the belief this was a multi-million dollar idea that will succeed. It would be great having a Shark invest in the business, but it was not going to be the end of the world if he couldn't make a deal.
The advantage gave Miller the confidence to negotiate from a controlling level throughout the negotiations. Daymond John likes the concept, and the Branding aspect's of this business and offers Miller the $150k he was looking for but wants 75% of the company.
Kevin Harrington, already having success in the customized vitamin industry, offers Jonathon $150k for 100% of his business with a 4% royalty on future sales. Not seeing any motivation for him in the future of either of these deals, he declines both offers, and looks intent walking away with no deal. The strategy worked and got Harrington to reconsider and drastically change his offer. He lays out the same terms but for 30% of the business instead of 100%. The percentage leaves Miller plenty of motivation to continue building the Element Bar's Brand and accepts the offer.
Element Bars Update after the Shark Tank Show
Jonathan Miller successfully completed a deal with Kevin Harrington after the show. Even with the website problems, they still managed to sell more custom energy bars within the first 24 hours after the show; then during the first half of the entire year. Jonathon also was very proud that the search term "Element Bars" was the third most-searched term on Google that night, behind only Kayne West and Taylor Swift. Remember that?
So how many custom-made Element Bars are being produced a day? According to Miller, they're on track to make one million energy bars in 2012 alone. As for 2013, the sky's the limit as word continues to spread on this unique and specialized custom made product.
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