Rock Band before Shark Tank
Rock Bands is a company founded by Lee Dahlberg. Lee created a band for himself and learned there was demand because everyone who saw it wanted one. Lee Dahlberg was a fashion model before coming on the show so having a background and passion in this industry led to Lee selling his house to start the company. Lee was getting interest from retailers for his product originally. However, many problems approached Lee while he was growing his company for almost five years which led to fewer sales than he would have hoped. Lee applied to be on Shark Tank hoping to get help from the Sharks to address these problems and grow his business and was invited for season four.
Rock Band on Shark Tank
Lee entered the tank seeking $100,000 for 20%. Lee began by explaining his product was exactly as it sounded as it is stones on bands, but mentioned the stones contained “healing elements”. It also came with a backstage equipment case that revealed the meaning of the stone. Lee then stated he got into retail, but mentioned he faced many challenges with it. All of a sudden, Mr. Robin Leach, a well-known face to the rich, comes in and starts marketing the product as well which has all the Sharks laughing and engaged.
Kevin first addressed Lee’s statement of his product healing powers and Lee stated it was only an expression as the item makes people smile. Lee then mentioned he had done $300,000, but over five-and-a-half years which upset the Sharks. Lee tried to move away from this concern by revealing that a recent Italian company licensed the product name “Rock Bands” in America from him and he would get 40% of sales. The sharks quickly asked if the 40% would be from gross or net and Lee made a classic mistake of not answering the question directly which always upsets the Sharks, but eventually told them it was 40% of profit. Lee added another concern as he had a $150,000 purchase order, but the company canceled and Lee took no action to try to get the deal legally closed.
Mark, like he commonly does, tried to move toward the positive side of the business by asking for numbers and Lee said it was $12 to make the entire set, the set wholesales for $50, and retails for between $100 and $150 which impressed the Sharks. Lee also mentioned he needed the money to update his website and to hire lawyers as other people were infringing on his trademark such as with clothing that said “Rock Bands.”
Kevin made an offer of $100,000 for the entire company because he only saw interest in the brand and felt he could make money from that, not from the product Lee was selling. Barbara made a rare statement by mentioning Lee was unlucky and that his luck wouldn’t change, but all the Sharks moaned and felt Barbara was being hasty. Barbara ignored them and stated she wanted to go in with Kevin on his deal which he happily accepted. Daymond was interested because of a previous successful investment made in a similar industry and offered Lee $100,000 for 40% if Mark would come in, which he did.
Barbara stated to Lee that selling his company would open him to new opportunities rather than having to deal with the problems he has had. Daymond and Mark sold Lee on their previous success stories in the jewelry line and felt they could license it if need be. After hearing from Daymond that he needed a response or he would go out and seeing potential in the licensing space, Lee took Mark and Daymond’s offer and left the Tank very happy.
Rock Bands after Shark Tank
It appears the deal with Daymond and Mark did not close as Lee’s website states they are still seeking investors. The previous problems Lee faced such as with infringement is the likely reason for the deal not closing.
Rock Bands as a company still exists as customers can go to Lee’s website and purchase product. However, it does not appear Lee’s business has grown much since the show and it appears he isn’t very active with his company as his Facebook page has not been updated in over a year.
Lee did a good job in the Tank by addressing the problems with his business and how he was trying to solve them as hiding any problems within your company will lead to a loss-loss situation in the long-run even if a deal is made as the Sharks will find out in due-diligence. It is likely, however, that there were more problems than mentioned on the show and that this has stopped Lee from wanting to really grow the company. It does not appear that Lee’s company will grow in the future as he has been seeking investors for a while and does not appear to be really pushing to get them, but he still has a great trademark and the experience of starting a business.
Where can I buy this product?
Lee still sells Rock Bands at http://www.leatherrockbands.com