Pet Paint Before Shark Tank
Ever want to paint up or dress your own pet? Well, if your poor dog is anything like mine and hates when you try to dress her (or him) up in human clothes, there’s now a fun alternative. Pet Paint is a great way to decorate your pet for any occasion – and won’t make any mess! Read on more to find out what Pet Paint is, and how Shark Tank helped
Pet Paint on Shark Tank
Abe Gerry is seeking $200,000 for a 20% equity stake in his company. Abe says that what he is about to show the Sharks is incredible, and is one-of-a-kind; pulling the sheet off a table, he reveals his invention, PetPaint. Mark immediately cringes and looks away; this could be a record time for my favorite Shark to exit the deal. Even Robert seems taken aghast, as right below the logo of PetPaint the graphic says “Colored HairSpray for your Dog”. Abe calls for the hounds to be released, and numerous dogs handled by walkers are escorted out. All of them are painted with designs, such as a football jersey, stars and flowers, stripes, and even comes with stencils for each purchased can of PetPaint. PetPaint is veterinarian tested, super dry, washable, and easy to use.
Kevin asks about the inception of the product, asking if Abe woke up one morning and said to himself that he wanted to spray paint a dog. Abe notes that two of the dogs that came out where his, Billy and Monkey, and he tried to get a shirt to stay on Monkey, and some years of research later, he ended up developing PetPaint. Mark asks how much money he has invested total in PetPaint, and Abe replies that over the four years he’s had PetPaint, he has invested around $240,000. All the Sharks are shocked, and at Mark’s questioning, Abe says that it is all his own money. Barb notes that that is a lot of money, and asks why he spent so much; Abe says he still has $200,000 in inventory. Lori says that she is not sure that something like PetPaint is patentable, and Abe says that there are some patents pending on numerous key ingredients but you can’t actually own color on dogs. Kevin asks if the paint will rub off on other surfaces, and Abe says that as long as the paint dries, it does not come off – paint takes 20 to 30 seconds to dry. Kevin also asks about toxicity or what would happen if the dog licked the paint, and Abe says that through testing, PetPaint has passed numerous safety checks with flying colors.
Kevin points out the practicality of the product; very rarely would people want to spraypaint their dogs, unless it was for something such as a holiday or festival or party. Abe asks if Kevin has dogs, and even Barb seems to be taking Abe’s side; Kevin says that instead of dogs, he has children, and Abe points out the idea that “dolling” up pets may be a bit foreign to Kevin; if a dad brings home a dog with stars to an 8 year old daughter’s birthday, the dad is a hero. Robert completely agrees with Kevin, pointing out that Kevin has probably never even thrown a birthday party for his children. Barb points out the hefty amount of money and the percentage of equity that Abe is asking for, and wants to know how Abe came to that valuation. Since the PetPaint came to Abe’s warehouse in March, they have sold over $70,000 worth of paint, and each can sells for $9.99. So far, PetPaint has a 50-store testing deal with Petsmart, and Petsmart wants to retail it, but also put it in use in their salons. This deal is set to start just two weeks after the recording of this episode, and they are shipping $12,000 worth of units (manufacturing, not sales – not 1,200 units) to the 50 store test.
Robert asks for the projection of sales within the rest of the year, and Abe says that within the remaining 6 months of 2013, he is looking to do around $120,000 worth of sales, which would place PetPaint’s revenue at just under $200,000 for the year. The distributors and grooming industry have re-ordered five times; Robert points out the uniqueness of the product for groomers, while Barb points out that she thinks the product lacks a good price. For $10 a can, that is not an easy buy; a can might be purchased for like a birthday party or a Halloween party or other similar events. She does not see it selling well for that pricepoint, and is the first Shark to exit the deal.
Kevin says he wants to tell Abe a story; 4,000 years ago, there was a group of people called the Phoenicians. Who use sea mollusks to create a purple dye they used throughout their kingdom that no other civilization had access too. His point is that if Abe had the “purple dye” that nobody else could make (claim a monopoly on his product), he could “sail off” and make millions of dollars. However, everyone can make a coat spray for their dogs, and for that reason, he is not interested in the deal.
Mark asks how PetPaint is doing online, and Abe says that they are doing poorly online because of the availability of the product in stores. Physical store sales are crushing online sales, and the reason for this is due to Abe wanting to focus on retail stores and not the online sales. Lori says that her first concern is the massive amount of Abe has standing by, and that you should never order inventory until sales have been placed otherwise a situation like the one Abe is in will arise, and he does not know how long he will sit on the current inventory until it can all be sold. For that reason, Lori is out of the deal next.
Mark agrees with Lori in most respects, saying that since Abe invested so much money it shows his commitment, but where he has a huge problem is that Abe was not able to see that online was the best solution. Social media could have been self-fulfilling with minimal risk, and that is a huge red flag that Abe did not see that, and he is out. Abe tries to defend the product, saying that since it is a new and exciting product, not everyone online seeing it on social media would take interest, but Mark starts to lay into him; every kid with an instagram would take a picture of their dog and upload it, and the desire for the product would just spread like wildfire from there.
Robert is the last Shark remaining, and starts by noting that he is usually so decisive in matters like this. Mark brings up a great point, and Robert says that his kids use social media all the time and see cute things like that, which would have caused for his kids to search out the product and go from there. Robert loves the product, but not the fact that Abe has not taken the best initiative to monetize his product. He also does not love the million dollar valuation of PetPaint, and says that he just does not see a deal today. Abe asks what it would take to make a deal, and Barb interrupts and says that she wants to make an offer, re-entering the deal. Barb offers $200,000 in return for 60% of the business, but says she would be doing Abe a great favor since she would be taking over social media and would be able to create a fabulous website and a titanic social media presence. Abe would have to do no work, just sit on the sidelines and count the cash he earns.
Robert says that he is trying to get there and find a deal that makes sense, but he just can’t get there, and he exits the deal. Kevin says that he does not think the company is worth the $200,000 that Abe came in looking for, and he would be insane to not take Barb’s offer. Abe says that he is not looking for a partner that is looking to make the money out of it, and wants a more human partner with interest in the business, and refuses Barb’s deal.
Pet Paint after Shark Tank
After getting “ripped apart” in the tank, Abe went full bore getting his company rolling with online marketing. You can actually now get his product in a variety of nationwide stores and even online at Amazon.com by clicking here.
Best of all his product has expanding it’s market from a simple paint for pets to being used for a variety of events like parades and parties. Probably even cooler is the fact that a lot of animal rescue operations now use the product in their missions to save animals. So overall his product has really been a large success since the end of the shark tank episode and looks like it’s going to be a hit for time to come.