Fresh Patch Before Shark Tank
Stepping into the Shark Tank is Andrew Feld from Davenport, Florida. Andrew is the founder of Fresh Patch, and he is seeking an investment of $150,000 in exchange for 10% in his company. Fresh Patch is a real grass delivery service for the millions of pets who have everything in their life, EXCEPT for a fresh backyard. Four years ago, Andrew, his wife, and his dog Chloe moved from their house with a backyard into a condo. For a dog, there is nothing worse than not having your own backyard, so Andrew took it upon himself to build a “mini-backyard” on their balcony so Chloe could have some yardage. While Andrew’s wife thought he was crazy, his dog did not.
Fresh Patch on Shark Tank
Andrew stepped into the Shark Tank with a person inside a stuffed animal suit reminiscent of a dog, at which point they high-five since the dog is supposed to emulate Chloe. Chloe absolutely loved the grassy area, but the only problem was that the grass would eventually die off and maintaining it would become a chore. This is where the idea for Fresh Patch was born; Fresh Patch is the first real grass delivery service of its kind. Fresh Patch ships boxes of fresh, hydroponically-grown grass towards their subscribers all across the country. There is no cleaning and no mess – when the new Fresh Patch arrives at your door, simply unbox it and throw the old patch away. Customers use Fresh Patch with all different kinds of pets – it’s easy, convenient, and animals love the feel of fresh grass.
Barbara seems a little shocked, but then asks if she could bring the Fresh Patch box inside. How long would it be until she found an odor, though? However, fresh grass is a plant, and plants naturally break down odors through various complicated chemical processes. Lori takes the time to point out that there are numerous brands of “piddle pads,” which small dogs are trained to go on. However, nobody likes piddle pads since they smell, they can be confusing to use, and if they are not changed in a decent amount of time, they can leak through to the carpet. Grass, however, is instinctive to dogs.
Robert asks if he had a really big dog, but Andrew asks to show the Sharks the Fresh Patch XL. The costumed Chloe helps Andrew to lift off the perimeter of the patch he was kneeling on, which reveals the Fresh Patch XL. The Fresh Patch XL is for a larger-sized dog, and is about a 2 feet by 2 feet measurement. Lori then asks about sales for the Fresh Patch, which Andrew reveals to come out to a million dollar’s worth as of last week. All these sales are from online, as the business is direct to the customer.
Robert points out that Andrew must have a recurring revenue model, which Andrew explains that Fresh Patch has a subscription service. The subscription model is the most popular model, which the most common order being delivered at least once every week. A Fresh Patch delivery costs $25. Mark asks about the subscriber count, which (“on-the-book,” meaning official, Andrew says) is 549. Kevin asks about the attrition rate, the rate of which people try the product and then never come back. Unfortunately, Andrew reveals that about 25% of people who try Fresh Patch actually stick with it.
Barbara points out that 2 out of 3 customers do not order again, which is a concerning number for all of the Sharks – even Robert agrees. Mark refocuses, asking how much a unit of Fresh Patch costs to produce. Each Fresh Patch (there are two variants, the Fresh Patch and the Fresh Patch XL) costs about $5 to produce, including labor. For shipping, the west coast of the United States is about $7 to $8, and when shipping across the United States towards the east coast, the shipping can jump up towards prices of $15. The shipping cost is fully absorbed by Andrew, which prompts Mark to point out that his margins for profit are being killed since Andrew is absorbing the price for shipping.
Mark then asks who is responsible for the technology of Fresh Patch, which Andrew says is all him. Andrew explains, he actually started Fresh Patch the day after he found out his wife was pregnant. The pregnancy was an inspiration, so Andrew built the website himself, started the technology himself, filed for the patent and copyright himself, and has pretty much done everything himself. Robert then steps in, pointing out that he is worried about the 75% attrition rate – Fresh Patch seems more like a novelty, but the sales prove that Fresh Patch has some traction. Robert admits he is curious to see how his dog would take to Fresh Patch, and Andrew offers a free one, but unfortunately, Robert is the first Shark out of the deal.
Lori asks where Fresh Patch is grown, and Andrew explains that each Fresh patch is hydroponically grown in California. Hydroponically means that a plant or natural element is grown, but without soil – the grass can be grown in sand, gravel, or a few other synthetic elements. However, Andrew explains further – with two-thirds of the money that he receives from the Shark Tank, he will begin to invest in an east coast distribution center to cut down shipping costs.
Kevin then drops a reality bomb on Andrew – there is nothing proprietary about what he is doing. However, Andrew has a patent for a portable and disposable living patch of grass. The main competition is pee pads and synthetic grass, but there is also a company that is infringing on the patent. Kevin asks if Andrew is going to “go after them,” and Andrew confirms he is suing that company – Kevin says he is more interested that there is somebody he can actually sue. He finds the idea interesting because if Andrew is successful in his lawsuit, he can recover some of the competition’s customers as part of the settlement.
All of the Sharks take a moment to think, but Kevin breaks the silence and is the first to make an offer. Kevin offers $150,000 in exchange for a 33.3% stake in the company, but Andrew says that he knows that his company is worth so much more than that. Kevin asks for flexibility, but Andrew must stay firm – there is no room for leniency. However, Barb steps in and says that it is too early for counter-offers as only one Shark has made an offer and another Shark has exited, leaving three Sharks still in the game.
Barbara then makes an offer of $150,000 in exchange for 20%, but with one contingency. That contingency is Andrew must begin to gear his operation to move towards pet shops and retail, which surprises Kevin. Barbara, however, feels that the Fresh Patch would be great in pet stores since she believes she knows the pet industry inside and out. She bought a business named “Ryan’s Barkery,” and had to begin to build bridges into the stores but she found that she has great relationships with those people. She finds the Fresh Patch an incredible idea and thinks that the pet stores will be quick to reorder.
This prompts Kevin to drop his offer down to $150,000 in exchange for 20%, making his offer the same as Barb, but he does not include the contingency that Fresh Patch must go into retail. Since Fresh patch is perishable, this can cause a liability, and Kevin is not into tying himself into a liability. Barbara, however, says that each person living in the city feels so bad since they might not have the time to take their dog to the park or to give them the proper exercise, so bringing home a nice patch of grass would feel so good for the owner. The Fresh Patch is more of a feel-good product than it is a productive product for helping the dog.
Lori thinks she knows the huge value of Fresh Patch, but Andrew is just at the tip of the iceberg since he is preparing to move into the east coast. People typically do not like to walk their dogs in the winter, and the Fresh Patch is very competitively priced. Lori thinks for a moment, giving the floor to Mark. Mark agrees with Barbara in that the Fresh Patch is a great retail product, but he also sees it as a tech product which is more interesting to him. Mark then proposes to partner with Barbara, who already said yes, saying that Mark has skills of technology while Barbara has skills of retail, particularly in New York City. Mark proposes that the two of them will take over the accounting and website and accelerate the growth, while Andrew focuses on scaling the operation.
Mark and Barbara offer $150,000 in exchange for 20%, but demand an immediate answer – this is also still contingent on entering retail. Andrew asks to barter on equity, but the Sharks remain silent, and Andrew acquiesces and agrees to partner with Barb and Mark.
Fresh Patch Now In 2022 – The After Shark Tank Update
Unfortunately, the deal with Barbara and Mark never got past the due diligence stage. That doesn’t mean that the company isn’t successful, though. If anything, they’ve grown significantly over the past years.
For one thing, they’ve introduced several additional sizes for their patches including mini, standard, large, and extra large.
Fresh Patch Mini: Measures approximately 16” x 12” inches. Best suited for animals less than 5 pounds (e.g. teacup puppies, bunnies, birds, kittens, turtles, and other tiny pets). Available for $29.95 or $28.45/every two weeks (subscribe and save)
Fresh Patch Standard: Measures approximately 16” x 24” inches. Designed for dogs that weigh up to 15 pounds. Fully disposable; no cleaning required. Available for $34.95 or $33.20/every two weeks (subscribe and save).
Fresh Patch Large: Measures approximately 24” x 24” inches. Designed for dogs that weight between 15 and 30 pounds. Does not come with a disposable cardboard tray (sold separately). Arrives rolled (flat old style is available as well). Available for $39.95 or $37.95/every 2 weeks (subscribe and save).
Fresh Patch Extra Large: Measures 2’ x 4’ feet. Ideal for large dogs weighing more than 30 pounds. Available for $44.95 or $42.70 every two weeks (subscribe and save).
Not only that, but they’ve also started selling packs that come with a custom wooden sleeve (available for bunnies, kitties, and puppies). Various training treats are also available from their website such as chicken jerky and sweet potato treats, all of which are all-natural.
That’s not all, they also offer dog potty sprays that are designed to be used with their grass patches. There are two kinds—a Stay Fresh Dog Potty Spray and a Go Here Dog Potty Spray. The former is designed to help keep your pet’s potty area smelling clean and fresh while the latter is a proprietary scent that that’ll encourage your pet to eliminate on the fresh grass patch. Both retail for $22.95, though they do go on sale regularly.
They also sell plastic trays, which are a great option for those who do not want to use the functional cardboard box or wooden sleeve to house the grass pads. For example, they’re ideal for dogs who have a tendency on chewing on cardboard or if you plan on using the grass patch outdoors in the rain or show. Like the patches, there are four sizes are available: mini, standard, large, and extra large.
For those who are interested in their patches and other products, you can check out their website here. They currently offer free FedEx shipping on all orders across the United States. You can also sign up for their email newsletter for the latest on sales and new releases.