Season 5 | Episode 511 | EP511
In Season 5, Episode 11 of Shark Tank, Jocelyn Fine & Kelly Dineen approached the Sharks seeking an investment of $150,000 in exchange for 30% equity in ‘Fohawx’. The company is currently based in New York, NY.
The Fohawx is a product designed for children. The Fohawx is a ‘Mohawk-like accessory’ which can be attached to any safety helmet. The intention of the product is to make it more appealing for children to wear ‘bland’ safety equipment which they may otherwise refuse to wear. It certainly is a very unique idea.
At the time of the pitch the Fohawx was already for sale in 80 speciality stores around the United States. This intrigued the Sharks until the duo let the actual figures slip. They sated that they had sold just 5,000 units in a year. This generated just $50,000 in sales.
The Sharks believed that the biggest downfall for the product and the reason as to why it had achieved so few sales down to the price point. The company was selling the product for $19.99. It cost $5.00 to manufacture. The Sharks believed that $9.99 would lead to more sales but this would obviously trim the profit margin considerably.
The Sharks did not believe that the product looked good enough to sell in mass quantities. They claimed that it appeared to be designed by a child (which it technically was). They also believed that they simply would not make their initial investment back at all. The market was far too small and the chances of the company actually becoming ‘big’ were slim to none. In short; there was no way to make money.
As the duo were unable to secure any offers of investment for the Fohawx they had very little choice but to leave the Shark Tank without an investment and to have a go at getting their product to mass market alone.
The Sharks were unwilling to make any offer for a stake in Fohawx. All of them believed that it would be impossible to make back their initial investment in a reasonable amount of time. The company was far too small for them to work with and there was no sign that it was going to get bigger.