Season 5 | Episode 507 | EP507
In Season 5, Episode 7 of Shark Tank, Johnny Georges approached the Sharks seeking an investment of $150,000 in exchange for 20% equity in ‘Tree T Pee’. The company is currently based in Punta Gorda, Florida.
The Tree T Pee is a product designed for those who grow trees and wish to reduce their water consumption. This product has been constructed from recycled plastic. It is placed around the roots of a growing young tree. It is said that the Tree T Pee has the ability to reduce the amount of water consumed per tree from 10,000 gallons of water to just 800 gallons. In addition to this the Tree T Pee is able to combat frost damage to the roots and thus prevent trees from dying. This is a common problem in Florida.
The company is not new. It has existed since 1986. In that time it has managed to sell 127,000 units. The product is manufactured for $2.95 and then sold on for $4.50. This instantly begs the question as to why he is not charging a significant amount more for the product. Johnny Georges states that he probably could charge more for the product however his intention is to ensure that farmers are able to afford the product. He knows that the farming market is in dire straits at the moment with various companies attempting to push down the price of produce. This is forcing many farmers out of the market. He believes $4.50 is the ‘sweet spot’ for retailing his product. Many Sharks pull out at this point seeing his point of view but realizing that this is most likely not a viable business opportunity for them.
The only offer received for Tree T Pee came from John Paul DeJoria. This was in part down to the fact that he believed that Johnny Georges was doing the right thing in the pricing of his product as opposed to the investment potential. He was willing to put up the full $150,000 in exchange for 20% of the company.
Johnny Georges accepts John Paul DeJoria’s offer of $150,000 in exchange for 20% equity in Tree T Pee. This provides him with the funds that he needs to further expand the company that he has been working on for the past twenty years.
John Paul DeJoria has built two billion-dollar brands. DeJoria is most receptive to business concepts that are good for the world and the environment.