first in the tank is an exciting treat for special occasions [Music] [Applause] hi sharks I'm Rachel and I'm Erin we're from West Palm Beach Florida and we're here seeking 300 000 for five percent of our company so sharks we brought some gifts for you and what we've got is way cooler than these outdated gift baskets that my granny sends me out of a mail order catalog and definitely way tastier than overpriced fruit shipped to your door now the dominant players in the online edible gifting space they're gonna ship you a basket full of chunks of cheese and chubs of meat that you have to laboriously peel chop up and then artistically present yourself sharks It's Time to Say Goodbye no it's a boring gift and revolutionize the edible online gifting space with 40. ordering is the first company in the world it's been completely pre-assembled catering Quality Cheese and charcuterie boards Nationwide our edible works of art are shipped completely pre-arranged all you have to do is remove your board from its perfectly sealed packaging pour the nuts in the spots where you find them and you have a beautiful chef quality display in just minutes so sharks who's ready to make an unbelievable investment we know it's a lot of cheese but we're gonna make you a lot of cheddar stop the talking start the eating so sharks you have your shark cutery boards in front of you oh wow that's really tasty oh wow so we have a small a medium and a large and one thing to understand about these is they're not custom products these are made in an assembly line and we can make up to 3 000 of these in any given day wow so we've created a new gifting category this is amazing when was this board made because it tastes Super Fresh it's all Super Fresh our standard is next day so if somebody makes an order by midnight the next day we make it completely fresh and then it ships out that same day and it gets to the customer the very next day where is the facility that you're doing this at we have a 15 000 square foot production kitchen in Florida so let's talk about price what does this cost so the one in front of you cost us 91 dollars to produce we wholesale it to our vendors mostly through etailers online for a hundred and fifty four dollars and it retails for 229 including shipping how did you guys come up with this so I've been in a hospitality and restaurants my entire life and while I was in culinary school to make money I started a little catering business and over the next 15 years my wife Julie and I built one of the largest high-end catering companies in South Florida for royalty for celebrities for athletes it was like really a dream come true and then the pandemic hit and it literally like stopped it uh so it stopped everything and so we pivoted and that that's when we bet on e-commerce we hustled for nine months and we launched with a popular online e-tailer and everything changed we went from one online e-tailer the first year then we launched with William Sonoma and then we launched with doordash last year we did 1.8 million in sales and then wow we launched with Costco in Q3 of this year what will sales be this year four million this year wow will you make money yes we'll be profitable we'll do 400 000 as well you don't sell direct if I want to buy it from you we just launched our website in July and how's that working it's been going really well so far we did 30 000 in sales our first month what is your customer acquisition cost uh between forty to sixty dollars in our first initial couple weeks of testing and that's really why we're here we want to build that side of it out is that we're selling through retailers so we don't own any of our own customer data so we get a huge rush of sales in Q4 and then we can't remarket to those customers can you watch the Q3 and we see that there's so much demand for the product Rachel were you working in the catering business is that how you guys met so when the pandemic hit and work went remote my fiance and I decided to move down to Florida to quarantine with my family Aaron had started delivering these boards for local delivery in our area so you were a customer I was a customer yeah and I fell in love with the concept from ordering and Aaron and I got to know each other and we would talk about this Vision he had I've believed in him since the minute I met him are you partners 50. for partners we own 75 together by partner how much has he invested 700 and he helped us build out the entire production facility now there are five giant competitors that sell baskets and gifted items couldn't they simply do this themselves why do you think it's a great question and when we started we were worried about that but what we're doing is so different than pick and packing our facility is built to suit for this type of production that's kind of our secret and that's our secret sauce how we're able to do 3000 either today how much money did you guys put in my wife and I did a 300 000 home equity line of credit we also put in another 150 000 SBA loan and then another hundred thousand dollar line of credit against the catering business and Rachel did you put money in I put in 750 000 for the build out of the facility how much have you invested in total around uh two million total wow man that's correct we can do 70 million dollars plus out of this one facility yep Rachel I couldn't be more impressed with the two of you thank you three hundred thousand for five percent I just don't think the amount of equity we were doing four million this year I'm with you 100 and I just don't like to be a small minority shareholder like that now I'm going to clear the deck make room for the others should have as much cheese as you want yeah thank you I'm out so guys I think what you've done is phenomenal right you deserve a ton of credit your pivot you would show agility curiosity to go into a new space I just think this is reputable to Kevin's Point those big companies they're not stupid they know that it's in their best interest to keep you from building that brand I'm not saying you can't do it I just don't think the economics work for me as an investor so for those Reasons I'm out thank you Mark I understand I know the space inside out I am very worried about competition because I I fought them for years they've built big businesses and they have really good customer acquisition costs so my offer is going to reflect the risk I see but also I bring to the table a brand called Chef wonderful that's been very successful and I think I could get behind this product for you I'll give you the three hundred thousand dollars I want 17 and a half percent equity wow what do you need the money for we think we're gonna need two million just in December and we need all the available Capital we can get to put into inventory and this will help us to be able to run our direct consumer strategy I have an offer I think you're going to need a lot more cash you probably don't even need a partner you probably need a good credit line but I'll give you both I'll give you three hundred thousand dollars cash plus three hundred thousand dollar credit line but I'd like 15 of the business is that undercutting this guy here yeah a little fifteen percent thank you Barbara thank you for the awesome offer I'm gonna make it really simple uh I'll give you 300 000 per hour 13 13. lucky number 13. you have three offers yes what would you like to do our most important thing to us is launching our direct to Consumer strategy and so whoever has the most expertise in that space that's right here no one's done what I've done direct to Consumer consumable gifting nobody you want to sell this one day to Hickory Farms or somebody else that's how this works I know how to get there these two don't well I've sold over 2 000 products over 20 years direct to Consumer I don't think I agree I don't think I agree with what Kevin's saying I've done every product category there is guys you got to pick up pick an offer okay okay so okay she's gonna say it because I am as you can see I'm sensitive and I hate to hurt people's feelings okay Lori would you do it for eight percent oh you guys we've already invested so much in this we've got the whole production process down all we need is someone to pour gasoline on the Fire well let me tell you this and Mark says this all the time say it Mark 40 of a water bill is better than 100 of a grape you know so here's the thing if I blow you up sales then you're going to be thanking me and saying oh I don't care about those viewpoints so I'm gonna stay at 13 you guys [Music] it's time to decide would you do it at 10. you we don't need a lot I mean I will do it at 12. you know what guys I would do it at 10. I would do it at 10 because the best deals we've all ever done are the least needy entrepreneurs where they just call with questions and they just want to support maybe an introduction for nine she's just did that to get me down he's such a he's such a nine nine you got a deal I get three boards now you're welcome guys yeah we love Lori we think she's the perfect partner for us she reaches all of our customers and she was really passionate about the product and I think that's what matters the most we need somebody who's going to help us spread the cheese and she's the perfect partner Mark they were going to do 13. I loved your whole speech right you were staying at 13 and then you went tonight wait you're not subscribed to the Shark Tank Youtube channel well then for that reason I'm out