Bouquet Bar
The Bouquet Bar is a company from Orange County, CA, that sells gift sets of flowers and other celebratory items.
The Bouquet Bar sells three different boxed gift sets that can be customized with items related to the person or event being celebrated. There is the small gift set, comprised of three items, the medium set that contains six items, and the large box that contains two items and a bouquet of flowers. There are twenty-two different SKUs of items to mix an match within the sets.
Pricing for the small box is $50 and costs $20 to assemble. The medium box is $75 and costs $34 to assemble while the large is $155 and $68 respectively. Shipping costs between $12 and $15.
The Bouquet Bar has grossed $100,000 in its four year lifetime the business spends an outstandingly high $60 to acquire each customer.
The entrepreneur has invested $600,000 of his own money in the business. According to him, $300,000 went toward website development and the other $300,000 toward inventory.
This deal aired on Episode 9.19.
Making A Deal
Mark took a gamble on the Bouquet Bar and offered the requested $150,000 capital investment but for 20% instead of the 10% originally offered. This, of course, represented a bite for the valuation in half, down from $1,500,000 to $750,000 which was perhaps more reasonable given the revenues over a four year period. The entrepreneur must have agreed because he accepted and walked out of the tank with a deal.