CharCharms Shark Tank Final Deal -SE16EP10

Shark Tank never ceases to amaze me, and if you stick with me till the end, you’ll know for yourself why I said this. Anyway, the first pitch in Shark Tank episode 10 was about an accessory that most people carry but never pay attention to that could be customized in such a way.

Pitch Summary

• Charlotte Trecartin wanted $300K for 10% of her company – CharCharms.
• CharCharms was well on her way to $10M sales this year and if you want to know more about the product, click here.
• She did multiple offers, but still went empty-handed.

Stay Hydrated!

Do you carry a water bottle? Yeah right, you do, like me, my wife, my kids, or any person in the world. But, have you ever thought about turning it into something like a wallet? Where do you carry all the essentials such as keys?

Well, this is what Charlotte did, she hopped on a journey to turn her simple, water-carrying water bottle into a fun and colorful way to accessorize her water bottle with stick-on hooks and charms!

What Is So Special About It?

Even though there is no denying that this product is important, let’s be honest. You can find a similar thing on Amazon without searching too much, right? And, right after Charlotte finished her initial pitch, Kevin said,

“So, there is a lot of crap like this on the market, how is it any different”?

Rightly said so, and Charlotte came prepared and answered in her defense that it was her company that created stick-on hooks and charms on the water bottles.

After that, Charlotte gave a little review on why she chose this. She said that she got this idea during COVID-19 when she was a sophomore at the University of Illinois. There, she loved her water bottle and while everyone was leaving, she couldn’t find it and some essentials.

So, to keep her belongings and her water bottle, she came up with the stick-on hooks, and charms idea to make your water bottles interesting.

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A post shared by CharCharms | Water Bottle Accessories (@charcharms_)

Net Worth, Sales, And Problem

Only a handful of entrepreneurs come on Shark Tank and say that we don’t need a shark or their money for our business, we want them to teach us. And, Charlotte was one of them. Even though she claimed that her merchandising strategy isn’t sorted and she is still figuring it out, her numbers and net worth were exceptional.

In her first full year, which was 2022, Charlotte did $80K in sales. Moving forward, she did around $250K in sales in 2023, and guess what, she is projected to end this year with $10M in sales, and has already achieved $6M.

Shocking, right? Well, a major reason behind this significant surge as she successfully grabbed a few corporate deals with Dick’s Sporting Goods and Target. From Dicks’ Sporting Goods, she managed to get orders for all of their 780 stores in the country. While from Target, she has already started her work to complete their purchase order.

Till now, her company has 17 SKUs, and you know what, it was the last Monday before appearing on Shark Tank that she hired her first employee. Before that, she was a one-man show and managed each and everything.

Coming to her retail and wholesale price – this product comes in a pack and costs $11.99 at Target. The wholesale cost lands between $5 to $5.40 and the cost of goods is $1 to $2.

Sharks Going Berserk Over CharCharms

Mr. Wonderful, who called this product crap was the first one to offer a deal. He offered all the amounts but asked for 25% and said that he would easily provide a great, big distributor that would resolve all her worries. He also hinted that he could offer her product a spot in Walmart.

Then came Daymond who said that his licensing expertise are great, and would love to do it for her for 20% of the company.

Kendra was honest in her opinion as she said that people lose and find water bottles every day, and believed that her product was trendy. So, she was out.

Lori and Mark also wished Charlotte the best of luck as both of them thought that they wouldn’t be very useful to her. So, all she got were two offers; one from Kevin and one from Daymond.

Even though she tried to counter both the sharks on 12.5% first and then moved on to 15%, none of them agreed. Kevin said that he won’t come down to 15% and the minimum he would do is 20%.

Daymond on the other hand said that normally, he does licensing for 30%, and the best he’d do is 17.5%, and not a point lower.

So, as the ball was in Charlotte’s court, she declined both offers and she thought none of them offered her the value worth the company’s shares.

The Financial Analysis

You might want to understand how this company would perform in coming years, simply because they’ve managed to generate millions of sales, right? Well, worry not, because using my financial skills, I’ve managed to calculate the company’s net worth in years to come.