Did you know that after dogs and cats, which animal is most loved by the Americans? Well, take a wild guess. Leave it, it’s chicken! Surprised? Let me tell you another shocking fact. Around 10% of the American households have a backyard chicken.
Well, you might have guessed that this pitch is going to revolve around chickens. So, let’s start:
Pitch Summary
- Eric Diedrichsen is seeking $300K for a 10% stake in his company – Riverbend Resources.
- Even though it took some convincing, Daymond finally invested in the company.
- Essentially, Riverbend Resources sell patented chicken feeders. Read Riverband Resources Product Review.
The Chicken Feeders
Though I have a dog, I never really wanted a chicken as a pet. I have always thought of chickens as a high-maintenance animal as their feed makes too much mess. As Eric said, chicken feed is almost all the time polluted with feathers as chickens may get excited and jump in their food. And sometimes, they may poop in their feed as well which makes it a least attractive site.
Nevertheless, chicken feed in my backyard is too horrible to imagine and I believe it is one reason I never really went for chickens.
But as the narrator said, “A more efficient way to feed a popular pet”, Riverbend Resources is changing the way we feed chickens.
So, How Does It Solve the Problem?
Riverbend Resources have a few patented products, such as Poultry Pro Feeder – a simple plastic product that fits to all plastic containers. Just install in your plastic container and add your feed to it.
However, the chickens would have to put up their beaks inside the plastic gadget to eat the feed. And it is genius because this way, no feed will be spilled and hence, no waste of feed or no mess will be caused by it. Plus, during extreme rains, there is no need to put a blanket or put in under a shelter as the product is water proof.
The second gadget he introduced was the Poultry Pro Waterer. As the name suggests, this product is specifically designed for the water purpose of the chickens. Just put this plastic product on top of your container, and it would hold up to 5 gallons of water with ease. And, not to mention that it can be applied to any standard plastic water bucket and has self-cleaning and self-filling options too.
A Little Insights on Net Worth and Financials
Coming to the important part. You might be wondering how in the world Eric has put a $2M net worth on his company, right? Well, it is because his company has done over $3M in lifetime sales! And not just this, this year alone, he has done over $1M in sales, and looking to end up at $2M.
The product only costs around $5 to make and the retail price? Well, 30 bucks for the whole kit. Wow! That leaves him behind with a profit margin of around 25% to 40%.
| Metrics | Values |
| Life time sales | $3M |
| This Year | $1M |
| Projected | $2M |
| Cost to Make | $5 |
| Retail Price | $30 |
| Net Profit Margin | 25 to 30% |
So, what is the problem?
Knock-offs! The killer of business where other people simply copy-paste your product without considering how much time and hard work you’ve done on the product. As Eric’s product got into the limelight, knock-off came in to dim the spotlight.
Anyway, Eric is bravely fighting the knock-offs as he gets the patent. Plus, he has already entered retail, almost in all the major retail outlets around the country. Moreover, he also has a federal temporary restraining order against the knock-offs.
Were Sharks Impressed?
For sure, sharks were impressed but weren’t willing to invest in the company.
- Lori: I like the eggs, but I’m not the right person for this.
- Robert: Great product, but cannot add anything new to this.
- Mark: I don’t have the slightest clue about this product. Also, he objected if it was true that 10% of American households actually have a chicken as a pet.
- Kevin: Liked the concept and was shocked to see how big the chicken feeder market is. But as he had no idea about the industry, he opted out as well.
In the last, it was Daymond who actually had chickens back home. Since he admitted that he used the old feeders and these ones were impressive as hell, he decided to offer the money for 25%. Upon countering, he came to 20% and got the deal.
| Sharks | Deal Offered | Remarks |
| Lori | No | Loved the product, but admitted not the right person |
| Robert | No | Said he couldn’t add anything to the company. |
| Mark | No | Unaware of the market |
| Kevin | No | Had no clue how the chicken feeder market worked |
| Daymond | Yes | Secured the deal. |
Riverbend Resources Updated and Estimated Networth
With so little financial data to play around, it often becomes difficult for me to make these assumptions. Anyway, to my best knowledge, I will do it and again, it might not be correct, it’s just a mere prediction of how well the company could perform in years to come.
| Year | Projected Sales Revenue | Projected Cost of Goods Sold (COGS) | Estimated Gross Profit | Net Profit Margin (25-30%) | Estimated Net Profit |
| 2025 | $2M | $333K (Assuming $5 per unit) | $1.67M | 25% – 30% | $500K – $600K |
| 2026 | $3M | $500K | $2.5M | 25% – 30% | $750K – $900K |
| 2027 | $5M | $833K | $4.17M | 25% – 30% | $1.25M – $1.5M |
| 2028 | $8M | $1.33M | $6.67M | 25% – 30% | $2M – $2.4M |
| 2029 | $12M | $2M | $10M | 25% – 30% | $3M – $3.6M |
