Shark Tank

Season 1 Episode 5

Episode 105

Aired Sunday 9:00 PM Sep 06, 2009 on ABC

Episode Recap

The first person in the Shark Tank is Cactus Jack, a lifelong entrepreneur with a new product to pitch. Cactus introduces himself and his daughter Kelly and says he has a new fitness device called the Body Jac and is looking for a $180,000 investment for a 20 % share in his company. After explaining the background that led to his inventing the product and getting Kelly to demonstrate the product, Cactus Jack says the product is patented and relates the costs to make and what it will sell for. Kevin O'Leary says the fitness market is flooded with products like this and the key is to tie a big name to it to push sales. Asked if he has had success selling products like this before, Cactus Jack relates his past success and financial failures and says they are investing in him as much as the product itself. Kevin O'Leary, citing the fact that he is taking all the risk in such an investment, says he is out. Robert Herjavec says the dots don't connect for him and says he is out. Kevin Harrington says he loves the market and is willing to invest $90,000 but wants half the company and tells Cactus Jack he'll have to get one of the other Sharks to go in on the deal. Barbara Corcoran says she's willing to put up $90,000 but on the contingency that Cactus Jack use the machine and lose thirty pounds in the process with before and after pictures taken as proof. Daymond John is interested in the Cactus Job company and says he'll put up $180,000 and no weight loss contingency but wants 50% of everything Cactus Jack sells. Cactus Jack takes Kevin and Barbara's offer and after they shake, Kevin O'Leary says the deal will never happen as he doesn't think Cactus Jack will lose the required weight.

The next person to enter the Shark Tank is Irinia Blok introducing a product she calls Face Block and is looking for a $50,000 investment in return for a 30% stake in her company. Irinia says Face Blok is a collection of fashionable surgical masks for people looking for a unique and creative item to wear. Kevin O'Leary asks if there are any sales and Irinia says she had a couple hundred in sales. Kevin Harrington asks if they do designs like this on masks in foreign markets and Irinia says no. Kevin O'Leary asks Daymond if its something that can be a fashion in the States and Daymond says no. Barbara says its too freaky for her and she's out. Kevin Harrington says its a novelty item and he's out. Daymond states that he agrees with Kevin and he's out. Robert says Irinia should do this a side business and not as a main one and he's out. Kevin O'Leary says its a unique idea but its not an investable concept and he's out.

Jeff Cohen is the next person to enter the Shark Tank and is seeking $175,000 for a 25% share in his Granola Gormet company that specializes in gourmet diabetic foods. After handing out samples of the bars, Jeff says he wanted food he could eat as a diabetic and his wife would like it as well. Jeff goes on to say that his sales are around eight to ten thousand dollars a month in the southern California region for twenty four stores. Robert asks why the product hasn't been rolled out nationally and Jeff states he doesn't have the money needed for such an endeavor and can't get a bank loan due to the fact he had a personal bankruptcy in the past. Robin and Kevin O'Leary don't like the company evaluation Jeff has proposed. Kevin Harrington says Jeff's business is not unique as far as he's concerned and he's out. Daymond says he didn't like the taste of Jeff's bars and he is out. Barbara says Jeff needs more money but she doesn't think she'd ever see a return on her investment and she's out. Kevin O'Leary says Jeff's personal bankruptcy means he'll need a partner to be a bank and for him, that means Jeff is radioactive and he's out. Robert says no one is radioactive as far he's concerned and says Jeff doesn't seem focused on maximizing what he has now and for that reason, he's out. After Jeff leaves, Robert and Kevin O'Leary argue over Kevin's choice of words but Kevin says there are a million people like Jeff and send in the next person already.

Rikki Farrar is the next person in the Shark Tank looking for an investment of $50,000 for a 25% stake in her company Good Grief Celebrations. Rikki says her company specializes in handling funeral arrangements for a client with an emphasis placed on a celebration of life. Robert asks Rikki what her sales are and Rikki says she had eleven thousand in sales in the past year. Robert asks where Rikki got the idea for her business and Rikki states that her mother expressed a desire for her funeral to be a celebration of life before she passed away. Kevin O'Leary loves this idea of business but most of what Rikki does is already done in most funeral homes. Rikki goes on to say she takes a therapy dog to hospices and nursing homes where terminally ill people are staying to drum up business. Robert says this is taking advantage of people though Kevin O'Leary disagrees and he has a problem with that and he is out. Barbara says its creepy to her and sees it as a one person business and she's out. Daymond says the business doesn't have enough profit or sales and he's out. Kevin Harrington states he views it as an ambulance chasing business and he's out. Kevin O'Leary says the problem is Rikki is not making enough money and for that reason only, he's out. After Rikki leaves, Kevin O'Leary defends his position and restates the fact that Rikki didn't make enough money.

Rodolfo and Alexis Saccoman, brothers originally from Brazil, enter the Shark Tanks looking for an investment of $80,000 for a 20% stake in their website My Therapy Journal. The brothers explain their website is an effective and cost efficient online alternative to traditional therapy where members can write journals and compare their moods using graphs over a time frame. Kevin O'Leary asks how an investor makes money and he is told they have paying customers who pay $7.95/month with additional rates for long term buyers. Daymond asks how much money they grossed last year and the brothers relate they made $4,000 as most of the members signed up for free trials with a retention rate of 10%. The brothers relate they have poured a lot of their own money into the site with little to no advertising and in response to a question by Barbara, the brothers relate they have 121 paying customers. At this point, Barbara says she doesn't like the business idea and she's out. Kevin Harrington says the customer base is too small and he's out.

The brothers bring up that they are in discussions with the insurance company Etna to bring customers to their website. Hearing this, Robert and Kevin O'Leary interest in the website is increased and Kevin O'Leary offers $80,000 for a 50% stake. Robert is willing to go in on the deal with even more money providing the insurance company part is completed as the website is worthless without it. Daymond says he wants in on the deal and Robert offers $80,000 for 51% of the company, which Barbara points out to the brothers that the percentage difference should be noticed by them. The brothers step out to talk over the deal and return to counterproposal a 49% stake for the investors. Kevin O'Leary says Daymond is no longer part of their deal and Daymond interjects to offer $120,000 for a 50% stake. Robert brings up Kevin and his own past on the internet and Daymond points out they want control of their company. The brothers say they need expertise and take Kevin O'Leary and Robert's offer of $80,000 for a 51% stake.