Mark Cuban blindsides 'Shark Tank' co-stars Daymond John and Kevin O'Leary with Snow Scholars investment
Snow Scholars provides reliable and affordable snow removal services for both residential and commercial properties, helping homeowners and businesses avoid the frustration and challenges caused by heavy snow during harsh winter conditions. The seventh episode of Season 16 of ABC's 'Shark Tank' featured Philip Loveland and Jake Piekarski, the co-founders of the fledgling organization.
In addition to pitching Snow Scholars to the Sharks in the hopes of signing a contract with at least one of them, the product attracted a lot of interest due to its innovative approach to snow removal. The firm was established in late September 2022 to give students well-paying employment on campus and resolve the snow removal issues that many households were facing.
Snow Scholars aims to expand beyond the USA
Jake and Philip walked into the Tank during the Friday, December 13 episode, seeking $75k for 10% for their brand. The snow removal firm has allegedly paid students over $100,000 in student pay since its foundation.
The company has also completed over 3,000 snow removal projects for over 1,000 clients. In the year of their 'Shark Tank' debut, they were available on two college campuses and planned to open four more. In addition to the United States, the company sees Canada as a potential market for expansion. Jake initially owned 100% of the business, but when Snow Scholars generated $270K in revenue, Philip earned a 30% stake through sweat equity.
Snow Scholars continues to be profitable
The company's average cost per snowfall is $74.56, and its flat pricing model has proven popular with clients. With a net profit margin of 73.3%, they have optimized productivity by developing their software.
They generated $116,800 in sales and $85,500 in profit. The company paid each student $25 per hour, making it the highest-paying job on campus, and allowing students to earn up to $185 per day.
The business started in November 2022, and they had $18K in sales that first snow season, with $13K in profit. Their customer acquisition cost stands at $7.08, and each customer spends about $814 on the company.
Mark Cuban swooped in with last-minute deal
Kevin O'Leary offered $75k for a 20% stake in the business. Daymond John, who had experience in this industry during his youth, swooped in at the last minute and matched Kevin's offer. However, Robert Herjavec decided not to invest because he believed the company lacked scalability and would have difficulties in the long term.
In the end, Mark Cuban swooped in by offering $150K for 20%. Even though he was asking double what the boys were initially offering, they ultimately went with Mark, given the valuation stayed the same.
'Shark Tank' Season 16 airs on Fridays on ABC at 8 pm ET.
For those who miss the episode, it will be available on demand the following day and on Hulu. Additionally, viewers can explore past seasons and episodes on Amazon Prime Video and iTunes.
