Oprah’s favourite DIY brand landed on ‘Shark Tank’ — and every judge wanted a piece of the $5M business
'Shark Tank' has given many budding entrepreneurs a chance to expand their horizons. However, it's not only the contestants who benefit—seasoned investors are always on the lookout for their next best bet. And in season 13, they found one in Pink Picasso, a DIY paint-by-numbers kit brand founded by Ashley Silfies and Brittany Silfies in 2019. During the pitch, the duo introduced themselves not only as business partners but also as a couple and asked for $400,000 for 5% equity. Explaining how the idea was born, Brittany recalled Ashley once looked at a blank wall and asked, ‘What skills do I have?’”
The housewives-turned-entrepreneurs started thinking of ways to provide for their three children and then banked on Ashley's skills in photography and manufacturing to build the business. It was not only the idea that interested the Sharks but also the staggering numbers. Ashley revealed that while the brand started with only a 1,500 investment, in the first year itself, they were on Oprah's favorite things and made a whopping $1.3M in sales, followed by $3.5M in 2020, and during the time of the filming of the episode in 2021, they were looking forward to generating a revenue of $5 million.
As the Sharks tried to wrap their heads around the numbers, the founders broke down the math and revealed the manufacturing price for each unit is $3.77 and an additional $4 to land, but they are selling at a wholesale price of $19 and retail price of $42, resulting in jaw-dropping margins, leaving the panel stunned. Lori Greiner asked what most of the viewers have been thinking: "What do you need from a Shark?" To which the founders explained that they need a mentor to guide them further in the journey, and also they are looking to get licensing and want to be in big box craft stores like Michaels, but need a "bigger back" to get their foot in the door.
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The first to jump in is Kevin O’Leary, who thinks he can be that mentor and offered $400,000 for 33% of the company. While guest sharks Daniel Lubetzky and Lori Greiner also teamed with them and gave them an offer, $500,000 for 20% equity. But Barbara Corcoran had a different take. She told Ashley and Brittany that they are good on their own and do not need help and opted out of the deal only to jump back in with a very generous offer and say, "I will give you a $400,000 loan for 5% equity with 8% interest." O'Leary then jumps in with a revised deal of $400,000 for 3% equity and a $6 royalty per kit in perpetuity.
The founders had 4 Sharks in on their idea, but knowing their worth, they countered Greiner and Lubetzky's offer and asked if they could lower the equity to 15%. After a moment's pause, Lubetzky smiled and said, "You have a deal." As of now, the brand has expanded its product sales at many stores, including Michaels, as reported by Shark Tank Recap. Ashley told the aforementioned outlet last year that they parted ways with Greiner and Lubetzky. She said, "We all decided not to move forward with closing the deal. They are lovely people, but we are so glad to own 100% of our company currently.”