Dave Alwan pitched Echo Valley Meats a year before on Shark Tank in Season 4. Tough questions and no deal from the Sharks caused Dave to go home, develop his business plan. Those tough questions from the Shark Tank Investors helped dave to learn his numbers, including customer acquisition costs! Now, Dave Alwan makes his second pitch in Shark Tank.
Echo Valley Meats changes Shark Tank Offer
His previous ask for three-hundred thousand dollars is cut in half and is now one-hundred-fifty thousand dollars for twenty percent of his company. Dave is bringing Echo Valley Meets back to Shark Tank to make a deal!
Echo Valley Meats specializes in old-fashioned butcher shop quality meats and treats, selling in gift catalog and through their website. Mark Cuban orders from Echo Valley meets for gifts and his household saying his products are delicious.
Company: Echo Valley Meats
Entrepreneur: Dave Alwan
Location: Peoria, Illinois
Episode: Season 6 Episode 22
Sharks: Lori Greiner, Kevin O'Leary, Robert Herjavec, Mark Cuban, Daymond John
Ask: $150,000 for 20% equity
Sales for Echo Valley Meats exploded. He took the advice of the Sharks and split the mail order off into a separate entity. Pre-Shark Tank they did $190,00 and a year later is $1.4 million for just the mail order. The customer acquisition cost is $12, but to retain the customer is $1. His profit is $260,000 or 18.3%. He is projecting $1.8 million with a net of $400,000, and his other business has grown 12%.
The money gives him better buying power after Thanksgiving and Christmas. He can purchase inventory within twelve months, and the product does not change because it is vacuum packed in the freezers.
What do the Sharks say about Echo Valley Meats
Lori Greiner is not a big meat eater, but she loves what Dave Alwan is doing coming back and knowing his numbers. She is out.
Kevin O'Leary makes an offer of $150,000 for 20%, but he wants him to sell Wicked Good Cupcakes on his site. He wants a piece of the whole business. Kevin modifies his offer and reduces the percentage to 17.5% to match Robert's proposal.
Robert Herjavec offers $300,000 for 35% of the whole company.
Mark Cuban offers $150,000 for 25% of the mail-order business, and an option to buy $150,000 for 25% of the other company. He does a deal with Mark, with him saying he'll just eat his money's worth.
Echo Valley Meats – The beginning.
The company is twenty-three years old coming into Shark Tank. Dave is the third generation in the family, but he bought his 150-acre farm and started raising cattle at twenty-one years old. The president of the American Angus Association told him he needs to use Echo Valley Meats because the name is known.
Dave Alwan watched Shark Tank and thought he should look up for auditions. Six days later he jumped on a flight on Friday to audition for Shark Tank. Dave stood in line seventeen hours with 5,000 people. The first person waiting to audition camped for five days.
He got into the Echo Valley Meats mail order business because he already made products for other mail order companies. The Sharks loved his products in the first episode, and they love them even more today. Mark Cuban became a customer and is now an investor in Echo Valley Meats.
Daymond John is vegan, and he tweeted out that he loves the Echo Valley Meats product on the night of the show.
Every entrepreneur spends about an hour pitching their products in Shark Tank, but the average time shown is about eight minutes. Echo Valley Meats received offers from around the world for investment after the show aired, but Dave committed to coming back into Shark Tank and getting a deal.