Shark Tank fans watched Deidrea Haysel pitch Hot Mama Gowns in Season 2 to the Sharks. She is incredibly passionate, has a part-time business that is debt free, and she works from 10 PM to 2 AM every night. The problem is her sales are $14,000 over the previous two years.
Hot Mama Gowns wants Strategic Partner
Hot Mama Gowns needs the Shark Tank investors to up her order size, bringing down the cost and helping her to get distribution. Deidara wants to take her business to the next level with a strategic partnership.
Season: 2 Episode 205
First Run: 2011/04/11
Sharks: Kevin Harrington, Daymond John, Kevin O'Leary, Barbara Corcoran, Robert Herjavec
Company: Hot Mama Gowns
Entrepreneurs: Deidrea Haysel
Ask: $30k for 20% equity
Deidrea's product, Hot Mama Gowns makes expecting moms feel beautiful. She tells the Shark Tank investors that she had to wear two gowns to cover her front and back side, making her extremely uncomfortable. Now, there are multiple sizes and designs to fit moms for their needs with her product.
“Give me your money!” Deidara demands laughingly to the Sharks. She wants the Shark Tank Investors to leverage Hot Mama Gowns and grab a part of the 4.6 Billion Dollar market. She has sold 100 gowns at $8 a month according to Daymond John's calculations.
Hot Mama Gowns is $119 at retail; cost is $49 all in. The price is high because she doesn't have enough quantity, and that's why Deidrea is pitching the Shark Tank Investors.
Deidrea is a pharmaceutical representative by day, mom, and wife that has to work her business after she takes care of everything else in her life. Part-time is a problem with the Sharks Tank investors because she is asking them to invest in Hot Mama Gowns.
Deidrea claims Hot Mama Gowns is a brand that people know and respect.
What do the Shark Tank Investors say about Hot Mama Gowns?
Daymond John has a lot to say to Deidrea. He starts by explaining that they value companies by the revenue and profit of a business. Hot Mama Gowns has virtually no income, making it extremely hard to evaluate. Daymond wants to know how do you educate the entire country?He said Deidrea would not learn from him, so he is out.
Daymond commented, “It is what you think you already know, that will prevent you from learning.”
Kevin O'Leary wants to understand how this business could grab 10% of the market share over the next five years. He doesn't see that happening. Deidrea's response saying people and retailers are coming to her does not work given that her sales are minimal.
Deidrea is a firecracker sales lady, with a great idea, but she doesn't have any distribution, according to Kevin O'Leary.
Robert Herjavec notes Deidrea is not answering how Hot Mama Gowns will grow and what costs are for growth. He's out.
Kevin Harrington thinks there is too much risk, so he is out. He thinks Deidrea wants her cake and to eat it too.
Barbara Corcoran wants to know if Deidrea would be open to the idea of a one size fits all, but the idea is met with resistance as the current hospital gowns are one size fits all, but she said she would be open to trying the one size fits all approach.
Barbara makes an offer for thirty thousand dollars in exchange for forty percent equity in Hot Mama Gowns, but Deidrea rejects the offer. Daymond laughs when this happens, saying Barbara deserved the rejection for making the offer in the first place.
Hot Mama Gowns today:
The business closed, and the website redirects to a foreign website. I would not recommend following the link to the site as it could be a corrupt site.
What I've written about Hot Mama Gowns and Deidrea Haysel before in my original post talked about her being the self-proclaimed “Hot Mama.” Deidra is the typical entrepreneur that comes up with an idea and sketches it out. And, she spent a lot of time blogging and connecting with her audience when she was working her business.
She even talked about her first In-n-Out burger, which made me want to take off for California for the tasty treat!
My original prediction was a deal either with Daymond John or Barbara Corcoran. Neither happened, but she did get the offer from Barbara.