Pink Picasso Paint by Numbers Kits
DEAL
EPISODE SUMMARY
🕓 Air Date: November 19, 2021
Asking For:
$400,000 for 5%
Investor:
Lori Greiner, Daniel Lubetzky (50/50)
Deal:
$400,000 for 15%
PRODUCT SUMMARY
Pink Picasso offers paint-by-numbers kits that include a canvas with a template, paint, and brushes, all packed in a giftable tube, making it a modern and relaxing craft.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Ashley and Brittany Silfies, a devoted wife team, embarked on their entrepreneurial journey against the backdrop of personal adversity. Prior to their business venture, both were married to their respective partners for over a decade, leading seemingly ordinary lives. However, fate took an unexpected turn, and their feelings for each other evolved, leading to the dissolution of their previous marriages. It was a far-from-glamorous transition that found them in two separate apartments, each with three children, and with financial constraints.
Faced with the daunting challenge of maintaining the standard of living their children were accustomed to, Ashley and Brittany channeled their inner resilience and determination. As stay-at-home moms with limited financial resources, they knew they had to find a way to provide for their families.
Amidst this adversity, Ashley contemplated her skills and background, which included a strong foundation in photography and manufacturing. This insight served as the catalyst for their innovative business concept, Pink Picasso. Together, they set out to create a product that would not only support their families but also bring joy and creativity to others. The journey from adversity to entrepreneurship led them to the vibrant world of Pink Picasso, where they transformed their passion and expertise into a thriving business.
The Product
Pink Picasso offers a unique and comprehensive painting experience through its all-inclusive kits. Each Pink Picasso kit equips users with the essential tools for unleashing their inner artist, including a premium canvas, a template that simplifies the creative process, a carefully curated selection of paints, and high-quality brushes. This thoughtfully designed package ensures that individuals, whether seasoned artists or beginners, have everything they need to create their own stunning masterpiece.
What sets Pink Picasso apart is its emphasis on self-care and relaxation. The kits provide a therapeutic and enjoyable way to unwind and express creativity. Users can immerse themselves in the painting process, setting their own pace and enjoying the meditative benefits of creating art. It offers a welcome break from the fast-paced digital world and allows individuals to reconnect with the joy of hands-on artistic expression.
The culmination of this artistic endeavor is a personalized work of art that users can proudly display on their walls, adding a touch of beauty and individuality to their living spaces. Pink Picasso not only simplifies the artistic journey but also elevates it into a soothing and satisfying experience, making art accessible and enjoyable for everyone.
How It Went
The company’s position before Shark Tank
Pink Picasso’s remarkable performance paints a picture of rapid growth and success. In its inaugural year, the company’s revenue soared to an impressive $1.3 million, a testament to the product’s appeal and their entrepreneurial acumen. Their meteoric rise was further solidified when their product was selected as one of Oprah’s Favorite Things, gaining coveted exposure and recognition.
The following year, in 2020, Pink Picasso continued its ascent, achieving an astonishing $3.5 million in sales. This surge in revenue can be attributed to the product’s innovative design, making it a sought-after choice for creative enthusiasts. The company’s profit margins are notable, with each kit costing a mere $4 to produce. These kits are wholesaled at $19, offering attractive margins for retailers. The resale price of $42 positions Pink Picasso as a premium and desirable product in the market.
Their distribution network is extensive, with a presence in over 2,100 boutique retailers. This wide-reaching retail footprint ensures accessibility to a diverse range of customers and contributes significantly to their sales growth. As Pink Picasso forges ahead into 2021, their expectations remain high, with a projected year-end revenue exceeding $5 million. This trajectory of rapid growth and success paints a promising future for this dynamic company in the world of arts and crafts.
The Negotiations:
The negotiation phase in the “Shark Tank” episode unfolded as an intense and pivotal moment for Pink Picasso. The founders, Ashley and Brittany Silfies, were faced with multiple compelling offers from the Sharks, each with its own unique terms and value proposition. Barbara Corcoran entered the negotiation arena with a $400,000 offer for 5% equity. Her enthusiasm for the product and belief in the founders’ potential were evident. She saw Pink Picasso as an opportunity to provide valuable guidance and resources.
Daniel Lubetzky and Lori Greiner made a joint offer of $400,000 for 20% equity. Their proposal highlighted the combined expertise and support they could provide, emphasizing their ability to assist Pink Picasso in scaling the business. Mark Cuban introduced an intriguing alternative, offering $400,000 for just 3% equity but with a straight royalty of $6 per kit. His unique offer focused on the substantial profit margins of Pink Picasso’s product. The negotiation took an unexpected twist when Barbara Corcoran modified her offer to a loan of $400,000 for 5% equity and an 8% interest rate, believing that the founders were underselling themselves.
Ultimately, the founders chose to accept Daniel Lubetzky and Lori Greiner’s offer of $400,000 for 15% equity. Their decision was influenced by the belief that this partnership would provide them with the necessary mentorship, guidance, and opportunities to expand their business, tapping into the immense potential they had demonstrated. The negotiation not only showcased the attractiveness of Pink Picasso but also highlighted the strategic thinking and investment opportunities presented by the Sharks. It marked a pivotal moment in the company’s journey, setting the stage for future growth and success.
