Melissa Harrington and Emily Castro appear on “Shark Tank” looking to secure an investment of $200,000 for 15% of their frozen seafood delivery service. Following their pun-filled presentation, the sharks give their samples a try and thoroughly enjoy them. From there, the sharks sink their teeth into the business model.
Currently, the company is direct-to-consumer through their website. Customers can either subscribe to the service or order items individually, with their 16 portion box being the biggest seller. In the previous year, Fish Fixe brought in $821,000 in sales, but the team only made $20,000 in net profits largely due to their high customer acquisition costs. Additionally, they reveal that while the average order goes for around $143, the production cost comes in at an average of $111. This brings the team to the main reason they came to the sharks — they are having problems with shipping. Their customer base spread to other U.S. regions during the pandemic and as a result, shipping costs have been eating up their revenue. They currently have a third party team in place to aid in outsourcing distribution and bringing down shipping costs.
Mark Cuban goes out, believing that there are too many variables to ensure that costs will stay down. Similarly, Robert Herjavec and guest shark Nirav Tolia don’t feel confident in the field and also exit. Kevin O’Leary believes he can make Fish Fixe go big through his Chef Wonderful brand, but he wants 33.3% for the $200,000, which he later brings down to 30%. Lori Greiner, who initially went out, doesn’t agree with O’Leary’s greed and offers the $200,000 for 25% equity. Harrington and Castro excitedly accept.