Fish Fixe: Making Waves on Shark Tank
On November 12, 2021, Emily Castro and Melissa Harrington made a splash in Shark Tank Season 13, Episode 6, as they pitched their innovative frozen fish delivery service, Fish Fixe. The entrepreneurs were in search of $200,000 in exchange for 15% equity in their business. Their unique product garnered the attention of Kevin O’Leary, affectionately known as Mr. Wonderful, who saw great potential in what they were offering. He expressed interest in joining forces with the duo and presented them with an enticing proposal.
“I want 33.3% for $200,000 and I go to work with you on the social side. I gotta turn you into freaking stars,”he said.
Kevin aimed to leverage his expertise in improving their brand’s social presence to lower the Customer Acquisition Cost (CAC). In response, the entrepreneurs countered with an offer of 25% equity, but O’Leary stood firm on his request for at least 30%, fully aware of the effort required to take the business to the next level.
Lori Greiner Enters the Fray
As the negotiations continued, the other Sharks had exited the conversation. However, Lori Greiner, recognizing the potential in Fish Fixe, returned to the table and accepted the entrepreneurs’ counteroffer. Initially, she had expressed skepticism about the need for another partner.
“I don’t think you need a partner,”
Greiner stated during their product demonstration. Emily and Melissa emphasized that over 80% of Americans were missing out on the benefits of seafood due to apprehension surrounding purchasing, handling, or cooking fish. Their packaging is designed to simplify the user’s experience, featuring clear thawing, preparation, and cooking instructions, alongside odor-absorbing properties.
A Direct-to-Consumer Model with Impressive Sales
While presenting their product, the entrepreneurs revealed that customers could order a variety of items directly from their website, including a convenient subscription model tailored for repeat buyers. As a fully direct-to-consumer brand, Fish Fixe’s most popular offering consisted of 16 portions priced between $139 and $149. Prior to their Shark Tank appearance, the company achieved $821,000 in sales, yielding a profit of $20,000 while maintaining a customer acquisition cost of $30 to $40. By late 2021, they projected an impressive year-end total of over $1 million in sales.
Challenges and Strategic Discussions
When guest panelist Nirav Tolia inquired about profit margins, the duo revealed that their average order value stood at $143, whereas their delivery cost was $111. They noted that the COVID-19 pandemic shifted their delivery model, leading to increased costs—approximately 11% of total revenue—due to shipping to both coasts. Not deterred, they planned to implement third-party logistics to reduce delivery times to two days or less.
Despite their enthusiasm, Mark Cuban raised concerns about the variables affecting both order values and shipping costs, deeming their business model “very tough,”leading him to step away from the deal. Robert Herjavec also pulled back, expressing uncertainty about managing shipping and logistics.
“I don’t think that you need a partner to just help you get distribution centers and I really don’t think that you need to give away equity,”
said Lori as the negotiation heated up. With only Kevin remaining in the bidding, the team worked to negotiate a better equity split. While Mark lent his support to Kevin, hoping to highlight the value of collaboration, Lori contested the need for such a hefty equity exchange, urging the entrepreneurs to safeguard their ownership stake.
Eventually, Lori made a $200,000 offer for 25% of the company, which Fish Fixe accepted, successfully concluding the deal. Fast forward to 2024, Fish Fixe is thriving, reportedly generating over $4 million in sales revenue and continuing to make waves in the seafood delivery industry.
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