Every day, people have many tasks to do, like cooking, pet care, and smoking cigarettes, which cause a lot of odors. To solve this problem, Pure Ayre Company has created a natural solution called Odor Eliminator.
To expand his business nationwide, James Mitchell came to Shark Tank Season 1, Episode 3, seeking investment from the Sharks. Did his business get funding from the Sharks? Let’s find out.
| Company Name | Pure Ayre | |
| Founder/Co-Founder | James Mitchell | |
| Founded | 2008 | |
| Product | Odor Eliminator | |
| Asked For | $150k for 10% equity | |
| Final Deal | No Deals | |
| Shark | No Sharks | |
| Episode | S2 E3 | |
| Air Date | April 1st, 2011 | |
| Business Status | In Business | |
| Website | Visit Website | |
| Headquarters | Snoqualmie, Washington, United States | |
| Lifetime Sales | $35M *estimated | |
| Buy and Watch | Buy Now | Amazon Prime |
Business Pitch Episode Recap
After appearing on Shark Tank, James asked the Sharks for $150k for 10% equity at a $1.5 million valuation. He invited Barbara Corcoran to demonstrate his safe and natural odor-eliminator product, which can remove any smell.
He explained that the product hasn’t been patented because doing so would require disclosing the chemicals used to make it.
He revealed that they have made a total of $3.2 million in sales so far. Currently, they are generating only $19,000 in monthly sales. Last year’s sales were $315,000, and the year before, they reached $0.5 million, which was possible after being listed in Walgreens’ nationwide retail stores. However, they were pushed out of the market by a large competitor.
After the issue with Walgreens, James consulted with a consulting firm, which suggested that he would need approximately $4 million to support national retailer operations.
He told the Sharks that he had raised about $500k-$600k so far, but all the money had been burned. James wasn’t giving a direct answer to the Sharks’ questions, so Barbara Corcoran said she is out.
Kevin Harrington is concerned about James’ business approach. Therefore, he is out of the deal.
Daymond John offered $150k for 50% equity, which James couldn’t accept because, combined with his angel investor’s stake, it would total 57% ownership.
Kevin O’Leary offered $150k for 100% equity in exchange for a 7% royalty for life to James. James did not provide a direct answer to Robert Herjavec’s question, so he said, “He is out.”
Daymond and Kevin teamed up to offer $150k for 100% ownership, with the condition that James would exit his company. However, he would receive a 7% royalty for life.
James declined the offer from Daymond and Kevin. Robert then offered $225k plus 7% royalty for a 10% equity under the same conditions, but James also declined this offer.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Kevin Harrington | No Offer |
| Kevin O’Leary | $75k + 7% royalty for 50% equity (Daymond) |
| Robert Herjavec | $250k + 7% royalty for 100% equity |
| Barbara Corcoran | No Offer |
| Daymond John | $75k + 7% royalty for 50% equity (Kevin) |
| Founder’s (Countered) | No Counter |
| Final Deals | No Deals |
Pure Ayre Shark Tank Update
James went backstage and said that he was heavily insulted by the Sharks. James didn’t give up. He made his product available in many online stores like Amazon, McLendon, and others. Additionally, he launched two websites for the United States and Canada.
While researching Pure Ayre, we found out that the company is still operational and is estimated to generate sales of around $5 million annually.
Check out Shark Tank Season 2 Business Update.
If you want more updates on the businesses that appeared in Season 2, visit here.
