Ethically Sourced Meat Box Subscription | Shark Tank US | Shark Tank Global

Summary

Lucinda, an eighth-generation farmer from Missouri, pitches her company Moink on Shark Tank, seeking $250,000 for 10% equity. Moink is a subscription service offering ethically sourced, high-quality meats, such as grass-fed beef, lamb, pastured pork, and wild Alaskan salmon. The business was born from Lucinda’s childhood struggles on the farm after her father's tragic death, which inspired her to fight for family farms. Despite having low margins, Moink has seen rapid growth, with $730,000 in sales. After negotiations and multiple sharks dropping out, Lucinda secures an offer from Mark Cuban, who invests $400,000 for 20% equity to help scale the business.

Takeaways

• 😀 Lucenda is an eighth-generation farmer from Label, Missouri, who founded Moink, a subscription service for ethically sourced meats, to help small family farms thrive against big agribusinesses.
• 😀 Moink's product offering includes grass-fed beef, pastured pork, chicken, lamb, and wild-caught Alaskan salmon, all ethically sourced and delivered to consumers through a customizable meat box subscription.
• 😀 Lucenda's emotional backstory includes growing up on a farm with financial struggles, especially after her father took his own life when she was 11, which drives her mission to help small farms.
• 😀 In 2017, Moink made $85,000 in sales, and by 2020, revenue grew significantly to $730,000, showcasing impressive growth for the young company.
• 😀 Moink has a strong customer retention rate of 71%, which is a positive indicator for its subscription-based business model and customer loyalty.
• 😀 The customer acquisition cost is $97, and the average order is $159, with each box containing 13-16 lbs of high-quality meat.
• 😀 Despite the growth, Moink struggles with low profit margins, with each box costing $127 to fulfill, which includes production costs, shipping, and credit card fees, leaving minimal profit per sale.
• 😀 Lucenda’s approach to business is conservative and calculated, but the Sharks emphasize that scaling the business requires higher investment and faster growth to lower margins and reach profitability.
• 😀 Mark Cuban makes the only offer of $400,000 for 20% of the company, reasoning that Moink needs more investment to grow at scale and improve profitability.
• 😀 Lucenda is initially hesitant about scaling too quickly, as she prefers controlled growth, but she ultimately accepts Mark Cuban’s offer after some discussion.

Q & A

What motivated Lucinda to start Moink?

Lucinda's motivation stemmed from her personal experience growing up on a 1,500-acre farm where her family often struggled with hunger despite having ample land. The tragedy of her father's suicide and her mother's struggles to make ends meet inspired Lucinda to find a way to help small family farms survive and thrive in the face of corporate dominance in the agricultural industry.

How did Lucinda's early experiences shape her approach to business?

Lucinda's early experiences taught her valuable lessons about the difficulties of running a business, especially when dealing with larger companies. After being burned by a bad partnership, she became more cautious and calculated in her approach to business, prioritizing controlled growth for Moink.

What is the core mission of Moink?

The core mission of Moink is to provide ethically sourced, high-quality meats while supporting small, independent family farms. Moink aims to offer an alternative to large agricultural corporations by delivering pasture-raised, grass-fed meats directly to consumers via subscription boxes.

What types of products does Moink offer?

Moink offers a variety of ethically sourced meats, including grass-fed and grass-finished beef, lamb, pastured pork, chicken, and wild Alaskan salmon. All of these products are available in customizable subscription boxes.

What were Moink's sales figures for 2017 and 2018?

In 2017, Moink achieved $85,000 in sales, while in 2018, the company saw a substantial growth, reaching $730,000 in sales.

What is the customer acquisition cost for Moink?

Moink's customer acquisition cost is $97. This figure includes all expenses associated with acquiring a customer, such as marketing consultant fees and other overhead costs.

How does Moink acquire customers?

Moink acquires customers primarily through inbound marketing. This includes SEO (Search Engine Optimization) strategies, as people actively search for high-quality, ethically sourced meats like those Moink offers.

What is the pricing and contents of Moink's subscription boxes?

Each Moink subscription box is priced at $159 and contains 13 to 16 pounds of meat. The price per serving is approximately $4.50, and the box is fully customizable.

Why did Lucinda hesitate before accepting Mark Cuban's offer?

Lucinda hesitated because she values controlled, sustainable growth. She was concerned that an aggressive investment strategy might push the company to grow too quickly, potentially compromising its quality and values.

What was Mark Cuban's offer to Lucinda, and why did he make it?

Mark Cuban offered $400,000 for a 20% stake in Moink, which was higher than Lucinda's initial ask. He believed that the company would need additional funds to scale quickly and improve its margins, as well as the infrastructure to support growth.

What are the challenges Moink faces in terms of its financials?

Moink's main challenge is its low profit margins, estimated at around 10%. Despite strong demand and sales, the company faces higher costs in areas like shipping, credit card fees, and packaging, which limit profitability compared to competitors in the subscription meat industry.