Could Amber Be The Shortest & WORST Pitch EVER? | Shark Tank US | Shark Tank Global
Summary
TLDRIn this Shark Tank pitch, recent college graduates Bill Shuan and Kyle Byrd introduce Amber, a free mobile phone charging station with fingerprint scanning for security. They seek $200,000 for a 20% stake, aiming to place Amber in venues like bars and restaurants to enhance customer experience and drive revenue. The sharks express concerns over the fingerprint scanner's reliability, the high cost of production, and the competitive landscape of free charging options. Despite the founders' confidence in their product, the sharks ultimately reject the investment, citing issues with cost, security, and practicality.
Takeaways
- ๐ฑ Bill Shuan and Kyle Byrd are recent college graduates pitching their product, Amber, a mobile phone charging station, on a business investment show.
- ๐ Amber offers a free and secure charging solution using fingerprint scanning technology to lock and unlock charging compartments.
- ๐ธ They are seeking an investment of $200,000 for a 20% stake in their company, which is currently pre-revenue.
- ๐ข The founders aim to place Amber in various public venues like bars, restaurants, gyms, and movie theaters to enhance customer experience and keep people around longer.
- ๐ฐ The pricing model for venues includes a one-time purchase of $2,000 or a monthly lease fee of $150.
- ๐ ๏ธ The product is still in the prototype phase, with the current cost to manufacture a unit being around $1,000.
- ๐ The sharks express concerns about the reliability of the fingerprint technology at the proposed price point and the overall business model.
- ๐ป There's a discussion about the liability issues of customers giving their phones to bar staff for charging and how Amber could mitigate this.
- ๐ The sharks are skeptical about the cost-effectiveness and the necessity of the product, comparing it to free charging options available in airports.
- ๐ซ The sharks ultimately reject the pitch, citing issues with the cost, security, and the existence of free alternatives as their main reasons.
Q & A
What is the name of the company founded by Bill Shuan and Kyle Byrd?
-The company founded by Bill Shuan and Kyle Byrd is called Amber.
What is the primary purpose of Amber as described in the script?
-The primary purpose of Amber is to provide a mobile phone charging station that is completely free to use in public spaces.
How does the fingerprint scanning feature work in Amber's charging station?
-Users secure their device in one of the compartments by scanning their fingerprint, and to retrieve it, they rescan their finger, which unlocks the compartment.
What is the proposed business model for Amber's charging stations in venues?
-Amber proposes a business model where venues can either purchase the unit for $2000 outright or lease it for $150 per month.
What is the target demographic for Amber's charging stations according to the pitch?
-The target demographic includes bars, restaurants, gyms, movie theaters, arenas, and other venues where people might need to charge their phones.
What concerns were raised by the sharks about the fingerprint scanner's reliability?
-The sharks expressed concerns about the fingerprint scanner being finicky and questioned whether a scanner at Amber's proposed price point could be reliable and quick enough for users.
How much investment are Bill Shuan and Kyle Byrd seeking in the pitch?
-Bill Shuan and Kyle Byrd are seeking $200,000 in exchange for a 20% stake in Amber.
What was the sharks' reaction to the cost of the Amber unit and the business model?
-The sharks were critical of the cost, with some stating it was too high and others suggesting that the product needed to be priced under a hundred dollars to be viable.
What alternative solutions do the sharks suggest to the Amber charging station?
-The sharks suggest that the competition is 'free' charging stations, and they question the necessity of Amber's service when people can already charge their phones for free or use personal charging devices.
What issues were identified with the Amber charging station in terms of practical use in public venues?
-The sharks identified issues such as the potential for the fingerprint scanner to fail in less-than-ideal conditions (like a wet or grimy festival environment), and the creation of lines and congestion in venues.
What was the final outcome of the pitch in terms of investment from the sharks?
-The pitch was unsuccessful, with all the sharks declining to invest, citing concerns over the cost, security, practicality, and the existence of free alternatives.
Outlines
๐ Pitch for a Secure Phone Charging Station
Bill Shuan and Kyle Byrd, recent college graduates, introduce Amber, a mobile phone charging station designed for public venues. They seek an investment of $200,000 for a 20% stake in their company. Amber offers a free, secure charging solution that uses fingerprint scanning to lock and unlock phone compartments. The founders believe Amber enhances customer experience and encourages patrons to stay longer at venues. They plan to install Amber in various public spaces like bars, restaurants, and theaters. The charging station is either available for a one-time payment of $2,000 or a monthly lease of $150. Despite the sharks' concerns about the fingerprint scanner's reliability and the product's cost, the founders assert that they have tested the technology extensively and are confident in its functionality.
๐ซ Sharks' Skepticism and Rejection of Amber's Business Model
The sharks express their doubts about the viability of Amber's business model. They argue that the cost of the charging stations is too high compared to the existing free alternatives. They also question the reliability of the fingerprint technology at the proposed price point. Additionally, the sharks highlight the potential for increased congestion and the impracticality of using fingerprint scanners in messy environments like festivals. The sharks are not convinced by the founders' pitch and ultimately decide not to invest, citing concerns about the product's cost, security, and market competitiveness.
Mindmap
Keywords
๐กAmber
๐กShark Tank
๐กBiometric scanning
๐กRevenue model
๐กPublic space
๐กPrototype
๐กFingerprint scanner
๐กInvestment
๐กLease
๐กSecurity
๐กVenue
Highlights
Amber is a mobile phone charging station that is completely free to use.
Amber secures your device using biometric scanning, specifically fingerprint scanning.
The charging station aims to drive revenue for venues by keeping customers around longer.
Amber can be placed in various venues like bars, restaurants, gyms, and movie theaters.
The charging station is either available for purchase at $2000 or can be leased for $150 per month.
The founders have tested the fingerprint scanner extensively.
The cost to make a single unit of Amber is approximately $1000.
The founders have invested around $11,000 in the development of Amber.
The sharks express concerns about the fingerprint scanner's reliability in a public setting.
The sharks question the business model, comparing it to free charging stations in airports.
The founders mention interest from festivals and large-scale venues for a larger version of Amber.
The sharks argue that creating a charging station could lead to unnecessary lines and congestion.
The sharks criticize the security and cost of the product, with some stating they are out.
The sharks highlight the competition, stating that 'free' is Amber's biggest competitor.
Despite the sharks' negative feedback, the founders remain confident in their product and its potential.
Transcripts
[Music]
next up are recent College grads who
believe they have a better way to stay
recharged
[Music]
sharks my name is Bill Shuan the
co-founder and CEO of Amber and my name
is Kyle Byrd I'm head of products and a
co-founder at Amber sharks today we are
raising 200 000 in exchange for 20 stake
within Amber sharks how many times
you've been at an airport and had your
phone tragically Die In Your Arms you
know our paying all too well the fact is
we didn't want to walk around with
charters in our pockets or give our
phones to bartenders to charge our
phones in a public space we saw a
problem and we came up with a solution
sharks Amber is a mobile phone charging
station that is completely free to use
we secure your device in one of our
seven compartments using biometric
scanning namely fingerprint scanning we
made it super super simple let's show
you how it works
simply walk up scan their fingerprint
choose one of the available compartments
and whenever they're done they simply
rescan their finger and one of the doors
will unlock
we realized that Amber wasn't just a
free secure way for people to charge
their phones in a public space but could
also Drive revenue for venues by keeping
people around longer and heightening the
overall customer experience we want to
put Amber in bars restaurants gyms movie
theaters Arenas really anywhere the list
goes on and on sharks by securing an
investment today we can make our first
big push into seeing Amber and venue
Across the Nation who wants a secure
deal with Amber
what's up is the product shipping
so we are pre-revenue I love that word
pre-revenue we just graduated a few
weeks ago from college where'd you go to
school James Madison University in
Virginia Bill walk me through the
premise you walk into a bar sure I'm a
bar owner how much are you going to
charge me so we will either charge you
two thousand dollars outright for the
unit or you can lease it either on a six
nine I buy for two thousand that's it or
you can get it right on your wall for
150 right there and it's it's a monthly
150. it's a convenience for the bar but
it's not something they have to have
well so actually right now people are
charging their phones in bars right
they're giving the bartenders to
waitresses and waiters that's a
liability it's like hey can I get my
phone will that waiter waitress may have
left got enough work and now they have a
lost phone guys you said a door locks I
didn't see the door lock so the locks in
here is what we're using for testing
we're actually currently sourcing our
locks through Master Lock okay so there
will be a door on there yeah yes Bill
have you tested the fingerprint scanner
we have we test it all in the back end
because I'm in the cyber security space
and here's what I know about fingerprint
scanners they can be very finicky very
except for the very very high-end ones
with all due respect to you the idea of
you walking up once putting your finger
in there and it recognizing you and the
door coming down is ludicrous we have a
big security Center the fingerprint
scanner that we pay for people to get
into that Center was well well over
fifty thousand there's no way for that
price point you're gonna buy fingerprint
scanner that's right that quickly so
here's how it's going to work someone's
going to come up they're going to go
once they're going to go twice they're
gonna go three times and then they're
gonna pull it off the wall yeah and this
is before they've had something to drink
tell us how much you've invested right
because you've got to build prototypes
so on our College budgets uh we are
sitting um I think we're right around
eleven thousand dollars
what does it cost you to make a unit
right now we can make the unit for a
thousand dollars with a thousand dollars
this is going to end so badly
that is such a bad business what are you
you're saying you're saying the cost of
it two thousand dollars right oh it's a
it's 150 a month or two thousand dollars
outright
why would a bar pay you 2 000 when you
go to the airports those guys who have
the big charges they issue it for free
because they want to do their
advertising why wouldn't a bar put one
of those free devices behind the bar I
mean why does anybody really need this I
think there's so many personal charging
devices and actually I'm in the space
right now we're creating something that
is light years ahead of this
I'm out
the cost is horrible guys I mean you've
got to get this down under a hundred
dollars and that's exactly what we're
trying to do um
right and I feel bad because you put in
a lot of Blood Sweat and Tears wait wait
no sweat and tears just blood in the
water blood we've actually had a lot of
interest from festivals um and say
larger scale venues conventions so we
actually we developed the products like
putting it on a stand
um and having say 14 units whenever you
have a lot of people one of the things
you don't want to do is create a reason
for them to congregate in one spot
waiting for something all you're doing
is creating more lines and then the
finger scanner something was wet someone
was grimy you're at a festival it's not
going to be a clean environment this is
definitely not for me I'm out there's
only one answer to this I have to hire
you both so I can fire them
this is so horrible how do you think
this has any chance of surviving and
working
I hate this so much it's incredible it's
one of the worst ideas I've ever seen
I'm out
I have absolutely no interest in this
business I'm out
so we do have competition there are a
few yeah there's a lot of competitors
right your biggest competitor is free
you've come out with an incredibly
elegant solution
true free
look
I'm at
good thank you guys very much for your
time
[Music]
horrible
put your glass there and fill it up
the cost was an issue the security was
an issue I know it works we've tested it
a million times I mean I would probably
go rail Hershey back in the tease I mean
that's not that's right you should want
to be to be honest I'm being honest
um
[Music]
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