Potato Parcel might not have been if Reddit hadn’t existed. When Craig was browsing the web, he came upon a potato post with five million views. Postal stamps were used to send the fashionable potato through the mail. Craig believed that if a basic potato could garner the interest of millions of people, it could be turned into a successful business model. It was a good concept.
The 24-year-old University of North Texas alumni Alex Craig launched Potato Parcel, which was then popularised on Reddit. Although Robert Herjavec and Kevin O’Leary both offered proposals, the Sharks were mostly unconvinced. Finally, they agreed to O’Leary’s offer of $50,000 for the 10% share and a royalty-sharing arrangement that pays Kevin $150,000 in compensation. The business had an appearance in the giving out the most successful pitch section of The Shark Tank Greatest of All Time Special in February 2020. The business is still operating as of October 2022, bringing in between $600,000 and $700,000 annually.
Potato Parcel’s collaboration on Shark Tank
In order to produce and market the potato designs, the company, which made an appearance on an episode of ABC’s “Shark Tank” in 2016 and signed a partnership with Kevin O’Leary, currently has seven full-time employees. According to Bekhit, more than 70,000 potatoes have been sold since the episode of the show. Annual sales surpass six figures. Customers may have potatoes personalized with a message for any occasion, including birthdays and anniversaries. You can send a Potato Pal, a potato with a face portrait on top, for $14.99.
Status of Potato Parcel before it’s Shark Tank appearance
Potato Parcel as suggested by Craig was created by him in just “two days”. He not just created Potato Parcel but also earned $2000 easily from it. The recognition of Potato Parcels increased even further because of the sole existence of Reddit, so Potato parcel was there in the known markets already before it made its bigger pitch on shark tank, but after its appearance in February on the platform shark tank it received great fame. Within a short period of time, the business recovered its investment.
Potato Parcel made a monthly profit of about $20,000 and gave one potato for every potato sold to a food bank. Potato Parcel contains a variety of “wacky” goods, including potatoes decorated for the holidays. On Shark Tank, Riad and Alex asked for a $50,000 investment in exchange for a 10% interest in Potato Parcel.
Net worth of potato parcel after Shark Tank
In Shark Tank Season 8 Episode 6, Kevin O’Leary presented Alex Craig and Riad Bekhit with a $50,000 check in return for 10% of their company.
The organization that restricts you to messages of only 140 characters or to a single image on a potato is still in operation. Nevertheless, potato Parcel has been one of the greatest pitches ever sold on shark tanks, and one of the most successful ventures of Shark tanks. In 2023, it is projected that potato parcel will serve a six-figure audience and have a net worth of $1 million US.
It’s Journey from 2014 to 2021
According to a CNBC article from 2018, Bekhit was making a six-figure salary from running Potato Parcel. After sending out more than 70,000 parcels and making over $700,000 in sales since appearing on Shark Tank in 2014, Potato Parcel was valued at one million dollars in 2021. By going to their official website, you may send a potato to someone you know.
The Potato package was destroyed after appearing on Shark Tank. On social media, Dirk Nowitzki announced that he had received an unidentified potato congratulating him on reaching 30,000 career points. The publicity trick used by Potato Parcel resulted in its exposure.
Shark’s reaction & offer for Potato Parcel
The founders of Potato Parcel came on Shark Tank to pitch their company and requested $50,000 for 10% ownership. The Sharks first thought the concept was humorous until the entrepreneurs informed them that they had already sent 12,000 texts and generated $215,000 in sales. They began to treat the company seriously at that point. While the other Sharks thought this venture was a little strange, Shark Kevin O’Leary had faith in the entrepreneurs and offered $50,000 for 10% stock and a $1 royalty on each potato sold. The business owners accepted the offer.
Post Shark tank expansion
After making its Shark Tank debut, the potato postcard business quickly expanded. It has been known to make enormous profits, In an early 2017 PR stunt, Potato Parcel sent Dirk Nowitzki of the Dallas Mavericks thousands of anonymous potato postcards congratulating him on achieving the 30,000-point milestone in his career.