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readyfestiveKristina Barnes and Elizabeth Voelker hope to wrap up a deal for ReadyFestive, their holiday-themed subscription box business, in Shark Tank episode 1409. Both women are moms with 3 kids. They loved the holidays and decorating, but they hated driving all over town finding the right decorations. They wanted to find a service that did all that for them. When they couldn’t find one, they created ReadyFestive.

Most people are familiar with subscription boxes by now. Their boxes are themed for different holidays like Valentine’s Day, St. Patrick’s Day, Easter, Memorial Day, July 4th, Halloween, Thanksgiving, Hanukkah, Christmas and New Year’s Eve. There also seasonally themed boxes for winter, spring summer and fall. Simply answer a series of questions and they’ll curate your box. People can choose between the mini box for $69, the standard for $99 or the deluxe for $159. You need to pick at least three boxes a year and you can vary the size across those three boxes.

They curate the boxes by having you fill out a questionnaire. It includes questions about what you specifically want to decorate, your style, things you like and don’t like etc. They take that information, fill your box and ship it. You can pay as you go or pay up front to receive a 10% discount. They started the business in 2019 and things got busy in 2020 because a lot of people couldn’t go out to shop for decorations. They likely want a Shark’s help scaling the business.

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Posts about ReadyFestive on Shark Tank Blog

Ready Festive – Holiday Subscription Box

ReadyFestive Shark Tank Recap

Kristina and Elizabeth enter the Shark Tank seeking $250,000 for 10% equity in their company. Kristina says everyone loves the magic and traditions with family and friends surrounding holidays. Shopping for decorations isn’t so much fun however. Their solution is to deliver decorations for the holidays and seasons people celebrate throughout the year. It’s simple. Go to their website and pick your favorite holidays and seasons, select a mini, standard or deluxe size box, customize your decor and it’ll be shipped to your doorstep. Simply unpack your box and start decorating.

The Sharks examine their samples. Each Shark has a box for a different holiday or season. Robert asks what something is – it’s a table runner. Barbara wants to know if she can pick what’s in the box. Kristina says you can customize  by holiday or season, They require 3 boxes per year with a 10% discount if you pay up front. They aren’t a monthly box since holidays don’t follow a pattern. Because they have boxes pre-orderd and good customer data, they usually have plenty of inventory on hand.

The min box is $69, the standard is $99 and the deluxe box is $159. You add shipping to all boxes. The contents of each box are greater than or equal in value than if you went and shopped for them yourself, plus you save the hassle of shopping. Robert thinks it’s a complicated business; he wants to know what makes Kristina and Elizabeth qualified to run this business. Elizabeth says she gets the customer in the door and Kristina gets them out the door. Elizabeth’s background is in marketing and sales; she handles everything “customer facing.”  Kristina’s background is in merchandising and product development.

They launched at the end of 2019. Lifetime sales are over $1.5 million to date (summer 2022). 2020 sales were $250,000, 2021 sales were $500,000 and they project $1.6 million in sales in 2022. 2022 is the first year they will turn a profit which will be $300,000. They don’t pay themselves yet and year to date sales are $800,000. The average sale is $127 with 40% margins. Customer acquisition cost is $40 and the average customer orders 6.5 boxes for $750. Churn is only 5% and the average customer is with them for 2 years. For 2022, they have $800,000 “in the door” and another $1.5 million “in the door” for 2023. 85% of customers pay as they go.

Mark says they’ve built a great business that’s super cash friendly. He thinks they could grow to $10 million in sales, but that’s not a business he’s interested in investing in; he’s out. Barbara is uncom fortable with the number of holidays and SKUs they have; she’s out. Kevin doesn’t know if they’re worth $2.5 million and doesn’t want to beat them to a pulp on valuation; it’s too small for him right now – he’s out. Lori doesn’t think they need a Shark; she’s out.

Robert says they’ve made him an amazing decorator. Robert says the key to this type of business is great operators and he thinks Kristina and Elizabeth are great operators. He offers $250,000 for 20%. Elizabeth says 20% will value the business below what they’ll do in sales this year. She counters with $250,000 for 12%. Robert counters with 18%. The ladies counter with 15% and Robert won’t budge. They counter with $300,000 for 18% and Robert still won’t budge. They ultimately do the deal at $250,000 for 18%.

ReadyFestive Shark Tank Update

The Shark Tank Blog constantly provides updates and follow-ups about entrepreneurs who have appeared on the Shark Tank TV show.

In the 2 weeks following the original air date, if you went to their website, you were greeted with the following message: “We are experiencing unusually heavy traffic.” The first rerun of this episode occurs in July, 2023 – 6 months after the original air date. At this time, there is no evidence the deal with Robert closed. The company is shipping 4th of July decorations and starting to curate fall boxes. At this time, reliable revenue information is unavailable.

The Shark Tank Blog will follow-up on ReadyFestive  & Kristina Barnes and Elizabeth Voelker as more details become available.