In the latest episode of “Shark Tank Season 17, Episode 3,” Chip Gaines and Joanna Gaines made the highly anticipated debut as the first couple of guest Sharks. When Chip and Joanna Gaines entered the Tank, they didn’t just bring Southern charm. Rather, they redefined what it means to invest with heart and not hard numbers.
They are known for their innovative work on Fixer Upper on HGTV. Also, they have a reputation because of their entrepreneurial ventures with Magnolia.
Beyond television, the couple have built a dynamic business empire. They commenced Magnolia, a lifestyle brand. Their brand fringes around furniture, real estate, home decor, including a bakery. Their businesses include Magnolia Home, Magnolia Realty, including Magnolia Table, a restaurant that has garnered national acclaim.
Joanna’s creative design imagination, paired with Chip’s operational mindset, makes them a uniquely balanced team with their ability to evaluate products not only for profitability but also for aesthetic appeal and marketability.
They have a reputation for spotting profitable businesses in overlooked niches. Along with hands-on expertise in developing sustainable businesses from the ground up, they make a valuable addition.
For entrepreneurs who enter the Tank pitching for their brands, Chip and Joanna represent a mix of guidance and brand-building expertise. A new form of investments and mentors within the Tank ecosystem.
How Chip and Joanna Gaines Are Changing Shark Tank’s Investment Playbook
Chip and Joanna’s appearance on the Tank marked a relevant shift from the ongoing format as they are the first-ever couple to serve as guest Sharks. Thus, they introduced a powerful dynamic that was both collaborative and complementary. Their approach is notably very different from what we have seen so far on the show from the other Sharks.
The mix of their expertise in branding, operations, and design inspires them to judge pitches from a whole new standpoint. While other Sharks like Kevin O’Leary or Lori Greiner often focus on the numbers and scalability, the Gaineses couple understand the emotional appeal of the products and brands. This broader perspective enables them to make deals that might be unconventional to the other seasoned Sharks.
The GoodEgg Investment
After Shark Tank Season 17 Episode 3 aired, the most talked-about moments were the couple’s choice to offer a deal to GoodEgg. It is a cleaning device for homegrown eggs.
Though the eggs are protected from inside by the upper covering, they are covered with poop, mud, bacteria, viruses, straw, and feathers. More than 650 silicone nubs are sized and placed together to remove debris without cracking it. The device also comes with a GoodEgg washer and a kit.
While all the Sharks backed off and refused to participate in the negotiations. It was the Gaineses’ reason for the investment that made the difference. According to the episode, the Gaineses offered a deal to GoodEgg and joined Barbara Corcoran in investing in Repaint Tray.
Their investment in a niche offering like GoodEgg, which seems to not have a mainstream appeal, reflected a shift in the basic Shark Tank investment criteria. It meant that success is not always defined by numbers. Instead, it could also be measured by a brand’s alignment with values and its potential to bestow on the community.
Investment Made In Repaint Tray
The Gaineses’ perspective overthrew the long-lasting metrics that seemed to have dominated the investment decisions and deals on the show.
Among the other Sharks, along with Chip and Joanna Gaines, distinguished themselves for their interest in the brand Repaint Tray. Barbara, being known for her observant eye for practical and scalable products, noticed the potential in Repaint Tray’s market appeal.
Repaint Tray is an Eco-friendly product developed by Billie Asmus. It was when she realized that $240 million worth of plastic paint brushes and trays go into landfills. It is the first ever reusable heavy-duty metal tray, silicone liner, and an air-tight lid.
Hence, Joanna asked about the end goal of the brand, and the founder clarified that she wants to make a full paint supply product line. Chip refused to participate, leaving the decision to Joanna. Barbara offered $250,000 for 15%.
In the end, Joanna, Chip, and Barbara decided to make the same deal, where Gaineses took 5% and put in one-third of the money.
The Ripple Effect
The debut of Chip and Joanna on Shark Tank had a ripple effect even after the episode. Their unique and distinctive method has sparked a debate about the future potential of entrepreneurship and investment.
Are conventional metrics like a brand’s financials enough to assess a business’s potential? Is it the right time to consider a more comprehensive approach?
Their presence also raised many questions about the agenda and role of the guest Sharks. While their expertise and suggestions were valuable, some viewers also think that their presence would overshadow the seasoned Sharks.
However, the couple’s cooperative technique seemed to influence the group’s positioning rather than detract from it.
By prioritizing design, community, and purpose more than traditional profit metrics, Chip and Joanna Gaines might have cracked the code.
