We’ve heard of renting wedding gowns and suits but renting Ties? Pitches at Shark Tank always leave us stunned.
With Tie Try, men may rent ties through Tie Try’s subscription service for a nominal monthly charge. Customers who purchase ties online have the option to swap them for a different style or color at any time. Dapper corporate guysÂ may extend their ensembles without going over budget by exchanging ties as frequently as the whim strikes them for a nominal price.
David Powers and Scott Tindel, two lawyers who always wear the same tie, founded Tie Try as a method to mix up their tie options.
In their proof of concept stage, they developed a subscription business that sends neckties to its subscribers, who numbered over 100 at the time of the Shark Tank pitch, and at that time, the startup had only been around for a few months. The expense of acquiring clients was little. Their marketing strategy included press and social media outreach to gain subscribers.
Powers and Tindel entered the Tank looking to trade 25% of the business for $100,000.
According to Mark Cuban, Tie Try didn’t have a sustainable business model. They discussed direct sales, but a membership business like Tie Try can’t operate that way.
When Mark questioned them about the purchase price once they had moved past the proof-of-concept stage, they were unable to respond. Because they didn’t have an answer, Mark called it quits.
Although Barbara Corcoran believed that marketing to college students is a fantastic concept, she disapproved of the fact that they had just 100 members. She was out because it was too little.
Daymond John was oblivious to the enthusiasm for fashion. He left because they lacked the same passion for their company that the Sharks have.
Robert Herjavec well received the model, but further testing was required, and there weren’t enough subscribers. He left too.
Kevin O’Leary offered $50,000 if the Tie Try clan could find one Shark to contribute, with the equity determined by the other Shark. On failing to persuade a third party to participate in the agreement, Mr. Wonderful declared they were ready down for his count.
And therefore, Tie try could not make any deal with Shark Tank.
The main benefit of appearing on the show was a massive boost in business, which David Powers and Scott Tindle did experience after struggling to land a contract on Shark Tank. However, they were unprepared for such a rapid jump in the market and struggled to cope. In the end, the partners chose to sell the company while it was still doing well in order to avoid more losses.
In May 2013, they finally struck an agreement with a rival from New York City, FreshNeck.Com. Brian and David Goldberg, the owners of FreshNeck, have significantly more success with their company. Although they have more than 500 paying clients, only time can tell if this business model can be expanded to become a widespread success.
Our Review of Tie Try
Necktie rental company TieTry operated via mail order. The business’s slogan was “The Netflix for Ties” since their clients could choose and wear designer bow ties, neckties, handkerchiefs, pocket squares, and cufflinks while renting additional accessories through the US Postal Service.
This novel idea could have done much better on Shark Tank if they had more subscribers and a promising business plan.
Tie Try attracted the corporate men who needed to do business attire every day yet, didn’t want to invest in their tie collection. The concept was nice and was able to hit 100 subscribers before the pitch and quit many after the pitch.
Their idea was well put across after their debut on Shark Tank and seemed quite a convenient idea for many.
The monthly subscription charges, however, were on a higher side, considering that it was Ties you were getting out of it.
Pros Of Tie Try
- Tie Try offers convenience to men who have to pull off a formal ensemble every day and saves them from buying a whole collection of ties.
- They not only offer Ties, but Bow-tie, Cufflinks, and Pocket squares.
- The delivery system was through the mail, making it easy and time-saving.
Cons of Tie Try
- Not a good option for those who don’t like to wear used stuff from other people.
- The service was a bit pricey for renting ties.
Who Is Tie Try For?
Here is a creative concept that was shown on the Shark Tank Show. For a small monthly fee, you may pick from a variety of ties and swap them out whenever you like. Similar to Netflix, which lets you watch multiple movies on a monthly subscription, Tie Try offers you to rent ties and have them sent to you by mail.
This will probably remind you of renting a wedding gown. Some men might not enjoy the notion of donning a worn-out tie. This business strategy might not be for you unless you’re Kevin O’Leary, who invests hundreds of dollars on just tie collection.
Are There Any Alternatives?
While Tie Try was a one-of-a-kind concept and there were no competitors when David Powers and Scott Tindel owned it, FreshNeck.Com came out as an alternative venture, and Tie Try was later sold to them.
Our Final Thought
Pitch failures in Shark Tank are all too prevalent, as is presenting a startup to the Sharks very early. The concept design level is essential for a fledgling company, but funders want to see something other than the early successes. Strong sales figures are essential, and Tie Try lacked the sales to support its claims.
Tie Try struggled to survive after the Shark Tank loss. In the end, a rival from New York City, Freshneck.com, bought the business in May 2013 for an unknown sum. While swimming among the sharks, the just-born Tie Try was sucked up by a larger fish.