Tuesday, February 2, 2016

The Profit - Farmgirl Flowers Update

Tonight on The Profit Marcus Lemonis is in San Francisco, California with hopes of making a deal with Farmgirl Flowers.  Farmgirl Flowers is a Silicon Vally Florist company with a unique business model.  They produce a daily bouquet and do not let customers choose their flowers.  Also, they order all of their flowers from local farmers in the US.  Owner Christina Stembel is having trouble raising money for the business and also puts a very large valuation on her company when negotiating with Marcus.

Let's take a look at some information related to Farmgirl Flowers as well as what kind of deal was made on the show.

News and Links Related To The Company:
  • Here are some preview videos of the episode from the CNBC website.  Video 1, Video 2, Video 3, Extended Sneak Peak.
  • Here is the Farmgirl Flowers website, and the company wants to "provide beautiful, all US grown flowers at a reasonable price, allowing us to support local farmers and businesses while minimizing our environmental impact, all while saving you time through a simple ordering process."  They offer daily bouquets where you pick the size vase and not the type of flowers you want reducing waste to around 1%, while typical florists have about 40% waste.
  • Here is the Farmgirl Flowers Facebook Page that has over 45,000 likes as of writing this.
  • There are about 700 Yelp reviews of Farmgirl Flowers with a 4.5 star average (out of 5) meaning pretty much all of the reviews are positive. (Link)
  • A December 2015 Forbes article about Farmgirl Flowers calls it one of the fastest growing startups and said revenue went from $56,000 in 2010 to $4.5 million in 2015.  Christina also said she struggled to raise cash, but at this point she was happy she didn't. (Link)
  • Marcus Lemonis has already tweeted, "Check out @farmgirlflowers it's a neat concept. Hard working people. Affordable prices #TheProfit" (Link).  So it appears a deal was made on the show, or at least he likes the concept.

The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • Initial Offer requested by Christina - $1 million for 5% of the business.
  • Marcus's Offer - $1 million for 25% of the business 
  • Christina's counter - $1 million for 7.5%, then $1 million for 10%
  • Marcus's Counter - $1 million for 20% and a $500,000 credit, which was refused
  • As stated above, Marcus likes the concept of Farmgirl Flowers and Christina is apparently glad that she didn't raise cash for the business.
  • Marcus also tweeted: "She's a nice person @farmgirlflowers and I wish her the best of luck! Support her business if you can. #TheProfit"
  • UPDATE 9/2018 - In a Fox News article about Farmgirl Flowers, Christina said she is on track to do over $20 million in revenue in 2018. 
  • UPDATE 5/2019 - Christina and Farmgirl Flowers is featured in a Capital One commercial for a cash back credit card. (Link)

*To see how all of the businesses from The Profit are doing, go to the The Profit Updates page, and also Like us on Facebook or Follow Us on Twitter  to stay up to date with all things involving The Profit.     

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