CoinOut Entrepreneur SHUTSDOWN The Sharks & Treats Them As "Equals" | Shark Tank US

The next step is a solution for unwanted loose change Hello

shark

s. My name is Jeff Whitton. I'm from Mamaroneck, New York, and my business is sold out. I'm looking for 250,000 in exchange for a seven and a half seven and a half percent share of My company

shark

s, we've all been here, you're paying for your iced latte at the local cafe. Hi, your morning is off to a great start so far, bringing back Loose Change oh I hate Loose Change, it's dirty that's how it is. It doesn't fit in your wallet or your skinny jeans. Retrieving coins from cash is a completely inefficient, annoying and stupid way to conduct transactions.

Instead, turn your loose change into easy coin money. The most convenient way to digitize or lose coins we are getting rid of. those pesky pennies that allow people to take full control over their money, let me show you how it works, so you pay cash at a participating merchant and your change is one dollar and 34 cents. After handing over the cash, simply ask the cashier. You would like to withdraw coins when you turn a device, simply enter your phone number on the device at checkout and you can choose whether you want to withdraw just the coins, the 34 cents, or exchange the dollar 34 cents for your coin.

Wallet confirmation and boom transactions are completed, you will receive a text message confirming the transaction along with instructions to set up your account online later and the best part is that there is no app to download, no financial information needed and you don't need to register until you are ready to withdraw coin carrying sharks just doesn't make sense, so next time you withdraw coins, can I pay with my coin withdrawal account next time I go out for coffee? That's one of the options, so we have four coin withdrawals. options right now for customers that you can transfer to your bank account, you can convert it to an Amazon gift card, you can donate it to a charity or the last option is to redeem it in the store, Jeff, why won't they crush you like a cockroach in this?

How is it possible to beat the giant payment operators in the long term? So I'll tell you why, first of all, cash is not new. Nobody has done this. The reason no one has done it is because everyone in the industry thinks cash is going away. but it's not like anyone thinks cash is going away, even Bitcoin fans don't think cash is, with all due respect, they're going to crush it, Mr. Wonderful, with all due respect, we're not going to crush the technology we've built. Of course, it can be replicated, but it is difficult to build.

Well, you also need a banking relationship and you need a regulatory structure that is not correct. I feel like I'm at a funeral, why would that retailer have that screen there so what? For

them

, first of all, cash is very expensive for the retailer, so think about delivering all the coins in an armored truck. This happens at my local pizzeria. They receive a delivery in an armored truck. It's crazy, it's so expensive that cost is number one. two is this is an effective loyalty program for retailers I just want to know if the barista is good Kevin let him talk she looks at you with fear because she knows that the dead man walks with all due respect let me finish yes then number two the loyalty program It's key for these guys, okay, we build the connective tissue between the merchant and the previously anonymous cash customer.

I think it's a great idea. I hate carrying change because you're rich. Explain to me how you make money. In the business model, we charge merchants $20 a month and then we also charge $20 a month. $20 a month we also make three percent on every transaction so let me tell you my experience and this actually goes back to Shark Tank. In law school I was on my way to becoming a corporate lawyer and I watched the episode of The Scrub Daddy. I have my property textbook next to me and I'm looking at this guy and this guy is full of excitement and energy and I think Wow, this guy really cares about what he's invested in and I told him I want to be the next Scrub Daddy. .

I really did and this has been a long, drawn out process. I studied the market, okay wait, I had a full time offer at Apple turned it down full time. A clear path to corporate law rejected him. I have a ton invested in this. I'm related. We raised 460,000 family friends. Some of my own money. Well, Jeff, this is what I hear people want. use alternative payment systems to simplify their lives, the problem for you is getting people to use your app, you agreed that it's not cheap and you're trying to get 20 dollars a month from all the apps that barista could run, but it's okay, it's fair.

Fair points though, change is a big problem, no one has solved it, okay let me tell you how I solved it here's my credit card, okay, okay, but the numbers tell a different story though. Mark 32 of all transactions in the US are still done in cash 32 30 that's more than credit, more than debit, it's in the merchant's best interest to do more transactions. Data is king in this world. If you go to any major coffee chain, only 15 are in their loyalty program and they don't access any of these customers. They are paying cash because they don't want to download a big app.

Traders will love this. I have to congratulate this kid. I don't think I've ever seen anyone go one on one with the sharks, basically write off Kevin, you berated him, you treat Mark like he's the same here, good for you Jeff, I'm here, get out, that doesn't matter, we told you everything It's wrong, yeah, go ahead and tell us what's working for four months, okay? I have made 2500 transactions, the customers who use it love it and are coming back. The problem you're really solving is for people who don't like changing loyalty and whatnot. There is a benefit, yes, but that is the fundamental problem.

Yeah true. where you enter the phone number, yes you store it and then use it in the cloud to accumulate everything correctly, yes smart, the best part of everything you have told me is that the idea that for any loyalty program the barista it just says put in your phone number, if you decide to join you will have accumulated all these benefits, yes and we will keep track, that's brilliant, the fact that you are focused on taking out coins is horrible, right, I know you don't agree , you're trying to make both the consumer and the barista aware of it.

The fact that you only focused on one feature of what could be a larger solution. I have a real problem, okay, I'm out. I hate coins. I don't even like carrying money period, so I'm definitely like their customer. It could take off or just fail and I don't know how I'm going to get my 250,000 back. Sorry, I was fair. just look if we get to 100,000 locations that in the franchise model, if it works, the dominoes start to fall, you can get to a run rate of 30 million dollars, the big retailer at that time, the moment It's now, these guys are dying for something like this.

How long would it take you to get a thousand retailers? We hope to reach 700 locations by the end of this year. Next year we hope to have 3,000. I totally believe that you will make this happen. I'm going to give you your 250 for 15 percent, but it depends on you getting those placements before the end of the year because that's the missing key to this whole program. With all due respect, the contingency there is unsustainable. I'm not going to do a contingency based on Locations, but you said you could get the locations and I think I can, but it's not in my area enough for the deal to depend on, that doesn't mean I have much confidence in this business if you don't see this.

It's your trusted long-term vision, if it's going to depend on getting a number six months from now, then I don't think you fully believe in the vision, you didn't believe you, Mr. Wonderful, I would never make that kind of deal, but if it was the only offer I had. I might consider it. You said you don't have the confidence to get there. I have confidence when I borrowed money for my business. I guarantee I would return

them

within six months, but I would. I have never taken the original thousand dollars unless I felt completely confident that I would find some way to return that money to that investor.

Fair enough, fair enough, but I'm going, yeah, okay, okay, Jeff, I'll make you an offer. Don't accept a contingency deal at 15. How much pain are you willing to endure if you don't have that confidence and don't want a contingency? I'll do the 250,000 for 25 percent. Thanks for your offer. I'd love to see if there are other offers because it should cost you ten percent if you're not willing to be confident enough to climb at the pace you think is awesome. I haven't felt your love today at all, so I don't know, I don't even know, it's not about love, it's about money, but you need to be my partner in this, so you haven't said anything today that conveys that you are interested in business, Jeff, when I started my business my bank said that every quarter you have to reach a certain level of sales so we can continue to give you the money, of course if I didn't give them the money they wanted the money back Of course, maybe 700 locations are too much. by the way, it's fine, but you have to prove it Chateau.

I'll give you 250,000 15 Equity, but I want to see a successful pilot with a large-scale retailer. I appreciate your offer. Thank you so much. I think it's a fair contingency. How about you go down to um? I'd do 10 and look, I think 150,000 15. Your other offer is 250,000 for 25 Kevin agreed, but look, I think we've proven that the technology is pretty good, this is a great idea. a huge market I don't think it's going to move you have to make a decision wait I'm not going to move you're not going to move at all at 15 that's you know he's not moving you're in Fury's world so yeah, I need to see that world come true.

The maximum in my head was 12 and a half percent. Can you get down to twelve and a half percent? So wait a second, you were willing to give up 12 and a half. percent, but for the other two and a half you're not willing to make 12 and a half percent was the highest I wanted, Jeffrey, I'm a simple guy, okay, so, so it's 15, you know, can I ? I have a contingency if we make the deal. Kevin cannot use the product. Congratulations, congratulations, Jeff. Before you go, don't forget to subscribe to the Shark Tank YouTube channel and hit the notification bell to stay up to date with everything that's bubbling in the

tank

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