Joe Altieri is a former window screen salesman and the president and creator of FlexScreen, a flexible alternative to traditional screens. Recently, he appeared on ABC’s hit show Shark Tank—where entrepreneurs pitch ideas to five big-name, big-money investors. He was asking for $800,000 for 6% of his company.
FlexScreen started in 2013, and took off rapidly. Year one, the company generated $400,000 in sales—a number that grew to $2 million just a year later, Altieri said. By 2018, he continued, FlexScreen’s annual revenue had increased to over $5 million.
However, Altieri has had trouble with profitability: While the screens sell for $11.50, they cost $10 to make. His gross margin, he said, was only $700,000, or “roughly” 15%.
The Sharks were flabbergasted. Shouldn’t your margins be higher?
“Window manufacturers can only get so much for a window,” Altieri told them. “The market is huge.” When pressed on the possibility of a sales premium, Altieri suggested that “window manufacturers are not terribly good marketers.” He told the Sharks that another challenge was that screens have to be custom-made for windows, and so can’t be mass produced.
Ultimately, despite their questions and reservations, the Sharks were interested. Altieri sold them on the idea that flexible screens are the way the market is going. When they become “the standard,” he wants FlexScreen to be the No. 1 option. The offers started coming one after the other, forcing the investors to counter each other’s bids. Altieri eventually accepted a deal from Lori Greiner, who has experience in the hardware space. He received $400,000 in cash and a $400,000 line of credit at 6% interest for a 10% stake in the company.
Add new comment
Related Stories
Business Coach Cited in Suit Against Contractor
A New England contractor faces a civil suit alleging his company’s growth was tied to a business coach with a model that “encourages fraud.”
How to Stop Selling and Start Closing Sales
One of the biggest mistakes a salesperson can make is viewing the sales process as a one-sided transaction
Home Improvement Success: Luck, Hard Work, or Who You Know?
Even the most brilliant marketing mind could see fewer opportunities due to lack of networking
Homeowner Trends When Selecting Manufactured Stone
On this episode of Rock Stars of Remodeling, ProVia Product Manager of Stone & Roofing Chance Shalosky joins host Drew Barto to reveal design and color trends that contractors should consider when selling manufactured stone in 2024
Why A Successful Custom Remodeler Started a One-Day Bath Business
On this episode of Rock Stars of Remodeling, Showcase Remodels Owner Sam DeMaio shares why he decided to add a one-day bath business and offers tips on how contractors can accumulate wealth
Learn from the Best in Home Improvement and Remodeling
This year’s Pinnacle Experience aims to help remodelers stay ahead of their competitors by featuring captivating keynote speakers and subject matter experts, collaborative roundtable discussions, and networking with proven players from across the country.
Get the Most Out of Your Teams with This Leadership Style
The transformational leadership style focuses on inspiring and motivating team members to achieve their full potential and exceed their expectations
3 Reasons Contractors Should Set Same-Day Sales Appointments
Director of Home Improvement Drew Barto writes that contractors that aren't implementing same-day sales appointments are missing out on opportunities to close more business
Registration Open for The Pinnacle Experience 2024
Register today for The Pinnacle Experience 2024 in Baltimore from June 26-28. Join the best and brightest in home improvement and remodeling for insight, advice, and relationship-building that will help you take your business to new heights.
How Contractors Can Determine Lead Value
On this episode of Rock Stars of Remodeling, Builder Prime Founder and CEO Jonathan Weinberg reveals how contractors can effectively determine the value of each lead to their business, and why they must do so