12/5/2023 0 Comments Psi bands placementHe wanted to confirm that Romy intended to pay herself for work she did years ago to make up for the early, less profitable stages of the business. Robert could not contain his shock yet again and asked for a clarification. As the sharks reacted, Romy urged them to consider that this $600,000 included “past deferred salaries” from previous years. Daymond John asked if Psi Bands had any debt, and Romy confirmed that they carried $600,000 in debt. Romy replied that it went to overhead, bookkeeping, rent, and utilities, but the sharks still sensed there was something amiss. By the numbers, Romy should have made $600,000 on the $1 million in sales and, after subtracting the $110,000 net profit and $100,000 salary, there was $400,000 unaccounted for. Robert asked about her margins, discovering that she was collecting 60% gross margin. She asked if Romy collected a salary, and she confirmed that she did in fact collect $100,000 annually to reward her hard work. Robert pointed out that it was low, but Romy disagreed. Barbara Corcoran began the investigation to determine why the profit was so low. The sharks were impressed until Romy followed it up with the fact that Psi Bands only netted 11% profit. Romy rebutted that there have been clinical studies to show the efficacy of acupressure in nausea relief, remaining very careful not to say outright that it will cure everyone’s nausea. Robert moved on to the numbers, learning that Psi Bands had been selling since 2007, and sold over $1 million in the past twelve months.
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