When the Shark Tank teasers mention the episode containing the biggest deal in Shark Tank history, you know they’re not messing around. If any Shark Tank viewers had lingering concerns about whether or not this show and these businesses are the real deal, rest assured that they certainly are. So in case you missed this monumental latest episode of Shark Tank, here’s how it all went down.
First into the Shark Tank is Steven Hersh, seeking $500,000 for 30% of his luggage company, Biaggi. Biaggi is a collapsible luggage system that folds flat for easy storage. The Sharks are impressed with Biaggi’s $2.5 million in sales in the last two years… until they find out that Steven paused manufacturing 6 months into this year because he found that consumers needed more education on the product. Biaggi was born thanks to $3.5 million of investments to date, invested by Steven, his family, and a family friend who had previously founded and sold Rosetti handbag company for $162 million. While Steven is hoping Biaggi will be his $100 million dollar idea, even the salespeople in the department stores that sell Biaggi don’t understand the product. Still, Daymond has worked in luggage previously, so he makes an offer of $500,000 for 33%. Lori comes in next with an offer of $500,000 for 33%, and she’s already thought of a new name and packaging for Biaggi. Against Kevin’s advice, Steven leaves the tank to ask his father for advice. When Steven mentions his next business move is to go the demonstrable route on TV, Daymond bows out due to Lori’s expertise. With just one offer on the table, the deal is done with Lori!
Speaking of Lori, longtime viewers know that Lori isn’t just the queen of QVC, but perhaps she is Bed Bath & Beyond royalty as well. Lori currently has a display in Bed Bath and Beyond that features some of her biggest Shark Tank deals including ScreenMend, Scrub Daddy, Drop Stop, Readerest, Invisiplug and Fiberfix. Collectively they’ve done $62 million in sales. That’s the Shark Tank effect in action!
Second into the Shark Tank is Lydia Evans, Seeking $125,000 for 20% of her company Soaps, Washes and Grooming Essentials (otherwise known as SWAG Essentials). Lydia, an esthetician by trade, developed SWAG essentials to cleanse, exfoliate and disinfect the skin all at once. SWAG bars are made from 63 all-natural ingredients, and Lydia currently makes them at home for $3.07/unit. The bars retail for $15 apiece. To date, she has $54,500 in sales, about 25% of which come from her brother’s barber shop, and the other 75% have been done through online orders. The Sharks are concerned that Lydia won’t be able to scale from her current at-home production, and that she doesn’t have the hustle to get into other shops yet. With that, there are no offers on the table. All is not lost, though, because Daymond gives her his number saying that he never knows when he might be single again.
Next into the Shark Tank are Shawnna and Kurt Feddersen, seeking a $500,000 investment in exchange for 20% equity in their company, Gameday Couture. The Feddersens specialize in fashionable college gameday gear for women, randing from simple and comfortable to totally blinged out. The Sharks like the business’ growth from $750,000 in year one to projecting $1.5 million in year two. In addition, the Sharks like the 37 licenses that the Feddersens have already acquired. Unfortuanately, though, Gameday Couture will only profit about $100,000 off their projected $1.5 million in sales. The Sharks like the product price point, where the average manufacturing point is $8, which wholesales for $22 and retails for $44. However, they’re tripped up on the valuation, and Mark is wondering why the business hasn’t gone online sooner. Still, Mark makes an offer of $500,000 for 30%, but he won’t reveal the caveat until he gets an answer. With a “yes” on the table, Mark reveals the condition: that Gameday Couture offers Mavs apparel that will win the approval of his wife. Deal!
Last into the Shark Tank is Andrew McMurray, looking for the largest Shark Tank investment in history: $2.5 million in exchange for 10% equity in his company, Zipz. Zips is a proprietary single-serving wine, with business goals that Andrew says are based on “packaging, packaging, packaging and licensing, licensing, licensing.” Zipz is a proprietary durable and strong plastic glass shape, sealed with a patented sealing process, and Andrew hopes Zipz will be come to the wine business what aluminum cans are to the soda business. While the Sharks are immediately reminded of two-time Shark Tank entrepreneur Copa di Vino, Andrew assures the Sharks that Copa di Vino was simply a “franchisee” of a patented product from France, whereas Zipz is the real deal. So real, Andrew says, that he’s currently testing with three of the top ten wine brands globally, including Yellowtail. Andrew says Zipz has done $650,000 in sales to date, including $130,000 in licensing through 6 major ballparks at a rate of $0.15/glass. But the Sharks have sticker shock when they learn that Zipz has 25 investors who have invested $8.5 million to date, especially given that Kevin calls Zipz’s current sales “pee pee pee, poo poo poo” (yes, that is a direct quote). Kevin also says that the $2.99 price point for a single serving won’t work, when 97% of wine is sold for $9.99 or less per bottle. Still, Kevin, who himself has struggled to get his wine company into Costco for years, thinks that Zipz may be just the ticket for both of them to get into Costco, the largest buyer of wine on earth.