If there’s one thing we’ve learned from six seasons of Shark Tank it’s that fans really get behind the businesses with products that are made in America. To play up that fact, the latest episode of Shark Tank featured all businesses that are made in the USA, from sorority clothing to pickup truck seats. In case you missed the latest action in the Shark Tank, here’s how it all went down.
First into the Shark Tank is Dave Goodman, representing his company Coco Jack. Dave asks the Sharks for $125,000 in exchange for 10% equity in his company. Coco Jack specializes in opening young thai coconuts in just a few seconds with tools that both open the coconut and easily scrape out the coconut meat. Currently, Dave sells Coco Jack through his website, and he has about $325,000 in sales in the last 9 months. The Coco Jack kits cost about $26 to manufacture in the USA, and they’re sold for $60. While the Sharks all like the tools, Barbara quickly pinpoints that Dave is not an organized enough partner for her to feel comfortable investing, so she’s out. But Kevin sees a spark in Dave, and he makes an offer of $125,000 for 50%, to which Robert remarks: “Get the machete, Dave!” Mark comes in next with an offer of $125,000 structured as convertible debt with a 7.5% interest rate. This means, if business goes well, this investment would convert into 25% equity in the company. Not wanting to give up so much of the company, Dave counters back at 20%, but Mark isn’t budging, so Dave takes the convertible debt deal with Mark at 25%!
Second into the Shark Tank is George Conway, seeking a $200,000 investment in exchange for 15% equity in his company, Bed Ryder. Bed Ryder aims to transform pickup trucks into “Truck UVs” with an easy-to-install pickup bed seating system. The Sharks are immediately wary of the legality of the project, however George explains that Bed Ryder actually exceeds federal guidelines and is completely legal. Then, the conversation turns to sales, of which George has sold 800 units in 4 years. However, George only owns 15% of the business, and his friend Cary, the inventor of Bed Ryder, actually owns 85% of it. George hopes to use a Shark’s investment to build his inventory, bringing down the manufacturing cost from $300/unit to $200. Still, the Sharks don’t like that Cary isn’t with George in the tank, and they have a hard time seeing the potential from investing in Bed Ryder. With that, all of the Sharks are out.
Next into the Shark Tank is a business that seeks to change the game when it comes to sorority recruitment clothing. Kate Steadman and Sharon Bui entered the Shark Tank seeking a $100,000 investment in exchange for 20% equity in their company, Frill Clothing. Frill produces custom clothing for sorority women, and by working with multiple sororities on a campus, they ensure there will be no outfit repeats during the week-long recruitment process. Each dress costs about $100-120, skirts sell for about $60-70 and they cost the woman about $24 to manufacture. Since launch, Frill has has about $400,000 in sales, which is impressive on its own, but even moreso when the Sharks learned that the ladies were FT college students for the first two years they were running the business, and they began the business with only $500. In addition to their sorority business, Frill has also recently expanded into the bridal market. With a Shark’s investment, Sharon and Kate are hoping to ramp up production in order to bring down their costs. Barbara sees a spark in Frill, and she jumps in with an offer of $100,000 for 33%, followed closely by Kevin with the same offer, and then Robert at $100,000 for 20%. While Robert tries to coax a fast yes out of Sharon and Kate, they hesitate to say yes right away. While they hesitate, Barbara and Kevin combine their offers. Kate and Sharon counter Barbara and Kevin at 30%, and the deal is done!
Last season, Shark Tank fans met the 11 year old behind Mo’s Bows bow-tie company. While Mo didn’t get a deal, he did get an offer from Daymond for a mentorship. Before Shark Tank, Mo’s Bows has only $55,000 in sales, and in the 7 months since appearing on the show, sales have grown to $200,000. Daymond also connected Mo with an american manufacturer, and even helped Mo’s Bows get picked up by Nieman Marcus. Congrats guys!
Last into the Shark Tank are Michelle and Jason Barsosky, the owners of Twin Z Pillow, asking the Sharks for a $75,000 investment in change for 10% equity in their company. After having twins, Michelle and Jason quickly realized the struggle (and time) involved with feeding two new babies. Hoping to cut down on the amount of time required to keep the twins fed, Michelle created the Twin Z Pillow which allows two babies to be bottle or breastfed simultaneously due to its design. While the Sharks are clearly skeptical about the size of the market, the Barsoskys are on track to go $510,000 in sales this year. Each pillow costs $29 to make, and they’re sold for $99. The Sharks’ interest is piqued, and Kevin is first to make an offer of $75,000 for a $10/unit royalty until he’s paid back $225,000 (3x his investment), and he also wants 2.5% equity. Robert comes in next with the same offer, except he only wants to be paid by $150,000 (double his investment). Lori them comes in at $150,000 for a $5/unit royalty until she’s paid back $150,000, and then she wants 5% equity. And Barbara is in at $75,000 for 20% in straight equity. Robert and Kevin then combined forces for a single offer of $150,000 and a $10/unit royalty until they’re paid back $450,000 they’ll keep 2.5% equity. Lori offers to go in with Barbara, but when Barbara refuses, Lori just matches Barbara’s offer. Then, the claws really come out when the Barsoskys counter back at 15% and both women offer to take that counter alone. Then, Kevin and Robert knock down their payback to $300,000 and a $7.50/unit royalty instead of 10%. With many great offers on the table, the deal is done with Lori!
Some intense negotiations in this episode, Shark Tank fans. Let us know what you thought!
