Shark Tank (2009–…): Season 12, Episode 23 - Episode #12.23 - full transcript

Tonight, baseball legend

and prolific investor
Alex Rodriguez

returns to the Tank.

I love your story,
and it's so inspiring.

It reminds me of when I grew up.

Who's ready to raise the bar
with me and have a ball?

We are asking for $500,000
for 2% in our company.

Ouch.
Wow.

You're in the wrong place, okay?

I run a very lean business.

How can you sell it so cheap?
That's no margin.



Are you going to profit
from that enterprise?

I don't know the number off
the top of my head. I'm sorry.

This is a basic question
in investing.

There's no money in it.

Before we
jump into the valuation,

do you guys want to
drink some beer? Yes. Yes.

First into the Tank is a product

that proves the old adage
"Practice makes perfect."

Hey, Sharks.

My name is Thomas Fields,

and I'm the founder
and CEO of Grind.

Today, I'm seeking $250,000

in exchange for a 5%
stake in my company.

Now, millions of kids each
year dream of playing in the NBA.



Mark, I'm sure you
were one of them.

I was.

But whenever you
get to high school,

coaches usually expect you to
shoot up to 500 shots every day.

But usually this takes
about six hours at a time.

And good luck trying
to find somebody

to chase down your
rebounds, Mr. Wonderful.

It's not gonna happen.

That's why we created...
the Grind Machine,

the world's first portable
shooting machine

that captures your
made and missed shots,

automatically passes
the ball back out to you

and collapses down into
the size of a duffel bag

within 90 seconds.

Simply set up our
shooting machine

under any basketball goal,

and bam ‐‐ You're
ready to lock in.

Our shooting machine
rotates 190 degrees,

manually passing to
five positions on the court

so you can train
like a great athlete

from anywhere along the arc.

Unlike professional machines
that are sold to the Mavericks,

Grind is made for the consumer,

being the lowest‐cost
machine on the market today.

So, Sharks, who's ready to
help Grind develop interactive,

game‐changing products
one sport at a time?

Mark, you want to try
it? Cuban: Yeah. Love to.

Now, it's powered
by pneumatics, right?

So this is a completely new
way of passing the ball out.

So if you could
stand, like, right there.

Okay. That's about right.

Oh! Oh, he sucks.

Ready?

It should pass that
out. There you go.

What is up with that rim?

I hope the league
doesn't see this.

Wow. He does suck.

- There we go. Finally.
- Oh! That's what it took!

Thomas, what does it retail for?

We retail right now for $1,495.

What? $1,495?

$1,495. Okay.

So, Thomas, tell me a little
bit about your backstory.

You wanted to be an NBA
player? - Yeah, absolutely.

So I grew up always
wanting to be an NBA player

and ultimately get my family
to a better means, right?

Growing up, I saw
my mom and my dad

always working 5:00 a.
M. jobs, night‐shift jobs.

So my goal was to get
a D‐1 scholarship, right,

and go to the NBA,
just like all the other kids.

Well, I blew out my
ACL four times... Ooh.

Before graduating high school.

Wow.

And I soon realized
that that dream

of getting to that next
level was not gonna happen.

And throughout
this whole process,

I realized that I was knocking
on the door at the gym

at 5:00 in the morning,

trying to use the
shooting machine

that my school purchased

that was $6,000,
right, and 400 pounds.

And I couldn't get in the gym.

It wasn't accessible
to me at the time, right?

I tried to buy
one for our house,

and it was like five, six grand.

So there was no way my
family was purchasing one.

And at that point, I realized

that these companies are
really overlooking the market.

So we came into
the market for $1,495,

and we're the first company

that started payment‐plan
solutions for individuals.

How much money did you put
into it to get it up off the ground?

$15,000.

And how did you earn
that $15,000, Thomas?

YMCA. Shoveling mud.

Everything that you
can think of, like ‐‐

- I
- was putting it all in.

Thomas, what are your sales?

We launched March 1st of 2020.

So in five months, we
presold $215,000 worth of units.

Wow. So that was
on a Kickstarter or...

No. So, we actually launched
pure e‐commerce on our website.

So what were you doing

to get people to know
about your product?

We started completely
word of mouth.

And as you know, in basketball,

it's a community where if
somebody says something

or there's a video out about
it, it goes pretty viral, right?

Right, so all the
kids on Instagram

who are shooting, right,

they put this into
an Instagram video

to show how they're working out.

All the kids that
watch that think, "Okay.

If they're using it,
then it's cool for me."

- Exactly. Exactly.
- I'm not clear.

Have they actually been
shipped and are being used,

- or is this preorder stuff?
- This is preorders.

Everybody has paid us up front.

Okay. The product's
not in the market yet.

But how many units is that?
How many units? 125 units.

And not one has been
delivered yet? Right.

This is our testing unit.

We've gotten here with $215,000
in sales through a pandemic

with no working
capital, all with one unit.

What's it cost you
to make a unit?

$977.

Oh, wow. Wow.

Right. So we have
roughly 35% margins.

We think that at scale, we
could bring that margin down.

And what about power?

If I take it to the park

and just want to shoot, what
about power? Yeah. Yeah.

So how long does the power last?

It does need to be plugged in,

but version two, that's
exactly what we're on.

Okay. So that's a
challenge, right? Yeah.

That makes it more
for the backyard

or the bucket you
have in your driveway.

Yep. Right?

And it really doesn't help you
in terms of going to the park.

Some parks actually
do have outlets.

Have power? Yeah.

Yeah. You'd be
surprised how many do.

Look, I go out and
I still shoot, right?

'Cause of quarantine, right?
That's how I clear my head.

It sure didn't show in
shooting those baskets.

Yeah. Trust me. That
should clutter your head.

I can shoot. But, you know...

There are other options
that are low cost, right?

So, there's just the metal
rack that just, you know...

Yeah... if you're just shooting

and it just rolls right back
to you, that costs a lot less.

Now, every basketball player
will tell you they hate that.

Well, yeah, but I like
$1,500 more than I hate...

Mark, what do you guys have with the
Mavericks? Yeah. It's a whole different level.

So, let me give you
the comparison, right?

So, if you're outside
shooting by yourself,

it's gonna take about six hours

to get up to 500
shots in, right?

Versus our machine, you
can do that within an hour.

So, Thomas,
let me take a stab at this.

When I first saw the pitch

and watched Mark
miss basket after basket,

I thought to myself, "You know,

this is a crazy idea
without any merit."

But the more I heard
the story and the fact

that you actually sold over
$200,000 worth of them,

that is more impressive.

This isn't a product
for me, though,

but we do have a token NBA
owner we keep on the side

here at "Shark Tank."

But I applaud you.
This is a cool product.

Means a lot coming
from you. But I'm out.

Listen, Thomas.

I think it's a great idea.

I think it's very useful.
I'm just not a "sporty girl."

You know? So as an investment,
it's not the right one for me.

So for that reason, I'm out.

Thank you, Lori.

Thomas, I got to tell
you, I love your story,

and it's so inspiring.

It reminds me of when I grew up.

A kid from the Boys
and Girls Club ‐‐

I think it's fantastic.

I love the name
Grind. I love your grit.

For me, I'm having a problem

with those margins
and the price.

For those reasons, I'm out.

Thank you.

Look, the challenge is
right now, one, the valuation.

Okay. Yeah. Right?

Two, your margins and how
many you can actually make

and how many you
can actually sell. Yeah.

I love the, you know,
just grinding all your life.

That's who you are. Absolutely.

And I respect that.

What you've been able
to accomplish is awesome.

Um, I'm just...

Yeah, let's negotiate, Mark.
Let's ‐‐ Let's figure this out.

Because I think this can
easily go to a $5 million

to $10 million
company. I'm not sure.

That's the question.
I'm not sure of that.

Right? I‐I am.

No entrepreneur doesn't
think so, right? I got you.

You know? Absolutely.

You know, it's kind of
scary to sit next to him,

and he's not sure, and he's
not buying, and I'm wondering ‐‐

No. No. Let me just tell you.

The minute you walk out that
door, with or without a deal,

I'm gonna buy one
for my backyard.

He's not here for one sale.
What are you doing, Mark?

Three Sharks are
out, and Mark is undecided

about Thomas' basketball
shooting aid, Grind.

Look, the minute
you walk out that door,

with or without a deal, I'm
gonna buy one for my backyard.

He's not here for one sale.
What are you doing, Mark?

Are you gonna make an offer?

'Cause I would like to address
it. Such a good item, Mark.

I'm thinking about
it, yeah. Yeah.

Thomas, I think your
price point is too high.

I think your product
is too ugly, all right?

If my neighbor put that in
their driveway, I'd kill them.

That's the truth. I...

So I don't know what you
could do to make it look better,

but I think it's
got to look better.

We're going ‐‐ We're
going for a very mechanical,

Well, you've seen it.

It looks mechanical.

But I'll tell you,

I think you're a
phenomenal entrepreneur.

You got the whole package.

I would like to
make you an offer,

but I don't want to go in

without one of these
sports guys, okay?

One, because I want
to use their money

and two, because they know

what they're doing in
the sports field and I don't.

So I'm anxious to see if...

So, what do you
have in mind, Barbara?

So I'm thinking I would
offer $250,000 for 20%.

It's not enough.

You don't think that's
enough? Yeah. It's not enough.

Oh, then I agree with
my partner here, Mark.

He's gonna ask you for more.

What are you thinking, Mark?

So if there's two
of us, 30%. Okay.

I'll go with you. I
like your deal better.

So for two of us ‐‐ 'Cause
‐‐ Let me just tell you.

And I know you think it's a lot,

you know, but it's not.

Period, end of story, right?

Because Barbara's skill
set is her people skills.

And her ability with the
marketing and packaging

are better than mine.

I'm gonna make you pretty.

Yeah. She'll make
it pretty. Let's do it.

So 250K for 30%.

I have a cap on
myself, right? So ‐‐

That's up to you.

'Cause it's non‐negotiable.

Non‐negotiable.

Thomas, before you decide ‐‐

You have one of the
greatest owners of the NBA.

I mean, this is a dream offer.

Let's do ‐‐ Let's do
25% for $300,000.

I think the valuation is ‐‐
is great for you guys, right?

I'm gonna take it to a
$10 million company

easily in two years, right?

What do you think, Barbara?
I'll work my tail off, right?

Let's get it.

Give him a sweeter deal.

Because I have to be a
Shark, 250K for the 25%.

We got ‐‐ Let's get some ‐‐
Let's get some breathing room.

I just did, right? I just did.

250K for 25%.

Be careful. Now, if
you're worrying about 50K,

then you're not valuing us.

Thomas, what are you gonna do?

If you have to think
about it, Thomas...

Yeah. Let's do it. Of course.

All right. ‐ Good.

Whoa. I thought you were
gonna walk away. Whoof!

‐ Yay.
‐ Thank you, guys.

Love it. Good job.
All right. Thanks, guys.

Well done.
Take care. Congrats.

Man, I'm excited
about having Mark and Barbara.

I think we're gonna
change the world.

If you have a dream and you
see me up here making deals,

like, you can go do it no
matter where you're from.

In Season 11,
Mike Grice and Rob Neuner

made a deal with Kevin O'Leary

for their portable oxygen
canisters, Boost Oxygen.

- We'll take the deal.
- Lovely.

Let's see what
they're up to now.

Boost Oxygen provides

nearly five times the
concentration of oxygen

than the air that we're
normally breathing.

Whether you're a senior
citizen, whether you're exercising,

whether you're an
athlete, we can all benefit

from the use of
supplemental oxygen.

The year that we
pitched the Sharks,

we did $6.4 million in sales.

It's been less than a year
and a half since we aired,

and we've done over
$15 million in sales.

We've doubled, from 4,000
to over 8,000 locations,

where Boost
Oxygen is available ‐‐

Big 5 Sporting Goods,
Dick's Sporting Goods,

Kroger grocery
stores, Walgreens,

all the way down to those
individual mom‐and‐pop retailers

who recognize the
value of our brand

that they can bring to
their local consumers.

I used to drink coffee
in the afternoons.

Now in the afternoon...

I Boost.

Boost Oxygen
is one of those deals

that you say to yourself,
"Why didn't I think of that?"

People have learned
about it all across America.

The brand is becoming
one of the best out there

in terms of helping athletes,

helping hikers, helping
people that work out.

I see this company
being huge in two years.

Look, we should all take a
moment and smell the roses.

Or better still, take a boost.

Boost Oxygen
was started 14 years ago

in Bridgeport, Connecticut.

And when the pandemic hit,
Bridgeport, being an inner city,

closed their schools,

and a lot of the school‐aged
children lost their access

to proper nutrition
during the day.

We wanted to help, so we donated

to Connecticut Food
Bank of Bridgeport

to help provide
meals to the needy.

It's really inspirational
to be able to reach people

with a product that
didn't exist 14 years ago

and the millions of people
that now know about it

and rely on it on a daily basis.

We're on the leading edge

of bringing an entirely
new idea forward,

and we're helping millions
of people as we do so.

Next up is an easier
way to make healthy snacks.

Hello, Sharks.

I'm Karen Nation from
Los Angeles, California,

and I'm here seeking $300,000
for 12% equity in my company.

I've dedicated
my life to nutrition

and found that people really
want to take back control

over what they put in their
bodies for healthier lives.

But when it comes to
snacking on nutrition bars,

the problem is there's way
too much sugar, preservatives,

poor‐quality ingredients.

And let's be honest.
They often taste unnatural.

So instead of eating expensive
candy bars in disguise,

I started making healthy,
homemade protein bites.

Sharks, I've reinvented
the snack game

with Creation Nation,

the world's first protein
bar and bite mixes.

It's no‐bake, easy
as a protein shake,

and even fun for kids to make.

Here's how it works.

Start by pouring any
of our mixes into a bowl.

Add your choice
of liquid to the mix,

then your favorite
nut butter or syrup.

One of the best parts
is you control the sugar.

So whether you're keto,
paleo, vegan, or gluten free,

personalizing your snack is
as easy as one, two, three.

All that's left to do is mix.

And then you're gonna roll...

and take a bite.

That's cool.

Creation Nation is leading
a DIY snack revolution.

So who's ready to raise the
bar with me and have a ball?

Wow.

So, the ones on your
left were made keto style,

with just almond butter.

The energy bite mixes, we made
with peanut butter and honey.

Except for yours, Lori. There's
no peanut butter in yours.

Thank you.

Mark, all of yours are
our vegan mixes. Cool.

And how much protein?

It's between 12 to
16 grams of protein

for a full‐size bar

or about five grams
of protein per ball.

They're very good.
They're actually really good.

Very tasty.

So, how has the
market received this?

How are you selling?

So, we sell online.

One of our first retail partners

was one of the big
e‐commerce sellers.

Now we're also in Whole
Foods Market on the West Coast,

Costco in the Midwest, and
Walmart on the East Coast.

Are these regional tests?

How come there's no national
rollouts? ‐ Yeah, so ‐‐

We haven't gone national yet,

so we're still in
less than 500 stores.

What does it cost
me to buy this?

What does it cost
you to make it?

So, it's $2.00 to $3.50,

depending on which
product, to make it.

And they retail between
$7.00 and $11.00.

I'm wondering ‐‐ How did
you come up with this concept?

Well, I've really been
obsessed with nutrition

since I was a kid.

I spent some years in
the foster‐care system,

and the families really couldn't
accommodate my food allergies.

So I just didn't eat
or I ate a candy bar,

and I was constantly falling
asleep in class or always sick.

But I am a very
determined person,

and I pretty much
self‐studied my way to health

and later became
certified in sports nutrition.

Karen, why were you
in the foster‐care system,

and what was that like?

Well, um... Well, yeah.

Family life at that time
wasn't a good situation,

so the courts decided
it was safer for me

to live in foster care.

The families were nice,

but it's, you know,
it's not your family.

It's not your home.
No. Of course.

It's definitely very different.

One of the many jobs I
held ‐‐ I was a house mother

for 14 children in foster care.

And I had that job for about
a year and a half. Wow.

And these kids developed
such a sense of value

that changed them forever.

You learn a lot through that.

You learn to care
for yourself, I think.

Mm‐hmm.

What's revenue going
to be this calendar year?

At least $500,000.

We did $500,000 last year,

and we're set to do
at least that or more.

Well, you would hope
you'd grow year over year.

Was there any profits?

We're pretty much
break even all the time.

We run on cash flow.

Are there other
no‐bake products? No.

The question then becomes
why haven't you sold more?

Yeah. What's holding you back?

We went to trade shows,
and we had all this interest,

all this momentum.

We hit a major
co‐packer problem.

They breached our
contract in a variety of ways.

I had very specific
stipulations about the shelf life

of the ingredient they
were putting in our product.

They didn't follow that.

So in other words, they
didn't follow your instruction,

you shipped out
a bunch with the ‐‐

let's call it tainted product.

Correct. And what happened?

So, we did a lot of withdrawals.

It was just not to
our quality standards.

I pivoted quickly.

I got a new co‐packer

we've now been with
for a year and a half,

and they've been amazing.

By the end of last year,
we were doing great.

And then with COVID,
things kind of changed. Um ‐‐

So I pivoted again.
Why wouldn't this be

a great product for
home at COVID? Yes.

So I pivoted our
strategy to e‐commerce,

and we've tripled our sales.

- Wow. Good for you.
- Wow.

Last month, how much
did you do from wholesale?

We're about a 50/50
model right now.

Just last month. Last month.

I don't know the number off
the top of my head. I'm sorry.

Did you guys make
money last month?

Absolutely. Yes.

We made about
a total of $30,000.

Good for you. And what do
you expect to make by year end?

I'm expecting to do
at least $500,000.

We've already done $330,000 ‐‐

Money that you can take
as profit in your pocket.

Money you could
put in your pocket

and say, "Hey, I
got this money out."

If you're gonna sell $500,000 ‐‐
Not sales. Not sales, but profits.

If you sell $500,000, what
will you have in the bank?

I‐I put the money
back into the business.

I mean, our margins
are 40% to 50%.

This is a basic
question in investing.

You're gonna sell
$500,000 worth of this stuff.

Are you going to profit
from that enterprise?

No. No. We ‐‐
Everything that we profit ‐‐

Took me a long time
to get that out of you.

I run a very lean business.

She's not answering. Everything that
we make, we put back into marketing.

Listen. If you don't know
what the definition of profit is,

you're in the wrong place, okay?

I... I'm out.

Well, listen. I
like healthier food.

But sometimes I
just go with my gut.

I like the product. I like you.

But I don't think it's the
right investment for me.

And so for that reason, I'm out.

Thank you, Lori.
I appreciate it.

I really like your mission. I
like everything you stand for.

Your story is really
amazing and aspirational.

But when I look to
invest in a business,

I look for someone to know
the numbers inside and out.

So for those reasons, I'm out.

Well, Karen, you still have two Sharks
in. Barbara, do you like this at all?

Barbara and Mark.
I love the product.

And just a piece of
advice. What frightens me ‐‐

If I'm gonna write you
a check for $300,000...

It's too high a price... and you're
not remembering the numbers,

that scares me.

Karen, Mark
wants me to go in on this deal,

but there's no money in it.

And that's a basic
requirement I have for investing.

We have great margins. Like ‐‐

But it doesn't find its way
into your pocket eventually

over the years so far.

I‐I must be missing
something basic, but I'm out.

This is a pantry staple
that bridges the gap

between nutritional powders
and grocery products ‐‐

Yeah. Karen, I wish ‐‐

I'm trying to get
there, but I just can't.

The real product here is fun,

but that's going
to be a lot of work.

So for those reasons,
I'm out. I'm sorry.

I know I'm gonna
regret this, but I'm out.

Thank you.

Congrats, Karen.
Congrats. Terrific.

Congratulations.

Ugh.

I'm a bit worried about
her. - I am too.

I think she's gonna take
this rejection pretty hard.

I'm gonna check up on her.

Oh, Barb.

Wonder where she is.

Shark or no Shark, I'm gonna
keep doing what I'm doing.

And, you know, we have
first‐mover advantage here,

and I'm just gonna keep going.

Yeah. Hey, Karen.

I didn't want you to leave
here ‐‐ I hope you don't mind.

I didn't want you to leave
here thinking that you failed.

Thank you. That you were able to
stand up to everybody was remarkable.

You've held your cool,
and you knew your numbers,

contrary to what
Kevin was saying. I do.

So you should be
walking out of here

totally proud of who you are.

Thank you, Barbara. I
really appreciate that.

I've worked really hard. Because
you're gonna inspire everybody

who's watching the show.

You're gonna be shocked

at the inspiration you're
gonna provide people.

Okay. Thank you,
Barbara. Yeah. Okay.

So walk out of here
proud. So great to meet you.

Having a Shark on my
team meant so much to me,

so I'm disappointed
that didn't happen.

But I'm just gonna
keep going and...

just keep going.

Next up is a better way

to keep your prized
kicks looking their best.

Hi, Sharks. I'm Chris
Pavlica from Elmore, Ohio.

And I'm Kevin Consolo
from Chagrin Falls, Ohio.

And we're the creators of...

SneakErasers.
SneakErasers.

We're here seeking $200,000

in exchange for
8% of our business.

As we all know, it's
important to look good.

Barbara knows exactly
what we're talking about.

I like what you're talkin'.

And for many, looking
good starts with their shoes.

That's right, Sharks.

People love the look of
shoes with new white midsoles.

But they're impossible
to keep clean!

We swear if you just look
at them wrong, they get dirty.

The second you leave the
house and step outside ‐‐

Not the driveway! ‐‐

You already scuffed them up.

Or on a rainy day ‐‐ Watch
out for that... mud puddle.

So unless you want to wear
a plastic bag over your shoes,

no one can tiptoe
around these elements

and avoid these disasters.

We knew there just
had to be a better way,

which is why we
created... SneakErasers.

This is a
unique dual‐sided sponge

engineered and designed
specifically for shoes.

You just tear open the
pouch, pull out the sponge,

and use the white side

to easily remove all
the scuff marks and dirt

and flip it over to the
orange side to wipe it clean.

And best of all,
it's premoistened,

so you can touch up your
kicks wherever you go.

And it works on all kinds
of shoes ‐‐ sneakers...

casual shoes...

sports cleats... kids' shoes ‐‐

Okay. All right. All right.
You guys get the point.

So take these bad boys with you

in your purse, your
carry‐on, your computer bag ‐‐

wherever you want to
keep your favorite pair

looking like new, like
before a job interview.

Or like before
going on a hot date.

Like with you, Barbara.

So, who wants to kick it
with us and make millions?

Oh. I like that part.

Good job.

How many shoes
will one of these do?

It depends on the shoe.

We've gotten up
to like nine pairs.

No water needed? Oh,
no water needed. Yeah.

And that's what
really separates us.

What does the orange do?

The orange part is
a super‐soft chamois.

So it works on any delicate or
sensitive materials on the shoe.

And it also wipes away
just like a pencil eraser.

If you left any shavings
behind, it just wipes it clean.

Well, I have good news
for you, boys ‐‐ It works.

Oh, good. Good. Thank
you, sir. Yeah, it does work.

What do you sell the three‐packs
for, and what does it cost you?

The three‐pack sells for
$9.99, and our cost is $1.98.

We do sell the one‐count

in one of the largest
retailers in America ‐‐

that display right there
‐‐ and that's $3.99 MSRP.

How are the sales?

We have a lot of tests
that have gone very well.

For instance, that one retailer
started on a 100‐store test,

and we just rolled out
nationwide ‐‐ 2,800 stores.

Who was that retailer? O'Leary:
And that was after how long?

That's Walmart. How
long did they test it for?

They tested it for about
four or five months.

It was just higher than
the buyers' expectations.

And we didn't know anything.
Neither of us are entrepreneurs.

We didn't have any experience
bringing a product to market.

We didn't know anything
about manufacturing.

We didn't know
anything about distribution

or how even to do packaging.
So what is your story?

How did you learn? The Internet.

And we just work our butts
off until we figure things out.

How much money have
you invested in the business?

I put my house behind it.

So I have a home‐equity
line of credit worth $300,000

that we've used to
finance these orders.

Wow. You are all‐in.

Yes, sir. Yeah.

Hey, but we're debt
free as of last week.

We have no debt.
That's the big news.

You paid it down?
As of last week,

- we are completely debt free.
- Nice job. Nice.

And we have some
cash in the bank.

What are your sales to date?

2019, we finished
the year at $202,000.

Wow. Good for you.

And this year, what
do you think you'll do?

Year to date, we're
over $1.1 million...

What?! ...and we
expect to do $1.8 million.

Oh, my gosh. Greiner: Wait.

So, I mean ‐‐ You
know, that's a jump.

Our e‐commerce is
about 12% of our business.

We started putting
focus into that this year,

and already it's
growing exponentially,

matching our retail business.

When we put money
into Amazon ads,

our total sales by month
are three times our ad spend.

Chris, what is your competition?

In terms of
removing scuff marks,

there are bulky brush kits
that are not very convenient.

You can't put them in
your pocket. Spray foam.

They go everywhere.
Yeah. They're messy.

Fortunately, we do have
five different patents pending

across our line,

and we have been
knocked off once.

By us. By our own product.

So we made an economy
line and a premium line.

And what's the difference?

The big difference
are the pre‐moistened.

So, this is dry. The user
has to add water to it.

The density is different.

This has a scouring
pad, not a soft chamois.

You know, that's sold at
dollar and discount stores.

And we've sold 2.2 million units
of that already since October.

If I look at the two
beside each other,

do I know they're the
same company? No. No.

This is Shoe Eraser, and our premium
brand is SneakErasers. Well, good for you.

That's a first in
"Shark Tank" history.

I've never seen anybody knock
themselves off. Thank you. Thank you.

Look, I like this story
'cause it's got sales, okay?

What I am surprised to hear
is that you're only 12% digital,

which is crazy for
a product like this.

This should be 50%
direct to customer.

I'll make you an offer.

I'll give you $200,000 for 15%.

Thank you so much.
Thank you, Mr. Wonderful.

We're flattered that you
would give us an offer.

Appreciate it. That's
a little bit more equity

than we want to give
up at this moment.

I think my name is a Shark.

Was that a no?

Guys, that there
is a lot to like here.

Thank you. I wore
cleats for almost 25 years.

And there's nothing worse
than using your metal cleats

and have them be dirty, right?

It's a thing of pride.

That's something that
George Steinbrenner taught us.

Always make sure
you shave, cut your hair,

and clean your shoes, right?

But when I think about
goals and dreams, I like clarity.

What can we do for you to
take you from good to great?

It's about taking the skills
that you've already perfected

with advertising and marketing.

Having that investment will
help us take our costs down

to increase our margins.

But it's also going to help
us launch our other brands.

So Golf Erasers is already

our number‐one‐selling
e‐commerce item.

But it is to clean golf club
faces in between shots

and clean your shoes.
Oh, the face as well.

We want to tell you about
Auto Erasers, as well.

Auto Erasers is an
instant detailing sponge.

So, these are already carried

in some of the largest
retailers in their sector.

When you were giving
us your sales numbers,

were they included,
or is that separate?

Yes. Yeah. They are included.

All part of the company.

They're still only
5% of our business.

When you came in
here, I got a little excited.

I saw a single product
that was selling like crazy,

two guys that had all the
skill sets to make it happen,

and then you started
talking about this other stuff.

And I realized what
I really have here

is guys who are inventors.

I'm never crazy about
inventors because the money

you make on this,
you lose on that.

You're all over the board.

I'm out.

Hey, Barbara, thank you
so much. - Listen.

I think exactly... Don't get
discouraged. Don't get discouraged.

The opposite.

Thank you. Because inventors

are the lifeblood of
innovation and products.

I've created over 800 on my own.

Brand extension's everything.
You get them to your website.

You have other things to offer.
You're just gonna add sales.

These aren't extensions.
They're whole other markets.

That's what's wrong. Greiner:
So I like that you're inventors

and you also proved
that you're marketers.

And? So
you can do both.

Thank you. So Alex
and I were talking.

Yes. And we were thinking

that we are going to
give you an offer together.

So it will be Alex
and I together.

It's going to be $200,000
for both of us but 20%.

Ouch.

Ichi‐ay caramba!
Thank you for your offer.

Because you got to make
us want to get out of bed

and go, "Hey. Let's get crackin'
on SneakErasers." I understand.

All of a sudden, the
Mr. Wonderful offer

looks really attractive.

- Yes.
- Not to us.

But what you need
is instant credibility,

and you need visibility.

Lori and I make a good team.
She takes care of e‐commerce.

I take care of
bricks and mortar.

And we want to put
you in over 500 gyms...

Wow... day one.

Wow. That's what we
want to do to get you started.

And then... And I'll help
you with, like, the retail end

of the sporting‐goods stores.

I feel like you need
to blitz the market,

because you have a great
trademark, logo, and name.

Okay, Lori. Let them
make a decision here.

You've got two great offers.

And, Mark, are you
gonna do anything?

Say what?

Are you in or are you out?
Oh, I get to ask questions now?

No.

All right,
guys. Guys, look.

What does it cost you
just to make one of these?

Costs 59 cents. Okay.

So ‐‐ And could you do
one with custom packaging?

Yes. Yes. Of
course. Private label.

So if I wanted to offer one to
Mavs fans under the age of 20...

Absolutely... or if I
wanted to call up Nike

and say this should be bundled

and we can get it down
to 75 cents or whatever.

Yeah. Okay. So I'll
make you an offer.

The $200,000 and I want 12.5%.

Okay.

But it's right now.

Thank you for this
offer. - No.

If you think that's right
and the right strategy ‐‐

You got 20% or 12% with
a guaranteed customer.

That's not the right
strategy for you guys.

One Shark is out.

Chris and Kevin have
three offers on the table

for their shoe‐cleaning
company, SneakErasers.

Kevin has offered
$200,000 for 15%.

Lori and Alex have
offered $200,000 for 20%,

and Mark has offered $200,000
for 12.5% of the company.

Okay. Sorry. Sorry about that.

Mark, would you up it
to $300,000 for 10%?

- $300,000 for 10%?
- Wow.

I'm out, guys. Corcoran: Wow.

Wise guy.

Who's the Shark now?

Guys, I'm not gonna
do it for less than 15%.

That's 20%. What do
you guys want to do?

So, Lori, our offer
has to appear much nicer now,

now that Mark's out.

Well, our offer should
have appeared really nice

to begin with. It
is a fantastic offer.

Can you remind me what
your offer is? I'm sorry.

I'm so
sorry. - Yeah!

- I'm so sorry.
- You forgot?

Is he always like this
when he gets nervous?

- No.
- Here's our offer.

It's $200,000 for 20%.

So you guys have a huge delta

between what your
perceived value is

and what Sharks think
you're worth. Yeah.

We love the two Sharks.

Would you guys be willing
to come down in equity at all?

We thought 8% was a lot.
Would you bring it down at all?

No.

And I'll say this last thing,

because I'm about
to take it off the table.

We'll take it. We'll
take your deal.

Wow. Thank you.

Boom! Oh. Well, boom.

- Mark, we are so sorry.
- Closing line.

Congratulations, guys.

Congrats, guys.

Congrats. Great job, guys. Aww.

Way to go, buddy.

It seems crazy to pass
up an offer from Mark Cuban,

but on the other hand, two
Sharks were going in together.

And it's exactly
what we needed ‐‐

a professional athlete
who everyone knows

and Lori, who does
everything that we need

to take us to the next level.

It's just impossible to
pass up the both of them.

Next into the Tank

is a way to make
home brewing simpler.

Hey, Sharks. I'm Aaron.

And I'm Brett, and we're
from Boulder, Colorado.

We are asking for $500,000
for 2% in our company.

Ouch. Wow.

Who doesn't love sipping
on an ice‐cold craft beer?

Am I right?

But the reason why
beer lovers everywhere

aren't making their
own beer at home

is 'cause it's not
as easy as it looks.

No. It takes tons of time,
experience, expertise.

And the worst part is
you can spend weeks

on a single batch of beer
and it can come out terrible.

That's why we've revolutionized
the craft‐beer‐making process,

taking home brewing
out of the basement

and turning beer
lovers into beer makers.

Introducing...

BeerMKR... BeerMKR.

This is the world's
first all‐in‐one

countertop
craft‐brewing appliance

that anybody can use. Wow.

All right, Sharks.

Aaron and I are gonna
quickly walk you through a demo

of this product just to show
you how easy it is to use.

First thing you do is
you take your MKR Kit.

You connect the
bag into the machine,

open it all up,
pour in your grain.

The next step you do

is basically fill the entire
machine up with water,

close it all, press the
button on the front.

And over the next 24 hours,

BeerMKR is going to bring up
the temperature inside the machine,

mashing those grains
and liquid and creating wort,

which is a sugary liquid.

Next, you get a
notification on your phone,

and it says, "It's time
to put your yeast."

So open the machine back up.

You pull out that
basket of spent grain.

You then put in your
yeast, you put in your hops,

close the machine back up,
press the button on the front.

And again, over the
next five to seven days,

BeerMKR is going to
perfectly control the pressure

and temperature inside the unit.

Finally, when that
process is complete,

you get another notification

saying it's time
to tap your beer.

So you remove the bag
of clean fermented beer,

bring it over to your beer tap,

which is included
in the package,

simply install the bag of
beer inside the beer tap,

screw in the CO2 cartridge
that comes inside your MKR Kit.

And about a day later, you're
drinking cold, carbonated,

fresh, delicious craft beer
that you made yourself.

Wow.

It was nine days till
I got a beer, right?

It depends on the recipe.
So each different type ‐‐

Do you see any
problem with that?

‐ No.
‐ Y‐‐ No. No.

I mean, it's craft beer, Kevin.

You get a gallon of beer as a result.
Okay, I guess it is worth $25 million.

So, before we jump into
the valuation question,

do you guys want
to drink some beer?

Yes. Yes. Yes. And ‐‐
And another question.

How many beers
will you get out of it?

So, BeerMKR makes
a 12‐pack of beer.

And the MKR Kits
themselves cost $15.

So starting at the lightest ‐‐

That's our Future IPA.

It has a little
bite to it. It does.

I like it. Thank you.

So the next up, we
have our Ghost Wheat,

which is a classic
American‐style wheat beer.

So, next up, we have
our Redwood IPA,

and that's a classic
West Coast‐style IPA.

I'm gonna give this
IPA a 9 out of 10.

Pretty good. Awesome. Thank
you. Awesome. Thank you.

And the only
reason it's not a 10

is the arrogance
of your valuation.

We'll get to the arrogance.

We promise. We'll get
there. We'll get there, Kevin.

Now we're on Chubby.

Kevin, they named
this one after you.

That's the Chubby Stout.
That's the Chubby Stout.

I really like this one.

Guys, how did you get into
the business in the first place?

So, first and
foremost, we love beer.

I was a home
brewer for 15 years.

And, you know, honestly,
we met at Cornell.

Brett and I were in the
business school together,

and we started the company

in an entrepreneurship
class at Cornell.

And it was for home‐brewing
temperature‐control devices.

You're Cornell MBAs?

Yes, sir. Correct.

So break down
the numbers for me.

Sure. So this costs
us $375 to make.

And it retails for $499.
Wait, wait, wait, wait, wait.

It cost you $375 for
all‐in, all the pieces...

Yep.

Including a first ‐‐ one
batch of consumables?

That's correct.
Delivered to your home.

And you sell it for?

$499.

How can you sell it so
cheap? That's no margin.

Right. Right. So, we
have two revenue streams.

One is the machine and one is the MKR Kit. I
get the replacement of consumables and all that.

What we want to
do is we make sure

we get as many machines
out in the public as possible.

Okay. That's fine. So we'll
go into the consumables.

Exactly. Yep. Yep. Exactly.

So the consumable
side of things,

it costs us $9 to
$10 per ingredient kit.

At scale, we can get
that down to $7 per kit.

Is it a subscription,
just reorder?

We're encouraging our users
to go into a subscription system.

Okay. What's my monthly
cost for subscription?

$15 per 12‐pack.

What is your retention
rate of the subscriptions?

So, we're not there yet.

You mean you're not
selling any of these yet?

So, we are shipping
them literally ‐‐

MBA dudes! I'm
going to punish you!

We did our Kickstarter in 2018,

and we're delivering
those 1,200 units

in the next two weeks.

How many have
you shipped so far?

We've shipped about 24 of them.

So I should pay a million
bucks per unit you ship?

I'd just like to point out ‐‐

Had you shipped 50, then
you'd be worth $50 million.

How much money have you raised?

We've raised about
$3 million so far.

There you go. At what
valuation? You've got to be kidding.

Depending on the room,
between $5 million and $10 million.

It just makes no sense to me.

You ‐‐ It's like coming in

and asking us to believe
in the fairy godmother.

You have virtually no sales.

You have $3 million
put into it already,

and you have no
proof of concept, even.

I‐I must be missing
something basic, but I'm out.

We did have some proof of
concept when we kickstarted.

We sold 1,000 of these
things in one month.

And like I said, this is a space ‐‐
But you haven't delivered them,

nor have you
gotten the feedback.

Honestly, you
know, to Barbara's point,

the problem for me here is
everything tasted really good.

But because you haven't
had that in consumers' hands

and I don't know
what's gonna happen,

I can't invest at this point.

I'm sorry. I'm out.

Look, what you're
setting out to do is right on.

Sure. The challenge
is your margins.

Because you're going to
have to really retain people.

And I think that's gonna
be a lot more expensive.

And even if the valuation is
in the realm of where you're at,

it's gonna be hard to
generate enough profits

to give me a return.

And so for those
reasons, I'm out.

Well, to address those
particular points, I'd love ‐‐

He's out. Address
it with other Sharks.

Aaron,
brother, let me tell you this.

First of all, one
piece of advice

is when you come in the Tank,
you have to make it attractive

for us to make some money. Yeah.

When you come in here
and you say $500,000 for 2%,

five of us got turned off.

So for me, valuation
‐‐ very competitive,

and we don't know
what we don't know.

For those reasons, I'm out.

Kevin.

I'm a reasonable man...

We love you, Mr. Wonderful.
And I like to give,

particularly for entrepreneurs,

that at the end of the day,
the product is excellent.

You have not heard anybody
say this beer isn't great.

Absolutely. And I consider
myself a connoisseur

of all things with
alcohol in them.

My inner instinct
is to eviscerate you.

But I'm not gonna
do that because ‐‐

We appreciate that. I
think it's so interesting.

So how do I encapsulate
this ridiculous valuation

but still be a partner
with you? Royalties!

Now, let me show
you how to do it.

No royalty at all. No
royalty. Okay. Okay.

I just take what I do in the
wine business and apply it here.

$500,000. It's debt.

I'll do it at 9%.

Told you. 36
months straight debt,

which you can afford if you
believe your numbers, okay?

And I want 4% equity.

You can figure out ‐‐
Stay out of the cap table.

That's not a bad deal. Give
them to me as advisory shares.

I would do that deal, and you
should seriously consider it,

because you're not gonna
get a deal from anybody else.

There's an offer. What
do you want to do?

Well, would you be able
to go for 2% with the debt?

I'll do it at 3%. I'll
meet you in the middle.

I have an MBA,
too, unfortunately.

We're really worried about
the working‐capital implications

of that.

I don't want to fight
with you about valuation.

We're never going to agree.

So, Kevin,
let me give it a crack.

$500,000 and 9%
is $3,750 a month.

You guys feel you
can cover that?

- That's not a lot of money.
- That's nothing, right?

We ‐‐ Yeah. We could cover that.

The problem, though, is after
we're done paying that back,

we'd have had to
pay back $500,000

plus 9% over three years.

Yeah. That's why ‐‐ Yes.

Right, in which case,
it's ‐‐ We're still now ‐‐

But you have a partner
that millions of people know

and trust in these beverages.

If you don't want
to do it, don't do it.

I'm afraid that we're
not comfortable

with the debt portion.
I'm okay. Thank you.

I'm... I'm out.

All right. Thank
you, everyone. Okay.

Congratulations on
what you've done, though.

I'll look forward to it. All
right. Thank you. Thank you.

Thanks, guys. Good
luck, guys. Bye‐bye.

‐Thank you. ‐Take care.

Wow.

Yeah. Oh, man.

That was ‐‐ Yeah.
That was unexpected.

Yeah. A little bit.

Ultimately, we
believe in our product,

we believe in our team, and
this is gonna be a big deal.

So, you know, maybe the
Sharks made a big mistake.