Shark Tank (2009–…): Season 12, Episode 24 - Episode #12.24 - full transcript

Tonight on "Shark
Tank," Daniel Lubetzky, the founder

of the groundbreaking
snack company Kind,

returns to the Tank.

Do you have that
ability to be resourceful?

To be a hungry hunter?

What I need to know
is, are you gonna hustle?

I've drained my finances.

Eeh, Chihuahua, caramba!

Listen, listen, listen.

You haven't sold any yet!

We don't care.



Ohh!

‐I'll make you an
offer. ‐Are you nuts?

Guys, you have no
reason to be desperate.

No, no, no. Hang on a sec, Mark.

First into the Tank

is a customized version
of a bedtime essential.

Hi, Sharks. I'm Susana.

I'm Kevin.

And we're seeking $400,000

for a 5% equity stake in
our company, Pluto Pillow.

Now, I know what
you're all thinking ‐‐

another pillow company?

Well, yes, but
thankfully, here at Pluto,

we do things differently.



See, finding the perfect
pillow can be so amazing,

but finding the
right pillow for you

can also be super hard.

Here's how it usually goes ‐‐

while shopping online,

you're faced with an
overwhelming number of options

that can be hard to
compare with one another,

and with tens of
thousands of search results,

how do you know which
would work best for you?

In stores, is it better to
squeeze pillows with your hands,

or should you awkwardly
place your head

on the dirty display pillows?

The answer is both suck.

Well, with Pluto,
there's a better way.

Pluto is a custom pillow company

that custom‐builds
pillows to you

based on your body stats,

how you sleep,
and what you like.

Here's how it works.

Simply visit our website,

fill out a quick questionnaire,

tell us about your
current pillow,

what you like, what
you didn't like about it,

then answer a few questions
about your personal preferences.

Then all of your data
runs through our algorithm,

helping us create the
perfect pillow for you.

Our modular design
allows us to create

over 35 possible variations

through our innovative process.

The best part?

While there are a ton
of pillows out there,

nobody else does this.

Even better, our
customers love us.

So, Sharks, before
you hit snooze,

which one of you will join us

in helping everyone
get a good night's sleep?

Alright, Sharks,
right in front of you

in those really cool boxes

are your very own
custom Pluto pillows.

Now, we had to do some research

to figure out what we
should craft for you.

We think these make
great starting‐out points.

So, Mark, word around the league

is that you prefer fill
pillows over foam pillows,

and you like your
pillows to be really soft.

So we made sure
to craft that for you.

Squishy, squishy, squishy.

‐Nice. ‐I like my
pillow squishy.

Daniel, we heard
how important it is

for your sleep products
to be hypoallergenic.

The good news is,
all of our pillows are.

We crafted a pillow for
you that's both light and soft.

Mr. Wonderful, we
heard that you prefer

fill pillows over foam pillows,

so we made one for
you that's just that,

but one that never flattens.

Lori, you tend to
heat up at night

and you like more of a
medium firmness level.

And lastly, Robert, lucky you,

you're exactly the
same as Mr. Wonderful.

Both of you love
thick, plushy, fill pillows.

Yours is a quilted cover
while Kevin's is a smooth.

So, Sharks,

enjoy your
out‐of‐this‐world Pluto pillow.

Susana, I have a question.

I always assumed

that there was actually a
better pillow for everyone.

Are you saying that
that's not the case,

that really, truly, there is no
scientific best for everybody?

There isn't. So, we
take your body stats,

sleep positions,
and preferences,

so we know that,
like, let's say,

if you're a side‐sleeper,

you need that,
like, neck support

for the neck to
shoulder tip ratio,

whereas, like, a
stomach sleeper,

it's better if you
sleep on a flat pillow.

But besides that, we also
have empirical evidence,

we have over 1.5
million data points

that we take into account,

of, like, what makes
a great pillow for you.

What do you mean by
those 1.5 million data points?

So, we have an
algorithm on our site

that, every time anyone
goes on our website,

orders a pillow, we
store this information,

and then we look at other people

who answer similarly
to that person.

And then we see, like,
exactly what kind of pillow

would be best for them
with this data point.

And this has actually led
to a very low return rate

compared to the
industry average.

The industry average is 12.95%,

while ours is sub‐8%, and
we did this in two years.

Break down the numbers for me.

2018, 197K when
we first started.

2019, 473K.

And this year so far is 490K.

‐There you go! ‐Wow.

What's the average sales price?

We sell our standard
sizes for $95.

How are you manufacturing?

So, how this works is,

if you guys open
up your pillows,

inside, there's
actually a foam core,

and it's surrounded
by a plush outer cover.

So there's these two main parts,

and through our questionnaire,

when it goes
through our algorithm,

the computer
actually decides, like,

"Hey, this person needs this
foam with that plush cover."

So someone's in
the facility picking,

putting it together, and packing. Yeah, they
just pick it, put it together, and box it.

Just two components
and variations

of those two components?

Yeah, two components
make over 35 variations

that feel really different.

One pillow, you sell it at $95.

Yes. And then what
does it cost you,

including fulfillment?

And what is your ‐‐
what do you have left?

So, $95 ‐‐ $18 shipping,

and it cost us $25 to
$30 to make the pillow.

So $43. So you only
have about 50% margin.

Yes, so with that,
it's $50 to $60,

just cost of goods sold.

So that's not a big ratio
difference. Normally, there is.

It sounds like your gross
margin structure is not so good.

Is there a reason why?

Because no matter
how much you grow,

if your gross margin
out the gate is bad,

you're just compounding
the problems.

Why are your gross
margins not healthier?

Yeah, and that's why ‐‐

Like, if we could have
a bigger‐size warehouse

to order more materials,
we could get that down

to $20 to $25
instead of $25 to $30.

You're talking
about a few dollars.

Like, $18 of your
cost is shipping. Right.

Tell me a little bit about
the back‐end operations.

How big is the team?

So, before this year, it
was actually just us two.

We boxed every pillow. We answered
all the questions. We made everything.

You guys did all the
boxing in the warehouse?

Yeah. All of it. All the
boxing in the warehouse.

And then we talked to
press. Okay. And now?

And now we hired
two pillow‐builders.

Pillow‐builders.

Yeah. And we have someone

who is full‐time on
customer service.

I want to share with you
a few things, my thoughts.

While you're picking
something smart,

because pillows are great
and everybody needs pillows,

it's also an extremely
competitive space,

and I just think the
combination of that

along with your valuation,

it's just not the right
investment for me.

I'm sorry. I'm out.

Thank you very much,
Lori. Yes. Thank you, Lori.

Guys, you
guys are super impressive.

I think Lori makes
a really good point

about how competitive
that industry is.

Yes, but nobody
does what we're doing,

in terms of taking body
stats, sleep positions,

and preferences into account.

And we have a
utility patent pending.

We have over 1.5
million data points.

You have a utility patent
pending on what? Yes.

On the way we make the pillows
combined with the algorithm.

Really?

And we have over
1.5 million data points

that no other company has,

in terms of, like, evidence
on what makes a good pillow.

We did all the hard
work already, right?

We already established the
brand. You actually haven't.

We already created a
product. Guys, you haven't.

So, here.

I'm guessing you're
using machine learning,

'cause it's linear, right? Yeah.

1.5 million data
points is nothing.

But you actually have
kind of dropped the ball,

and I can tell by your answers,

because the better
approach is to say,

"Based off my data
points, including my orders,

I can build in anticipation
of what will be ordered

and where they'll
be ordered from,"

'cause you already know,

based off your machine
learning algorithms,

how many orders
are going to take place

from this part of the country,

that part of the country,
this part of the country,

that part of the country, right?

I'm saying all this because

I don't think you've
gone through

that whole process yet, right?

And I don't think
you're fully aware

of all the things you're going
to have to go through yet

to get there.

So for those reasons, I'm out.

I love pillows.

I'm obsessive about pillows,

but, you know, this
word of "algorithm."

Everybody talks about
how they have an algorithm,

and I'm not 100% sure
that nobody else can do that.

I don't think this is

where I'm gonna sleep
comfortably, so I'm out.

Thank you very much,
Daniel. Thank you, Daniel.

If this had been for a
lower amount of capital risk,

I would have probably
done it just for the talent,

but you guys are too
small for 8 million bucks.

I'm out.

Thank you, Kevin.

I have to tell
you, when you came out here

and you started
talking about pillows,

I was bored out of my mind.

I couldn't have
been less interested,

but you sold me.

And I think there's a
couple of big problems.

To Mark's point, your
algorithm, it's not predictive.

You've got to know what the
potential orders are gonna be

before you get them,

and I think you'll
start getting that

once you get the volume. Yeah.

But come on!

Who up here knew
everything about their business

and didn't make those mistakes?

So at the end of the day,

it's not about the
mistakes you're making,

it's about my confidence in
your ability to overcome them.

And you've sold me on that.

So I like it all.

Hate the valuation.
Hate the valuation.

Don't let that get
in your way, Robert.

So I was being quiet
with my own algorithm

and saying, "What number
would make me feel comfortable"...

Here it comes. ‐..."sleeping at night?"

Four Sharks are out,

but Robert is interested
in Kevin and Susana's

custom‐built pillow
company, Pluto.

"What number would
make me feel comfortable"...

Here it comes. ‐..."sleeping at night?"

So, you're looking
for $400,000 for 5%.

I'm thinking $400,000...

for 20%.

Eeh, Chihuahua, caramba!

It's aggressive, but your
ask was very aggressive.

It's an amount that I
feel comfortable with,

but I think it's one
of those things.

You won't need more money.

You're gonna need more expertise

and more ways to
get out there faster.

$400,000 for 20%. It's an offer.

You've got a "Shark Tank" offer.

Go. Just go. 10.

I think that's just
a little bit high.

Would you be able to go
down to 9% for $400,000?

No, I'm not gonna
come down that much.

I mean, would I go
down to 19, 19.5,

some marginal amount?

Sure, maybe, if you
could convince me.

But I think it's a lot of money.

It really is. Okay.

And it's a lot of my time.

And I do think you're
one of these investments

we're gonna look
back on and say,

"Wow. Pluto went to the moon."

That's true.

I think 19 is just a
little bit too much.

We've seen triple‐digit growth

year over year since we started,

and we feel like

there's not really much in
our way to keep growing.

- We do want some expertise.
- Stick to your guns, guys.

Stick to your guns. Yeah.

There's nothing wrong
with sticking to your guns.

I disagree, guys. He
could help you a lot.

Stick to your guns,
guys. - Everything for me

is a matter of
investment and risk,

and I think at 20%,
I'm deeply invested.

What do you want to do?

Let's shoot for the stars!

Thank you so much
for the offer, Robert,

but I think 19%, 20% is
just a little bit too much.

I think we can't really
go more than 10%

for $400,000.

I‐I can't get there.

Okay. Thank you,
Robert. Thank you.

Guys, good
luck. Thank you so much.

Congrats, guys, and good luck.

Thank you. Well done.

Good luck, guys.
Thank you very much, guys.

Thank you. Thank you.

While we're so flattered
by Robert's offer,

we felt we were worth way
more than what he was offering,

and we feel that we could still
grow this company ourselves.

In Season 11,
farm owner Katey Jo Evans

made a deal with Lori
Greiner for The Frozen Farmer,

ice creams and sorbets
made with imperfect produce.

I will give you the money

if we can land a
major national chain.

Let's see what she's doing now.

Airing in March of 2020

during the height
of the pandemic

put us in a really tough spot.

We had built an incredible
amount of inventory up,

anticipating increased sales,

but we couldn't get the product

from our warehouse
to the grocery store,

so we launched online
sales of our ice cream

and shipped directly to
our customers' doorsteps.

We pivoted our farm
creamery to help our community

and supplied everyday
essential goods

out of our drive‐thru window,

and we donated pints
to local hospital workers,

police stations,
and fire departments

to thank them for their service.

What happened
next was incredible.

A Walmart buyer was
interested in the product line.

I was able to close the deal

with more than 4,300
Walmart locations nationwide.

When I pitched on "Shark Tank,"

I brought with me
our "nice cream."

We've since changed
the name to "Frobert."

It's a blend of our traditional
ice cream and sorbet,

reducing the fat
and calorie content

without sacrificing
flavor or creaminess.

Frobert is entirely
new to the category.

There's nothing
on the shelf like it.

Now we're in more
than 8,000 stores,

including Giant
Foods, Stop N Shop,

and every Kroger
location nationwide.

The year I pitched
to the Sharks,

my business had
done $310,000 in sales.

Now, just nine months
since "Shark Tank,"

I'm nearing $1 million in sales

with $15 million in
committed purchase orders.

On the "Shark Tank,"
I gave you a challenge,

and you not only got into
one major retailer nationwide,

you got into four.

I love Frozen Farmer's mission.

I love that they
use unloved fruit

that's delicious,
just not as pretty,

and I love that
Katey Jo is probably

one of the hardest‐working,

most results‐oriented
entrepreneurs I've ever had.

I'm super proud of you,

and I'm just super
excited for our future.

Aah!

There's been so many
times that we could have given up

and, quite honestly,
so many times

that maybe we even wanted to.

But we knew in our hearts
that The Frozen Farmer

was a continuation
of our family's legacy,

and the mission of
reducing food waste

is so important to us.

We're creating a better
world one pint at a time,

and that's something, for us,

that makes The Frozen
Farmer so much sweeter.

Next up is a new
iteration of a favorite sport.

Whoa!

Hello, Sharks.
I'm Alex van Alen.

And I'm John Pruellage.

We're from Ipswich,
Massachusetts,

and we're here seeking $300,000

for 10% of our
company, Fling Golf.

Sharks, golf courses
have a big problem.

Over 1,800 of them have
closed in the last decade,

and the average golfer
gets older every year.

You see, young
people, they just think

that golf is too expensive,
it's too hard to learn,

there's too many
clubs, takes too long,

and many just find it boring.

Well, we've developed
the antidote for boring.

It's called Fling Golf.

It's the cool, athletic
alternative to regular golf.

You play Fling Golf
with a regular golf ball,

but instead of lugging around a
set of clubs and hitting the ball,

you're using a
single fling stick

to throw the golf
ball... Oh, my God.

And shoot every kind
of shot from tee to hole.

Yeah, you can take
long shots, flop shots,

bump and runs,
and on the green...

The color of money.

You can even use it to putt.

Most people can learn
to play within 10 minutes.

Some are even out there
bombing it 250 yards.

So just like snowboarders
are welcome on ski resorts,

Fling Golf can be played
right alongside traditional golf.

The best part is,

courses don't need to
make any changes at all.

They just let the people play.

Fling Golf has
already been played

on over 1,000 golf courses. Wow.

So, we've developed
an entirely new product,

a new sport embraced
by a younger generation

and accepted by golf
courses across the globe.

Who wants to go on
the fling of their lifetime

and help us scale up
the future of the fairway?

Alright. Who wants to
come on up? I'll try it out.

I don't know
anything about golf.

It's not golf.

Wait, hold on.

You
all should do what Mark's doing.

Aim that way.

Daniel, you're
throwing it this way?

Yeah, you might
want to really go away.

Let me show you. What you
do is, you hold it back here,

you drop it way down your back,

then put your other
hand up, and then ‐‐

There you go!
Nice. There you go!

So, guys, you've invented
lacrosse on the golf course.

Right. Basically
lacrosse and golf.

And that was sort of
my background. Gotcha.

Alright, so, you drop it
way down your back...

‐Yeah! You looked nice.
‐It's starting to feel good.

Nice! Yeah!

Very cool. Just a few shots.

Alright, guys, look. I
am a member of the golf club.

No chance in Hell

are they gonna let anybody
run around with a lacrosse racket.

Zero!

No, they do.

It's been played at the
country club in Brookline.

It's like snowboarding
and skiing.

We're getting into
the golf courses.

But ultimately,
it's gonna be like

there's no reason not to.

But the golf gods would
strike you dead with that thing.

Yeah.

Wait. I
have a question.

Yeah! Best answer
ever! We don't care.

We're not golf.

Let's say you get good.
You can go far and straight.

But then when you get to
the green, what happens?

It turns into a golf club.

You can do a flop shot.

Yeah? You can do a bump and run.

Hang on. This is your only
club? This is your putter...

It's your
one club. That's it.

This is your chipping wedge.

Do everything with
it. This is the one thing

that might get me
to a golf course.

But, I mean, you could hurt
somebody if you hit them.

Yes.

This is way more
accurate than golf.

How many courses
have you sold this to?

A set of clubs. Like,
that's a good indication.

About 300.

So, what's the model?
How does it work?

We sell to both golf
courses and the consumer.

We focused a lot in the last
few years on the golf courses.

We want that acceptance.

We want people to know

that if they buy one
of these things from us,

they can go out on any
golf course and play.

Longer‐term,

the focus is really
gonna be the consumer.

How are you gonna get
the golf course to, like,

educate anybody
playing about the stick?

The specific golf
courses that are doing well with it

are, like, resorts.

They're able to
advertise to people

that aren't just the people
coming in to play golf.

When people arrive, they'll
say, "Hey, bring your family.

Even if you're a
golfer, bring your kids.

We'll give them a Fling stick,

and they can go out
with you and play golf."

So, guys, I did an investment

in a company called Bad Birdie.

They're the cool golf shirts.

COVID hits ‐‐

I'm thinking their
business is going to die.

Like, it's just
gonna go nowhere.

Golf is on fire.

Because of the distance.

‐It's one of the only things.
‐It's one of the few things

you can actually do outside.

They're gonna do
$3.5 million this year.

Right.

So you're definitely on‐trend.

What I'm struggling with is,

how do you capture
a customer base?

The focus has
been on golf courses,

but we're selling as
much to consumers.

Actually, in terms of numbers,

we're selling more to consumers
than we are on the golf course.

How much? What
did you sell last year?

Last year, we sold $142,000.

Good for you. $140,000.
What about this year?

We're $142,000 through July.

So what's one club
cost you to make,

and what do you sell it for?

They range from $119

to the one you're
holding there is $179.

And for cost to make,
this one's about $25.

That one's about $35.

Your valuation seems
really out of whack.

Like, you're asking
for more than

10 times revenue valuation.

Can you walk us
through how you came up

with that delusional valuation?

Wow, you're really
sitting next to Kevin a lot, Daniel.

We were on set for
about $400,000 this year,

and then COVID hit,
that slowed us down.

But according to Robert,
COVID should be helping you out.

It seems like it's not.

Well, it slowed us down
big‐time for March and April.

Look, at the end of the
day, if you're just taking this

as a commodity product

and doing a multiple
off of revenue,

yeah, you're not
gonna get there on that.

But what we've built here

and a lot of what
goes into that valuation

is the foundation we've built ‐‐

all the product development,
the IP, the patents.

So then how much have
you guys raised or invested?

We've raised about
‐‐ about $2 million.

There you go. That's why the
valuation's so high. - Wow.

Where did you raise
that from? You've raised $2 million?

Did I hear that right? One
and a half is actually from us.

You put your own money in?

Damn! Wow.

Look, I like the idea, guys,

but it's very difficult
to scale a new sport,

as you know, right? Yes.

And inevitably,
it takes a purse.

If your price range
is from $100 to $179

and you did $140,000 last year,

you're looking at
about 1,400 clubs, right?

And that's just not enough
traction for me to get excited.

So for those reasons, I'm out.

Okay.

Guys, I love innovation
and ‐‐ and new ideas,

but I keep thinking about
the lack of precision ‐‐

these balls, like
flying all around.

And your valuation,
I do have to say,

I don't think is commensurate
to where you're at right now.

I wish you good
luck, but I'm out.

Thank you.

Just 'cause you say
it's worth $3 million,

that doesn't mean anything.

It can't be worth
3 million bucks,

'cause you don't
have any cash flow

to sustain that valuation.

If you look at what
snowboarding did ‐‐

and we model a lot
off of what happened

in the 1970s, '80s,
with snowboarding ‐‐

It took a long time before ‐‐
and then it went geometric.

I get it, but I don't think

you're at that
trajectory right now.

And I didn't think it
was poo‐poo on a stick

until I heard the sales.

Now I really think
it's poo‐poo on a stick.

So no, absolutely not. I'm out.

Alex and John,
this is my thoughts.

KIND bars are sold

in almost every single
course in America.

There's several golfers
that wear KIND colors

because they love it so much.

I can introduce you
to a lot of golfers.

I can introduce
you to golf courses.

This is going to be a
huge amount of work,

so I will do the deal at
33% for the $300,000.

You are so greedy.

Alright, guys,
look ‐‐ I love golf.

I belong to a bunch of clubs.

Here's what I can do for you ‐‐

I can point you.

Yeah. Just like Bad Birdie.

It's not like I go there and
do their books every day,

but we talk regularly.

He has a problem, he says,
"Do I go left? Do I go right?"

That's what you need.

What I need to know
is, are you gonna hustle?

This is all about hustle,

and, I mean, we're gonna do ‐‐

I'm confident we're
doing, with or without you,

a million dollars
in sales next year.

I've drained my finances.

I need this. I absolutely
need this. I'm in.

I'll give you the $300,000,

but I want to be a
one‐third partner.

I'll take the risk with you.

I can help you with this thing.

Same offer as Daniel?
Same offer as Daniel.

But it only took him an hour
longer to make it. Okay, so, guys ‐‐

I think you ought to talk to
them, because you just devalued

all the money that they've
invested significantly.

I did, but again, you know,

it's either gonna
go big or it's not.

You've got to pick your
Shark. What are you gonna do?

And you can counter.

Yeah, $300,000 for 20?

How about $300,000
for 20%, either of you?

I'll do $300,000 for 25%,

and it goes away in 5...

4... 3... 2...

Take it... 1.

‐Done. ‐Whoo! ‐Good deal.

Alright.

Guys, what Robert
said is true ‐‐

you guys need to stay
in the fight and be hungry,

because it's gonna
take a lot longer ‐‐

You have never met someone
who's gonna hustle more than us.

Congratulations, guys.

Congratulations. I can't
believe it. - Congrats.

Alright. ‐

That was awesome.
That was awesome.

Daniel's got
nothing to worry about.

We are committed,
and we are all in on this.

We're gonna see this to the end,

and we know it's
gonna be a huge sport.

Very often, you have to
step down to get the poop,

but not anymore.

Next into the Tank

is a better way to grill
in an unlikely place.

Hey there, Sharks.

My name's Mike Bashawaty.

And I'm Jeremy Quillico.

We're from Plymouth, Michigan,

and we're here seeking $200,000

in exchange for 20%
equity in our company.

Sharks, let me
paint you a picture.

It's sweet summertime.

You're on the lake
with your best friends,

knocking back a cold one

and enjoying the good vibes.

Everything is
just perfect, until ‐‐

Hunger strikes!

Now, there is nothing better
than a hot, juicy cheeseburger

to fulfill that craving
and keep the party going.

And wouldn't it be crazy if
you could grill up some food

without ever having
to leave the water?

Well, Sharks, these guys
were just crazy enough

to come up with a solution.

Introducing the world's first...

The world's only...

Float'N'Grill!

Now, you're probably thinking

a grill that floats on water?

We're thinking...

"Hell, yeah!"

Float'N'Grill is
lightweight, easy to use,

and has tons of features

so you can safely cook
without ever going back to land.

And with our patented design
and unique weight displacement,

you won't have to worry about
it flipping over in the water.

So whether you're
a sandbar fanatic...

Or a lazy‐river goer...

Float'N'Grill has
got you covered.

Be the envy of your friends
with this innovative product

and be the talk of the lake.

So, Sharks, who's ready
to get in on the action

while the grill's still hot?

Were you guys on, like,
Instagram just recently?

Oh! We were on ‐‐

We had a post back
in 2018 that went viral,

and it started catching traction
again just a few weeks ago.

Yeah, 'cause I saw it again,
the dude going down the ‐‐

That's me. That's you.

Well, tell us about
it. What was it?

We kind of threw it out
there on a Facebook page.

In 72 hours, we hit
4.7 million people.

Wow.

And this thing just exploded.

But what was in the
video? It was just hysterical.

So you're just, like,
floating in the water,

and it's floating next to you?

Yeah, and you're, like,
flipping a burger or something?

Yeah.

How did you come up with this?

I bought a 16‐foot jet boat,

started getting acclimated
with sandbar life.

And I was like,
"Okay." Love jet boats.

Great time. Sandbar life.

Well, sandbar life, you're
there for 6 to 8 hours,

and who wants to
eat a cold, soggy sub?

Then how does that work?

What is the heat source?

Yep, so, right here, you
use a 1‐pound propane tank.

We have a remote mounting hose.

And is the base solid,
or do I have to blow it up?

The base is HDPE
plastic, food‐grade.

The grill actually has a 1,200
BTU burner, which is huge.

I can fit eight
burgers on that grill.

- Eight burgers?
- Eight burgers.

So, wait, have we talked
about what you sell it for

and what it costs and
how many you've sold?

Oh, we can get
into that, too. Yeah.

Let's go! Let's go for it!

So, right now, right
now, it retails for $229.

‐Okay. ‐Okay.

Our cost of goods
on this is $126.88.

That's kind of expensive.
But hang on. Hang on.

That is expensive, but we
give the customer free shipping,

so we put that into
our cost of goods.

Okay, that's fine. It's
still cost of good, right?

Yeah. That's an average
number that we put in there.

So now, what is
your total sales?

So, our total gross
sales for this year

are $19,400.

What?

Ohh! Yeah. Hey, hey.

We have not marketed this
product. That is all organic.

Jeremy, did you say 19? $19,000.

We just launched a
year and a half ago.

Ohhhh! Don't give
me that "Ohhhh"!

A year and a half ago?
That's like two years ‐‐

I don't want to hear
it. Oh, no, no, no.

No, no, no. That is
not ‐‐ Listen. Ohh.

With zero marketing ‐‐
That's not even 100 units!

Listen, listen, listen, listen. It's
$199, which he neglected to mention.

Listen. The sandbar
community has rejected you.

No! Has rejected you.

Do you go to the sandbar?

Do you spend time at the
sandbar, Mr. Wonderful?

All I know is, nobody's
using this in the sandbar.

Oh, they are. Oh, my God.

They are. They are loving it.
Hey, it didn't go viral for no reason.

It didn't go viral
for no reason.

Yeah, but then out of
those 4 million views,

I would have expected a
little bit higher conversion.

I can explain that. Listen, listen,
listen. There's more to the story.

We went viral back in 2018.

We didn't have anything
to sell at that time,

because we didn't
have it in place. Yeah.

I hate it when that
happens. Oh, me too.

We didn't have an established
manufacturer for the grill.

Guys, guys, can I ‐‐

I just want to step on
one thing for a second,

because it's important.

You want 20%.

That imputes ‐‐

and I'm trying to be serious ‐‐

Yep.

A million‐dollar valuation.

Yes. Yes.

With basically no one in
the sandbar community

gives a poo‐poo
about this thing.

No one knows about it, really.
But that's where you're wrong.

Are you in the
sandbar community?

I am the sandbar community.

You haven't seen him in his
Speedo on his speedboat?

Listen. The word out on the
street within the community is

nobody gives a
poo‐poo about this thing.

That's wrong. You're
completely wrong.

They're not buying it!
They're not buying it!

You're completely
wrong about that,

because everybody that sees it ‐‐
Well, how come there's no sales?

99% of those reactions on
that viral post were positive.

No, and the best part is, is we
have accessories coming out,

which we have
3‐D renderings for.

This isn't even in the works
right now. You have accessories?

You haven't sold any
yet! I'm just saying.

I'm friends with
the guys from Weber Grills.

‐Okay. ‐Okay.

I'm very close with them. Yep.

Is there something that you
could either license to them,

or is there a reason why they
couldn't do that themselves?

Why does your patent cover it?

We, in the ‐‐ So, the
first claim on our patent

is a floating apparatus

that supports a cooking
element for cooking purposes.

Good for
you. That's very broad.

It's very broad. Yes.

I don't know if you're
familiar with Webers ‐‐

probably the foremost
grill company in the U. S.

‐Yep. ‐Yes.

I'll set up the meeting for you,

and we will
license this to them,

either sell them the
patent or license it.

I'll give you $200,000 for 50%.

$200,000 for 15%?

‐Bam! ‐5‐0.

‐5‐0. ‐Oh.

5‐0. You can
counter. ‐ 50. Half.

Yeah, I mean ‐‐
Half the community.

Wow.

You just said that they
sold $19,000 in sales. Yeah.

So, we respect that offer,

but honestly, we
can't go that high.

What's your counter?

My counteroffer,
right off the bat,

is we believe in this
product so much,

I'm not opposed
to a partial loan.

I would do a $100,000 loan

at 7% interest rate,

$100,000 investment

for 15% to 20%.

Well, let's say 20% to be fair.

And we'll pay you
$2 per unit sold

'til your loan
money is paid back.

Well, Mikey is a Shark!
I'm just coming in!

Let's go! ‐You're a Shark, baby!

He's a numbers guy!
He is there! Let's do it!

You guys, at $2 a unit,
he will die of old age

before he gets his loan back.

Any other offers, guys?

Not a chance in Hell.
I'm out, just ‐‐ I'm out.

Yeah, fair enough.

I truly, unfortunately,
with your valuation

and what your sales were ‐‐

I'm sorry, I'm out.

I love you guys. I mean,
I love the entire story.

Except the $19,000 in sales.

We understand ‐‐ It
all falls apart on that.

We understand that, but those
are the numbers, unfortunately,

and that's why we're here. Guys, you
have an offer here that might go away.

Guys, don't let this
opportunity float away.

The $19,000 is a
warning for all of us.

Yep. It is. It is.

I'm jumping in because
I like your patent ‐‐

it is a strong patent ‐‐

and because you guys are fun.

So I'm jumping in and
giving you the $200,000

for 50%, equal partners,

because guess what,
my team is gonna

work on this full‐time
to make it work.

We can't do 50%.
We can't do 50%.

So, right now... We
have two other investors.

We do have two other
investors, okay? Yeah.

‐What do they own?
‐What do you guys own?

They own 30% ‐‐ 10% and 20%.

And you guys own 70%?

Yes. Company was valued
at $300,000 at that point.

Alright. What are you gonna do?

I mean, it sounds like
we're very far apart.

I mean, we are.

Can we negotiate on
anything with the licensing deal,

where you make
"X" amount of dollars

on the licensing deal

on top of having the
22.5% in the company?

So your maximum that you're
willing to sell me is what?

22.5% is what we can sell.

That's ‐‐ yeah.

Here's my offer ‐‐

the $100,000
investment for 22.5%,

$100,000 loan at 7%.

We're gonna remove
the $2 per unit.

You don't need to do that. Okay.

And 50% of any licensing
that I help you get.

You okay with that?

You've got a deal.

That deal just got better,
didn't it, Mikey?

Dude. Ahhh!

Congratulations,
guys. Good luck. Thank you.

‐Thank you, guys.
‐Good luck, guys.

‐Take care, you guys.
‐Float out of here.

Whew. Dude.

I cannot ‐‐

Oh, my God. Oh, my
goodness. That was nuts.

We got a deal with
Daniel Lubetzky.

A billionaire. A billionaire.
That's ‐‐ That's insane.

That is insane.

How much is that?
That's a lot of money.

A billion. Oh, man. I
don't ‐‐ Whoo! Yeah.

Next up is an accessory

that makes shoes
more functional.

Hi. I'm Jamie Montz.

And I'm David Montz
from beautiful Boise, Idaho,

and we're the duo behind
The Original Stretchlace.

We're here today
seeking $100,000

for 15% equity in our company.

We have created a
must‐have product

to enhance the fit, function,
and fashion of tie shoes.

Traditional laces
are restrictive.

You have to tie them every day,

sometimes multiple times a day,

and on top of that,
they're bo‐ring.

Give your shoes an
affordable lace‐over

with The Original Stretchlace.

The Original Stretchlace
is a stretchy lace

that elevates the
function of your shoe

by turning your tie
shoes into slip‐ons.

Let's see if David
can slip into his boots

and back into his sneakers in less
than 10 seconds.

David, are you ready? Ready.

Sharks, will you help me
give him a countdown?

10... 9... 8...

7... 6... 5...

4... 3... 2... 1.2 1/2!

Aah!

Slowing down in
your old age, David.

Too fast. Too fast.

That was easy,
right? It was easy.

It was pretty easy. 10
seconds isn't a lot of time.

Our unique material
has a slight texture

to keep your shoelaces tied,

while providing a firm
but comfortable grip

on your feet.

So, Sharks, don't
shoelace ‐‐ Stretchlace.

Are you ready to expand with us?

‐Ha. ‐Ra‐ra‐ra‐ra.

We have some samples for you.

So, how does it work, Jamie?

I take it out, and
I put them in?

Yep, you just lace
them like standard laces.

Leave a little bit
of room at the top,

tie them, and then you
just slip your shoes on.

And you're saying
because they stretch,

you can just slide in and out?

And that's the... Exactly.

Oh, it works! It's
very easy to do.

Oh, my gosh. It really works.

Yeah. It works.

How much do you sell them
for? How much do they cost?

$9.99 to $13.99,

and they cost anywhere
from $1.49 to $2.14.

Well, a great margin.

And would I find your product

on the country's
largest online retailer?

You would.

And would I find it on
your website, as well?

Yes. Anywhere in retail?

We are only going after online.

Break down the numbers for me.

Last year was $221,000.

This year, we're doing $165,000.

However, there's
a little story to tell.

So, I left my job in July,

and we started to see this

really nice, healthy
uptick in growth.

Then coronavirus hit the States,

and we saw a slow decrease.

Then the countries
that I supply from

were also hit by coronavirus,

so we didn't have any inventory.

And are you in the company, too?

No, so, I help
keep the lights on.

I have a full‐time
job. I'm in technology.

I've been 22 years
in technology.

You're a couple?

Yeah, we're husband
and wife. Married.

You know, providing
financially for the family.

I'm working full‐time,

and we have three
kids, which is a lot.

So I do everything I can
when I get home or off work,

to give her the bandwidth,
'cause she works tirelessly.

This woman has put so much
sweat equity into this business,

I can't even measure it.

How did you come up with this?

Why I started the company?

I have three boys,

and getting ready in
the mornings was crazy.

I was tying three
pairs of shoes,

and I was thinking to myself,

"What are they walking
through at school

that I'm touching
these every morning?"

And it just kind of
ruined my day. Ew.

I went to the market to
see what was available,

and I have a 20‐year
background in e‐commerce.

I kind of know the lay of
the land, in terms of product.

And so when I
looked at the market,

I found product
with locks or clips,

and I have three kids.

They're gonna be rough
and they're gonna break them

and they're gonna
lose the clips,

and it's gonna be a mess.

So there were no
stretchy laces that tied in...

No. There weren't. Nope.

How long ago was that, Jamie?

That was three years, a
little over three years ago.

And just last July,

I left working for another company
to pursue this. Good for you.

What was your job
at the other company?

I was managing an
Amazon business

that was about $35
million in revenue

in the health and beauty
category for that company.

You've managed
a $35 million brand

and then said, "Hey,
I can take those skills

to do it for myself."

So now what I'd like to see
is, how have you applied that?

Because the numbers,

for a person that has
20 years of experience

and that run a $35
million business,

they're not... amazing.

When we first
launched the business,

I was working full‐time.

So I have been doing this
on nights and weekends,

and really, I really
just left my job,

working full‐time, in July.

I would say something
that I think I'm super proud of

is the fact that we got on to
the largest e‐tailer, Amazon,

and we're able to take a
significant market share

from those other brands

that have been around
a lot longer than we have.

I think I did better in terms
of becoming an expert

on how to grow this
business on that platform.

When I developed this product,

we researched what
was going on on Amazon

in terms of the search, the
keyword volume, the relevancy.

When somebody
looks for "stretch lace,"

knowing the Amazon algorithm,

knowing that they're searching
for laces, stretch, elastic,

and those titles
were in our keywords.

‐Smart. ‐Right.

She, in my eyes,
has a PhD in Amazon.

Jamie, I'm struggling.

You are a 20‐year Amazon goddess

selling a $13 shoelace.

Ugh. I'm out.

Okay, guys, look, no disrespect
for you when I say this ‐‐

you are shoelace cockroaches.

I can't
work with you. I'm out.

Jamie, I somewhat disagree

that necessarily, the
shoelace is the wrong vehicle.

But I am actually concerned
about you as an entrepreneur.

Maybe you're a great manager,

but do you have that
ability to be resourceful

to be a hungry hunter,

to observe and
to turn and twist?

I can give you a couple ‐‐

I don't see that
entrepreneurial zeal,

and for that reason, I'm out.

Okay. Thank you.

I can tell.

I mean, you have
that fire, right?

You are an inventor,
entrepreneur.

There are bumps
in the road. Right.

And you're doing a great job,

and so I think you're
gonna get there.

I just don't think this is
the right product for me.

I'm sorry. I'm out.

Oh. Sorry to hear that, Lori.

You know,
guys, I think you're better

without an investor right now.

If you had an investor,

you go from just, "What can
I do on Amazon on my time?"

Okay, maybe I
can get this done."

As a family, you
can get this done.

To, "Okay, Mark time,
too," and obligations there.

So for those reasons, I'm out.

Okay.

‐Good luck, guys.
Congratulations. ‐Good luck.

Hey, Jamie.

I got to believe there's
more in you than shoelaces,

and I think you can
actually help us sell online

with some of our
other businesses,

'cause we can all
do better with that.

And I think there's
unlocked potential within you

to do different things.

I'll make you an offer.

Are you nuts?

All five Sharks are out,

but Robert has had
a change of heart,

seeing the untapped potential
in Jamie as an entrepreneur.

I'll make you an offer.

Are you nuts?

I'll give you ‐‐

You might be crying for a
different reason in a minute.

Look, it's an investment in you,

to unlock the
potential within you.

I'll give you the
$100,000 for 33%.

Ohhh!

Now cry.

If that don't make you
cry, I don't know what will.

Hang on. Let me
‐‐ Let me explain.

I don't think it's
a Sharky offer.

You're gonna help
me. I'm gonna help you.

You don't need an investor

if that's all you're ever
gonna do is shoelaces.

But I got to tell you,
as you're talking,

I think you have
dreams bigger than this.

Okay.

You're allowed to counter.

And?

What do you want
to counter with?

Um...

25? Okay. 20, 25.

Would you accept 25%?

I...

We're nickel‐and‐diming
each other.

If you believe in the
vision that I see in you...

I want to stick to the 33%.

I‐I just think we're
gonna do great things.

I really think you're going
to help all our entrepreneurs,

and I think I'm really
gonna help you guys.

Guys, you have no
reason to be desperate.

Oh, it's ‐‐ No, no, no, don't ‐‐

33% is a big chunk.

No, no, no. Hang on a sec, Mark.

With all due respect,

I don't think they're
desperate for a moment.

And don't imply that my offer implied
they're desperate. I'm just saying, 33%.

I believe in them.
$100,000 for 33%.

No desperation. I'm just saying.

So you're saying that

you're not really interested
in the shoelaces, but ‐‐

No, no, I believe
in the shoelaces. Okay.

Don't get me wrong.
Let's get that to $3 million.

But while we're getting there,

let's unlock the potential
of this incredible woman

and figure out what
the next product is.

Let's do both.

$100,000, 33%.

What do you think?

I don't know. 30?

Should we ask? Yeah.

Okay, would you take 30?

I will take 30.

You have a deal. Yes!

High five! High five!

‐Congratulations, guys.
‐Virtual hug! Virtual hug!

‐Virtual hug.
‐Congrats. ‐Air hugs.

Thank you. Thank you
so much. You're welcome.

Thank you. Thank you.

Amazing! Oh, my God.

It feels so wonderful

to have gotten a
deal with Robert.

It's crazy. I don't
know what ‐‐ It's crazy.

What just happened? Honestly,
I don't know what happened.

What just happened? It was,
like, everybody was falling out,

then all of a sudden...

Did we just, like, time travel?

What did you see that
would change your mind?

You bought a cockroach
shoe business. Kevin. Kevin.

You may not realize this,
but to get great people,

sometimes you have to pay them.

You are going to make
hundreds of dollars.

Hundreds of dollars.