Shark Tank (2009–…): Season 13, Episode 13 - Episode #13.13 - full transcript
Tonight on "Shark Tank"...
Sharks, we want to make
this pitch into a real party.
We need a strategic partner.
You're making it confusing.
You're scaring us!
You better have
a ton of sales, guys.
We surpassed
$21 million in sales.
‐Whoa! ‐Oh!
When we built this company,
we ‐‐ we built it
from the heart.
‐That's the American
dream. ‐Yes!
We're chickens running
around with our heads cut off.
"Mua ha ha!"
Dude, we're about to
walk through those doors
and pitch to the ‐‐
a show that we've been
watching for a decade.
‐Yeah. ‐We're about to do this.
Like, this is crazy.
First in the Tank
is a way to transform
your workouts.
Hi, Sharks.
I'm Dan, from Missoula, Montana.
And I'm Andy, from
Locust Grove, Georgia.
We're the inventors of...
the Kettle Gryp.
Kettlebells have become
increasingly popular...
and provide dynamic,
full‐body workouts
that build functional
strength and range of motion.
However, kettlebells
are expensive,
nearly impossible
to travel with,
and take up
valuable floor space.
So, I began thinking of a
way to turn the dumbbells
that I already owned
into kettlebells,
and that's when
the lightbulb went off.
I made a rough sketch,
and I sent it to my
best friend, Andy.
He was impressed by
my talent as an artist.
It looked like it was
drawn by a 5‐year‐old,
but I could tell what it
was supposed to be,
and I loved the concept.
Kettle Gryp is a
portable dumbbell adapter
that allows you to do
all of your favorite
kettlebell exercises
anywhere you can
find a dumbbell.
Simply open the Kettle Gryp,
insert nearly any dumbbell,
secure the latch,
and you're ready for
your Kettle Gryp workout.
Clever.
Kettle Gryp is
great for swings...
upright rows...
overhead presses...
flexibility...
and range of motion.
We're seeking a
$300,000 investment
for 10% equity in our company.
Ohh.
So, Sharks, who's ready to
get a Gryp?
Da‐dum!
In front of you, you'll find a
Kettle Gryp and a dumbbell.
Feel free to pick it
up and check it out.
And we just put it in?
Put the dumbbell inside,
close the two handles.
To secure the latch,
put your palm on the logo
and rock your hand forward.
Great job, Robert.
Alright, here we go.
‐Oh, here we go. ‐Oh!
‐Jacket's coming
off. ‐Here we go.
You gave me the heavy
one 'cause you knew. Alright.
It's just easy. Yeah,
it's straightforward.
‐Shoulder shrugs.
‐Good form, Mark.
How heavy's yours, Kevin?
This is how it's done, Lori.
See that?
Actually, it's not, but ‐‐
Really clever idea.
There's a lot of exercises
you just can't safely
do with a dumbbell.
And, I have to tell you,
it actually felt better
than a kettlebell.
‐We agree. ‐They kind
of crunch your hands
when you do it.
This has a very
comfortable grip.
What's the max weight?
What's the max dumbbell
that you can use?
Right now, it's rated
to hold up to 55 pounds.
Wow! 55?!
‐You're kidding.
‐With no problem.
Okay, so why is
this worth $3 million?
$300,000 for 10%?
You better have a
ton of sales, guys.
We do have sales.
Our lifetime sales are
$3.6 million.
‐Whoa! ‐You're kidding.
That is impressive.
Let's ‐‐ Let's go
through the years.
2018, we sold 391,000.
Okay. 2019?
590,000.
‐Mm. ‐Wow! ‐2020?
In 2020, when COVID
hit, gyms closed down,
the demand for personal
fitness equipment skyrocketed.
Our 2020 sales?
1.9 million.
Whoa!
‐Come on! ‐What about 2021?
Year‐to‐date,
we've sold 680,000,
and we're going
to finish the year
at 1 million in sales.
Right now, 92% of our
line ‐‐ our sales come
‐from online marketplace. ‐Wow!
Are you in sales or a
kind of spokesperson,
something going on there?
Never. I was a 20‐year
Marine Corps helicopter pilot.
‐Wow! ‐Thank you
for your service.
‐No way! ‐That's cool.
Pilot what kind of helicopters?
I flew the Cobra attack
helicopter in the Marine Corps,
with multiple deployments to Iraq
and Afghanistan. - Wow!
‐Man. ‐Wow.
So you're a badass.
‐Yeah. ‐Just doing my job.
‐It was an honor. ‐Yeah.
It was an honor.
But the Cobra attack helicopter
is a bad machine.
Yeah. Oh, yeah.
Dan, what's your background?
Andy and I have been good
friends since high school.
After that, I moved out
to San Diego, California,
where I opened
multiple ice‐cream stores,
and, for 20 years,
was the ice cream
king of Mission Beach.
So, guys, what do they sell for,
and what do they
cost you to make?
It costs $6.57 to make,
and we sell for $34.95.
‐What? ‐That's an 81% margin.
‐That's a good margin. ‐Wow.
A lot of people who
are really into fitness
will buy a whole
set of dumbbells,
and then, they'll buy a separate
set of kettlebells. Exactly.
This actually saves
you a lot of money.
Gotcha. So it's
saving you from ‐‐
Yeah. Yeah.
It's making it super convenient.
Well, that's how
I came up with it.
We're selling ourselves
on your product.
And where are you manufacturing?
Kettle Gryp is 100%
made in the USA.
Good for you.
Do you have a patent on this?
‐You bet we do,
Lori. ‐I figured.
Gryp me.
Our utility patent protects
integrating the
closure into the handle.
‐Wow. ‐Kettle Gryp is the only
dumbbell‐to‐kettlebell converter
with redundant safety features.
And so, within four years,
you've had how many knock‐offs?
There's approximately
two to three,
but they're not nearly
as successful as we are.
But what are they pricing at?
They are cheaper, but
they're lower‐quality.
If you buy one,
it's lower‐quality
and not nearly as safe.
You guys did 1.9
million last year...
‐Yes, sir. ‐...with 81% margins.
So why are you here?
‐Yeah, why do you need a Shark?
‐We are looking to make a deal
with a Shark because
we need a strategic partner
to help us make connections
into new marketplaces.
We have not been
able to get in big box.
Why are they not
returning your call
or why are they not saying yes?
Dan and I are not marketers.
We have gotten really
good at production.
In 20‐‐ I got a couple of
million dollars' worth of sales
to say that you may be
better marketers than you think.
‐Yeah, right. ‐Yeah, right.
Yeah, what are
you talking about?
And you're selling $1 million
one unit at a time?
‐Yeah. ‐We've sold, lifetime,
106,000 Kettle Gryp ‐‐
Excuse me, Sharks.
106,000?
We have now sold
106,003 Kettle Gryps.
‐Yeah! ‐I'm done.
We just keep
selling these things.
"But wait, there's more!"
"But wait, there's more!"
And what's the number now?
106,005 Kettle Gryps, Mark.
You're amazing, guys.
Take the money and run.
Keep going as long as you can.
As an investable business,
to grow beyond that,
I‐I don't see that.
It's not an investment
for me. I'm out.
Thank you, Robert. I
have always admired
your hair.
So, guys,
the challenge I have is
that you're a secondary product.
You have to have somebody
who already has dumbbells.
That means you're limited
in the number of consumers
that you can have.
So, for those reasons, I'm out.
Mark, if you change your mind,
we will take you back.
Guys, are you familiar
with my PRx gym deal?
We have seen that.
So, guys, listen, I'll
make you an offer.
I'm in this space in a big way.
PRx is way bigger than
you, and that's great,
and we learned a lot, in
terms of how we did social ‐‐
I've got a great team on that.
We built that business
direct‐to‐consumer.
If you want to go to
retail, I have no problem.
Luckily, I'm a Shark.
Everybody returns my call.
I'll do the $300,000 for 20%.
That's an interesting
offer, Mr. Wonderful,
and we would love
to work with you.
Out of respect for
the other Sharks...
No, absolutely. That's fine... we'd
like to hear what they have to say.
Daymond, Lori?
What do you guys want to do?
Ugh.
Lori, you've been
quiet over there.
I have been quiet.
I'm sitting here thinking.
I'm just blown
away at your sales.
I could help you
sell it to retail,
to a much broader market,
internationally and all of that.
But I'm just wondering
if I wanted to be
in the conversion business.
Lori, you can't even lift it up.
Conversion of the dumbbell.
I could lift it up.
‐I use free weights
every day. ‐Lori, we ‐‐
So ‐‐ So I think a lot of
women do, you know?
Absolutely. And I think that
the market's really interesting.
Alright. I'm going to
give you a creative offer.
‐Ooh! ‐Okay. ‐Mm.
I'll give you the
$300,000 for... 20%.
But I would like to do
it as preferred stock,
which means that I
would get distribution, first,
whenever there's
profits that are paid out.
I can help you make
so much more money
that you wouldn't
mind that at all
because everybody would
be making money, right?
Lori, would you ‐‐ could
you bring that down to 15%?
‐You got a deal. ‐There you go.
‐Boom! ‐We have a deal.
I think women
will really like this.
This seems like a
really smart converter.
Thank you, Daymond. Hey.
‐Boom. ‐Thank you for your time.
Congratulations, guys.
Well done. Thank you.
‐Robert, thanks. ‐Guys,
I thought you wanted
to hear the other offers, too.
You don't know. Daymond,
you should've jumped in quicker.
We're ‐‐ We'll never
know what happened,
but congratulations.
Thank you, guys.
‐Congratulations,
guys. ‐Thank you!
Lori was our dream Shark.
We cannot wait to
work with her. Wow.
We don't have any
experience in marketing,
and that's what she does,
so it's sky's the
limit for Kettle Gryp.
Next up is a
product to help anxiety.
Hi, Sharks. I'm Michael Malkin.
And I'm Luce Fuller.
And we're from
Newport News, Virginia.
Today, we're seeking $250,000,
in exchange for 10% of
our company, Calm Strips.
Calm Strips are a cool new way
to help people
reduce their anxiety,
and that is just
scratching at the surface.
Have you ever had a day
like my animated
friend Charlie here?
This traffic is
stressing him out!
This cartoon cloud
came out of nowhere,
and Charlie forgot his umbrella.
Oh, Charlie!
And now his phone is blowing up
with angry messages
from his comically evil boss.
"Mua ha ha!" We've all got them.
But this brings Charlie's
anxiety to an all‐time high.
Luckily, Charlie remembers
he has Calm Strips,
a healthy way to calm
and ground himself.
Calm Strips might look
like any other sticker,
but they're actually
textured sensory adhesives.
People everywhere are
rubbing, scratching, or picking at
the textured surface
of their Calm Strips
to help reduce
fidgeting, increase focus,
and regulate restless energy.
They're reusable
and residue‐free,
meaning they can be
stuck to your phone,
your laptop, your desk.
Teachers and
students alike love them
because it helps kids manage
their own restless energy,
without disrupting
the rest of the class.
So, Sharks, who wants
to invest in Calm Strips
and show the
world how easy it is
to take a little bit
of calm with you...
Everywhere... everywhere?
So, in front of you,
I see you guys are
- all about it already.
- Already ready.
I love that.
So we have both the Soft Sand
and the newer
River Rocks textures
in the Calm Circles
and Calm Strips.
How does this work?
I originally came up with
the idea for Calm Strips
because I, for the last 13 years
before doing Calm Strips,
worked in an Apple retail store.
It was a really
busy environment,
and I found that it
was incredibly stressful,
and it would kind
of trigger my anxiety.
So I found that, if
I started wrapping
a little bit of carpenter's
tape around my finger
and kind of rubbing on that,
it would help me to
kind of calm down.
And science does
show that touch,
especially tactile,
sensory touch,
can have a significant impact
on reducing people's anxiety
and making them feel calmer.
So, guys, I just don't get it.
What was your market
research, though?
You say it worked for people...
The reason I say that is because
over 100,000 people get it.
‐Ah, okay. ‐We
have a return rate
of less than 1%.
What does it cost
to buy one of these?
You get a five‐pack
of either for $12.49.
What does it cost
you to make it?
The Soft Sand costs us $1.
And, for the River
Rocks, it costs $2.
‐ I love the margin.
‐ Yeah.
We are e‐commerce, so
it does cost us a couple,
you know, about $3 to ship
them. - I love the margins.
How much are you
selling of this stuff?
Yeah, so, we
launched early last year.
You guys, hold on to your socks.
There you go. Since then,
we've just crossed
$2.5 million in sales.
‐Whoa! ‐Wow!
‐I know, right?!
‐Are you kidding me?
‐Wow! ‐It's a lot! ‐What?!
So, it is... Luce, Luce,
say it again for
everybody in the back.
$2.5 million! There we are.
‐Wow! ‐I love Calm Strips!
It is so good to
be able to say that.
Calm Strips! Calm
Strips! - What is happening?
‐Calm Strips!
‐Right? ‐There you go.
So we did ‐‐ We
did one ‐‐ It's true.
We did 1.6 million.
That's amazing!
‐Thank you. We do our
best. ‐Thank you. Say it again.
‐You are making a ton of
money. ‐That's amazing! ‐I love it!
Do you have a zero return rate
because it's so
inexpensive to buy
that people aren't going
to bother to ship it back
for the price it cost them to get?
Yeah, it's more expensive to ship. Yeah.
No. In fact, what I will say is
that we don't even make
people ship the product back.
If they don't like it
and they let us
know they don't like it,
we offer them a full refund.
Michael, I ‐‐ So it's not even
an issue of the shipping cost.
Talk to me about the trend line.
Are the sales continuing to
increase at the same pace
for the last three months?
So we've done about $400,000
in the last three months.
You've got to be making
a boatload of cash.
Last year, we had a profit
of about $193,000.
This is our slow season.
But, Michael, why would there
be a slow season for anxiety?
'Cause people have less
anxiety in the summer. Yeah.
Stress is not seasonal. Herjavec:
I mean, that surprises me.
School, however, is,
and that is a huge part
‐of who we sell to. ‐Yeah.
We're in 3,000
schools, as of right now.
We've actually
spoken to doctors,
we've had special‐ed
teachers, and they all agree ‐‐
and they all use our product.
They all agree that,
you know, to funnel
excess anxiety energy
‐‐ which is what it is ‐‐
It's your fight‐or‐flight
in ‐‐ in gear, right?
So put it here.
Put it somewhere.
I accept the premise.
My ‐‐ My godkids are autistic,
and one of the things we
really try to do with them
is, to calm them
down... Yes. Uh‐huh.
We try to get them ‐‐
in their case, it's not this.
‐Sure. ‐It's a small blanket.
Yeah, it's sensory. Yeah.
45 million Americans
live with anxiety.
I don't think this is an issue
that is ever going to go away.
I talked a little
bit earlier that,
when we built this company,
we built it from the heart,
and we're not in
this to make a buck.
I wasn't gonna mention
this in this pitch, but I ‐‐
I have a 5‐year‐old son
who was recently
diagnosed with autism
and, like, we hear
from parents who say,
"This is helping
my son, my child,"
and so I'm not someone
who's in it for the buck.
I'm really, truly in
it to help people.
Luce, I called
her out of the blue
and said, "Can you
come help me with this?"
And she said yes.
And I think... It's personal.
Is it easy to look at
and say, "This is silly"?
Sure, it does look silly,
but we do absolutely
everything we can.
We have a poster
hanging up at our office
that says, "At Calm Strips,
we want all of our
customers to be happy."
These numbers
are just astonishing.
‐Amazing. ‐Impressive.
But I don't get it. I'm out.
‐Yeah. ‐But congratulations.
‐Thank you. ‐You
don't get it, still?
‐Thank you. Thank
you. ‐I'm sad about that.
Look, it's a great
business for you guys,
but, in order for
it to be investable,
in my opinion, it's got to be
a multiproduct
company that scales,
so, for those reasons, I'm out.
Alright, guys. Nobody buys
fidget spinners anymore.
They had a purpose.
They were selling a lot.
A year from now, what
if no one's buying this?
We are working on
something right now
where it can be
die‐cut into shape
so you can trace
your finger along it.
I think there's a lot to
do, and the general idea...
of the texture is fantastic. It's all ‐‐
It's all on the ‐‐ It's all with the texture.
‐You see a lot of runway.
‐I think there's a lot
of room for growth here.
I want to come
along for the ride,
but I need to get my money out,
so, Michael, here's my offer.
I will give you the
$250,000, um ‐‐
35%. I believe in it.
But I don't want
to risk my money.
Can we ‐‐ Can we counter back?
Because ‐‐ That's a ‐‐
That's a lot of percents.
‐There's a lot of percents.
‐That's a lot of percents.
‐That's a lot of percents.
‐What I will say ‐‐
‐What I'll say is ‐‐
‐It's a lot of Shark.
Sure.
Alright, let's hear this offer.
Two Sharks are out.
Michael and Luce have an
offer on the table from Robert
for their anxiety‐calming
stickers, Calm Strips.
But Kevin is also interested.
Alright, let's hear this offer.
No equity.
Zero, okay? Oh! Okay.
I want $2.50 a unit
until I get back my $250,000,
then it drops to a
buck in perpetuity.
I am allergic to the word
"perpetuity," sir. Yeah.
I respect that,
but we don't know
if this has
perpetual life at all.
I'm ‐‐ I'm hoping you'll
come up with another product.
Alright.
I like that better.
I will give you $250,000,
$2.50 a unit until I
get my money back,
and then, $1.50
until I get a 3x return
on the initial capital.
The difference is my deal ends.
Mr. Wonderful, as long as
the word "perpetuity's" there...
I believe this is a product ‐‐
Well, how much would
you allow me to make?
When I give you $250,000,
I get it back, I've
made no money.
We talked about
this a little bit earlier.
It's important for me ‐‐
Does Lori have anything
she wants to say?
I don't know. Lori's
not officially out.
I think that ‐‐ I think ‐‐ Do you
have an offer you'd give me?
How about $250,000 ‐‐
Guys, hang on, hang on.
I ‐‐ Look, I learned,
a long time ago,
there's no point
in crashing a party
that people don't want you in.
You obviously don't
want to deal with me.
I'm out.
I would do the
same offer as Kevin,
but I would want to get
8% equity in the company
'cause I think I'm worth it.
$250,000.
Royalties and equity are the same.
$2.50 a unit.
Until we got ‐‐ I get
my $250,000 back,
and then, $1.50, until
I get $750,000. Yes.
No "in perpetuity." No equity.
That's the offer I made you.
So here's my question
‐‐ would you be willing
to do $250,000
for just 20% equity?
With no royalty.
No. I really want to
blow this up. Right. Right.
We want to go really quick.
And I really think I'm
trying to be fair for you. Yes.
'Cause I really liked you
guys, and I believed in it! Yeah.
Let me ask you, Robert
‐‐ Until you stood me up!
I know. We're ‐‐ You
didn't even have an offer!
Look, we haven't been
on "Shark Tank" before.
I'm not ‐‐ And, look,
I'm not ‐‐ I'm
not one to back ‐‐
Robert ‐‐ Robert
‐‐ Michael! Michael!
‐And you will never
be back! ‐I know!
Robert, will you put your
offer back on the table?
I'll take it right now.
No questions asked.
Don't stand me up for a "maybe"!
No, we shake hands,
we hug, it's all over.
Yes!
‐Ahhh! ‐Bring it!
Whoo!
The fans go wild.
‐Humbling. ‐Congratulations.
‐Thank you. ‐Congrats, guys.
‐Oh, a Shark! ‐Ohh!
Whoo! Yeah!
Yeah!
Oh!
We walked into the Tank
wanting to work with Robert,
so when he went out,
it was heartbreaking ‐‐
I mean, I was heartbroken.
But we're like, we
can bring him back in.
And when we got him back
in, it just ‐‐ my heart sang.
I mean, it's everything
that we wanted.
In Season 12,
Judy Schott and Nita Gassen
made a deal with Lori Greiner
for their bed‐making
aid, the Better Bedder.
‐You got a deal. ‐Yay!
Let's see
what they're up to now.
After "Shark Tank" aired,
we sold $157,000 in one day.
Prior to "Shark Tank," our
sales were about $950,000.
We are now close to $2
million of lifetime sales.
A better way to start your day.
Lori spent over 60 hours
filming and scripting
a video spot just for us.
We are now in a
variety of retail stores,
including a nationwide
rollout to Walmart,
with over 3,000 Walmart stores.
We're working on a Better
Bedder brand for hotels, RVs.
And most importantly,
the senior community.
They no longer have to
call their family or friends
to come help them
change their sheets.
This has given them such
a sense of independence.
In the next year,
we hope to expand our
distribution worldwide.
Here's a surprise.
We are projected
to hit 20 million
in sales this year. No way.
Better Bedder is something
that makes people's lives easier.
There's no struggle.
It's just done in a snap.
I love products like that.
The plan from Day One
was to do an infomercial
and to try to blast the product
into retailers nationwide.
And that's exactly what we did.
Better Bedder is blowing up.
Two, three...
Being a single mother,
"Shark Tank" has given me
and my family security
that we can count on,
and I just can't wait to see
what else is going to happen.
If you're an
entrepreneur out there,
looking to invent a
product, start a company,
I would have to say,
go with what you feel.
You're gonna have
a lot of people saying
it's not going to work, it's
going to get knocked off.
But if you believe
in it and you know
that it's making a difference,
stick to it, pound the pavement,
and it will pay off.
Hey, look, we made
it to "Shark Tank."
You can, too.
Next up is a
safer way to celebrate.
Hello, everyone, I'm Mark Apelt.
And I'm Mark Lareau,
and we're seeking $100,000
for 20% share in our company.
Sharks, we want to make
this pitch into a real party.
So we brought
some delicious cake.
Thought we could
share it with everyone.
Just going to make a quick wish.
Ew.
So who wants a slice?
Ew!
Literally, nobody wants a slice.
This is our big
"Shark Tank" moment,
and you just slobbered
all over the cake!
Sorry about that. Disgusting!
I always thought it was gross
that people blow all over
a cake before serving it.
Would you let my kid blow
all over your cheeseburger?
Of course not.
And it's not just
that it seems gross,
the science
actually proves it ‐‐
Journal of Food
Research found that
blowing out the
candles on a cake
increases the bacteria
by more than 1,400%.
Sharks, with recent events,
societal norms around
hygiene have changed forever.
And that's why we
invented the Blowzee.
When you blow into the
open end of the Blowzee,
air pressure activates
a battery‐powered fan,
clean air blows out the candles,
and your germy breath is
directed away from the cake.
Onto your little brother.
It's that simple, guys.
Now, you've all
seen workarounds,
like waving a paper plate
or using a separate cupcake,
but, Sharks, I'm going
to let you in on a secret ‐‐
the wishes don't count that way.
Blowzee's gonna change
the future of birthdays
by banishing
slobber‐covered cakes forever.
So, tell me ‐‐ who
wants in on the party?
So, you got one
in front of you there
if you want to test that out.
Step one is the
most important ‐‐
you make a wish.
Once you have that wish made,
go ahead, blow into the Blowzee,
and watch the candle go out.
‐It's fun. ‐Very cool.
It is fun. It is fun, isn't it?
It's cool because the wind
does not come out at all.
You blow into
it, the air goes in,
there's a very
sensitive sensor in there
that detects that air pressure.
Other side of that sensor
is a solid plastic wall,
so no air's getting through
it. So it'll never go past here.
It goes down ‐‐ the
air is directed down.
It comes out that little
tube on the bottom.
‐Kevin ‐‐ ‐Can we
eat the cupcake?
Yeah.
I wish you were
around when I was a kid.
I mean, I‐I had a kid
lived next door to me ‐‐
his name was Crusty Craig
'cause he had
this white buildup.
‐Ew! ‐Ew!
I refused to go to Crusty Craig's
birthday party... - Daymond!
You know, I know
Crusty Craig... every year.
And you don't want to know
what he called you.
You're blue, Mark.
You're turning blue.
Oh, my God, we're all blue.
You look like an idiot, Robert.
Oh, my God.
Mark or Mark, how did
you come up with this?
So, we were at a birthday party.
We have sons the same age.
The younger kid is there.
He goes to blow out
the candles on the cake.
The light hits right.
Everyone in the room just sees
the spittle flying
all over the cake.
‐Ew! ‐Aah!
Really, it is gross.
There's nothing
else that you blow on.
But, Mark, what's
your background?
Were you in that business?
My background is in
science and engineering,
environmental sciences.
And then I also taught
school for a while.
What about you? My
background was in supply chains.
I've done logistics and
supply‐chain consulting.
Do you have a patent?
Is this protected in any way?
We filed our utility patent and
our ‐‐ Greiner: And it's pending?
It is. It's pending,
and our lawyer says
he has a high degree of
confidence in the patent
just because of
how unique this is.
What do you sell it for, Mark?
We've just started,
but selling both
retails and online.
How much? Wholesale is $6.
Retail and direct is $11.99.
And what's it cost
you to make it?
$3.20 landed.
And what are your sales, Mark?
So, to date, we're
just about to hit
our five‐month
anniversary of sales.
We're at 1,200 units
at about $12,000.
Wah, wah, wah, wah, wah.
You said you're only been
in business five months?
We started from nothing
and figured it all out, right?
So we got together
this ragtag army
of Eastern European injection
molding engineer ‐‐ right? ‐‐
a Chinese electrical engineer.
The world's changed in a way
that you can get
experts globally
at a very reasonable rate.
Why doesn't anybody care?
$12,000 is actually nothing.
It's not much, but I
think it's more a reflection
of how we've marketed versus
the true market sentiment so ‐‐
You're really bad marketers?
‐ Absolutely.
‐ Absolutely. ‐
So, Mark, have you
put a lot of money into it?
No, so we put in about
16K each, so it's ‐‐
Well, how did you pay
the engineers and
the consultants and...
Yeah, so the upfront
part was less than $2,000.
So it was just ‐‐ That ‐‐
What a great lesson
for everyone at home.
That's absolutely ‐‐ That's a lesson
I'd love to ‐‐ What's the great lesson?
Don't have sales? You
don't have to be a millionaire.
No, no, no, no. All joking
aside. - We've got sales.
This is a pretty complex
product to design,
build, everything for
$2,000. - It is.
They used people
all around the world.
I mean, I actually like it.
I actually think you're
on to something,
but you have to
develop other things
to really create a business.
Is there another
product on the roadmap?
We think the roadmap
within this product is huge.
We did one order of 5,000
blue Blowzees. - Okay.
What's the next feature
of this product? Pink?
Well, so the next feature ‐‐ next
feature is blue and pink. Yeah.
Daymond, imagine if I
get a Spider‐Man Blowzee
for a 6‐year‐old,
I get a Darth Vader Blowzee
for an 8‐year‐old. That's cute.
There's an opportunity to
really customize this. Oh.
So where are
you selling your product?
We sell a combination online ‐‐
we have a website,
as well as on Amazon.
And how are you driving
traffic to your own online?
Mostly through PR.
Mark, by traffic, you
mean $12,000 in sales.
‐Yes. ‐Okay, Mark, let me ‐‐
But you got to start somewhere.
Nobody starts with $1
million of sales Day One.
‐That's very encouraging. ‐Yep.
Let me give you something
that's not encouraging.
I hate this very, very
much, and I'm out.
All right, I'm sorry to hear,
but thank you for the feedback.
‐Hey. ‐Boo!
‐What? ‐Boo!
‐Boo! ‐Boo!
No cupcake for you. ‐
The best PR we got was
a local news anchor
demonstrated on the show.
He blew it out. He laughed.
He had a great time.
Everyone gets it because
this is a problem everybody has.
The way that you're blowing
birthday candles out now
is different than
it was a year ago.
It will be forever. You're not going
back. - Look. Guys, guys.
I give you a ton of credit
because you are what
"Shark Tank" is all about.
You have an idea.
You sort it out
with all your friends.
Do they like the
idea? Will it work?
Then you go through the
whole hassle of getting it done.
‐That's the American
dream. ‐Yes.
The challenge, though,
is that you're still not a
company ‐‐ you're a product,
and that's just
not enough for me
to make an investment right now.
So for those reasons, I'm out.
Thank ‐‐ Thank you,
Mark. Thank you.
For the others, what
I would say would be,
it's super early, and we've
tried to price it in that regard,
try to give you enough equity
and bring the price
of that valuation ‐‐
‐Yes. ‐It is fair.
Yeah, it is fair.
It's a product in the
sense that, you know,
you can, with us, see the
path and can go to the path.
Listen, I agree that people
are very conscious now
about these matters.
Definitely, you have
a small business now,
but it's not investable
at the moment for me,
so I'm out.
Thank you, Daymond.
Mark, I think you've
done an amazing job.
If I was buying candles
and there was a picture
of somebody blowing through
it, I probably would buy one once.
I don't know if
I'd buy it again.
I wish you all the best.
You didn't blow it today.
‐I'm out. ‐Okay. Thanks, Robert.
Right across the top
here, you should have,
"Blow out the candles
without the germs" ‐‐ big.
That is everything.
This is a product
that is really smart,
but it's not something
you use every single day.
You use it on special occasions.
And so, it's a great
business for you guys.
It's just not really
an investment
where I can sink
my teeth into it.
I know you'll do
really well, but I'm out.
‐Thanks so much, Lori.
‐Congratulations, guys.
‐Thanks, guys. ‐Good luck.
‐Thanks so much. ‐Thank you.
‐Alright, take care.
‐Congrats, guys.
We're gonna put some
more money into marketing,
maybe go make some
bigger bets on that front,
and just scale this thing.
Everyone has a birthday.
Everyone hates spitty cake.
There's a huge market,
and we're just ready to go.
Next up is a business
capitalizing on a growing hobby.
Sharks, I'm Chet Beiler
from Lancaster, Pennsylvania.
My company is
OverEZ Chicken Coops
and this is my pal
Chuckles. ‐
All right, Chuckles.
You get in there.
Lay me some eggs, would you?
All right. Sharks,
it's no secret.
America is crazy for
backyard chickens right now.
Families want more sustainable
living and self‐reliance,
and they love having fresh
organic eggs every day.
Plus, backyard chickens
bring joy to families
as kids and grandkids
make lifelong memories
caring for these adorable pets.
That's why we created...
OverEZ Chicken Coops.
Our proprietary modular coops
are easy to ship and
easy to assemble.
All you need is 30 minutes,
a screw gun, and two people
to assemble your OverEZ Coop.
We offer four different sizes
that perfectly accommodate
between 5 and 20 chickens.
America is so
cuckoo for these coops
that we can hardly
keep up with the demand.
We're chickens running
around with our heads cut off.
Sorry, Chuckles.
Sharks, I need a partner
so I can finally stop
having all my
eggs in one basket.
So, who wants to acquire
4% of OverEZ Chicken Coops
for an investment of $1 million?
‐Whoa! ‐Whoa!
Tell us why this is worth
$25 million. - And for 4%.
I mean, he's only 4
points away from for zero.
First of all, our
IP is locked down,
and the cash
register is ringing,
and we've only just begun.
We are on a path to
become the category king
for backyard
chickens in America.
And with your help, maybe,
or anybody else
who's interested,
we will expand to Europe,
where the interest
in backyard chickens
is even stronger than
in the United States.
Chet, you're one crazy chicken.
What are these? Are we
supposed to open these?
Can I just say I opened the egg?
I was all excited thinking
I was going to get
something wonderful.
It is wonderful.
I mean, it's nice.
It's a little brochure.
It talks about quick
facts about your business.
There is some golden
information in there.
Okay, so, how
much have you sold?
Oh, you want
numbers? I got numbers.
This week, we surpassed
$21 million in sales.
‐Wow! ‐What?
Lifetime? Lifetime
or last month?
‐Lifetime... ‐Oh.
And year to date, $9 million.
‐Year to date ‐‐ $9
million? ‐Yes, year to date.
And best of all,
$1.35 million in profit,
which, if you do
the math, you know
our EBITDA is 15%.
It should have been
18%. Why wasn't it?
Because of the supply‐chain
issues that we had.
Lumber prices, you know,
went up fourfold. Yeah.
True.
Chet, I was not expecting
those kind of numbers.
How are you selling $9 million?
Oh, it breaks my heart.
We were not ready.
COVID, it spiked big‐time,
and we had the
frustrating situation
where we could not fill orders.
We did not have
enough coops. Got it.
So we missed out on
millions of dollars in sales.
Despite that, $6.8
million in sales last year.
‐Wow. ‐How much
did you net on that?
Well, last year was about 12%.
So going from 6.8 to
9 through six months
is a big step, right? Mm‐hmm.
What are you even doing?
What am I ‐‐ Oh. Yeah,
what are you looking at?
Oh, I was trying to make
sure I cover everything.
And... Well, go
ahead and make sure.
There we go. I'm sorry.
So, how are you paying
for all this inventory?
I'm here to raise money
for more inventory.
We're going to need it.
But have you raised money,
and who are your partners,
and how much of your
company do you still own?
‐I own 100%. ‐Oh!
Actually, I bought the
company last June 30th,
and that's when I owned 68%.
I didn't tell you.
I'm from the Amish
country in Pennsylvania. Oh.
But back to your
question about COVID.
We missed the COVID bump.
Last year could have
been well over $10 million
if we had had enough coops.
I'd like to go back
to the numbers.
Just give me the last
three years in revenue.
2019 was $2.2 million.
2020 was $6.8 million. Wow.
This year, we'll
probably do $20 million.
You got a big
ramp going in here.
That takes capital
'cause there's a
capex to this business.
‐Mm‐hmm. ‐You
got to make this stuff.
How did you raise the money?
So I had to do creative finance
to support the POs
and receivables.
We were able to borrow
against all the POs that we had.
It all worked out great
in the second quarter,
paid everyone back.
But now we're facing
much greater opportunity
along those lines,
and that's one of
the challenging things
about this business.
Chet, I've got to understand
some basic things.
So, number one, I don't
know what that costs.
The large is $1,899...
the medium is $1,499...
and the small is $1,099.
Our overall gross profit
margins are about 36%.
So COVID did have a heavy part.
It did have an impact.
So, on the one hand, you said
it had a negative effect on you
because you didn't
have a supply chain.
We missed out. But
you didn't miss out.
That's right.
All right. Well, you
get what I'm saying.
You are suggesting that I
was inconsistent in my answer.
Here's the thing ‐‐ yes, we
missed the COVID bump.
I swear we could have sold
$3 million, $4 million
more last year ‐‐
when we did $6.8 million, it
could have been $10 million
if we would've had
enough coops. Right.
But now we have
a factory set up in
Lancaster County, Pennsylvania.
We have one down in Dublin,
Georgia, Central Georgia,
and in Colorado,
so we can hit the
whole ‐‐ whole country.
So I would like you to
answer for me in two sentences
why Europe would want your coop
more than the coops
they have over there.
Most of what's
available in Europe
and in the United States
are frankly cheap imports,
and we came up with
this beautiful coop in a box,
and it is selling
big‐time. So...
And already, 700
units have sold.
But back to Europe, what
we know is that, in Europe,
they have backyard
chickens more.
But you're wondering how is it
that we could
compete in that market?
Same as here. Well, no.
I said in two sentences.
I mean, just being fair.
When you're selling something,
you need to be able to tell
people in a couple of sentences
what it is and why it's great.
It's a knock‐down
high‐quality coop.
Quality is great, but it's not a
strong enough differentiator.
And unfortunately,
I have to be out.
What is the lifespan
of a chicken?
Five to 10 years?
My fear with going
into business with you
is it is going to take me longer
than the lifespan of a chicken
to find out the details
of your business.
Now, before you go out, I
got to talk to you about Europe.
You didn't have me
over here with Europe.
You ‐‐ You really catapult me into
not interested. Well, let me tell you this.
Look ‐‐ Robert, listen ‐‐
I ‐‐ The most valuable
thing in my life is my time.
I don't want to spend it
learning about your business.
I'm out.
Okay, Chet, let me
take a stab at it, all right?
‐I love revenue. ‐Yeah.
I think your presentation was
a little wandering. Do you think?
But you got a lot
of revenue here.
I'll make you an offer.
I'll give you the
million bucks in debt
'cause you need capital.
I'll take the 4% equity,
and I want it paid
back over three years.
The average right now is 11.5%.
That capital will let you do
what you want to do stateside.
I don't know what you're
talking about in Europe,
but that's your decision.
I don't control the
business, but that's an offer.
At least you can
peck on that one.
‐All right. ‐A million bucks.
And, you know,
the added bonus is
you get Mr. Wonderful,
the Shark,
which could really help
blow this business up big‐time
because I just love chicken.
I like it with cream
sauce. I like it roasted.
Oh, stop.
Chet, you're already
cash‐constrained ‐‐
to Kevin's point.
And now you want to go out
and effectively have to build
factories around the
world, starting in Europe,
because you can't just
ship everything over there
and somebody is going
to have to make them.
So you have the capital
expense of doing that.
A million dollars,
whether it's debt or equity,
isn't going to allow you to
keep up with your growth.
I think you're coming in
talking overseas and Europe
because you think
that sounds good to us.
I don't think you've
really projected it out.
So for those reasons, I'm out.
You know, Chet, I ‐‐
you're asking $1 million for 4%.
I think we all know
here that, as you said,
materials have
just been... Brutal.
Yeah. That's a problem.
Think your margins
are going to shrink.
‐Well, the materials came
down. ‐Yeah, they did.
‐Yep. ‐It's all settled now.
‐They've come way down.
‐I don't think it's settled.
Our margins will go up.
I believe the
materials will still go up.
And I don't like your valuation.
So what valuation would
make you comfortable?
'Cause I'm here to
help you make money.
Daymond, that's a good offer.
Throw out a number.
25%.
Are you making an offer?
Yeah. $1 million for 25%.
Uh, let me see.
‐You three are out. ‐Yes,
and you have a real offer.
‐You have two offers.
‐I'm bringing you back in.
Let me explain.
May I have two minutes to
please explain something?
I care very ‐‐ Don't
speak to Robert.
Robert's out. They're out.
I know, but I got to
tell him something.
Three Sharks are out.
Chet has two offers on the table
for his business,
OverEZ Chicken Coops,
but his attention is
still focused on Robert.
Don't speak to Robert.
Robert's out. They're out.
I know, but I got to tell him
something. No, please don't.
‐Oh, my Lord. ‐No,
you should be talking
to who just gave you an offer.
Why are you here if
you want to talk right to him?
You're doing
exactly what he said.
You're making it
confusing. All right.
‐You're scaring us!
‐Well, no. Hang on.
Daymond, I want to hear
what he was going to say.
Go ahead, Chet. Bear with me.
I have gone to Europe many
times because we were looking
at expanding our
business over there.
So, next week,
I'm flying to Prague.
And if they are interested,
there's these amazing
folks ‐‐ What?
And by the way, in
the Czech Republic
and in Eastern Europe,
they want you guys.
Chet, I just want to say
one thing, okay? Yes.
One thing ‐‐ I can actually
speak chicken. Yeah.
Those chickens
are saying right now,
"Chet, why don't you get
focused on the two offers..." Okay.
"instead of talking to a guy
that's been out for 15 minutes?"
I'm going to have
to counter on yours.
I want both you guys.
I'd love to say yes to
Mr. Wonderful there.
In terms of the debt
‐‐ doesn't bother me
because we're so profitable.
But I need to ask you
one question. Yeah?
There might be
another million or two
that we need in PO support
that the banks won't give me.
No, I understand.
My answer is always the
same to every entrepreneur ‐‐
I support all my
companies, okay? Yeah.
Our interests are aligned.
I want you to succeed.
The answer is, of course,
if you actually come in
with business that makes sense
and I can make more
money with my 4%,
I'm going to support you.
That's what I do with
all my entrepreneurs.
You know, I'm not in love
with your European strategy.
I don't get it.
There's so much
opportunity stateside ‐‐
Yeah, particularly since
you need cash for POs, right?
You're not going to
have any money left over
for European expansion.
Chet, I asked you
not to entertain him,
which, you know,
you're a grown man.
You can do whatever you want,
but you have two
offers on the table,
and you just keep
getting distracted.
And I just got to say
that I think that is exactly
what it's going to be
in business with you.
So I like you, but I'm out.
Well, then, it's
just the two of us,
Mr. Wonderful,
isn't it? That's right.
For now.
"For now."
Do you want to get
together in this or not?
Mr. Wonderful,
I want to say yes to
your offer as long as
you are going to
support the other POs.
I'm not guaranteeing
that right now
'cause I don't know enough
about your income
statement and balance sheet,
but I told you I
support my companies.
The offer I'm
making right now is
the million dollars.
Oh, no, I'm accepting
that. We have a deal.
‐Alright. ‐Well, then, have ‐‐
Forget all the
rest of the noise.
‐Then what's the want? ‐Yeah.
Are you done?
I just wanted to talk
with Robert a little bit
about our designs in Eastern
Europe and get him ‐‐ He's out!
I want him to come back in. Come
on, let me talk to him. Wait a second.
Don't you want
someone from Europe
who has a passion for
helping create jobs behind ‐‐
He's not really from Europe.
He's been here a very long time.
I've been here a very long time.
Is Allen Funt around here?
Is this "Candid Camera"?
What's going on?
Alright, if you say so.
But, Robert, come on.
I wanted us to do special things in
Europe. We could even ‐‐ All right, Chet.
I'm with you.
Chet, I'm out. Oh, really?
I said yes, though, I said yes.
‐Yes, Kevin, yes.
Thank you. ‐I'm out.
You do not understand when a
guy offers you a million dollars,
but then you start talking
to a guy that's out ‐‐
I was the only Shark to offer you
a million dollars... And I said yes.
The only one that was
gonna fund your business
after everybody
else dropped out.
And then you say,
"Oh, no, I want to talk to
Robert about Czechoslovakia"?
No, that is ‐‐ That ‐‐
I just wanted to have
that. I said yes to you.
No, I'm out. I'm out.
You got to go, Chet.
‐Good luck, Chet.
‐Good luck, Chet.
Well, thank you.
And I hope that you'll enjoy
backyard chicken someday
if you want this.
‐Have a good day. ‐Bye, Chet.
Well, it looked
like I had a Shark.
But then he swam away
because I got distracted
in talking to Robert
after Mr. Wonderful
was going to step up.
So that was a strategic error.
‐Wow. ‐Wow.
What the was that?
I've never seen anything
like that, ever.
I'm not even Czechoslovakian.
Sharks, we want to make
this pitch into a real party.
We need a strategic partner.
You're making it confusing.
You're scaring us!
You better have
a ton of sales, guys.
We surpassed
$21 million in sales.
‐Whoa! ‐Oh!
When we built this company,
we ‐‐ we built it
from the heart.
‐That's the American
dream. ‐Yes!
We're chickens running
around with our heads cut off.
"Mua ha ha!"
Dude, we're about to
walk through those doors
and pitch to the ‐‐
a show that we've been
watching for a decade.
‐Yeah. ‐We're about to do this.
Like, this is crazy.
First in the Tank
is a way to transform
your workouts.
Hi, Sharks.
I'm Dan, from Missoula, Montana.
And I'm Andy, from
Locust Grove, Georgia.
We're the inventors of...
the Kettle Gryp.
Kettlebells have become
increasingly popular...
and provide dynamic,
full‐body workouts
that build functional
strength and range of motion.
However, kettlebells
are expensive,
nearly impossible
to travel with,
and take up
valuable floor space.
So, I began thinking of a
way to turn the dumbbells
that I already owned
into kettlebells,
and that's when
the lightbulb went off.
I made a rough sketch,
and I sent it to my
best friend, Andy.
He was impressed by
my talent as an artist.
It looked like it was
drawn by a 5‐year‐old,
but I could tell what it
was supposed to be,
and I loved the concept.
Kettle Gryp is a
portable dumbbell adapter
that allows you to do
all of your favorite
kettlebell exercises
anywhere you can
find a dumbbell.
Simply open the Kettle Gryp,
insert nearly any dumbbell,
secure the latch,
and you're ready for
your Kettle Gryp workout.
Clever.
Kettle Gryp is
great for swings...
upright rows...
overhead presses...
flexibility...
and range of motion.
We're seeking a
$300,000 investment
for 10% equity in our company.
Ohh.
So, Sharks, who's ready to
get a Gryp?
Da‐dum!
In front of you, you'll find a
Kettle Gryp and a dumbbell.
Feel free to pick it
up and check it out.
And we just put it in?
Put the dumbbell inside,
close the two handles.
To secure the latch,
put your palm on the logo
and rock your hand forward.
Great job, Robert.
Alright, here we go.
‐Oh, here we go. ‐Oh!
‐Jacket's coming
off. ‐Here we go.
You gave me the heavy
one 'cause you knew. Alright.
It's just easy. Yeah,
it's straightforward.
‐Shoulder shrugs.
‐Good form, Mark.
How heavy's yours, Kevin?
This is how it's done, Lori.
See that?
Actually, it's not, but ‐‐
Really clever idea.
There's a lot of exercises
you just can't safely
do with a dumbbell.
And, I have to tell you,
it actually felt better
than a kettlebell.
‐We agree. ‐They kind
of crunch your hands
when you do it.
This has a very
comfortable grip.
What's the max weight?
What's the max dumbbell
that you can use?
Right now, it's rated
to hold up to 55 pounds.
Wow! 55?!
‐You're kidding.
‐With no problem.
Okay, so why is
this worth $3 million?
$300,000 for 10%?
You better have a
ton of sales, guys.
We do have sales.
Our lifetime sales are
$3.6 million.
‐Whoa! ‐You're kidding.
That is impressive.
Let's ‐‐ Let's go
through the years.
2018, we sold 391,000.
Okay. 2019?
590,000.
‐Mm. ‐Wow! ‐2020?
In 2020, when COVID
hit, gyms closed down,
the demand for personal
fitness equipment skyrocketed.
Our 2020 sales?
1.9 million.
Whoa!
‐Come on! ‐What about 2021?
Year‐to‐date,
we've sold 680,000,
and we're going
to finish the year
at 1 million in sales.
Right now, 92% of our
line ‐‐ our sales come
‐from online marketplace. ‐Wow!
Are you in sales or a
kind of spokesperson,
something going on there?
Never. I was a 20‐year
Marine Corps helicopter pilot.
‐Wow! ‐Thank you
for your service.
‐No way! ‐That's cool.
Pilot what kind of helicopters?
I flew the Cobra attack
helicopter in the Marine Corps,
with multiple deployments to Iraq
and Afghanistan. - Wow!
‐Man. ‐Wow.
So you're a badass.
‐Yeah. ‐Just doing my job.
‐It was an honor. ‐Yeah.
It was an honor.
But the Cobra attack helicopter
is a bad machine.
Yeah. Oh, yeah.
Dan, what's your background?
Andy and I have been good
friends since high school.
After that, I moved out
to San Diego, California,
where I opened
multiple ice‐cream stores,
and, for 20 years,
was the ice cream
king of Mission Beach.
So, guys, what do they sell for,
and what do they
cost you to make?
It costs $6.57 to make,
and we sell for $34.95.
‐What? ‐That's an 81% margin.
‐That's a good margin. ‐Wow.
A lot of people who
are really into fitness
will buy a whole
set of dumbbells,
and then, they'll buy a separate
set of kettlebells. Exactly.
This actually saves
you a lot of money.
Gotcha. So it's
saving you from ‐‐
Yeah. Yeah.
It's making it super convenient.
Well, that's how
I came up with it.
We're selling ourselves
on your product.
And where are you manufacturing?
Kettle Gryp is 100%
made in the USA.
Good for you.
Do you have a patent on this?
‐You bet we do,
Lori. ‐I figured.
Gryp me.
Our utility patent protects
integrating the
closure into the handle.
‐Wow. ‐Kettle Gryp is the only
dumbbell‐to‐kettlebell converter
with redundant safety features.
And so, within four years,
you've had how many knock‐offs?
There's approximately
two to three,
but they're not nearly
as successful as we are.
But what are they pricing at?
They are cheaper, but
they're lower‐quality.
If you buy one,
it's lower‐quality
and not nearly as safe.
You guys did 1.9
million last year...
‐Yes, sir. ‐...with 81% margins.
So why are you here?
‐Yeah, why do you need a Shark?
‐We are looking to make a deal
with a Shark because
we need a strategic partner
to help us make connections
into new marketplaces.
We have not been
able to get in big box.
Why are they not
returning your call
or why are they not saying yes?
Dan and I are not marketers.
We have gotten really
good at production.
In 20‐‐ I got a couple of
million dollars' worth of sales
to say that you may be
better marketers than you think.
‐Yeah, right. ‐Yeah, right.
Yeah, what are
you talking about?
And you're selling $1 million
one unit at a time?
‐Yeah. ‐We've sold, lifetime,
106,000 Kettle Gryp ‐‐
Excuse me, Sharks.
106,000?
We have now sold
106,003 Kettle Gryps.
‐Yeah! ‐I'm done.
We just keep
selling these things.
"But wait, there's more!"
"But wait, there's more!"
And what's the number now?
106,005 Kettle Gryps, Mark.
You're amazing, guys.
Take the money and run.
Keep going as long as you can.
As an investable business,
to grow beyond that,
I‐I don't see that.
It's not an investment
for me. I'm out.
Thank you, Robert. I
have always admired
your hair.
So, guys,
the challenge I have is
that you're a secondary product.
You have to have somebody
who already has dumbbells.
That means you're limited
in the number of consumers
that you can have.
So, for those reasons, I'm out.
Mark, if you change your mind,
we will take you back.
Guys, are you familiar
with my PRx gym deal?
We have seen that.
So, guys, listen, I'll
make you an offer.
I'm in this space in a big way.
PRx is way bigger than
you, and that's great,
and we learned a lot, in
terms of how we did social ‐‐
I've got a great team on that.
We built that business
direct‐to‐consumer.
If you want to go to
retail, I have no problem.
Luckily, I'm a Shark.
Everybody returns my call.
I'll do the $300,000 for 20%.
That's an interesting
offer, Mr. Wonderful,
and we would love
to work with you.
Out of respect for
the other Sharks...
No, absolutely. That's fine... we'd
like to hear what they have to say.
Daymond, Lori?
What do you guys want to do?
Ugh.
Lori, you've been
quiet over there.
I have been quiet.
I'm sitting here thinking.
I'm just blown
away at your sales.
I could help you
sell it to retail,
to a much broader market,
internationally and all of that.
But I'm just wondering
if I wanted to be
in the conversion business.
Lori, you can't even lift it up.
Conversion of the dumbbell.
I could lift it up.
‐I use free weights
every day. ‐Lori, we ‐‐
So ‐‐ So I think a lot of
women do, you know?
Absolutely. And I think that
the market's really interesting.
Alright. I'm going to
give you a creative offer.
‐Ooh! ‐Okay. ‐Mm.
I'll give you the
$300,000 for... 20%.
But I would like to do
it as preferred stock,
which means that I
would get distribution, first,
whenever there's
profits that are paid out.
I can help you make
so much more money
that you wouldn't
mind that at all
because everybody would
be making money, right?
Lori, would you ‐‐ could
you bring that down to 15%?
‐You got a deal. ‐There you go.
‐Boom! ‐We have a deal.
I think women
will really like this.
This seems like a
really smart converter.
Thank you, Daymond. Hey.
‐Boom. ‐Thank you for your time.
Congratulations, guys.
Well done. Thank you.
‐Robert, thanks. ‐Guys,
I thought you wanted
to hear the other offers, too.
You don't know. Daymond,
you should've jumped in quicker.
We're ‐‐ We'll never
know what happened,
but congratulations.
Thank you, guys.
‐Congratulations,
guys. ‐Thank you!
Lori was our dream Shark.
We cannot wait to
work with her. Wow.
We don't have any
experience in marketing,
and that's what she does,
so it's sky's the
limit for Kettle Gryp.
Next up is a
product to help anxiety.
Hi, Sharks. I'm Michael Malkin.
And I'm Luce Fuller.
And we're from
Newport News, Virginia.
Today, we're seeking $250,000,
in exchange for 10% of
our company, Calm Strips.
Calm Strips are a cool new way
to help people
reduce their anxiety,
and that is just
scratching at the surface.
Have you ever had a day
like my animated
friend Charlie here?
This traffic is
stressing him out!
This cartoon cloud
came out of nowhere,
and Charlie forgot his umbrella.
Oh, Charlie!
And now his phone is blowing up
with angry messages
from his comically evil boss.
"Mua ha ha!" We've all got them.
But this brings Charlie's
anxiety to an all‐time high.
Luckily, Charlie remembers
he has Calm Strips,
a healthy way to calm
and ground himself.
Calm Strips might look
like any other sticker,
but they're actually
textured sensory adhesives.
People everywhere are
rubbing, scratching, or picking at
the textured surface
of their Calm Strips
to help reduce
fidgeting, increase focus,
and regulate restless energy.
They're reusable
and residue‐free,
meaning they can be
stuck to your phone,
your laptop, your desk.
Teachers and
students alike love them
because it helps kids manage
their own restless energy,
without disrupting
the rest of the class.
So, Sharks, who wants
to invest in Calm Strips
and show the
world how easy it is
to take a little bit
of calm with you...
Everywhere... everywhere?
So, in front of you,
I see you guys are
- all about it already.
- Already ready.
I love that.
So we have both the Soft Sand
and the newer
River Rocks textures
in the Calm Circles
and Calm Strips.
How does this work?
I originally came up with
the idea for Calm Strips
because I, for the last 13 years
before doing Calm Strips,
worked in an Apple retail store.
It was a really
busy environment,
and I found that it
was incredibly stressful,
and it would kind
of trigger my anxiety.
So I found that, if
I started wrapping
a little bit of carpenter's
tape around my finger
and kind of rubbing on that,
it would help me to
kind of calm down.
And science does
show that touch,
especially tactile,
sensory touch,
can have a significant impact
on reducing people's anxiety
and making them feel calmer.
So, guys, I just don't get it.
What was your market
research, though?
You say it worked for people...
The reason I say that is because
over 100,000 people get it.
‐Ah, okay. ‐We
have a return rate
of less than 1%.
What does it cost
to buy one of these?
You get a five‐pack
of either for $12.49.
What does it cost
you to make it?
The Soft Sand costs us $1.
And, for the River
Rocks, it costs $2.
‐ I love the margin.
‐ Yeah.
We are e‐commerce, so
it does cost us a couple,
you know, about $3 to ship
them. - I love the margins.
How much are you
selling of this stuff?
Yeah, so, we
launched early last year.
You guys, hold on to your socks.
There you go. Since then,
we've just crossed
$2.5 million in sales.
‐Whoa! ‐Wow!
‐I know, right?!
‐Are you kidding me?
‐Wow! ‐It's a lot! ‐What?!
So, it is... Luce, Luce,
say it again for
everybody in the back.
$2.5 million! There we are.
‐Wow! ‐I love Calm Strips!
It is so good to
be able to say that.
Calm Strips! Calm
Strips! - What is happening?
‐Calm Strips!
‐Right? ‐There you go.
So we did ‐‐ We
did one ‐‐ It's true.
We did 1.6 million.
That's amazing!
‐Thank you. We do our
best. ‐Thank you. Say it again.
‐You are making a ton of
money. ‐That's amazing! ‐I love it!
Do you have a zero return rate
because it's so
inexpensive to buy
that people aren't going
to bother to ship it back
for the price it cost them to get?
Yeah, it's more expensive to ship. Yeah.
No. In fact, what I will say is
that we don't even make
people ship the product back.
If they don't like it
and they let us
know they don't like it,
we offer them a full refund.
Michael, I ‐‐ So it's not even
an issue of the shipping cost.
Talk to me about the trend line.
Are the sales continuing to
increase at the same pace
for the last three months?
So we've done about $400,000
in the last three months.
You've got to be making
a boatload of cash.
Last year, we had a profit
of about $193,000.
This is our slow season.
But, Michael, why would there
be a slow season for anxiety?
'Cause people have less
anxiety in the summer. Yeah.
Stress is not seasonal. Herjavec:
I mean, that surprises me.
School, however, is,
and that is a huge part
‐of who we sell to. ‐Yeah.
We're in 3,000
schools, as of right now.
We've actually
spoken to doctors,
we've had special‐ed
teachers, and they all agree ‐‐
and they all use our product.
They all agree that,
you know, to funnel
excess anxiety energy
‐‐ which is what it is ‐‐
It's your fight‐or‐flight
in ‐‐ in gear, right?
So put it here.
Put it somewhere.
I accept the premise.
My ‐‐ My godkids are autistic,
and one of the things we
really try to do with them
is, to calm them
down... Yes. Uh‐huh.
We try to get them ‐‐
in their case, it's not this.
‐Sure. ‐It's a small blanket.
Yeah, it's sensory. Yeah.
45 million Americans
live with anxiety.
I don't think this is an issue
that is ever going to go away.
I talked a little
bit earlier that,
when we built this company,
we built it from the heart,
and we're not in
this to make a buck.
I wasn't gonna mention
this in this pitch, but I ‐‐
I have a 5‐year‐old son
who was recently
diagnosed with autism
and, like, we hear
from parents who say,
"This is helping
my son, my child,"
and so I'm not someone
who's in it for the buck.
I'm really, truly in
it to help people.
Luce, I called
her out of the blue
and said, "Can you
come help me with this?"
And she said yes.
And I think... It's personal.
Is it easy to look at
and say, "This is silly"?
Sure, it does look silly,
but we do absolutely
everything we can.
We have a poster
hanging up at our office
that says, "At Calm Strips,
we want all of our
customers to be happy."
These numbers
are just astonishing.
‐Amazing. ‐Impressive.
But I don't get it. I'm out.
‐Yeah. ‐But congratulations.
‐Thank you. ‐You
don't get it, still?
‐Thank you. Thank
you. ‐I'm sad about that.
Look, it's a great
business for you guys,
but, in order for
it to be investable,
in my opinion, it's got to be
a multiproduct
company that scales,
so, for those reasons, I'm out.
Alright, guys. Nobody buys
fidget spinners anymore.
They had a purpose.
They were selling a lot.
A year from now, what
if no one's buying this?
We are working on
something right now
where it can be
die‐cut into shape
so you can trace
your finger along it.
I think there's a lot to
do, and the general idea...
of the texture is fantastic. It's all ‐‐
It's all on the ‐‐ It's all with the texture.
‐You see a lot of runway.
‐I think there's a lot
of room for growth here.
I want to come
along for the ride,
but I need to get my money out,
so, Michael, here's my offer.
I will give you the
$250,000, um ‐‐
35%. I believe in it.
But I don't want
to risk my money.
Can we ‐‐ Can we counter back?
Because ‐‐ That's a ‐‐
That's a lot of percents.
‐There's a lot of percents.
‐That's a lot of percents.
‐That's a lot of percents.
‐What I will say ‐‐
‐What I'll say is ‐‐
‐It's a lot of Shark.
Sure.
Alright, let's hear this offer.
Two Sharks are out.
Michael and Luce have an
offer on the table from Robert
for their anxiety‐calming
stickers, Calm Strips.
But Kevin is also interested.
Alright, let's hear this offer.
No equity.
Zero, okay? Oh! Okay.
I want $2.50 a unit
until I get back my $250,000,
then it drops to a
buck in perpetuity.
I am allergic to the word
"perpetuity," sir. Yeah.
I respect that,
but we don't know
if this has
perpetual life at all.
I'm ‐‐ I'm hoping you'll
come up with another product.
Alright.
I like that better.
I will give you $250,000,
$2.50 a unit until I
get my money back,
and then, $1.50
until I get a 3x return
on the initial capital.
The difference is my deal ends.
Mr. Wonderful, as long as
the word "perpetuity's" there...
I believe this is a product ‐‐
Well, how much would
you allow me to make?
When I give you $250,000,
I get it back, I've
made no money.
We talked about
this a little bit earlier.
It's important for me ‐‐
Does Lori have anything
she wants to say?
I don't know. Lori's
not officially out.
I think that ‐‐ I think ‐‐ Do you
have an offer you'd give me?
How about $250,000 ‐‐
Guys, hang on, hang on.
I ‐‐ Look, I learned,
a long time ago,
there's no point
in crashing a party
that people don't want you in.
You obviously don't
want to deal with me.
I'm out.
I would do the
same offer as Kevin,
but I would want to get
8% equity in the company
'cause I think I'm worth it.
$250,000.
Royalties and equity are the same.
$2.50 a unit.
Until we got ‐‐ I get
my $250,000 back,
and then, $1.50, until
I get $750,000. Yes.
No "in perpetuity." No equity.
That's the offer I made you.
So here's my question
‐‐ would you be willing
to do $250,000
for just 20% equity?
With no royalty.
No. I really want to
blow this up. Right. Right.
We want to go really quick.
And I really think I'm
trying to be fair for you. Yes.
'Cause I really liked you
guys, and I believed in it! Yeah.
Let me ask you, Robert
‐‐ Until you stood me up!
I know. We're ‐‐ You
didn't even have an offer!
Look, we haven't been
on "Shark Tank" before.
I'm not ‐‐ And, look,
I'm not ‐‐ I'm
not one to back ‐‐
Robert ‐‐ Robert
‐‐ Michael! Michael!
‐And you will never
be back! ‐I know!
Robert, will you put your
offer back on the table?
I'll take it right now.
No questions asked.
Don't stand me up for a "maybe"!
No, we shake hands,
we hug, it's all over.
Yes!
‐Ahhh! ‐Bring it!
Whoo!
The fans go wild.
‐Humbling. ‐Congratulations.
‐Thank you. ‐Congrats, guys.
‐Oh, a Shark! ‐Ohh!
Whoo! Yeah!
Yeah!
Oh!
We walked into the Tank
wanting to work with Robert,
so when he went out,
it was heartbreaking ‐‐
I mean, I was heartbroken.
But we're like, we
can bring him back in.
And when we got him back
in, it just ‐‐ my heart sang.
I mean, it's everything
that we wanted.
In Season 12,
Judy Schott and Nita Gassen
made a deal with Lori Greiner
for their bed‐making
aid, the Better Bedder.
‐You got a deal. ‐Yay!
Let's see
what they're up to now.
After "Shark Tank" aired,
we sold $157,000 in one day.
Prior to "Shark Tank," our
sales were about $950,000.
We are now close to $2
million of lifetime sales.
A better way to start your day.
Lori spent over 60 hours
filming and scripting
a video spot just for us.
We are now in a
variety of retail stores,
including a nationwide
rollout to Walmart,
with over 3,000 Walmart stores.
We're working on a Better
Bedder brand for hotels, RVs.
And most importantly,
the senior community.
They no longer have to
call their family or friends
to come help them
change their sheets.
This has given them such
a sense of independence.
In the next year,
we hope to expand our
distribution worldwide.
Here's a surprise.
We are projected
to hit 20 million
in sales this year. No way.
Better Bedder is something
that makes people's lives easier.
There's no struggle.
It's just done in a snap.
I love products like that.
The plan from Day One
was to do an infomercial
and to try to blast the product
into retailers nationwide.
And that's exactly what we did.
Better Bedder is blowing up.
Two, three...
Being a single mother,
"Shark Tank" has given me
and my family security
that we can count on,
and I just can't wait to see
what else is going to happen.
If you're an
entrepreneur out there,
looking to invent a
product, start a company,
I would have to say,
go with what you feel.
You're gonna have
a lot of people saying
it's not going to work, it's
going to get knocked off.
But if you believe
in it and you know
that it's making a difference,
stick to it, pound the pavement,
and it will pay off.
Hey, look, we made
it to "Shark Tank."
You can, too.
Next up is a
safer way to celebrate.
Hello, everyone, I'm Mark Apelt.
And I'm Mark Lareau,
and we're seeking $100,000
for 20% share in our company.
Sharks, we want to make
this pitch into a real party.
So we brought
some delicious cake.
Thought we could
share it with everyone.
Just going to make a quick wish.
Ew.
So who wants a slice?
Ew!
Literally, nobody wants a slice.
This is our big
"Shark Tank" moment,
and you just slobbered
all over the cake!
Sorry about that. Disgusting!
I always thought it was gross
that people blow all over
a cake before serving it.
Would you let my kid blow
all over your cheeseburger?
Of course not.
And it's not just
that it seems gross,
the science
actually proves it ‐‐
Journal of Food
Research found that
blowing out the
candles on a cake
increases the bacteria
by more than 1,400%.
Sharks, with recent events,
societal norms around
hygiene have changed forever.
And that's why we
invented the Blowzee.
When you blow into the
open end of the Blowzee,
air pressure activates
a battery‐powered fan,
clean air blows out the candles,
and your germy breath is
directed away from the cake.
Onto your little brother.
It's that simple, guys.
Now, you've all
seen workarounds,
like waving a paper plate
or using a separate cupcake,
but, Sharks, I'm going
to let you in on a secret ‐‐
the wishes don't count that way.
Blowzee's gonna change
the future of birthdays
by banishing
slobber‐covered cakes forever.
So, tell me ‐‐ who
wants in on the party?
So, you got one
in front of you there
if you want to test that out.
Step one is the
most important ‐‐
you make a wish.
Once you have that wish made,
go ahead, blow into the Blowzee,
and watch the candle go out.
‐It's fun. ‐Very cool.
It is fun. It is fun, isn't it?
It's cool because the wind
does not come out at all.
You blow into
it, the air goes in,
there's a very
sensitive sensor in there
that detects that air pressure.
Other side of that sensor
is a solid plastic wall,
so no air's getting through
it. So it'll never go past here.
It goes down ‐‐ the
air is directed down.
It comes out that little
tube on the bottom.
‐Kevin ‐‐ ‐Can we
eat the cupcake?
Yeah.
I wish you were
around when I was a kid.
I mean, I‐I had a kid
lived next door to me ‐‐
his name was Crusty Craig
'cause he had
this white buildup.
‐Ew! ‐Ew!
I refused to go to Crusty Craig's
birthday party... - Daymond!
You know, I know
Crusty Craig... every year.
And you don't want to know
what he called you.
You're blue, Mark.
You're turning blue.
Oh, my God, we're all blue.
You look like an idiot, Robert.
Oh, my God.
Mark or Mark, how did
you come up with this?
So, we were at a birthday party.
We have sons the same age.
The younger kid is there.
He goes to blow out
the candles on the cake.
The light hits right.
Everyone in the room just sees
the spittle flying
all over the cake.
‐Ew! ‐Aah!
Really, it is gross.
There's nothing
else that you blow on.
But, Mark, what's
your background?
Were you in that business?
My background is in
science and engineering,
environmental sciences.
And then I also taught
school for a while.
What about you? My
background was in supply chains.
I've done logistics and
supply‐chain consulting.
Do you have a patent?
Is this protected in any way?
We filed our utility patent and
our ‐‐ Greiner: And it's pending?
It is. It's pending,
and our lawyer says
he has a high degree of
confidence in the patent
just because of
how unique this is.
What do you sell it for, Mark?
We've just started,
but selling both
retails and online.
How much? Wholesale is $6.
Retail and direct is $11.99.
And what's it cost
you to make it?
$3.20 landed.
And what are your sales, Mark?
So, to date, we're
just about to hit
our five‐month
anniversary of sales.
We're at 1,200 units
at about $12,000.
Wah, wah, wah, wah, wah.
You said you're only been
in business five months?
We started from nothing
and figured it all out, right?
So we got together
this ragtag army
of Eastern European injection
molding engineer ‐‐ right? ‐‐
a Chinese electrical engineer.
The world's changed in a way
that you can get
experts globally
at a very reasonable rate.
Why doesn't anybody care?
$12,000 is actually nothing.
It's not much, but I
think it's more a reflection
of how we've marketed versus
the true market sentiment so ‐‐
You're really bad marketers?
‐ Absolutely.
‐ Absolutely. ‐
So, Mark, have you
put a lot of money into it?
No, so we put in about
16K each, so it's ‐‐
Well, how did you pay
the engineers and
the consultants and...
Yeah, so the upfront
part was less than $2,000.
So it was just ‐‐ That ‐‐
What a great lesson
for everyone at home.
That's absolutely ‐‐ That's a lesson
I'd love to ‐‐ What's the great lesson?
Don't have sales? You
don't have to be a millionaire.
No, no, no, no. All joking
aside. - We've got sales.
This is a pretty complex
product to design,
build, everything for
$2,000. - It is.
They used people
all around the world.
I mean, I actually like it.
I actually think you're
on to something,
but you have to
develop other things
to really create a business.
Is there another
product on the roadmap?
We think the roadmap
within this product is huge.
We did one order of 5,000
blue Blowzees. - Okay.
What's the next feature
of this product? Pink?
Well, so the next feature ‐‐ next
feature is blue and pink. Yeah.
Daymond, imagine if I
get a Spider‐Man Blowzee
for a 6‐year‐old,
I get a Darth Vader Blowzee
for an 8‐year‐old. That's cute.
There's an opportunity to
really customize this. Oh.
So where are
you selling your product?
We sell a combination online ‐‐
we have a website,
as well as on Amazon.
And how are you driving
traffic to your own online?
Mostly through PR.
Mark, by traffic, you
mean $12,000 in sales.
‐Yes. ‐Okay, Mark, let me ‐‐
But you got to start somewhere.
Nobody starts with $1
million of sales Day One.
‐That's very encouraging. ‐Yep.
Let me give you something
that's not encouraging.
I hate this very, very
much, and I'm out.
All right, I'm sorry to hear,
but thank you for the feedback.
‐Hey. ‐Boo!
‐What? ‐Boo!
‐Boo! ‐Boo!
No cupcake for you. ‐
The best PR we got was
a local news anchor
demonstrated on the show.
He blew it out. He laughed.
He had a great time.
Everyone gets it because
this is a problem everybody has.
The way that you're blowing
birthday candles out now
is different than
it was a year ago.
It will be forever. You're not going
back. - Look. Guys, guys.
I give you a ton of credit
because you are what
"Shark Tank" is all about.
You have an idea.
You sort it out
with all your friends.
Do they like the
idea? Will it work?
Then you go through the
whole hassle of getting it done.
‐That's the American
dream. ‐Yes.
The challenge, though,
is that you're still not a
company ‐‐ you're a product,
and that's just
not enough for me
to make an investment right now.
So for those reasons, I'm out.
Thank ‐‐ Thank you,
Mark. Thank you.
For the others, what
I would say would be,
it's super early, and we've
tried to price it in that regard,
try to give you enough equity
and bring the price
of that valuation ‐‐
‐Yes. ‐It is fair.
Yeah, it is fair.
It's a product in the
sense that, you know,
you can, with us, see the
path and can go to the path.
Listen, I agree that people
are very conscious now
about these matters.
Definitely, you have
a small business now,
but it's not investable
at the moment for me,
so I'm out.
Thank you, Daymond.
Mark, I think you've
done an amazing job.
If I was buying candles
and there was a picture
of somebody blowing through
it, I probably would buy one once.
I don't know if
I'd buy it again.
I wish you all the best.
You didn't blow it today.
‐I'm out. ‐Okay. Thanks, Robert.
Right across the top
here, you should have,
"Blow out the candles
without the germs" ‐‐ big.
That is everything.
This is a product
that is really smart,
but it's not something
you use every single day.
You use it on special occasions.
And so, it's a great
business for you guys.
It's just not really
an investment
where I can sink
my teeth into it.
I know you'll do
really well, but I'm out.
‐Thanks so much, Lori.
‐Congratulations, guys.
‐Thanks, guys. ‐Good luck.
‐Thanks so much. ‐Thank you.
‐Alright, take care.
‐Congrats, guys.
We're gonna put some
more money into marketing,
maybe go make some
bigger bets on that front,
and just scale this thing.
Everyone has a birthday.
Everyone hates spitty cake.
There's a huge market,
and we're just ready to go.
Next up is a business
capitalizing on a growing hobby.
Sharks, I'm Chet Beiler
from Lancaster, Pennsylvania.
My company is
OverEZ Chicken Coops
and this is my pal
Chuckles. ‐
All right, Chuckles.
You get in there.
Lay me some eggs, would you?
All right. Sharks,
it's no secret.
America is crazy for
backyard chickens right now.
Families want more sustainable
living and self‐reliance,
and they love having fresh
organic eggs every day.
Plus, backyard chickens
bring joy to families
as kids and grandkids
make lifelong memories
caring for these adorable pets.
That's why we created...
OverEZ Chicken Coops.
Our proprietary modular coops
are easy to ship and
easy to assemble.
All you need is 30 minutes,
a screw gun, and two people
to assemble your OverEZ Coop.
We offer four different sizes
that perfectly accommodate
between 5 and 20 chickens.
America is so
cuckoo for these coops
that we can hardly
keep up with the demand.
We're chickens running
around with our heads cut off.
Sorry, Chuckles.
Sharks, I need a partner
so I can finally stop
having all my
eggs in one basket.
So, who wants to acquire
4% of OverEZ Chicken Coops
for an investment of $1 million?
‐Whoa! ‐Whoa!
Tell us why this is worth
$25 million. - And for 4%.
I mean, he's only 4
points away from for zero.
First of all, our
IP is locked down,
and the cash
register is ringing,
and we've only just begun.
We are on a path to
become the category king
for backyard
chickens in America.
And with your help, maybe,
or anybody else
who's interested,
we will expand to Europe,
where the interest
in backyard chickens
is even stronger than
in the United States.
Chet, you're one crazy chicken.
What are these? Are we
supposed to open these?
Can I just say I opened the egg?
I was all excited thinking
I was going to get
something wonderful.
It is wonderful.
I mean, it's nice.
It's a little brochure.
It talks about quick
facts about your business.
There is some golden
information in there.
Okay, so, how
much have you sold?
Oh, you want
numbers? I got numbers.
This week, we surpassed
$21 million in sales.
‐Wow! ‐What?
Lifetime? Lifetime
or last month?
‐Lifetime... ‐Oh.
And year to date, $9 million.
‐Year to date ‐‐ $9
million? ‐Yes, year to date.
And best of all,
$1.35 million in profit,
which, if you do
the math, you know
our EBITDA is 15%.
It should have been
18%. Why wasn't it?
Because of the supply‐chain
issues that we had.
Lumber prices, you know,
went up fourfold. Yeah.
True.
Chet, I was not expecting
those kind of numbers.
How are you selling $9 million?
Oh, it breaks my heart.
We were not ready.
COVID, it spiked big‐time,
and we had the
frustrating situation
where we could not fill orders.
We did not have
enough coops. Got it.
So we missed out on
millions of dollars in sales.
Despite that, $6.8
million in sales last year.
‐Wow. ‐How much
did you net on that?
Well, last year was about 12%.
So going from 6.8 to
9 through six months
is a big step, right? Mm‐hmm.
What are you even doing?
What am I ‐‐ Oh. Yeah,
what are you looking at?
Oh, I was trying to make
sure I cover everything.
And... Well, go
ahead and make sure.
There we go. I'm sorry.
So, how are you paying
for all this inventory?
I'm here to raise money
for more inventory.
We're going to need it.
But have you raised money,
and who are your partners,
and how much of your
company do you still own?
‐I own 100%. ‐Oh!
Actually, I bought the
company last June 30th,
and that's when I owned 68%.
I didn't tell you.
I'm from the Amish
country in Pennsylvania. Oh.
But back to your
question about COVID.
We missed the COVID bump.
Last year could have
been well over $10 million
if we had had enough coops.
I'd like to go back
to the numbers.
Just give me the last
three years in revenue.
2019 was $2.2 million.
2020 was $6.8 million. Wow.
This year, we'll
probably do $20 million.
You got a big
ramp going in here.
That takes capital
'cause there's a
capex to this business.
‐Mm‐hmm. ‐You
got to make this stuff.
How did you raise the money?
So I had to do creative finance
to support the POs
and receivables.
We were able to borrow
against all the POs that we had.
It all worked out great
in the second quarter,
paid everyone back.
But now we're facing
much greater opportunity
along those lines,
and that's one of
the challenging things
about this business.
Chet, I've got to understand
some basic things.
So, number one, I don't
know what that costs.
The large is $1,899...
the medium is $1,499...
and the small is $1,099.
Our overall gross profit
margins are about 36%.
So COVID did have a heavy part.
It did have an impact.
So, on the one hand, you said
it had a negative effect on you
because you didn't
have a supply chain.
We missed out. But
you didn't miss out.
That's right.
All right. Well, you
get what I'm saying.
You are suggesting that I
was inconsistent in my answer.
Here's the thing ‐‐ yes, we
missed the COVID bump.
I swear we could have sold
$3 million, $4 million
more last year ‐‐
when we did $6.8 million, it
could have been $10 million
if we would've had
enough coops. Right.
But now we have
a factory set up in
Lancaster County, Pennsylvania.
We have one down in Dublin,
Georgia, Central Georgia,
and in Colorado,
so we can hit the
whole ‐‐ whole country.
So I would like you to
answer for me in two sentences
why Europe would want your coop
more than the coops
they have over there.
Most of what's
available in Europe
and in the United States
are frankly cheap imports,
and we came up with
this beautiful coop in a box,
and it is selling
big‐time. So...
And already, 700
units have sold.
But back to Europe, what
we know is that, in Europe,
they have backyard
chickens more.
But you're wondering how is it
that we could
compete in that market?
Same as here. Well, no.
I said in two sentences.
I mean, just being fair.
When you're selling something,
you need to be able to tell
people in a couple of sentences
what it is and why it's great.
It's a knock‐down
high‐quality coop.
Quality is great, but it's not a
strong enough differentiator.
And unfortunately,
I have to be out.
What is the lifespan
of a chicken?
Five to 10 years?
My fear with going
into business with you
is it is going to take me longer
than the lifespan of a chicken
to find out the details
of your business.
Now, before you go out, I
got to talk to you about Europe.
You didn't have me
over here with Europe.
You ‐‐ You really catapult me into
not interested. Well, let me tell you this.
Look ‐‐ Robert, listen ‐‐
I ‐‐ The most valuable
thing in my life is my time.
I don't want to spend it
learning about your business.
I'm out.
Okay, Chet, let me
take a stab at it, all right?
‐I love revenue. ‐Yeah.
I think your presentation was
a little wandering. Do you think?
But you got a lot
of revenue here.
I'll make you an offer.
I'll give you the
million bucks in debt
'cause you need capital.
I'll take the 4% equity,
and I want it paid
back over three years.
The average right now is 11.5%.
That capital will let you do
what you want to do stateside.
I don't know what you're
talking about in Europe,
but that's your decision.
I don't control the
business, but that's an offer.
At least you can
peck on that one.
‐All right. ‐A million bucks.
And, you know,
the added bonus is
you get Mr. Wonderful,
the Shark,
which could really help
blow this business up big‐time
because I just love chicken.
I like it with cream
sauce. I like it roasted.
Oh, stop.
Chet, you're already
cash‐constrained ‐‐
to Kevin's point.
And now you want to go out
and effectively have to build
factories around the
world, starting in Europe,
because you can't just
ship everything over there
and somebody is going
to have to make them.
So you have the capital
expense of doing that.
A million dollars,
whether it's debt or equity,
isn't going to allow you to
keep up with your growth.
I think you're coming in
talking overseas and Europe
because you think
that sounds good to us.
I don't think you've
really projected it out.
So for those reasons, I'm out.
You know, Chet, I ‐‐
you're asking $1 million for 4%.
I think we all know
here that, as you said,
materials have
just been... Brutal.
Yeah. That's a problem.
Think your margins
are going to shrink.
‐Well, the materials came
down. ‐Yeah, they did.
‐Yep. ‐It's all settled now.
‐They've come way down.
‐I don't think it's settled.
Our margins will go up.
I believe the
materials will still go up.
And I don't like your valuation.
So what valuation would
make you comfortable?
'Cause I'm here to
help you make money.
Daymond, that's a good offer.
Throw out a number.
25%.
Are you making an offer?
Yeah. $1 million for 25%.
Uh, let me see.
‐You three are out. ‐Yes,
and you have a real offer.
‐You have two offers.
‐I'm bringing you back in.
Let me explain.
May I have two minutes to
please explain something?
I care very ‐‐ Don't
speak to Robert.
Robert's out. They're out.
I know, but I got to
tell him something.
Three Sharks are out.
Chet has two offers on the table
for his business,
OverEZ Chicken Coops,
but his attention is
still focused on Robert.
Don't speak to Robert.
Robert's out. They're out.
I know, but I got to tell him
something. No, please don't.
‐Oh, my Lord. ‐No,
you should be talking
to who just gave you an offer.
Why are you here if
you want to talk right to him?
You're doing
exactly what he said.
You're making it
confusing. All right.
‐You're scaring us!
‐Well, no. Hang on.
Daymond, I want to hear
what he was going to say.
Go ahead, Chet. Bear with me.
I have gone to Europe many
times because we were looking
at expanding our
business over there.
So, next week,
I'm flying to Prague.
And if they are interested,
there's these amazing
folks ‐‐ What?
And by the way, in
the Czech Republic
and in Eastern Europe,
they want you guys.
Chet, I just want to say
one thing, okay? Yes.
One thing ‐‐ I can actually
speak chicken. Yeah.
Those chickens
are saying right now,
"Chet, why don't you get
focused on the two offers..." Okay.
"instead of talking to a guy
that's been out for 15 minutes?"
I'm going to have
to counter on yours.
I want both you guys.
I'd love to say yes to
Mr. Wonderful there.
In terms of the debt
‐‐ doesn't bother me
because we're so profitable.
But I need to ask you
one question. Yeah?
There might be
another million or two
that we need in PO support
that the banks won't give me.
No, I understand.
My answer is always the
same to every entrepreneur ‐‐
I support all my
companies, okay? Yeah.
Our interests are aligned.
I want you to succeed.
The answer is, of course,
if you actually come in
with business that makes sense
and I can make more
money with my 4%,
I'm going to support you.
That's what I do with
all my entrepreneurs.
You know, I'm not in love
with your European strategy.
I don't get it.
There's so much
opportunity stateside ‐‐
Yeah, particularly since
you need cash for POs, right?
You're not going to
have any money left over
for European expansion.
Chet, I asked you
not to entertain him,
which, you know,
you're a grown man.
You can do whatever you want,
but you have two
offers on the table,
and you just keep
getting distracted.
And I just got to say
that I think that is exactly
what it's going to be
in business with you.
So I like you, but I'm out.
Well, then, it's
just the two of us,
Mr. Wonderful,
isn't it? That's right.
For now.
"For now."
Do you want to get
together in this or not?
Mr. Wonderful,
I want to say yes to
your offer as long as
you are going to
support the other POs.
I'm not guaranteeing
that right now
'cause I don't know enough
about your income
statement and balance sheet,
but I told you I
support my companies.
The offer I'm
making right now is
the million dollars.
Oh, no, I'm accepting
that. We have a deal.
‐Alright. ‐Well, then, have ‐‐
Forget all the
rest of the noise.
‐Then what's the want? ‐Yeah.
Are you done?
I just wanted to talk
with Robert a little bit
about our designs in Eastern
Europe and get him ‐‐ He's out!
I want him to come back in. Come
on, let me talk to him. Wait a second.
Don't you want
someone from Europe
who has a passion for
helping create jobs behind ‐‐
He's not really from Europe.
He's been here a very long time.
I've been here a very long time.
Is Allen Funt around here?
Is this "Candid Camera"?
What's going on?
Alright, if you say so.
But, Robert, come on.
I wanted us to do special things in
Europe. We could even ‐‐ All right, Chet.
I'm with you.
Chet, I'm out. Oh, really?
I said yes, though, I said yes.
‐Yes, Kevin, yes.
Thank you. ‐I'm out.
You do not understand when a
guy offers you a million dollars,
but then you start talking
to a guy that's out ‐‐
I was the only Shark to offer you
a million dollars... And I said yes.
The only one that was
gonna fund your business
after everybody
else dropped out.
And then you say,
"Oh, no, I want to talk to
Robert about Czechoslovakia"?
No, that is ‐‐ That ‐‐
I just wanted to have
that. I said yes to you.
No, I'm out. I'm out.
You got to go, Chet.
‐Good luck, Chet.
‐Good luck, Chet.
Well, thank you.
And I hope that you'll enjoy
backyard chicken someday
if you want this.
‐Have a good day. ‐Bye, Chet.
Well, it looked
like I had a Shark.
But then he swam away
because I got distracted
in talking to Robert
after Mr. Wonderful
was going to step up.
So that was a strategic error.
‐Wow. ‐Wow.
What the was that?
I've never seen anything
like that, ever.
I'm not even Czechoslovakian.