Shark Tank (2009–…): Season 13, Episode 23 - Episode #13.23 - full transcript
Tonight on "Shark Tank"...
Hey, Sharks, we're here
to solve a big problem.
Today, we're fishing for Sharks.
I knew it!
I don't like your approach.
This isn't the direction.
Cut the throat, man.
For me, there's a huge elephant
in the room.
Are you losing money?
Yeah.
How much? Depending on the month,
somewhere between 40K and 50K.
What?! What a head-squeezer.
This story's getting
better and better.
First in the Tank
is a cosmetic company
for an underserved market.
Hey, Sharks. I'm Jon.
And I'm Devir.
We're from New York,
and we're seeking $600,000
in exchange for 5%
of our company, Stryx.
Oh, God.
Do you know what
everybody in this room
has in common right now,
besides being on television?
We're all wearing makeup.
But chances are,
the women are fine
applying and wearing makeup,
but most men aren't
nearly comfortable enough
to admit or use it.
Sharks, this happened to me
on the day of my wedding.
The greatest day of my
life, and I woke up with a zit.
And not just any zit.
As you can see...
Ew... I mean, this thing was
the mother of all zits, okay?
It was a volcano.
It was just waiting
to erupt. Yuck.
And while there were makeup
artists there at the wedding,
I was too embarrassed
to do anything about it,
and so my blemishes
were there to stay
for the thousands of photos
that were taken that day.
Every guy has an
experience like this,
whether it's a first date,
an important pitch like
here on "Shark Tank,"
or just coffee with a friend.
When you look your
best, you feel your best,
which is why Stryx
is changing the way
that men can instantly
fix their appearance with,
you guessed it,
it's makeup for men.
Stryx is the first company ever
to engineer cosmetic
and skincare products
with completely
custom formulations
and packaging
geared towards men.
We launched with
a sleek, discreet,
and very sexy concealer tool
and a tinted moisturizer,
and since then, we've
launched seven products
at the intersection of
cosmetics and skincare
so that you can instantly
fix your appearance,
including our
energizing eye tool
and our beard and brow gel comb.
So, Sharks, who's
ready to join us
and show the world...
There's nothing
wrong with handsome.
So we don't have
pens in front of you.
It's actually our
concealer tool,
so if you take a look there.
So we have it designed as a pen
so that it's sleek and discreet.
So this is just a concealer?
Correct.
So let me
start at the beginning.
What does concealer do, and
what are you supposed to do with it?
So the formulation is made
so that if you want
to cover up a pimple,
if you want to cover up
dark under-eye circles,
you just dab it on
and you're done,
so you don't need a primer,
a foundation, a sponge,
a brush, a setting powder.
It's made to be as
easy as possible
for guys to cover
up any problems.
And with the concealer
tool, we found out
one of the best uses for it
that guys were using it for
is for dark under-eye circles,
like under-eye bags. Right.
And so that's what led us to
launch the energizing eye tool,
which is also in front of you.
It tightens the skin
underneath the eye,
so it's meant to reduce
fine lines, wrinkles,
and it's really an
anti-aging type of product.
But how are you supposed
to even know how to do it?
Like, to me, it's like
war paint, you know?
You just, like, see a
streak. I mean, now what?
- That looks good.
- Mark, really?
So that's a huge thing
that we need to work on
as part of this brand,
is education around
these products.
Good job, Mark.
I actually use a product
like this all the time.
Of course you do.
I don't sleep enough,
so I get really baggy eyes.
There's lots of products...
Eye creams, everything...
That are made for men.
Correct. You're saying
you're a brand-new category.
What's the brand-new category?
Nobody's approached
the cosmetic category
from this angle.
Like, for me, when
I was younger,
I was bullied out
of my middle school
because I put gel in my hair,
and that hit my
confidence for years.
People bullied you because
you put gel in your hair?
Yeah. Oh, yeah. Oh,
yeah. I had the same thing.
This was also, I
mean... Seriously?
I would love to
hear, though, why this.
I mean, were you guys chemists?
Were you guys in
this industry at all?
So, no. So when
we first started,
I partnered with two
professional makeup artists.
They helped us really
be able to formulate
the first-ever really
cosmetic products
for men's skin as
opposed to women,
so what had happened
was is I raised
half a million dollars to start.
You what? That
was before I raised
half a million dollars to
launch the company. Wow.
Who did you raise it from?
Friends, family, and
then connections.
You got some
really good friends.
What portion of the
company did you give away
for the $500,000?
So at the time,
we raised at about,
you know, a $1.5
million valuation.
How long ago was that?
That was back in 2018. Okay.
And now you're at a
$12 million valuation
because you have amazing
sales. What are they? Yes.
So this year, we're at
about $130,000 in sales.
That's it?
Per month. Per month.
- Per month.
- Per month.
I knew it!
What's lifetime sales?
About $2 million.
$2 million? Okay. Yes.
How are you selling
$130,000 a month?
Well, a big one is D2C,
ecom, retail, our own site.
So we're about 95% D2C,
and then last year, we
launched in CVS nationwide.
We're the first men's
cosmetic brand.
I'm amazed you got
to CVS. Good for you.
For us, like, retail is really
a validation point.
In CVS, we actually
sit in the shave aisle.
We're not in a cosmetic aisle.
We're not in the women's aisle,
so we wanted to show
these products... Oh. Clever.
Yeah... Can be normalized.
What do you sell them for?
What's your
average selling price?
It's around $30.
85% gross margins.
So why the... why the value...
I mean, 'cause you do understand
that there's probably
a family that risked it all
and they just needed a shot.
And you know you took
that space from them.
Daymond, that's not
fair to do that, right?
Every entrepreneur
wants a shot, right?
At $12 million valuation, Mark?
Yeah, it doesn't...
Look, if it's gonna be
worth $200 million in 3 days,
then it's cheap, right?
But let me ask a
different question.
It may be worth
crap in two days.
Yeah, well, so is every
company facing that.
So let me ask a question.
Oh, you're gonna give
them a $12 million, Mark?
So when you raised
that much money
and give away basically 1/3
of your company at that point...
Sorry, I didn't hear that, Mark.
Are you saying when you
raised the half a million,
you gave up 1/3?
It was a little bit
less than that.
We have raised more
since then, actually.
Oh, that's what I
was getting to, right?
So how much do you
guys own right now?
Between the two of us,
we own a little bit more
than 1/3 of the company.
Okay, so that's why you need such
a high valuation. - Got it.
Because if you're asking for
that much money... - Well...
that's the only way you're
gonna retain any equity.
Oh, my God. Herjavec:
And so the total raise
from beginning was how much?
Historical, right around
$1.5 million total raised.
Okay,
and if you do this run rate
right now at $130,000 a month,
that's about $1.5 million in
sales for this calendar year.
How much you
gonna make off that?
We are not net profitable.
Everything we're making
is going right back
into marketing, growth.
Are you losing money?
Yeah. How much?
Uh, depending on the month,
somewhere between 40K and 50K.
- Can we get back to the product?
- Okay, so let's ask why.
Mark, this story's
getting better and better.
So let's find out why, right?
Because the margins are huge.
Yes, 85%. So if you're burning
that much cash, you are
spending it somewhere.
Yeah. Yeah.
Advertising or...
Yep, it's marketing primarily,
but we're expecting
to see 5X to 6X return
on the acquisition cost.
Of course you are.
Why did you guys
decide to go to retail?
Because that takes
a lot more capital
in order to drive
sell-through... It's true.
Whereas direct to consumer,
you can get a return on ad spend and see it
directly, so why did you make that choice?
Correct. But I love the
retail strategy, Mark,
because I wouldn't
know about the product,
but if I go to a CVS
in the shaving aisle,
I'm gonna see the product.
Yeah, but that's so expensive.
It's also very validating.
Our number-one
competitor is the stigma here,
so for guys to
see these products
right next to other brands that
they know and love and have used...
Yeah, but I'm not
saying that's wrong, right?
But one of the biggest things
I try to teach my entrepreneurs
is conserve your cash.
Yeah.
Because stuff happens,
and so you're gonna
have to raise more
than this $600,000, too.
So now you guys are gonna
have to give away 10%,
15%, 20% of your 33%,
and then you guys are
gonna end up with nothing.
For me, there's a huge
elephant in the room,
and that is that this packaging
tells me nothing about
your product whatsoever.
And Stryx, the name.
I have no idea it's
makeup for men at all,
so you could probably
be selling so much better
if those things
were clear on here.
And for those reasons, I'm out.
Thank you. Thank you.
The valuation's a little high.
I'd really rather
work with people
who need it a little bit more,
not second raising and
all that kind of money.
This is just not a
business for me.
I'm out.
Thank you. Thank you.
I love the category.
I mean, I think it's been
due for a long, long time,
but I don't like your approach.
You try to hide the fact
that it's makeup a little bit.
I think you got to own it more
because that's the only way
you're gonna change
hearts and minds.
If you convince bro culture to
do it, you change everything.
I would take a completely
different approach.
You know, you guys
have made your choices,
so for those reasons, I'm out.
Thank you. Thanks.
I'm not gonna tell you
how to run your business.
I expect you to do
that on your own.
I'm just an investor.
When I see a
good idea, I like it.
I don't like your valuation.
I don't think you're worth
12 million bucks, okay?
Sorry. I just don't.
Oh, I think
there's a royalty coming.
Yeah, I think so, too.
- Sounds like it, yeah.
- There may be.
In fact, it's because I
understand your issue
around your capital needs.
If you're getting into
retail with CVS and others,
you're gonna get POs,
and it's tying up your capital.
The more you grow, the
more capital is tied up,
so the way I'm gonna
structure my offer
is I'm gonna give you
$300,000 as a factoring loan.
36 months, 11 1/2%, okay?
Oh.
The other $300,000
is equity for 2 1/2%,
and I'm putting a royalty on
it on per package of 2 bucks
until I get my $600,000
back 'cause you can afford it.
And then it drops down
to 25 cents in perpetuity,
which is nothing, but
I'm part of the game.
Kevin, I think you actually
hit a new low with this offer.
Well, if you have something
better, Robert, feel free.
Not only are you
being a loan shark,
you're also adding
a royalty to it.
Yeah. I think this
is the first time.
If you have... And equity!
Listen, it's an offer.
I don't hear any others.
What's your offer?
Three Sharks are out.
Jon and Devir have an
offer on the table from Kevin
for their makeup
brand for men, Stryx,
but Robert may
also be interested.
Not only are
you being a loan shark,
you're also adding
a royalty to it.
Yeah. I think this
is the first time.
If you have... And equity!
What's your offer?
Yeah, I think Kevin's
double dipping
on his offer with you guys.
Sounds like triple.
Or quadruple.
You've heard a lot of negatives
about what you could do better,
but the one thing we can't
argue with is the sales.
Yeah. Whatever you're
doing, it's working.
My advice would be
this isn't the direction.
The guy on this picture
is already buying makeup.
You've got to get
somebody like me,
and I think you could
do really, really well
and create a big business. Is
there an offer in all this verbiage?
I mean, we'll take
compliments, as well.
We take feedback
and compliments.
I think the scariest
thing about his offer is
when you have a
royalty in perpetuity,
who's gonna buy
that company? Right.
You got to do an equity deal.
I'll give you the $600,000...
for 10%. Ouch.
I think getting a Shark
can really help you
with the platform.
I think you're on to something.
What an interesting dilemma you have.
Robert, would we be able
to meet in the middle at 7 1/2%?
I want to stick to
the 10%. I'm in this.
I don't want to go
in for a short time.
I don't need a royalty.
I'm in it for the long run.
We're gonna build
something, and let's go for it.
Mr. Wonderful,
we really want to be
on the wedding platform of love
because the wedding story,
this is great for grooms
and groomsmen...
but, Robert, you got a deal.
Yeah! Alright.
Good job, guys.
I would never make fun
of you for wearing gel.
What's going on with that?
I wear so much gel.
Oh, that was a great job, guys.
Really, really good job.
Good job, guys. Congrats.
Thank you. Thank you.
You know, we really, like,
had reasons we wanted
each of the Sharks.
Robert's the most
handsome, though,
and he's gonna help
us show everybody
there's nothing
wrong with handsome.
Men on makeup,
it's like years ago,
when Botox was a taboo.
Now you mention it, and
nobody lifts an eyebrow.
One of the worst jokes.
In Season 10,
Kelsey Moreira pitched
her edible cookie-dough
company, Doughp,
and left without a
deal from a Shark.
It's not something
that is a healthy
enough option for me.
Let's see what she's up to now.
It was pretty crushing to leave
without a deal that
day, but I did take away
a little nugget of
advice from the Sharks.
I made a portion-controlled
product called Doughp Drops.
Doughp was created after I
made the amazing decision
to get sober.
I rediscovered my love of
baking and really who I was.
I pitched to the
Sharks to open up
a new brick-and-mortar
store in Las Vegas.
Though I didn't get
funding in the Tank,
I found some outside capital,
and I was able to
open up that store.
In 2019, I did $1.2
million in sales.
Then the pandemic hit,
and if you fast-forward to
2020, we did $2.7 million in sales.
And $2.5 million
of that was online,
so it made the
most sense to close
our brick-and-mortar
storefront to focus entirely online,
where our mission can
reach more people than ever.
We just rolled out at
Costco and Walmart,
and we are live at Harmons,
New Seasons, and Foxtrot.
Edible dough, and
you can bake it.
We recently aired
on QVC, and it went so well
that they're bringing
us back later this year
to show off our Doughp Drops.
You're going down a wrong path.
You go, "You know what?
I'm gonna return to
a passion of mine,
which is baking."
Way to go, woman.
My sales when I pitched to the
Sharks was around $800,000.
4 years later, our lifetime
sales are $9.4 million.
Now I'm happily married, and
I'm going on seven years sober.
And we started the
Doughp for Hope initiative.
Doughp for Hope has
donated more than $60,000,
working to break the
stigma around mental health
and addiction recovery.
I want to make sure that if
there's anybody out there
who is struggling,
reach out for help.
There is a lot of joy
waiting on the other side.
What we're doing at Doughp
for Hope and the messages
that I get from customers
are exactly what fuels me
to fight another day
and reach more people
and hope that we can change
more lives along the way.
Next up is a product
to make water sports
more comfortable.
Hey, Sharks. My name is Wes.
And I'm Greg.
We paddled up the
coast of California
to see if you
want to take a bite
out of our company...
Driftline.
We're here today
seeking $100,000
for 10% equity in our company.
Driftline is a revolutionary
water-sports apparel brand
based out of San Diego.
We're here to
solve a big problem.
See, a couple of years ago
during a dawn
patrol surf session,
it was that
transitional time of year
where the water was just
too warm for a full wetsuit
and too cold for your
traditional board shorts.
A net liner?
Do people even still
wear these things?
They're insanely uncomfortable
and don't provide any
warmth or protection.
There has to be a better way.
And that's why
we created Drifties.
Drifties are the premier
two-in-one board short
with a patent-pending
wetsuit liner
connected to a
stylish outer shell,
offering comfort, warmth,
and chafe protection
specifically designed
for water sports.
And we've all seen
that guy at the beach
doing the classic waddle
to avoid the excruciating
pain of chafing,
but with Drifties'
cloud-like wetsuit liner,
we solved that problem
while keeping you
warm and supported.
Drifties have been tested
by almost every
water-sport athlete out there.
They've also been tested
in the most extreme
conditions all over the globe.
And remember, you never
want to swim with sharks...
Without your Drifties.
Good job, guys.
So each of you has a pair
of Drifties in front of you.
It feels like a neoprene. Is it
a neoprene? That's what it is.
Neoprene is a rubber foam
that basically stores heat
and prevents that
initial cold shock
that you see guys get when
they first step in the water.
So basically, it's a wetsuit
married to board shorts.
Correct. We combined the two.
Hadn't really been
done before, actually.
Yeah, we actually have
applied for our utility patent on it,
and hopefully get it in
the next couple months.
Good for you guys. It
seems really smart to me.
I mean, I will tell you,
it's really great quality.
Tell us about your sales.
Currently, year to date,
we're actually at about
$125,000 in sales.
Last year, we did
about $100,000 in sales,
and we're projected on pace
to do about $200,000 this year.
How are you selling
these... direct to consumer,
do you put them
in specialty stores?
So right now, we're actually
99% direct to consumer.
Are you spending a lot of
money to get people to your site?
Actually, not really.
This past year,
we only really spent
about $10,000 in marketing.
What does it cost?
Sorry, you never told us.
So those retail for $89.
It costs $25 to
make, $33 landed.
I'm surprised. I mean,
that's not bad at all.
- Not bad at all.
- Because this is complicated.
Yeah, well, that's
why we went through
so many different manufacturers
and iterations to get the real
material and product we need.
And is your history
in manufacturing?
No, actually, I had a sales
marketing background.
I actually was taking night
classes for graphic design,
which is my full-time now,
and that's kind of
what spawned the idea.
When we had that legitimate
lightbulb moment on the beach,
I needed a project for
school, and I was like,
"Well, let's just, you know,
see if I can brand this."
That's great. That's great.
And by the end, we
actually had a business.
And you did it. What's
your background?
So I'm actually a
financial background,
and now I'm more in
tech and marketing sales.
It is a fantastic idea.
What I'm struggling with is
can you sell enough just shorts
to make a sustainable business?
That's part of where
we have this patent
that we're hopefully gonna get
in the next couple
of months here,
but really, what we're building
is not just for surfing.
We're also expanding
into water sports
that need specific iterations
on the actual product
specifically for that sport.
Give me an example
of that. So, for instance,
kayaking is
different from surfing,
and you can add
additional lengths
to the neoprene
and things like that.
So you can iterate under
the umbrella of the patent
specifically for
different water sports.
How much money will
you guys make this year?
We're pretty much
break even at this point
'cause we're putting
everything back into R&D,
and honestly, right now,
we have that funnel of people
that want to buy our product.
We just need to place
bigger purchase orders
to drive down the cost
and increase the margins.
Do you have the orders,
or do you think
you'll get orders
if you drive down the cost?
So we've already sold
out of SKUs and styles
for this upcoming season,
and the problem is
now people want them.
So you cannot keep up with
the orders at the moment.
No.
It's a very good innovation.
You know, I look
at million valuation.
I don't think that's that crazy,
but I just don't know
how big this market is.
That's the only reason I'm out.
I just don't feel
the scaling of it.
This is not for me. I'm out.
This is a really phenomenal
job you've done in the creativity,
putting the two things together,
but, you know,
I like to hit, like,
a broad, mass audience.
Love it, love you, but
because it's niche, I'm out.
I'm not sure about
the expansion,
like you were saying,
how easy that's gonna be,
but I do believe that
if you're in that world,
you buy a pair,
you're never gonna go
back to a regular... Right.
Board short again, right?
But there's two other Sharks
here that are in the space.
Mark, he's had rockstar numbers
with the paddleboard company,
and, Robert, you have...
Hamboards, Sand Cloud,
and Tipsy Elves
out of San Diego.
I think you need a collaboration
with somebody who can
bring you other people,
members and other people
marketing collectively.
You don't compete. You
complement each other.
So I don't think I can
add any value here.
I'm out. I appreciate it.
Hey, guys, congrats
on what you've accomplished.
It's super smart.
My problem is I don't
know if it can be big enough.
You know, you can be a $2
million, $3 million company,
but it's really
not a fit for me.
So for those reasons, I'm out.
Yeah, you know,
I'm definitely in this space,
but it's got to be enough...
Yeah... that it's
worth my time.
We know this space well.
We can really help
you with all that.
I just can't do it for 10%.
What can you do it for, Robert?
I'll actually give you
a little more money.
There's a term I love,
which is accelerate to fail,
meaning I think
you got to go faster
to find that breaking
point in the business.
Yeah. Let's not
do this for 10 years.
Let's accelerate.
I sense an offer coming
that's going to be very painful.
I'll give you a
$150,000, but I want 1/3.
Ouch.
I'm chafing. I'm chafing.
Oh.
I mean, I... we very
much appreciate that.
Would you bump that down to 15%?
No.
Okay. No, no.
There is only
one Shark that's in
because I think I
understand the complexity
and how hard this is. Yeah.
If you get the patent
if we get the patent...
We're gonna more than $150,000.
It's a whole nother... Scale.
Like at this point, though,
a little more money,
let's go faster.
Well, Greg and I... I mean...
You know, Wes,
I can't read lips,
so you don't have
to cover your mouth.
Yeah, that's fair. That's fair.
I mean, we definitely,
you know, love the work
that you've done in the space.
I mean, would you do
something down to 20%?
I mean, can we get you
to that number? No, no.
I just... I know
how much work it is.
I mean, I think the highest
we could probably go is 25%.
Robert, that's reasonable.
It is reasonable.
I'm offering you more
money. Let's not forget that.
And, you know, honestly, if
I'm worth 25%, I'm worth 33%.
That's a steal for you, Robert.
And that's what I
felt comfortable with.
That's my gut feel.
I'll give you $100,000 for 20%.
Wow.
But you got to
take it right now.
Say yes.
I think the highest we
can go for that is 15%.
Yeah, guys, I mean, think about
what's on the table right now.
I offered you $100,000 for 20%.
You only have 5% flexibility,
and you said you need us.
I mean, I guess you're
indecisive, so I'm out again.
What are you gonna do, Robert?
I think if you're
comfortable at 25%,
you're comfortable at 28%.
I'll come down from 33% to 28%.
What a head-squeezer.
Yeah.
I mean, we came here
kind of with numbers in mind,
so unfortunately, we're gonna
have to pass at that number.
You got to do what you gotta do.
Thank you, though. Thank you so
much. Thank you so much, Sharks.
Good luck, guys. Congrats.
Way to stick to your guns.
We just weren't
willing to give up 1/3
of what we've worked so hard at,
but at the end of the day,
we didn't feel like
his heart was in it.
And that's what we're in for,
so, you know, for that
reason, we were out.
Next in the Tank
is a functional accessory
for your furry pals.
Aww.
Hi, Sharks.
I'm Shannon from Austin, Texas,
and this is my dog, Rishi.
And I'm Griffin from
Oxnard, California,
and we're seeking $400,000
for 6% equity in our company.
Wow.
More and more, our dogs
are going everywhere with us...
In the car, on a
hike, to brunch,
even on our stand-up
paddleboards.
While our relationship with
dogs has completely modernized,
most dog products are
still clunky, inconvenient,
or something even your dog
would be embarrassed by.
The most important
thing that your dog needs,
besides pets and
cuddles, is water.
But who here has tried
the "make your hand
into a bowl" method?
It's messy, wastes water,
and doesn't work well.
Or you can pour the
contents of your water bottle
into a portable bowl...
and when your dog
doesn't drink at all,
you're left having
to throw it out.
And public water bowls
can infect your pup
with creepy bacteria.
And let's be honest,
we know you kiss
that mouth daily.
So we invented the
Springer travel bottle,
the best way to
give your dog water
anywhere at any time.
Come here, bud.
Simply squeeze the bottle.
The bowl will
fill up with water.
When your dog is done drinking,
release the bottle,
and the water goes
back into the bottle.
No mess, no fuss, and no wasting
water. - That's pretty cool.
This is just the first
of many innovative
products in the pipeline
that solve problems that
pet owners face every day.
So, Sharks, who's
ready to join our pack
and make Springer top
dog of the pet industry?
It's really a good idea.
If it falls sideways,
does it leak?
So there is a
leak-tight shut-off.
We have to tighten it?
So you twist it in the middle.
Okay, then it doesn't leak.
Yes, and then it's
completely leak-tight.
Wow.
Alright, so, listen,
tell us about you.
How did you come up with this?
Our dad is an inventor.
He invented the first
travel mug 35 years ago.
You guys are brother and sister?
Yes, my brother.
So Griffin and I actually
started our careers
as models for the company.
Oh, my
God! You're so cute.
That's great.
A few years ago,
I adopted Rishi.
I became part of the
demographic of crazy dog parents
that would do
anything for their dog
but whose problems
weren't being addressed,
and that's when
Springer was born.
So what am I
investing in? Springer.
So we created a new pet brand,
Springer, that
sells this bottle.
So this is your first product.
Yes. Right? Do you
have any patents?
Yes, we have eight patents
covering these products.
Eight? Eight.
Wow.
Utility, design in the
U. S. and internationally.
So when did
you start going to market,
and how were you selling it?
Our first year of
sales was in 2016,
and we did about $711,000
in revenue in the first year.
Wow.
For the next couple years,
we sold between about
$650,000 and $750,000 per year,
and in 2020, we got
$1.7 million in sales.
Wow. And how much
money did you make?
'Cause there's got
to be great margins.
Yeah, there are great margins.
Yeah. We made $100,000, and...
That's not great.
That's it? $100,000?
Yeah, so last year,
we decided it was gonna
be a growth year for us,
so we reinvested
a lot of our profit
into more IP, branding,
building out new innovations
that are coming later this year.
So tell us your margins.
What does it cost to
make one of these?
It is about $3 on average to
make one of these products.
Our margins on retail are 88%.
Our mini... the
mini sells for $22,
the medium size sells for $25,
and the growler sells for $28.
Those are great margins,
but where'd the money go?
The $6.4 million valuation
is a bit of a stretch for a
single-product company,
but actually, you're
just breaking even.
You're making
$100,000 on $1.7 million.
I'm calling that breaking even.
I'm looking for
$500,000 worth of costs
that I don't understand
where they are.
Something is eating up $500,000.
You got 88% gross margins.
Yeah, and something
else doesn't add up.
We had a lot of investment in IP
and brand protection because...
What was the total
expense of that?
For branding, it was
about $150,000, website.
Yeah, but you see how
all this doesn't add up,
'cause those expenses
are accrued over five years.
You know, so Well, a lot of it
went invested in the last year,
and those are one-time expenses.
And then we have a team,
so it's us, our parents.
We have two other
employees in-house.
What do you guys make?
We make about $70,000.
Look, I think the products
are really cool, right?
They're ingenious
in a lot of respects,
but what concerns me
is that you've been
selling it for five years.
I'm surprised it
hasn't done a lot more.
For those reasons, I'm out.
Who is the person that
came up with the brilliant idea
of only offering us 6%?
So to justify that,
we're on track this year
to sell $2 million,
and next year, we're
projected at $3.2 million.
We can give you the
money. Is that all you want?
We want your expertise.
We got to work, too,
for the money, right?
For 6%? Really?
- What expertise do you need?
Really? You want me to pay
and get a small return
and then work for you?
It doesn't make any
sense to me. We primarily...
It's not worth my time. I'm out.
Okay. Thank you.
I think it's a very
good product,
but I can't get past one thing.
And it might be my own bias,
and it might be my age.
But the thing I was taught
is when you start a business,
the first thing that gets
paid is the business.
And the last thing that
gets paid is the owner.
Yes, and that's why the...
And you're doing
it the opposite.
You're paying
yourself $70,000 a year.
I mean, you're starving
the business for cash
to make a living.
I don't want to be
part of that. I'm out.
Okay, so let me
take a stab at this, alright?
What I like about
this deal is sales.
I love cash flow. This
is a family business.
The only way I
would do this deal is
I want to stay out
of that soup, alright?
With a 6% ownership,
I have no say anyways.
This is a royalty deal. It
keeps everything aligned.
My interest to sell
more is very high,
so I'll give you the $400,000.
I want 3% equity,
as schmuck insurance, in
case the product gets sold
while I'm in my royalty
agreement with you. Okay.
And I want $3 a unit
until I get my $400,000 back,
and then I want half of
that, $1.50, in perpetuity.
I have lots of people
can blow this up digitally,
and I would do that 'cause
my interests are aligned.
And that's my offer.
Okay. Okay. Thank you.
Yeah, thank you for your offer.
We really appreciate your offer.
Thank you. I love this.
I think it is so smart
and so innovative,
and just, like, why would
you use anything else?
Yeah. I'm gonna
make you an offer.
I'm gonna give you
the 400K for 10%,
but I want preferred stock.
Which means I would
get distributions first
whenever there's
profits that are paid out.
Awesome. Okay.
Thank you for your offer.
Would you do it for 8%?
No, I got to stick at
10%, you guys, come on.
It's risky,
and I got to be excited
to get out of bed.
Lori, we'd be happy
to do that deal with you.
- Yay!
- You got a deal!
Yeah, Rishi!
Fluffy, bite her.
My first inventor family! Yay!
Whoo!
- We're so excited.
- So good.
I'm so happy to be
part of the family.
Bye, you.
See you, guys. Congratulations.
Well done.
Enjoy those products,
too. Thank you.
Whoo!
Now that we
have Lori on our team,
we're ready to blitz the market.
She was the ideal Shark for us.
We feel like she's already
part of our Springer family.
Whoo! Whoo! Yes!
Whoo! We made a deal!
Next up is a company
that combines two
loves into one product.
Hi, Sharks. My
name is Chase Terrell,
and I'm from Sand
Springs, Oklahoma.
My name's Chris Diede,
and I live in Austin, Texas.
This is my son and
my brother-in-law,
and I'm Jake Rutledge,
the inventor of...
The Chill-N-Reel!
Today, we're
fishing for $300,000
for a 10% stake in our company.
Wow. My dad has solved
one of the world's
biggest problems.
Hold my beer!
Chase, hold my beer!
I can't, man!
My hands are
full over here, too!
How am I supposed
to reel in this fish
and hold my beer
at the same time?
There's got to be a better way!
That's why I invented
the Chill-N-Reel,
the only drink insulator
you can fish with
and the only drink insulator
with a hand-line
reel on the side.
If you enjoy fishing,
you know how
much of a hassle it is
to pack all your
gear just to casually...
pitch out a line.
No way. Obviously, the
Chill-N-Reel was not made
to reel in a marlin.
However, what it was made for
is nothing short
of a real good time.
We have the Chill-N-Reel
designed to be
easily cast-able, reel-able,
and, of course, drinkable.
Just pitch it out,
grab your slack,
and tip it back and
start reeling them in cold.
We've caught bass, crappie,
and catfish on the Chill-N-Reel,
but today, we're
fishing for Sharks.
Who's gonna take a bite?
Nice, nice.
Where's the rod?
Like, how is the rod...
That is the rod.
There is no
rod. That's the rod?!
This is it.
Lori, with the fish you're
catching, this is good enough.
So this just is basically
for smaller fish.
You're not taking it
that serious, right?
So how much pound
test line is on here?
Eight-pound test is on there.
Eight pounds?
Actually, I have thrown
50-pound braid on there,
and I've caught
16-pound blue cat.
I caught a 3 1/2-foot
hammerhead shark.
Really?! Yes.
If you hold the line and try
to reel it, it'll cut your hand,
but if you sit here and
use this as your crank...
Is that
in Florida? Yes.
So tell us what's
happening there.
Well, I'm reeling
a fish in right now.
Where's the fish?
He's coming. He's coming.
Boy, that's a big
boy. That's a big boy.
Come on!
Where's the shark?!
I don't have my phone or
I'd pull it out and show you.
Wah-wah.
I hope they send it back, right?
Oh, yeah.
Let's be clear,
though, this is not...
It's not made for the big guys.
It's for those days
when you just want
to chill and reel.
It's fascinating.
I got to know, what happened
to you guys to invent this?
Okay, here's the story.
My family, we're on a family
vacation down in Florida,
and we're all out in the
water drinking a beer.
And I look down and
there's fish everywhere.
Well, I got to catch those fish,
and my buddies looked at me.
They said, "Man, you
bring a rod out here,
you are gonna upset
everybody out here."
I said, "Hey, watch this."
I didn't even have to
say, "Hold my beer."
I just went in, tied some line
onto the bottom of my koozie,
wrapped it around,
would come out,
pull all the string out,
throw it out, catch
a fish, reel it in.
I just kept spilling
my beer everywhere.
Did you catch
anything? Oh, yeah.
We were always catching fish.
Jake, what's your background?
I've been a Tulsa
firefighter for 21 years.
Good for you. Thank you.
So I have always wanted
to come up with something.
And never did you ever dream
you'd be fishing and drinking
and ending up on "Shark Tank."
That's it.
Why don't we
start with last year's sales
and now what you're
gonna do this year?
Well, I'll tell you,
the last 12 months,
we've done $1.34
million in sales.
- What?
- You got to be kidding me?
On this crap?
This little thing.
A lot of chill
anglers out there.
Was not expecting that answer.
Yeah. $1.3 million in a year?
That's right. In
the last 12 months.
So last year, up until June,
there had been $50,000 in sales,
and then from then on, we
finished the year at $680,000.
What about this year?
This year, we're at
about $760,000 so far.
Okay, and what do you think
you'll make this year? So far.
About $1.65 million. Damn!
So, guys, this thing is a total
little piece of crap selling a ton.
That's what I thought!
I thought the exact same thing
until I saw this...
That there was this
response that happened
from people who
just want to be out,
hang out on the
water, float the river.
What does it cost to make,
and what do you sell one for?
They sell for $12.95
for the solid colors,
$15 for the camos.
They cost us $2.06,
and we manufacture in Tulsa,
Oklahoma. All made in Oklahoma.
Did you throw a lot of
money on marketing?
We did. Okay.
Yes.
How much have you
spent in the last 12 months?
Spent about 40%.
So $400,000?
Yes. Little lower.
Around $400,000.
So... Wow. So take
out the advertising cost.
Yeah.
What's your net margin?
Last year, we made
a little over $70,000.
And how much have
you made this year?
This year, we are
negative $25,000.
We just placed an
order for 54,000.
So that's where your cash went.
Right.
We've got $350,000
worth of inventory
in our warehouse right now.
Look, the thing
is so ridiculous,
but I can't help but
respect the sales.
1.65 million bucks.
I mean, that's just...
But it's such a piece of crap.
Look, I wish you the best,
but I can't invest in this.
I'm out.
Oh, well, we hope
you'll reconsider.
It's fun for you guys.
It's not investable for me.
It's not really a company
for me, you know?
But I wish you good luck.
I love what you've done.
I'm out.
Thank you, Lori.
One thing I'd like
to add, though,
just so you're all aware,
we all think there's some
opportunities to license
the technology, as well,
which happens to be patented.
Reeling in on koozie?
The drink insulator that
you can fish with.
I want to be the patent
officer that saw that one.
Daymond.
What? What are you gonna do?
It's a great, fun business.
We're selling good times,
and people are buying.
People are buying. I don't
want to ruin your good time,
but as an investor, I'm not
gonna have as much fun.
Right? I didn't come up with it.
I'm not with you guys
every day running it.
I just don't think it's
for me, so I'm out.
Thank you. I'm
sorry to hear that.
Mark?
Look, guys, I've got two
fundamental problems.
One, there's just not
enough net margin to it, right?
You're spending 40%
on your advertising,
and so that's really
where you've got
to kind of make it better.
Right. But even if
you did a lot better,
there's not enough margin
left there for an investor,
so that's the first problem.
But the bigger problem is, as
somebody who lives in Texas,
if you can't hold your
beer no matter what,
you're doing it wrong.
So I'm out.
Look, I've been really thinking
'cause first, I was
completely out,
then I was completely in,
and one of you said it...
You're selling fun,
and people want fun.
We just had a year of COVID.
We were all locked up at home.
People want excitement and fun,
and you're really selling them,
for a very small price point,
you're selling them fun.
My issue is, you know,
there isn't enough
room in this deal.
Like, you guys are in a boat,
and the boat is staying afloat.
But if I come in,
it's gonna sink.
Or we're gonna get
a lot bigger of a boat.
Gonna need a bigger boat.
Where I think
we can really optimize
on that margin with the
marketing and advertising
is we've seen this
year as a branding year.
That's what's been
expensive, I think,
especially this first year.
That'll crunch in as
we get awareness.
Chris, I've made
crazier investments
and done really well.
I just don't know.
I mean, I love the fun.
I love the beer.
This deal is all
about royalties.
Oh!
Four Sharks are out,
and Robert is on the fence
about investing in Chill-N-Reel,
a fishing reel and
beverage koozie.
This deal is all
about royalties.
Oh!
What are you gonna do, Robert?
I will give you the $300,000.
I'll keep 10% as
equity, and I'll take $2...
- Ooh.
- Ay, Chihuahua.
Per reel.
I like it. My first royalty
deal. This is exciting.
Learn, grasshopper. Learn.
What do you think?
You have the margin to do it.
How long is the
royalty in place, Robert?
As long as we're having
a good time, Daymond.
So that's the difference
between Robert and Kevin.
He said it very nicely,
but that means perpetuity.
Cut the throat, man.
You guys can counter.
Uh...
I don't think we're
in for royalties.
Smart man.
If you wanted to go...
15% for $300,000...
we can do that.
You don't like the royalty,
but you don't mind the equity.
Right. Right.
I mean, the money...
Money's great, but
we're here for a partner.
Alright. $300,000.35%.
Ay, Chihuahua!
It's not a hard negotiation.
I'm taking a flier on you guys.
I think you've really
figured out something.
It may go somewhere.
I'm willing to risk
the $300,000,
and I've worked really
hard for $300,000.
You know, people always
sit up here and they think,
"Oh, it's just
money to you guys."
I remember the days
where I worked my ass off
for, you know, 10 bucks,
so it's a lot of money.
I believe in you guys.
That's my offer $300,000, 35%.
You want to take it?
I'm happy to go
along for the boat ride.
If not, we'll have
a beer together.
Would you go to 20%?
No, no.
Okay.
I appreciate the offer, but
we're gonna have to decline.
Way to stick to your guns, guys.
Thank you. Good job.
Cheers. Thank you, guys.
One, two, three.
I have no idea what
we're saying, but drink.
No idea.
- Thank you, guys.
- Thank you, guys.
Keep having fun
and making money.
Appreciate it. Thank you, guys.
Good luck, guys.
What were they thinking?
I don't know.
That's surprised me.
Everybody... They
thought it was fun.
Everybody in the U. S.
Is gonna think it was fun.
We didn't catch a Shark today,
but hey, there's lots
of sharks out there.
We'll go out
and catch one tomorrow...
With the Chill-N-Reel.
What a total piece of
and $1.6 million.
Like, that's just...
They were spending all that
money on advertising.
That was the problem.
That was a lot of money, a lot.
It was converting,
but it's a lot of money.
Kevin, I was so excited there.
I thought I had a royalty deal
for a second.
I wanted to know what it felt
like after all these years.
If you'd gone to a buck a reel,
he would have done the deal.
Buck a reel gets the deal.
Hey, Sharks, we're here
to solve a big problem.
Today, we're fishing for Sharks.
I knew it!
I don't like your approach.
This isn't the direction.
Cut the throat, man.
For me, there's a huge elephant
in the room.
Are you losing money?
Yeah.
How much? Depending on the month,
somewhere between 40K and 50K.
What?! What a head-squeezer.
This story's getting
better and better.
First in the Tank
is a cosmetic company
for an underserved market.
Hey, Sharks. I'm Jon.
And I'm Devir.
We're from New York,
and we're seeking $600,000
in exchange for 5%
of our company, Stryx.
Oh, God.
Do you know what
everybody in this room
has in common right now,
besides being on television?
We're all wearing makeup.
But chances are,
the women are fine
applying and wearing makeup,
but most men aren't
nearly comfortable enough
to admit or use it.
Sharks, this happened to me
on the day of my wedding.
The greatest day of my
life, and I woke up with a zit.
And not just any zit.
As you can see...
Ew... I mean, this thing was
the mother of all zits, okay?
It was a volcano.
It was just waiting
to erupt. Yuck.
And while there were makeup
artists there at the wedding,
I was too embarrassed
to do anything about it,
and so my blemishes
were there to stay
for the thousands of photos
that were taken that day.
Every guy has an
experience like this,
whether it's a first date,
an important pitch like
here on "Shark Tank,"
or just coffee with a friend.
When you look your
best, you feel your best,
which is why Stryx
is changing the way
that men can instantly
fix their appearance with,
you guessed it,
it's makeup for men.
Stryx is the first company ever
to engineer cosmetic
and skincare products
with completely
custom formulations
and packaging
geared towards men.
We launched with
a sleek, discreet,
and very sexy concealer tool
and a tinted moisturizer,
and since then, we've
launched seven products
at the intersection of
cosmetics and skincare
so that you can instantly
fix your appearance,
including our
energizing eye tool
and our beard and brow gel comb.
So, Sharks, who's
ready to join us
and show the world...
There's nothing
wrong with handsome.
So we don't have
pens in front of you.
It's actually our
concealer tool,
so if you take a look there.
So we have it designed as a pen
so that it's sleek and discreet.
So this is just a concealer?
Correct.
So let me
start at the beginning.
What does concealer do, and
what are you supposed to do with it?
So the formulation is made
so that if you want
to cover up a pimple,
if you want to cover up
dark under-eye circles,
you just dab it on
and you're done,
so you don't need a primer,
a foundation, a sponge,
a brush, a setting powder.
It's made to be as
easy as possible
for guys to cover
up any problems.
And with the concealer
tool, we found out
one of the best uses for it
that guys were using it for
is for dark under-eye circles,
like under-eye bags. Right.
And so that's what led us to
launch the energizing eye tool,
which is also in front of you.
It tightens the skin
underneath the eye,
so it's meant to reduce
fine lines, wrinkles,
and it's really an
anti-aging type of product.
But how are you supposed
to even know how to do it?
Like, to me, it's like
war paint, you know?
You just, like, see a
streak. I mean, now what?
- That looks good.
- Mark, really?
So that's a huge thing
that we need to work on
as part of this brand,
is education around
these products.
Good job, Mark.
I actually use a product
like this all the time.
Of course you do.
I don't sleep enough,
so I get really baggy eyes.
There's lots of products...
Eye creams, everything...
That are made for men.
Correct. You're saying
you're a brand-new category.
What's the brand-new category?
Nobody's approached
the cosmetic category
from this angle.
Like, for me, when
I was younger,
I was bullied out
of my middle school
because I put gel in my hair,
and that hit my
confidence for years.
People bullied you because
you put gel in your hair?
Yeah. Oh, yeah. Oh,
yeah. I had the same thing.
This was also, I
mean... Seriously?
I would love to
hear, though, why this.
I mean, were you guys chemists?
Were you guys in
this industry at all?
So, no. So when
we first started,
I partnered with two
professional makeup artists.
They helped us really
be able to formulate
the first-ever really
cosmetic products
for men's skin as
opposed to women,
so what had happened
was is I raised
half a million dollars to start.
You what? That
was before I raised
half a million dollars to
launch the company. Wow.
Who did you raise it from?
Friends, family, and
then connections.
You got some
really good friends.
What portion of the
company did you give away
for the $500,000?
So at the time,
we raised at about,
you know, a $1.5
million valuation.
How long ago was that?
That was back in 2018. Okay.
And now you're at a
$12 million valuation
because you have amazing
sales. What are they? Yes.
So this year, we're at
about $130,000 in sales.
That's it?
Per month. Per month.
- Per month.
- Per month.
I knew it!
What's lifetime sales?
About $2 million.
$2 million? Okay. Yes.
How are you selling
$130,000 a month?
Well, a big one is D2C,
ecom, retail, our own site.
So we're about 95% D2C,
and then last year, we
launched in CVS nationwide.
We're the first men's
cosmetic brand.
I'm amazed you got
to CVS. Good for you.
For us, like, retail is really
a validation point.
In CVS, we actually
sit in the shave aisle.
We're not in a cosmetic aisle.
We're not in the women's aisle,
so we wanted to show
these products... Oh. Clever.
Yeah... Can be normalized.
What do you sell them for?
What's your
average selling price?
It's around $30.
85% gross margins.
So why the... why the value...
I mean, 'cause you do understand
that there's probably
a family that risked it all
and they just needed a shot.
And you know you took
that space from them.
Daymond, that's not
fair to do that, right?
Every entrepreneur
wants a shot, right?
At $12 million valuation, Mark?
Yeah, it doesn't...
Look, if it's gonna be
worth $200 million in 3 days,
then it's cheap, right?
But let me ask a
different question.
It may be worth
crap in two days.
Yeah, well, so is every
company facing that.
So let me ask a question.
Oh, you're gonna give
them a $12 million, Mark?
So when you raised
that much money
and give away basically 1/3
of your company at that point...
Sorry, I didn't hear that, Mark.
Are you saying when you
raised the half a million,
you gave up 1/3?
It was a little bit
less than that.
We have raised more
since then, actually.
Oh, that's what I
was getting to, right?
So how much do you
guys own right now?
Between the two of us,
we own a little bit more
than 1/3 of the company.
Okay, so that's why you need such
a high valuation. - Got it.
Because if you're asking for
that much money... - Well...
that's the only way you're
gonna retain any equity.
Oh, my God. Herjavec:
And so the total raise
from beginning was how much?
Historical, right around
$1.5 million total raised.
Okay,
and if you do this run rate
right now at $130,000 a month,
that's about $1.5 million in
sales for this calendar year.
How much you
gonna make off that?
We are not net profitable.
Everything we're making
is going right back
into marketing, growth.
Are you losing money?
Yeah. How much?
Uh, depending on the month,
somewhere between 40K and 50K.
- Can we get back to the product?
- Okay, so let's ask why.
Mark, this story's
getting better and better.
So let's find out why, right?
Because the margins are huge.
Yes, 85%. So if you're burning
that much cash, you are
spending it somewhere.
Yeah. Yeah.
Advertising or...
Yep, it's marketing primarily,
but we're expecting
to see 5X to 6X return
on the acquisition cost.
Of course you are.
Why did you guys
decide to go to retail?
Because that takes
a lot more capital
in order to drive
sell-through... It's true.
Whereas direct to consumer,
you can get a return on ad spend and see it
directly, so why did you make that choice?
Correct. But I love the
retail strategy, Mark,
because I wouldn't
know about the product,
but if I go to a CVS
in the shaving aisle,
I'm gonna see the product.
Yeah, but that's so expensive.
It's also very validating.
Our number-one
competitor is the stigma here,
so for guys to
see these products
right next to other brands that
they know and love and have used...
Yeah, but I'm not
saying that's wrong, right?
But one of the biggest things
I try to teach my entrepreneurs
is conserve your cash.
Yeah.
Because stuff happens,
and so you're gonna
have to raise more
than this $600,000, too.
So now you guys are gonna
have to give away 10%,
15%, 20% of your 33%,
and then you guys are
gonna end up with nothing.
For me, there's a huge
elephant in the room,
and that is that this packaging
tells me nothing about
your product whatsoever.
And Stryx, the name.
I have no idea it's
makeup for men at all,
so you could probably
be selling so much better
if those things
were clear on here.
And for those reasons, I'm out.
Thank you. Thank you.
The valuation's a little high.
I'd really rather
work with people
who need it a little bit more,
not second raising and
all that kind of money.
This is just not a
business for me.
I'm out.
Thank you. Thank you.
I love the category.
I mean, I think it's been
due for a long, long time,
but I don't like your approach.
You try to hide the fact
that it's makeup a little bit.
I think you got to own it more
because that's the only way
you're gonna change
hearts and minds.
If you convince bro culture to
do it, you change everything.
I would take a completely
different approach.
You know, you guys
have made your choices,
so for those reasons, I'm out.
Thank you. Thanks.
I'm not gonna tell you
how to run your business.
I expect you to do
that on your own.
I'm just an investor.
When I see a
good idea, I like it.
I don't like your valuation.
I don't think you're worth
12 million bucks, okay?
Sorry. I just don't.
Oh, I think
there's a royalty coming.
Yeah, I think so, too.
- Sounds like it, yeah.
- There may be.
In fact, it's because I
understand your issue
around your capital needs.
If you're getting into
retail with CVS and others,
you're gonna get POs,
and it's tying up your capital.
The more you grow, the
more capital is tied up,
so the way I'm gonna
structure my offer
is I'm gonna give you
$300,000 as a factoring loan.
36 months, 11 1/2%, okay?
Oh.
The other $300,000
is equity for 2 1/2%,
and I'm putting a royalty on
it on per package of 2 bucks
until I get my $600,000
back 'cause you can afford it.
And then it drops down
to 25 cents in perpetuity,
which is nothing, but
I'm part of the game.
Kevin, I think you actually
hit a new low with this offer.
Well, if you have something
better, Robert, feel free.
Not only are you
being a loan shark,
you're also adding
a royalty to it.
Yeah. I think this
is the first time.
If you have... And equity!
Listen, it's an offer.
I don't hear any others.
What's your offer?
Three Sharks are out.
Jon and Devir have an
offer on the table from Kevin
for their makeup
brand for men, Stryx,
but Robert may
also be interested.
Not only are
you being a loan shark,
you're also adding
a royalty to it.
Yeah. I think this
is the first time.
If you have... And equity!
What's your offer?
Yeah, I think Kevin's
double dipping
on his offer with you guys.
Sounds like triple.
Or quadruple.
You've heard a lot of negatives
about what you could do better,
but the one thing we can't
argue with is the sales.
Yeah. Whatever you're
doing, it's working.
My advice would be
this isn't the direction.
The guy on this picture
is already buying makeup.
You've got to get
somebody like me,
and I think you could
do really, really well
and create a big business. Is
there an offer in all this verbiage?
I mean, we'll take
compliments, as well.
We take feedback
and compliments.
I think the scariest
thing about his offer is
when you have a
royalty in perpetuity,
who's gonna buy
that company? Right.
You got to do an equity deal.
I'll give you the $600,000...
for 10%. Ouch.
I think getting a Shark
can really help you
with the platform.
I think you're on to something.
What an interesting dilemma you have.
Robert, would we be able
to meet in the middle at 7 1/2%?
I want to stick to
the 10%. I'm in this.
I don't want to go
in for a short time.
I don't need a royalty.
I'm in it for the long run.
We're gonna build
something, and let's go for it.
Mr. Wonderful,
we really want to be
on the wedding platform of love
because the wedding story,
this is great for grooms
and groomsmen...
but, Robert, you got a deal.
Yeah! Alright.
Good job, guys.
I would never make fun
of you for wearing gel.
What's going on with that?
I wear so much gel.
Oh, that was a great job, guys.
Really, really good job.
Good job, guys. Congrats.
Thank you. Thank you.
You know, we really, like,
had reasons we wanted
each of the Sharks.
Robert's the most
handsome, though,
and he's gonna help
us show everybody
there's nothing
wrong with handsome.
Men on makeup,
it's like years ago,
when Botox was a taboo.
Now you mention it, and
nobody lifts an eyebrow.
One of the worst jokes.
In Season 10,
Kelsey Moreira pitched
her edible cookie-dough
company, Doughp,
and left without a
deal from a Shark.
It's not something
that is a healthy
enough option for me.
Let's see what she's up to now.
It was pretty crushing to leave
without a deal that
day, but I did take away
a little nugget of
advice from the Sharks.
I made a portion-controlled
product called Doughp Drops.
Doughp was created after I
made the amazing decision
to get sober.
I rediscovered my love of
baking and really who I was.
I pitched to the
Sharks to open up
a new brick-and-mortar
store in Las Vegas.
Though I didn't get
funding in the Tank,
I found some outside capital,
and I was able to
open up that store.
In 2019, I did $1.2
million in sales.
Then the pandemic hit,
and if you fast-forward to
2020, we did $2.7 million in sales.
And $2.5 million
of that was online,
so it made the
most sense to close
our brick-and-mortar
storefront to focus entirely online,
where our mission can
reach more people than ever.
We just rolled out at
Costco and Walmart,
and we are live at Harmons,
New Seasons, and Foxtrot.
Edible dough, and
you can bake it.
We recently aired
on QVC, and it went so well
that they're bringing
us back later this year
to show off our Doughp Drops.
You're going down a wrong path.
You go, "You know what?
I'm gonna return to
a passion of mine,
which is baking."
Way to go, woman.
My sales when I pitched to the
Sharks was around $800,000.
4 years later, our lifetime
sales are $9.4 million.
Now I'm happily married, and
I'm going on seven years sober.
And we started the
Doughp for Hope initiative.
Doughp for Hope has
donated more than $60,000,
working to break the
stigma around mental health
and addiction recovery.
I want to make sure that if
there's anybody out there
who is struggling,
reach out for help.
There is a lot of joy
waiting on the other side.
What we're doing at Doughp
for Hope and the messages
that I get from customers
are exactly what fuels me
to fight another day
and reach more people
and hope that we can change
more lives along the way.
Next up is a product
to make water sports
more comfortable.
Hey, Sharks. My name is Wes.
And I'm Greg.
We paddled up the
coast of California
to see if you
want to take a bite
out of our company...
Driftline.
We're here today
seeking $100,000
for 10% equity in our company.
Driftline is a revolutionary
water-sports apparel brand
based out of San Diego.
We're here to
solve a big problem.
See, a couple of years ago
during a dawn
patrol surf session,
it was that
transitional time of year
where the water was just
too warm for a full wetsuit
and too cold for your
traditional board shorts.
A net liner?
Do people even still
wear these things?
They're insanely uncomfortable
and don't provide any
warmth or protection.
There has to be a better way.
And that's why
we created Drifties.
Drifties are the premier
two-in-one board short
with a patent-pending
wetsuit liner
connected to a
stylish outer shell,
offering comfort, warmth,
and chafe protection
specifically designed
for water sports.
And we've all seen
that guy at the beach
doing the classic waddle
to avoid the excruciating
pain of chafing,
but with Drifties'
cloud-like wetsuit liner,
we solved that problem
while keeping you
warm and supported.
Drifties have been tested
by almost every
water-sport athlete out there.
They've also been tested
in the most extreme
conditions all over the globe.
And remember, you never
want to swim with sharks...
Without your Drifties.
Good job, guys.
So each of you has a pair
of Drifties in front of you.
It feels like a neoprene. Is it
a neoprene? That's what it is.
Neoprene is a rubber foam
that basically stores heat
and prevents that
initial cold shock
that you see guys get when
they first step in the water.
So basically, it's a wetsuit
married to board shorts.
Correct. We combined the two.
Hadn't really been
done before, actually.
Yeah, we actually have
applied for our utility patent on it,
and hopefully get it in
the next couple months.
Good for you guys. It
seems really smart to me.
I mean, I will tell you,
it's really great quality.
Tell us about your sales.
Currently, year to date,
we're actually at about
$125,000 in sales.
Last year, we did
about $100,000 in sales,
and we're projected on pace
to do about $200,000 this year.
How are you selling
these... direct to consumer,
do you put them
in specialty stores?
So right now, we're actually
99% direct to consumer.
Are you spending a lot of
money to get people to your site?
Actually, not really.
This past year,
we only really spent
about $10,000 in marketing.
What does it cost?
Sorry, you never told us.
So those retail for $89.
It costs $25 to
make, $33 landed.
I'm surprised. I mean,
that's not bad at all.
- Not bad at all.
- Because this is complicated.
Yeah, well, that's
why we went through
so many different manufacturers
and iterations to get the real
material and product we need.
And is your history
in manufacturing?
No, actually, I had a sales
marketing background.
I actually was taking night
classes for graphic design,
which is my full-time now,
and that's kind of
what spawned the idea.
When we had that legitimate
lightbulb moment on the beach,
I needed a project for
school, and I was like,
"Well, let's just, you know,
see if I can brand this."
That's great. That's great.
And by the end, we
actually had a business.
And you did it. What's
your background?
So I'm actually a
financial background,
and now I'm more in
tech and marketing sales.
It is a fantastic idea.
What I'm struggling with is
can you sell enough just shorts
to make a sustainable business?
That's part of where
we have this patent
that we're hopefully gonna get
in the next couple
of months here,
but really, what we're building
is not just for surfing.
We're also expanding
into water sports
that need specific iterations
on the actual product
specifically for that sport.
Give me an example
of that. So, for instance,
kayaking is
different from surfing,
and you can add
additional lengths
to the neoprene
and things like that.
So you can iterate under
the umbrella of the patent
specifically for
different water sports.
How much money will
you guys make this year?
We're pretty much
break even at this point
'cause we're putting
everything back into R&D,
and honestly, right now,
we have that funnel of people
that want to buy our product.
We just need to place
bigger purchase orders
to drive down the cost
and increase the margins.
Do you have the orders,
or do you think
you'll get orders
if you drive down the cost?
So we've already sold
out of SKUs and styles
for this upcoming season,
and the problem is
now people want them.
So you cannot keep up with
the orders at the moment.
No.
It's a very good innovation.
You know, I look
at million valuation.
I don't think that's that crazy,
but I just don't know
how big this market is.
That's the only reason I'm out.
I just don't feel
the scaling of it.
This is not for me. I'm out.
This is a really phenomenal
job you've done in the creativity,
putting the two things together,
but, you know,
I like to hit, like,
a broad, mass audience.
Love it, love you, but
because it's niche, I'm out.
I'm not sure about
the expansion,
like you were saying,
how easy that's gonna be,
but I do believe that
if you're in that world,
you buy a pair,
you're never gonna go
back to a regular... Right.
Board short again, right?
But there's two other Sharks
here that are in the space.
Mark, he's had rockstar numbers
with the paddleboard company,
and, Robert, you have...
Hamboards, Sand Cloud,
and Tipsy Elves
out of San Diego.
I think you need a collaboration
with somebody who can
bring you other people,
members and other people
marketing collectively.
You don't compete. You
complement each other.
So I don't think I can
add any value here.
I'm out. I appreciate it.
Hey, guys, congrats
on what you've accomplished.
It's super smart.
My problem is I don't
know if it can be big enough.
You know, you can be a $2
million, $3 million company,
but it's really
not a fit for me.
So for those reasons, I'm out.
Yeah, you know,
I'm definitely in this space,
but it's got to be enough...
Yeah... that it's
worth my time.
We know this space well.
We can really help
you with all that.
I just can't do it for 10%.
What can you do it for, Robert?
I'll actually give you
a little more money.
There's a term I love,
which is accelerate to fail,
meaning I think
you got to go faster
to find that breaking
point in the business.
Yeah. Let's not
do this for 10 years.
Let's accelerate.
I sense an offer coming
that's going to be very painful.
I'll give you a
$150,000, but I want 1/3.
Ouch.
I'm chafing. I'm chafing.
Oh.
I mean, I... we very
much appreciate that.
Would you bump that down to 15%?
No.
Okay. No, no.
There is only
one Shark that's in
because I think I
understand the complexity
and how hard this is. Yeah.
If you get the patent
if we get the patent...
We're gonna more than $150,000.
It's a whole nother... Scale.
Like at this point, though,
a little more money,
let's go faster.
Well, Greg and I... I mean...
You know, Wes,
I can't read lips,
so you don't have
to cover your mouth.
Yeah, that's fair. That's fair.
I mean, we definitely,
you know, love the work
that you've done in the space.
I mean, would you do
something down to 20%?
I mean, can we get you
to that number? No, no.
I just... I know
how much work it is.
I mean, I think the highest
we could probably go is 25%.
Robert, that's reasonable.
It is reasonable.
I'm offering you more
money. Let's not forget that.
And, you know, honestly, if
I'm worth 25%, I'm worth 33%.
That's a steal for you, Robert.
And that's what I
felt comfortable with.
That's my gut feel.
I'll give you $100,000 for 20%.
Wow.
But you got to
take it right now.
Say yes.
I think the highest we
can go for that is 15%.
Yeah, guys, I mean, think about
what's on the table right now.
I offered you $100,000 for 20%.
You only have 5% flexibility,
and you said you need us.
I mean, I guess you're
indecisive, so I'm out again.
What are you gonna do, Robert?
I think if you're
comfortable at 25%,
you're comfortable at 28%.
I'll come down from 33% to 28%.
What a head-squeezer.
Yeah.
I mean, we came here
kind of with numbers in mind,
so unfortunately, we're gonna
have to pass at that number.
You got to do what you gotta do.
Thank you, though. Thank you so
much. Thank you so much, Sharks.
Good luck, guys. Congrats.
Way to stick to your guns.
We just weren't
willing to give up 1/3
of what we've worked so hard at,
but at the end of the day,
we didn't feel like
his heart was in it.
And that's what we're in for,
so, you know, for that
reason, we were out.
Next in the Tank
is a functional accessory
for your furry pals.
Aww.
Hi, Sharks.
I'm Shannon from Austin, Texas,
and this is my dog, Rishi.
And I'm Griffin from
Oxnard, California,
and we're seeking $400,000
for 6% equity in our company.
Wow.
More and more, our dogs
are going everywhere with us...
In the car, on a
hike, to brunch,
even on our stand-up
paddleboards.
While our relationship with
dogs has completely modernized,
most dog products are
still clunky, inconvenient,
or something even your dog
would be embarrassed by.
The most important
thing that your dog needs,
besides pets and
cuddles, is water.
But who here has tried
the "make your hand
into a bowl" method?
It's messy, wastes water,
and doesn't work well.
Or you can pour the
contents of your water bottle
into a portable bowl...
and when your dog
doesn't drink at all,
you're left having
to throw it out.
And public water bowls
can infect your pup
with creepy bacteria.
And let's be honest,
we know you kiss
that mouth daily.
So we invented the
Springer travel bottle,
the best way to
give your dog water
anywhere at any time.
Come here, bud.
Simply squeeze the bottle.
The bowl will
fill up with water.
When your dog is done drinking,
release the bottle,
and the water goes
back into the bottle.
No mess, no fuss, and no wasting
water. - That's pretty cool.
This is just the first
of many innovative
products in the pipeline
that solve problems that
pet owners face every day.
So, Sharks, who's
ready to join our pack
and make Springer top
dog of the pet industry?
It's really a good idea.
If it falls sideways,
does it leak?
So there is a
leak-tight shut-off.
We have to tighten it?
So you twist it in the middle.
Okay, then it doesn't leak.
Yes, and then it's
completely leak-tight.
Wow.
Alright, so, listen,
tell us about you.
How did you come up with this?
Our dad is an inventor.
He invented the first
travel mug 35 years ago.
You guys are brother and sister?
Yes, my brother.
So Griffin and I actually
started our careers
as models for the company.
Oh, my
God! You're so cute.
That's great.
A few years ago,
I adopted Rishi.
I became part of the
demographic of crazy dog parents
that would do
anything for their dog
but whose problems
weren't being addressed,
and that's when
Springer was born.
So what am I
investing in? Springer.
So we created a new pet brand,
Springer, that
sells this bottle.
So this is your first product.
Yes. Right? Do you
have any patents?
Yes, we have eight patents
covering these products.
Eight? Eight.
Wow.
Utility, design in the
U. S. and internationally.
So when did
you start going to market,
and how were you selling it?
Our first year of
sales was in 2016,
and we did about $711,000
in revenue in the first year.
Wow.
For the next couple years,
we sold between about
$650,000 and $750,000 per year,
and in 2020, we got
$1.7 million in sales.
Wow. And how much
money did you make?
'Cause there's got
to be great margins.
Yeah, there are great margins.
Yeah. We made $100,000, and...
That's not great.
That's it? $100,000?
Yeah, so last year,
we decided it was gonna
be a growth year for us,
so we reinvested
a lot of our profit
into more IP, branding,
building out new innovations
that are coming later this year.
So tell us your margins.
What does it cost to
make one of these?
It is about $3 on average to
make one of these products.
Our margins on retail are 88%.
Our mini... the
mini sells for $22,
the medium size sells for $25,
and the growler sells for $28.
Those are great margins,
but where'd the money go?
The $6.4 million valuation
is a bit of a stretch for a
single-product company,
but actually, you're
just breaking even.
You're making
$100,000 on $1.7 million.
I'm calling that breaking even.
I'm looking for
$500,000 worth of costs
that I don't understand
where they are.
Something is eating up $500,000.
You got 88% gross margins.
Yeah, and something
else doesn't add up.
We had a lot of investment in IP
and brand protection because...
What was the total
expense of that?
For branding, it was
about $150,000, website.
Yeah, but you see how
all this doesn't add up,
'cause those expenses
are accrued over five years.
You know, so Well, a lot of it
went invested in the last year,
and those are one-time expenses.
And then we have a team,
so it's us, our parents.
We have two other
employees in-house.
What do you guys make?
We make about $70,000.
Look, I think the products
are really cool, right?
They're ingenious
in a lot of respects,
but what concerns me
is that you've been
selling it for five years.
I'm surprised it
hasn't done a lot more.
For those reasons, I'm out.
Who is the person that
came up with the brilliant idea
of only offering us 6%?
So to justify that,
we're on track this year
to sell $2 million,
and next year, we're
projected at $3.2 million.
We can give you the
money. Is that all you want?
We want your expertise.
We got to work, too,
for the money, right?
For 6%? Really?
- What expertise do you need?
Really? You want me to pay
and get a small return
and then work for you?
It doesn't make any
sense to me. We primarily...
It's not worth my time. I'm out.
Okay. Thank you.
I think it's a very
good product,
but I can't get past one thing.
And it might be my own bias,
and it might be my age.
But the thing I was taught
is when you start a business,
the first thing that gets
paid is the business.
And the last thing that
gets paid is the owner.
Yes, and that's why the...
And you're doing
it the opposite.
You're paying
yourself $70,000 a year.
I mean, you're starving
the business for cash
to make a living.
I don't want to be
part of that. I'm out.
Okay, so let me
take a stab at this, alright?
What I like about
this deal is sales.
I love cash flow. This
is a family business.
The only way I
would do this deal is
I want to stay out
of that soup, alright?
With a 6% ownership,
I have no say anyways.
This is a royalty deal. It
keeps everything aligned.
My interest to sell
more is very high,
so I'll give you the $400,000.
I want 3% equity,
as schmuck insurance, in
case the product gets sold
while I'm in my royalty
agreement with you. Okay.
And I want $3 a unit
until I get my $400,000 back,
and then I want half of
that, $1.50, in perpetuity.
I have lots of people
can blow this up digitally,
and I would do that 'cause
my interests are aligned.
And that's my offer.
Okay. Okay. Thank you.
Yeah, thank you for your offer.
We really appreciate your offer.
Thank you. I love this.
I think it is so smart
and so innovative,
and just, like, why would
you use anything else?
Yeah. I'm gonna
make you an offer.
I'm gonna give you
the 400K for 10%,
but I want preferred stock.
Which means I would
get distributions first
whenever there's
profits that are paid out.
Awesome. Okay.
Thank you for your offer.
Would you do it for 8%?
No, I got to stick at
10%, you guys, come on.
It's risky,
and I got to be excited
to get out of bed.
Lori, we'd be happy
to do that deal with you.
- Yay!
- You got a deal!
Yeah, Rishi!
Fluffy, bite her.
My first inventor family! Yay!
Whoo!
- We're so excited.
- So good.
I'm so happy to be
part of the family.
Bye, you.
See you, guys. Congratulations.
Well done.
Enjoy those products,
too. Thank you.
Whoo!
Now that we
have Lori on our team,
we're ready to blitz the market.
She was the ideal Shark for us.
We feel like she's already
part of our Springer family.
Whoo! Whoo! Yes!
Whoo! We made a deal!
Next up is a company
that combines two
loves into one product.
Hi, Sharks. My
name is Chase Terrell,
and I'm from Sand
Springs, Oklahoma.
My name's Chris Diede,
and I live in Austin, Texas.
This is my son and
my brother-in-law,
and I'm Jake Rutledge,
the inventor of...
The Chill-N-Reel!
Today, we're
fishing for $300,000
for a 10% stake in our company.
Wow. My dad has solved
one of the world's
biggest problems.
Hold my beer!
Chase, hold my beer!
I can't, man!
My hands are
full over here, too!
How am I supposed
to reel in this fish
and hold my beer
at the same time?
There's got to be a better way!
That's why I invented
the Chill-N-Reel,
the only drink insulator
you can fish with
and the only drink insulator
with a hand-line
reel on the side.
If you enjoy fishing,
you know how
much of a hassle it is
to pack all your
gear just to casually...
pitch out a line.
No way. Obviously, the
Chill-N-Reel was not made
to reel in a marlin.
However, what it was made for
is nothing short
of a real good time.
We have the Chill-N-Reel
designed to be
easily cast-able, reel-able,
and, of course, drinkable.
Just pitch it out,
grab your slack,
and tip it back and
start reeling them in cold.
We've caught bass, crappie,
and catfish on the Chill-N-Reel,
but today, we're
fishing for Sharks.
Who's gonna take a bite?
Nice, nice.
Where's the rod?
Like, how is the rod...
That is the rod.
There is no
rod. That's the rod?!
This is it.
Lori, with the fish you're
catching, this is good enough.
So this just is basically
for smaller fish.
You're not taking it
that serious, right?
So how much pound
test line is on here?
Eight-pound test is on there.
Eight pounds?
Actually, I have thrown
50-pound braid on there,
and I've caught
16-pound blue cat.
I caught a 3 1/2-foot
hammerhead shark.
Really?! Yes.
If you hold the line and try
to reel it, it'll cut your hand,
but if you sit here and
use this as your crank...
Is that
in Florida? Yes.
So tell us what's
happening there.
Well, I'm reeling
a fish in right now.
Where's the fish?
He's coming. He's coming.
Boy, that's a big
boy. That's a big boy.
Come on!
Where's the shark?!
I don't have my phone or
I'd pull it out and show you.
Wah-wah.
I hope they send it back, right?
Oh, yeah.
Let's be clear,
though, this is not...
It's not made for the big guys.
It's for those days
when you just want
to chill and reel.
It's fascinating.
I got to know, what happened
to you guys to invent this?
Okay, here's the story.
My family, we're on a family
vacation down in Florida,
and we're all out in the
water drinking a beer.
And I look down and
there's fish everywhere.
Well, I got to catch those fish,
and my buddies looked at me.
They said, "Man, you
bring a rod out here,
you are gonna upset
everybody out here."
I said, "Hey, watch this."
I didn't even have to
say, "Hold my beer."
I just went in, tied some line
onto the bottom of my koozie,
wrapped it around,
would come out,
pull all the string out,
throw it out, catch
a fish, reel it in.
I just kept spilling
my beer everywhere.
Did you catch
anything? Oh, yeah.
We were always catching fish.
Jake, what's your background?
I've been a Tulsa
firefighter for 21 years.
Good for you. Thank you.
So I have always wanted
to come up with something.
And never did you ever dream
you'd be fishing and drinking
and ending up on "Shark Tank."
That's it.
Why don't we
start with last year's sales
and now what you're
gonna do this year?
Well, I'll tell you,
the last 12 months,
we've done $1.34
million in sales.
- What?
- You got to be kidding me?
On this crap?
This little thing.
A lot of chill
anglers out there.
Was not expecting that answer.
Yeah. $1.3 million in a year?
That's right. In
the last 12 months.
So last year, up until June,
there had been $50,000 in sales,
and then from then on, we
finished the year at $680,000.
What about this year?
This year, we're at
about $760,000 so far.
Okay, and what do you think
you'll make this year? So far.
About $1.65 million. Damn!
So, guys, this thing is a total
little piece of crap selling a ton.
That's what I thought!
I thought the exact same thing
until I saw this...
That there was this
response that happened
from people who
just want to be out,
hang out on the
water, float the river.
What does it cost to make,
and what do you sell one for?
They sell for $12.95
for the solid colors,
$15 for the camos.
They cost us $2.06,
and we manufacture in Tulsa,
Oklahoma. All made in Oklahoma.
Did you throw a lot of
money on marketing?
We did. Okay.
Yes.
How much have you
spent in the last 12 months?
Spent about 40%.
So $400,000?
Yes. Little lower.
Around $400,000.
So... Wow. So take
out the advertising cost.
Yeah.
What's your net margin?
Last year, we made
a little over $70,000.
And how much have
you made this year?
This year, we are
negative $25,000.
We just placed an
order for 54,000.
So that's where your cash went.
Right.
We've got $350,000
worth of inventory
in our warehouse right now.
Look, the thing
is so ridiculous,
but I can't help but
respect the sales.
1.65 million bucks.
I mean, that's just...
But it's such a piece of crap.
Look, I wish you the best,
but I can't invest in this.
I'm out.
Oh, well, we hope
you'll reconsider.
It's fun for you guys.
It's not investable for me.
It's not really a company
for me, you know?
But I wish you good luck.
I love what you've done.
I'm out.
Thank you, Lori.
One thing I'd like
to add, though,
just so you're all aware,
we all think there's some
opportunities to license
the technology, as well,
which happens to be patented.
Reeling in on koozie?
The drink insulator that
you can fish with.
I want to be the patent
officer that saw that one.
Daymond.
What? What are you gonna do?
It's a great, fun business.
We're selling good times,
and people are buying.
People are buying. I don't
want to ruin your good time,
but as an investor, I'm not
gonna have as much fun.
Right? I didn't come up with it.
I'm not with you guys
every day running it.
I just don't think it's
for me, so I'm out.
Thank you. I'm
sorry to hear that.
Mark?
Look, guys, I've got two
fundamental problems.
One, there's just not
enough net margin to it, right?
You're spending 40%
on your advertising,
and so that's really
where you've got
to kind of make it better.
Right. But even if
you did a lot better,
there's not enough margin
left there for an investor,
so that's the first problem.
But the bigger problem is, as
somebody who lives in Texas,
if you can't hold your
beer no matter what,
you're doing it wrong.
So I'm out.
Look, I've been really thinking
'cause first, I was
completely out,
then I was completely in,
and one of you said it...
You're selling fun,
and people want fun.
We just had a year of COVID.
We were all locked up at home.
People want excitement and fun,
and you're really selling them,
for a very small price point,
you're selling them fun.
My issue is, you know,
there isn't enough
room in this deal.
Like, you guys are in a boat,
and the boat is staying afloat.
But if I come in,
it's gonna sink.
Or we're gonna get
a lot bigger of a boat.
Gonna need a bigger boat.
Where I think
we can really optimize
on that margin with the
marketing and advertising
is we've seen this
year as a branding year.
That's what's been
expensive, I think,
especially this first year.
That'll crunch in as
we get awareness.
Chris, I've made
crazier investments
and done really well.
I just don't know.
I mean, I love the fun.
I love the beer.
This deal is all
about royalties.
Oh!
Four Sharks are out,
and Robert is on the fence
about investing in Chill-N-Reel,
a fishing reel and
beverage koozie.
This deal is all
about royalties.
Oh!
What are you gonna do, Robert?
I will give you the $300,000.
I'll keep 10% as
equity, and I'll take $2...
- Ooh.
- Ay, Chihuahua.
Per reel.
I like it. My first royalty
deal. This is exciting.
Learn, grasshopper. Learn.
What do you think?
You have the margin to do it.
How long is the
royalty in place, Robert?
As long as we're having
a good time, Daymond.
So that's the difference
between Robert and Kevin.
He said it very nicely,
but that means perpetuity.
Cut the throat, man.
You guys can counter.
Uh...
I don't think we're
in for royalties.
Smart man.
If you wanted to go...
15% for $300,000...
we can do that.
You don't like the royalty,
but you don't mind the equity.
Right. Right.
I mean, the money...
Money's great, but
we're here for a partner.
Alright. $300,000.35%.
Ay, Chihuahua!
It's not a hard negotiation.
I'm taking a flier on you guys.
I think you've really
figured out something.
It may go somewhere.
I'm willing to risk
the $300,000,
and I've worked really
hard for $300,000.
You know, people always
sit up here and they think,
"Oh, it's just
money to you guys."
I remember the days
where I worked my ass off
for, you know, 10 bucks,
so it's a lot of money.
I believe in you guys.
That's my offer $300,000, 35%.
You want to take it?
I'm happy to go
along for the boat ride.
If not, we'll have
a beer together.
Would you go to 20%?
No, no.
Okay.
I appreciate the offer, but
we're gonna have to decline.
Way to stick to your guns, guys.
Thank you. Good job.
Cheers. Thank you, guys.
One, two, three.
I have no idea what
we're saying, but drink.
No idea.
- Thank you, guys.
- Thank you, guys.
Keep having fun
and making money.
Appreciate it. Thank you, guys.
Good luck, guys.
What were they thinking?
I don't know.
That's surprised me.
Everybody... They
thought it was fun.
Everybody in the U. S.
Is gonna think it was fun.
We didn't catch a Shark today,
but hey, there's lots
of sharks out there.
We'll go out
and catch one tomorrow...
With the Chill-N-Reel.
What a total piece of
and $1.6 million.
Like, that's just...
They were spending all that
money on advertising.
That was the problem.
That was a lot of money, a lot.
It was converting,
but it's a lot of money.
Kevin, I was so excited there.
I thought I had a royalty deal
for a second.
I wanted to know what it felt
like after all these years.
If you'd gone to a buck a reel,
he would have done the deal.
Buck a reel gets the deal.