Shark Tank (2009–…): Season 14, Episode 3 - Episode #14.3 - full transcript

Tonight, founder of
billion-dollar jewelry

phenomenon Kendra Scott
joins the Tank.

I'm a brand builder.
I want you to dream big,

and I think
I can help you get there.

- I only go big or I go home.
- Yeah!

Smash the competition!

Ohh!

I built this company
for $50 and a skateboard.

If something goes wrong at
all, you're out of business.

We just need expertise.
We've made so many mistakes.

It's a huge cash-suck.



I'm gonna make you an offer.

- Whoa!
- Oh!

Yes.
Thank you
for this opportunity

to swim with the Sharks.

First in the Tank
is a way to have holiday fun

without the stress and mess.

Hi. My name's Daryl
Braithwaite, a. k. a. "Big D."

I'm from the big "D" of Texas.

That's right... Dallas.

- Whoo-whoo!
- Alright.

I am seeking $300,000 for 10%
of my company.

Sharks, every Halloween,

millions of people gather
around the table to bond

over the joys
of carving jack-o'-lanterns.



But that quickly turns
into tears and frustration.

Why?
Because the most dreaded part

of the pumpkin-carving
experience is...

Oh, my goodness.

The sticky, slimy,
cold, wet mess!

You end up feeling like this.

Until now, Sharks.

Let me introduce you
to the game-changing solution...

The Pumpkin Glove Scraper!

Our super-long glove goes
all the way up past the elbow,

even on Big D's arms,

to eliminate you having
to experience

that sticky, slimy, cold,
wet mess that everyone hates.

And our powerful serrated
scraper attached to the
fingers

allows you
to thoroughly scoop out

every last string of that
disgusting orange guts,

all while keeping your hands
nice and clean...

And your arm also.

Sharks...

With two kid-friendly...

Sharks...

"With two kid-friendly."

Sharks...

Oh, garbage.
I apologize here.

That's okay.
You can start...

Whew!
Don't fall.

I'm not starting over!
We're doing this!

Um, with sizes
for kids and adults,

each kit comes
with an additional latex
glove,

two kid-friendly knives...

So when the scraping is done,
you can begin the fun.

Sharks, we believe it's all
about the experience.

It's time to clean out
the mess of pumpkin carving,

smash the competition...

Ohh!

With the Pumpkin Glove Scraper!

Now, that's a Texas-sized

presentation right there.
That's right.

- Big D, $300,000 for 10%?
- I can smell it.

$3 million scooper scraper.

I only go big or I go home.

Yeah. So you must have
some huge sales.

I've got some fantastic sales.
Well?

We just started,
actually, our business.

We finally just got our
shipment of product the end of
2021,

the last week of September
and the first week of October.

Wow. Just in
the nick of time.
Just in the nick of time.

But the problem is, is we were
hoping to get it a lot sooner.

But from the end of September
to December 31st,

we sold $58,000 in sales,
3,600...

Take a deep breath, Big D.

Thank you.
Catch your breath.

Big D's so excited and
passionate about this.

I just love it. So...
Okay, so, 58K in 2021.

Okay.
58K in 2021.

2022, this year,
we've done $52,000,

from January till now,

and 6,400 units.

Okay. So there's not much
growth there, is there?

Well, it's 'cause
it's not Halloween yet.

I'm impressed
that you're selling it

not in the Halloween
time period.

So, explain that to me.

We went to our
first trade show in Las Vegas,

and everybody kept coming up...

"You guys are the hit
of the show."

A big buying group
came over to us and said,

"Will you come in two weeks
to D. C.

To our big buyer presentation?

We'll guarantee you to be
in front of 60 stores to
pitch."

And I sold over 90%
of all those stores.

They're like, "Daryl,
this is amazing.

You're incredible.
You're a genius."

Nobody who is a genius dumps
that stuff on their head.

Hey, you never know what
you're getting with Big D.

Amen to that.

That's why you have sales now

for this fall's season.
Correct.

So, what does one kit cost?

One kit costs, if you buy it
in the retail stores, $9.99.

Online, we sell
from $12.99 to $15.99.

And what did it
cost you to make?

The adult/kid combo
cost me $1.78.
Wow.

How did you come up
with this idea?

This is my family.

We love Halloween moments
and traditions.

We love going
to the pumpkin patch.

Every single year, the kids go

and they get the biggest
pumpkin possible,

put it in the cart, boom.

We get home,
and they're all happy,
excited.

Dad starts cutting off
the top of the pumpkin.

Then they start going in.

Then all the kids
are like, "Ew, gross!"

My kids are running
around the house...

Yeah, you're doing
it yourself.
like crazy,
touching all the stuff.

My wife's freaking out.
The kids are crying.

This picture right here, okay?

This is my son, Parker.

This picture right here
is the absolute moment

that I had my "aha" moment.

It hit me like, "Oh, my gosh.
That's it."

Now, is this your full-time job?

It's not. So, my background
is in medical sales.

I've been bootstrapping
and working hard at night

and weekends.

But with medical sales,

I understood really quickly
that I needed,

when I got married,
to have a job to really help...

that helps pay the bills,
right? That helps pay the
bills.

You're asking
for a $3 million valuation.

How do I get my 300,000
pumpkin seeds back?

There is nothing on the market
that competes with this.

I have a patent
that was issued June 15th.

I actually filed it
on Halloween day in 2017.

You did?
On Halloween day.

I've got two more
utility patents pending.

My patent is a broad patent.

One of my partners
is a patent attorney,

so he's helped me button
up all the edges.

Oh, you have partners?

Yes, I have partners.

How many dollars have you
raised towards this?

And how much have you spent?

We have put about $850,000
into this.

Yeah. $850,000.
$850,000?

Yep.

All Sharks are still in,

but they are shocked
by the huge amount of money

Big D has invested

in his
pumpkin-carving accessory,

Pumpkin Glove Scraper.

We have put about $850,000
into this.

Yeah. $850,000.
$850,000?

Well, let me tell you why.

I've only put in about $20,000.

I have a partner that's funded
the rest of the money.

How much of the company
do you own?

I own 70%.

So, my second partner...
He's the financial backing.

He's like, "Daryl, I believe
in you. Let's go."

Well, we first started out
building our machine,

so I've got a machine
that I built to make this.

I can make 6,500 of them a day
over in China.

The problem is, COVID hit,

and they...
They made it so that,

"Hey, the only way we'll do this

is if you'll order
300,000 gloves."

That sounds like
a horror movie right there.

Yeah.

So, your thing to your guy was,

"Look, big money guy,

I'm gonna sell through
these quickly,

and the minute
I sell through them,

I'll give you your money back"?

Correct.
He put in another $300,000.

I'm gonna pay him back
a dollar a unit once

we start becoming profitable
'cause he wants to see...

- Kevin!
- Whoa!

Wait, wait, Big D,
did I hear a dollar a unit?

He's speaking your language.

Ding, ding, ding,
ding, ding, ding!

No, no, Mr. Wonderful.
No, no, no, no, no, no.
Whoa!

Whoa.
Because now I know

how the money guy's
getting his money back.

That's only on that $300,000.

Only if he can sell it.

You know, often in business,

the challenge is money
can highlight your weaknesses.

Sure.
Right?

And that's what
I call the power of broke.

You can make the same
mistakes with $10,000

as you can with $800,000, right?

And what puts small businesses
and startups out of business

is actually called over
-funding. They borrow too
much.

They buy 300,000 units
when they need 1,000 units.

I think this is
a prime example of that.

I'm out.

Thank you. Appreciate it.

You know, look,
I love this product.

I think it's very, very
innovative, super cool.

Thank you.
I am the Halloween queen.

We have carving contests
at our company, at my house.

I love this.

I think this is such a great...

I will be a consumer,

but your numbers
just aren't adding up to me.

I think you've taken on way
too much risk too early.

And for that reason,
I'm out.
Thank you.

Yeah, D,
that's your issue, right?

You're gonna learn,
like every startup does,

about their product,

but you're so bought in...

Yep. Yep.
right?
on inventory.

If something goes wrong at all,

you're out of business.

And so for those reasons,
I'm out.

Thank you. Appreciate it.

Big D...
Yes?

I wish you'd come in here
asking for

a lot less than 300K

because I love the idea.

You know, I could have got
behind it,

but 300K is serious dough.

Yeah.
I love you.

Thank you.
But 300K is too much.

I'm out.
Thank you.

Ohh, big D.

And then there was one.

Whoa.

Listen, I think
this is the best solution

I have ever seen...
Yeah!

For a Halloween pumpkin
carving product.

Halloween is
my favorite holiday...

Yes!
And, um, I think...

Don't let him down.

That there are
a lot of positives to this.

Thank you.
But there are
some big negatives.

Okay.
One is, you bought

way too much inventory
before you had sales.

That is something
that can really hang you.

And you don't know
how fast that'll go...

Yeah.
or if it's gonna take
a long time.

To come in for $300,000
for a 10% ask...

Just $300,000 alone, right?

Yeah. Well, that's why I need
your guys' expertise in this.

I cannot imagine
digging out of this hole.

And so, while I love it

and it's great innovation...
But...

I am so sorry.
I'm just trying to get...

- I am out.
- Ugh! Lori.

Thank you. Thank you, guys.
Appreciate it.

- Big D.
- Big D!

Good luck, Big D.
We'll see you, Big D.

You're amazing.
Be careful.

I'm sad because I truly
believe with the connections,

the mentorship from the Sharks,

this thing's ready
to just blow up.

And that's what I was
hoping today.

I didn't get it, but
I'm gonna continue to
persevere

like I always have.

When something...
You get knocked down,

you get back up,
and you continue to go.

But I truly believe this was
a fantastic opportunity.

In season 13,
we saw Emily Castro

and Melissa Harrington
make a deal with Lori Greiner

for their seafood
delivery service Fish Fixe.

I want 33.3%.

I don't want you
doing it for that.

I don't care what you want.

Yeah, I do.

I'll give you
the $200,000 for 25%.

You have a deal!
Boom!

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

Last year
when pitched the Sharks,

we had done $820,000 in sales,

but only $20,000 of that
was hitting our bottom line.

We had a major logistics issue.

We were shipping out of Texas,
and we were getting crushed

on our margins to the
East and West Coast customers.

Before we went on "Shark Tank,"

we started to
solve that problem,

and we identified
a logistics partner

that would help us get set up

on the East and West Coast,

but everything went south.

They had made promises

that they couldn't hold up
on their end.

We had over 400 canceled orders.

It was devastating.

Okay, what are we gonna do?

Lori and her team
really gave us great advice.

"Stay transparent
with your customers.

Find resolutions."

We spent every waking moment
behind a computer,

doing customer service.

We would just claw back and say,

"Please, just give us
an opportunity."

And then we had to
establish a new relationship

with another company that
would help us get back on
track.

Even with all of these problems,

we've now hit $1.1 million
in sales

since airing on "Shark Tank"
less than a year ago.

When you're honest
with your customers,

the loyalty grows even stronger.

Emily and Melissa
are the entrepreneurs

that I dream of because
they don't know the word "no"

and they do whatever it takes.

If they need to talk to me
or anyone or get anything
done,

they get it done.

When you're buying seafood,

you want a company
you can trust.

And that's what Fish Fixe is.

Our new campaign.

Do you love it?
I love it.

My advice
for a young entrepreneur

is to build a business
that's scalable

by putting the right systems
and people in place.

We are so excited for
where Fish Fixe is today.

We're finally back
in the kitchen making recipes.

We have the support
of an amazing team,

and we're finally able to
spend more time with our
families.

Next up is a reinvention

of an everyday workout
accessory.

Hi, Sharks. I'm Millie.
And I'm Taylor.

We're best friends living
in New York City,

and we're here
asking for $100,000

for 10% equity in our company.

Sharks, over the past few years,

our lives have changed
in so many ways,

from the way we work...

To the way we work out.

Our living rooms
have become our local gyms.

Our bedrooms have turned
into boot camps.

Our mat-based workouts

are no longer just
a yoga class to wind down.

We're doing sculpts, Pilates,
and strength training,

and our yoga mats... they're
just not supportive enough,

and they add no extra value.

Our exercising has evolved,

but our yoga mats haven't.

Well, roll over, yoga mats.

It's time for an upgrade.

Introducing Stakt!

A mat with a unique
foldable design

that unlocks a new level
of versatility for any
exercise.

When the Stakt mat
is fully unfolded,

it acts just like
a standard yoga mat,

except it's better
'cause it always lays flat

and it's twice as thick.

If you're in need of some
extra support, we got you.

Fold your Stakt mat
once or twice

and get that much-needed
extra cushion for your joints.

Or fold Stakt up entirely,

and it transforms into a block

that can be used
for tricep dips,

incline exercises,
such as planks or pushups,

lunges, and so much more.

Sharks, Stakt was born
out of a love for sweating

and the need for adaptation.

So, which of you wants
to give us stacks of money

and help us take over
the fitness industry

with Stakt?

Good job.

So, you each have a Stakt mat
in front of you.

It also comes with
a carrying strap

so you can easily take it
with you on the go.

Now, I'm in the gym
all the time.

Yeah, right!
Practically every day.

I've seen lots of...
Is that where you keep
your snacks... the gym?

Foldable mats,
lots of foldable mats.

What is unique about this?

So, when we think about
the foldable mat space,

there's sort of two kind
of mats out that, right?

So, there's the big
gymnastic mats

that are essentially
pieces of cushion

that are held together by vinyl.

And those mats are heavy.
They're expensive.

They're also not the right
material for yoga or sculpt.

You know, they're not grippy.

They're not nimble.
You can't take them...

What about the classic
rolled mat,

which you see so many people
carrying, you know, around?

Of course. Yeah.
Yeah.

Kind of why we created this.

So, to give you some background,

Taylor and I met about
10 years ago in college.

And we've been best friends.
We've been roommates.

And we've always been
into fitness,

but it wasn't really
till the pandemic

when we started working out
a lot more

for our mental health
and our well-being.

And we realized
we were using a yoga mat,

but neither of us
were necessarily doing yoga,

and half the time,
we were rolling up our mats

for extra support
or we were using a block

or something to really enhance
the workouts we were doing.

And so we found that there
was, you know, room in the
market

for not only
a more supportive mat,

but also a mat
to add that versatility.

And what's great about this
is it folds,

and it can really act
as a second piece of equipment

and really enhance
and modify the workout.

I'm curious to know the price,
like what it costs you

and then what you sell it for.

The mat itself in a box
with the strap costs us
$14.90.

It lands to us at $21.50,

and we sell it for $86.

$86.
Yeah.

- Mm-hmm.
- Good.

Everything is D-to-C
through our website,

and everything's been
through creating content

and really building a community.

Let's say it has merit, alright?

It has merit, for sure.

Show us sales.

So in the six and a half
months that we've been
selling,

we've done a little
over $110,000 in sales.

That's not bad.
And we haven't put any money
into marketing.

That's better.
So yeah.

I'm signing up for Pilates
now, alright?

And I don't have a mat,
and I go online.

What are the price points
I'm gonna be presented with.

Yes, let me take you through it.

So the yoga mat industry
is segmented by materials.

This is an EVA foam.
It's non-toxic. It's non
-porous.

We compete
in the premium segment, right?

We're competing with mats that
cost anywhere from $70 to
$130.

We're at $86, right on
the low to mid end of that.

There are mats... $30, $35...

That are made from
something called PVC.

It's a toxic material,

and it's something we really
haven't been highlighting.

This mat doubles
as a piece of equipment,
right?

That's what this was
born out of.

And your visuals are really
good for that, yeah.

Okay, and how much of your own
money is into this business?

We each put in a bit
over $25,000 from our savings.

Okay, what else do you do?
Is your full-time gig?

So right now,
we both have full-time jobs

just to fund the business.

So my background is in sales,
and I've worked at start-ups

for my entire career,

so I really experienced
firsthand...

What kind of start-ups?

All over the place...
Restaurants,

dentists, and doctors,

and most recently,
with experiential retail.

Alright, and Taylor?

So my background
professionally, I have worked
in product

for the last six years
on the fintech side.

What kind of product?

It's a portfolio risk
and analytics solution

for fixed-income debt.

You work in financial services?

I do, in fintech, yeah.

So Millie and Taylor,
I see the viability here,

but I really just don't know
much about this market.

And listen, there could be

a million other kind of mats
out there.

I made my career over T-shirts.

There's millions
and millions of T-shirts,

but I think there probably
would be more Sharks up here

that would be of
more value to you.

But I wish you luck.
I like it.

But unfortunately,
I don't think I can help you.

I'm out.
Thank you, Daymond.

Thank you for this opportunity.

So I invested in a company
called Bala.

They created an entire community

around high-end
fitness equipment.

But my concern
is competing with Bala.

I would be working
against myself,

so for those reasons, I'm out.

Thank you, Mark.
Thank you.

- Yeah.
- You know, look,

I love yoga.
I think this is a great idea.

I love the idea of
for your knees.

Unfortunately for me,
I have a mat and I've used

the same mat for two years.
I don't see this as a product

that I'm going to
continue to re-buy,

so you're always going to have
to be acquiring new customers.

I really don't see the
longevity of this being
something

that would work for me
to be involved.

So for that reason, I'm out.

Alright,
what are you doing, Lori?

What are you doing, Kevin?

I don't know.
This is a very difficult deal.

That best part of this deal
are you two.

Thank you.
Thank you.

But I'm sorry, this is not

a business for me.
I'm out.

Listen, I like this mat a lot.

I think is the best mat
I've ever seen,

and I've gone through
a lot of them.
Thank you.

This one's fantastic.

Thank you.
I'm going to make you
an offer.

Thank you.
Now, because you guys are
so, so newbie,

I'm going to give you $100,000,

but I'd like 15%,

but I would like
$1 back per unit sold

until I recoup my $100,000.

Oh.
We will blow this up.

I'm worth it.

We appreciate your offer.

Well, I guess while we're here,

be fair to the whole panel,

just want to see
if the conversation...

Listen, guys,
I see a little clock in my
head.

It's going, "Tick, tock."

Okay, Lori, do you mind
if Millie and I take a minute?

Take a minute.
Maybe 10 seconds.

Okay.

Okay.

Lori.
Yes.

Thank you
so much for your offer.

Our concern with the royalties
is that it's really gonna

siphon the growth
that we need right now

to kind of hit
with this momentum.

Would you be willing
to do $100,000 for 20%?

Oh. See, the reason
why I did that,

you guys have a lot of margin.

So really, a dollar, when
you're making like $50 apiece

or more, doesn't really...
It doesn't really hurt.

But if you really want me
in it to win it,

how about 25% equity,

which I'm not going to see
unless we sell this company

or unless we make
a lot of sales.

That's a $400,000
valuation, guys.

Yeah.

Wow.

Would you do...

$150,000 for 22.5%?

- Mm.
- No.

I mean, my plan is to blow out
so many of these,

we won't need it.
Stand your ground, guys.

That's the cheap valuation.

So, you have to decide.

She's removed the royalty.
Yeah.

Now...
You could go back to it.

You know... And that was at 15%.

That's right.

Okay.
We have another offer here.

Okay.
$100,000.

Yes.
15%.

Yes.
Give you a 35-cent royalty.

75 cents and you got it.

You have a deal.
Whoo!

Alright.

I like it.
Thank you, guys.

- Congrats.
- Thank you guys so much.

Lori's going to be
a great partner.

Can't wait to work together.

We're gonna blow it up.

Let's do this.

- Bye, buys.
- Congrats, guys.

Thank you.
Congrats.

We're so happy!

This means everything to us.

We are so excited to take
Stakt to the next level.

There is a royalty component
to the deal.

But it's okay.
Lori is so worth it.

Next in the Tank
is an ancient food

with modern health benefits.

Ba, ba, ba, baaa!

Hi, Sharks, how you doing?
My name's Kheedim Oh.

I'm the founder
of Mama O's Premium Kimchi,

based out of New York City.

And to the left of me
is a living legend,

my mom, Mama O.

Hi, Sharks.

Hi.

Along with my beautiful
and very pregnant wife, Amy,

who could not be here today,

we are the owner/operators
of Mama O's Premium Kimchi.

We are seeking $250,000
for a 10% equity stake.

So Sharks, everyone knows
kimchi is delicious,

but did you also know
it's super nutritious?

Kimchi is an Asian super food
from Korea.

It is naturally fermented
and is full of probiotics.

That's right.
Kimchi is health food,

but more importantly,
it tastes incredible,

and not just
with Korean food either.

Kimchi goes great
with hamburgers,

hot dogs, mac and cheese.
The list goes on.

What makes our kimchi the best
is our authentic

Korean mom recipe...

kept fresher than other brands

by our innovative packaging.

In addition, we invented

the first and most complete
homemade kimchi kit.

What used to take
over three hours,

now you can do
in less than 10 minutes

because all the grinding,
mixing, measuring,

juicing, chopping, and
shopping is already in the
jar,

just like my mom used to make,

and it comes out perfect
every time.

It's a lot easier
than you think.

So, Sharks, who's interested
in fermenting some money

while augmenting your tummy
with Mama O's Premium Kimchi?

Good job.
I love kimchi.

Daymond, if you wouldn't mind,

as a fellow New Yorker,
would you help Mama O

make some kimchi on stage
using our kit?

Absolutely.
It will be an honor.

Annyeonghaseyo.
Annyeonghaseyo.

Hi, Daymond.

Today, you're going to turn

this Mama O's Premium Kimchi kit

to Mama O's Premium Kimchi.

It's like sex education,
but spicier.

Please put on
these rubber gloves.

Thank you.
You normally need rubber
gloves

during sex education.

Or for kimchi.

You start with a head

of Napa cabbage,
called baechu in Korean.

Baechu.
Alright.

I've already cut one
and brined overnight.

Next, add one jar
of kimchi paste.

Scoop it out with your
fingers, as much as you can
take out.

Okay, that's enough.

That's it? Okay.
That's enough.

Now let's mix.

Just gently toss it.

Gently, tenderly, lovingly.

I'm getting turned on, Daymond.

That's it.
It's ready for fermentation.

It is? Okay.
But some of us enjoy
just-made-fresh kimchi

and eat it like salad.

- Oh!
- Aww, that's sweet.

Grandma.

Now we put it in the kimchi jar,

and it looks like this.

So what is this right here?

This is an air lock

that makes your kimchi breathe
while it's fermenting.

You're so amazing.
Thank you.

I feel so warm and fuzzy now.

Aww.

Daymond, first of all,
thank you.

Sharks, you have a sample
of what we're offering.

We have four different kimchis,

the kimchi paste,
and the kimchili hot sauce,

which I didn't even mention
in the pitch yet.

I thought it was only
just one type.

Actually, there are hundreds
of types of kimchi...
Okay.

But the one
that most people know

and familiar with
are Napa cabbage.

We have the original,
vegan version, a mild version...

Did you try the...
The spicy's... Whew.

I was about to warn you about
the super spicy, yeah.

That extra super spicy
is like whoa.

Oh.
It's really hot.

I want to know about you guys.

Like, how did you come up
with this idea?

I needed some kimchi for
myself. And I live in New
York.

My folks live in Maryland,
so it's too far

to go to Maryland and bum a jar.

So I would bring it back in
this exact cooler, our family
cooler.

And back then, I would wheel
it home on my skateboard.

Wow.
So I asked my mom

to teach me how to make it.

And then I was buying some
ribs, and the butcher's like,

"Oh, eat that with some kimchi
and rice, eating like a king."

So I said to him, "You know,
I sell this stuff." I didn't.

And he said,
"I want to start carrying it."

Now we are nationwide
through Whole Foods.

Whole Foods.
Wow.
We just got into...

How much does it cost to make
and how much do you sell it
for?

It costs us $2.65
to make a bag of kimchi,

and it retails
from $8.99 and up.

And the kimchi kit,
we make them for $8.25,

and we wholesale for $20.

So tell us about your sales.

Our top line sales
for last year was $815,000.

- Wow. That's good.
- Nice. Okay.
- Good job.

And what will sales be
this year?

This year we are
projecting $1,000,000.

And how much will you make?

25%.
Good for you.

And is the majority of
your sales right now

coming through Whole Foods
or is... or direct to
consumer?

We do almost zero online
sales. We have our own
website.

Really?
But that's...
that's not our focus.

But we also partner
with Williams-Sonoma.

Have you been in there
a long time?

Probably about eight years now.

So why aren't your sales higher?

I built this company for $50
and a skateboard.

So building it up,
I have zero outside investors.

I've done everything myself.

So let me re-ask the question,

because you've got
the distribution.

So what's holding you back
from being

a $2 million,
$3 million, $5 million
company?

Because I always thought the
way that businesses work

is you... you make money
in the business

and then you can
hire more people

instead of getting
any outside funding.

Well, you are making money.
I'm assuming you pay yourself?

Or is that part of the $250,000?

So I don't pay myself.

I've invested the money
back into the business.

Got it. Okay.
That makes more sense.

So first of all, you started
this with $50 and a
skateboard.

I'm a mom.
I have sons.

How does this
make you feel, Mama O,

to see your son build
something like this?

I am proud of him.
But more than anything,

I am thankful
that he is an honest,

hard-working entrepreneur
who is passionate about
kimchi.

He single-handedly
runs the kimchi business.

Now, two years ago,
he met Amy and got married.

They're expecting
their first baby next month.

And Amy has lots of experience
in food business.

She quit her well-paying job
and joined our company.

So now we are a dream team
at the cusp of fantastic
growth.

So with your backing,
the sky's the limit.

- Oh, I love that so much.
- That's really beautiful.

You can't bring Mom like...
That's un... That's unfair.

You have $1 million in sales.

You know, I look at it
and say to myself,

"You have to educate people
about what this is."

And I think over time, as
people become much more
concerned

about healthy foods,

this is gonna fit
in that category.
Yeah.

The hardest job
of this is actually

getting people to try it.

It's not for me, guys.
I'm sorry. I'm out.

You guys, one of the hardest
things an entrepreneur has to
do

is determine when to add
their first employee,

because you have to give up
a little bit of control

when you try to go
for growth like that.

But after eight or nine years,

there had to have been an
opportunity for you to do
this.

I just don't think
you're gonna be confident,

and I think it's gonna
be hard for an investor

to work with you,
so for those reasons, I'm out.

As much as I love you both

and as much as I love kimchi,

and I think it's really spot
on for the future,

it's just not investable for me.

And I'm sorry.
I'm out.

Thank you.

Your story was so inspiring.

And, Mama O, you are
one of a kind, truly.

But if I'm gonna invest
in something,

I got to be able to,
like, really stand behind it

and sell it,
and I'm not a kimchi person.

For that reason,
I just can't invest that
amount.

Daymond, you're the last Shark.

Tough one, because I...

You've sold a good amount
over the years,

but why do you feel
that you're ready to change

the way you've been operating
with your family?

Mm-hmm.
Why is this the time?

We're... We're expecting a
baby next month,

so that's another mouth to feed.

Uh...

Sharks, please,
if I may say something.

Mama O's Kimchi Company

needs money for capital
investment and expanding.

That's why you came to
"Shark Tank," Mama O.
That's right.

But not only money,
but your expertise,

your direction,
your guidance, your support.

I would like to have someone
to come in and teach us

and then lead us
to that big market.

That's why we are here.

Well, I'm on the fence.

And I think it's really
because of Mama O.

She's...
She's definitely just amazing.

I'm gonna have to trust,
I think, my gut.

I'm not obsessed
with the product.

I'm just obsessed
with the culture...

You and Mama O, and I...

I hope I don't regret it.
No, you know what?

I hope I do regret it,
but unfortunately, I'm out.

Good luck, guys.

Thank you for this opportunity
to swim with the Sharks.

- Good luck.
- Congrats.

Do I think the Sharks
made a mistake today?

Absolutely.

Well, the important thing

is that we stay healthy
and love each other.

100%.
That's the most
important thing.

Next up is a tool to help you

become king or queen
of your own castle.

Hello, Sharks.
My name is Kevin Lane.

And I'm Laurie Lane from
New Milford, Connecticut.

We are seeking $350,000
for 10% equity in our company,

Create A Castle.

Everybody loves to vacation
at the beach.

I know that I could lay in the
sun for hours with our
daughter.

Our son would stay in the
water all day if we let him.

And if you're anything
like my husband here,

you like to spend hours
and hours

and hours ignoring his family,

building the most elaborate
sand castles.

But it's impossible
to build a real sand castle

using the traditional
fill-and-flip buckets.

The wet sand sticks
in the bucket.

Even at its best,
it just looks...

Boring.

That's why we invented
Create A Castle,

revolutionary split-mold
sand castle kits

that allow you to build
elaborate sand structures

in no time at all.

Just buckle it,
pack it, unbuckle it

and, well, create a castle.

Our pro kit includes a 10-inch
cylinder for the base.

A corbel to add a new
level of intricacy.

A stackable 6-inch piece
for additional height.

A ridge battlement brick form
to add to the towers.

And a window cutter to edge
out elegant windows.

Then sit back, relax,
and enjoy the admiration

of everyone on the beach.

So, Sharks, who wants to
create an empire with us

bringing families together
one castle at a time with...

Create A Castle?

I have six kids.

I'm a mom and bonus mom
to six kids, okay?

Alright.
That's awesome.
Awesome.

So we spend a lot of time
on the beach, and I love this.

Is there anything
like this out there?

I feel like
I've seen something similar.

Nothing like this.
We're unique

in the fact that we split...
So the molds split in half,

but they also are stackable
on the right kind of sand.

You built that entire castle?

Yeah.
How long did that take?

That took me under two hours.

Wow.

I see a patent.

Do you want to
tell us about that?

Yeah, so go ahead.
We have...

Yeah, we have
12 patents worldwide.

- 12?
- 12?

- Wow.
- 12.

Does your patent...
You believe that protects you

against anybody who wants to
start splitting their toys
open?

We have...
We have broad coverage.

It scales up and down.
That's why we're going down

into the indoor line now
as well.

Alright, guys, look, this is
a very, very seasonal product.

It works in the snow.

- Oh.
- Wow.

Thank you,
Mr. Wonderful.
Perfect.

So, yeah, so it does...
It works year round.

We figured that out
the first year we did it.

And you can stack like crazy.

It's like Elsa's castle
in the winter.

That's it.
We've built it.

See?

I was about to say,
who wants a castle in a
winter?

But Elsa, yeah.
Elsa.

So, guys,
what are the price ranges?

What's the least
and what's the most?

So, we go the tool kit
that we have there,

the small box, that's $10,

and then the pro kit
retails for $50.

What's your landed cost
on those?

The little one is landed at $2.

The pro kit,
that costs us $9.45.

So what did you sell last year?

You're imputing a value
of $3.5 million on this.

Last year, we did $600,000.

And then this year,
we are doing $3 million.

- Whoa!
- $3 million?!

- Wait a minute.
- Whoa!

- How did that just happen?
- Are you kidding me?

What happened?

We landed Costco Canada
as well as Sam's Club.

And Sam's Club.

On the $600,000
in sales last year,

what did you make on that?

We were actually
negative $100,000.

We lost money last year.
Why?

And that was really due
to the shipping costs

were like 5X
what we had budgeted.

Because of COVID.

Yeah. Like, we used to
get a container in for,

you know, $4,000 to $6,000,

and, you know, a couple of
our containers last year

were $25,000.
- Right.

And the $3 million in sales,

including the Costco
and Sam's Club order,

what do you think
you'll make on that?

This year, we're gonna make
about $300,000.

What is your margin
to Costco then?

The margin we made,
about 27% to 32% margins.

So that's part of
your challenge, yeah.

It was definitely a lot less,
yeah.

Okay. What are you
looking for help for?

'Cause right now, it looks
like you are scaling really
well.

I understand
you need to reduce costs,

but what else
are you looking for?

I think mostly we need,
you know, with the capital

that we're asking for,
to invest into more product.

And we just need expertise.
We've made so many mistakes.

And we're expanding
into a whole...

We want to open up
a whole licensing version.

A what?
A licensing version.

- Did you say "Daymond"?
- Ohh.

You're looking for $350,000.

I'm gonna assume
that's primarily for
inventory. Yes.

And you're trying to figure
out the Costco order

translating into
a US Costco order, correct?

'Cause a lot of people
test up in Canada.

Are you sure?
Yeah, not necessarily.

Are you sure that you can
make money off of that order?

Yeah.
Not necessarily.

I mean, we've learned a lot
getting into the big-box
stores.

Are you going to make
money on the Costco order?

'Cause they're gonna ask you

for some co-op advertising
as well.

Right. For...
That and markdowns.

Yeah. Yeah.
You know, we know...

And they have the right
to return the last 15% of it?

Yes. So...
Okay, so we've all...

Sounds like you've had
returns and markdowns.

Yes. Yes.
We've been experiencing that.
Yep.

And that's that's impacted
your 27% margins even worse.

Yes.

Yeah, guys, I think there's
too much of an emphasis

on sales rather than profits.

Every entrepreneur gets really
hype about doing business

with big-box retailers.

But the reality is
it's just gonna

take more and more cash,
like you found out.

And so, you know, chasing
margin and profits is good.

Chasing sales, in my mind,

particularly in these
uncertain days, is bad.

And so for those reasons,
I'm out.

Okay.
Guys, guys,
let me tell you where I'm at.

I'm looking at
the business model

strictly... strictly
as an investment.

Anytime it's $350,000,
that's serious capital.

I'm not even gonna beat you up
on the $3.5 million valuation,

although I should.

It's in my DNA to do that.

But I'm gonna hold back

'cause I'm under
anger management this year.

So at the end of the day,
it's not investable yet

because the business model
isn't nailed down.

My sense is to dump
the low-end completely,

raise the prices 30%,

sell only on
your own website direct.

Otherwise you're never
gonna make any money.

I'm out.

Okay. Thank you.
Thank you.

Listen, I-I don't
agree with what he just said.

Your price point,
I think, is excellent.

And I have always found I like
to make products for the
masses.

I like to make things
where everybody can afford

and enjoy it.
But I think for me,

it's not something
that I want to invest in.

I don't invest in
everything that I like.

You're doing everything right,
and I wish you good luck,

but I'm out.

I absolutely love
this product.
Thank you.

It brings me joy.
And I love your price point.

And I actually totally
disagree with Kevin.

I think you want a balance
of wholesale and retail.

Now, coming from
a retailer myself

who sells in omni-channel...
I sell wholesale,

I sell direct to consumer
online,

and I have my own
retail stores...

I think you can do it
very thoughtfully.

Now, some of
the discount retailers,

I will agree with Kevin,
can absolutely kill you.

So be thoughtful
about where you go.

But I think
you've got a home run.

I'm going to give you an offer.

I'm gonna give you
your $350,000,

but I don't think
your valuation's $3.5 million.

Okay.
You lost $100,000 last year.

So I don't see
the $3.5 million.

But I do see that
there's going to be

great potential and opportunity.

I'd like to give you
$350,000 for 20%,

and I think I can help you
with that omni-channel,

which I do think is gonna
help you build the business

the way you want to build it.

Okay.
Awesome.

Wait, wait, wait, wait.
Hold on.

Three Sharks are out.

Kendra has made an offer
of $350,000 for a 20% stake

in Kevin and Laurie's
sand castle toy,

Create A Castle.

I think I can help you
with that omni-channel,

which I do think is gonna
help you build the business

the way you want to build it.

Wait, wait, wait, wait.
Hold on.

I like this,
but Mark has a valid point.

You know, this is gonna be
your personal decision, right?

Do you raise the price,
stay online,

and, you know, net more,

or do you want to go big?

Do you bring in a Shark
and you go big?

But if you go big,
it's a huge cash-suck.

Massive.

So I'm only interested in this
for the licensing aspect.

That's a personal decision,
but I will give you

the $350,000 for 25%.

And licensing is the key.
Okay.
Awesome. Thank you.

You know, look,
I disagree with Daymond.

I don't think this is
just a licensing play.

And I don't see why
you guys can't be

the next big toy manufacturer.

So that's what I want to do.

I want you to dream big,

and I think I can
help you get there.

By the way,
when I say dream big,

I'm talking about big.

So... What do you want to do?

Would you guys ever work
together with the licensing?

I would love to work with her,
but in this area,

I'm the most successful
licensing guy up here.

That's my area.

And I'm a brand builder.
I built my own brand,

right, from the ground up
out of my extra bedroom.

So I'm gonna
interpret that for you.

They said, no, they don't
want to work together.

What do you want to do?

You can counter.

You want to counter?
Yeah.

Would you be interested at 15%?

I'd like to stay at 20%.
Okay.

I'm gonna let you make the call.

She makes the decisions.

What do you think?
Do you want to do the license,

or do you want to do...
Build the brand?

It's up to you.

I respect both of you...
All of you guys anyways.

Absolutely.

But I think we're gonna go
with Kendra at the 20%.

- Whoo!
- Congrats.

I'm sorry, Daymond.

Let's make some
sand castles together.

Oh, bad choice.

- So exciting. So exciting.
- Thank you.

Yay! Oh, my God.

- Let's go!
- Congrats, guys. Well done.

Thank you. Thank you, guys.
Thank you.

Sorry, Daymond.
Thank you so much.

One of the reasons we went
with Kendra is,

from the get-go,
when we walked in there,

she was so excited
about the products

and totally was invested in us

and, you know, talked about
the beach and her kids.

So we knew she would be
the perfect fit for us.

- I love this product.
- It's very cute.

I love it, and I'm gonna
use it with my kids.

That's a massively...

- Don't do it.
- Ohhh.

That's a bad deal.

Oh, you know, I mean,
I just... I just think...

I think they're
a bad judge of character.

I'm gonna go try
to build it back up.

Ohh.
Go ahead. We'll wait.