Shark Tank (2009–…): Season 14, Episode 5 - Episode #14.5 - full transcript

Tonight, Emma Grede,
founder and CEO of

smash-hit apparel brand
Good American

and founding partner of SKIMS,
returns to the Tank.

God, you are speaking
my language 100%.

We want to service an audience

that has been overlooked
for years.

You're allowed to make a...

Mess! Mess! Mess!

The Plufl allow you to turn
any place into a napping space.

I was awarded one of
Oprah's Favorite Things.

Are you making any money?



No, I have lost a
fortune this year.

We have sales of $2 million.

$2 million?

$2 million.

We put it on TikTok,
and it went viral.

I just don't get it. Why
are people buying these?

Why not? Oh, I like it.

Please!

It broke my heart, what
you did. I wept like a baby.

Let's go, team!

We're energetic. We're
fun. This is our moment.

Let's go!

Let's go. Let's do
it. I'm so excited.

First in the Tank



is a way to get just as cozy
as the world's best nappers.

Hi, Sharks. My name is Noah.

And my name is Yuki.

We're recent college grads,
and we're here seeking $200,000

in exchange for 10%
of our company, Plufl.

Sharks, we all
have those long days

when we crave a cozy nap

to get away from the
troubles of the world.

When you just need a break
from the stress and exhaustion,

you could quite
literally sleep anywhere.

I mean, look at our buddy
Kipper over here.

Sharks, don't you find
yourself jealous of Kipper?

Able to nap literally
wherever he wants.

Don't you ever wish you
could have what Kipper has?

Well, now you can.

Introducing...

Plufl!

It's a dog bed for humans!

That's right, Sharks. I
didn't see that coming.

Plufl is the world's
first dog bed

specifically
designed for humans.

Because if you work like a
dog, why not sleep like one?

When you sink into the Plufl,

you're surrounded by the
softest materials and textures.

The soft pillow
border allows you to

tuck your hands and feet inside

and maximize what we like
to call "the snuggle factor"!

The plush faux fur

and high-grade
orthopedic memory foam

allow you to turn any
place into a napping space.

Doesn't he look cozy? I
wouldn't want to wake him up.

Sharks, we want to
bring this revolutionary

napping experience everywhere.

So don't sleep
on this opportunity

to join us in building
a napping empire.

Alright, so who wants
to try out the Plufl?

I do. I'll do it.

Yeah, I want to touch it.

Robert, we figured
you would really want to try it out.

I definitely want to try it!

Come on, anyone, give it a go.

Alright.

You're such a Robert. Ohh.

Robert,
would you like a blanket?

Yes, I would like a blanket.

Mark, here, lay in this one.

Ahh.

Robert,
try curling up a little bit,

like a little baby.

Shockingly, it's
really comfortable.

Mark, give it a go.

Ohh. I wanna see if I can fit.

Pull right up. You
can put your legs out.

Yeah, kind of lean
your arms on it.

Kind of relax. Lounge
a little bit, yeah.

It's actually not bad.

It's not bad.

Oh, yeah, Robert.

Wow. How much is it?

It's $399. We're currently
taking pre-orders at $399.

$399?

Yeah, $399. Oh. Okay.

What does it cost you to make?

Our landed cost is $140.

Oh, wow.

And you must have sales.

Yes, we do.

Three months ago, we
launched on Kickstarter.

Our initial goal was $25,000.
We blew it out of the water.

We had $280,000 in 30 days. Wow.

And we've done over
$130,000 in sales since.

And how much of that
have you delivered?

We've just started the
manufacturing process.

With that being none.

So, throughout our
prototyping process,

we've tested our versions with
about 50 different beta testers,

and they all
absolutely loved it.

Well, I'm curious...
Did you used to lay in,

like, a really big, oversize dog
bed or something?

Yeah, so, throughout
my time at school,

I worked as a barista at a
local college coffee shop

where there lived
a Great Dane. Oh.

And so, one day,

during a long shift, I
was looking at this dog

napping really
comfortably in its bed,

and I found myself
kind of jealous.

Like, "Man, why can't
that be me right now?"

And then I had an idea...

Dog beds for humans.

Ta-da!

I was all over
Google, trying to see

if a product like this
existed, but I found nothing.

So I was calling up
Yuki, a good friend,

telling him about the
concept, and he loved it.

So we partnered with a
local designer in Vancouver

to build our first prototype,

and it turned out so
awesome that we had people

lined up all over our
campus just to try it out.

I... I just don't get it.

Like, why are
people buying these?

Like, what... Who's
your customer?

Why not? Why do you need it?

Oh, I like it. I like it.

Really? I don't get it.

Your kids... Oh,
come on. Your kids?

My 8-year-old would
probably love it. Yes.

But, like, do I want a
dog bed in my living room?

Yes!

So we started out just
creating a fun product

that would bring joy and
comfort to people's lives,

but we realized we're building
something bigger than that

when we put it on
TikTok and it went viral,

and we started getting flooded
with messages from people

sharing just how excited
they were for this product.

We spoke with mothers of
children with sensory issues,

veterans with physical
trauma... - Oh, yeah.

People that suffer from
a range of sleep issues

that just need a more
comfortable place to rest.

But you've never
delivered these.

It's only been three
months since we graduated.

When do you anticipate
being able to deliver?

Because you've got no real
customers at the moment,

which means you've
got no real reviews.

Like, that, to me,
is just a big red flag.

Yeah, we expect to deliver
around late November

to early December.

And when did you
take the orders?

We took orders back
starting from April.

I mean, that's some
pre-order period.

We're talking,
what, seven months?

- That's right. Yeah.
- Mm-hmm.

Why has it taken you so
long to get them delivered?

That's a long time for
just 1,200 units. Exactly.

Well, but you have to have
your production time, right?

I mean, I don't know how long
it takes to make one of these.

How long
does it take to make one?

Yeah, so the 1,200 units takes about 2
months to make and 2 months to ship out.

So we're looking at ways
to reduce our lead time,

but this is our first go at it.

Okay, guys, look, I
think it's a crazy idea.

That's why I like it.

However, you are
unproven, untested.

There's $200,000 for
10%, imputes to $2 million.

It's not worth $2
million right now,

so I'll do it for $200,000
cash-a-roni for 30%.

Wow, that's way
better than I thought.

You know, out of
him, that's not so bad.

Mark, remember our Hug Sleep?

Yeah. Yeah. It's killing it.

So, like, Mark and I did a deal
with Hug Sleep. Yeah, yeah.

It was almost like a
sleeping bag, but not.

Yeah, mm-hmm.

Stretchy fabric that wraps...

I literally use it every night.

I know you do.

I sleep so much
better in my Hug Sleep.

Yes, it makes you sleep better.

Yeah. It's like being swaddled
as an adult. And we know.

We know. We're at $15
million in sales in two years.

I mean, we love... Hug
Sleep's a huge inspiration for us,

and a lot of their
kind of story about

helping people with anxiety
just find more comfort.

Without question,
yeah. Without question.

Their messaging about, like,
why don't adults need hugs, too?

That's kind of what we're
trying to embrace here.

Like, adults need comfort.
They need to be cozy.

So, Lori, are you saying we should work together
on this? So, guys, can anyone knock you off?

Do you have a patent? Is
there any kind of protection?

So, right now, we're the first
to market with this product.

We filed for our
provisional patent,

and are currently working
on utility and design patents.

We've also filed for the
trademark for our name

as well as for the phrase
"the dog bed for humans."

Yeah, I don't, I...

It's a dog bed for humans.

I don't see it. It's
not for me. I'm out.

Thank you, Robert. We
appreciate the feedback.

One thing we just
want to touch on is that

this is more than
just a large dog bed.

We actually changed
a lot of the components.

For one thing, we swapped
out the conventional pillow base

for more supportive orthopedic
and memory foam pads

so people can
actually feel supported.

It's a dog bed for humans.

Listen, I'm going to
just, like, get out of the way here.

But I just... I do
not understand it.

Like, I don't understand
who is buying this product,

and so I'm out.

- Yeah. Thank you for the feedback.
- A little bit of skepticism here.

Guys, we want to... we
want to make an offer.

We think it's a great
complement to Hug Sleep,

so there's all kinds of
ways we can help sell it.

So, we'd like to make you
the offer of the $200,000

you asked for, for 20%.

The two of us together.
The two of us together.

Um...

Thank you for that offer.

Noah and I will
take a little bit of time

just to talk about it.

Seriously, there's
something to talk about?

Would you guys be open
to $200,000 for 15%?

No.

It's a dog bed!

It's got to be enough in there
for both of us to get excited.

And we have
experience with this.

Kevin, do you
want to change your offer?

Alright, we've got a deal.

Kevin, it just went away
from you, just like that.

Okay, $200,000 for 40%.

- Congratulations.
- Thank you so much.

- Yeah.
- Thank you.

- Great stuff, guys.
- Thank you, guys.

Thank you so much, guys.

Well done, guys.

It's a dog bed for humans!

Exactly. Exactly.

What are you gonna do with that?

I'm gonna take a nap.

We're in the sleep business.

Noah and I just
graduated about three months ago,

and the fact that we're here
right now on "Shark Tank"

and got a deal from
Mark and Lori? Yeah.

It's... It's crazy. I
really can't believe it.

And that's a
testament to the fact

that if anyone cares
about something

and dedicates their time
and effort, they can do it.

Mwah.

Next up is a company
who wants to make everyone

in the wedding party
feel as pretty as the bride.

Hi, I'm Ashley. And I'm Charles.

We're from Washington, D. C.,

and we're seeking $250,000
for 10% equity in our company,

Bridal Babes, the first
bridal fashion company

for multi-cultural women
and women with curves.

We are changing the
bridal fashion game

with curve-hugging and
attractive bridesmaid dresses.

Yes, they do exist, and
I'm wearing one today.

Whoo!

When we were getting married,

I remember Ashley
mentioning how difficult it was

to find the perfect
dresses for bridesmaids.

My bridesmaids dress
shopping experience

at traditional bridal
shops was horrible.

I ended up searching
the Internet high and low,

and finally found
something that would work,

and when my girls put it
on, they instantly fell in love.

And the wedding went viral
because no one had ever seen

bridesmaids in such
stunning looks before.

That's when we knew that
we were on to something.

We went from high
school sweethearts

to newlyweds and
business partners overnight.

Aww.

Bridal Babes offers
gowns in inclusive sizing,

which we pride ourselves on,

and a wide range of shades
that really pop on all skin tones.

Brides and bridesmaids
can also shop

from the comfort of their home

through our live
virtual consultations

and our thriving social
media community.

So, Sharks, now that you know
a little bit about Bridal Babes,

who's ready to get...

Hitched? Hitched?

- Wow. So good.
- Great job.

Great job, guys.

That's a beautiful dress.

Ashley, what do they cost...
They're beautiful, first of all.

- Thank you.
- Absolutely.

What do they cost?
Give us an average.

We have two collections.

Our Classic Collection
averages $13.31,

and we price them at $44.05.

Wow. That's
amazingly affordable.

Sorry, how much? You
sell Ashley's dress...

Well, not... That's
the Luxe Collection.

This is the Luxe Collection.

Okay, how much
would Ashley's dress be?

$67 landed, and we'll sell it
for about $228 on average.

Hang on. That dress is $200?

It's amazing. Isn't that
really expensive for a bridal dress?

No. So, it's actually not.

- It's not?
- Not at all.

But we do offer
an affordable line

as well as a more high-end line.

And our goal really is to
provide as much diversity

in the product type,
because we want to service

an audience that has
been overlooked for years.

I mean, guys, you are speaking
my language 100% and entirely.

Like, the whole inclusive thing
is a huge gap in the market.

I really just want to
understand, for you guys,

like, what is inclusive?

Like, what are you
actually selling? What sizes?

Inclusive sizing is
sizes 2 through 26,

which are actually ready
to ship. That's inclusive.

We also have a special-order
collection in sizes 26 to 32.

The greatest challenge
for every business

that services weddings
is customer acquisition.

How are you getting
your customer?

So our core platform
we're on is Instagram.

Our Instagram community
is about 90,000 followers,

and we have about
60,000 on TikTok,

which has just
grown tremendously.

We are a community.
We talk to our customers.

We post three to
four times a day.

But the secret sauce to
getting those customers

is the fabric you all have.

Okay, so is it this one?

This is what actually
changed our business model.

How can a fabric be...

So, when we put
these dresses out,

they went viral because
people were like,

"Oh, my gosh,
this looks like satin,

but I see these
curvy women in it."

It's insane. Which, typically...

Yeah, you're right.
Curvy women cannot wear satin.

Help me understand.

I mean, Emma and
Lori right away went,

"Ooh, this is great."

And I'm sitting here
going, "Why is this great?"

The key is really the
stretch in the fabric.

It's so stretchy.
It can go in bags.

So it drapes your curves.
It drapes your curves.

But this also really helps
you with returns, right?

Yes, absolutely.

Because if you've
got a fabric like this,

with this crazy
amount of stretch in it,

you're not getting the
same returns... Exactly.

As with a rigid fabric.

Tell us about sales.

We have lifetime
sales of $2 million.

$2 million?

Wow. Yes, $2 million.

Wow! But I also want to
talk to you about our growth.

So year to date,
we're at $850,000.

In year one, we were at $30,000.

Which year was that,
too? What year was that?

2019. In year two,
we were at $200,000.

So it was a nice jump, but
we were almost five times that

in year three, with $950,000.

Now, we were a little shy
of our goal of $1 million,

but we're projected to be
there this year, at $1.2 million.

- Wow.
- Wow!

That's major, guys.

Are you profitable?

Last year, we made $20,000.

Are you paying
yourselves a salary?

$60,000.

Each or total? Each.

Alright, that's fine.

How much are you guys
spending on advertising?

So, we spend about 30% of
our revenue on advertising,

and that's super important,
because each customer

we bring in is not
just one customer.

Right, of course. Right. If we can
bring in a bride, that's eight bridesmaids.

I know this business
incredibly well.

I make inclusive sizing at both
SKIMS and Good American.

Yes.

And it makes the
margin profile really tricky.

So talk to me about margins
on both of the ranges, please.

So, we're at 70%
for both of the ranges.

For your
direct-to-consumer sales?

Yeah. We only sell direct.

Can you please tell me
both of your backgrounds?

I was in marketing for
a little over a decade

before coming full-time.

I worked for huge CPG brands

like Neutrogena, The
Laughing Cow. Wow.

I was actually doing some
of, like, the first Facebook ads,

back in 2009,

so that's why I'm kind
of like the digital person.

Gotcha. Thank you. And you?

Yes. I played football
most of my life.

Afterwards, I became a
child psychiatric specialist

at a children's hospital,
and then I moved

into law enforcement
and became a detective.

Wow. Are you still a detective,
or do you do this full-time?

No. Actually, I
left the police force

to completely follow this dream.

So, guys, what's the vision?

What do you want
to do with this brand?

The biggest thing for us
is showcasing diversity

in a space that never
saw brides and couples

or even bridesmaids of
color in media campaigns.

So it's so important to us
to have that component.

And making sure that we
are celebrating all body types.

And how big do you
want to take the business?

Well, Charles has a huge vision.

We want to be a
$500 million company.

Whoa.

The real question I have
is, what do you need?

For you to get to $500 million,
what are those first steps

you need to take, and
where do you need help?

So we want to get
more team members

to create
supply-chain efficiency,

because we want to be
able to get the customers

what they need, when
they need, as fast as we can.

How many people do
you have working for you?

It's just the two
of us full time.

Charles has one contractor
that he works with seasonally.

So when you guys get orders,

you just grind it out in the
warehouse that you have?

Yes. Yes.

- Wow.
- That's amazing.

Okay, so who's actually
making the dresses?

So, we have a number of
manufacturers overseas.

What's your lead time on
on a dress or dresses?

It takes about two to three weeks
to actually produce the dresses.

But then, shipping,
I'm sure you all know,

has been kind of a nightmare.

Right. So you're having...
Pain in the ass right now.

So because we've been
selling out so quickly,

we've had to incur additional
cost to do air shipping.

Well, first
of all, super impressive.

I love the business,
but I-I can't add value

in the bridal dress business.

It's just not my forte.

Thank you for
coming, but I'm out.

Thank you. Thank you.

Guys, I'm... I'm very
impressed. I'm in this space.

I don't know if you know your
customer acquisition cost yet.

It's one of the highest
in the fashion business,

is capturing the bride

when she's making
her purchase decision.

Yes. I wish you the best,
but it's... it's not for me.

I'm out.

Thank you. Thank you.

Guys, listen, I love the fact

that you've managed
to stay out of the trap

of the kind of traditional
wedding business,

because it's my belief that
any brand that's going to scale

and do really well now

has to be rooted in
some kind of community.

It's the only way that we can
keep advertising cost down

and keep that
word of mouth going

and keep the customers excited.

There's so much
promise in this business,

so I definitely would love
to give you guys an offer.

I think that your
valuation is a little steep.

So, you came in asking
for $250,000 for 10%,

and I will happily give
you guys $250,000,

but I want 25% of the business.

Ohh, your valuation
just got crushed.

Two Sharks are out.

Charles and Ashley have an
offer on the table from Emma

for their inclusive
bridal dress business,

Bridal Babes,

but she wants a bigger
chunk of the business

than they came in offering.

I think that your
valuation is a little steep.

So, you came in asking
for $250,000 for 10%,

and I will happily give
you guys $250,000,

but I want 25% of the business.

Ohh, your valuation
just got crushed.

Okay. Thank you. Um...

Would you do, um...?

Oh, sorry.

We
Could go for... 15%?

How about 17.5%?

Make it 20%, and
you've got yourself a deal.

We got a deal!

Wow.

Oh, my gosh! I love it.

So amazing! Thank you.

Well done, guys.
Amazing. You look beautiful.

Thank you. Congrats, guys.

- Thank you. Have a good one.
- Well done, well done.

They're on to something.
They're on to an absolute winner.

I told you.

Ahh! I cannot believe this!

We did it! We did!

Congratulations! I'm so happy!

I love you so much. Yay!

In Season 13, we watched
Bo Haaber and Rasmus Barfred

make a deal with Robert Herjavec

for their custom swim
goggles company, TheMagic5.

I'll give you $1
million for 6.5%.

We'll take it. Alright!

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

When we aired on "Shark Tank,"

we got a thousand times
more traffic to our website.

Normally, we would
have 30 people on our site.

We had 30,000 people,
and it resulted in more than

$45,000 in revenue
in the first 24 hours.

Since we pitched the Sharks,

we've sold more
than 85,000 goggles

and made more than
$4.1 million in sales.

But the deal got even
sweeter, because another Shark

didn't want to miss
out on our technology.

So I invested in TheMagic5.
And guess what? That's not all.

Ta-da.

Yeah, I loved the deal so much

that I went up to Robert
after the show and said,

"Look, Robert, you
negotiated a great deal."

I did. "Why don't
you let me in?"

Mark and his team have
provided strategic guidance

all around the business.

And Robert has been
focused on how to get to new customers,

especially online.

With the success of
our swimming goggles,

we are now moving
into other product areas.

Virtual reality headsets
are very uncomfortable,

so we have taken our technology

and enabled a custom
fit facial interface.

This will make the headset
much more comfortable to wear,

and you can wear your
headset for a longer time.

We've also secured a
partnership with Canyon Bicycles.

Canyon will be using our
customizing technology.

That will enable the biker
to control the bike better,

and at the same time,
be more comfortable.

My advice for an
entrepreneur is,

ask yourself the
difficult question...

Do you really solve a
problem, and do you solve it

in a way that makes
sense for the customer?

These guys, when you
talk to them, they're all in.

Yeah. It's all they think about,

how to make swimmers better,

how to make goggles better.

They're very single-minded
and very focused,

and that's just a great trait.

You've got to live and breathe
your product and your company.

And they certainly
do. And they do, yeah.

Next into the Tank is a way

to keep kids'
creativity mess-free.

Aww.

Hi, Sharks.

My name is Amy Leinbach.

And I'm Marlo Leinbach,

from Huntington
Beach, California.

We're seeking $100,000
for 20% of our company,

Big Bee...

Little Bee.

Please! Aww.

Sharks, do you
know the best part

about arts-and-crafts time?

You're allowed to make a mess.

Mess! Mess! Mess!

But when I'm all
done, the fun stops.

There's paper and pom-poms
and paste everywhere.

And if I don't find my markers
and caps that rolled away,

they'll dry out.

Don't worry, Mommy.

That's why I invented
the Marker Parker,

the perfect spot to
park your markers.

Cool. How does it work?

Marker Parker grips
your marker caps tight,

so you just remove
the drawing part.

And when you're done
with it, you put it right back.

Marker Parker's ergonomic
shape and squishy texture

makes it easy for kids to grip,

and its playful design
encourages them

to put their markers
back where they belong.

So no more markers
rolling onto the floor.

No more lost marker caps.

No more dried-out markers.

And when a marker
does run out of ink,

the grown-up just
wiggles out the cap...

And smushes a new one back in.

Finally, an easy system
to keep my markers

capped and contained,
at home and on the go.

So, Sharks,

who wants to help kids
increase their independence,

develop good
organization skills...

And save the planet from a
whole lot of wasted markers?

With the Marker Parker!

- Great job!
- Great job!

- You were amazing!
- Good job.

Marlo, did you make
these drawings?

Yes, and those words on top
are something you once said.

You did a great job. Thank you.

Nice job.

Marlo, I just
found something out there.

I learned I'm bald.

I had no idea.

Oh, no!

Marlo, how
old are you? 7 1/2.

- You're 7 1/2? Wow.
- Wow.

Do you want to try out
your Marker Parker?

- Yes.
- We do.

So what you're selling

is what the markers
are in or the whole set?

What do we make? Um, the marker.

No, the base. I mean the base.

Yeah, okay.

So it's a holder. Yeah.

Do these work for any pens?

Like, you can put whatever
markers you want inside?

That SKU works for
broad-tip markers,

but actually,

with our current run
that's going on right now,

we decided to make
a little modification

in order to make it fit for
fine-tip markers as well.

Amy, it's an eloquent
solution. I get it.

But what stops the manufacturer,

having seen this, from
doing it themselves?

We filed a provisional
patent back in November.

She thought of the idea
exactly one year ago, July...

Oh, Marlo thought of the idea.

Oh, I'm so sorry!
Yeah, she invented this.

- Aww.
- Oh, I had no idea.

I just helped her take
it to the finish line.

And what do you sell it for?

What's the price? $15.

- $15.
- Wow.

You do? And what does
it cost you to make this?

$2.71, landed.

- Wow.
- Nice.

- Wow. Great margin.
- That's really great.

Yeah! Grede: So, Amy,

how are you selling
these at the moment?

How are you marketing them?

So, Big Bee, Little Bee is
the business that we started

about six years ago,
and it just started with

a-a towel that I invented
for her as a baby.

Do you want to share
some of our... our products?

Sure. This is the ScrubBEE.

It helps kids learn
to wash themselves.

It's not a sponge, so
germs don't collect on it,

and it has a solid
handle and soft bristles.

Oh, great idea. Marlo, and
do you make the straw too?

So, that... that's
the Build-A-Straw.

That becomes a full-size straw.

Ohh.

It's completely
unique in that...

And so when you take it
apart, it's super easy to clean.

So, Amy, obviously, you have
a lot of products in the company.

Like, what's your hero product?

What are you selling, and
how much of it are you selling?

Okay, so, our hero product

has been that little
silicone scrubber.

So, last year, we did
$230,000 worth of sales.

Of the scrubber?

You know, of the whole business.

Of everything.

But the scrubber
was, you know...

Is our main product.

Of what percentage?
And that's with...

Like 80%.

Oh, wow. Yeah, but...

Wow.

That's with losing all
inventory in the second half.

It has been unbelievably
difficult with quality issues,

manufacturing, supply chain.

On your sales last year,
did you make a profit

or did you lose money?

So, we... we grossed $97,000,
and we were profitable $2,200.

Whoo! Aww!

So not only did we survive,
but we made two grand.

Please don't ask
me about this year.

What... What about
this year? Ohh...

Please don't ask me. Oh, no.

Please
tell us. I'm kidding.

I will address... I
will address that.

So, this year to date, $110,000.

We did not have
ScrubBEEs in the first half.

Are you making any
money on that $110,000?

No, I have lost a
fortune this year.

So, right now, I'm down
$77,000, and here's why...

$77,000? Here's why.

Oh. Sorry. When my daughter
came to me with this product idea

this time last year, this
was not in the pipeline.

We have another product
back here that already was.

The train was moving
on that product.

But I
was raised by parents who...

"Reach for the stars.

Follow your dreams."

Providing me with every resource

they could possibly
pull together

to... to help me invent,

'cause that's what I loved.

I had a fear of numbers,
and it stopped me

from starting a business
for a very long time.

But they supported
me, and so I support her.

And when she had this
idea, I asked her, I said,

"This is brilliant.

Do you want to make
this for other children?"

When she said, "Yes,"
I found the money.

I found the money.

I've invested, so far,
$100,000 of my own money.

If you ask me in
two weeks from now,

I'll tell you I invested
$166,000 of my own money.

So, Amy and Marlo,

let me just say that, you know,

we don't get many
7-year-olds in here holding...

7 1/2!

- 7 1/2.
- 7 1/2, Kevin.

That's very impressive. Very
impressive. You did a great job.

And, Amy, um, wonderful that
you're supporting your daughter

towards a journey
of entrepreneurship.

That's great.

However, telling me you
have fear of numbers...

That's not a good story.

I know. As an
investor, what I look for

is an opportunity
to take my capital

and pour it on a
working business model.

It's like pouring
gasoline on a fire,

and I get my returns
because I accelerate

by helping that company
grow and acquire customers

and all the other things
that a Shark does.

This has a lot of
problems in it right now.

May I challenge you
for a second, please?

Well, I want to
get to a place here.

Sure, sorry.

I'm out.

I think you're going to
want to take that back.

Well, let's see.

This is what's next.

This is the food container.

Food? For,
like, a sandwich?

Food, yes. Yeah. Yeah.

And it could fit a
whole apple in there.

So are they... are they
silicone sandwich storage,

individual, like, self...? Yeah.

Yeah, so basically...

Guys, let me jump
in real quick here.

Oh.

Look, one of the great traits

of any good
entrepreneur is resilience,

and you certainly
have shown that.

But you also have
inventor-itis, right?

Which is one of the worst traits

an entrepreneur can have,
because you lost $77,000.

You've got to solve the problems
that are in front of you first.

If you would have
come in and said,

"The marker, we're shipping it.

We've got these
sales." We are. We do.

"We've got... We've
got cash in the bank."

It's going in Buybuy Baby.

Just 'cause it's
in Buybuy Baby...

You would be telling
us the numbers, right?

I'll tell you the numbers.
$8,500 in sales.

How many units have we sold?

Over a thousand.

Over a thousand
in three-and-a-half...

Okay. Amy, I'm
out. I'm out. Sorry.

Okay.

Amy, are you doing this alone?

No.

Oh, well, of course.

Of course. Of
course. She's my light.

But... But, yes.

I completely love you're
teaching your daughter

how to think big

and how to be
creative and inventive.

At the same time, when
you come up with an idea,

you perfect it.

You make that one
product a huge success,

and then you go to the next.

So, I think you just have

overextended
yourself in every way.

I'm so sorry. I'm out.

It's okay. Thank you, Lori.

Guys, I-I really... So, I really
admire what you've done.

And I think just seeing
the two of you stand here

as a mother and daughter,
it's just, like, amazing.

You know, it warms the heart.

I do think that you've probably

overextended
yourself a little bit.

There's so many
products in this brand

that I don't quite understand
what you stand for, right?

And I do think
there's an element

of having a hero product,
really, really perfecting that,

and then thinking
about other things.

At the moment, the
approach just feels

a little bit scatterbrained.

And while this might be an
amazing business for you two,

I just don't think it's
something that I can invest in.

So for those reasons, I'm out.

Thank you for your time.

Oh, you're so welcome. You're
so welcome. - Aww.

Marlo, I have 4-year-old
twins, and they love to draw.

They would love
something like this.

And I know you can't see
it, but I have bees on my suit.

And so I love the
bees. I love bees.

Amy, I was going
to make you an offer,

until you started
showing us more product.

I think, you know,
when you're really small,

you have to be laser
focused, and I kind of feel that

your real strength
and value is inventing.

So perhaps you look
at us as a design studio

and license these products.

Amy, I-I think you are
phenomenal at design.

That's a really good
way to look at it.

But if you're a design studio,
you need somebody to sell it.

I'm not so much a license guy.

I want to help build the
business around this.

I mean, I wish you all the best,
but for the business investment,

I'm sorry, I'm out.

Okay. Thank you. Thank you.

- Good luck, guys.
- Good luck, guys.

Good luck, guys.

Keep on doing what you do.

Thank you, guys.

Good job, Marlo.
You were amazing.

Good job, Marlo.
You were amazing.

I'm happy that
Mama got what she wanted.

She like... She always
wanted to go on "Shark Tank,"

and she's on "Shark Tank" now.

I did get what I wanted, honey.

Well, Robert, I think
you did a great job

of crushing Marlo's dreams.

No kidding. "I was
going to make you an offer..."

7 1/2 years old. Oh, my God.

She's decimated. I mean...

Well, I was. I was!

Well, then do it!

It broke my heart, what
you did. I wept like a baby.

Next up is a company

that combines luxury
with the great outdoors.

Hi, Sharks.

My name is Tracy Slocum,
and I'm from Albany, New York.

I'm the CEO and
founder of Pretty Rugged.

Today I'm seeking $200,000
for 10% of my company.

Sharks, my
great-great-grandfather

was the first man to sail
alone around the world.

His name was
Captain Joshua Slocum.

I'm Tracy Slocum.

Wow. That's pretty cool.

He was a pioneer of his time,

and his trailblazing spirit
is sewn into everything I do.

So, Sharks, I made a blanket
that is waterproof and windproof

on one side, and
faux fur on the other.

You can see that this
is the faux-fur side,

and this is the waterproof
and windproof side.

And that's when Pretty
Rugged was born.

But I didn't just
stop there, Sharks.

I created an entire
lifestyle brand

around luxury and function,

making products that were
made for life, luxury redefined.

So, Sharks, who wants
to jump on this ride with me

and take this around the world

just like my
great-great-grandfather did?

Wow.

That's pretty cool that
he went around the world.

Yeah, he was 51
years old when he did it.

He had lost the
love of his life. Aw.

He was given a boat.

He rebuilt that boat in
about 13 months. Wow.

And while he rebuilt
it, he rebuilt himself.

And he had a goal
that was so big,

and people really doubted him.

And I can really relate to this
heritage and this DNA myself.

I started Pretty Rugged
when I was 43 years old.

And how long ago
was that, Tracy?

That was in 2017.

Do you want to tell
us what these are?

Can we open these?

Yes, would you
please open your gifts?

Oh, wow.

These are very nice, Tracy.

Beautiful.

My original faux-fur blankets.

They're meant to feel like
real sheared mink. They do.

And the backing's waterproof,
so the fur goes around you,

and you sit on a
waterproof, like a-a...

I have it backwards.

You do.

Come on, Robert. Sort it out.

This is how it works, Robert.

Look at you.

Never mind me, I'm
gonna take a snooze

during your presentation.

Okay, I
know. I hope not.

But this is the real me.

So, picture being outside,
and you're sitting around,

and you're on
either wet seats...

You know how the dew
makes the seats get wet?

Yeah, absolutely. It's cold.

Okay, so this is... That
looks beautiful on you.

Thank you.

So I created the blanket
line, and I launched in 2018.

I walked into the
Jacob Javits Center,

and it was a huge
New York Now show.

I had never been to a
trade show in my life.

I walked in with paper
walls and a pallet table

that I made myself,

and I left there winning Best
New Product and Best in Market.

- Wow.
- Wow.

And I was awarded,
in my first year,

one of Oprah's Favorite Things.

Wow! I had instant credibility.

After I won my awards
at the New York Now,

my husband's business had
a complete loss from a flood.

Oh, no. And we...
We lost everything.

And Pretty Rugged,
very similar to

when I was talking about Joshua,
kind of rebuilt me as a person.

And this... this has been my
journey, and this is my passion,

and that's why it's so
important to me that I do this.

I-I can do this. I need... I-I
want a strategic partner here.

I want someone who
gets this and understands

and wants to help me
take this to the next level.

How much is this blanket?

That's $290.

How much is what
Emma was wearing?

That's $220.

So, what does it cost you
to manufacture the blanket,

and then the thing that I
was wearing, the cape?

The blankets cost
me about $36 to $40.

- Wow!
- Whoa!

My margins are huge.

Good margins! Margin on fire!

My retail margins hover
around 80%. Whoo-hoo!

Oh, my God! And my
wholesale margins are 70%.

Oh, delicious. And I've
sold over 30,000 units.

My lifetime sales are
just shy of $3 million.

Wow.

What were your sales last year?

Yes, last year, I
did $1.197 million.

And what did you make on that?

I netted $32,000.

What?

If you made 80% margins,
why did you only net $32,000

on $1 million? Trade shows.

We... We had another
purchase order last year

that came in late in the year.

How much did you
spend on trade shows?

Last year, we spent about
$180,000 on trade shows.

Wow. There we go. Okay.

A lot of trade shows this year.

I'm doing 20 trade
shows this year.

Oh, wow.

Supply-chain issues
have been an issue.

Last year, I ran out of product,
so I made a strategic decision

to make a big purchase
order of about $400,000

that came in just a
couple weeks ago.

Duties... I-I get knocked
25% on tariffs from China.

My... My ad spend was $68,000.

I'm listening to your numbers.

It's like you said just
a few moments ago,

you're running
around the country,

spending 20% of
revenue at trade shows.

It's working. You're
selling over $1 million.

That's amazing.

But I'm looking at it as an
investor, saying to myself,

"There's not any room for me."

I mean, I give you
$200,000 for 10%.

That's a $2 million valuation.
It's not worth $2 million yet.

Could be one day.

But for me, it's just, how do
I pour gasoline on this fire?

Because that's what I
do in my investments.

I-I find a model that's
working, and you need cash,

I have cash, I give you cash,

you pour it on the business,
we make more cash.

Everybody's happy.
Cash, cash, cash.

And... But I don't see
that here, Tracy. I'm sorry.

I think you're
fantastic, but I'm out.

Thank you. I appreciate that.

Tracy, I'm... I'm going
to tell you right now,

I actually really admire you.

I admire the fact that,
at this point in your life,

you've decided to just take a
chance and do something else.

I'll tell you right now,
I touched this product.

I put it on, and it feels great.

For me, working
in fashion right now,

it doesn't feel right to
invest in something...

Even though
this is not real fur,

I think we're seeing
a real downtrend

in the trend overall of fur,

and certainly, the
younger generation

don't want anything
to do with it.

So for that reason, I'm out.

Tracy, I think
you're going to do great.

I think it's a great
product. Thank you.

But I'm just not sure
how I can help you.

So for those reasons, I'm out.

Thank you, Mark.
I appreciate that.

Lori? Robert?

Three Sharks are out.

Lori and Robert are
Tracy's last chance for a deal

for her luxury outdoor accessory
business, Pretty Rugged.

So, what are this year's sales,

and what is the
profit so far on that?

So right now, my booked
sales... my gross sales,

not my preorders,
are $715,000, okay?

So far. So far.

According to my P&L,
I'm at negative $250,000.

Ooh! Explain. Wow.

My trade shows... I did
four trade shows last year.

I'm doing like almost
20 of them this year,

so it's... it's a lot.

So trade shows can be 5 grand
a show, they can be 10. Yeah.

Or they can be 200.

They can be... You know,
what are they costing?

So, most of them hover
between $15,000 and $30,000.

So, talk to us about the last year. Tracy,
is it just you? Do you have any staff?

Okay, so this is
run by five women.

We are a women-owned company.

It makes no sense. It's
not a viable business.

Something isn't stacking up.

The inefficiencies are crazy,

'cause your margins
are what they are,

and even your
wholesale margin is good.

I know. That's why I'm here. I
need a person that can help me.

I know I'm not doing
everything right.

I'm not saying I am.

Can I learn and
know? Yes, I can.

I'm so good at... at...
At selling this product.

Tracy, we just think
you need some help.

I do need help. Herjavec: Yeah, Tracy,
I care... I care less about the past.

I mean, we all make mistakes.
I wasn't a financial guy.

It took me three days to
do my first spreadsheet.

I mean, y-yes, you
should know that better,

but I think I can help
you figure that out,

and I think there are
people that can figure it out.

You're an absolute winner.

Like, you are an
absolute winner.

All the poo-poo
that's happened in life,

and you've recovered,
you've kept going.

I mean, that's what I look for.

Thank you. I couldn't
love you more.

I want to be
involved with it. Okay.

You know, I'm sitting
here feeling this,

and really beautiful.

You would not know
this isn't mink. That's right.

I mean, It's just... I actually
like it way better, frankly... Yeah.

Because I'm a believer
in faux fur versus real fur.

Yes. Yes, me too.

And then the inside is just
absolutely gorgeous, too.

Your margins are fantastic.

You obviously have done
a great job of sourcing.

Yes. Robert and I both love
you and love the product.

So we thought, you know
what, he can help you

with the financial end
of it, and I can help you

with the sales and
marketing end of it,

and we would make
a good team here.

What's the offer,
before the mink dies?

We are gonna offer you...

$200,000...

For 25%.

Because we think we add
a lot of value to it, Tracy,

and I think this is one
of those businesses,

you got to go quick
$200,000, 25%.

Lori and I would love to
be in business with you.

What do you think, Tracy?

So I'm just going to ask you,

would you ever
consider 20%, not 25%?

No. Tracy, we feel pretty
good about that offer.

Come on. We're
gonna blow this up.

We're gonna blow it up?
We're gonna blow it up!

Alright. You got a
deal!

Boom!

Whoo!

Oh, well done, Tracy.

I love it! I couldn't
love it more.

I love it, too.
Wow. It's beautiful.

Congratulations, Tracy.

Thank you so much.

Okay.

Yes! Oh!

This is the American dream.
This is what I came here for.

I thought that I would get a
Shark, but to get two Sharks,

and to have them see
me, what I really feel,

and... and love the
product was everything.

You know what another
great thing about this is?

If you have things that you
want to hide from the public...

Ohh! You
can just cover them!

And they look better.