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Narrator: THIS IS THE SHARK TANK, WHERE HOPEFUL ENTREPRENEURS
GET A ONCE-IN-A-LIFETIME CHANCE TO PITCH THE SHARKS
IN HOPES OF GETTING AN INVESTMENT
TO START, GROW, OR SAVE THEIR BUSINESSES.
[ ALL CHEERING ]
Narrator: THE ENTREPRENEURS MUST CONVINCE A SHARK
TO INVEST THE FULL AMOUNT THEY'RE ASKING FOR,
OR THEY'LL WALK AWAY WITH NOTHING.
I HAD THE CLOWN COMMUNITY CRITICIZE ME.
I'M NOT JOKING.
YOU DON'T WANT TO *** OFF THE CLOWN COMMUNITY.
THEY'RE GONNA SQUASH ME LIKE A BUG.
THIS IS ONE OF THE CLASSIC SITUATIONS IN "SHARK TANK"
WHERE YOU COME IN THINKING THAT IT'S WORTH $1 MILLION.
DON'T ASK A MILLION BUCKS FOR SOMETHING
THAT HASN'T MADE ANY MONEY YET. WHAT, ARE YOU GUYS NUTS?!
SURE, W-WE HAVE A BUDDING --
WHOA.
Narrator: IF THE SHARKS HEAR A GREAT IDEA...
ALL YOU GOT TO DO IS DRAW SOME HORNS ON HIM, AND HE'S SET.
...THEY'RE READY TO INVEST,
WHOO!
Narrator: AND THEY'RE WILLING TO FIGHT EACH OTHER
FOR A PIECE OF THE ACTION.
I'LL GIVE YOU THE $125,000.
Herjavec: YOU KNOW WHAT?
I'LL GIVE YOU THE $125,000, NO ROYALTY,
IF YOU DO THE DEAL RIGHT NOW.
"BOOM" GOES THE DYNAMITE!
WOW.
...2...1...
Narrator: WHO ARE THE SHARKS?
THEY'RE SELF-MADE MILLIONAIRE AND BILLIONAIRE INVESTORS
WHO ARE ENTREPRENEURS THEMSELVES.
KEVIN O'LEARY IS A VENTURE CAPITALIST
WHO TURNED A $10,000 LOAN
INTO A SOFTWARE BUSINESS WORTH $4.2 BILLION.
BARBARA CORCORAN WENT FROM WAITING TABLES IN MANHATTAN
TO BUILDING THE CITY'S PREEMINENT REAL-ESTATE EMPIRE.
ROBERT HERJAVEC, THE SON OF AN IMMIGRANT FACTORY WORKER,
IS NOW A TECHNOLOGY MOGUL
WHO SOLD HIS FIRST INTERNET COMPANIES
FOR OVER $350 MILLION.
LORI GREINER, THE QUEEN OF QVC,
HOLDS OVER 100 PATENTS AND HAS LAUNCHED OVER 300 PRODUCTS,
GROSSING OVER A HALF A BILLION DOLLARS IN RETAIL SALES.
AND MARK CUBAN, NOTORIOUS BILLIONAIRE ENTREPRENEUR,
TECH GURU,
AND THE OUTSPOKEN OWNER OF THE NBA's DALLAS MAVERICKS.
Padawer: MY NAME IS LAUREN PADAWER,
I LIVE IN CORDOVA, ALASKA,
AND I'M THE FOUNDER OF ALASKA GLACIAL MUD COMPANY.
BESIDES RUNNING MY COMPANY,
I WORK AS A COMMERCIAL SALMON FISHERMAN.
BEING A SALMON FISHERMAN,
YOU HAVE TO LOVE BEING OUT ON THE WATER,
AND YOU HAVE TO LOVE TAKING RISKS.
IT'S NOT SO DIFFERENT THAN BEING AN ENTREPRENEUR
AND BEING ABLE TO STICK YOUR NECK OUT THERE
TO DO SOMETHING YOU LOVE.
[ KETTLE WHISTLING ]
HI. THIS IS LAUREN.
STARTING A BUSINESS IN ALASKA IS CHALLENGING
BECAUSE WE'RE SO FAR FROM EVERYWHERE ELSE.
GETTING TO MEETINGS OR JUST PAYING FOR A PLANE TICKET
POSES SOME REAL CHALLENGES.
ALASKA GLACIAL MUD COMPANY IS TREADING WATER.
I NEED AN INVESTMENT FROM THE SHARKS
TO TAKE MY COMPANY TO THE NEXT LEVEL.
I WANT EVERYONE EVERYWHERE
TO EXPERIENCE A LITTLE BIT OF THE PURITY AND BEAUTY OF ALASKA.
HELLO, SHARKS.
MY NAME IS LAUREN PADAWER.
I LIVE IN CORDOVA, ALASKA, WHERE I AM BOTH THE FOUNDER
AND OWNER OF ALASKA GLACIAL MUD COMPANY.
I'M HERE TODAY SEEKING $100,000
IN EXCHANGE FOR 20% OF ALASKA GLACIAL MUD COMPANY.
AS A COMMERCIAL FISHERMAN,
I KNOW ALASKA IS ALREADY FAMOUS FOR WILD SALMON,
BUT SOMEDAY, I'D LIKE TO SEE US FAMOUS
FOR A LUXURIOUS
AND NUTRIENT-RICH ALASKA GLACIAL MUD.
THE IDEA FOR ALASKA GLACIAL MUD COMPANY
STARTED ON A WILDERNESS RAFTING TRIP
DOWN THE MAJESTIC COPPER RIVER.
AS SOON AS I STEPPED IN, MY FEET SANK INTO BUTTERY MUD.
IT WAS SUCH A DIVINE SENSATION,
I PROCEEDED TO COVER MY FACE AND BODY IN THE SILKY MUD
AT THE MOST WILD SPA IN THE WORLD.
AFTER WASHING IT OFF, MY SKIN WAS SOFT AND GLOWING.
I WANT TO SEE THIS AMAZING MUD
BECOME AN INDUSTRY STANDARD IN THE SPA MARKET.
SO, SHARKS, WHO WANTS TO GET THEIR FINS DIRTY
AND PLAY IN THE MUD WITH ME?
Greiner: [ CHUCKLING ]
MM.
ARE YOU THE ONLY ONE THAT EVER DISCOVERED
THAT THIS WAS THE BEST MUD IN THE WORLD?
THERE IS NO OTHER ALASKA GLACIAL MUD PRODUCTS ON THE MARKET.
ABSOLUTELY.
FOR YOU.
THERE'S A MIXTURE HERE
OF SOME OF THE DIFFERENT PRODUCTS WE CARRY.
THANK YOU.
THANK YOU, LAUREN.
MR. WONDERFUL.
BARBARA.
MARK.
O'Leary: HAVE YOU PROCESSED THIS MUD IN ANY WAY?
IT GOES THROUGH A REFINING PROCESS
TO ENSURE QUALITY CONTROL.
'CAUSE I-I'M WORRIED
THAT A BIG BEAR WOULD'VE TAKEN A LARGE DUMP
NEAR WHERE YOU WERE.
OH, GOD.
IT'S THE CLEANEST MUD IN THE WORLD,
AND IT COMES FROM
ONE OF THE MOST PRISTINE WILD RIVERS IN THE WORLD.
I WOULD ACTUALLY REALLY LIKE TO HAVE MR. WONDERFUL COME UP HERE
AND GIVE YOU A GLACIAL FACIAL.
WHOA! OKAY, THEN.
I JUST HOPE I'M NOT BEING COVERED IN BEAR POO.
OH, GOD.
NO, THIS IS VERY PURE.
Greiner: HOW LONG WOULD YOU NEED TO LEAVE IT?
IN ORDER TO DRY,
IT WOULD TAKE ABOUT 10 TO 15 MINUTES.
DOES IT DRAW THE IMPURITIES UP OUT OF YOUR SKIN?
ABSOLUTELY.
IT CONTAINS MICROFINE CLAY PARTICLES
THAT ABSORB TOXINS AND EXFOLIATE DEAD SKIN.
SOMEHOW THIS LOOKS LIKE THE TRUE YOU.
Cuban: ALL YOU GOT TO DO IS DRAW SOME HORNS ON HIM,
[ LAUGHTER ]
WHAT OTHER BODY PARTS CAN BE USED WITH THIS STUFF?
[ LAUGHTER ]
THE COLOR OF MONEY.
O'Leary: IT'S VERY COOLING.
I FEEL THE TOXINS LEAVING MY BODY.
Padawer: THE COPPER RIVER WHERE THIS COMES FROM
IS AN INCREDIBLY PURE AND WILD PLACE
AS YOU ALL MAY KNOW IF YOU'RE FANS OF COPPER RIVER SALMON.
HOW MUCH ARE YOU SELLING TODAY, AND HOW ARE YOU SELLING IT?
OUR SALES TO DATE ARE $36,000 A YEAR.
OOH.
$36,000 A YEAR.
DO YOU HAVE A SMALL SHOP, LAUREN, THAT YOU SELL IT IN?
NO, I DO NOT HAVE A RETAIL SHOP.
WE WHOLESALE IT TO SPAS.
IN ALASKA?
WE WHOLESALE IT ALL OVER THE WORLD.
YOUR REAL TARGET THAT YOU MOST WANT ARE THE SPAS?
YES, I'M INTERESTED IN THE SPAS,
BUT THERE IS A LOT OF PRODUCTS ON THE MARKET
THAT PEOPLE BUY FOR THEMSELVES AT HOME,
I MEAN, ESPECIALLY IN MORE DEPRESSED ECONOMIES,
PEOPLE WHO CAN'T AFFORD TO GO TO A SPA.
WHAT DOES THAT JAR SELL FOR RETAIL?
IT SELLS FOR $34.
AND WHAT DOES IT COST TO MAKE ONE JAR?
Cuban: THAT'S GOOD MARGINS.
IT'S HARD TO CRACK INTO THE SPA MARKET
IT'S SO HARD.
IT'S SO HARD.
THEY'LL USUALLY CARRY ONE PRODUCT
AND THEN ENDORSE THE LINE.
SO I UNDERSTAND WHY YOU'RE HAVING A PROBLEM GETTING IN.
IT'S A REALLY GREAT CONCEPT, BUT THERE'S HUNDREDS OF PEOPLE
THAT WANT TO GET IN BUT SO FEW THAT EVER CAN.
AND FOR THAT REASON, I'M OUT.
IT DOES TAKE A LOT TO BREAK IN THIS INDUSTRY,
YES.
HOW MUCH MONEY HAVE YOU PUT INTO IT, LAUREN?
I'VE PUT $50,000 INTO THE BUSINESS.
WHERE DID YOU GET THAT MONEY?
THAT'S FROM MONEY THAT I HAVE SAVED OVER THE YEARS.
FISHING IS WHERE I DO MAKE MY INCOME.
THE FISHING IS ONLY THREE MONTHS OUT OF THE YEAR.
SCARY, ISN'T IT, WHEN YOU PUT UP EVERYTHING YOU HAVE?
HOW MUCH MONEY DO YOU MAKE ON THE FISHING SIDE?
I GROSS A LITTLE OVER $100,000 A YEAR.
WELL, GOOD FOR YOU.
YOU BRING IN $100,000 A YEAR?
THAT'S INCREDIBLE.
THAT'S AMAZING.
I WANT TO BUY INTO YOUR FISH BUSINESS.
DO YOU FISH ALONE?
WOW!
YOU'RE A BEAST. CONGRATULATIONS.
I-I AM A RISK TAKER. IT'S LARGELY A MAN'S WORLD.
THERE ARE SEVEN WOMAN WHO PROFESSIONALLY COMMERCIAL-FISH
IN THE TOWN THAT I'M IN,
BUT THIS IS SOMETHING THAT I REALLY FELT I COULD DO,
AND IT WAS NAIVE TO THINK THAT I COULD GO INTO THIS
AND BUILD THE BUSINESS SLOWLY AND ORGANICALLY.
LAUREN, ONE OF THE BIGGEST CHALLENGES
IS MAKING THE DECISION WHEN TO GROW SOMETHING ORGANICALLY,
JUST GRIND IT OUT, OR TO SPEND A LOT OF MONEY
AND GO BIG AND THEN CREATE PULL-THROUGH DEMAND.
MM-HMM.
YOU'VE GOT TO CONNECT TO SOMETHING
THAT'S ALREADY IN PLACE SO PEOPLE CAN CONNECT IT TO YOU.
YOU MIGHT WANT TO LOOK AT
CHANGING IT TO COPPER RIVER GLACIAL MUD
OR SOMETHING TO LEVERAGE IT BECAUSE --
I THINK IT'S A GOOD IDEA.
BUT BECAUSE THERE'S A BIG LEAP FROM WHERE YOU ARE
TO WHERE I THINK YOU NEED TO BE TO BE INVESTABLE,
FOR THOSE REASONS, I HAVE TO SAY THAT I'M OUT.
ALASKA'S HOT RIGHT NOW.
ALASKA TOURISTS SPEND OVER $300 MILLION A YEAR
IN PRODUCTS JUST IN OUR PRICE RANGE.
Herjavec: SO, LAUREN, YOUR MUD MAY ACTUALLY BE BETTER,
BUT THE CONSUMER WALKING INTO THE SPA DOESN'T KNOW THAT.
BUT --
I NEED YOUR HELP.
I MEAN, I HAVE BEEN WORKING REALLY HARD TO MAKE THIS HAPPEN.
OH, I HEAR YOU,
BUT YOU COULD SPEND MILLIONS TO EDUCATE A MARKET.
YOU CAN'T GO GLOBAL WHEN YOU'RE DOING $36,000 A YEAR.
I'M OUT.
OKAY, THANK YOU, ROBERT.
YOU'VE GOT A LOT OF GOOD THINGS GOING FOR YOU.
THANK YOU, BARBARA.
AND YOU HAVE A GREAT STORY.
I COULD SEE YOU HANGING OUT WITH THE BEARS...
I AM A VERY SWEET PERSON.
...ON THE SLEDS WITH THE DOGS AND BY A BEAUTIFUL RIVER.
I WANT TO MAKE THIS HAPPEN.
I INVEST IN A COMPANY CALLED NARDO'S,
EXACTLY THE SAME SPACE YOU'RE IN,
ABOUT A YEAR AND A HALF AGO,
AND I'VE LEARNED A LOT OF THINGS ABOUT THE COSMETIC INDUSTRY.
HERE'S THE THING.
IT'S VERY HARD TO BE RETAIL AND SPA.
YOU HAVE TO FIGURE OUT WHAT YOUR MARKET IS,
OR YOU'RE GONNA WASTE A LOT OF MONEY.
I WISH YOU THE BEST OF LUCK, BUT I'M OUT.
OKAY, THANK YOU, BARBARA.
Cuban: WELL, LAUREN, YOU'VE GOT --
[ LAUGHTER ]
KEVIN HAS NEVER LOOKED BETTER.
O'Leary: MY OTHER PROBLEM WITH IT
THAT NONE OF THE OTHER SHARKS PICKED UP ON
BUT ANYBODY CAN GO PICK UP MUD OUT OF THE COPPER RIVER.
RIGHT! THEY'RE GONNA GO UP THERE AND SAY,
"GET OUT OF THE WAY, LAUREN.
THAT'S MY MUD PILE."
THEY'RE GONNA SQUASH ME LIKE A BUG.
[ LAUGHTER ]
THEY'VE ALREADY DONE THAT.
O'Leary: TELL ME IF THIS IS NOT THE TRUTH.
YOU'RE TAKING A SUCCESSFUL BUSINESS --
YOUR FISHING BUSINESS --
AND SUBSIDIZING SO FAR AN UNSUCCESSFUL ONE.
I HAVE A SAYING.
ANY BUSINESS THAT AFTER THREE YEARS IS NOT PROFITABLE
IS NOT A BUSINESS. IT'S A HOBBY.
LOOK, I CAN'T GO DOWN THE RIVER WITH YOU ON THIS ONE
BECAUSE I'VE GOT MUD ON MY FACE.
[ LAUGHS ]
OKAY, OKAY, LOOK, LOOK, LOOK. LOOK, LAUREN --
I HAVE COMPANIES FROM CHINA AND JAPAN --
I'VE LOOKED FOR EVERY POSSIBLE REASON TO -- TO INVEST.
I'M OUT.
THANK YOU. WELL, THANK YOU ALL FOR YOUR TIME.
THANK YOU.
REALLY APPRECIATE IT.
THANK YOU. CIAO.
CIAO.
I'M AMAZED THAT SHE GOES OUT ALONE AND FISHES.
THAT IS AMAZING.
I THINK I DIDN'T GET A DEAL TODAY
BECAUSE MY SALES JUST WEREN'T STRONG ENOUGH,
BUT I'M GONNA CHARGE ON AND BUILD THE BRAND REGARDLESS.
Narrator: NEXT INTO THE TANK ARE ENTREPRENEURS
WITH A CLEVER WAY TO HIDE AN UNSIGHTLY, EVERYDAY NECESSITY.
Barzman: HI, SHARKS.
MY NAME IS MIKE BARZMAN.
AND I'M BRYAN O'CONNELL.
AND WE'RE CO-FOUNDERS OF InvisiPlug.
WE'RE LOOKING FOR $125,000 FOR 10% OF OUR COMPANY.
SO, HOW MANY OF YOU GUYS OWN ONE OF THESE?
JUST ONE OF THE BASIC, UGLY POWER STRIPS
THAT'S A COMPLETE EYESORE, RIGHT?
WE'VE DONE SOMETHING A LITTLE DIFFERENT.
INTRODUCING InvisiPlug.
InvisiPlug IS THE FIRST LINE OF SURGE PROTECTORS
DESIGNED TO SEAMLESSLY BLEND IN TO HARDWOOD FLOORS.
NOW, IT'S AVAILABLE IN THREE COLORS --
LIGHT NATURAL, MEDIUM CHERRY, AND DARK OAK,
SO IT COVERS A WIDE VARIETY OF HARDWOOD FLOORING.
WE JUST LAUNCHED THE PRODUCT,
AND THE RESPONSE HAS BEEN OVERWHELMING.
SO, LET ME ASK YOU GUYS A QUESTION.
WHO WANTS TO GET INTO THE POWER BUSINESS?
[ CHUCKLES ]
Barzman: BRYAN, SHOW THEM WHAT EVERYONE'S BEEN TALKING ABOUT.
LET ME SHOW YOU GUYS.
SO, SHARKS, WE NEED YOUR INVESTMENTS,
WE NEED YOUR EXPERTISE...
THANK YOU, BRYAN, THANK YOU.
...AND WE NEED YOUR RELATIONSHIPS
TO HELP US AS WE TAKE THIS PRODUCT TO MARKET.
SO, THERE ARE SOME VERY BIG PLAYERS
MAKING EXTENSION CORDS THAT ALREADY HAVE DISTRIBUTION.
SURE.
WHAT IS TO STOP THEM FROM SIMPLY DYEING THEIRS
AND CRUSHING YOU
LIKE THE EXTENSION-CORD COCKROACHES YOU ARE?
WE HAVE A DESIGN PATENT
THAT WE ACTUALLY RECEIVED ON THE PROCESS,
SO WE'RE PROPRIETARY WITH THE WOOD-GRAIN PRINTING.
SO IT'S THE LOOK OF THE PRODUCT THAT'S PROTECTED.
EXACTLY, EXACTLY.
SOMEBODY COULD MAKE ONE THAT LOOKS LIKE IT
USING A DIFFERENT PROCESS,
AND THE WHOLE PATENT THING DOESN'T MATTER.
O'Leary: SO THIS ISN'T PROTECTABLE,
SO THEN IT GOES BACK TO MY ORIGINAL QUESTION.
THE GUYS THAT OWN THIS SPACE THAT MAKE HUNDREDS OF MILLIONS
OF THESE THINGS AROUND THE WORLD,
WHAT'S TO STOP THEM FROM ABSOLUTELY DECIMATING
THIS BUSINESS IF IT EVER TAKES OFF IN THE FIRST PLACE?
Cuban: BECAUSE IT'S NICHE.
THERE'S NO REASON FOR THEM TO.
YOU MEAN IT'S NEVER GONNA BE A BIG BUSINESS?
EXACTLY, BUT THE --
QUESTION -- WHAT ARE --
I'LL NEVER MAKE ANY MONEY. IS THAT WHAT YOU'RE SAYING?
OUR RETAIL PRICE IS $14.99.
I DIDN'T KNOW IF YOU WERE GONNA GO --
TRY TO GO HIGH END SO THAT IF YOU WORKED WITH DESIGNERS
AND THIS WAS $249 BECAUSE IT WAS THE ONLY WAY
TO GET THE PERFECT LOOK ON YOUR FLOOR,
THEN I CAN SEE IT, RIGHT?
IF IT'S A $14.99 PRODUCT,
IT'S GONNA BE PERCEIVED AS BEING INEXPENSIVE.
IT'S NOT REALLY GONNA BE PERCEIVED AS A SOLUTION IN MY MIND.
I DON'T THINK IT'S A REAL BUSINESS.
I'M OUT.
I LIKE THE IDEA THAT IT'S A $14.99 PRODUCT
AND ANYBODY COULD AFFORD IT, BUT MIGHT I ASK YOU,
WHAT DO YOU PAY FOR A STANDARD WHITE ONE?
$6 TO $12.
Herjavec: BRYAN, HOW LONG HAVE YOU BEEN SELLING IT?
6 1/2 WEEKS.
THE TOTAL AMOUNT OF UNITS SOLD
IS JUST UNDER 1,500 UNITS AS OF RIGHT NOW.
WHAT'S THE TOTAL SALES FOR THAT?
THE TOTAL GROSS SALES IS OVER $10,000,
AND THE TOTAL NET IS JUST ABOUT $6,000.
WE'RE DOING A SPECIAL DESIGN TWO PACK,
AN EXCLUSIVE PRODUCT FOR COSTCO RIGHT NOW.
THEY GIVE US A PURCHASE ORDER FOR AROUND 3,000 UNITS.
IF THEY DO $500 OF GROSS SALES PER WEEK,
THEY WILL ORDER A STARTING ORDER OF 120,000 TWO PACKS
WITH A MARGIN THAT'S ABOUT 78%.
SO, I'M A COMPUTER GUY. I BUY A LOT OF THESE.
I'M NOT SURE I SEE THE MARKET FOR IT.
I THINK MOST PEOPLE THAT BUY THESE THINGS
PUT THEM BEHIND A DESK IF THEY DON'T LIKE THE LOOK OF THEM
TO TRY TO HIDE THEM SOMEWHERE 'CAUSE EVEN WITH YOURS,
EVEN THOUGH IT'S BETTER-LOOKING...
...I STILL SEE THE CORD.
I STILL SEE THE THING ON THE FLOOR.
IT BLENDS IN BETTER,
BUT IT'S STILL NOT AESTHETICALLY PLEASING TO ME.
FOR THAT REASON, I'M OUT.
SO, WE HAVE TO PAY YOU $1.25 MILLION VALUATION.
I THINK YOU'RE GONNA SELL SOME MAYBE,
AND IF YOU DO, GOOD FOR YOU, BUT IT'S NOT AN INVESTABLE BUSINESS.
AND THE PRICE YOU'VE ASKED IN TERMS OF THE VALUE IS --
IS BEYOND INSANE.
WELL, AND I --
THIS IS ONE OF THE CLASSIC SITUATIONS IN "SHARK TANK"
WHERE YOU COME IN THINKING
BECAUSE YOU'VE LIVED TOO CLOSE TO IT
THAT IT'S WORTH A MILLION DOLLARS -- $1 MILLION.
DON'T ASK A MILLION BUCKS
FOR SOMETHING THAT HASN'T MADE ANY MONEY YET.
WHAT, ARE YOU GUYS NUTS?!
SURE. OUT OF ALL RESPECT,
WE HAVE -- WE HAVE A BUDDING BUSINESS THAT WE BELIEVE --
AND WE RESPECT YOUR CRITICISM AND YOUR SUCCESS,
AND I APPRECIATE YOUR -- YOUR THOUGHTS.
LISTEN, ON THIS PLANET, IT'S NOT WORTH A MILLION BUCKS.
ON ANY OTHER PLANET, IT'S NOT WORTH A MILLION BUCKS, OKAY?
SURE IT IS.
I'M OUT.
I'M THE PERFECT CUSTOMER FOR THIS PRODUCT
'CAUSE MY HUSBAND, BILL,
PROBABLY BUYS SIX OF THESE A WEEK,
AND I HATE EVERY ONE OF THEM.
OKAY.
HE GOES ON A BUSINESS TRIP. I THROW THEM OUT.
HE COMES HOME. HE BUYS NEW ONES.
THAT'S HILARIOUS.
ALL RIGHT, I WOULD LIKE TO BUY AT LEAST THREE DOZEN FROM YOU.
THAT'S FANTASTIC.
BUT YOUR [SIGHS] THE NUMBER YOU PUT ON THIS BUSINESS
IS NUTS FOR A CRAPSHOOT.
BASICALLY, IT'S A CRAPSHOOT.
I THINK YOU'RE GONNA SELL A LOT,
BUT WHY WOULD I GIVE YOU $125,000
FOR ANY PERCENTAGE TO FIND OUT?
SO, I WISH YOU LUCK,
BUT I TREASURE MY MONEY MORE THAN THAT.
I'M OUT.
LORI, ARE THERE ANY QUESTIONS?
[ CHUCKLES ]
HOW MUCH MONEY HAVE YOU PUT INTO THIS?
WE HAVE AROUND $70,000 INTO THE COMPANY TO DATE.
T-THE REAL REASON WE WANT THE MONEY
IS BECAUSE OF THE O MAG ARTICLE THAT'S COMING OUT.
O AS IN OPRAH MAGAZINE?
YEAH. YES, YES, OPRAH MAGAZINE.
WOW.
OPRAH MAGAZINE IS FEATURING THIS.
AS A NEW PRO-- IN THEIR NEW-PRODUCTS SECTION.
OKAY, YOU WILL SELL OUT.
I HOPE SO.
GOD WILLING, A-A-AND THAT'S
WHAT WE ARE KIND OF BASING A LOT OF OUR BELIEF ON,
YOU KNOW, WITH OUR PRODUCT,
AND THE RESPONSE HAS BEEN NOTHING BUT POSITIVE
FROM ALL THESE BIG-BOX PEOPLE, YOU KNOW?
THANK YOU SO MUCH.
I'M GONNA MAKE YOU AN OFFER.
I'LL GIVE YOU THE $125,000 FOR 10%,
BUT I WANT A DOLLAR PER UNIT SOLD...
UNTIL I MAKE BACK MY $125,000.
MM-HMM.
AND THEN I WANT 50 CENTS FOREVER THEREAFTER.
NOW, DID YOU SAY IN PERPETUITY?
YES, YES.
Cuban: SHE SAID FOREVER.
YES, WHAT IT IS, IS I WANT PROTECTION.
O'Leary: THAT'S RIGHT.
THAT IS A KEVIN DEAL.
Corcoran: NO, IF IT'S INSULTING, IT'S A KEVIN DEAL.
NO, NO, NEVER.
KEVIN NEVER INSULTS.
[ LAUGHS ]
O'Leary: YOU WANT PROTECTION. YOU NEED SURGE PROTECTION.
BECAUSE I DON'T -- I NEED SURGE PROTECTION.
I NEED INVESTMENT PROTECTION.
ABSOLUTELY.
BECAUSE YOU HAVE A LOT OF FISH ON THE HOOK.
BUT I'M NOT SURE.
YOU DON'T HAVE PROVEN SALES.
SURE.
SO IT'S AS BIG A GAMBLE FOR ME AS IT IS FOR YOU.
SO THAT'S WHY I'M STRUCTURING THE DEAL THIS WAY.
WELL, ABSOLUTELY, AND YOU CAN UNDERSTAND
THAT FOR A COMPANY IN OUR INFANCY,
IT'S SO HARD TO PUT A REAL VALUATION ON OUR COMPANY.
IF WE PULL THE TRIGGER ON THAT COSTCO ORDER,
THAT'S OVER A MILLION DOLLARS IN NET PROFIT,
AND THAT'S JUST ONE ORDER.
TELL ME IF THIS IS TOO MUCH OF A COUNTER
ALONG THE LINES OF 25 CENTS PER UNIT
UNTIL YOU RECOUP YOUR INVESTMENT
AND THEN A POSSIBLE 5- OR A 10-CENT --
POSSIBLY, AND I'D HAVE TO CALL OUR ADVISOR -- ROYALTY.
SO, HERE'S GOING TO BE MY FINAL OFFER.
$125,000.
I DO WANT THE DOLLAR PER UNIT UNTIL I MAKE BACK MY $125,000,
BUT THEN I'LL GO TO 25 CENTS IN PERPETUITY
OFF OF EACH UNIT SOLD.
10% EQUITY.
I UNDERSTAND IT'S A STEEP DEAL,
BUT IT'S WHAT IT WILL TAKE TO GET ME IN.
A-ARE YOU AT ALL WILLING TO NEGOTIATE ON THE PERPETUITY?
NOT AT ALL?
I'M NOT.
YOU'RE NICE GUYS, BUT IT'S WHAT I FEEL I NEED TO MAKE THE DEAL.
OKAY, GUYS, YOU GOT HER TO GO DOWN FROM 50 CENTS IN PERPETUITY
DOWN TO A QUARTER.
I DON'T THINK IT'S AN UNREASONABLE OFFER,
NO.
...WHERE YOU ARE TODAY.
Herjavec: YOU KNOW WHAT? THE MORE YOU'RE TALKING...
MM-HMM.
...THE MORE IMPRESSED I'VE BEEN GETTING UP HERE.
ARE YOU GOING TO MAKE AN OFFER?
COMING BACK IN?
Narrator: FOUR SHARKS ARE OUT.
MIKE AND BRYAN HAVE AN OFFER FROM LORI,
BUT ROBERT MAY COME BACK IN.
Herjavec: YOU KNOW WHAT? THE MORE YOU'RE TALKING...
MM-HMM.
...THE MORE IMPRESSED I'VE BEEN GETTING UP HERE.
ARE YOU GOING TO MAKE AN OFFER?
COMING BACK IN?
YEAH, I'LL MAKE YOU AN OFFER.
OH, THANK YOU, SIR.
I DON'T THINK THAT THE BUSINESS
CAN AFFORD THE ROYALTY RIGHT NOW,
AND I THINK YOU'RE WILLING TO GIVE UP A LITTLE MORE EQUITY.
I'LL GIVE YOU THE $125,000 FOR 25% STRAIGHT IN, NO ROYALTY,
AND WE'RE IN THIS TOGETHER.
"BOOM" GOES THE DYNAMITE!
O'Leary: WOW!
HEY, AND I GOT TO TELL YOU, YOU --
ROBERT, THANK YOU FOR THAT OFFER.
YOU CONVINCED ME.
ARE YOU AT ALL NEGOTIABLE ON WHAT YOU GAVE US?
WOULD YOU CONSIDER COMING DOWN TO 20%?
I'LL DO THE 20% IF YOU DO THE DEAL RIGHT NOW.
INTERESTING.
$125,000, 20%.
LET'S DO IT.
CAN WE STILL GO BACK AND MAKE A PHONE CALL?
OH, MAN!
NO. WHAT DID I JUST SAY?
HE JUST SAID THIS WAS THE DEAL RIGHT NOW.
WHAT DO YOU WANT TO DO?
3...
2...
[ MURMURS ]
YEAH.
WE -- WE'D LIKE TO STEP BACK,
A-AND WE UNDERSTAND THAT YOU'RE OUT.
I'M OUT.
WHOA!
I THINK YOU'RE DOWN TO ONE OFFER.
SO, TO RECAP THEN,
YOU'RE OFFERING $125,000 FOR 10%, PLUS...
...DOLLAR PER UNIT TILL --
AND THEN 25 CENTS...
AND THEN 25 CENTS PER UNIT...
...IN PERPETUITY.
IS THERE ANY ROOM ON THE ROYALTY PORTION,
EVEN, SAY, 5 CENTS JUST TO SHOW A GOOD FAITH
THAT YOU REALLY BELIEVE IN WHAT WE'RE DOING?
YOU'LL WALK AWAY WITH THE 20 CENTS.
YOU'LL GET THE DOLLAR BACK.
YOU'LL HAVE YOUR EQUITY.
AND BECAUSE OF WHO YOU ARE AND YOUR PARTNERSHIPS,
WE WOULD LOVE TO TAKE THAT DEAL,
AND WE THINK THAT WE COULD REALLY DO WELL
WITH YOU IN THE FUTURE.
YOU GUYS, I REALLY -- I RESPECT EVERYTHING YOU'VE DONE,
BUT I DID SAY THAT THAT WAS MY FINAL OFFER.
OKAY.
AND SO IT IS --
THEN WE'D LIKE TO TAKE IT.
YOU'VE GOT A DEAL, LORI.
NICE.
[ WHISTLING ]
WE'RE GONNA SELL A LOT OF PLUGS.
IT'S A PLEASURE TO BE IN BUSINESS.
[ LAUGHS ]
[ LAUGHTER ]
OKAY.
WE LOOK FORWARD TO IT.
WE'LL TALK SOON.
Corcoran: CIAO.
GOOD TO SEE YOU GUYS. THANK YOU SO MUCH.
THAT WAS GREAT.
WELL, YOU GOT YOURSELF A GOOD DEAL.
THAT'S A GREAT DEAL FOR YOU.
AND I'LL SUPPORT THEM TOTALLY.
IT'S NOT EVEN THAT BAD FOR THEM.
GOOD BUSINESS IS ALWAYS GOOD BUSINESS.
IT'S AWESOME.
YOU KNOW, WE GAVE UP A LITTLE,
TINY BIT MORE, BUT WE DID IT.
YEAH, THAT'S REALLY GOOD. [ LAUGHS ]
Narrator: LAST SEASON, COREY WARD AND TREW QUACKENBUSH
IMPRESSED THE SHARKS AND CLOSED A DEAL WITH BARBARA CORCORAN
FOR THEIR GRILLED-CHEESE RESTAURANT FRANCHISE TOM+CHEE.
I'D SAY WE TAKE THE DEAL.
ALL RIGHT.
AWESOME.
LET'S SEE WHAT THEY'RE UP TO NOW.
[ SIZZLING ]
OH, IT'S A GREAT-LOOKING SANDWICH, GENTLEMEN.
SINCE BEING ON "SHARK TANK," OUR SALES HAVE BEEN INSANE.
Ward: BEFORE "SHARK TANK,"
IT TOOK US A YEAR TO REACH A MILLION DOLLARS IN SALES,
AND IN THREE MONTHS SINCE THE SHOW,
WE'VE ALREADY GONE OVER A MILLION DOLLARS.
WHAT CAN I GET YOU TODAY?
Ward: BEFORE "SHARK TANK,"
WE ONLY HAD 40 EMPLOYEES IN 3 LOCATIONS.
SINCE THE SHOW'S AIRED, WE'RE UP TO 80 EMPLOYEES
ACROSS SIX LOCATIONS AND OUR CORPORATE OFFICES.
THAT'S 100% JOB CREATION IN JUST 3 MONTHS.
WELL, I WANT TO WELCOME EVERYBODY TO THE FAMILY.
TODAY, WE'RE CLOSING DEALS
WITH OUR FIRST THREE FRANCHISEES SINCE "SHARK TANK."
WE'RE GONNA NOW HAVE TOM+CHEE
IN NEW JERSEY, TENNESSEE, AND KENTUCKY.
HELLO, EVERYBODY.
All: HEY, BARBARA!
I'M SO HAPPY TO BE WITH YOU,
AND I'M SO EXCITED TO MEET YOUR FIRST FRANCHISEES.
WORKING WITH BARBARA HAS BEEN GREAT.
SHE'S UNDERSTOOD OUR BUSINESS MODEL FROM THE VERY BEGINNING,
AND SHE'S MADE HERSELF AVAILABLE TO US
WHETHER IT'S THROUGH E-MAILS, VIDEO CHATS.
SHE'S THERE TO ANSWER OUR QUESTIONS,
AND WE DO HAVE A LOT OF THEM.
I WOULD LIKE A BARBARA BLUE, PLEASE.
JUST LIKE WE PROMISED ON "SHARK TANK,"
THE SHARK THAT INVESTED IN TOM+CHEE
WOULD GET A SANDWICH ON THE BOARD,
AND BARBARA DID, SO SHE GOT THE BARBARA BLUE --
SMOKED HAM, BRIE CHEESE, BLUEBERRY COMPOTE
ALL ON A YEAST-GLAZED DONUT. IT'S AMAZING.
[ LAUGHS ]
OUR "SHARK TANK" EXPERIENCE
HAS BEEN A ROLLER COASTER OF EMOTION.
TO THINK THAT WE STARTED IN A STREET TENT
AND NOW WHAT THE FUTURE HOLDS FOR US JUST BLOWS US AWAY.
All: THANK YOU, "SHARK TANK"!
[ ALL CHEERING ]
Narrator: NEXT UP ARE TWO DADS WHO'VE CREATED A PRODUCT
DESIGNED TO KEEP STUDENTS ORGANIZED.
HELLO, SHARKS.
I AM GREG CRONIN FROM CLINTON, MISSISSIPPI.
AND I'M DR. STEPHEN COACHYS.
I'M FROM RIDGELAND, MISSISSIPPI.
WE ARE SEEKING $175,000 FOR A 10% STAKE IN OUR COMPANY.
SHARKS, THAT IS CALLED DISORGANITIS.
Greiner: [ CHUCKLES ]
THERE ARE THREE SYMPTOMS --
LOST HOMEWORK, BEING LATE FOR CLASS, AND FALLING GRADES.
BUT I HAVE FOUND THE CURE, AND IT IS LOCKERBONES.
SHARKS, THIS IS A SIMPLE PRODUCT
THAT ELIMINATES THE MESS, REDUCES THE STRESS.
LOCKERBONES IS THE BEST.
AND REMEMBER,
AN ORGANIZED STUDENT IS A SUCCESSFUL STUDENT.
SO, SHARKS, COME ONE, COME ALL,
BUT JOIN US IN IMPROVING THE ORGANIZATIONAL SKILLS
OF OUR FUTURE LEADERS WITH THE NINTH WONDER OF THE WORLD...
Both: LOCKERBONES!
IT'LL TAKE JUST A MOMENT,
BUT I'D LIKE TO TAKE THIS OUT,
PUT IT RIGHT BACK, AND YOU'LL SEE
THAT'LL BE HELPFUL.
ALL RIGHT.
Coachys: WANT YOU TO KNOW AS HE'S PUTTING THAT TOGETHER
THAT THERE ARE NO TOOLS THAT ARE NEEDED WITH THIS AT ALL.
30 SECONDS -- IT'S IN AND OUT.
WHAT DOES ONE COST?
YEAH, BUT WHAT DOES IT COST?
A SINGLE IS $29.95,
AND A DOUBLE, WHICH IS NORMALLY THE 12-INCH, IS $39.95.
THIS MIGHT SHOW YOU THE PATENTED PRODUCT.
AREN'T KIDS GONNA MAKE THAT IN WOODSHOP?
[ LAUGHTER ]
NO, YOU KNOW WHAT? THERE'S A LOT OF CUTS IN THAT, MARK.
Coachys: ACTUALLY -- ACTUALLY, THEY MIGHT, BUT THEY CAN'T.
THERE'S A LOT OF PRECISION TO THIS. [ CHUCKLES ]
THEY CAN'T MAKE THAT, MARK.
THE REASON IS, IS BECAUSE THAT HAS BEEN PATENTED.
OH, SO, YOU'RE GONNA SUE A BUNCH OF 7th GRADERS.
HOW'D WE GET INVOLVED IN THAT?
NO, WE ARE GONNA GET 7th GRADERS TO PUT THAT IN THEIR LOCKER.
THEY'RE GONNA HAVE IT, NO PROBLEM.
YOU KNOW, HONESTLY, IT'S JUST EASIER TO BUY IT.
ABSOLUTELY.
ONCE YOU TAKE THE TWO SIDES, SETTLE THEM IN,
YOU TAKE ONE PIECE, AND YOU PUT IT
AT ANY LOCATION YOU WANT ON THAT TRACK SYSTEM.
THIS BECOMES THE FIRST VERTICAL DIVIDER
IN A LOCKER BECAUSE WHAT HAPPENS IS, FOLDERS FALL OVER.
THEY GET ON TOP OF EACH OTHER.
YOU CAN'T REALLY KEEP THINGS STANDING UP.
YOU SLIDE IT IN. YOU PUT IT IN PLACE.
SO, NOBODY ELSE...
YOU NOW HAVE VERTICAL ABILITY TO HOLD THE SHELVES.
AND HERE'S A QUESTION.
NOBODY ELSE, YOUR COMPETITORS...
RIGHT.
THEY DO NOT.
AND HERE COMES YOUR NOOK AND CRANNY.
YOU GET TWO OF THESE.
YOU CAN PUT THEM ANYWHERE YOU WOULD LIKE.
YOU CAN PUT READING BOOKS.
YOU CAN PUT YOUR CELLPHONE.
LET ME TELL YOU JUST BRIEFLY HOW THIS BEGAN.
ABOUT FOUR YEARS AGO,
MY DAUGHTER WAS GOING TO MIDDLE SCHOOL.
IT WAS THE NIGHT BEFORE
SHE NEEDED HER LOCKER ORGANIZED THE NEXT MORNING.
I WENT OUT TO THE GARAGE,
TOOK MY TABLE SAW OUT THE BACK PORCH,
AND I CREATED THE FIRST ONE.
I'M A CONTRACTOR AND A DEVELOPER, SO I HAD THE TOOLS.
IT WAS, UH, YOU KNOW,
ROUGH AROUND THE EDGES BUT VERY FUNCTIONAL.
SO, SHE WOKE UP THE NEXT MORNING, LOOKED AT IT,
AND GOES, "DAD, I'M NOT TAKING THIS TO SCHOOL."
EXACTLY.
Cronin: BUT SHE KNOWS ME, AND WE'VE DONE THIS MANY TIMES.
KIDS NEVER APPRECIATE ANYTHING WE DO FOR THEM EVER.
NO.
WELL, THE TELLING SIGN WAS, TWO GIRLS WALK BEHIND US --
FIRST DAY AT A NEW SCHOOL -- AND THEY LOOKED, AND THEY SAID,
"COOL. WHERE'D YOU GET THAT WOODEN ONE?"
WE MADE ABOUT EIGHT OR NINE OF THEM
FOR JUST CLOSE PEOPLE SHE HAD MET THAT FIRST LITTLE BIT,
BUT THEN THE SCHOOL ORGANIZATIONAL DIRECTOR,
THE ONE WHO GOES AND CHECKS THE LOCKERS,
CONTACTED ME AND SAID, "THIS IS -- THIS REALLY WORKS.
IT'S FUNCTIONAL."
AND HE ORDERED 500 OF THEM ON THE SPOT.
WE GOT 60 ORDERS.
Coachys: WE HAVE MORE PARENTS COME TO US AND SAY,
"WHY DIDN'T WE HAVE THAT WHEN WE WERE IN SCHOOL?"
HOW MANY PARENTS HAVE YOU SOLD THEM TO?
WE'VE SOLD 500 UNITS.
HOW LONG HAVE YOU BEEN SELLING?
TWO YEARS OF THIS PARTICULAR VERSION.
WE ARE HERE TO REQUEST THE MONEY TO PRODUCE THIS IN PLASTIC.
WHAT'S YOUR TOOLING GONNA COST TO DO THIS IN PLASTIC?
WE PAID APPROXIMATELY $28,000 TO TOOL UP
FOR THE PREVIOUS ONE ON A PRIOR EFFORT...
ON A PRIOR ONE.
...THAT FAILED.
YOU NEVER GOT DISTRIBUTION.
Greiner: WAIT, WAIT. LET HIM -- LET HIM TALK.
THIS WAS -- THIS WAS A PROTOTYPE, OKAY?
IT'S AN ENTREPRENEUR'S THING. WE FAILED.
Cuban: WHY DID IT FAIL?
WE WENT IN -- BECAUSE IT WAS --
IT DID NOT HAVE ANY OF THIS TRACK SYSTEM.
WHAT WE'VE DONE IS, TWO YEARS AGO,
WE CAME UP WITH THIS DESIGN.
WE GOT THE DESIGN PATENT IN EARLY JULY OF 2011.
DO YOU HAVE A UTILITY PATENT OR JUST A DESIGN?
JUST A DESIGN.
O'Leary: YOU'VE HAD IT FOR FOUR YEARS.
WHY ISN'T IT UBIQUITOUS IN DISTRIBUTION?
WE'VE ONLY -- NO, WE'VE ONLY HAD THIS FOR TWO YEARS.
YOU'VE HAD THIS -- YOU'VE HAD THIS FOR TWO YEARS,
TWO YEARS IS A LONG TIME.
RIGHT. THIS IS ONE SCHOOL YEAR LAST YEAR
WAS WHEN WE INTRODUCED THIS DESIGN, OKAY?
DID YOU GO INTO THE SCHOOL AND SHOW IT?
WE HAVE 500 IN THIS SCHOOL, WHICH IS 60% PENETRATION.
ME TOO. GOD.
YEAH, I WANT TO -- JUST LET ME FINISH.
O'Leary: WHEN YOU GOT IN FRONT OF THE --
WE'RE ALL STILL CONFUSED.
I WANT TO HEAR WHERE YOU'RE IN FRONT OF THE STAPLES BUYER
AND YOU SAY, "LOOK AT THIS FANTASTIC LOCKER SYSTEM,"
AND HE OR SHE SAYS... WHAT DO THEY SAY?
YES.
...WE HAVE BEEN IN FRONT OF A MAJOR RETAILER, OKAY?
THAT'S ONE.
THEY LOVED THE PRODUCT IN PLASTIC.
THEY LOVED THE FUNCTION.
WE HAVE A CONTRACT THAT HAS BEEN NEGOTIATED,
PUT IN PLACE, OKAY, FOR A 10,000-UNIT ORDER
FROM THE LARGEST ONLINE RETAILER
THAT WILL FULFILL THEM THEMSELVES
OF THIS PRODUCT THE WAY IT IS.
OKAY?
IT IS AMAZON.
UP TO A MILLION, UP TO A MILLION.
OKAY? THIS IS FOR THE WOOD VERSION.
Cronin: THAT'S FOR THE WOOD VERSION.
THEY'RE FINE WITH THAT.
IT IS A CONTRACT THAT'S BEEN EXCHANGED BUT NOT EXECUTED.
O'Leary: WHAT? WHY?!
WE DO NOT HAVE THE ABILITY TO FULFILL THAT 10,000
'CAUSE WE DO NOT HAVE THE CAPITAL
TO PUT THE INVENTORY IN PLACE AT THIS TIME.
THEY'RE WAITING.
SO, GO TO THE NEXT.
ALL RIGHT, NOW NEXT TO RETAIL.
STAPLES SELLS 30% OF SCHOOL SUPPLIES.
WE HAVE NOT APPROACHED THEM.
WHAT?! YOU NEVER CALLED THEM?
NO.
WAIT A MINUTE.
WAIT, WAIT, WAIT.
ARE YOU KIDDING?
HOLD ON. LET ME --
WAIT A SECOND.
I LET THIS PRODUCT STAY IN ONE PILOT SCHOOL
ON PURPOSE FOR ONE MORE YEAR.
SO, YOU DIDN'T WANT TO SELL IT.
NOW HOLD ON.
YOU STOPPED SELLING.
Coachys: NO, WE DON'T HAVE IT THERE.
Greiner: WAIT.
I HAVE TO EXECUTE YOU NOW.
I LET THIS PRODUCT STAY IN ONE PILOT SCHOOL
ON PURPOSE FOR ONE MORE YEAR.
SO, YOU DIDN'T WANT TO SELL IT.
NOW HOLD ON.
YOU STOPPED SELLING.
Coachys: NO, WE DON'T HAVE IT THERE RIGHT NOW.
Greiner: WAIT.
I HAVE TO EXECUTE YOU NOW.
A DESIGN PATENT IS NOT EXTREMELY STRONG.
UNTIL YOU CAN GO QUICK AND FAST IN THIS MARKET --
THEY CAN BUY ONE AT AMAZON AND KNOCK IT OUT.
YOU NEED TO MAKE IT OUT OF PLASTIC.
AND YOU NEED TO BRING THE PRICE DOWN.
YES, HE DOES. WOOD IS TOO EXPENSIVE.
Cronin: YES, WE DO, AND THAT'S WHAT --
HE'S GOT TO CHANGE THE COLOR, AS WELL.
THAT'S WHAT STAPLES AND OFFICE DEPOT WANT.
HOW DO YOU KNOW THAT?
OFFICE DEPOT WANTS IT.
Coachys: THEY --
YOU NEVER CALLED THEM.
AND THERE'S ANOTHER LARGE RETAILER.
ALL THEY WANT IS IT IN PLASTIC AND COLOR.
I REALLY WANT TO NAIL THIS DOWN...
...BECAUSE THIS MATTERS A LOT.
CERTAINLY, ABSOLUTELY.
AMAZON'S GOING TO BUY FROM YOU,
AND THEY ARE SAYING, "I AM GOING TO BUY UP FRONT.
HERE'S A PLEDGE." HOW MUCH?
10,000 UNITS, UP TO A MILLION UNITS.
WE SHIP TO THEM.
THEY WAREHOUSE IT. THEY SELL IT.
THEY HAVE TERMS. THEY PAY US LATER.
THIS IS NOT A P.O. FROM A TRADITIONAL RETAILER.
BUT, GREG, IF THEY DON'T SELL IT, YOU HAVE TO BRING IT BACK.
I GOT IT.
IT'S A CONSIGNMENT OFFER.
IT'S A CONSIGNMENT OFFER, YEAH, VERY MUCH.
ALL RIGHT, I LOVE THE PROOF OF CONCEPT, BUT LET'S BE HONEST.
YOU'RE AT THE VERY BEGINNING.
WE ARE READY TO GO TO THE WORLD NOW.
CORRECT.
I'M READY TO GO, TOO.
Coachys: ABSOLUTELY. WE WANT YOU TO COME WITH US.
I LIKE TO GO ON A TRIP.
WHICH WORLD ARE YOU ALL GOING TO?
WHY IS THE COMPANY WORTH $1.75 MILLION?
THERE ARE 98,000 SCHOOLS IN THE UNITED STATES.
OKAY.
THERE ARE APPROXIMATELY 50 MILLION SCHOOL LOCKERS.
IF YOU TAKE ONLY .05% OF THE MARKET --
GREG, YOUR VALUATION IS BASED ON SIZE OF MARKET. GOT IT.
NOT SURE I LIKE THAT ANSWER,
BUT LET ME ASK YOU A SECOND QUESTION -- MY FINAL QUESTION.
WHERE DOES MY $175,000 GET YOU TO?
DOES IT GET THE PRODUCT INTO STAPLES?
I'M GONNA TELL YOU YES, AND THIS IS HOW.
ONE, TOOLING GETS DONE.
OKAY.
TWO, INITIAL INVENTORY IS WHAT WE'LL BE USING THE MONEY FOR.
TO FILL PURCHASE ORDERS OR JUST TO BUILD INVENTORY?
WELL, HE DOESN'T HAVE THE ORDERS.
HE HAS TO GO OUT --
WE'RE GONNA GO EXECUTE THE ORDER WE HAVE ON THE TABLE
WITH THE CONFIDENCE WE CAN FULFILL IT.
Cuban: I'M GONNA SIMPLIFY IT HERE, GUYS.
WHERE YOU'VE KILLED IT...
IS SELLING IT IN SCHOOLS, WHERE IT CATCHES FIRE.
IT'S VIRAL. THE KIDS LOVE IT.
BUT NO DISCUSSION WHATSOEVER OF SELLING IT IN THE SAME MANNER
TO THE 110,000 SCHOOLS.
ALL YOU HAVE TO DO IS GO TO THE MIDDLE SCHOOL DOWN THE STREET
AND WAIT FOR THE ORDERS AND THEN JUST GO TO ONE MORE SCHOOL,
KILL IT AGAIN.
GO TO ONE MORE SCHOOL, NOT THIS BIG CONSIGNMENT ORDER TO AMAZON
WHERE YOU COULD TAKE ALL YOUR INVENTORY.
IT COULD ALL BE SENT BACK IF IT DOESN'T SELL THROUGH.
RESPECTFULLY -- RESPECTFULLY, WE WERE NOT FINISHED...
YOU KNOW WHAT, MARK? THERE'S NOTHING WRONG WITH WHAT THEY DID.
...WITH THE RESPONSE TO HIM,
AND I KNOW I DIDN'T GIVE IT QUICK ENOUGH TILL WE GOT AN ANSWER.
YEAH, NO, I DON'T THINK YOU'RE ON THE WRONG TRACK, GREG.
Cuban: YOU'RE FOLLOWING THE DREAM, NOT THE GREEN,
SO FOR THAT REASON, I'M OUT.
Herjavec: YOU KNOW WHAT? HE IS SO WRONG.
ROBERT AND I DON'T AGREE WITH THAT AT ALL.
O'Leary: WELL, WAIT A SECOND. WAIT A SECOND.
HEAR ME ON THIS -- NEW YORK, FLORIDA, TEXAS, CALIFORNIA.
THAT'S WHERE ALL THE SCHOOLS ARE, OKAY?
WHAT YOU WANT TO DO IS SELL 10% OF THE LOCKERS
IN THOSE FOUR STATES, AND YOU'LL BE FILTHY RICH!
GREAT PRODUCT, BUT YOU DIDN'T TALK ABOUT
A DISTRIBUTION STRATEGY FOR JUST GETTING TO THE SCHOOLS.
I'M OUT.
WHAT I THINK YOU'RE DOING HERE IS NUTS!
I THINK YOU COULD GET EVERY KID IN EVERY SCHOOL
TO BE PEDDLING FOR YOU, AND THEY'RE EASY TO RECRUIT
'CAUSE THEY'RE NOT LOOKING FOR A LOT OF MONEY.
YOU'RE MISSING THE BEST OPPORTUNITY.
I'M OUT.
THREE SHARKS OUT, TWO STILL IN.
LET ME -- LET ME TELL YOU WHERE I'M AT
'CAUSE I-I THINK I'VE HEARD ENOUGH TO MAKE A DECISION.
THE IDEA OF SELLING ON AMAZON ON CONSIGNMENT...
IT'S NUTS!
STAPLES HAS 30% OF THE MARKET.
TO ME, THE PATH IS VERY SIMPLE. GET IT TO STAPLES.
I LIKE THE PRODUCT.
IT'S PROBABLY THE BEST PRODUCT I'VE SEEN FOR THIS APPLICATION.
HANG ON.
I DON'T WANT TO DO THIS DEAL ON MY OWN, OKAY?
OKAY. ALL RIGHT.
I THINK LORI'S INTERESTED IN IT.
OKAY.
I'LL GIVE YOU $87,500 --
HALF THE MONEY YOU'RE LOOKING FOR -- FOR 25%.
LORI, IF SHE'D LIKE TO DO IT...
...IT'S UP TO HER.
$87,500 FOR THE OTHER 25%.
LET ME BE CLEAR BEFORE THE OTHER PEOPLE START MAKING FUN OF IT
'CAUSE I'M THE ONLY GUY WHO MADE AN OFFER AND LORI MAYBE.
WE ARE AT THE BEGINNING.
RIGHT.
IT'S NOT LIKE YOU GUYS CAME HERE WITH $10,000 OF REAL ORDERS.
IT'S NOT LIKE YOU CAME HERE WITH A MILLION-DOLLAR COMPANY
AND I'M TRYING TO TAKE ADVANTAGE OF YOU FOR 50%.
IT'S A START-UP.
THERE'S FOUR OF US.
WE EACH OWN 25%.
THAT'S MY OFFER. I DON'T KNOW WHERE LORI IS.
I LIKE IT.
I'M IN WITH YOU.
GREG, THERE IT IS. THAT'S OUR OFFER.
WHAT DO YOU SAY?
SO, WHAT -- WHERE ARE YOUR THOUGHTS ON THE...
I-I THINK THAT -- I THINK THAT WE CAN WORK --
WITH TWO SHARKS, WE GOT MORE.
WE'VE GOT DOUBLE THE CONTACTS.
SO, YOU'RE GONNA BE EATEN ALIVE BY THESE GUYS?
I DON'T THINK WE'RE GONNA BE EATEN ALIVE.
I THINK EVENTUALLY, WE'LL ALL EAT TOGETHER.
YOU GOT AN OFFER. WHAT ARE YOU GONNA DO?
I AGREE. WE WILL ACCEPT THE DEAL.
Herjavec: THANK YOU.
LORI, ROBERT, LET'S DO THE DEAL.
ALL RIGHT.
YEAH, NICE JOB.
GOOD DAD. GOOD DAD.
GOOD DAD.
WE'RE GONNA STRAIGHTEN OUT LOCKERS IN AMERICA.
YEAH, THANK YOU SO MUCH.
LORI, APPRECIATE IT.
I THINK IT'S A HUGE PROBLEM, AND THAT'S A GREAT SOLUTION.
Herjavec: IT'S A GREAT PRODUCT.
THANK YOU, GUYS.
GOOD LUCK, GUYS. CONGRATULATIONS.
CONGRATULATIONS.
WELL, IT WAS A LITTLE BIT MORE THAN WE WANTED TO GIVE,
BUT WE GOT A DEAL WITH TWO SHARKS!
YAY!
BOOM!
Narrator: NEXT INTO THE TANK IS AN ENTREPRENEUR
WITH A WAY TO EASE THE DIFFICULTY
OF DINING OUT WITH KIDS.
HELLO, SHARKS. I'M BEN ALEXANDER.
I'M FROM SUNNY TAMPA, FLORIDA.
AND I'M ASKING YOU FOR $250,000 FOR 30% OF MY WILD COMPANY.
WHOO!
HAVE YOU EVER GONE TO A RESTAURANT
AND YOU ORDER YOUR FOOD
AND THERE'S NOTHING THE RESTAURANT CAN DO
TO MAKE THE FOOD COME OUT FASTER?
YOU MIGHT BE IMPATIENT,
BUT YOU KNOW HOW IT IS WHEN YOU HAVE KIDS.
OH, MY GOSH. THEY'RE SWINGING FROM THE CHANDELIERS.
THEY'RE RUNNING UNDER THE TABLE, OVER THE TABLE.
IT'S CRAZY!
WELL, THAT'S WHY RESTAURANTS TURN TO ME
AND MY VERY UNIQUE, VERY DIFFERENT,
VERY UNEXPECTED COMPANY THAT USES CREATIVITY...
Herjavec: OH, WOW!
...TO PUT BALLOONS IN RESTAURANTS!
I AM BALLOON DISTRACTIONS!
HAPPY DAY!
[ LAUGHTER ]
WE ARE THE NATION'S PREMIER TALENT AGENCY
FOR BALLOON ARTISTS THAT WE SEND
INTO NATIONAL BRAND RESTAURANTS.
WE ARE THE FIRST COMPANY TO EVER TAKE THIS
AND PUT THIS ALL OVER THE UNITED STATES.
WE MADE SOMETHING SPECIAL FOR EACH OF YOU.
Greiner: [ CHUCKLES ] YAY.
MR. HERJAVEC, I KNOW YOU LOVE MOTORCYCLES.
I DO.
SO I MADE YOU A VERY COOL MOTORCYCLE.
OH, HOW CUTE!
VERY COOL!
LORI, I KNOW THAT -- I KNOW THAT YOU ARE THE ABSOLUTE,
MOST AWESOME QVC SHARK.
YOU LOOK SO MUCH BETTER NOW.
AND -- AND, MR. WONDERFUL,
I ACTUALLY MADE YOU A CHIQUITA BANANA...
Corcoran: OH, MY GOD.
...FRUIT HAT.
DOESN'T HE LOOK BEAUTIFUL, SHARKS?
NOW, BARBARA, YOU ARE THE QUEEN OF BUILDING SALES ORGANIZATIONS.
I'VE ALWAYS WANTED TO BE A QUEEN. THANK YOU.
YOU ARE.
AND LAST BUT CERTAINLY NOT LEAST, MR. CUBAN...
THANK YOU.
...I'M A BIG FAN OF THE MAVERICKS,
I LIKE IT.
...BASKETBALL PLAYER.
I WOULD LOVE FOR YOU TO JOIN ME.
[ LAUGHTER ]
[ LAUGHS ] I'M AN EMOTIONAL GUY.
OH, MY GOD.
YOU HAVEN'T EVEN STARTED ASKING ME.
WAIT TILL WE SAY SOMETHING.
I WOULD LOVE TO HAVE YOU GUYS COME IN
AND HELP ME BLOW THIS UP.
[ SIGHS ]
[ SIGHS ]
WHOO!
EXHAUSTING.
OH, MY GOD.
I-I NEED TO ASK THE MOST IMPORTANT QUESTION.
ARE YOU LIKE THIS ALL THE TIME?
I JUST WANTED TO COME OUT HERE
AND SHARE THE JOY THAT I HAVE IN MY HEART ABOUT THIS.
I'M VERY WORRIED YOU'RE GOING TO SPONTANEOUSLY COMBUST.
NO KIDDING.
LET'S TALK NUMBERS, OR I'M TAKING OUT MY PENKNIFE.
[ LAUGHS ]
WE DO OVER $500,000 A YEAR IN SALES.
OKAY.
I'VE DONE $4 MILLION SINCE INCEPTION.
WOW.
WHAT WERE YOUR SALES LAST YEAR, BEN?
THE SALES WERE ACTUALLY A LITTLE HIGHER.
THEY WERE ACTUALLY $650,000.
Greiner: WOW, BIG DROP.
SO, WHY ARE SALES GOING DOWN?
I RECRUITED A LOT OF MAGICIANS
WHEN THE ECONOMY WAS REALLY SLOW AND THEY WERE HURTING.
AND THEN THE ECONOMY GOT FASTER,
AND THEY STARTED GETTING MORE BOOKINGS.
I COULDN'T FIND PEOPLE TO RUN REGIONS,
AND THEN WHAT HAPPENED --
I HAD THE CLOWN COMMUNITY CRITICIZE ME ONLINE.
I'M NOT JOKING.
[ LAUGHTER ]
LIKE, WHAT -- WHAT WERE THEY SAYING?
OH, JUST, LIKE, "YOUR BUSINESS MODEL, IT'S TERRIBLE."
I'M THE SAM WALTON OF BALLOONS.
YOU DON'T WANT TO *** OFF THE CLOWN COMMUNITY!
WHAT BUSINESS ARE YOU IN?
YOU HAVEN'T REALLY TOLD US.
OKAY, RESTAURANTS PAY US A FEE
TO HAVE A BALLOON ARTIST COME IN AND DO BALLOONS AFTER --
DISTRACT THE GUESTS ON A REGULAR BASIS.
YES, WE ARE.
OKAY, SO YOU BOOK "TALENT."
MM-HMM.
AND THEY GO OUT TO RESTAURANTS.
YES. LET ME EXPLAIN SO YOU UNDERSTAND.
I REALLY WANT TO BUILD SOMETHING
SO THAT I CAN FIND REGIONAL PARTNERS.
I'VE BEEN PUTTING OUT ADS AND SPENDING MONEY,
AND I HAVE REGIONAL PARTNERS WHO GET STARTED AND GO TO THIS
AND -- AND DON'T PULL THE TRIGGER.
I SAY TO THE REGIONAL PARTNER, "I'M GONNA GIVE YOU A PERCENTAGE
"OF THE REVENUE FROM THE RESTAURANTS.
"YOU HAVE TO TRAIN PEOPLE.
"THEY ALREADY KNOW THE BALLOONS
'CAUSE YOU HAVE TO KNOW THE BASICS."
AS A MATTER OF FACT,
I GO OUT AND DO BALLOONS IN RESTAURANTS MYSELF.
OH, NO, BEN, YOU GOT TO FOCUS. YOU GOT TO FOCUS.
TELL US THE STRUCTURE.
THE REGIONAL PARTNER SELLS RESTAURANTS, TRAINS PEOPLE,
AND WATCHES THE SCHEDULE WEEKLY,
SO THEY'RE REALLY LIKE A REGIONAL MANAGER.
AND HOW MUCH DO YOU CHARGE THE RESTAURANT?
I CHARGE $40 TO $60 A NIGHT.
WHAT DOES THE BALLOON ARTIST CHARGE THE KIDS PER BALLOON?
CAN I HAVE HER ANSWER THIS QUESTION?
SHE'S A REAL BALLOON ARTIST.
THIS IS JOSANNA.
WHAT WE DO IS, WE HAVE A TIP BUTTON
THAT SAYS WE TWIST FOR TIPS,
AND WHAT WE DO AS A "SUBTLE HINT" IS,
WE STICK A $5 BILL IN THERE.
SO, WHAT ARE YOU GONNA USE THE MONEY FOR?
Alexander: OKAY.
IT DOESN'T REALLY SOUND LIKE YOU NEED THE CASH.
I WANT TO FRANCHISE.
I DO, BECAUSE I WANT TO FRANCHISE THIS IDEA.
OH, MAN, YOU'RE GONNA DRIVE ME CRAZY.
Herjavec: YOU DON'T NEED A FRANCHISE.
YOU NEED TO BUILD AN INFRASTRUCTURE.
YOU NEED PEOPLE TO MANAGE.
I NEED A STRATEGIC PARTNER WHO CAN GIVE ME A LITTLE GUIDANCE.
IF YOU THINK THAT FRANCHISING IS A BAD IDEA
IT'S A REAL BAD IDEA.
I'M TEACHABLE, GUYS. IF THIS IS A SALES ORGANIZATION --
BUT YOU'RE ASKING ME TO GIVE YOU $250,000,
AND YOU DON'T HAVE A PLAN FOR WORLD DOMINATION
OF BALLOON TWISTERS.
IF I DON'T FRANCHISE,
I WANT TO BRING ON A FULL-TIME RECRUITER...
...WHO UNDERSTANDS THIS.
THAT'S WHAT I NEED.
DING, DING, DING, DING!
OPERATIONS AND RECRUITING.
I CAN SELL 20 RESTAURANTS A DAY.
YOU -- EVERY REGION I VISITED THIS SUMMER, 17,000 --
OKAY, BEN, BEN, BEN --
BEN, YOU -- YOU GOT TO -- YOU KNOW WHAT?
YOU'RE A GREAT SALESMAN, BUT YOU DIDN'T SHOW ME
HOW I CAN GIVE YOU $250,000 AND GET A GREAT RETURN.
I'M OUT.
OKAY. MISS CORCORAN...
Corcoran: YES?
...YOU'VE BUILT SALES ORGANIZATIONS.
YOU WANT TO KNOW WHAT THIS IS?
THIS IS EXACTLY LIKE BUILDING A REAL-ESTATE BUSINESS
WITH MULTIPLE OFFICES -- NO DIFFERENT.
YEAH.
SO I REALLY UNDERSTAND YOUR BUSINESS.
I KNOW YOU DO.
YOUR WHOLE ORGANIZATION IS RELIANT
ON THE RIGHT SALESPERSON IN EACH REGION.
THAT'S THE KEY TO THIS BUSINESS.
IT'S NOT YOUR ABILITY TO SELL.
IT'S YOUR ABILITY TO RECRUIT SALESPEOPLE.
YOU'VE NOT SUCCEEDED IN DOING THAT,
AND THAT'S AN ACHILLES' HEEL.
IN YOUR BUSINESS, THAT'S GONNA *** YOU.
YOU'RE A PHENOMENAL SALESMAN.
BUT YOU'RE NOT A SALES MANAGER.
I WOULD BE SO SCARED PUTTING MY MONEY IN YOUR BUSINESS.
I'M SORRY. I'M OUT.
Greiner: I'M GONNA TELL YOU WHAT I THINK.
IT IS AN ADORABLE IDEA,
BUT I HAVE SALES REPS THAT WORK UNDER ME,
AND ONE OF THE MOST IMPORTANT THINGS IS,
IS THAT THEY'RE VERY FOCUSED AND ORGANIZED.
AND HERE, I HAD SO MUCH TROUBLE
UNDERSTANDING THE BUSINESS PLAN AND MODEL
THAT I THINK IT WOULD BE VERY DIFFICULT FOR ME
TO INVEST AND GIVE YOU MY MONEY.
I UNDERSTAND.
SO FOR THAT REASON, I'M OUT.
OKAY.
MR. CUBAN?
YOUR -- YOUR BUSINESS IS STRUCTURED WRONG,
BUT THAT'S THE BAD NEWS.
THE GOOD NEWS IS, IF YOU GET IT TOGETHER
AND YOU GET YOUR SALES UP OVER A MILLION DOLLARS,
YES.
...PARTICULARLY SOMEONE WHO'S ALREADY GOT OFFICES IN PLACE.
AND YOU COULD SELL IT FOR MILLIONS.
SHUT UP!
WHOA.
MY SUGGESTION IS,
INSTEAD OF USING REGIONAL MANAGERS
AND REGIONAL PARTNERS ON A COMMISSION BASIS,
YOU GO FIND THE BEST RECENT COLLEGE GRADUATE
MANAGEMENT TALENT THAT YOU CAN FIND.
YEAH, PUT THEM ON A SALARY.
IT DOESN'T HAVE TO BE A LOT.
GIVE THEM SOME COMMISSION, GIVE THEM DRAW,
OKAY.
BUT DEVELOP MANAGEMENT TALENT.
YOU'RE NOT READY FOR ME YET.
I'D GO CRAZY, AND FOR THOSE TWO REASONS, I'M OUT.
O'Leary: I LIKE YOUR BUSINESS,
BUT YOU'RE MISSING THE PARTNER THAT DOES THE OPERATIONS.
HAD THEY BEEN HERE SITTING BESIDE YOU --
THAT GHOST, THAT CLOWN, WHATEVER IT WAS --
I WOULD'VE PROBABLY DONE YOUR -- YOUR DEAL.
I LIKE IT 'CAUSE IT'S SO UNIQUE,
AND I KNOW HOW TO SELL THIS BUSINESS IN A COUPLE OF YEARS.
THE RICHES ARE IN THE NICHES, SHARKS, AND YOU KNOW WHAT?
WE ALREADY HAVE -- WE ALREADY HAVE --
YOU GOT TO LISTEN!
O'Leary: BUT THE POINT IS, YOU -- YOU --
YOU CAN'T GET $250,000 FROM ANYBODY IN HERE,
NOT THE WAY YOU'RE STRUCTURED RIGHT NOW.
INSTEAD OF LEAVING WITH A HEAVY HEART
AND A CRYING CLOWN, YOU SHOULD SAY,
"I'M GONNA TAKE THAT ADVICE AND RUN WITH IT."
BUT TODAY, I'M OUT.
Cuban: THANK YOU.
Greiner: THANK YOU FOR OUR HATS.
OH, DON'T DO THAT!
OH, YOU'RE SO MEAN! DON'T POP 'EM!
KEVIN!
OH!