00:00First into the tank is a better way to carry your essentials.
00:07Hi there, I'm Meredith Eureka and I am the owner of Makeup Junkie Bags and I'm here today
00:21seeking $200,000 for 15% of my company.
00:25I have created the most multifunctional bag a person can own.
00:29You see, I've always been knee deep in beauty products, but storing my obsession proved
00:33to be difficult, especially when traveling.
00:36Couldn't find what I needed, so I made myself one.
00:40I wanted it to lay completely flat on a surface, unlike traditional bags that dump over sending
00:45product all over the counter.
00:49I wanted it to be leak-proof.
00:50I have a leak-resistant interior and I use fabric so beautiful you can even double it
00:56as a clutch for a night out.
00:59Everybody asked me where I got my bag.
01:02They couldn't find them anywhere, so I knew I had something special.
01:06I put one picture on social media.
01:08It went viral.
01:09I'd solved a problem so many people had and the bag started flying.
01:16One day a store called me and said, do you wholesale?
01:20I frantically searched, what is wholesale?
01:27We absolutely do.
01:28How can I help you?
01:29Same thing when I landed my first small franchise.
01:33The buyer called and said, and we assume that you barcode.
01:36Hold please.
01:37What is barcoding?
01:38Absolutely.
01:39What else do you need?
01:45I quickly turned my one woman sewing show into a full-blown made in the USA operation
01:51now carried by 1,200 stores nationwide.
01:55My only business coaches are the free sites on the internet.
01:57I need a mentor, an investor, which is why I'm here.
02:01So tell me guys, do I have this deal in the bag?
02:05I have samples for you.
02:07Great presentation.
02:10And these are yours to keep.
02:12Take them home and stuff them and then you'll get the magic.
02:14There you go.
02:15Can't wait.
02:16I'm going to put a little sword in this.
02:17Lovely.
02:19Glory.
02:20Mix and match of sizes.
02:21Thank you very much.
02:22It's wonderful.
02:23Ah, a Wonder Bag.
02:25Santa.
02:27Mark.
02:28It's like Christmas.
02:29So I was sewing these in my kitchen.
02:30The first 12 weeks I started, I did over $100,000 in sales, just me at my little kitchen table.
02:43Wow.
02:44So the lay flat design, it has max capacity storage while taking up no space in a travel
02:49item.
02:50And then I have a men's line called Man Junk.
02:51Man Junk.
02:52So what are your sales right now?
02:53I'm about 18 months old and I'm at about 1.1 and a half million.
02:54Wow.
02:55It's about time we got somebody that knows how to sell on here.
02:56You deserve an Ichi Wawa Karamba.
02:58That's unbelievable.
02:59I make these in house.
03:00I tried out a small manufacturer who had horrible quality crooked zippers and I'm like, I can't
03:01sell this.
03:02I'm a details person.
03:03Every detail matters.
03:04So I'm going to show you how I make them.
03:05I'm going to show you how I make them.
03:06I'm going to show you how I make them.
03:07I'm going to show you how I make them.
03:08I'm going to show you how I make them.
03:10And he was very rude to me and he said, the only way to control your quality is to manufacture
03:24yourself.
03:25And I said, sir, yes, sir, I bought industrial equipment with all of my profits, hired seamstresses
03:31and we make over 6,000 bags a month now in Houston.
03:35This is a three clap presentation so far.
03:38Wow.
03:39Wow.
03:40So what does it cost you to make this one and this one?
03:43Okay.
03:44So it's the medium one, the black and pink in your hand is going to be about $6.75.
03:49The large one's going to be closer to $7.50 just for the extra fabric.
03:53And what do you sell this for?
03:55We're 90% wholesale and so that bag wholesales for $24 and it retails for $50.
04:00You have great margins.
04:03Do you own a hundred percent of the company?
04:05I do.
04:06We're a debt free company.
04:07I had my little nest egg that my sweet husband gave me.
04:10It was actually a down payment he was going to get a new truck for.
04:13And he's like, you really think you could sell these bags?
04:15And I'm like, look at how many orders I got, honey.
04:18Three months later, he got a new job in Houston.
04:20He's in the oil field and they gave him this like decked out brand new sales truck.
04:25And I was like, holy guacamole.
04:28Wow.
04:29Meredith, like, okay, you're doing great.
04:33So as someone who I've owned Spanx for 18 years, I own a hundred percent of it.
04:38So it's a big decision to give up equity.
04:40It is.
04:41And I thought about it long and hard.
04:43I want to increase my production, whether it's in the USA, whether it's overseas.
04:48Because today, if a big box store walked up to me and they're like, oh, we love it.
04:51We love it.
04:52Let us have it.
04:53I'd say, you can have it.
04:54I can't make it because I can make about $6,000 a month and we sell out all the time.
05:01So many in the fashion space over the decade of Shark Tank have heard that call to go into
05:07big box and go into retail only to be slaughtered later.
05:11Are you hell bent in going into retail?
05:13Right now, because that's what the bread and butter comes from, it is.
05:16Yeah, but I'm not talking about these boutiques that are paying you, I bet, pretty quickly.
05:20I'm talking about the big boxes.
05:21Yeah.
05:22They eat people like you like a snack.
05:26So on top of trying to get the big fish, I also want brand awareness.
05:30I want women to understand how wonderful these are.
05:33I've talked to all these PR companies who said, girl, we can get your product floating
05:36into the universe.
05:37I just need a $5,000 a month retainer is all I need.
05:40Well, I can't sink that much cash in when I'm a cashless business.
05:42Wait, wait, wait.
05:43How many words a minute do you talk?
05:45Well, Barbara, I don't have the data on that right now.
05:52And you know what I think?
05:53What are you doing?
05:54It's thinking the short on cash is a liability.
05:56It's not.
05:57It's a great asset.
05:58I remember, as a young businesswoman, never having near the money to match my dreams.
06:05But it was because I had to spend every penny so wisely that made me secure my footing and
06:11made me grow a big business.
06:13I would suggest you maybe look at yourself as having the whole shoe match.
06:18We don't see entrepreneurs that are as phenomenal as you are.
06:23We have great product.
06:25So I would be unconscionable going in with you, because I don't think you need anybody.
06:28Fill him out.
06:29So what I'm hearing you say is your biggest challenge is being able to provide the product.
06:34Your demand is greater than your ability to make it.
06:37So I would spend all of your time solving that problem.
06:40I'm not going to offer you, because I want you to keep your business.
06:44So I'm out.
06:45What's going on in all those heads over there, everybody?
06:52Marilyn, I'll keep it simple.
06:56You're amazing, but your business is not one I can relate to.
06:59I'm out.
07:03What are you going to do, Lori?
07:06Well, you know, Meredith, I was going to say, I'm out.
07:18But you changed my mind.
07:24So you know what time it is?
07:27It's deal time.
07:31What changed my mind 100% was you.
07:34You.
07:35Smart idea.
07:36I know we can sell these.
07:39You are such a can-do person that I would love to have you as a partner.
07:43Thank you, Lori.
07:44So I'm going to give you the $200,000 as a loan.
07:49You get $1 per bag in perpetuity, and just 5% of the company.
07:56So one second.
07:57Before we go anywhere, I want to help you squeeze Lori's head a little bit.
08:01Because, you know, I am the king of royalties.
08:05But also something you didn't know, Meredith, I am a fashionista.
08:08Really?
08:09In my own bag, I have a makeup bag for television.
08:12That's why I look so spectacular all the time.
08:15I do my own makeup.
08:16I'm going to use one of your bags.
08:18I think it's very expensive, what you structured there.
08:20No, it's not.
08:21Royalties in perpetuity, nasty, nasty.
08:24I would do a deal with you.
08:26$1.50 a bag.
08:27But I give you the $200,000.
08:29After, I get back $750,000.
08:32It goes away.
08:33And all I want of the business is 3%.
08:37So that way...
08:385%?
08:393%.
08:40No, the point is...
08:41He wants the $700,000 and he's not helping you manufacture or do anything.
08:44You should push back, say, after she's got a decent return on her capital.
08:47You can't hear him out, right?
08:48Did you come in here for a loan today?
08:50Or did you come in here for cash?
08:53Um, I came in here for money of any kind.
08:59So...
09:00I really love you.
09:01Oh my goodness.
09:02Let me tell her why I structured it this way.
09:04I'll come in and I'll be able to give you all of my manufacturing resources,
09:09help you with design.
09:11I make bags already, so I'm like the perfect partner to help you
09:15How do you know Lori's going to care about your bag more than her other bags?
09:18I don't have a bag company in my portfolio.
09:20Because I care about all the entrepreneurs more than me.
09:23You would be my only bag.
09:24Oh my God.
09:25Are you charging interest on your loan?
09:275%.
09:30Because I want to squeeze his head a little bit more.
09:33Now you understand that offer.
09:35I'm only asking for 3% equity in the company.
09:38Those are the two offers.
09:39What do you want to do?
09:41So I'm going to jump back in here for a second.
09:45Uh oh.
09:46Because I don't want you to give up any equity.
09:50So I would loan you $200,000.
09:53I would want a dollar a bag back until the loan is repaid.
09:57So this is cool.
09:59You know it's not just a loan.
10:02It's everything that I bring to the table.
10:04It's more than that.
10:05I'm helping you.
10:06Yes, but it's contacts, it's my show on QVC.
10:09Look, you have three offers now.
10:11Do you understand them?
10:12I do understand each of them.
10:13And now you have to make a decision, Merida.
10:17Sarah, for the loan with no equity in the company,
10:21what can you offer as far as contacts,
10:25manufacturing help, getting my name out there,
10:28things like that.
10:29Since you're not getting any equity back from it,
10:32I would just worry that it's like,
10:33you know, here's your check, sweetie.
10:35Now get your little butt on out there.
10:38I mean, like, in this deal and what I offered,
10:40if you're wanting a lot of my time and energy on this,
10:44it won't be to the degree that Lori would be able to offer.
10:48I'm just throwing something in the mix
10:50to make you really think long and hard
10:51on do you want to give up equity.
10:55Lori, would you do $0.75 a bag since it's forever?
11:00Do that, Merida. Merida.
11:02Um...
11:03Okay, let's go.
11:04Yes, I would.
11:06Let's do it.
11:09Okay.
11:10Oh, my God!
11:11You're a spitfire.
11:12Y'all are not as scary as everybody said you are.
11:15My pleasure.
11:17Nice job.
11:18Congratulations.
11:19Great presentation.
11:20Good job.
11:21Thank you, Lori.
11:27Oh, my God.
11:30That was crazy.
11:32I went with Lori because she wanted equity.
11:34She even dropped her royalty price,
11:36and she told me exactly how she'd be present
11:38in the deal as a partner,
11:39and that's what I'm looking for.
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