- 4 months ago
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00:00Bring on the cheer.
00:01It's the holiday episode of Shark Tank.
00:04Merry Christmas!
00:05Take the home with your heart offers.
00:07Ha-la-la-la-la-la-la-la-la-la-la-ching.
00:09You are a ball of fire.
00:11Bleh!
00:12Humble!
00:13The anticipation of Christmas has lasted for months.
00:15Take this behind the Christmas tree and burn it.
00:17Kevin, it's the holidays.
00:18So, sharks, who's ready to play?
00:21Look out!
00:22Look out!
00:23Yay!
00:24Level it!
00:25Whoa!
00:26What?
00:27What?
00:28What is this?
00:29Come in!
00:30Whoa!
00:37First into the tank is a savory twist on a sweet holiday tradition.
00:50Hi, sharks.
00:51I'm Avi Tal from San Francisco, California, and I'm the founder of Edible Architecture.
00:56Today, I'm seeking $150,000 in exchange for a 10% equity stake in my company.
01:03Sharks.
01:04Have you ever actually eaten one of these stale gingerbread houses?
01:08Let's be real.
01:09They're super cute, but they're rock hard, overly sweet, and inevitably end up in the trash.
01:16And this one?
01:17Well, this one's a fixer-upper.
01:18So, I brought my crew to demolish the old.
01:21Have at it, boys!
01:22Oh, my God!
01:23Let the frosting fly!
01:24And we're gonna build a savory new alternative.
01:36Edible architecture.
01:38Delicious holiday creations made from all of your favorite charcuterie board ingredients.
01:42Oh, la la.
01:43Pretty.
01:44So, think salami shingles, pretzel windows, Parmesan snow.
01:48Pretty as could be.
01:49And olive ornaments.
01:50Oh, yeah.
01:51It's a grown-up gingerbread house.
01:53No stale cookies, just gourmet goodness.
01:56We offer three kits.
01:58A classic charcuterie chalet, perfect for a delightful family activity.
02:03A mini chalet for a fun wine and cheese night with the girls.
02:07And a charcuterie tree, which we call the charcuterie.
02:11And that's perfect for a delightful holiday festive centerpiece.
02:15All of our kits, they're completely shelf-stable using high-quality ingredients.
02:20We're not just building chalets here.
02:22We're building memories, one salami shingle at a time.
02:27So, now my crew is gonna come back out with a charcuterie and a chalet for you to decorate.
02:34Don't forget to add the Parmesan snow.
02:36So, I'm building my own salami shack.
02:38I think it is creative.
02:40So, in front of you, you have the mini charcuterie chalet.
02:43Okay.
02:44There's all of the ingredients that you can see in the box.
02:46This is a cracker house.
02:48Yeah, you can break it off and taste it.
02:50This is cool.
02:51What is this?
02:52That is the brie cheese spread, which is the glue.
02:54So, instead of frosting.
02:55That's smart.
02:56It's creative.
02:57It is very creative.
02:58Parmesan.
02:59And all the ingredients here are on the side.
03:01So, everything is shelf-stable.
03:02Everything is shelf-stable.
03:03Everything is shelf-stable.
03:04Let me stop for a second.
03:05There's something really weird about a gingerbread house made of salami.
03:08I just don't get it.
03:10I mean, it's just...
03:11So, the charcuterie chalet is a concept that has been going viral on the internet for the holiday season for years now.
03:18Food Network had a video that had 9.8 million views.
03:23This is a concept that people have loved.
03:25Avital, I love your enthusiasm, and I love that you're telling us it's gone viral.
03:30Tell us, what are your sales?
03:32So, last year was our first year on retail shelves.
03:37We sold $123,000.
03:41This year, our sales are $1.17 million.
03:46How did that piece work, though?
03:48We have POs and commitments from Costco.
03:51World market, Albertsons, and many nationwide retailers.
03:56And that doesn't even begin to touch direct-to-consumer, which we want to continue to build out.
04:01So, last year...
04:02Do you think you're going to break through more than $2 million in sales a year?
04:04That's right.
04:05What is this cost, though?
04:06And what do you sell it for?
04:08So, we have three different kits, as I mentioned.
04:10The classic charcuterie chalet, which is the one that you have in front.
04:14Known as the salami shack.
04:15The...
04:16It's freaking me out just looking at it.
04:19It's so fun.
04:20I'm glad that you're having fun with it.
04:22So, the classic charcuterie chalet, our MSRP, is $29.99.
04:27And it costs you?
04:28We sell it wholesale, $14.29, and it costs us $10.68 to make.
04:35So, that's about a 25% margin.
04:37And 65% margin if we sell direct-to-consumer.
04:40Are you making any money?
04:42Are you profitable?
04:43So, on that $123,000, our gross profit was $11,000.
04:48And we netted $3,500.
04:51Now, you might say that's not a lot, but I was really just validating the market.
04:55But, to me, you have violated the honor of the gingerbread house.
05:01Children are gonna come home during the holiday season, look at that thing, the salami shack, and start crying.
05:08I'm out.
05:11Um, I do a lot of girl parties.
05:14I don't think it's attractive.
05:16I think the place looks like a disaster after you've tried to eat it.
05:20I'm not interested in the product.
05:21I'm afraid I'm out.
05:23Okay, thank you, Barbara.
05:25So, what are you gonna do with the money?
05:27This year's about scale.
05:28I need a credit line to finance my POs.
05:31That's really where we're at.
05:33Let me tell you, let me invite you inside my head.
05:36The product is not doing it for me.
05:39It's kind of like, I like peanut butter, I like tuna fish, I like bananas, but not all in the same sandwich.
05:46I really am very impressed with you, but because the product doesn't do it for me, I'm out.
05:51Okay.
05:52You want access to capital.
05:55That's right.
05:56Money's difficult to get these days, right?
05:58It's expensive.
05:59I have a lot of companies I work with, they ask me to finance the POs.
06:02When I end up financing POs, I end up owning the entire company.
06:07But what happens is when you can't pay the POs or something happens, I have a different interest now.
06:14One side I have as an owner or a partner, the other side I have is sell, sell, sell, get me my money.
06:22There's a conflict.
06:23Listen, things happen in business and unfortunately for that reason, I'm out.
06:29Avital, you are a ball of fire.
06:31Like, I would bet on you any day.
06:34So, I happen to have done a deal with Bordery.
06:36Yes.
06:37Two and a half years ago.
06:38Yeah, absolutely.
06:39And unbelievably, it's a cheese and charcuterie board.
06:41It was fantastic.
06:43We are over 120 million in sales.
06:46Congratulations.
06:47In two and a half years.
06:48Yeah.
06:49So, I clearly know there is a great market in our space already.
06:54But as a shark, I don't want to just be somebody that funds POs.
06:57Yeah.
06:58I'm not here to be a Bank of Lori.
06:59Because I'm going to be banking on you.
07:02I'm going to give you a sharky offer.
07:06Four sharks are out.
07:20But Lori is interested in Avital's holiday charcuterie kits, edible architecture.
07:27So, you came in asking for $150,000 for 10%?
07:30That's correct.
07:31I will give you $150,000 for 25%.
07:35Yay.
07:36Wow.
07:37You know, you put two good minds together, you make magic.
07:39No, Lori, that's pretty good.
07:40What do you think about that?
07:41First of all, Lori, thank you.
07:43And I love what you have done with Bordery.
07:46Would there be a component that you would also be able to finance the POs as part of that offer?
07:51I'm always happy when sales are there.
07:54I want you to succeed, right?
07:56But I don't want it to be contingent on this deal.
07:58Okay.
07:59Because I think what I bring to you is so much more important.
08:02Absolutely.
08:03Than just paying for POs.
08:04But Avital, can I ask you a question?
08:06This year, you're going to sell over $2 million.
08:10Her valuation puts your valuation of the company at $600,000.
08:15What are you, hating on Lori?
08:16I'm trying to help her.
08:17I think it's worth it.
08:18Well, Daniel, would you come back in with Lori?
08:20I don't need him as a partner.
08:21Ooh.
08:22I don't.
08:23Especially after that, Daniel.
08:25Especially after that.
08:26But no, this is your moment.
08:28You're standing here on this carpet, and what you decide here today can make or change how the rest of your business goes.
08:35It's a decision.
08:36It's a moment.
08:37Would you do $200,000 for 15%?
08:48Mmm.
08:49No.
08:50I want to stick with the $150,000.
08:53Okay.
08:54You have a different counter?
08:5615% for $150,000.
09:01I'd do $150,000, but the lowest I'll go is 20%.
09:08$750,000 valuation.
09:11They cut your salami in half.
09:12Next year, our profit's going to be $800,000 on $6 million.
09:16Maybe.
09:17You got an offer.
09:18And I will help you for it to not only be $800,000, but let's try to go for $8 million.
09:23That's right.
09:24That's right, Lori.
09:25Right?
09:26Can you bring it down 17%, Lori?
09:30You're really pushing my max.
09:3418%.
09:35It's okay to say no.
09:4018% and you have a deal.
09:42All right, let's do it, Lori.
09:44Yay!
09:45You can run.
09:48You are one smart cookie.
09:50Cocker.
09:51You didn't mean cracker.
09:52You are one smart cracker.
09:54Good job.
09:56Congratulations.
09:57I was actually quite surprised by some of the sharks' feedback.
10:02Some of the sharks are not my customer, and that's okay, and that's why I have such a great partner in Lori who really understood the product.
10:11Boardery is a classic charcuterie board that has been delectable for generations.
10:17This is a meat cookie.
10:19I think one of the most meaningful things for me after so many years on Shark Tank is that I've been able to change lives, help so many of my entrepreneurs to be successful, and I feel like a proud mom.
10:35The night we aired, we had over 20,000 people on our website.
10:39That was our biggest month ever.
10:40We did over a million dollars in sales.
10:42It's been a year since we closed our deal with Lori, and in that time, Chomp Shop has made over $9.5 million.
10:48It's been four years, and we've done millions in sales, and the pizza cupcake has had a rebrand.
10:53We are now in Credifuls.
10:55It's been two years since we closed our deal with Lori, and Parting Stone has made $8.3 million.
11:00We went in with $500,000 in sales.
11:03Since then, we're nearly at $60 million in revenue.
11:07FlexScreen had lifetime sales of right around $11 million.
11:10Since then, our lifetime sales have grown to $200 million.
11:14Collectively, my family of entrepreneurs have done $3 billion in retail sales.
11:20I just want to thank all of you guys for being here tonight.
11:23The holidays are a time of giving and bringing joy, and sharing love.
11:28I've been raising money for the LAFD for over a decade, but this year, it is particularly meaningful, because they went through some of the worst fires in history.
11:37Every time I think about the bravery, I am in awe and feel these people are true heroes and deserve all of our gratitude.
11:44When I reached out to my entrepreneurs with the idea of us all giving back to help the LAFD, every single one said yes.
11:51What can we do to help you?
11:52Nice to meet you.
11:53Nice to meet you too.
11:54Come on, sit down.
11:55Charity Buzz raises money for nonprofits by offering exclusive experiences with celebrities and brands.
12:01In this Charity Buzz, I auctioned off several private hour-long meetings with me.
12:06Many of my incredible entrepreneurs also auctioned off mentoring sessions with them.
12:11The LAFD didn't just battle fires this year.
12:14They saved lives, homes, and gave hope to so many.
12:17Tonight is about honoring the people who show up for us every single day.
12:22I want to thank Lori, all the entrepreneurs, and the people from Charity Buzz.
12:26This money is not only going to go to help the Los Angeles Fire Department, it's really going to help all the people of Los Angeles that we serve.
12:32It's been such a wonderful night celebrating with some of my most successful Shark Tank entrepreneurs.
12:38Honoring the brave firefighters who risked their lives for us every day, there is no one more deserving than that.
12:44Thank you to our heroes!
12:46Next in the tank is a product to ensure the fun for all your holiday gatherings.
13:12Hey Sharks, I'm Julian and I'm originally from the Netherlands.
13:15I'm David, I'm originally from Scotland, but we're now based in Los Angeles.
13:19And we're seeking $200,000 for a 5% stake in our viral party game company, McMillan.
13:26I hate that valuation, you're never going to get a deal, you're going to waste my time.
13:31Go ahead.
13:32Okay, there's more.
13:34Sharks, imagine this.
13:36You're throwing a party, but no one's having fun.
13:39Your friends are bored.
13:41Grandma, she is asleep.
13:44And the kids are cranky.
13:47Worst of all, everyone's on their phones.
13:51No!
13:52They need a box full of belly laughs.
13:54Some screen-free fun.
13:56They need a McMillan party game.
13:58Our award-winning games are easy to learn, so no long, boring instructions.
14:04And they are truly multi-generational.
14:07Grandma loves them as much as the kids.
14:09And as you can see, a McMillan game is as fun to watch as it is to play.
14:14So, whether you claw your way to victory with the cat made game.
14:17Plop to the top with Fish Fae.
14:19Monkey around with its bananas.
14:22Or plunder for treasure with fire.
14:24You're sure to find your fun with McMillan.
14:28So, Sharks, who's ready to play?
14:30Who's ready to play?
14:31What games do we have here?
14:32Let's look at this.
14:33So, we have its bananas.
14:34So, if there's two sharks that like to volunteer to come and help.
14:36Maybe Daniel, Kevin.
14:37You want to play our monkey tail game?
14:39I've always wanted to monkey around with Kevin.
14:41I'm just going to make sure it's at the right level.
14:44So, the first player to get three monkeys on their tail wins this banana token.
14:53You're going to pick up the pink one, then the green one, then the orange one.
14:57So, pink, green, orange.
14:59Three, two, one.
15:00It's bananas.
15:02Alright.
15:03Here we go.
15:04Here we go.
15:05Kevin, look at that.
15:06Looks like he's done it before.
15:08Wow.
15:09Kevin looks like he's pooping.
15:12Yes, Kevin.
15:13Yes.
15:14Yes, Kevin.
15:15Okay, go next.
15:16Green one next.
15:17Green one next.
15:18I love this gentle way of playing.
15:21Yes.
15:22Next one.
15:23Kevin, you can win it.
15:24You can win it because someone didn't listen to the instructions.
15:26That is in the wrong order.
15:27Yay.
15:28Yay.
15:29Oh, Kevin.
15:30You're saying it.
15:31Yes, yes.
15:32Kevin won.
15:33Thank you very much.
15:34Winner.
15:35Winner.
15:36Daniel cheated.
15:37Exactly, Kevin.
15:38He was supposed to start with the pink one.
15:39I want to play.
15:40You got a big black one?
15:41Oh.
15:42That was great.
15:43Yeah, I love it.
15:44That's fine.
15:45He was slow, gentle.
15:46Knew he was going to win.
15:47He was very confident.
15:48He was very meticulous.
15:49So are you designing it for adults or for kids?
15:52Because I could see both having a lot of fun.
15:54Yes.
15:55Great question.
15:56It's very multi-generational.
15:57Something like It's Bananas can go to bachelorette parties, but can go right through to Christmas,
16:02which is definitely gran and grandpa right down to the kids.
16:05You came in with the fish.
16:07What was that concept?
16:08That's Fish Fight.
16:09We're launching that this weekend.
16:10Okay.
16:11It's our fifth game so far.
16:12We designed that because It's Bananas has sold over 650,000 units.
16:16Wow.
16:17Yes.
16:18650,000 units.
16:19What's that in dollars?
16:20We've done 12.5 million in sales today.
16:23Wow.
16:24Holy crap.
16:25Since when was Lifetime started for this game?
16:27Pretty much during COVID.
16:28That was when it took off.
16:29We started as a kind of part-time hustle.
16:31Since then, the industry's continuing to grow 10% year on year with games like McMillor
16:36games.
16:37They're kind of leading the way.
16:38Tell me about you.
16:39What's your background?
16:40So, I'm Mac and he's the mailer.
16:42I'm the mailer.
16:43We met in 2009 on a blind date.
16:46We've been married now for eight years.
16:48Oh, congratulations.
16:50And we are running this company together now for five years.
16:52That's great.
16:53Yeah.
16:54This is all you do?
16:55Yes, this is all we do.
16:56Did you have anything to do with games?
16:58Well, interestingly, we started work making these games initially for our families for Christmas.
17:03As the gay uncles, the entertainment was always on our shoulders.
17:06They liked it.
17:07They were like, we must be on to something.
17:09How are you selling it?
17:10Online or is it in retail?
17:12So, we've been very e-commerce up until now.
17:15All direct to consumer.
17:16Yes.
17:17Amazon is a big part of that.
17:18We've been very heavily quarter four, very seasonal.
17:22And we really want to move into brick and mortar.
17:24Can you go through your sales year by year?
17:26So, we did just under, I think it just five years ago, but just under one million.
17:33And then we scaled really quickly to three million.
17:36Wow.
17:37We stayed at three million until we got everything organized.
17:38Got it.
17:39We said no to all opportunities and we stayed at three.
17:41Last year, we did 3.2 million with a profit of 120.
17:44This is the year we're growing again.
17:46We're on track to do five million in sales with a 750,000 profit.
17:49Wow.
17:50We're going into China, Germany, France, Italy.
17:52Our games don't have a lot of language in them.
17:54We're going viral in these countries.
17:55Which went viral for you?
17:57The first one that went viral was It's Bananas.
17:59We design our games for social media.
18:01We call it Thumb Stoppable.
18:03So, when you're going through social media, see one of our videos like,
18:06Oh, what the fun is that?
18:08And we sold out within hours with that video.
18:10It was crazy.
18:11How much do you sell it for?
18:1323.99.
18:14And what are you making for?
18:15It landed $3.
18:16Wow.
18:17Great margin.
18:18Here's the problem I'm having.
18:19The story of the company is basically It's Bananas because the risk on the deal is
18:24you decide to go into retail with these new SKUs that are unproven.
18:27They sit on the shelf in retail.
18:29They tie up your capital.
18:30This is the challenge of the toy industry.
18:32Yeah.
18:33But you are not worth $4 million.
18:35You're really on a model that makes $3 million in sales and $120K.
18:40So, you've got to get valued off five times $120K.
18:45You're worth a million bucks.
18:47You just crush the joy right out of it.
18:49It's true.
18:50Look, It's Bananas certainly is right now our flagship game.
18:53It's been doing really well for five years.
18:55It's true in every business that there's a winner.
18:58Right?
18:59We had to go with the one that was selling really well.
19:01Have you raised any money up until now?
19:03No, we haven't raised any money.
19:04So, you own this all yourself?
19:0550-50.
19:0650-50?
19:07Yes.
19:08My only gay brother, he always asks me, why do you call me your gay brother when you don't call your other four brothers the straight brothers?
19:16He's more fun than anyone in the family.
19:18So, I love it mostly because I love Uncle T and I just believe in all of that.
19:21And the offer is?
19:22I'm gonna make an offer of $200,000 for 10%, which is more than you're willing to offer.
19:27But I want $2 a game.
19:28Not a lot more.
19:29That is until you get your money back?
19:31Definitely, which I suspect will be very quickly.
19:33It will be very, very quickly.
19:35Yes, about six months you'll get your $200,000.
19:37Thank you, I'll take it.
19:38Hold on.
19:39I've heard enough.
19:40I'm actually gonna make you an offer.
19:53All sharks are still in.
19:54Julian and David have an offer on the table from Barbara for their party game company, McMiller.
19:59But Daniel also wants to make an offer.
20:02Guys, I will match Barbara's offer.
20:05I think when you consider who's the right shark for you, you need to ask them if any of them know what chaselach means.
20:10Chaselach!
20:11Oh, Daniel!
20:12I don't know what it means.
20:13What does it mean?
20:14What does it mean?
20:15It's such a Dutch word that just means cozy, fun times together.
20:20Everything is chaselach if you're having a good time.
20:22There's nothing about this guy that's cozy.
20:24I'm very chaselach.
20:25And also, you need to consider that I'm very, very good friends with the CEOs and family from Hasbro and the CEO of Mattel.
20:33So if there's a strategic partnership or an opportunity, I'm very close friends with both of them.
20:38I've been waiting all this time to try to find a company that I could partner with and help you guys grow.
20:43Close friends help you to make the call, but close friends don't always buy it.
20:48Look, I think you're terrific, what you've done.
20:50And I always respect sales, 100%.
20:52But I just can't get my head around your valuation, so I'm out.
20:55Okay, thank you.
20:56Thank you, Kevin.
20:57I'm trying to think to see where I add value.
20:59I probably add more value, like, bringing you to, like, my friends the McClure twins and people with 4 and 5 billion views to help push it out.
21:07So I'll match the offer that's on the table.
21:09Oh, how boring.
21:10And Laurie, what are you gonna do?
21:12I mean, honestly, the making the money back within a handful of months.
21:16We will do 200,000 units in the next six months, so at $2 a unit, that would be done probably by Halloween.
21:23And that's even before fourth quarter, really.
21:26May I say to you it was too greedy an offer?
21:28I would drop it to $1.
21:30I would drop it to 99 cents.
21:32Okay.
21:33What are you doing, Laurie?
21:35I would give you an offer, but I would stay where you were.
21:38200,000 to 10%, $2 a game.
21:42And, Damon, which offer are you gonna match?
21:45I'm gonna match Barbara's offer.
21:48Daniel, would you be able to do 8% for $200,000 at 99 cents a unit until you get your $200,000?
21:53I thought you said I was gezellig.
21:55Yeah, you are gezellig.
21:56Yeah, yeah.
21:57I'll do it for 9%.
22:02Do you wanna go for it?
22:03Let's go for it, Daniel.
22:05Yes!
22:06Hey!
22:07I'm dead!
22:08Sorry!
22:09Sorry!
22:10I really appreciate the offer.
22:12You're doing so well today.
22:13I'm so jealous.
22:14Congratulations, guys.
22:15Great presentation.
22:16All three of you together, you're not gonna know what anybody's talking about.
22:19Get out of here.
22:24Wow.
22:25Oh, my God.
22:26We are very lucky to get Daniel at 9%.
22:29I think it's because he can see the future of a brand really expanding internationally.
22:34He's got the right context for us to take it there.
22:37So, it's a match made in heaven.
22:46Next up is a new tradition to make your holidays more fun and meaningful.
23:01Hi, Sharks.
23:02My name's Kate Stewart, and I'm from Atlanta, Georgia.
23:04I'm here seeking $250,000 in exchange for 15% of my company, Bobble Stockings.
23:16Sharks, you know the feeling.
23:19The anticipation of Christmas has lasted for months.
23:22On Christmas morning, you gather your family around the tree.
23:25You open the presents.
23:26There's gift-wrapping paper everywhere.
23:28And that's it.
23:30Christmas morning is over?
23:32It went by too quickly.
23:34It was nice, but it feels like something's missing.
23:37But what if the best moments of the day were still waiting?
23:40That's the magic behind Bobble Stockings.
23:43Bobble Stockings are small stockings.
23:46They're ornament-sized, and they're meant to contain or hold a clue to each person's final gift of Christmas.
23:53It doesn't have to be the biggest or the flashiest or even most expensive.
23:58It's the most thoughtful gift.
23:59It's the one that makes you feel warm and fuzzy like your family thought just about you.
24:03Maybe it's a heartfelt note or a shiny trinket or the first clue of a scavenger hunt that sends the recipient running through the house.
24:11What started as a save-the-best-for-last tradition in my family has grown to thousands of others.
24:18So, Sharks, who wants to help me turn the last gift into the best gift and create a little more magic with Bobble Stockings?
24:24Good job.
24:25All right.
24:26Nicely done.
24:27I picked out Bobble Stockings for each of you.
24:29So, like Lori, you have Santa's bountiful sleigh.
24:31Daniel, I went with the peace-on-earth doves.
24:34Mr. Wonderful, for your wedding empire, we have the champagne toast.
24:38Of course, New York City Noel for you, Barbara.
24:40I love it.
24:41Damon, I went with the best-dressed nutcracker we have, our gifting nutcracker.
24:44The homie nutcracker.
24:45Yes.
24:46I love him.
24:47Mr. Wonderful, because you scare me a little bit.
24:49Good.
24:50I put a clue in yours so you get a Bobble Stockings gift.
24:54Christmas magic is hiding under your chair.
24:57Your very own Bobble Stockings surprise awaits you there.
25:01Okay, so aren't you a poet?
25:02I love a good rhyming clue.
25:04Oh, look at that.
25:06I thought this might put you at ease a little bit.
25:08Oh, isn't that nice?
25:10Oh, my God, Katie.
25:11Is it Wonder Woman?
25:12Is it yours, Kevin?
25:13It's O'Leary Fine Wines.
25:14Nice.
25:15Yes, it is.
25:16It is?
25:17Okay, what is this?
25:18So this is our new product that has not launched yet.
25:21I actually just got these prototypes in, and it is our mass-market item.
25:26So Bobble Stockings are needle-pointed, as you can tell, which is a hand-stitched product.
25:31They retail for $89.50.
25:33$89.50 for that sock?
25:36Yes, that's right.
25:37What does it cost you for one?
25:39$30.49.
25:40We actually employ women in Haiti.
25:42In Haiti.
25:43So they're all handmade.
25:44How many people have spent $89 on this baby stocking?
25:47I have done $6.3 million.
25:48Whoa!
25:49What is going on here?
25:50Are you kidding?
25:51I could sell a mini stocking all day.
25:52Now you're talking!
25:53Oh, my God!
25:54Merry Christmas!
25:55Okay, and over what period of time?
25:56I launched my company in 2018.
25:57We're now carried in stores like Neiman Marcus.
25:58Wait, I've got to have a drink.
25:59I'm in shock.
26:00Me, too.
26:01Wow.
26:02What accounts for your success?
26:03So our success is that we've pivoted a lot throughout the years.
26:05I went for retail, and then retail was great, right, until about 2021.
26:09And then retail kind of went, eh, and I was like, okay, well, what can we do to pivot here?
26:12So then we started hitting direct-to-consumer, which might be great.
26:16And then retail was great, right, until about 2021.
26:19And then retail kind of went, eh, and I was like, okay, well, what can we do to pivot here?
26:23So then we started hitting direct-to-consumer, which my margins are way better.
26:27Okay, this is a new product.
26:29This is brand new.
26:30At a lower price point.
26:31Yes.
26:32And it's just a velvet stocking.
26:34Mm-hmm.
26:35And here's a book.
26:36Yes.
26:37And what does this book tell us?
26:38The book tells the story of the tradition, how the final gift of Christmas is meant to be the most thoughtful.
26:42And what does this book and the velvet stocking sell for?
26:47I want to retail at around $30, so it's more of a mass-market product.
26:50But hold on.
26:51When you've got such a hit with this, why are you messing around with this?
26:55Because I never meant for bobble stockings to be exclusive.
26:58It's a tradition that everyone should have.
26:59What's wrong with that?
27:00Well, because growing up with bobble stockings, the way that we did it was my dad took my big brothers and I shopping for my mom for a special gift.
27:09And we would hide it or a clue to it in her needlepoint stocking that hung on our tree.
27:14My dad called it her bobble stocking because on a good year, it was a bobble, which is a piece of jewelry.
27:19And for me, it's those memories.
27:21That's what I wanted to recreate with this company.
27:23So somehow you translated that into a business that's very successful, which has nothing to do with this.
27:29So it's another gift for Christmas.
27:31Anyways, look, we have history here on Shark Tank, specifically around this kind of thing.
27:36Tomty cake, Miranda, she blew it away because she stayed focused on the one thing.
27:42Hanukkah tree topper.
27:43You know, and so tree topper, another thing.
27:45Man, it's on a bench.
27:46So I just want to find out where you're going with this, because if you're telling me that you want $250,000 to focus on the proven winner,
27:53and then all of a sudden you show up with a book, the most crowded category in the entire world, children's books are a dime a dozen.
28:03Thing is, these books that I have here in front of you are prototypes.
28:06Yeah, but you have no proof of seltzer on them.
28:08There's no inventory on these.
28:09You have proof of this.
28:10And so if you made a deal with me, we don't have to do that.
28:12Here's my thought about this.
28:13I'm having a challenge on the higher middle market, because in one way, you're right.
28:20If you don't take up that space in the middle, somebody will, because everybody can't afford this $90 piece.
28:26On the other side, a lot of the buyers will push you down on that.
28:31If there's a challenge that you're going to face, and I don't know if I want to face that with you, I'm out.
28:36Understood. Thank you so much.
28:38My favorite part about your presentation was how you lit up when you talked about your parents.
28:43I really think bringing meaning to the holidays means a lot, and I love that.
28:47When we at Kind realized that our product was premium with premium ingredients and not everybody could afford it,
28:54for years we'd struggle with how could we make the product reach masses, reach more people.
28:59But one thing we were never willing to do was sacrifice the premium ingredients,
29:03because even though they're more expensive, they're more helpful.
29:06But we had to set a set of guardrails for what we stand for and what we're never going to compromise on.
29:12My sense is you haven't had that conversation yet with yourself, so for those reasons, I'm out.
29:21Look, this is crap compared to this.
29:24And you will be stuck in the used bin in seconds after the first season.
29:29Because I don't know who talked you into this, but it was a bad, bad thing.
29:33Because you brought it here saying, look at this shiny bead over here.
29:37Kevin, it's the holidays. It's the holidays, man.
29:39Take this behind the Christmas tree and burn it, okay?
29:42This is what you should be focused on.
29:44I can totally focus on that. We just got that sample in the mail.
29:47I was very excited to bring it to y'all. I've applied to this show for the last seven years.
29:51Are you excited anymore about it?
29:53I'm very excited, but I think...
29:55You're very excited. I get it. But I'm not. I'm out.
30:006.3 million in sales on a little needlepoint stocking in a story.
30:06That speaks volumes to the fact that you've done an amazing job.
30:10But I don't think you need a shark.
30:12I don't think you need to give anybody a percentage of your company.
30:16I think you're a phenomenon.
30:18So I wish you good luck, and I'll be a customer, but I'm out.
30:22Thank you. Thank you.
30:24Barbara, I am the person you want on your team if you want to hustle.
30:27I can hustle harder on the other things.
30:29You know what I loved most about everything you said here today?
30:31That you're willing to change. You're willing to pivot when the condition changes.
30:35Do you know, rarely does an entrepreneur have that willingness.
30:39I would like to give you $250,000 for 25%.
30:43Wow. You got an offer there.
30:45I do have an offer there.
30:49Can we do it for 20?
30:51You got yourself a deal.
31:01Good one.
31:02Amazing. Amazing.
31:04Oh my gosh.
31:05Congratulations.
31:06And please keep the festive thin ones and the ones we gave you.
31:09Don't worry, Kate. I'll burn this for you.
31:11I know you will.
31:12We don't have to do it.
31:13We don't have to do it.
31:14Thank you so much.
31:15Thank you, guys.
31:16Appreciate it.
31:17Whew.
31:18I am so excited for my deal with Barbara.
31:21We are going to take bobble stockings to the next level.
31:23We are going to get this story out to the masses so everybody can celebrate the bobble stockings tradition.
31:28Next into the tank is a classic tradition to put everyone in the holiday spirit.
31:51What a miserable guy.
31:53Ah, humbug.
31:56My name is Ebenezer Scrooge.
31:59As if you didn't already know that.
32:01And I have an idea for you that's more innovative than a lump of coal.
32:09Joy to the world, the Lord is come.
32:13Let us receive her king.
32:19Scrooge, you don't own this business.
32:21We're the ones pitching today.
32:23That's right, Scrooge.
32:24Go stand over by the carolers.
32:25We've got this.
32:26Hi, Sharks.
32:27My name is Kenyon Ross, and I'm the owner of the Christmas Carolers.
32:30And I'm Jessica Harris, the head elf at the Christmas Carolers.
32:33It's the most wonderful time of year, and people are craving something real.
32:36Moments that bring us together.
32:38And that's exactly what the Christmas Carolers has to offer.
32:41We offer live professional carolers dressed in Dickens-era costumes, singing classics like...
32:46Hark the herald angels sing, glory to the newborn king.
32:56From corporate to residential holiday parties, the Christmas Carolers is already in 14 cities across the United States.
33:03And we're just getting started.
33:05And with your help and our business model, we can bring the timeless tradition and the magic of caroling to every corner of the country.
33:12We're seeking $250,000 for 20% of the Christmas Carolers, so come on, Sharks.
33:18Oh, come all ye sharks now, joyful and investing.
33:28Who wants to be a part of bringing harmony back to the holidays?
33:31Sharks, it appears all roads lead to Ebenezer.
33:36I'd like to start the bidding at six shillings and two pence.
33:41Sharks, I know I wouldn't want to be visited by the ghost of missed opportunities, so don't let this slip you by.
33:47Come join the Christmas Carolers!
33:51Ebenezer owes me a royalty right now.
33:54There's no question about it. I am the Scrooge of the modern age.
33:57That's right.
33:58Listen, talk about seasonal business.
34:00Sure is.
34:01How many weeks does this actually bring in revenue for?
34:03Early November all the way through December.
34:05So, would somebody gift this to you to have carolers come to your door?
34:10Or would a business bring them in for their office party?
34:13We do primarily mostly corporate parties and events, but residential parties happen as well.
34:18And all of your business comes from online?
34:21So, yes, online.
34:22And how many followers do you have?
34:24We have hundreds of social media followers.
34:28Hundreds?
34:29Yes, hundreds.
34:30Wow!
34:31Again, I know, isn't that amazing?
34:32You know, it's actually very hard to keep it at hundreds. I don't know what you're doing.
34:35Yeah.
34:36Break down the numbers for us.
34:38It's $700 for the first hour.
34:40And then if you continue to book more hours for the same event, it keeps stair-stepping down.
34:44What do people typically book?
34:45Our average is two hours.
34:47How much do you keep and how much do they get?
34:49Sure, so I know the $700, it's $230 that covers the carolers.
34:54We also have city directors in every city.
34:56$200 for the carolers?
34:57Why don't you just give them a lump of coal?
34:59Yeah, I know.
35:00Even though it sounds like, you know, a small amount, to them it's $40 or $50 an hour.
35:06So it does add up over the week because they get paid per week.
35:09When did you start this business?
35:111996 is when I first started it.
35:131996?
35:14Yep.
35:15Daniel, I have two questions.
35:16Daniel, I want to know lifetime sales.
35:18Over a million.
35:19Over a million?
35:20Over a million dollars, yeah.
35:21Since 1996, she's made over a million.
35:24I could have said that if I worked at Red Lobster.
35:26You should have.
35:27All right, so listen.
35:29To get a real understanding, a snapshot, how did the last three years go?
35:33Yeah.
35:34So, three years ago, we did about $60,000.
35:36The year after that, 2023, we did $90,000.
35:41Last year, we did $255,000.
35:43What about this year?
35:44We're projecting to move from 14 cities to 50 cities.
35:47And what will that generate for the season?
35:49A million dollars gross profit.
35:50Hold on.
35:51Gross.
35:52No, no, gross profit.
35:53Hold on.
35:54Gross sales.
35:55We're going to go from 14 cities to 50 this year.
35:58That's correct.
35:59That is a huge increase.
36:00That is a huge jump.
36:01So, tell us how you plan to do that.
36:02It's not difficult to go from one city to 10 cities to 50 cities.
36:06Well, why didn't you do it before then?
36:08It costs money.
36:09So, we need the help of a shark to go from 14 cities.
36:12Why?
36:13What can we do for you that you can't do?
36:14So, if you don't get the money here today, then you won't go to 50 cities.
36:17We won't.
36:18We're growing at a slower pace.
36:19Oh.
36:20Are you paying your sales now?
36:21I'm not.
36:22I'm a full-time medical sales rep.
36:23Okay.
36:24So, I'm not putting my salary as a burden.
36:25So, who works a job?
36:26And Jessica, are you?
36:27And I'm part-time.
36:28You're part-time.
36:29I want to bring her on full-time.
36:30Do you own 100% of the company?
36:32I own 100% of the company.
36:33Okay.
36:34But, Jessica, I'm making her a part owner.
36:35Excellent.
36:36Who's on the phone with the client?
36:37She's made the difference.
36:38How much?
36:39When the client calls, who's on the phone with the client?
36:40How much is equity?
36:413%.
36:423%?
36:43I'm sorry, who's on the phone with the client?
36:44Jessica is mostly on the phone.
36:46Yes.
36:47I handle the people.
36:49Are you making any money?
36:51Last year, we made 20% net profit.
36:53So, that's 50 grand.
36:54Yeah.
36:5550,000.
36:56Correct.
36:57So, this business is not worth a million 250 right now.
37:00If you were to take what we did in 14 cities and multiply it by 50, it'd be a million dollars.
37:04Huh?
37:05Right.
37:06I think, you know, your projections are actually very achievable.
37:09As long as we're talking about doing them in an alternative dimension.
37:12Do you do a lot of social media?
37:16Not social media yet.
37:17We're getting to that.
37:18This is an area that I think we could use a lot of help in.
37:21But, Canyon, am I right that what fuels you is that you just love what you do?
37:25I love what I do.
37:26Like, it's pretty clear to me that you just have fun.
37:29I do.
37:30And you're enjoying the ride.
37:31Yes.
37:32I really think this is really beautiful, but it's not really investable.
37:36I'm sorry, but I'm out.
37:37Hmm.
37:38Well, that wasn't very kind.
37:40Uh-huh.
37:41I'd like to make you an offer, if I may.
37:44Take the hold with straw hard coffers.
37:46Fa-la-la-la-la-la-la-la-la-la-la-la-la-la-ching.
37:49Hey, listen, guys.
37:50I would like to buy you out of the business.
37:53You want to take him out of his passion?
37:55I'm not taking him out of his passion.
37:56I'm taking him out of the business.
37:58I'm listening.
37:59You listen.
38:00All right.
38:01I'm offering you $125,000 cash as a purchase price, 100% of your stock, plus $125,000 loan to see the business through to success.
38:12What you're lacking here, the only thing you're lacking is not your heart, but you're lacking social media.
38:18Now, I know this for a fact because I own a business that's a direct parallel to you.
38:22It's called Hire Santa.
38:24And Mitch, who runs it, is a social media genius.
38:27Wow.
38:28He was in the social media business, and then he went into this crazy business.
38:31He hired Santa.
38:32Was that the one where all the Santas came in here?
38:34You got the ugly Santas that were all derelicts.
38:36He's really cleaned up his act.
38:38He just surpassed $16 million in sales.
38:40Wow.
38:41Yeah.
38:42Wow.
38:43So there's money to be made here.
38:44Sure is.
38:45But he focuses on social media.
38:46So you want to whack the founder?
38:47You're not being whacked.
38:48I'm making you the chairman of the board.
38:50You're going to go home with $125,000 in your pocket and still have your day-to-day or every other week involvement or whatever you want.
38:56But he doesn't have any equity in the business.
38:58Do you have any equity in the business?
38:59Yeah, I'll leave you 1% if you'd like.
39:01Can you, basically, she wants to make shark soups with you.
39:04Yes.
39:05I actually think it's a fabulous offer.
39:07I think it's amazing.
39:08$125,000.
39:09I do.
39:10I think she'll turn your business around.
39:11Your business isn't even worth it.
39:12It's barely worth that, really.
39:13No.
39:14What do you think?
39:15I don't agree.
39:16I thought it was a great offer.
39:17You don't get it if you don't ask.
39:18It's got to be great things away after 30 years.
39:20I'm really looking for an investor.
39:22I'm not willing to give away the ownership of the business.
39:25Good for you, Kay.
39:26But what about a counter?
39:28I would consider my walking away with 51% of the business.
39:33No, I really need to have the control, I must say, to bring it to what it's supposed to be.
39:37Why would you want us to be a part of it?
39:39No, your job is essential to the business.
39:42So is this job.
39:43That's not what I'm messing with here.
39:45You're staying exactly as you are.
39:47It's just that she owns it now.
39:49I'm not interested in just the 1%.
39:51Good for you, Kenyon.
39:52My counter would be 50%, at least 50%.
39:55He loves what he does.
39:57Yeah.
39:58It's not just about the money.
39:59He's passionate about this.
40:00The champion on the board, you could love what they do.
40:02I kind of agree with what she's doing.
40:04I do like what I do, but I would like to be a part of the journey that makes it into the millions.
40:08Okay, you talk to the other sharks, let me think about that.
40:10Okay.
40:11Kenyon, there's nothing wrong with you walking out with pride and continuing to do what you do.
40:16Yes, thank you.
40:17There's nothing wrong with him walking out with $125,000 in his pocket either.
40:20He hasn't made a dime.
40:21So let me tell you what I think.
40:22In or out?
40:23I personally think Barbara gave you a very good offer.
40:26I would not do the same offer.
40:28I am out.
40:31I just don't get it.
40:33Right now, you could put that money in your pocket and you could become a caroler
40:36and work around and hang out in the business.
40:39Yeah.
40:40I'm out.
40:41I don't get the whole deal.
40:43I'm out.
40:45That was it.
40:46Well, this is the only deal.
40:48I've really worked my heart at reshuffling the deck and this is what I'll propose, okay?
40:52I'm going to give you, Jessica, 10% of the stock.
40:56I'm going to give you, Kenyon, 20% of the stock.
41:00$125,000 cash for that deal.
41:03And I'm going to lend you $125,000 in a line of credit to extend to all the cities you want to extend to.
41:10Awesome.
41:11You know what?
41:12Is that clear?
41:13Yes.
41:14Can I ask you to go to 30% from me?
41:16Yeah, that's all right.
41:17It's a deal.
41:18You got it.
41:19Finally!
41:20Hallelujah!
41:21Hallelujah!
41:22Hallelujah!
41:23Hallelujah!
41:24Hallelujah!
41:25It's a deal.
41:25You got it.
41:27Finally!
41:28Hallelujah!
41:30Hallelujah!
41:31Hallelujah!
41:32Hallelujah!
41:34Hallelujah!
41:36Hallelujah!
41:37Yay!
41:38Great place.
41:40It's my little brother.
41:41Oh, really?
41:42Yeah.
41:43Well, you're a tough rookie.
41:45I'm sorry.
41:46I'm your retirement fund.
41:48And your play fund.
41:49Thank you so much.
41:50Thank you so much, brother.
41:51My pleasure, my pleasure.
41:52Thank you all for everything.
41:53I'm very happy for you, man.
41:55What in the world?
41:58This deal was really unexpected.
41:59I don't know if you can see it on my face.
42:01I did not expect to want to be purchased out.
42:04So I'm glad we got to the terms that was agreeable for me.
42:07And I got more money.
42:09You really just saved his business.
42:11I gave him a retirement fund.
42:13Barbara, it hit me.
42:14It's a Christmas miracle.
42:16It is.
42:16It is.
42:23It is.
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