- 3 months ago
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00:00Tonight on Shark Tank.
00:02Hi, sharks.
00:03You ready to get hammered?
00:04Oh, my goodness.
00:05Introducing Sleepy Baby.
00:09You're hitting a baby.
00:11What are your sales?
00:12$3.6 million.
00:13You're not such a crazy chicken after all.
00:15I know.
00:16You're being too nice.
00:17People are begging for a healthier way.
00:19I'd like to make an offer.
00:20Ooh.
00:21Honey, we gotta talk.
00:22Ooh.
00:23Hostile takeover.
00:25There's blood in the water.
00:26Let's get this party started.
00:28Fire!
00:38First in the tank is a unique way to soothe your baby.
00:51Hi, sharks.
00:52I'm Sidon Kirikosian.
00:53I'm Gary Haritounian,
00:55and we're from Los Angeles, California.
00:57We're seeking $70,000 for 25% of our company.
01:01Sleepy Baby!
01:04As new parents of a baby with colic,
01:06we found ourselves doing the same routine every single night.
01:10Bouncing, rocking, patting, shushing,
01:13anything to help our baby sleep.
01:15But the second that our baby felt that we're not tapping him anymore,
01:18he was up.
01:19And as much as we love that little guy,
01:21our hands and our sanity were running on empty.
01:23That's when we asked,
01:24why isn't there a simple solution and a way to mimic a parent's soothing touch automatically?
01:30Introducing Sleepy Baby!
01:32Sleepy Baby!
01:33Our patent-pending wearable baby soothing device gently taps your baby to sleep so your hands can take a break.
01:42Think of it as your extra set of hands during those tough bedtime routines.
01:46When we put Sleepy Baby on our baby for the first time,
01:49he slept five hours straight, and that was the game changer.
01:53It's smarter, simpler, and more affordable than what's currently on the market.
01:57Sharks, Sleepy Baby is here to help get parents the best they deserve.
02:01So the question is, who's ready to help us bring a little peace and quiet to parents everywhere with...
02:06Sleepy Baby!
02:08I am so excited right now. I want to scream from the rooftops.
02:13I literally, I feel like you were in my brain.
02:16In my brain, like ten and a half years ago,
02:19I was sitting at my kids' crib with my hand and going...
02:23Yes!
02:24Oh my goodness.
02:25Like bending over the crib and your ribs...
02:26And then I would lift my hand away and I'd walk away and...
02:31And I'd be like...
02:32And then I'd start crying.
02:34And I'm like, why doesn't there a device that does this?
02:38Right.
02:39And I was thinking, oh, I should invent this.
02:42Oh, here we are.
02:43It's working on me.
02:44You all don't understand how amazing this is.
02:46You're hitting a baby.
02:48I am obsessed.
02:49Have you sold any of these?
02:50Yes.
02:51Yes.
02:52We've sold approximately 331 units and made $21,000.
02:55Yes.
02:56You mentioned something that was important to me.
02:58You said it's cheaper than the other products in the market.
03:01What are the other products in the market?
03:02Right.
03:03So pretty much our baby was extremely colicky and fussy.
03:05So I go online and I'm searching baby soothing products.
03:08I'm seeing a lot of...
03:09Rocking bassinets, Mr. Lewis.
03:10Rocking bassinets that are up to two grand to purchase.
03:13I invested in that company.
03:15Snoo, happiest baby.
03:16Right.
03:17Yes.
03:18New.
03:19Great company.
03:20Before our baby.
03:21Yes.
03:22So what do you charge?
03:23What is the price of the spanky baby?
03:24It's not spanking.
03:26It's soothing.
03:27Whatever.
03:28What do you charge for this?
03:29Right.
03:30So basically we're buying it at $9.40, which we can drop it a lot lower if we buy more.
03:34But we're selling it for $63.99.
03:36Yes.
03:37Wow.
03:38Let me tell you, when you are a sleep deprived parent and you are just like, you're delirious.
03:43Yes.
03:44It's like a form of torture when you're not sleeping.
03:45I'm with you.
03:46I would pay anything.
03:47Anything.
03:48My twins couldn't sleep.
03:49Aw.
03:50We were losing our minds.
03:51Twins.
03:52Yeah.
03:53So I get the problem.
03:54Right.
03:55How many kids would like to be tapped by something external?
03:58You know, actually a lot of kids do love it because babies who are born out of the womb are actually always seeking their parents' touch.
04:04Exactly my point.
04:05Right.
04:06My twins wanted the sense of warmth and comfort of me being next to them and feeling that presence.
04:15I cannot imagine this working for my twins.
04:19I think this would irritate them.
04:21Just my personal experience.
04:22And I got to really believe the product works for me to get behind it.
04:25Of course.
04:26You guys are great.
04:27The product's not for me.
04:29I'm out.
04:30My first sale of my first company was to a very, very large toy company that had a massive division with baby products.
04:39And I learned the biggest challenge that remains today is to find the mother to acquire her as a customer just prior to birth.
04:48But because of our privacy laws on data, this is not data you can buy easily.
04:54And customer acquisition is a monster problem.
04:57I don't know how you would scale this.
05:00Guys, I'm not going to go on this journey with you, but look, you're the right people to drive this thing.
05:06I'm out.
05:07Guys, I want to give you some advice.
05:09The company I invested in, Happiest Baby, which makes SNOO, and they have other products that you can put on the baby's chest to see the heart rate, put a camera right above it, make sure they're breathing right, and they can introduce this in five seconds.
05:20But let's just say they don't introduce this.
05:23What I noticed about my investment in Happiest Baby, it's a very tough industry.
05:27Because of customer acquisition?
05:28Yes.
05:29I'm already fully in on this, and it's been years, and it's still a tough business.
05:33So I can't personally add more companies to my portfolio in the same space competing.
05:38But my advice to you is become thought leaders in the space.
05:42Offer a plethora of products that reach the moms at every part of the life cycle.
05:47And you're going to have to do more with this than just pat the butt.
05:50Yes, sir.
05:51For that reason, I'm out.
05:52But good luck to you guys.
05:53Thank you, sir.
05:54I just wanted to give you some advice.
05:57What is your biggest competitor?
05:58What's the closest thing to this?
06:00And what is your big point of differentiator from that?
06:04So our big differentiator is that our product is the only product that's going to offer a parent soothing touch.
06:10That's what babies are looking for.
06:12When we first launched our product, there was nothing like it in the market.
06:15And you don't have a patent.
06:16We filed a patent pending, but it takes two years to pretty much have the examiner go through it.
06:21So you can't stop the knockoffs.
06:23But that's with every product, right?
06:24Well, listen, while Kendra's thinking, I really like you.
06:29Unfortunately, I just don't see this scaling into something big.
06:33I'm sorry.
06:34I'm out.
06:36Thank you, Lori.
06:37All right, guys.
06:39I'll make you an offer.
06:40What?
06:41Hey!
06:42I'm gonna give you an offer.
06:43Hey!
06:55Four sharks are out.
06:57Kendra is Gary and Siran's last chance for a deal for their baby soothing device, Sleepy Baby.
07:03The product, this is something that I literally dreamt and hoped would come to the market 10 and a half years ago when I needed it most.
07:09Yeah.
07:10And you created it.
07:11And you know how hard that is?
07:13How many people have the idea?
07:15Oh, if I did this?
07:16No one actually does it.
07:17You did it.
07:19Which is so exciting.
07:21And I do think there's more uses for this.
07:22And I think there's opportunity to even build on this and make it better.
07:25Yes.
07:26Yes.
07:27With you guys.
07:28I think I can help you grow this.
07:29Not just to direct a consumer because I think that's a huge market.
07:32But I do think there's really good retailers that could benefit from having this product.
07:37I even think pharmacies.
07:38What's the offer?
07:40Look, you have a startup.
07:41This is a startup.
07:42There's not anything I can really go on.
07:44There's not really, at this point, we can have a real valuation to be honest, right?
07:47Right, right.
07:48So for me to do this and to give you the time, it's gonna take a lot, right?
07:51It's gonna take a lot of my time.
07:52I'm not willing to do it unless I can at least be a 50-50 partner.
07:55Oh.
07:56She was buttering you up.
08:00I know, but she's so good at it.
08:02I know.
08:03She is so good at it.
08:04I think you guys are amazing.
08:06And I really do think you have something special here.
08:09I really do.
08:10And I think I can help you.
08:11And I know that that seems like 50%, but we're in it together.
08:15And I think we can do something really beautiful.
08:17Sharp.
08:18By any chance, would you do 40-60?
08:20Oh.
08:21This is a startup, guys.
08:23I mean, this is gonna take a lot of work.
08:25So I really have got to be an equal partner with you.
08:29I love my wife.
08:30She's been supporting me so much.
08:31You guys, you guys discuss.
08:32I'm gonna let her make that decision.
08:33There you go.
08:34Whatever she says.
08:35Good.
08:36That's a very smart.
08:37Happy wife, happy life.
08:38Whatever she says.
08:39I love her.
08:40Okay.
08:41I say we should go for it.
08:42Welcome to Sleepy Baby.
08:43Yeah!
08:4450%.
08:49Thank you so much.
08:50Thank you for believing in us.
08:52Thank you so much.
08:53I promise I'm not gonna stop working.
08:54I promise.
08:55I can see it.
08:56I can see your drive.
08:57Great job.
09:00Have a good one.
09:01Great job, guys.
09:03Y'all have no idea.
09:04We did it.
09:05Thank you, Kendra.
09:06Oh my god.
09:07I was getting so scared after the four sharks.
09:08Oh my goodness.
09:09We gave away 50% of the company to Kendra Scott because we felt that not only is she gonna
09:23be such a great shark to have by our side, but I felt like that she really got the message
09:27of the company.
09:28And that's why the 50% investment with her was worth it because she really understood
09:31the struggle.
09:32And that's what we love most about her.
09:34I love you, and I really love everything you've done, and I'm gonna give you the $75,000
09:39for 99%!
09:41I mean, come on.
09:44That was ridiculous.
09:45Savage.
09:46That's all I gotta say.
09:50In Season 4, Jim Salikas and Saban Lomack made a deal with Barbara Corcoran for their
09:55food truck business, Cousins Maine Lobster.
09:57Barbara, welcome to the family.
09:59Let's see what they're up to now.
10:01When we came into the tank, we had one food truck, and we had a goal of opening two or
10:04three more.
10:05Hey, guys!
10:06Barbara came up with the idea of franchising, and we've been off to the moon ever since.
10:09And now we're over 100 trucks throughout the country.
10:12We've almost reached 1,000 employees, and we have a 7,000-square-foot distribution facility
10:17in Maine, and we're gonna keep on adding.
10:19When we first went into the tank, we only had $150,000 in sales.
10:23It's been 13 years, and we just passed $1 billion in company-wide sales.
10:30One of the things that Barbara taught us right off the bat is that fun is good for business.
10:35Every year, we do an annual retreat throughout the country, but this year, we made it really
10:39special for our franchisees.
10:40We came to a private island, Sunset Key in Florida.
10:43The purpose of this retreat is to get our franchisees and our corporate team together
10:48and celebrate them.
10:49Without you, this is not possible.
10:51To 100 trucks, to a billion dollars in sales.
10:53Cheers!
10:54Cheers!
10:55We are always family first.
10:56We all love each other, so we build that culture that makes us different from every other
11:00business.
11:01And in 2026, we are gonna be launching a new franchise concept called Cousins Fried Seafood,
11:06serving the best fried seafood, just like Cousins Made Loves to.
11:10So let me introduce Jim and Sae Rupert and Cousins Made Loves.
11:13With all of our success, we've been invited to speak at the first ever Shark Tank Summit
11:18here in Las Vegas.
11:19We go with basically our gut feeling.
11:21Is this person gonna be a good fit into our company?
11:23Are they gonna be fun?
11:24Are they gonna be energetic?
11:25Are they willing to learn?
11:26Cousins Made Loves is the biggest company I've ever invested in.
11:30They've done better than all of my other entrepreneurs, but no surprise.
11:33They're the happiest franchise in America, and I think for that, I'm most proud.
11:38Because everybody there is happy and enjoying themselves.
11:41We need to add another truck or two because we can't keep up with our own demand.
11:45Thirteen years ago, when we stepped on the Shark Tank floor, we were two young kids.
11:48And we've learned a lot from Barb.
11:50We've realized that Shark Tank gives you the platform to tell your story and take your brand
11:55to the next level.
11:56And to now be with the Sharks in Vegas on the stage with them is a full circle moment.
12:01On behalf of Jim, myself, and everyone at Cousins Mane Lobster, we want to say thank you.
12:06Thank you to all the people that visit our locations, our franchisees, our unbelievable staff,
12:10Shark Tank, and of course, Barbara Corker.
12:13Cousins Mane Lobster!
12:16Next up is a guilty pleasure without the guilt.
12:31Hi, my name is Teresa Black, and I'm from Leonardtown, Maryland.
12:43I'm here seeking $75,000 in exchange for 10% of my company.
12:48Sharks.
12:49There's a little chocoholic living inside of us all.
12:52I know it, and you know it, but the unthinkable has happened.
12:57Chocolate lovers are cutting back because it's just not healthy.
13:01Even the better-for-you chocolates aren't as healthy as we all thought.
13:05They are loaded with added sugar, or even worse, sugar alcohols, and have a host of questionable additives.
13:12People are begging for a healthier way.
13:15Well, have no fear, Bon Appa Sweet is here!
13:19We are saving dessert with our artisanal chocolate that's made using 100% superfoods.
13:26At Bon Appa Sweet, we make rich, creamy, delicious, dairy-free chocolate that is organic and only using ethical ingredients.
13:34With our chocolate, it is so indulgent because we use pure plant-based magic.
13:40We sweeten our chocolate using everybody's favorite superfood, dates!
13:47By using dates, Bon Appa Sweet chocolate has zero added sugar, zero sugar alcohols, and zero stevia.
13:54Because everybody should be able to enjoy chocolate, without the guilt.
13:58At Bon Appa Sweet, we do better for you, best.
14:01But don't take my word for it, try for yourself.
14:04I was hoping you would ask.
14:06So we're going to start on the left with golden chocolate.
14:08Now, golden chocolate is our version of white chocolate.
14:11Oh!
14:12As you'll taste, it tastes...
14:13Oh, wow!
14:14Yes, it tastes very caramel.
14:15Oh, wow!
14:16That is delicious.
14:17It's so sweet, too.
14:18So the next chocolate is better than milk chocolate, and that's my personal favorite.
14:21Oh, my God.
14:22And we call it better than milk chocolate because it tastes like milk chocolate, except without the milk.
14:25That is amazing.
14:27As a chocolate connoisseur, I'm telling you, this one actually has more of a real chocolate flavor without the heavy date overload.
14:34Oh, my God.
14:35I love it.
14:36That's on the first one.
14:37This is really good for me.
14:39Okay, what about the pumpkin?
14:40It's really good for you.
14:41The pumpkin spice warrior, it tastes like a chocolate pumpkin pie.
14:43It tastes exactly like pumpkin pie.
14:45Oh, my...
14:46That's what I was thinking.
14:47It's exactly like...
14:48So if I just took a serving of traditional chocolate versus yours, am I saving anything on the calories?
14:54You have slightly less calories, but not by a lot.
14:56But you do get the antioxidants and the vitamins that come along with the dates.
14:59How did you become such an expert to figure this out?
15:01All right, so my story starts off actually as an officer in the Navy.
15:05So I used to drive an aircraft carrier.
15:06Yay, good for you.
15:07Oh, my goodness.
15:08You were an aircraft carrier?
15:09I used to drive an aircraft carrier, yes.
15:10Thank you for serving.
15:12I love that.
15:13When I left the Navy, I actually left to go to law school.
15:16And then while I was in law school, I had my little daughter.
15:19As soon as I graduated and passed the bar, I was deployed one week before her second birthday.
15:23Wow.
15:24And at the time, I was a single mom, and so I had to leave her with my cousin.
15:27I literally cried every single day that I was deployed.
15:30Yeah.
15:31And I decided I needed to change.
15:33And so when I came back home, I actually started this business as a promise to her that I would
15:37never deploy away from her again.
15:38And I actually have a video for you so you can see I surprised her when I came home.
15:42We're finally going to go surprise Isabella.
15:44After 13 months, I'm finally going to see her again.
15:46Mommy sent you a box.
15:48Mommy's here.
15:49Open the box.
15:50Oh, my goodness.
15:51I love it.
15:52I love it.
15:53Wow.
15:54Is mommy in the box?
15:55Aw.
15:56That's so precious.
15:57How did you learn chocolate?
15:58How did you learn packaging?
15:59Yeah.
16:00So I actually watched a YouTube video and learned how to make chocolate, then I came up with
16:02this recipe.
16:03How did you come up with the packaging?
16:04So I was an advertising major when I was in undergrad.
16:05Oh, my goodness.
16:06What else have you done?
16:07She is so awesome.
16:08Lawyer, military, advertising.
16:09I feel like you haven't done enough with your life.
16:11You need to do more.
16:12You are such a rock star.
16:14So why don't you take us through the product costs.
16:17You have a co-packer.
16:18Talk about production costs, what you sell it for.
16:19What do you sell it for?
16:20Game revenue, please.
16:21Oh, my goodness.
16:22Oh, my goodness.
16:23Oh, my goodness.
16:24Oh, my goodness.
16:25You need to do more.
16:26You are such a rock star.
16:28So why don't you take us through the product costs.
16:29You have a co-packer.
16:30Talk about production costs, what you sell it for.
16:32What do you sell it for?
16:33Game revenue, please.
16:34I'm dying.
16:35So actually, I don't have a co-packer.
16:36I make it myself at my own factory.
16:38What does the product cost you to make, and what do you sell it for?
16:41Our chocolate bar costs $2.48 to make, and then we sell it directly to consumer at
16:46$8.50.
16:47Your sales must be small if you're making it yourself.
16:50We're sold in Walmart.
16:52We're sold in Whole Foods.
16:53All the Walmarts already?
16:54What?
16:55How many Walmarts?
16:56We're in about 376 Walmarts.
16:57Good for you.
16:58Wow.
16:59I actually pitched to Walmart at their open call, and they picked this up right away.
17:03And so right now, we sell about more than $100,000 a year in Walmart.
17:07And then we didn't launch in Whole Foods until 2023.
17:10So the sales in Whole Foods are also about $100,000.
17:14I raised $750,000 last year.
17:16Wow.
17:17At what valuation?
17:18That's a lot.
17:19At $4 million valuation.
17:20Teresa, what were your sales last year?
17:23All sales.
17:24Total revenue for last year was $526,000.
17:26And did you make any money on the $526,000?
17:29No.
17:30We lost $141,000.
17:32And that's primarily because someone helped us find the investors, and I had to pay him
17:37a fee.
17:38So you raised a $4 million valuation, and here you're asking for $75,000 for 10%.
17:43So a $750,000 valuation?
17:45Wow.
17:46That's interesting.
17:47So I'm doing a lower valuation because you are sharks.
17:50So let me clarify.
17:51So before this, I was able to raise $250,000 in order to try to use a co-packer.
17:55So it's $1 million you've raised?
17:57Yes, total.
17:58In addition to the $75,000, I would also like to have a line of credit.
18:03Because we just had a request in Sam's Club this year.
18:06But I requested 12 stores, and last night they requested 300 clubs.
18:11How much of a line of a credit would you need?
18:13So to do that by itself, it's going to cost about $700,000.
18:17What you're really asking for is like a bridge loan.
18:20It's not really a line of credit, because you're going to get paid eventually.
18:23I'd like to make an offer whenever you're ready.
18:26Oh.
18:27Yes, sir.
18:28So I know where you're going with this.
18:31I've actually never seen an entrepreneur make an offer that I thought was below market.
18:36To be honest, I'm just going to be honest with you.
18:38Because you have to raise so much more money to fulfill the Sam's Club and all.
18:42So I think you have the opposite problem as most people.
18:44You're being too nice.
18:45And sometimes entrepreneurs are a little too apologetic and a little too accommodating.
18:50And this doesn't help me at all, right?
18:51I'm on the other side of this equation.
18:53Well, you can offer her more money.
18:55I'm not.
18:56Yeah, go ahead.
18:57So here's what I want to do for you.
18:58I'll actually give you exactly what you asked for.
19:00I'll give you your $75,000 for 10%.
19:03I think it's a fair deal.
19:05I'm not here to beat people up.
19:06I'm still a shark.
19:07But I'm a shark when it comes to figuring out how to make money, not taking advantage
19:11of people.
19:12But the other thing I want to do for you is, I think you can do a $4 million SBA loan
19:16and never get diluted again and get this thing to $50 million in sales based on the distribution
19:21channels you have.
19:22You've already done all the groundwork that you need.
19:24All you need is a little bit of accelerator there and some financial guidance.
19:28And I think you'll get there.
19:29Teresa.
19:30That's my offer.
19:31I wouldn't think too long about that.
19:33It's a great offer.
19:34Listen, I love you, but he just gave you an offer that I think is unbelievably phenomenal
19:40and right in the sweet spot of what you really, really need.
19:44And it's ticking away.
19:45And I'm going to tell you, you're one of the most impressive entrepreneurs that has
19:49ever walked through those doors.
19:51I am so blown away by you.
19:52But I think you've got a shark here that's going to take you to the next level.
19:55This is an incredible offer.
19:56I want to be part of it, though.
19:59I want to offer you more money.
20:02And I think there's tremendous value with having Rashawn on.
20:05If you want more money, I'll give you $100,000 for another 10%.
20:11Rashawn, does that work for you?
20:13Absolutely.
20:14But she doesn't need to give up more.
20:16If you need extra money so you can get the 10% for $75,000 from Rashawn,
20:20I'll give you an additional $100,000, $175,000 for 20%.
20:26The reason why that's not a bad deal is because you will have to raise less money in the future
20:32with both of us.
20:33It's not as bad as it sounds because it's 20%.
20:36Sean, I don't understand why you don't put $100,000 up, too, and take 25%.
20:39That's the shark in me.
20:40Oh, my God.
20:41You were better off at the 10%.
20:42I actually don't want her to give up more equity than she has to.
20:49I accept both of your offers.
20:51All right.
20:52Let's go.
20:53Amazing.
20:54You're going to be your biggest customer.
20:56Congrats.
20:58I'm so happy for you.
20:59Congratulations.
21:00Thank you so much.
21:01Thank you very much.
21:02That was so impressive.
21:04And your daughter will be so proud.
21:05Let's record a video.
21:07All right.
21:08We just did a deal with your mom, huh?
21:10Yes.
21:11Hi, Bella.
21:12She's done this whole business for you.
21:13How exciting is that?
21:14Bella, look.
21:15I love you more.
21:16Bye.
21:17Bye.
21:18Nice to meet you.
21:19Bye.
21:20Bye.
21:21Great job.
21:22This is awesome.
21:23Wow.
21:24Wow.
21:25I can't believe this happened.
21:27I got way more than I asked for, and I am still the best mommy.
21:32When I got pregnant with Isabella, I was a single mom.
21:35People told me I should drop out of law school.
21:37They told me that I couldn't achieve anything.
21:40And the fact that I came here today, and the Sharks were all impressed with what I've done
21:45so far, that shows her that she can do anything that she wants.
21:50You do not let anybody else create your limitations.
21:54The sky is always going to be the limit.
22:08Next up is a fun way to unleash your creativity.
22:25Good way to start.
22:26Hi, Sharks.
22:27You ready to get hammered?
22:29Oh, yeah.
22:30I'm Megan Pando from Columbus, Ohio, and I'm seeking $150,000 for 10% equity in my business.
22:40Sharks.
22:41I'm sure you all went to art school.
22:43That's how you ended up here, right?
22:45Right.
22:46Not quite.
22:47Well, let me fill you in on what it was like.
22:49While my engineering and pre-med and finance friends were all crying into their textbooks,
22:54I was chugging cheap beers, elbow deep in wood glue and glitter, surrounded by my people.
23:02It was my sanctuary.
23:04We had studios, access to endless tools, and spent hours creating together.
23:10Not a single cell phone in sight.
23:13And I thought, why should this playground for the soul be limited to just creatives?
23:18So that's why I built Maker's Social, the DIY project bar where you can sip a cocktail,
23:26grab a power drill, and make something you're proud of.
23:30Oh, my gosh.
23:31So think restaurant vibes, but with a whole lot of sawdust and work benches instead of booths.
23:37Our craft menu consists of over 30 hands-on projects, from jewelry making to leather work
23:45and concrete planters to woodworking.
23:48We list each project's difficulty level and estimated time for completion.
23:53And when you make your selection, we deliver all the supplies to you with step-by-step instructions
23:59and pictures that actually make sense.
24:02So cool.
24:03And with a seasonally changing project menu, that means there's always new ways to connect with friends over hammers, nails, and cocktails.
24:13So, Sharks, which one of you is ready to help me bring the magic of making to every city in America?
24:21In other words, are you just a regular old shark, or are you a hammerhead?
24:28I love it.
24:29Megan, what do we have in front of us?
24:30What you have in front of you are some genuine leather wallets you're gonna make today to fit all that ROI from investing in me.
24:37Oh, my God. I love it.
24:39Your wallet's in front of you. You're gonna put it on that steel block.
24:43And then you have this stainless steel stick with a letter on the bottom, so you can stamp your initials on the wallet.
24:49You're going to hold it directly on the wallet.
24:52Okay.
24:53Then you're gonna take the mallet and give it a couple good hard hits there.
24:58Oh, cute!
25:00Voila!
25:01Oh, my gosh! I made something!
25:03We did it!
25:04Yes!
25:05That's what we're going for, that reaction.
25:08Do you remember a deal on Shark Tank called Wine and Design?
25:12I sure do.
25:13So, my first business was a paint-and-sip studio.
25:16So, I have been in this industry for over 10 years now.
25:19I sold it two years ago.
25:21What does it cost for this kit? What would you charge me?
25:24They all range between $40 and $60.
25:26And do you make the bulk of your money from the kits or from the alcohol?
25:29From the projects.
25:31Only 30% of our sales are alcohol sales, and the projects actually have an average of 95% profit margin.
25:37Oh, wow.
25:38And how big is the square footage of your...
25:401,800 square feet.
25:41You have one location?
25:42Yes, but I'm working on the second location.
25:45And what were your sales in that one location last year?
25:48Sales were $546,000.
25:49Whoa!
25:50Oh, good for you!
25:51Why?
25:52I was not expecting that.
25:53You must have made money on that, right?
25:55Yeah, absolutely.
25:56How much did you make?
25:57Last year, the net was only $41,000, but that's because...
26:01That's after you paid yourself?
26:02After I paid myself, but that's because I...
26:03How many staffers?
26:04I have a general manager that's full-time, and then I have 20 part-time employees.
26:09Wow.
26:10And you paid all of them and still took $40,000 out?
26:12Yeah, and the labor was only 24%.
26:15Well then, Megan, you're not such a crazy chicken after all.
26:18I know.
26:19It gets better.
26:20The year before, 2023, was my first really great year, because I opened in February 2020.
26:26Hard times.
26:27Yes.
26:282023 was an incredible year.
26:30I had realized that I really had something here, an 85%.
26:34What was the revenue then?
26:35The revenue was $504,000.
26:38Oh, it's the same.
26:39So we grew eight...
26:40No, that was $546,000 was last year.
26:42So we did go up 8%.
26:45I was expecting a bigger answer, because you're so impressive.
26:48You had all the answers.
26:49Well, I do have a bigger answer.
26:50This year, we are already doing more than 10% better than we were last year at this time.
26:55We do actually have to turn down a lot of business, which is painful, you know?
26:59Why?
27:00Because we're so small.
27:01So we'll have a private party that wants to book on a Friday night.
27:03We don't even have a private party room.
27:05How many seats in this one?
27:06Only 50.
27:07So the second unit is going to have many seats.
27:09I'm going to have the same amount for the open space, but then add a private event room with 30 more seats.
27:15Is that what the $150,000 is for, to open a second location?
27:18Yes.
27:19How much did it cost you to start this location in Capital?
27:22The build-out, everything, was just under $300,000.
27:26Where'd you get that money?
27:27My paint and sip.
27:28I had saved up that capital.
27:29This was always the long-term goal.
27:31So in 2016, I started learning how to make jewelry in my kitchen, and learning how to do all this stuff, because I knew long-term, I wanted something that I could modify with the times, change the project seasonally, and that I would have more customer retention than paint and sips.
27:45You want to open a second store, but, like, where do you see your big, hairy, audacious goal for this business?
27:50Like, where do you want it to go in five years?
27:54So, right now, I'm just focusing on the second location, and then what resources can I get to either franchise or open up more locations?
28:02Megan, the problem with the franchise deal, it's very hard to find another Megan operator.
28:07Exactly, totally.
28:08And so if you don't have a Megan operator, that store does not make money.
28:12Right, and I'm the face of it.
28:14I saw the same thing in Wine & Design, same deal.
28:17What interests me is, you haven't talked about customer acquisition.
28:20There's three ways that we acquire our customers.
28:22The number one way, and the best way, is through these influencers coming in and visiting, and all I do is offer them a free experience.
28:31I mean, we've had a couple TikToks go viral, and we are sold out for six months straight, and it's from one TikTok.
28:36Wow.
28:37But are you generating a content with you as the face?
28:40Oh, I have so much, it's embarrassing.
28:42I love that, Megan.
28:44Our ads actually have a four to five percent click-through rate, which is phenomenal.
28:47So, what's your customer acquisition cost? Do you know what that is?
28:5082 cents.
28:5182 cents?
28:52That's it. You're spending nothing.
28:54So why aren't you spending more money on digital? Why don't you...
28:57She doesn't have the capacity.
28:58You don't have any capacity, that's the problem.
28:59So she needs another spot.
29:00Megan, what's the average ticket?
29:0262 dollars.
29:03There's a 30% EBITDA.
29:06Experiential retail is where it's at.
29:08Totally.
29:09You've got such a great opportunity, I think, to open this next location, have so many good learnings in the future, and then really take that and figure out the formula.
29:18But I'm with Kevin. Franchising, you're the secret sauce. I have 152 stores. They are all Kendra Scott owned and operated.
29:25I do not want anybody else running these stores because I know that they're not going to run it the way I would.
29:30I wish you all the luck in the world, but this is just not the right investment for me, so that reason I'm out.
29:36And Megan, for me, I'm a venture investor, and I wouldn't be able to bring a lot of value to you.
29:41I'm not the right type of investor because I'm going to be looking for exponential growth.
29:45So, unfortunately, it's not for me, so I'm out.
29:48Yeah. Thank you so much.
29:50Megan, you are wonderful.
29:53Thanks.
29:54One of the hardest things sitting here is when you love an entrepreneur and you think they're doing something so wonderful and different, but it's just not the right investment for you.
30:03Yeah.
30:04I know you'll do great, but I'm sorry. I'm out.
30:07Thanks, Lori.
30:08Megan, you're selling an experience, and when you do that, it really comes down to the quality of you.
30:14Yeah.
30:15I'm not sure.
30:16I just don't know how to invest it and build three or four or five.
30:21Yeah.
30:22I need a bigger return than a great entrepreneur with one or two locations. I'm sorry I'm out.
30:27I understand. Thank you.
30:29As usual, all roads lead back to Mr. Wonderful.
30:34I'll make you an offer, but it's the only offer I'm going to make you because I've seen this movie before.
30:38Okay.
30:39I know exactly how it's going to work, and I'm just betting on you.
30:42I'm going to do 150 for 20%, but here's how I wet my beak. Here's how I get my money back.
30:47Oh, here we go.
30:48As I did in wine design.
30:49You take a distribution, I get 20 cents, and so I'm funding the next location.
30:55I can't run it for you. I can probably help you a little bit with social, but you don't really need it.
31:00It's word of mouth, as wine design was, because it's a local geography.
31:04Yeah.
31:05You've got a great community. They want to support you. I get it.
31:07Wow. This is a great offer.
31:09I think it is. I would take that...
31:11What's going on? He's really being sweet right now.
31:13I would take that deal because I've seen the movie, and you know, she was very similar to you.
31:17Megan, run. Don't walk.
31:19Yes.
31:20What do you think of his offer?
31:22Would you consider 18?
31:28Nope.
31:33Okay, 20. You've got it.
31:37There you go.
31:38You've got it. Thank you very much.
31:40There you go, Kevin.
31:41Congratulations, Megan.
31:42There we go. Great job, Megan.
31:45This was the best day of my life, you guys.
31:47Oh!
31:48Congratulations.
31:49Oh, my God.
31:53Oh, my gosh.
31:54I am so excited. This is literally the best day of my life.
31:57Working with Kevin is going to be a game-changer. A game-changer.
32:01I'm going to make him so proud, he will never regret this decision.
32:04Oh, my God, yes!
32:06Kevin, I have to tell you, your anger management is fantastic.
32:12It's really working.
32:13It's working.
32:14I feel like a new man.
32:28Next up is an entrepreneur who knows how to get the party started.
32:32Hey, Sharks. My name is Nelson Brooks, and I'm here seeking a $225,000 investment in exchange for 10% of my company.
32:49Have you ever been to a party that just flopped?
32:52Ugh.
32:53The drinks are weak, the vibes are off, and everyone's just awkwardly checking their phones, waiting for an excuse to go home?
32:59Well, say what's up to Cabana Boys events, where we send high-energy, attractive, and professional party hosts and bartenders to private events across the country.
33:09Our portfolio includes five sexy brands at your service.
33:14Our Cabana Boys will get the party going at your bachelorette weekend.
33:18Whoa!
33:19Hey, ladies.
33:20Oh, I like this pitch.
33:22Our Cocktail Boys are southern gentlemen with charm and hospitality like you've never seen before.
33:29Oh.
33:30Make your hoedown a hit with our Cocktail Cowboys.
33:33Yee-haw!
33:34Yee-haw!
33:35There we go.
33:36Yeah.
33:37Gentlemen, make your boy's trip memorable with our Cabana Girls.
33:40Hello.
33:41Hey, boys.
33:42The Cocktail Crew is a team of skilled bartenders who will keep it buttoned up for your more upscale and professional events.
33:49Yeah.
33:50Yeah.
33:51From wild bachelorette weekends to bougie birthdays to high-end holiday parties, we turn your average party into an experience people will talk about for years.
34:02The celebration economy is worth billions, and I've built the brands to capitalize on it.
34:07So, Sharks, who's ready to shake things up, stir in some charisma, and take this business to the next level, one party at a time?
34:16Let's get this party started!
34:18Hey!
34:19Whoa!
34:20Whoa!
34:21Oh, wow!
34:22Oh, yeah!
34:23Let's go!
34:24Let's go!
34:25So, Sharks, we have some treats for you.
34:28What are you giving us?
34:29So, Rashawn, we have a vodka martini for you, as well as a...
34:32How did you know?
34:33That's my drink.
34:34Kevin, we have a...
34:35We call it the Tipsy Cabana Boy.
34:37Thank you very much.
34:38Wow!
34:39Wow!
34:40Oh!
34:41Oh, you know Texas!
34:42Let's go!
34:43Kendra, this weekend you're going to Nashville with our Cocktail Cowboys.
34:47Wow!
34:49What does Lori have?
34:50It's her bachelorette weekend in Scottsdale, so you have a Tipsy Cabana Boy and some grapes as well.
34:55Cheers, Robert!
34:56Cheers, Kevin!
34:57I love that you got me the cowboy.
34:59You knew!
35:00Oh, I knew!
35:01You knew Texas Tornado!
35:02So, Kendra, do you remember your birthday last year?
35:04Oh, heck yeah.
35:05I think you had a pretty good time.
35:06I think it was your...
35:07Was that you guys?
35:08It was.
35:09Because I was just going to say, oh, locally, we can get this.
35:11Yep.
35:12That's us.
35:13It was your...
35:14I think it was your 25th birthday.
35:15It was my 25th birthday.
35:16Exactly.
35:17I remember.
35:18Are you 25?
35:19I know.
35:20Kevin, did you get invited to her birthday party?
35:22Yes, I was there.
35:23Thank you, team.
35:24I appreciate it.
35:27Amazing.
35:28Thank you for wanting to invite me.
35:29So, this is an event-based business.
35:31Correct.
35:32And I don't know what geography you scaled it up to, but maybe you should walk us through
35:35that.
35:36Explain what the business model is.
35:37So, Scottsdale is our main city, but we're now in eight cities across the country.
35:41Which ones?
35:42Which ones?
35:43So, Scottsdale, Palm Springs, and L.A., and Miami, Austin, and Nashville.
35:47The perfect places to be, of course.
35:48Amazing.
35:49The best cities.
35:50Yep.
35:51Charleston and Savannah.
35:52If I go to beach party in Miami or around my pool and I want to get this service, what's
35:55the deal?
35:56Yeah.
35:57So, it really depends on the vibe that you're going for.
35:58So, I would recommend Cabana Boys.
36:00They're professional party hosts that really just elevate your party in a whole other way.
36:04So, I get bartender service.
36:05Let me tell you, it's not just bartending service.
36:08What is it?
36:09It is, like, they're dancing with people.
36:11They're two-stepping while they're, like, bringing you a drink.
36:14I mean, I thought it was just I was special because it was my birthday, but...
36:17And how much is that cost?
36:19How much is that cost?
36:20Use the Scottsdale market as an example.
36:21Well, use Kendra's party.
36:22How many people do you have?
36:23Kendra's party, I believe we did $80 per hour per bartender for that.
36:26Okay.
36:27Our most popular service is in Scottsdale.
36:29It's a two-hour party.
36:30It costs $550.
36:31That's really not bad, actually.
36:33No.
36:34On an average $550, what would you make?
36:36So, we make a 57% profit margin on that $550 party.
36:40So, this is, like, where I get concerned.
36:42And, obviously, I've grown a business.
36:44I've got 150 stores.
36:45The people are everything.
36:47Absolutely.
36:48That's your secret sauce.
36:49How do you scale and make sure you have the most awesome people that are delivering that
36:54wow experience?
36:55Yeah.
36:56One of the reasons why I'm here today is to get some funding to hire a director of customer
37:00experience.
37:01The customer experience, to your point, is everything.
37:02It's everything.
37:03It's the foundation of what we do.
37:04Yeah.
37:05And if we're not hiring the best people in every market we operate, this is not sustainable.
37:09What are your sales?
37:10So, my lifetime sales is about $3.6 million.
37:11What about this year?
37:12That's good.
37:13What about this year?
37:14This year is about $567,000 year-to-date.
37:17Last year, we did over $1.1 million.
37:19You made 57% margin.
37:21Yeah.
37:22You made about $500-something thousand.
37:25What did you clear after everything?
37:27Last year, unfortunately, we lost about $146,000.
37:29Why?
37:30The reason being, I tried out some marketing strategies.
37:34Frankly, this didn't work.
37:35Yeah.
37:36I hired a social media agency that didn't know what they were doing.
37:38I hired a growth marketer that was not a good fit for my business.
37:41I did some advertising that produced no ROI.
37:44I learned some lessons.
37:45Nelson, for me, I think it's a services-based business.
37:48Yeah.
37:49That makes me nervous.
37:50Sure.
37:51You're doing something great.
37:52I would encourage you to absolutely keep going.
37:54As an investor, though, I don't see the return.
37:57I'm out.
37:58Okay.
37:59Look, my problem with this deal is thinking scale.
38:02It's gonna be tough.
38:03I don't see how I'm gonna make 10X on this, and that's what I need.
38:06I'm not gonna take the ride with you.
38:08I just, I don't see it for me.
38:09Okay.
38:10I'm out.
38:11I think you did a great job in here.
38:13It's a fun idea.
38:14I can see why this fits with you.
38:16But to me, I just don't feel that you need an investor.
38:19Okay.
38:20And I wish you good luck, but I'm out.
38:23So what's gonna separate somebody else from doing this?
38:27Like, what's gonna make you this disruptive figure in this industry?
38:31Sure.
38:32One, we have the first mover advantage, right?
38:33Our edge is how we package the service.
38:36There's, I didn't invent a bartender, but I was the first person to package it in a way that was that perfect blend of hospitality, charisma, aesthetics, professionalism, and doing that at scale.
38:47Well, Nelson, I'm more of a venture capital-style investor.
38:51The service part of it makes it very difficult for me.
38:54It's just not my industry nor is in my area of expertise, so unfortunately, I think I'm out.
38:58No problem.
38:59Thank you, Rashawn.
39:00All right.
39:01Well, I love your business.
39:03Obviously, I got to experience it firsthand.
39:06Service-based businesses scare me.
39:08I'm not gonna lie.
39:09Yeah.
39:10But I have a company that did 25,000 events last year.
39:1525,000 events.
39:16That's crazy.
39:17That's a lot of events.
39:19We are an event-driven retailer.
39:22We believe, as a retailer today, you cannot just sit there and wait for people to come to your stores.
39:26Yeah.
39:27Activity breeds activity.
39:28And we are hosting events every single night of the week.
39:32So, right there, you have an event business that I could kind of plug in.
39:36There you go.
39:37And help facilitate all of these amazing events that we do as a brand.
39:42So, strategically, this is exciting for me.
39:45Your valuation, though?
39:47Honey, we gotta talk.
39:48Okay?
40:00Four sharks are out.
40:02Kendra is Nelson's last chance for a deal for his party staffing service, Cabana Boys.
40:07I want to be part of this because I think us connected with my brand, your brand, is like a great idea.
40:13Yeah.
40:14I'm gonna need more.
40:15Okay?
40:16So, you want $225,000.
40:17I'll give you $225,000.
40:19But, I'm not gonna give it to you for 10%.
40:21Okay.
40:22All right, honey?
40:23I'm gonna give it to you for 40%.
40:25Woo!
40:26Oh!
40:27Oh!
40:28Hostile takeover!
40:29You still get to be the majority shareholder.
40:31Yeah.
40:32But you also get plugged in to a person who is gonna give you a lot of business up front.
40:37Well, there's a reason she's wearing red.
40:39There's blood in the water.
40:40Oh, this is nasty.
40:42I mean, look.
40:43It's strategic, though.
40:44It is.
40:45And you lost money.
40:46I mean, the multiples.
40:47This saves you three years of work.
40:48Exactly.
40:49So, we built the foundation last year.
40:51I have a team that I trust.
40:53We did 1,800 events last year.
40:55We just opened up Miami and Fort Lauderdale.
40:57Nelson, now is not the time to sell.
40:59Yeah.
41:00I did 25,000 events.
41:02That's impressive.
41:03Okay?
41:04Yeah.
41:05Think about that for a minute.
41:06Would you do 275K for 25%?
41:09Wait.
41:10You're asked for 225, not 275.
41:12But we're gonna stick with 225, okay?
41:14225 for 20%?
41:16No.
41:17I would do 225 for 40%.
41:2140% is a lot.
41:22I'm a lot, you know?
41:24I can give you a lot.
41:26Are you willing to negotiate lower than 40?
41:29How about 36%?
41:31Ooh.
41:32Ooh.
41:33Wow.
41:34How about 250 for 33%?
41:36Why are we increasing the amount?
41:38Nelson, two...
41:39The capital will certainly help us a ton.
41:41I need to put fuel on the fire to just blow this thing up.
41:44Okay.
41:45225 at 32%.
41:48Deal.
41:49Let's do it.
41:50Yay!
41:52Yay!
41:53There you go.
41:54Good job.
41:55I'm so excited.
41:56We are gonna have so much fun.
41:57Let's go.
41:58I'm so excited.
41:59Let's make people happy.
42:00Good job.
42:01Thank you all.
42:02I really appreciate it.
42:03Great job, Ken.
42:04Oh, my God.
42:05He has no idea what you're getting ready to do to this business.
42:06I know.
42:07He's gonna be so excited.
42:08Woo!
42:09Let's go!
42:10Hey!
42:11Hey!
42:12Hey!
42:13Hey!
42:14When she said honey, you knew what time it was.
42:15I know.
42:16I love it when you call him honey while you're stabbing him in the back.
42:40Hey!
42:41You MANNING my wife.
42:42You might have to fight him now.
42:43I'll never hit you when he was out.
42:44I know.
42:45I know.
42:46He's gonna fight him.
42:47You're gonna fight him in the back.
42:48Hey!
42:49Hey!
42:50Hey!
42:51Hey, hey, hey, hey!
42:52Hey!
42:53Hey, hey, hey, hey!
42:54Hey, hey, hey, hey, hey!
42:55You
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