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00:00Shark Tank is for anyone who dares to dream.
00:04Sharks, I'm asking for some serious dough.
00:07How much debt do you have?
00:08We're forecasting $2.1 million.
00:10Whoa!
00:11What do you need?
00:11I need a little bit of guidance.
00:13If you guys, like Kobe, want to bet on Kobe.
00:15I love your dare to dream.
00:16You have that tenacity.
00:18And tonight, Kendra Scott, founder of billion-dollar jewelry sensation,
00:22Kendra Scott, joins the tank.
00:23I dared to dream that it was possible to have big dreams.
00:27You should dream big.
00:28I don't want a job, okay?
00:29I'm the chef, Mr. Wonderful. I just need your money.
00:39First in the tank is a winter sport accessory
00:42that is functional and fashionable.
00:52Hi, Sharks. My name's Kelly.
00:54And I'm Christina.
00:55We're from San Francisco, California,
00:57and today we're seeking $200,000 in exchange for 10% equity of our company yard sale.
01:03Sharks, if you've ever skied, you probably agree with us.
01:06Ski poles kind of suck.
01:07They're clunky and easy to drop.
01:11Plus, they're made of cheap materials, they come in limited colors,
01:15and I think we can all agree, they're pretty ugly.
01:18We're lifelong skiers and know firsthand that people are constantly looking to upgrade their ski gear.
01:22But when it comes to innovation, ski poles have been, well, long forgotten.
01:26That's why we started Yard Sale.
01:28Yard Sale ski poles blend clever design and great style for the everyday skier.
01:32The best part about Yard Sale poles? They're magnetic!
01:35We've hidden magnets in the handles and the baskets so that they stick together,
01:39making walking to and from the car or getting on and off the lift an even easier experience.
01:43Skiers love how Yard Sale poles are fully modular,
01:46so you can mix and match between the five eye-catching colors on our website to create your own custom
01:50pair.
01:51With Yard Sale, we're not only making ski days easier and more fun,
01:54but we're creating a lifestyle brand for the millions of recreational skiers out there.
01:58So, Sharks, who's ready to ditch your old poles in the snow and ride the chairless with Yard Sale?
02:04Oh, I love it.
02:05I love the name.
02:06This is a sample?
02:07Yes.
02:08Why the name Yard Sale?
02:10Okay.
02:10Haven't you ever had a yard sale on the mountain?
02:13So, yeah, Kendra.
02:14No, actually no.
02:15Are you a black diamond skier?
02:17You don't know what a yard sale is?
02:18No.
02:18It's when you lose everything.
02:21Your skis come off.
02:22Your poles come off.
02:23It's like, they call it, like, you know, like a yard sale, like a garage sale.
02:26So, like, does everybody that skis know that?
02:29It's kind of an insider term.
02:31Kendra clearly is a skier in the room.
02:32And clearly, I've had a lot of yard sales.
02:35And it actually goes a bit back to the origin stories of how we actually came up with the idea.
02:38Christina had an infamous epic yard sale or wipeout, and that's where she came up with the idea.
02:43I had a bad yard sale.
02:44It got me thinking about my greatest frustration with the product,
02:47which for me is when you're carrying them, they're always crossing over, they're falling down.
02:52And so I thought, why has nobody put magnets on ski poles?
02:55And are you the only one doing this?
02:56Yes.
02:57We are.
02:57I started tinkering with my old poles, and I basically taped some magnets to the handles of these.
03:02I walked around the corner to Kelly's house, because he lives very close by to me, and I asked him
03:06what he thought.
03:07No one has ever in decades rethought the humble ski pole, yet every skier needs them to ski.
03:13What are your backgrounds?
03:14I've always been passionate about design, and so I was very fortunate to follow that pursuit to MIT,
03:19where I studied mechanical engineering and product design.
03:22Afterwards, I worked at Apple as a product designer across various teams.
03:25And as an avid skier, I was ready to jump into a consumer product.
03:29So are you guys full-time in this?
03:31We are.
03:31We are, yeah.
03:32So my background's more on the marketing side of things.
03:34After college, I worked for a hardware tech startup in marketing, and then I transitioned to the venture capital side,
03:40where I was the head of content and PR for a VC firm in San Francisco.
03:44One of the most important things to note as well is that over 60% of our customers online customize
03:48their poles,
03:49which means that we have a huge adoption rate.
03:50So you're not doing any retail, right?
03:52So we are in a few specialty stores.
03:53So what's your price compared to a regular pole?
03:56Absolutely.
03:57So we just launched six months ago, and we make the product for about $30.
04:01We landed it for $42, and we sell it for $139.
04:04It's 75% margin.
04:05What are like the average poles out there?
04:06Great question.
04:07We're in the upper middle range in the market.
04:08Okay.
04:08So on the lower end, you have about $50, $60 poles, which are just cheap aluminum ones.
04:12But on the upper end, you have really advanced poles.
04:15But we sit really in the middle, and there's other poles that are, you know, in our range, but no
04:18one that offers features like we do.
04:20What have you sold so far?
04:21Yeah, great question.
04:22Yep.
04:22In the first month, right before the holidays this past year, we did $100,000 in sales in our first
04:27month.
04:27Wow, good job.
04:28So we are, fiscal year to date, $220,000 in sales.
04:31220?
04:32Yes.
04:32And we are forecasting to end the year, which for us ends in September, at $300,000.
04:37Okay.
04:37Next year, we're forecasting $2.1 million in sales.
04:40Where and how did you sell them?
04:41Yeah, so we launched D2C only.
04:43We'll be expanding into retail next winter.
04:46With who?
04:47Well, what was really exciting is in our first 30 days, we had REI reach out to us, backcountry, decathlon
04:52in Europe.
04:52No problem.
04:53When I get new poles, I'm in the boots, in the store, and we're sizing, and, you know, we're trying
04:58to figure out exact, you know, the pose, right?
05:00Right, totally.
05:01So what happens to you?
05:02Those are a little long for you.
05:03Do you need multiple different sizes of this in inventory?
05:07They come in five sizes.
05:09So that's an inventory nightmare, right?
05:11Oh.
05:11Well, we've got an answer for you, Mr. Wonderful.
05:13Okay.
05:13What you can actually see in our kids' poles, which are on the far left here, is that they're adjustable,
05:17and we'll have adjustable poles for adults next year as well.
05:20Wait, you mean so they'll continue to slide?
05:22Yeah, so actually, as kids grow, they'll grow in the poles.
05:25Yeah, exactly.
05:25I have kids from ages 10 to 22, by the way.
05:28I don't see that out there.
05:29Let me just tell you how I feel.
05:31Yeah.
05:31So, first of all, I don't really love the name.
05:35I think it has a bit of a negative connotation and an incorrect connotation for a premium-quality brand-new
05:42item that's innovative.
05:43Yard sale just feels like it's a disaster, and it's when the worst thing happens.
05:47And then I'm not a skier and have to feel passionate about the product, love the people, but don't feel
05:54it here.
05:55So, I'm sorry.
05:56I'm out.
05:57Thank you so much, Lori.
05:58Thank you, Lori.
05:58I love the name.
05:59So, when I started FUBU, they were like, what is a FUBU?
06:03Is it Italian?
06:04Is it Japanese?
06:05Is it number three that won the poo-poo platter?
06:07What is it?
06:07And that exactly became a conversation that stood out from everybody.
06:12You know how many times people come up here, their name is too close to something else, and then they
06:15spend a lot of money, and they lose it.
06:18They don't get it.
06:18I will say, it is one of the biggest reasons skiers have paid attention to our brand.
06:22I agree.
06:22Lori, I'm part of the snowboarder community, and we hate you guys.
06:27So, I don't know.
06:28I just don't like skiing.
06:30This is just not for me.
06:31So, I wish you all the best.
06:33Great innovation.
06:34I'm out.
06:34Thank you.
06:34Thank you, Damon.
06:35I've never skied once in my entire life, and I have no intention of starting.
06:40So, for those reasons, I'm out.
06:43I love this.
06:45I love the name.
06:46This is really great.
06:47It's catchy.
06:48But, you know, you're early.
06:50This is six months in.
06:51You're putting, really, a $2 million valuation on a business with what you're asking.
06:55And we realize there's a high risk behind that.
06:57And so, actually, one of the things that we did was, we are obviously asking for $200,000 for 10%.
07:02But we do have a lot of profit margin in our product.
07:06And so, therefore, we do actually have a bit of a secondary offer in our back pocket.
07:10Oh, you wanted to say royalty?
07:12Thank you.
07:12Mr. Wonderful, we'd love to talk to you about.
07:13Let's share it.
07:14So, if you're willing, we'd love to make you an offer of $200,000 for 5% with a $3
07:18royalty until you recoup your initial investment of $200,000.
07:22That's the first time a company has ever offered to Kevin a royalty.
07:26Offered a royalty.
07:27We ain't afraid of a royalty.
07:29That's a first.
07:30I would prefer to model it this way.
07:33Uh-oh.
07:33I'll do the $200,000 for 20%, and I'll take my chances on distributions.
07:38I want a distribution when you distribute to yourselves, but I want to wet my beak on this one.
07:43I want 20%.
07:44Well, yes, absolutely.
07:45Of course.
07:45We'd love to talk about what Kevin would have to do to roll up his sleeves and really help us.
07:49Ooh.
07:50Well, I don't want a job, okay?
07:51You know, you just said you need somebody who's going to roll your sleeves up.
07:54Honey, I've done it.
07:55I get retail.
07:56I get omnichannel.
07:57I think you have a great direct-to-consumer, but wholesale is where you can really build this business.
08:01Absolutely.
08:01That's how I started Kendra Scott.
08:03I'm going to do 20% as well, plus I want the $3 back until I recoup my $200,000,
08:08okay?
08:09Thank you.
08:09All right?
08:10The difference here is I really do think I can help you with this wholesale strategy.
08:14I'll drop my ass to 15%, but I'll take the $3 royalty until I get back $400,000, so it's
08:22just a 2X.
08:23Would you be interested in doing $200,000 for 8%?
08:27We'll drop that equity down, but we'll increase your royalty to $5 a unit until you recoup $300,000.
08:33I'll do it at 10%.
08:34I want the royalty, but I want a 2X on it, right?
08:37That's just going to put us in a really tight position in the future.
08:40Actually, we think at $5 a unit, we can actually get you your $300,000 back if you will take
08:45that offer within under two years.
08:47Getting my money back is not why I do deals.
08:50I want to get a multiple on it.
08:51Kendra, would you be interested in that sort of a royalty offer, which is $200,000 for 8% with
08:58a $5 a unit royalty until you recoup $300,000 back?
09:03You know what? I actually really like that. I like that. I do like it.
09:07Can we do 10% and you have yourself a deal?
09:10If you'll drop to $250,000 on the royalty payback, you got yourself a deal.
09:16$300,000.
09:17Oh, my God. $50,000?
09:18Will you up the cash?
09:19Come on.
09:19Will you up the upfront cash to $250,000 at 10% with a $5 royalty until you recoup $300
09:25,000 back?
09:27Done.
09:28Done.
09:28You got yourself a deal!
09:29Yes!
09:30Let's go. I'm going to come over here. I'm skiing over. I'm so excited.
09:35Thank you Kendra. Oh, my God. Thank you so much.
09:37I really have these everywhere I go.
09:39Thank you so much. This is so exciting.
09:41Thank you, guys. Thank you all.
09:42Thank you.
09:43You skis deserve each other.
09:46That was amazing.
09:47That was insane.
09:48Kevin has an amazing team, but Kendra was really excited.
09:50Kendra's a behemoth. She's also a billionaire.
09:52Yeah. She is a billionaire.
09:54And she seemed really excited and really genuinely just, like, willing to roll up her sleeves and help us with
09:59all the things that we need help with.
10:13Next up are clean beauty products that harness the power of nature.
10:25Hello, Sharks. My name is Kobe Harris. I'm here today seeking $300,000 for 6% equity in my company,
10:30Kobe's Co.
10:31We believe Mother Nature herself deserves the best kiss. Sharks, let's talk about lips.
10:36We all have them. We all use them. But are we treating them right?
10:40That's why I created Kobe's Co.
10:41100% natural, handmade, and sustainable lip balms that don't just lock in moisture. They lock in trust and transparency.
10:48Because our ingredients are so clean that you could eat them. But don't.
10:51We source our bees who act from happy bees who listen to classical music all day.
10:55And our oils are pressed from plants who have won beauty contest. Can you believe that, Sharks?
11:00Nah, I'm just kidding. Kobe's is made from only four simple ingredients.
11:04Bees wax, coconut oil, sunflower seed oil, and mango butter.
11:07I started with lip balms but have quickly expanded to a lotion bar, lip scrub, cuticle butter, and even a
11:13hand salve.
11:14So who's ready to pucker up, kiss the bad ingredients, and plastic packaging goodbye with Kobe's Co?
11:20Sharks, in front of you is an assortment of Kobe's Co's products so you too can be a part of
11:23the Kobe's hive.
11:25Wow, I love the packaging.
11:27Wow, so each lip balm is a tiny little thing.
11:30Mm-hmm, correct.
11:31Smells very good.
11:32I like the flavors, yeah.
11:33Flavors are cool.
11:33We have ten different flavors.
11:35I did start off with like a traditional size lip balm tube, but since I wanted to be compulsible,
11:39you have to be able to push it up because there's no twist function.
11:41So it has to be a little bit shorter and it has to be a little bit wider so you
11:43put your finger up there and put it in.
11:45Yeah, that's smart.
11:45Kobe, are you selling in retail with this?
11:47No, it's really all online right now, direct to consumer on our website and then Amazon as well.
11:51Tell us about you.
11:52I started this when I was a freshman in college actually.
11:54I was doing research on packaging and bees with one of my sustainability professors.
11:57I went to my mom, I was like, hey mom, I got this idea.
12:00And it's called Kobe's.
12:01I want to make all natural lip balm, personal care products.
12:03I need a little bit of money to, you know, just get the base ingredients.
12:06So she gave me 200 bucks, went onto Amazon, bought, you know, all the raw ingredients that I could find.
12:11You know, the beeswax, the butters, the oils.
12:13I really just spent that whole summer formulating.
12:15It was like three months and then I worked as a lifeguard.
12:18So I ended up towards the end of the summer passing it out to, you know, everybody that I could
12:22find.
12:22I would go home from my shift, make 50 balms and a little hot plate in my bedroom floor, you
12:27know, mixing up waxes with a pipette, filling them one by one.
12:30And then I would walk around to the pool and then hand them out to people at the pool.
12:35So that first summer is really where I kind of started to figure some things out.
12:38So I had a day where I made $3,000 in sales.
12:41That was the most money I've ever seen in my entire life.
12:43My bank account, I remember it hit.
12:44I was like, I was so excited.
12:45I was ecstatic.
12:46Such a good feeling.
12:47Yeah.
12:47And then I think a month later I had a day where I made $10,000 in one day.
12:50And then towards the end of the summer, like two weeks before, classes went back up.
12:54Did the 15 grand in sales one day and went on my campus portal, exited out of all of my
12:58classes.
12:58And since classes were online, I just told my dad, you know, I'm still in school.
13:03But really, I was just in the basement making lip balms and trying to mark it all day.
13:08So, Kobe, your story is so amazing.
13:11And it really touched me.
13:12I did the same thing.
13:13And I dropped out of college.
13:15I ended up starting my business.
13:16So I hear that.
13:17My dad today obviously looks at me and he's like, honey, you made the right decision.
13:21I bet your parents are so proud of you.
13:24Yeah, my mom was a huge proponent of kind of help.
13:27She started a couple of businesses when she got out of school as well.
13:29Because I was going to school to be a doctor actually at first.
13:31That's what I wanted to do.
13:32I went to summer camps for it.
13:33I took summer classes, shadowed surgeons.
13:35When I went to my mom that summer and I was like, hey, mom, I think I might want to
13:38switch
13:38from trying to become a doctor to make lip balm.
13:40And as crazy as it sounds, she was like, you know, Kobe, you know, I understand, you know, go with
13:44your gut.
13:45And that's kind of what's propelled me forward to have the confidence to be able to do some of the
13:49things that I'm doing.
13:49That year we did about 30 grand.
13:52The year after that we did about 200.
13:55And then last year we did 864,000.
13:58And this year we've already done a little over 1.5 million today.
14:02Wow.
14:031.5.
14:04Wow.
14:05Wow.
14:07That trajectory is quite large.
14:09But what was it that made that change?
14:12I just learned how to run Facebook ads, like TikTok posting videos.
14:16That's really what I know how to do.
14:17I'm, you know, Gen Z.
14:18I'm a young kid.
14:18I know social media.
14:19Do you know your ROAS, your return on ad spend?
14:22It's about 2.5 to 3.
14:25Okay.
14:25That's a little light.
14:27Mm-hmm.
14:27But my question is for an investor, I look at this and say, if you know your ROAS and you
14:31know your CAC,
14:32investment acquisition, and I give you 300,000, why wouldn't you just use that to pour it on the fire?
14:38In other words, you don't need anything else other than more capital to spend more on advertising.
14:43Sure.
14:44What does it cost you to acquire a customer?
14:46Right now, blended, it's $14, $15.
14:48What do you make on your average order?
14:50$32.
14:51Our main SKU was like a six pack or a six to nine pack.
14:54Of this, though.
14:55It's a lip balm.
14:55Yes.
14:55The rest of this stuff is a fraction of the sales?
14:57Yes.
14:58So lip balm was about 75% of our sales.
15:00The rest of it is personal care.
15:01It's about 25%.
15:02This little unit right here costs $5?
15:05It costs...
15:05I mean, you sell it for?
15:06Sell for $5 costs $0.26 to make.
15:09What are you going to make this year?
15:10So I think we'll finish the year with around $3.5, $4 million in sales.
15:14What are you going to make on that after you pay yourself and all your employees?
15:16I think we'll net about $700,000 to $800,000.
15:19So, Kobe, first of all, as a mom of sons, I have a son about your age.
15:24Sure.
15:25I'm blown away by your story.
15:27Like, I'm so proud of you.
15:29This is not my...
15:30This isn't my wheelhouse.
15:31Sure.
15:32I want to buy your products.
15:33I'm going to use your products.
15:34I'm going to tell everybody about it, but it's just not the right investment for me.
15:38So, I'm out.
15:39I appreciate it.
15:40Kobe, what do you need?
15:42I need somebody who can give me a little bit of guidance.
15:45We need a little bit of help maybe with distribution.
15:47You know, lip balm is a $5 skew, so it's really hard to sell a lot online if we're not
15:52selling a huge volume.
15:52So, I think being in those checkout counters, the point of purchase, retail would be very, very helpful.
15:58I could get you retail in pretty well every big box, and they do sell millions of dollars a week
16:05in lip balm.
16:05Sure.
16:06But to get the shelf space at point of sale, that ain't easy.
16:09Yeah.
16:09Because you're displacing somebody, and they're going to want a listing fee for that.
16:12I like the deal.
16:13I'll make you an offer.
16:15I'll give you the $300,000 for 20%.
16:1720%?
16:19Yeah.
16:20I don't think you're worth $5 million.
16:22So, Kobe, I'll tell you what I think.
16:24Sure.
16:25I feel that it's a hard road once you try to go into retail, because how do you stand out
16:31amongst the rest?
16:32Because there's so many out there right now, and some with the B's kind of name.
16:37Sure.
16:37I really feel it's a great online business for you.
16:41Sure.
16:41I love it, and you've done a great job, but not really right investment for me.
16:47I'm sorry.
16:48I'm out.
16:48I appreciate it.
16:49So, I think you're going to crush it.
16:51I just don't see the lip balm business as something that I can really bring the value add that you
16:56really need.
16:57And so, for that reason, I'm out.
17:00Thank you.
17:01Man, I love this, and it reminds me of my story.
17:03You know, my mother was the same way.
17:04She wanted to start her own businesses, but, you know, life happened.
17:08She became a single mother, and she had to work a bunch of jobs to make sure that I was
17:14okay.
17:14Sure.
17:14So, she wasn't able to fill that dream.
17:16So, we kind of got together, and Mom helped me.
17:20So, I really love this.
17:21I love the idea.
17:23I just don't think I want to be in this business.
17:26I want to be in the Kobe business, though, but this is not the business I want to be in.
17:29So, I wish you all the best.
17:31It's not for me.
17:32I'm out.
17:33Thank you.
17:34Well, then there was Kevin.
17:35All roads lead back to the big B in here.
17:49Four sharks are out.
17:51Kobe has an offer from Kevin for his natural lip balm company, Kobe's.
17:55But he wants a much bigger stake than the 6% Kobe came in offering.
18:00I would never go into the lip balm business because it's so competitive.
18:03The only deal I'm looking at is giving you $300,000 because I really think you're sharp.
18:08I really do.
18:09I want to show this to my retail distribution partners, but I don't want you to fall in love with
18:15that too fast.
18:16Sure.
18:16Because I really want to focus, if we're going to do this deal, on this ROAS thing because you've proven
18:22you've got enough gasoline going here that we can make the flame bigger.
18:26But I want 20%.
18:27A lot of work.
18:28You know, I want to get my money back one day.
18:29So $300,000 for 20% is $1.5 million.
18:33We'll end the year doing almost having netting $700,000 to $800,000.
18:36So you're only about two times that.
18:38And you're saying the only thing that I'm going to be really using the money for is pouring it on
18:41marketing.
18:41So why can I not go get a loan for $300,000 and spend it on marketing?
18:45You could.
18:45Absolutely.
18:46I'll be right there and keeping all 20%.
18:49What I will say is I know lip balm is not the traditional business, but like you said, if you
18:53guys like Kobe and want to bet on Kobe,
18:54this is one of those things I would love for you guys to be a part of.
18:58I would add one thing though.
18:59Sure.
19:00You could do that or you could do it the way I do it and there would be a big
19:03difference in yield because you don't have the advantage of scale.
19:06What we do is consolidate our buys across all of our companies and buy at a fraction of what you're
19:11paying because you're just Kobe.
19:13Not that you're a bad guy.
19:14It's just you don't have the buying power.
19:16Just between you and I.
19:17That's my deal.
19:18You don't have to take it, Kobe.
19:19Make a decision.
19:21I understand.
19:21So you wouldn't do even $300,000 at 10%.
19:24No.
19:25No.
19:29I'm not going to give up 20% of my company today.
19:31What would you give up?
19:34I'd be willing to take more money for a higher.
19:37$300,000 is enough for what you're doing.
19:39It's a big ask actually for what you've got.
19:41If I stay at $300,000, you won't meet in the middle between $10,000 and $20,000.
19:45That's $15,000.
19:48Tough decision.
19:50I know.
19:5415%.
19:54It should be painful, Kobe.
19:56I know.
19:56Those are great deals because I'm suffering like an animal right now but the 5% I just gave up.
20:01He doesn't want to suffer like an animal too.
20:04Yeah, no.
20:04Me neither.
20:06Pain.
20:06Both sides.
20:07Pain.
20:13I won't do that.
20:15I appreciate it.
20:16Thank you, Kobe.
20:17Congrats, Kobe.
20:17Hey, good luck, Kobe.
20:19Congrats.
20:19Congrats by you.
20:24Ultimately, I walked out of here without a deal today but I think that's okay.
20:27You know, I've turned down deals in the past that might have seemed good at the time but at the
20:30end of the day you have to feel like you need to trust your gut.
20:32You know your business better than anybody and I know my business better than anybody.
20:36And no one person is going to build Kobe's.
20:38Kobe is going to build Kobe's.
20:39So I think we'll be just fine going forward.
20:43In season 15, we watched 8-year-old Gavin Batarcy, his sister Morgan, and their dad John make a deal
20:49with Michael Rubin and Mark Cuban for glove wrap.
20:52Which Gavin invented to help break in baseball gloves.
20:55Just place a bow in a glove and wrap it up with glove wrap.
20:57That's literally it.
20:58Let's see what they're up to now.
21:01Closing a deal with Mark Cuban and Michael Rubin has been a game changer for our business.
21:06Before Shark Tank, we only had $19,000 in sales but now it's been 10 months and we already have
21:12over $200,000 in sales.
21:15Our social media has exploded.
21:17Before, we only had 30 million views.
21:20Now, we have over 100 million views and over 350,000 followers.
21:25We were only selling online and in six mom and pop shops.
21:29After Shark Tank, we're in every shows across the country and we just got our first P.O. from Dick's.
21:35But the best was still yet to come.
21:40Michael Rubin was able to open doors to MLB, so now we are the official glove wrap of Major League
21:46Baseball.
21:47I saw an entrepreneur having more hustle than me at eight years old.
21:50I said, that's a guy we got to back and invest in.
21:52We're at MLB All-Star Weekend, handing out product, meeting our favorite players.
21:56Couldn't be more excited.
21:56It breaks into baseball, but I invented it.
21:59Having a deal in place with Major League Baseball gives them the ability to access all of the Major League
22:03Baseball players.
22:03They have the official Major League Baseball batter man on their products.
22:07It just gives us a sense of authenticity that he needed to take the business to the next level.
22:10I think the company has tons of potential.
22:12He's already doubled his business.
22:13He's got capital behind him.
22:15Getting this to more and more players, team-based glove wraps.
22:17From Little League to the top players, that's what glove wrap can do.
22:22We walk around baseball games especially.
22:24We have a lot of parents and kids that come up to us saying that our story has inspired them
22:29to work on something together.
22:30That's been one of our favorite parts about this whole journey.
22:33You know, with all the resources we have to learn things on the internet, any kid can figure out any
22:38business anytime.
22:39So go out and try it.
22:40Create that product, start your own company, and you can be like Gavin.
22:43My advice for any little kid like me who wants to start a business is just go for it.
22:48If there's little problems you see, solve them.
22:51If you find something you love, there's a way to make a business out of it.
22:54Thank you, Shark Tank! Thank you, MLB! This is amazing!
23:10Next up is a modern version of an ancient beauty technique.
23:23Hi, Sharks! My name is Aaliyah Merandise, and I live in Austin, Texas.
23:27Let's be real. Hair removal sucks!
23:31It's a tedious task that we have to do over and over again.
23:35As a hairy brown girl with very sensitive skin, I've left so many waxing salons with less hair, but my
23:42skin?
23:43My skin was collateral damage.
23:45Well, Sharks, hair removal has never been sweeter. Literally.
23:49Say hello to sugar dough.
23:51At home sugaring kits to remove any hair.
23:54We like to say we got your back. And your front, arms, legs, and anywhere else.
24:01Made with just sugar, water, and citrus, our all-natural sugar-based dough gently pulls hair from the root while
24:09exfoliating your skin.
24:11Oh, whoa. Oh, people really do that?
24:12Leaving you feeling silky smooth. And it's a gentle, compostable alternative to waxing.
24:17So, Sharks, I'm the sugar mama to sugar dough, so I'm asking for some serious dough.
24:24I'm seeking $500,000 for 5% of the company.
24:28Oh, man. Come on.
24:30But first, Kendra, my friend Rishad here is in need of some sugaring himself.
24:34Do you want to come up and be his sugar mama and sugar with me?
24:37Do I get to, like, remove? Yes, you do.
24:39Oh, yes. Oh, my gosh. This is so exciting.
24:43Kevin's back. Make her do Kevin's back.
24:46Yes, I know. Are you serious? I'm worried.
24:48This is my dream come true.
24:50So, sugar dough is made with this taffy-like goop, and it is very fun to play with.
24:55It's kind of similar to caramel or taffy made with similar ingredients as well.
25:00Okay, what do I do? So, you can actually try on this side.
25:03Okay, so, all right, tell me if I'm doing this right, okay? I'm going to...
25:06Okay. Mold it into your skin. I'm going to help.
25:08I'm going to let it heat up a minute.
25:09Yes, exactly. And I'm going to help it.
25:11It's molding. And then you want to pull taut with the other hand.
25:13So, pull the skin taut. And then, three, two, one.
25:17Oh! Oh, my goodness!
25:19Oh!
25:20That was so amazing.
25:21That was so great. You did a really good job, Kendra.
25:25That's so satisfying. Oh, my God, that was awesome.
25:28I'm going to dismiss Rishad. Thank you so much.
25:30Rishad, thank you so much.
25:31Thank you.
25:31Thank you, Bert.
25:33I'm trying to wrap my head around the 500,000, 5%, 10 million valuation.
25:38Yes.
25:38This innovation is ancient.
25:41It is, yeah.
25:41It was founded Phoenician times.
25:43Women have been using it forever.
25:44Yes.
25:45All through the Mediterranean.
25:46Yes.
25:46And I mean, there's zero proprietary elements to it.
25:50Anybody can do this.
25:51So, help me, help me, help me get to $10 million.
25:55We've actually worked two years to create a proprietary manufacturing process
25:59and also our own formulation.
26:01So, that's where we have some of our own IP to be able to share this through the world.
26:04You do.
26:04Your process is the IP.
26:07Yes.
26:07Yes, exactly.
26:07So, now would be a good time to tell us a little about sales.
26:11Sales.
26:11Sales.
26:12Sales.
26:13I would love to tell you about our sales.
26:15I launched in September 2020 as a solo entrepreneur.
26:18And at that point, at the end of the year, I made $50,000 in revenue.
26:21Got it.
26:22Fast forward to 2021, we went viral on TikTok and we made $2.6 million in sales.
26:28Whoa!
26:29Whoa!
26:29From $50,000 to $2.6?
26:31Yes.
26:31$50,000 to $2.6.
26:33Then?
26:33Yes.
26:33That's what I'm talking about, girl.
26:34And then last year, we ended the year in $5.6 million in sales.
26:38All right.
26:38Wow.
26:39Wow.
26:39So, we first started in D2C and then we grew to Amazon.
26:43And then at the end of 2022, we made it in 300 Ulta Beauty stores.
26:48Okay.
26:49Last year, we expanded full nationwide and into 1,300 stores.
26:53Oh, that'll do it.
26:54And so, that's where we had that big bump in sales.
26:56Did you make money on the 5.6?
26:58No, we didn't make money.
27:01How is that possible?
27:02We didn't make money.
27:03So, in order to make profits in retail, we learned the hard way that you really need 85%,
27:0990% margins.
27:10Our margins were around 60%.
27:12However, this year, we updated our suppliers and we implemented our manufacturing process.
27:18And so, our margins are now hovering around 80%.
27:21Did you lose money or?
27:23Yes.
27:23Okay.
27:23We lost money last year.
27:24How much did you lose?
27:25We ended the year at negative 7%.
27:27So, you lost $447,000?
27:29Yeah.
27:30How'd you fund all those losses?
27:31Me and my husband invested $400,000 of our personal money.
27:34Oh, okay.
27:35You lost 400.
27:36So, then that goes into our debt that we have right now.
27:38How much debt do you have?
27:39We have $1.5 million in debt.
27:41Hello.
27:42There we go.
27:42Yeah.
27:43We also have $1 million in inventory.
27:46But it also means that you have, like, no cash right now.
27:48We have no cash right now.
27:49That's why I'm here.
27:50In the Shark Tank.
27:52Yeah.
27:52That is what you need.
27:53That is what I need right now.
27:54Yeah.
27:54Especially if we want to get into more retailers.
27:57You can't afford to go into more retailers.
27:58We have debt financing, which is at a high interest rate of 22%.
28:02Wow.
28:03Hello.
28:04That's where it is.
28:05So, your total debt is $1.5.
28:07Yeah.
28:08That's what's killing us right now is because 20% of the money that we borrow is just out
28:13the door.
28:14We had all this money tied up in inventory, and now we're right sizing.
28:19So, so much has changed in the last few months.
28:21Going through hyper growth like you did is hard.
28:24Yes.
28:24Borrowing money to get there puts you even further underwater because you're always,
28:29it feels like you can never catch up and get even, right?
28:32Yeah.
28:32I wish I had a way where I could just say, here you go.
28:35This is the approach.
28:37But, you know, I thought when I walked in and saw it, I thought this was food and I got
28:42hungry.
28:42I just don't know this stuff at all.
28:44So, for those reasons, I'm out, but I wish you the best.
28:47Okay.
28:47Thank you, Mark.
28:48I appreciate it.
28:50You're welcome.
28:50I think about the valuation.
28:52I would never value this to 10 million right now.
28:55You've got sales.
28:56I like that, but you got a long way to go.
28:58It's, you know, if you'd come in here for like 100, 150, even 200, maybe I take the ride,
29:04change the valuation a bit, but this is nuts.
29:06I think it's nuts.
29:07So, for that reason, I'm out.
29:09Thank you, Kevin.
29:10Yeah.
29:11So, it's hard because you couldn't predict that you were going to go this high, and then
29:15as soon as you got that level, well, you had to learn what you didn't know, right?
29:19The amount of margin on these things, and then you got to borrow money against it.
29:23You can't leave Ulta empty-handed when they're asking for goods.
29:27Yeah.
29:27But, you know, to give you $500,000 for 5%, you would have to distribute $10 million if
29:35you're doing really well.
29:38That's to get your money back.
29:39If you, just to get my money back, that means you probably would have to do $50 million
29:45for me to just-
29:45You'd be older than the Phoenicians that invented this by the time you got your money
29:48back.
29:49I'm out.
29:51Thank you so much.
29:52Aaliyah, you're amazing, by the way.
29:55And I, you know, as you were talking, I've been there.
29:57Like, I made some of these same mistakes.
29:59I did my business on a line of credit.
30:01Yeah.
30:02I was bootstrapping everything.
30:03I had credit card debt.
30:04Yeah.
30:05I mean, it was hard to get anybody to invest in me.
30:07You know, I know what that feels like.
30:10But what you're accomplishing is really, really exciting.
30:13Thank you.
30:13And you went from 2.8 to 5.6.
30:15Yes.
30:15I love what you're doing.
30:17This is just not my business.
30:18Yeah.
30:19And I'm a little worried about the amount of debt that you have, honestly.
30:22Before you say no, I'm willing to make a deal.
30:25And that's why I'm here.
30:26I have worked my butt off for the last four years and grown super fast to be able to get
30:33to the point where I'm at now.
30:34And I really would like partnership.
30:36And you are sharks.
30:37You guys love problems.
30:38This is a great problem to solve.
30:41I'm not sure we love problems.
30:43I'm solving problems.
30:45Y'all are problem solvers.
30:46You wouldn't be here.
30:47The 500, that's just a big ask.
30:50And it's not even going to really put even a little bit of damp on what you've already got to
30:54deal with, right?
30:55It's not going to really solve a lot of problems.
30:57But I really do admire you.
30:59I'm out.
31:00Okay.
31:00Thank you.
31:01I appreciate it.
31:08Good luck, Alia.
31:13Thank you.
31:14Thank you.
31:19Good luck, Alia.
31:19I am disappointed that I'm walking out without a deal.
31:21I really think that with the sales that we had, that they could see the potential.
31:25But I love surprising people.
31:26I love proving people wrong.
31:28Então, eu espero que em dois anos, eles veem sugared-o
31:30em tonos de diferentes restaurantes e eles vão, ah!
31:45Neste up, é uma empresa que tornou um ingrediente
31:48em um não-so-guilty pleasure.
31:57E aí, Sharks, meu nome é Kimmy e eu sou de Oceanside, California.
32:02Eu sou o Intuitive Baker extraordinário
32:04de Dope Nut.
32:06Eu sou de 100,000 para 10% de equipe em minha empresa.
32:11Sharks, todos os anos americanos
32:13struggle com salt, fat, e a sugar addiction.
32:16Mas com a sugar-free,
32:17gluten-free, and our dairy-free diet
32:20can often feel like you're eating
32:22dry cardboard with high calories
32:24and an unappealing aftertaste.
32:26That's why I took on the challenge to create
32:29a healthy version from a guilty pleasure.
32:31Say hello to Dope Nut.
32:35This might look like it's full of sugar
32:37or ingredients that we can't pronounce,
32:39but what if I told you that this contains
32:42no dairy, no gluten, less than one gram of sugar
32:46found naturally in sweet potatoes
32:49and you can count the ingredients with one hand.
32:52Let me sweeten the deal for you.
32:54It's only 90 calories.
32:57The magic behind Dope Nut
32:59is in organic groats,
33:01which are oats in its original purest form.
33:04Once the farmers harvest the oats,
33:06they are tested for gluten,
33:07packed and shipped to my little pink store
33:11where I mill it into fresh oat flour.
33:13It's a farm-to-finger experience.
33:17Shark, who's ready to partner with me
33:19and bite into the best decision of your life?
33:23Me, me, me, me, me, me, me, me.
33:24Little pink store.
33:25Is it really pink?
33:26It is.
33:27So each of you has a sample of my Dope Nuts in front of you,
33:31representing my most popular flavors.
33:34Churro, which is the same sugar.
33:35That's what I just ate.
33:36I think it's very good.
33:37And it is sugar-free, by the way.
33:39It's very good.
33:39The frosting is all sugar-free, dairy-free.
33:41It smells so good, it can't be.
33:41And what do you use?
33:43Do you use any sugar alcohols?
33:44It's very moist.
33:44Are you using allulose or stevia?
33:46I only use monk fruit as the sweetener.
33:48Monk fruit.
33:49This is great.
33:50That churro one?
33:50Very good.
33:51This is just 90?
33:52That's right.
33:53And it has two grams of fiber in it.
33:55Two grams of fiber.
33:56So, ingredient-wise, it's your oats, your special groats.
34:01Mm-hmm.
34:01Oats, sweet potatoes, egg whites.
34:03Egg whites, monk fruit.
34:04Mm-hmm.
34:05What's number five?
34:06Baking powder.
34:07Baking powder.
34:09I've never heard of the term groats.
34:11Mark, you like it, don't you?
34:12So, like, did you come up with that term?
34:13Or is that a term that's used in...
34:15Yeah, that's a term.
34:17So, when the farmers harvest the oats, when they pull it off the husk,
34:22that's a groat.
34:23So, it has not been touched at all.
34:25So, you're grinding the whole seed.
34:28And that's how you get your fiber?
34:28I am.
34:29The benefit of milling it yourself is, one, you're retaining the natural oils that are
34:33found in whole grains, versus it's sitting on a shelf.
34:36And then it also has almost like a brown butter almost taste to it.
34:41Mm-hmm.
34:42And I mill it fresh every morning.
34:44Well, Kimmy, I will say something.
34:45We get a lot of products like this here in Shark Tank, because people are concerned about
34:48sugar, salt, all of that.
34:49But these actually don't taste like .
34:52I'm amazed.
34:52No, they taste really good.
34:54How are you distributing them?
34:56Yeah, so, I have a little pink store.
34:58I actually...
34:59Of course you have a pink store.
35:01Look at how cute that is.
35:02Super cute.
35:03That's the little pink store?
35:04So cute.
35:04It's really cute.
35:05That's the little pink store.
35:06Yes.
35:07So, I sell it at my little pink store, and I actually just turned two years old.
35:12So, how much does it cost you to make these donuts, and what do you sell them for?
35:15Yeah.
35:15It cost me between 70 cents and 80 cents to make it.
35:19Okay.
35:19And we retail it at the store for $3.50.
35:23Too cheap.
35:23Question.
35:24You know, for a solution like this, I think $4.99 works.
35:27I could eat half one of these for a dessert that's 45 calories.
35:30Right.
35:31Without any spiking, that's fantastic.
35:33The question is, how to scale this business?
35:35How many can you make if this thing blows up online?
35:38So, right now, I do all the baking.
35:40I do all the marketing.
35:41I do all the selling.
35:42I do everything on the one-man band.
35:44How are you going to scale it?
35:46But that's why I'm here, Mr. Wonderful, so that I can scale it, hopefully.
35:51Do you ship them frozen?
35:53So, I don't.
35:54I ship them fresh, and then I put a little note card to refrigerator freeze right away.
35:58And are you shipping to other bakeries or other businesses?
36:01So, when I first started, I went from gym to gym, selling my dot nuts.
36:07And as a matter of fact, this is a full circle moment for me.
36:10Because my very first pop-up event, I set up my table next to this most beautiful table
36:17that had some gorgeous jewelry on it.
36:19And I walked over to introduce myself to the gal, and she said,
36:23this is Kendra Scott jewelry.
36:25I love it.
36:26And she went on to tell the story about how you started in your spare bedroom with $500,
36:33and that you went from boutique to boutique.
36:35And at that moment, I dared to dream.
36:39Aw.
36:39I dared to dream that it was possible to have big dreams.
36:44Now here I am, and I just feel like things happen for a reason.
36:48They absolutely do.
36:50I mean, what an amazing story.
36:51And you should dream big.
36:54You were destined to be next to our little table that day.
36:56I love that.
36:58Aw, well, amazing story.
36:58But you're a single operator, Kimmy.
37:00I am.
37:00You're coming in here for $100,000, and investors want to see returns.
37:04Yes.
37:05You're not worth a million bucks yet.
37:06The product, listen, the product, you know.
37:08We don't even know our numbers yet.
37:09Well, we don't know.
37:10Well, Mr. Wonderful, let me tell you.
37:12My total sales have been $350,000.
37:15Since the beginning of time?
37:16From 2021 to now.
37:17What about this year?
37:18So you're going to sell this year?
37:19Lifetime.
37:19Yeah, for sales this year are $50,000.
37:23OK, that's not a lot of sales, Kimmy.
37:39All sharks are still in.
37:41They're impressed with the taste of Kimmy's healthier doughnuts,
37:43doughnuts, but they're not impressed with her low sales.
37:47OK, that's not a lot of sales, Kimmy, to be honest with you.
37:50From my point of view, the product's spectacular.
37:52I will become a customer, but you're not worth a million bucks right now.
37:57I don't see doing this deal because there's no plan for me to get a return.
38:01But I'll be a customer.
38:03Oh, Mr. Wonderful, but we could do wonderful things together.
38:06I know, but I don't need a job as a chef.
38:08I'm already a chef.
38:09I'm the chef, Mr. Wonderful.
38:10I just need your money.
38:12No, listen, it's a great product without a business plan.
38:15That's what it is.
38:16You just have a great product.
38:18That's a great place to start because this is actually a good product.
38:22And I never say that unless it's true.
38:24It's a very good product.
38:25I'm sorry, but I'm out.
38:28Kimmy, I like it, but this is not my type of business.
38:32I think there's some more qualified sharks up here with better experience in that area.
38:36So I wish you luck.
38:38I'm out.
38:39Thank you, Damon.
38:40Do you see like part of your plan is to open more little pink stores?
38:44Yeah, soon.
38:45Like, is that part of the dream?
38:46Oh, absolutely.
38:48Well, listen, Kimmy, I had one store in Austin, Texas, and I could have never dreamt that today I would
38:54have 138.
38:56So I love your dare to dream because it is possible.
38:59It is possible.
39:00With a great product and dedication to it, you're doing all those things.
39:04I'm sitting here and I'm struggling.
39:07One, I love you.
39:08And I look at you and I see so much similarity going into a market that is, you know, a
39:13very big market.
39:14You have that tenacity.
39:16You have that passion.
39:17I can see it.
39:18I can feel it from sitting here with you.
39:20And the product is really, really good.
39:23I'm just, this is not something that I'm as familiar with.
39:26I don't sell into grocery stores, right?
39:28I don't think that I'm the right investor to help you expand the way you need to expand.
39:31And for that reason, I'm out.
39:34Kimmy, do you have any debt or any, like, other crazy stuff we should know about?
39:38I have $70,000 in debt.
39:39Okay, $70,000.
39:40Anything else?
39:41No, no.
39:42I actually have invested every last penny.
39:46I mortgaged my house and the rest, I just...
39:49So you're still living in the same house.
39:51Before Mark says more to you, I just want to say something, okay?
39:55This is completely my cup of tea.
39:58Like, I am your customer.
40:01I haven't eaten a donut from a normal store in 20 years.
40:06Like, I don't eat donuts.
40:07No offense, donut community, but I just don't eat.
40:10Right.
40:10I don't eat donuts.
40:11This is not a donut.
40:12And this is not a donut.
40:14This is delicious.
40:16I love that it's all healthy ingredients.
40:19Like, check, check, check, check, check.
40:20To the moon, all the boxes that I love.
40:23And Mark loves those boxes, too.
40:25So we are both your perfect customer and partner.
40:28I'll blow these up for sure.
40:30Yes, like, we would love to make you an offer.
40:33And to blow this up in a variety of ways.
40:37The offer is?
40:38So the offer is, boom.
40:40$150,000 for 30%.
40:45So we each get $15,000.
40:47We give you a little bit more cash, and we'll be your biggest advocates and your biggest
40:51salespeople, and we will make this big.
40:53Like, this needs to be everywhere.
40:57Thank you so much.
40:59I really appreciate that.
41:00Would you be willing to do it for 20%?
41:06I mean, it's going to take a lot of work.
41:07Right.
41:08I've been willing to go to $200,000 to help you pay off your debt so we get the 30%.
41:14$200,000 for 30%.
41:15Yes, yes, yes!
41:17I love it!
41:18I'm so happy for you!
41:20Let's go, Kimmy!
41:21Let's go!
41:22How are you?
41:24How are you?
41:25Oh, so good.
41:25Oh, my gosh.
41:27Thank you so much.
41:28I love it.
41:29It's a great product.
41:30Great product, fam.
41:33Mr. Wonderful, I expect an order from you.
41:36You'll get one.
41:37Very exciting.
41:38Thank you so much.
41:39Wow.
41:40So good.
41:41Love it.
41:42The success of my business means everything to me, but it's had a slow growth.
41:47It's just me doing everything, but now with the sharks, we are going to conquer the world
41:54because they believe in this product just as much as I do, and I just love them, and I'm so
42:00happy!
42:02Just at night, after dinner, have two of these, 180 calories?
42:04No, but I like it the breakfast.
42:06Yes, nothing.
42:06Not 180 calories for two donuts.
42:08For two donuts?
42:09That's insane.
42:10Come on.
42:10It's insane.
42:11You know, this could be our biggest deal ever.
42:12I hope so.
42:13Wow, really?
42:14Wow!
42:45heating up.
42:46Thanks.
42:46My family is so happy to be here and I love you all.
42:47Yeah, pumping DISCALES.
42:47And finally, let's go.
42:48We'll be my last few of our first wins in a declarative practice
42:48Now that we're living on a great deal, they'll import how nicely.
42:48We're having fun and unhappy guests as well.
42:48And I was really excited to be happy that we're coming hard
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