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00:00Tonight on Shark Tank
00:01The earth needs an alternative
00:03The way we are dying is killing us
00:06So I invented a sports bra for your man parts
00:11Sharks, who's ready to join the team?
00:13What are your sales?
00:14We are a money losing company
00:16Oh!
00:17Why are you worth that?
00:18Because you have done nothing
00:19You blew it
00:20Evaluation makes no sense
00:22I am a one man show
00:24This is our baby
00:25But you hurt my feelings
00:26This is your moment
00:27You're on the Shark Tank carpet
00:28You need to decide if you want to swim with a shark
00:31Or be eaten by one
00:41First in the Tank is an innovative product
00:43For emergency situations
00:52Hi Sharks, my name is Maurice
00:54And this is my son Miles
00:55We're from Chico, California
00:57Today we are seeking 200,000 smackers
01:01For 10% of our business storm bag
01:04Sharks, when a flood is on the way
01:06The last thing that you want to be doing
01:08Is shoveling sand
01:09Traditional sandbags require back-breaking labor
01:12Not to mention thousands of pounds of sand
01:15But what if we were to tell you
01:17That there is a much easier way
01:19To keep the water at bay
01:20That in a matter of only a few minutes
01:22You and you alone
01:24Can build a wall like this
01:26With no shoveling
01:27And no sand required
01:30Introducing our invention
01:31The storm bag
01:33It's a sandbag
01:34That needs no sand
01:36Almost takes no labor to deploy
01:38All you simply do is add water
01:43Pretty cool
01:44You can see the time-lapse right there
01:47How easy it is to deal with the bag
01:50When the storm bag is dry
01:52It only weighs one pound
01:54But in three to five minutes
01:55It weighs a whopping 30 pounds
01:58What?
01:59The best thing about the storm bag
02:00Is that it can be used by anyone
02:03Regardless of their physical ability
02:05And with your help
02:06We can bring storm bag to the next level
02:08Allowing more people to protect their homes and businesses
02:12Sharks, who's ready to join the team
02:13And revolutionize the way we all weather the storm
02:17Wow
02:17That's pretty cool
02:18That's really cool
02:19So this is it in front of us
02:20Yes, you have a sample right there
02:21What you have in the jar
02:24Represents 50 pounds of sand
02:26So Damon, what you've got in the jar right there
02:28Is exactly what's inside each of those bags
02:31What material is it?
02:32It is an absorbent polymer
02:34And it absorbs 300 times its weight per granular in there
02:38Once I trigger it to make it 35 pounds
02:41Is there any way to get it back?
02:44Yes
02:44If you have it out in the sun
02:45And there's no water around it
02:47It will dehydrate again flat to the way it is now
02:50These are reusable as many times as you need to, right?
02:52Three times
02:53Okay
02:54So the million dollar question
02:56Were you in this field before?
02:58Did you have anything to do with this before?
03:00No, I have a business
03:01I import military clothing and vintage clothing
03:05I deal with emergency equipment, gas cans and fuel
03:08So intuitive then to want to do something that helps in emergencies
03:12Yeah
03:12And what about you?
03:13Well, I studied graphic design in school
03:16My first love is in typography
03:20But once I got into the business with Maurice
03:22I said, you know, you've really
03:23Wait, wait, wait, wait, wait, wait, wait, wait
03:24That's your father, isn't it?
03:25Maurice is your dad and you're calling him Maurice?
03:27My dad
03:27Hey, hey, hey, hey
03:29Yeah, so I joined the family business
03:31And he hadn't done any marketing whatsoever for these bags
03:35They've just been selling to the same regular customers
03:37But I thought, gosh, we really should try to push these things
03:40And so we did
03:41We took it to a trade show
03:42We filmed a video
03:43Which ended up going viral on TikTok
03:46And there were 7 million views across TikTok and Facebook combined
03:49Maurice and Miles
03:50Have you ever worked together before?
03:52Is this the first time that you're working together?
03:54So, like I said, I was into graphic design
03:57And then we sort of faced a disaster of our own
04:01We're from a town called Paradise, California
04:03I'm not sure if any of you remember
04:05But that town completely burned down
04:07I lost my home, he lost his home
04:10The business burnt down
04:11Oh my God
04:12That was your home?
04:12All of our employees lost their homes
04:14That's our home
04:14So sorry
04:15Oh my God
04:16And it was just time to rebuild the business
04:18And I thought my warehouse
04:20Wow
04:21It was a brutal experience
04:23And we just got out of town
04:25So scary
04:26Just in time
04:27Wow
04:27Unfortunately, 84 people did not make it out of the town
04:30Oh
04:30And so when it came to rebuilding
04:33It seemed to me like a really hard task by myself
04:40So here we are, working together
04:42And so he helped you
04:43He jumped in, gave up his career
04:45What a son
04:46What a son
04:49Okay
04:51200,000, 10%, 2 million valuation
04:54You making any money?
04:55So, dude
04:56Have a heart
04:57The guy's telling you the story of his life
04:59And you're jumping
05:01Well, he made you laugh
05:03Thank you for taking it away
05:04That's an important
05:05Appreciate it
05:06That's an important question, obviously
05:07And?
05:07What are you gonna make this year?
05:09Well, our fiscal year just closed and we did $90,000
05:12But we have so far done absolutely zero marketing
05:15Zero
05:16So I believe that there's a huge untapped potential to make millions
05:19Because with some investment, we can make some really wonderful videos
05:24Really, truly demonstrating this product and get some good marketing out there
05:28So, how much does one bag cost?
05:30Do you sell like sets of 20 or how does it work?
05:33Yeah, so we sell the bags for $5.50 each
05:36That's sort of the lowest price point
05:38$5.50 each?
05:39That's right
05:39And how does that compare to a sandbag if you bought a sandbag?
05:42Sandbags are free
05:43Yeah
05:44Oh they are?
05:44I mean, yeah
05:45But you have to schlep them around
05:47Slip and shove them
05:48How much does it cost you to make this?
05:50And store them?
05:51And with a little bit of better equipment, we can get that down to $1.75
05:56Okay, guys
05:57I'm looking at the deal saying to myself, the competition is free
06:00That's what the sandbag is
06:02And I get that it's sand
06:03Just schlep it and store it
06:04But I'm going to guess because you're only selling $90,000 a year
06:07That 99.9% of the market in floods is using traditional sandbags
06:13So there's a lot of education to be done here
06:15Education
06:15And you're always going to be fighting free
06:17Which is a tough place
06:19So for demonstration purposes, it's pretty fun to talk about floods
06:24But really the main use for these bags is in the home
06:30Let's say a pipe breaks
06:31Suddenly there's water coming out behind your washing machine
06:34You can just lay down and it sucks up five gallons of water
06:37And the other great thing that my wife uses it for on our farm
06:41She puts them around plants when we go on vacation where we can't water
06:44Oh
06:45You let it just release the water
06:46Oh, and it releases the water?
06:48So wait a minute
06:48How long would it take for that to lose all water?
06:52It depends on the weather
06:53Where we live, it's about 110 degrees in the summer
06:55So every two to three weeks is when we have to go up and rehydrate them
06:59So it lasts two to three weeks?
07:00Yes
07:01Alright guys, look
07:02This is something that you have a lot of passion for, I get it
07:05But I really hate competing against free
07:07So for that reason, I'm out
07:09Alright
07:10So if I may just respond to that quickly, Kevin
07:13Well, I don't think you can
07:14Free is free
07:28One shark is out
07:29Miles and Maurice have four chances left to get a deal for their sandbag alternative, Stormbag
07:36So going back to, you talked about that it can water your plants
07:41So I'm just curious
07:42Yeah
07:43What if you made a little baby bag?
07:44Could somebody then use it inside their house in their plants if they wanted to go away and travel?
07:50Sure
07:50Would it water their plants slowly while they're gone?
07:53Yeah
07:53Absolutely
07:54That's a pretty good idea
07:54Kind of genius, honestly
07:57I think so, yeah
07:57Thank you for that
07:58Maurice and Miles
08:00Damon and I would be interested
08:02We would consider working with you, but it would need to be 40%
08:06Because what percent?
08:0740
08:09So yeah, Daniel and I will come in together
08:11We will offer you $200,000 for 40%
08:15And you will get two sharks
08:17I have a lot of friends that do a lot of contracts with the military
08:20So I try to add value there
08:22But what you'll have also is what you want, right?
08:24You'll have people who are bringing public awareness on television and various other things, right?
08:29Exactly
08:30So there you have it
08:31You have an offer right now, 40%
08:35$200,000, two sharks
08:37So gentlemen, gentlemen, gentlemen
08:38It has been 15 years making dreams come true for entrepreneurs just like you
08:44So Mark and I were just talking and we'd like to make some dreams come true for the two of
08:49you
08:49So we have an offer as well
08:51So we're going to offer the $200,000 but for 30%
08:58And here's where we're coming from, guys
09:00I think this is great for NGOs and the military and all that kind of stuff
09:04But you need to repackage it for different applications
09:07So when people see it, there's more of an explanation that makes it easier to buy
09:11You know, we think selling it through, you know, hardware stores and wholesale, right, I think is going to be
09:17huge
09:17I personally think $5.50 is way too cheap for 90% of the applications
09:21You know, you can charge $19.95 for commercial applications and $9.95 for your home plan applications and make
09:29a lot more money
09:30Miles and Maurice, when it comes to design and excellence, not only did I design one of the most iconic
09:36brands named Kind
09:36But look at Damon
09:38Is there anybody more handsome and better dressed than this guy?
09:40He can help you with the design
09:42He's got a point with the handsome
09:43And in terms of distribution, whether it's Home Depot or Lowe's or anybody else
09:49I have all those connections also, so I can deliver for you
09:52So what do you guys, what would you guys like to do?
09:56Well...
10:01You know, you're kind of wanting to worry
10:03Yeah
10:04So let's go
10:05And also deal
10:06I know
10:07It's difficult
10:14What do you want to do?
10:15Daniel, are we staying at 40 or what do you want to do?
10:20We'll do 30 also
10:21We'll do 30, we'll match
10:22Okay, now they're equal
10:23What do you want to do?
10:25What, you need to...
10:26No, stop, stop
10:26Let them decide, Daniel, come on, Daniel
10:27Stop, stop
10:28Who are you looking for in a partner?
10:29Make a decision, guys
10:29That sandbag's gonna blow up
10:31You've gotta make a decision
10:33Let them talk
10:34Let them talk
10:45Yeah, I'll let you see
10:47Laurie, Mark, you got a deal
10:51You're a smart man, and we're gonna make a lot more money
10:53Thank you, thank you so much
10:55Congratulations
10:55This is amazing
10:55Thank you, Laurie, thank you so much
10:57Great product
10:58You're amazing
10:58Amazing
10:59You're a lot, guys
11:00Thank you
11:01Look at that
11:02That's great, huh?
11:03Yeah, that's awesome
11:04Couldn't have gotten better
11:05We want Laurie and Mark because Laurie 100% understood the home use that we're going after right now
11:11The home use is where the moolah is
11:13That's, you know, it's like toilet paper
11:14Everybody should have a storm bag box at home
11:16You know where I got mad at on that deal, Laurie?
11:19Yeah
11:19That little cute idea you had
11:21The little baby bag
11:22I hated that you came out with that idea
11:23I know
11:24You got me on that one
11:25And even a little mini bag you're gonna sell for $5.95 or $9.95 or $9.95
11:26Yeah, no one's listening to you anymore
11:28She didn't even need you in that deal
11:33In season six, we watched David Heath and Randy Goldberg make a deal with Dame and John for their sock
11:38company with a mission, Bombas
11:40We learned that socks are the number one most requested clothing item at homeless shelters
11:45So for every pair of socks we sell, we donate a pair
11:48Let's see what they're up to now
11:49We definitely wanted to be one of the most successful companies on Shark Tank
11:53But I don't think we ever thought it would come true
11:55No chance
11:56Our total sales in our first year of business was $900,000
11:59And in our fifth year of business, we were at $225 million
12:04And today, in our tenth year of business, we have done over $1 billion in sales
12:09And that makes us the first billion-dollar company to get a deal in the tank
12:13We now have 186 employees
12:16We manufacture in 15 different facilities across 8 different countries
12:19We founded Bombas with a mission to help those in need
12:22One item purchased equals one item donated
12:25And while achieving over $1 billion is an important milestone
12:28An even more important milestone for us is donating over 100 million items to those in need
12:34Why do people love Bombas so much?
12:36Amazing product, amazing story
12:39Over $1 billion, it shows that people want to give
12:43Every time I bought this, I cleaned up the ocean
12:45Every time I bought this to stop human trafficking
12:47Every time I bought one of these garments, somebody in need got a pair
12:50That's the double bottom line
12:52$1 billion is the grade
12:54They got an A on their report card
12:56And everybody else should copy them
12:58And that's what Bombas wants people to do
13:00I'm so proud to be part of everything you're doing
13:03I always say that every single thing in this world started with one person
13:07That had one idea that took one action
13:09And Dave and Randy and the entire Bombas community shows it
13:12How you doing man?
13:13Hey man, what's happening? How you doing?
13:15You know if you buy one pair of socks, you've helped one other person
13:19If everybody did one thing, an act of kindness like that in this world
13:24Think about where we would be
13:25Pretty amazing
13:26The impact that we're having is beyond our wildest dreams
13:29And it's just motivating us to continue to do something really good for the world
13:33Nice to meet you
13:34This company was built around a single idea
13:37That a company can exist to serve its community
13:40And that's what we're going to continue to do
13:41As we build Bombas for the next generation
13:57Next up is an earth friendly option for one of life's big milestones
14:09Hi, I'm Micah from Seattle, Washington
14:12And I am the CEO and founder of Return Home
14:15And I'm Katie, Return Home's licensed funeral director
14:18Sharks, families of the 3.4 million Americans that die each year
14:23Must choose between two really unsustainable options
14:26Cremation and burial
14:28Cremation is just plain terrible for the earth
14:33Each year in the United States
14:34The cremation industry burns enough fuel to send a person
14:38From the earth to the moon and back 1,300 times
14:42And caskets are so wasteful
14:45That we could build a Golden Gate Bridge each year from the steel we bury
14:48As a licensed funeral director
14:50I know the methods we use are toxic to both our planet and to our workers
14:54The way we are dying is killing us
14:57The earth needs an alternative now
15:01And that is what we at Return Home have created
15:05Our process, which we call Terramation
15:07Gently transforms human remains into soil in just 60 to 90 days
15:13Rather than pollute the earth, air and water when we die
15:17Terramation ensures our last act on this planet is to give back to it
15:22And when the process is complete, our families are left with beautiful, life-giving soil
15:27That can be returned back to the earth, restarting the cycle of life
15:31The Terramation remains are returned home to the family
15:33Or scattered at our eight-acre woodland
15:35Restarting nature's cycle and paying the gift of life forward
15:39Sharks, the time is now
15:41For two million dollars and five percent
15:45We would love for you to join us to help revolutionize global death care
15:49And help millions return home
15:52Tell us about the company
15:53Katie, why don't we try process first and we go from there
15:56So people are placed in a vessel that looks just like this
16:00You go into that vessel with straw, alfalfa and sawdust
16:03And it's just the amazing microbes in our body that transform us into soil
16:07So this vessel sits in our front of house, which is pictured here
16:1030 to 40 days while it transforms into soil
16:13And then the compost has to rest for a further 30 days before it's ready to return home
16:17Let's say you have 40 bodies, right?
16:20Where do you put all those?
16:21Like those vessels take up a lot of room, don't they?
16:24We have 74 vessels total, which means we can take 74 people per month
16:28And we have a 12,000-foot warehouse
16:31That's where all of our vessels are
16:32They're open doors that open so families can come and visit their vessel
16:36Can I just start with an overview of industry?
16:39Sure
16:39So 3.4 million people die in the United States every year
16:44Cremation is skyrocketing, believe it's about 57% now
16:47Let's round up, about 2 million people are getting cremated
16:51Pricing, $7,000 for a cremation with matching funeral
16:57With burial, burial and funeral $8,000 does not include plot
17:03Our price, including our service at our facility, $5,500
17:08Is there any competition?
17:10Yes, there are
17:10There are three companies currently in Washington State
17:14We are one, there are two others
17:15Ours is utterly unique in that our technology developed
17:19Allows our families to take part and be next to the process throughout
17:23What we allow is an experience that no one has seen
17:27How did you get to doing this?
17:29I think Katie should go first
17:31Katie go first
17:32I was born and raised in England
17:33I moved to the United States at 18
17:36I started being a funeral director in England at age 16
17:39I went to my grandfather's funeral
17:41And while it was average, it was not something that represented him well
17:44And I decided I could probably do a better job
17:46And I have
17:48I have something in me that allows me to take care of a 2 year old
17:52For that mother after she passes away
17:54Or take care of that husband who never got to come home
17:57Funeral directing has completely changed my life
17:59And it is something I hopefully will do for a long time
18:02So you have a lot of empathy
18:04Yes
18:05And you?
18:06After college went to China
18:09There I both worked at one point
18:11I was running the knot
18:12You were running the knot?
18:14China, China
18:14So yeah, 20 years of my life in China
18:17Moved back to the States and was trying to figure out the thing I needed to do
18:21So you went from the wedding business to the human composting business
18:26I wanted to build a company
18:28No kidding that the bigger it got the better off the world was for it
18:32And it was for that reason that I made that pivot
18:34Put the teams together, built the science, technology
18:36And here we stand in front of you
18:38I like it, but this is your moment
18:40You're on the shark tank carpet
18:425% of a business and I have to give you 2 million to get it
18:45Yes
18:46It's a 40 million valuation
18:48It's not proprietary
18:49I could do it if I had some sawdust in the box
18:52Yes
18:52I got it
18:52But I need to understand why you're worth 40 million dollars
18:57Sure
18:57What are your sales?
18:58We did $350,000 last year
19:02We have already matched $350,000 I think at the end of May
19:07And continuing to grow
19:09How much did you make off the 350?
19:11We are a money losing company
19:12Oh good
19:13Oh my goodness
19:14That's great
19:14So how much money have you raised and at what valuation?
19:18Uh, we raised at a total of almost $5 million
19:22Woo
19:22What was the last valuation you raised at?
19:25$20.6 million
19:27When was that?
19:28About a year ago
19:29Okay, why did you double the valuation from the last raise?
19:33Yeah
19:34What's changed that would make you think you could come in here and say
19:37It's not worth $21 million anymore, it's worth $40 million
19:39He's gonna negotiate
19:41A lot
19:43Micah, this is your moment
19:44Go, go, go
19:46Let's go
19:46Sorry
19:472 million bucks
19:48Funeral homes are the worst marketers in the world
19:50This is not about land grab
19:53It's about brand grab
19:54Tell me guys
19:56How many funeral homes do you know that are amazing, that are cross country?
19:59Oh Micah, you blew it
20:00I'm out
20:03I mean honestly, I want to understand why I should give you $2 million for 5%
20:08Why are you worth that?
20:09Sure
20:09Because you have done nothing to show me that your sales are anywhere near that
20:14Sure
20:14I'd like you to walk us through the unit profitability
20:16What are your margins?
20:17$3,800
20:18So it costs about $1,200 to transform a body
20:21We can transform 70 bodies a month
20:23We are break even at 23, right?
20:26But are you saying that the reason you acquire customers is that it's cheaper or is it better?
20:32Because you have to make your decision because I'm looking at it
20:34This is not a money driven decision on the family's part
20:36Well then why not charge the $8,000 that the burials do except there's a better burial strategy?
20:40Well, because actually we want to make sure it's as ubiquitous and reachable as possible
20:45I was hoping that there was more definition of the business model
20:49Sure
20:49Because I like the deal, okay? I like what you're doing
20:51Thank you
20:52But I'm not confident yet that you have found the business model
20:56Look, this is a better way to be put to rest
20:59I totally agree
21:00It's a great innovation in terms of sustainability
21:03That's the message
21:04But you gave up 30% of your margin
21:07Go higher solution
21:07Everybody's willing to pay $1,000
21:08You're giving a discount death
21:10Why?
21:10There's no reason
21:11I'm out
21:12I got it
21:12Daniel
21:13I could actually see myself accepting your valuation
21:19But only if I closed my eyes and kept them shut with crazy glue
21:24Your valuation makes no sense
21:26I'm out
21:29First of all, I have a massive respect about people like you
21:32Who deal with the more challenging aspects in life
21:36And I've lost a lot of people in my life
21:37So I do respect that
21:38But I have to be passionate about everything I invest in
21:42And I am not passionate about this
21:44So I'm out
21:44Yep
21:47So I did parting stone last year, deal with Kevin
21:51It's phenomenal
21:52Take the ashes, turn it into a beautiful stone
21:55It's less expensive than all of this
21:58And...
21:59Absolutely
21:59I feel that the valuation is a real stumbling block
22:03Because I need proof, concrete proof
22:06And I really look at this
22:08And I feel like you need valuation, evaluation
22:11Got it
22:12I'm out
22:13Thank you guys
22:14Thank you guys
22:15Good luck
22:16Good luck guys
22:16We really appreciate you
22:17And thank you for what you do
22:21The Sharks were really tough on valuation
22:23I was high on valuation
22:24It got into a snarl on that side
22:26Wanted very much to talk mission
22:28Why it matters
22:29Why it changes the world so much
22:31But obviously that was a hard one to shake
22:33And the Sharks were not ultimately interested
22:36For our milestone 15th season
22:38We're counting down the top 15 Shark Tank companies
22:40With the highest total retail sales
22:42Number 12 is Corduroys with $195 million
22:46Number 11 is PRX Performance with $200 million
22:50And number 10 is Squatty Potty with $260 million in total retail sales
22:56Check out next week's episode for the next three
23:04Next into the tank is a discreet innovation in men's activewear
23:09Oh my goodness
23:12So
23:18Barbara would you be going nuts
23:20Hey Sharks
23:21I'm Valentine
23:22Founder of Metador Meggings
23:24I'm seeking 250k for 10% equity in my company
23:29Mr. Wonderful
23:30I know you've always been jealous of Lori
23:33And all women for enjoying their lives in leggings
23:37But also been quite concerned about exposing too much of your goodies
23:41So I invented a sports bra for your men parts
23:53Matador Meggings is an innovative activewear brand best known for its men's leggings
23:58Specifically designed for the male anatomy
24:01Featuring a modesty pad that conceals the groin department
24:04And gives you a perfectly rounded superhero crutch
24:09Take it in
24:11Take it in
24:13Take it in
24:13Take it in
24:38Take it in
24:40Take it in
24:51I'm sorry
24:58A zíper pocket for your valuables.
25:03A t-shirt towel loop at the back.
25:05Yeah, babe, that's cool.
25:08And high-performance, sweat-wicking, silky-smooth fabric
25:12that feels like a second step.
25:14Ready to be eaten alive by your questions.
25:18Let's talk about the package zone here, okay?
25:20So it's a soft-molded crotch cup, also known as a modesty pad,
25:24that gives you that round shape.
25:27It's not going to augment the growing department.
25:31So all the products in the market,
25:34we're the only product in the market that offers this crotch solution.
25:39So, Valentine, how did you get here? Tell us about you.
25:42I was born and raised in Turkey,
25:43if you guys couldn't figure out by the accent or the charm.
25:47I'm an immigrant in the United States.
25:49I'm also half Spanish, hence the name Matador
25:52and all the Spanish influence on the brand's aesthetic.
25:55I worked at Facebook for eight years,
25:57building their global organization all around the world.
26:00What got you to this?
26:02Eight years ago, I was training to become a yoga teacher,
26:04and I found myself in a room full of women in leggings.
26:08And I was the only one who didn't wear them,
26:11or better said, couldn't.
26:12So that day, I started looking for men's leggings
26:16that would conceal the growing department,
26:18and I couldn't find.
26:19So I said, you know what? I'm going to make it.
26:21I stole my sister's old bras,
26:23cut the foam out,
26:25and sewed it to a pair of old leggings that I owned,
26:28and voila, that was my first prototype.
26:30Are there really no leggings for men that you know of?
26:33Every single activewear brand sells one form of this product,
26:38but they're designed as an undergarment
26:40to be worn shorts over them.
26:43Are you making any money?
26:45I think you'll be happy to know
26:46that we've sold over $2 million worth of this clothing.
26:51$2 million?
26:52The package is expanding right now.
26:54And what time period?
26:56Exactly, because...
26:57And what time period?
26:58Since we launched a little bit less than three years ago.
27:02Okay, so what about this year?
27:03Last 12 months.
27:04Last year, we did $620,000 in revenue,
27:07and this year, our projection is to hit $1 million in sales.
27:11The year before, we did $800,000 in sales,
27:14and our first year in the business, we did $365,000.
27:19And are you running this alone?
27:21Direct to consumers?
27:21I am a one-man show.
27:23I do everything from design, development,
27:25manufacturing, sourcing, to marketing.
27:27Valentine, how many SKUs do you have?
27:31Currently, we have 50.
27:3450?
27:345-0?
27:35Correct.
27:36Whoa.
27:36Talk to us a little bit about your costs and your profits.
27:40Of course.
27:41It costs $18 to make them,
27:44and we currently retail them for $92.
27:48Boom.
27:48Nice.
27:48Talk to us about why your sales went down in 2022.
27:52The first two years in the business,
27:54my pure focus was customer acquisition.
27:56But this year, we shifted our entire focus to profitability
28:00because I have to start paying myself.
28:03So we dialed down on marketing dollars in order to increase profitability.
28:08Valentine, you said you were going to do a million dollars this year.
28:11We're six months into the year.
28:13How much have you sold so far?
28:14So, so far, we're over 200K,
28:17but keep in mind that we make our biggest sale in the second half of the year.
28:21So you're going to make up two-thirds of it in the back end?
28:23Exactly.
28:24For example...
28:24All direct-to-consumer.
28:25You're not using...
28:26All direct-to-consumer.
28:2895%, 97% is direct-to-consumer.
28:30There's nothing proprietary about taking a pad and sticking it in the package region.
28:35And the big brands that own this space,
28:36that do billions of dollars in leggings,
28:39what stops them from doing it?
28:40I mean, if the market was big enough...
28:42I want them to copy it.
28:43I want big brands to normalize this product
28:46so that they can grow the market size,
28:48which will only benefit from me.
28:50Then how are you going to differentiate yourself?
28:51Yeah.
28:51So our biggest differentiator is our colors and unique prints.
28:55Valentine, if I give you the 250 and you get run over by a truck,
28:59what do I got?
28:59A picture of you.
29:00You got a broken truck.
29:01Because look how fit he is.
29:03That's a problem.
29:03You are not a business yet.
29:04You've built a really interesting hobby.
29:07But I don't like my entrepreneurs getting run over by trucks
29:10and there's nobody backing them up.
29:11So I'm out.
29:14So first of all,
29:15all the guys with the Mavericks wear compression leggings
29:19and almost all of them will just wear shorts over them.
29:21Exactly.
29:22It's a hideous look.
29:23Well, that's...
29:24And restricting as well.
29:25It's not restricting.
29:27I'm a yogi, so I'm like, look at this.
29:29Look, look.
29:30Get out of it.
29:30Get out of it, baby.
29:31Get out of it.
29:32And everything stays in place.
29:34That's right.
29:34Right.
29:34So your competition isn't Nike or whatever coming in.
29:37It's just guys putting on a pair of shorts, you know.
29:39And then the question becomes functionality versus look.
29:43You're going to win the look side every time, and that's great.
29:46But for functionality, you know, you're not talking about the quality of the compression.
29:50And for athletes, that's going to be most important.
29:52It's been a good business for you, but I don't think there's a large business there.
29:56So for those reasons, I'm out.
29:59Okay.
29:59Thank you.
30:00For me, looking at this product, I'm just not sure guys will wear it a lot.
30:06I don't know.
30:07So I'm sorry I'm out.
30:09There are other sharks here.
30:12This is for a super active or good active person.
30:15So that was my starting point, but I couldn't be more wrong.
30:18When I look at our customer base, I see huge diversity based on age, fitness level, body shape.
30:24But to get that scale, that high scale, if you don't know exactly who your customer is,
30:28you're using our money for tuition.
30:30We don't know who it is.
30:32It's mostly $25 to $55.
30:35Okay.
30:35It's not $18 because the product is relatively higher in price.
30:38You know, Valentine, I think your gift is the fact that you're agile.
30:41You know, this is a great business for you, but just not an investable business.
30:46So I'm out.
30:50The reason I'm struggling here is that I actually really do believe that the trend line is for comfortable wear.
30:59Where I think I lost my confidences when you were answering to Damon saying that this was for everyone.
31:07Because to his point, if you try to be everything to everyone, you end up being nothing to no one.
31:13And I do think you need to spend a little bit more time figuring out who's your target consumer.
31:18So for those reasons, I'm out.
31:22Thank you so much.
31:24Bye, guys.
31:24See you guys.
31:25Good luck.
31:29Mattel or Megings will be changing the world one Megings at a time.
31:33And this is going to be the hottest trend of the year.
31:37There's nothing proprietary about this product.
31:40Why would you ever put a dime into this?
31:43It's a million bucks in sales in a multi-billion dollar industry.
31:46Right.
31:47So he's got a lot of room to grow.
31:48Everything starts off like that.
31:50Ah.
32:01Next up, a Latin American food staple that the entrepreneurs hope will be big in the United States.
32:16Hola, Sharks.
32:17I'm Mafé.
32:17And I'm her sister, Coco.
32:19We're originally from Caracas, Venezuela, and together we founded Toasted.
32:23We're here today seeking $100,000 in exchange for 5% equity in our business.
32:29Sharks.
32:30When we moved to the U.S. from Venezuela, we spent years craving great South American food.
32:35But we couldn't find authentic and convenient options in the market.
32:39And that is why we decided to create Toasted, a brand of better-for-you Latin American food
32:45staples that are ready to eat in under 10 minutes.
32:48We decided to focus on a South American classic, the arepa.
32:52It is a cornmeal bread that is crispy on the outside, fluffy on the inside, and perfect for
32:57stuffing with your favorite fillings.
32:59We offer different flavors from chia flaxseed to yucca to our original corn recipe, all
33:05with zero added sugars and trans fats, with three to four grams of protein per serving.
33:10And they're also gluten-free.
33:11Sharks.
33:12The Hispanic community is the fastest-growing minority in the U.S., and the love for Hispanic
33:17food is mainstream across America.
33:20Who's ready to join us in becoming the go-to brand for great and authentic Hispanic food?
33:25All right, Sharks.
33:27Let's try some samples.
33:28Yeah, I'm starving.
33:30But we have here today our original arepas.
33:33They're filled with sweet plantain and queso blanco.
33:37We also have the chia flaxseed arepas with some guacamole, and our cassava or yucca arepas
33:44with some mozzarella cheese.
33:45This is really good.
33:47Thank you so much.
33:48This is the classic with the cornmeal.
33:50It's a bread that you can do anything with.
33:52You can stop it with all different fillings.
33:55They're good.
33:55Or you can top it as a toast.
33:57Is that kept refrigerated or frozen?
34:00Yeah, all of our products are frozen.
34:01But are you already in stores?
34:03This is real packaging.
34:04Yes, correct.
34:04You're already on the shelves?
34:05So we are currently in about 900 stores, including Publix, Walmart.
34:11Wow.
34:11We recently got distribution at Whole Foods Markets and Winn-Dixie.
34:15Congratulations.
34:15Also Central Market in Texas.
34:17Wow.
34:17Tell us a little bit about your background.
34:19So we're both originally from Venezuela, like we mentioned.
34:21We're sisters.
34:22We moved to the States about 80 years ago, basically because of the political and social turmoil that the country
34:28is still currently facing.
34:30And looking for better opportunities for ourselves.
34:32We worked really hard to get a good education and start our corporate careers here.
34:36I started working in one of the largest CPG companies in the U.S.
34:40And my sister started her career in the banking industry.
34:43But there was something or a feeling between the two of us.
34:46We were missing a part of our culture and our traditions and specifically our food.
34:50And so we started thinking between the two of us, like, what we could innovate.
34:55And so we started experimenting with recipes in our own homes while keeping our full-time jobs.
34:59We came up with the first SKU, which is the traditional arepa, that is ready to toast in five minutes.
35:05Did you have any background in manufacturing foods at all?
35:08Nothing.
35:09Nothing.
35:09We literally knew nothing.
35:11So anyway, what do you sell them for?
35:12How much do you make them for?
35:13What's the revenue?
35:14Let's talk cornbread.
35:15Sales last year were $200,000.
35:18This year, we've made about $190,000 in just five months.
35:22So you think you'll get to $400,000 this year?
35:24You sold or you made?
35:25We're going to get about to $500,000 by the end of this year.
35:28Yeah.
35:28We sell them for $323,000.
35:30It's a blended of the four SKUs.
35:31It costs us $230,000.
35:34So our gross margins are 30%.
35:36A little light.
35:37A little light on the gross margins.
35:39After selling and distribution expenses, it's 20%.
35:42That's not good enough.
35:43What are you going to do to fix that?
35:45Just packaging.
35:46We already have a deal to reduce packaging by half.
35:49And in ingredients, there's a lot of opportunity to bring cost down.
35:53And do you have competition?
35:55Not in the frozen aisle.
35:57There are other arepas sitting in the refrigerated aisle.
36:01I like the product.
36:03I've got to tell you why.
36:03I'm not a diabetic, but I monitor my glucose.
36:07So I wanted to try this root one.
36:09It actually didn't spike it.
36:12So I found a bread I can eat.
36:14Thank you for bringing that up.
36:16This is a solution for me and lots of other people that diet the way I do.
36:19We don't eat gluten.
36:21And the taste is phenomenal.
36:23Thank you.
36:24I love to invest in stuff that I use.
36:28I just, I don't know how you're going to make any money with these crummy margins.
36:34This is actually the first year that we're actually going to be profitable.
36:37But have you paid yourselves anything?
36:39No.
36:40We don't.
36:40So that's the thing.
36:40We haven't been paying ourselves.
36:42Okay, look.
36:43It's a flyer.
36:44I'll give you the 100 grand.
36:45I want 20%.
36:58All sharks are still in.
37:00Coco and Mafé have an offer on the table from Kevin for their South American arepas company,
37:05Toasted.
37:05But he wants a much bigger stake than the 5% they came in offering.
37:09I'll give you the 100 grand.
37:10I want 20%.
37:13There's only one Mr. Wonderful.
37:15Thank God for that.
37:17But Mr. Wonderful, you're cutting your valuation by one, like you're valuing at $500,000.
37:23Oh, I know that.
37:25And that's what we're going to make this year.
37:27It's really unfair to value at $500,000.
37:28One-time sales makes sense to me for a commodity.
37:30That's right.
37:31Guys, I'll simplify things to help you figure things out.
37:34Look, it's a great product.
37:35Getting to $200,000 sales with the distribution you have, you know, from where you've started,
37:40is phenomenal.
37:42It's just not something that I get excited about, even though the product is amazing.
37:46So for those reasons, I'm out.
37:47Thank you so much.
37:48We appreciate it.
37:49I love this.
37:50But my concern was, refrigerated trucks cost a lot.
37:55Now there's not a lot of space in those grocery stores.
37:58And for you to get where you have gotten, I have no idea how you've done that.
38:02So I will be purchasing this, but I'm out.
38:06Thank you, Damon.
38:06Thank you so much, Damon.
38:08I think you're so impressive.
38:10Thank you so much.
38:11And you two are very mighty.
38:14You have gotten into five major retailers in the shortest amount of time.
38:18It's fantastic.
38:20Thank you, Lori.
38:21I tasted it.
38:22It's really delicious.
38:24But it's not the right business for me.
38:26So this deal, I am out.
38:29But I'm not worried about you.
38:30Thank you, Lori.
38:31You're fantastic.
38:32Thank you so much.
38:33What is your path for improving your margins?
38:35Because to Mr. Wonderful's point, the more you grow, the more you're digging a hole.
38:40And with a 33% margin, you're not going to be able to run a viable business.
38:43So have you thought about what you're going to do?
38:45So we are attacking it at different funds, right?
38:49One is the machinery that we just bought that's going to help us optimize our production processes.
38:55Second, we were able to negotiate a better packaging deal that cut the cost of our packaging
39:00by half.
39:01One last question.
39:02What level of commitment do you have?
39:04Daniel, I mean, this is our baby.
39:07It's my first baby.
39:09I have the second baby in the belly curve.
39:11Yes.
39:11Right.
39:12Thank you.
39:12Congratulations.
39:13Thank you.
39:14We started this, as we said, from our own kitchen.
39:17I was the first to quit my full-time job.
39:19I had a great job.
39:21And then literally my sister did the same thing.
39:24We are extremely passionate about not only the product, but our mission to promote our
39:30culture and to be ambassadors of the food that we grew up eating.
39:34Daniel, so you just know, you know, Mr. O'Leary has an offer and their-
39:39My offer's getting toasted.
39:40Maybe in your hand.
39:42I like you guys.
39:43I like your energy.
39:44I like your commitment.
39:46I don't like the margins.
39:48I don't like the frozen space.
39:51It's very, very tricky.
39:53Based on your $200,000 in sales, the best I can do is to match his offer.
40:00So I will give you the $100,000 for 20%.
40:05You need to decide if you want to swim with a shark or be eaten by one.
40:15Would you do $150,000 for 15%?
40:19I wouldn't do that deal.
40:20Sorry.
40:21Pero Coco, ¿por qué lo estás viendo a él?
40:23I also give you that offer, Daniel.
40:25También te doy esa oferta.
40:26No, but you hurt my feelings.
40:27No, no, no.
40:28I gave you the exact same offer.
40:30I would love to work with you, Daniel.
40:32I think there's so many things that we could do together.
40:35What was your counter again?
40:37$150,000 for 15%.
40:40That's a-
40:42$1 million, by the way.
40:44I'm valuing the business at $500,000, one times revenue for a baked goods, non-proprietary, terrible margin business.
40:51The only reason I like it is you guys.
40:54And it doesn't spike my glucose.
40:57I'll give you, instead of $100,000, I'll give you $150,000 for 20%.
41:15Guys, this is my final offer.
41:17It's very generous offer.
41:21You have a deal, Daniel.
41:22Good job, Daniel.
41:24Good job, guys.
41:25Good job.
41:26Thank you.
41:26Bienvenidas a la familia.
41:28Y me fascinan las arepas.
41:29Oh, I'm so glad to hear that.
41:31Muchísimo gusto, eh?
41:32Pon la mano acá.
41:34Yay!
41:34We're so excited.
41:36Congratulations, guys.
41:37Thank you.
41:38Ron Crush It.
41:40We are so excited to work with Daniel.
41:42He is the dream shark for us, and I think we're going to be a great team.
41:47Con la ayuda de Daniel, vamos a traer arepas para todas las casas de los Estados Unidos,
41:53y vamos a seguir creciendo nuestro negocio.
41:55¡Ah!
41:57¡Qué parecido!
42:10¡Qué parecido!
42:11¡Qué parecido!
42:15¡Qué parecido!
42:20¡Qué parecido!
42:25¡Qué parecido!
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