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00:00Tonight on Shark Tank.
00:02Sharks, it's time to say good-bye.
00:05No.
00:06To boring gifts.
00:07My dad left one more thing for us.
00:09Why?
00:10A note, a message beyond the grave.
00:12What?
00:12All we need is someone to pour gasoline on the fire.
00:14Wrong move, wrong time.
00:16I am very worried about competition.
00:18I already know that this market is $11 billion worldwide.
00:21You guys are the real deal.
00:22We're just undercapitalized.
00:24We know what we want to do.
00:25I don't think so.
00:26We've taken as far as we can.
00:28We are out of money.
00:29Guys, you've been trying to get in here for 10 years,
00:32and now you have an offer.
00:33Don't blow it.
00:42First in the tank is an exciting treat for special occasions.
00:56Hi, Sharks.
00:57I'm Rachel.
00:58And I'm Aaron.
00:59We're from West Palm Beach, Florida, and we're here seeking $300,000 for 5% of our company.
01:05So, Sharks, we brought some gifts for you, and what we've got is way cooler than these
01:11outdated gift baskets that my granny sends me out of a mail-order catalog.
01:16And definitely way tastier than overpriced fruit shipped to your door.
01:20Now, the dominant players in the online edible gifting space, they're going to ship you a basket full of chunks of cheese and chubs of meat that you have to laboriously peel, chop up, and then artistically present yourself.
01:32Sharks, it's time to say goodbye to boring gifts.
01:37And revolutionized the edible online gifting space with Bordery.
01:42Bordery is the first company in the world shipping completely pre-assembled, catering-quality cheese and charcuterie boards nationwide.
01:49Our edible works of art are shipped completely pre-arranged.
01:54All you have to do is remove your board from its perfectly sealed packaging, pour the nuts in the spots where you find them, and you have a beautiful, chef-quality display in just minutes.
02:05So, Sharks, who's ready to make an un-bre-lievable investment?
02:09We know it's a lot of cheese.
02:11But we're going to make you a lot of cheddar.
02:13Stop the talking.
02:15Start the eating.
02:15So, Sharks, you have your shark cuterie boards in front of you.
02:19Oh, I got that.
02:20Oh, wow.
02:21That's really tasty.
02:22Oh, wow.
02:23So, we have a small, a medium, and a large.
02:26And one thing to understand about these is they're not custom products.
02:29These are made in an assembly line, and we can make up to 3,000 of these in any given day.
02:34Wow.
02:34So, we've created a new gifting category.
02:36This is amazing.
02:38When was this board made?
02:40Because it tastes super fresh.
02:42It's so fresh.
02:42It's all super fresh.
02:43Our standard is next day.
02:44So, if somebody makes an order by midnight, the next day we make it completely fresh,
02:49and then it ships out that same day, and it gets to the customer the very next day.
02:53Where is the facility that you're doing this at?
02:55We have a 15,000-square-foot production kitchen in Florida.
02:59So, let's talk about price.
03:01What does this cost?
03:02So, the one in front of you costs us $91 to produce.
03:06We wholesale it to our vendors, mostly through e-tailers online, for $154,
03:12and it retails for $229, including shipping.
03:15How did you guys come up with this?
03:16So, I've been in hospitality and restaurants my entire life.
03:19And while I was in culinary school, to make money, I started a little catering business.
03:23And over the next 15 years, my wife Julie and I built one of the largest high-end catering companies in South Florida
03:29for royalty, for celebrities, for athletes.
03:32It was, like, really a dream come true.
03:34And then the pandemic hit, and it literally, like, stopped.
03:43Oh.
03:44It, uh, so it stopped everything, and so we pivoted.
03:48And that's when we bet on e-commerce.
03:50We hustled for nine months, and we launched with a popular online e-tailer, and everything changed.
03:56We went from one online e-tailer the first year, then we launched with Williams-Sonoma,
04:01and then we launched with DoorDash.
04:03Last year, we did $1.8 million in sales.
04:05Wow!
04:06And then, wow, we launched with Costco in Q3 of this year.
04:10What will sales be this year?
04:12$4 million this year.
04:13Wow.
04:14Will you make money?
04:15Yes, we'll be profitable.
04:17We'll do $400,000 is what we believe.
04:18And you don't sell direct if I want to buy it from you?
04:20We just launched our website in July.
04:22And how's that working out?
04:23It's been going really well so far.
04:24We did $30,000 in sales our first month.
04:28What is your customer acquisition cost?
04:30Uh, between $40 to $60 in our first initial couple weeks of testing.
04:34And that's really why we're here.
04:35We want to build that side of it out, because our biggest frustration is that we're selling through e-tailers,
04:40so we don't own any of our own customer data.
04:42So we get a huge rush of sales in Q4.
04:45And then we can't remarket to those customers, Q1 through Q3.
04:48And we see that there's so much demand for the product.
04:51Rachel, were you working in the catering business?
04:53Is that how you guys met?
04:54So when the pandemic hit and work went remote, my fiancé and I decided to move down to Florida to quarantine with my family.
05:01Aaron had started delivering these boards for local delivery in our area.
05:04So you were a customer first?
05:05I was a customer, yeah.
05:06And I fell in love with the concept from ordering, and Aaron and I got to know each other, and we would talk about this vision he had.
05:12I believed in him since the minute I met him.
05:15Are you partners?
05:1550, 50?
05:16We're partners.
05:16We own 75% together.
05:18And we have one outside partner.
05:20How much has he invested?
05:21$750,000.
05:22Wow.
05:23Wow.
05:23$750,000?
05:25And he helped us build out the entire production facility.
05:28Now, there are five giant competitors that sell baskets and gifted items.
05:33Yeah.
05:34Couldn't they simply do this themselves?
05:36Why is this proprietary?
05:37It's a great question.
05:38And when we started, we were worried about that.
05:40But what we're doing is so different than pick and packing.
05:43Our facility is built to suit for this type of production.
05:47That's kind of our secret sauce.
05:48And that's our secret sauce.
05:49Of how we're able to do 3,000 of these a day.
05:51How much money did you guys put in?
05:53My wife and I did a $300,000 home equity line of credit.
05:56We also put in another $150,000 SBA loan.
06:00And then another $100,000 line of credit against the catering business.
06:03And Rachel, did you put money in?
06:05I put in $750,000 for the build out of the facility.
06:08Wow.
06:08How much have you invested in total?
06:10Around $2 million total.
06:12Wow.
06:13Man, that's commitment.
06:14And we can do $70 million plus out of this one facility.
06:17Yep.
06:18Rachel, I couldn't be more impressed with the two of you.
06:22Fine.
06:23$300,000 for 5%.
06:25I just don't think the amount of equity...
06:28I mean, we're doing $4 million this year.
06:29I'm with you 100%.
06:30And I just don't like to be a small minority shareholder like that.
06:35Now, I'm going to clear the deck, make room for the other shares.
06:37You can have as much cheese as you want.
06:38Yeah, thank you.
06:39I'm out.
06:41So, guys, I think what you've done is phenomenal, right?
06:43You deserve a ton of credit.
06:44You're pivot.
06:45You showed agility, curiosity.
06:46They go into a new space.
06:47I just think this is replicable.
06:49To Kevin's point, those big companies, they're not stupid.
06:53They know that it's in their best interest to keep you from building that brand.
06:57I'm not saying you can't do it.
06:58I just don't think the economics work for me as an investor.
07:00So, for those reasons, I'm out.
07:02Thank you, Mark.
07:03We understand.
07:04I know the space inside out.
07:06I am very worried about competition because I fought them for years.
07:10They built big businesses, and they have really good customer acquisition costs.
07:14So, my offer is going to reflect the risk I see.
07:17But also, I bring to the table a brand called Chef Wonderful that's been very successful.
07:22And I think I could get behind this product for you.
07:25I'll give you the $300,000.
07:27I want 17.5% equity.
07:30Wow.
07:32What do you need the money for?
07:34We think we're going to get $2 million just in December.
07:37And we need all of the available capital we can get to put into inventory.
07:41And this will help us to be able to run our direct-to-consumer strategy.
07:44I have an offer.
07:46I think you're going to need a lot more cash.
07:49You probably don't even need a partner.
07:50You probably need a good credit line, but I'll give you both.
07:53I'll give you $300,000 cash plus a $300,000 credit line, but I'd like 15% of the business.
08:00Is that undercutting this guy here?
08:02Yeah.
08:02Good.
08:03A little.
08:0315%.
08:04Thank you, Barbara.
08:05Thank you for the offer.
08:06I'm going to make it really simple.
08:08Two sharks are out.
08:22Rachel and Aaron have two offers on the table for their charcuterie board delivery company, Bordery.
08:28And Lori might be interested.
08:30I'll give you $300,000 for 13%.
08:34Thirteen?
08:36Lucky number 13.
08:37You have three offers.
08:39Yes.
08:40What would you like to do?
08:41Our most important thing to us is launching our direct-to-consumer strategy.
08:46And so whoever has the most expertise in that space.
08:49That's right here.
08:50No, it's not.
08:51You've done what I've done direct-to-consumer in consumable gifting.
08:55Nobody.
08:55You want to sell this one day to Hickory Farms or somebody else.
08:58That's how this works.
09:00I know how to get there.
09:01These two don't.
09:02Well, I've sold over 2,000 products over 20 years direct-to-consumer.
09:06I don't think I agree.
09:07That doesn't count.
09:08I don't think I agree with what Kevin's saying.
09:10I've done every product category there is.
09:13Guys, you've got to pick a shark.
09:14Pick a shark.
09:15Pick an offer.
09:15Okay.
09:16We'll counter.
09:16Okay.
09:17She's going to say it because, as you can see, I'm sensitive and I hate to hurt people's
09:26feelings.
09:29Okay.
09:30Lori, would you do it for 8%?
09:33Oh, you guys.
09:34We've already invested so much in this.
09:37We've got the whole production process down.
09:39All we need is someone to pour gasoline on the fire.
09:41Well, let me tell you this, and Mark says this all the time.
09:45Say it, Mark.
09:4740% of a water bill is better than 100% of a grape, you know?
09:50So, here's the thing.
09:52If I blow you up and you're making fantastic sales, then you're going to be thanking me
09:56and saying, oh, I don't care about those few points.
09:59So, I'm going to stay at 13, you guys.
10:03It's time to decide.
10:05Would you do it at 10?
10:06We don't need a lot.
10:08I mean, we...
10:08I will do it at 12.
10:11You know what, guys?
10:12I would do it at 10.
10:16Wow.
10:16I would do it at 10 because the best deals we've all ever done are the least needy entrepreneurs
10:20where they just call with questions, and they just want to support, maybe an introduction.
10:25Look at me.
10:26I'll do it for 9.
10:27He just did that to get me down.
10:28He's such a...
10:29He's such a...
10:30Nine?
10:35Nine.
10:36You got a deal.
10:37I get free boards now.
10:39I get free boards forever.
10:40I got a deal here, Mark.
10:42Oh!
10:43There's the cheese.
10:45You're welcome, guys.
10:47Cheese for life.
10:48For life.
10:50This is so cool.
10:51Yeah.
10:52We love Lori.
10:53We think she's the perfect partner for us.
10:55She reaches all of our customers, and she was really passionate about the product, and I
11:00think that's what matters most.
11:01We need somebody who's going to help us spread the cheese, and she's the perfect partner.
11:05Mark!
11:06You did it for that reason.
11:07Because I knew they weren't going to do 13.
11:09I knew there was no way they were going to do 13.
11:11I loved your whole speech, how you were staying at 13, and then you went tonight.
11:14Cousin!
11:18In season 13, we watched Mika Bertoldo make a deal with Emma Greed for her one-of-a-kind
11:23headband company, Oak Shell.
11:25We're going to actually try to build a proper company.
11:28It's $150 for 20%.
11:29Let's see what she's up to now.
11:32Before Shark Tank, I was living with my husband and my two kids, with my mother, and we were
11:37running all operations from her house.
11:39I was doing all of the sourcing, sewing, dyeing, packaging, marketing.
11:4420 hours a day, 7 days a week.
11:46Since Shark Tank, I moved out of my mom's house into a beautiful new home.
11:50I have a full-time manufacturer in Dallas that does all of my sewing for me.
11:55I upgraded from my mom's garage into a 1,500-square-foot warehouse and office.
11:59And I even have an assistant.
12:01She does 90% of all the packaging.
12:04Since Shark Tank, Oak Shell has made $375,000 in sales.
12:08You can double the amount of inventory that you're putting out in the world.
12:12If you just get a little bit of help, especially when it comes to production.
12:16Emma has been as hands-on as any shark could be.
12:19I had a crash course at her Good American headquarters in finance, marketing, fashion merchandising.
12:26This little hit with the branding, that makes a big difference.
12:29I learned more than I have in all my four years at college.
12:33I'm so, so excited.
12:34This is just the beginning.
12:35As a first-generation American, it was really hard to feel like I was disappointing my parents
12:41when I wasn't following their dreams to become a doctor.
12:44So when my mom first told me she was proud of me, it was amazing.
12:51It kind of made it seem like this is a business, this is real, and this is success.
12:55Being on Shark Tank has changed my life.
12:59I get to spend time with my family and my kids, and I have an amazing mentor who's there
13:04for me any time I need, and it's really helped Oak Shell and is going to continue to help Oak
13:08Shell grow.
13:09Next into the tank is a modern version of a stale car accessory.
13:35Hey, Sharks, I'm Trey Brown.
13:37And I'm Don Brown.
13:37We're two brothers from Los Angeles seeking a $200,000 investment for 5% of our company.
13:43Imagine a peaceful day on the road, wind blowing, sun shining.
13:47You're bumping your favorite track, cruising down the back streets, just catching a vibe.
13:51But then that smell hits you.
13:53A nearby landfill, spilled coffee, even forgotten french fries can turn your car from an oasis
13:59into a horrible, stinky nightmare.
14:02For years, the problem of a stinky ride has been solved by a series of ugly and unnoticed
14:07stylish air fresheners.
14:09So, we created Ride Fresh, the world's flyest air freshener brand.
14:13I know you guys are probably wondering, why paper air fresheners?
14:16When you do a little sniffing around, you'll figure out that it's an untapped market.
14:20At Ride Fresh, we offer a subscription-based car air freshener brand with unique scents and
14:26designs that'll be sure to blow you...
14:28And your customers, Mons.
14:30We have amazing scents, like wood grain.
14:33Wow.
14:34Eucalyptus.
14:35I love this one, bro.
14:36Nice.
14:37And even your favorite basketball teams.
14:39This one smells like winning.
14:42Sorry, Mark.
14:44The reality is, is that paper air fresheners have had no innovation in far too long.
14:50And they smell whack.
14:52Hey, bro.
14:52What's up?
14:53I think I'm smelling a deal.
14:55With the help of the sharks, we can make Ride Fresh explode!
15:02God!
15:03Sharks, in front of you, you'll find a series of our Ride Fresh scents.
15:07Please feel free to crack them open and enjoy.
15:09Wow.
15:10Wow.
15:11After that, we can't even function.
15:13Mark, are you okay?
15:14You're kind of still over there.
15:16Ooh, you know what's...
15:16Dumbest marketing move ever.
15:18I'm out.
15:19What?
15:22That's it?
15:22Seriously.
15:23That's mean.
15:23Seriously.
15:24You gotta read the room.
15:27Wrong move, wrong time.
15:28What are you upset about?
15:29Yeah, why?
15:30What do you think?
15:31The one air freshener from the NBA is the team that beats us in the NBA Conference Finals.
15:35Gotta know that that could backfire.
15:37Oh, Mark, you're a bigger man than that.
15:38Cut it out.
15:38Yeah, I could be, but I'm not.
15:40Wow.
15:43Here's one thing I'll shout out.
15:44Before I even opened them, I picked them up and I could smell the scents.
15:48I was like, wow, these are obviously packed with the fragrance.
15:52So we pride ourselves on having some traditional scents, some non-traditional scents, but our
15:57entire approach and our entire brand is adding a cool factor to the air freshener and changing
16:01the experience.
16:02Do you sell any of this stuff in retail or is it all subscription direct-to-consumer online?
16:06So we built our business off of direct-to-consumer online.
16:10We proved the concept to the tune of over $1.1 million in sales.
16:14What?
16:15What?
16:16Thank you, thank you.
16:17In what period of time did you do that?
16:19In how much time?
16:20In three years.
16:20Three years.
16:21Okay, let's talk about one year, this year.
16:23What are you going to do in this year in sales?
16:25This year we're going to do over $750,000.
16:27Good for you.
16:28But to answer your original question, Mr. Wonderful, we've always known that the subscription
16:32was the first phase of our building our business, but the main potential and the biggest
16:36potential for us is in retail and wholesale, right?
16:39Why would you say that?
16:40Have you proven that or have you just started down that alleyway?
16:42Well, gas stations, things like that, things where it's intuitive to pick this up.
16:46Exactly.
16:47So just in the last six months, we've been able to get to the final stages of an agreement
16:52with the largest automotive retailer in the country.
16:54What's the deal for?
16:562,000 stores, 2,000 of their 6,000 locations.
16:59In other words, they're going to order from you how many dollars of merchandise?
17:03$2.1 million in 2023.
17:05So it's like Pep Boys, that kind of thing?
17:07Yeah, it's AutoZone.
17:08Right.
17:08What did you sell last year?
17:09Last year we sold $540,000.
17:13And out of that $540,000, was any retail, was it all subscription-based?
17:18All subscription.
17:18All subscription.
17:18Why does somebody buy a subscription model for an air freshener for their car?
17:24Right.
17:25Yeah, so it's the convenience factor, right?
17:26Think ride share drivers, taxi drivers, these types of individuals.
17:30If I started with you, how long before I cancel?
17:34About four months.
17:35And how much is the subscription?
17:37They range.
17:37So the base one is you get two a month, and we have them in pairs, and that's $825,000
17:42with shipping.
17:43And then the highest one...
17:45Per month.
17:45Yeah, and the highest one is $10.99.
17:47So $0.38 is our cost landed.
17:49Out of the $540,000 you did last year, were you profitable?
17:54Yes.
17:55Yes.
17:55What did you make?
17:56$40,000 in profit.
17:58Wow.
17:59$40,000?
17:59Wilson, what were you guys doing before this?
18:02Yeah, so we're brothers.
18:05We're lifelong entrepreneurs.
18:06In 2014, we actually launched the first mobile app for black and brown emojis before they
18:12kind of diversified the set.
18:13My brother has a successful career in sales, and I was at a couple different ad agencies
18:18in my career.
18:19We both went to Howard University, the Howard University.
18:22I then came to Los Angeles, and then I got my master's at USC in entrepreneurship, innovation,
18:28as well as a certified in technology commercialization.
18:31I remember walking down the street and seeing all these air fresher everywhere in everybody's
18:36car.
18:36And I was like, well, listen, if we put some culture and style on top of this thing, I
18:41already know that this market is $11 billion worldwide.
18:44In the United States, it's $300 million.
18:46So yeah, we could definitely do this, because there's nobody really doing a subscription model.
18:50That's the most interesting thing you've said in this pitch.
18:54The air freshener market is $300 million.
18:57Yeah, that's interesting.
18:58Listen, I know a lot about fragrance.
19:00This is very male skewed.
19:03I think you need work here in that.
19:06I think you need to have an entire female baseline, because I wouldn't hang this shape in my car.
19:11It's not the right investment for me, but I wish you good luck.
19:14Thank you so much.
19:15I'm out.
19:16You guys are the real deal.
19:17Well, I've been trying to get my head around investing in you.
19:23When I was younger, my mom and dad put me in the back of a car with a million suitcases
19:29and everything.
19:29I had to sit in the back for 24 hours.
19:32No big deal you were looking.
19:32Because my dad refused to pay for a motel.
19:35So we had to drive from Toronto all the way to Florida.
19:38And all I could see was the air freshener.
19:43It is scorched into my brain.
19:47As soon as I see air fresheners, I think, oh, I never want to go back there.
19:53I'm sorry.
19:54I can't be in.
19:55I'm out.
19:55Fair enough.
19:56But let me tell you where I'm stuck at, the numbers, okay?
19:58No one's brought this up yet, and I don't know why.
20:00$200,000 for 5% imputes a $4 million valuation on a business that makes no money.
20:07This is a business model not yet fine-tuned.
20:11I'm out.
20:13Thank you, Mr. Waterford.
20:14You know, I think you need to be congratulated for producing $700,000 in sales.
20:19It's amazing.
20:19Online, amazing.
20:21Why are you pivoting that you're going into retail?
20:23I think you're out of your mind.
20:24I don't think you realize how cash-intensive it is.
20:28Why did you pivot to retail?
20:29I'm curious.
20:30Because that was always the plan, right?
20:32And in the last year, the main way that we were able to grow the subscriptions and acquire
20:35those subscribers became a lot more expensive.
20:37You were losing heart in your subscription model because the numbers had changed.
20:41Yes, but we were always going to focus on growing the business through retail and wholesale.
20:45All right.
20:46So I'm going to make you an offer contingent on your big deals.
20:49Okay.
20:49I'll take a flyer on this because I believe in the two of you.
20:52So I'll make you the offer of, of course, the $200,000, but I do want 25% of the business.
20:59Whoa, that smells a lot.
21:02Let me, can I ask you a question?
21:03Yes, of course.
21:04Um, are there other ways that you can help us in terms of a strategic partnership, um,
21:09in exchange for maybe 15% for the $200,000?
21:14I would have to say 15% definitely not.
21:16I think this is going to be a lot of work to sell this.
21:19$200,000 for $20,000?
21:20What?
21:21For $20,000?
21:22Contingent on those two big deals?
21:23Contingent on those two deals.
21:25You got it.
21:25Okay.
21:26Woo!
21:27Woo!
21:28Wow!
21:28Good one, guys.
21:30Thank you, guys.
21:31Thank you, Shark.
21:31You better not lose my money.
21:34You're going to lose your price.
21:35Thank you so much.
21:35My pleasure, really.
21:37Bye-bye.
21:37Thank you, Mark.
21:37You did a great job.
21:39And sorry again, Mark.
21:40We're sorry.
21:40It's all good.
21:41It's all good.
21:42Congrats, guys.
21:42Nice job.
21:43I think Barbara saw true entrepreneurs, grit, brine, tenacity.
21:47We were already trending upwards with these major retail and wholesale deals that Trey's
21:52been able to secure, and having Barbara on board just means that we're going to have
21:55more resources and more abilities to scale this business all the way to the top.
22:10Next up is a product designed to light up Action Sports.
22:17Hey, Sharks.
22:25I'm Dakota Porter.
22:26And I'm Garrett Porter.
22:27We're from Traverse City, Michigan, and today we're seeking $200,000 in exchange for 15%
22:33equity of our company, Action Glow.
22:36Now, we're action sport junkies, and we've been snowboarding since before we could even
22:40walk.
22:41As teenagers, we practically lived out on the slopes, and because the sun always set
22:45so early in the winter, a lot of our snowboarding was typically done at night.
22:49And sure, they've got big spotlights, but when that sun goes down, the atmosphere becomes
22:54miserably boring.
22:56But one night, we decided to change it and created Action Glow.
23:00Action Glow is an aftermarket LED lighting system for sporting equipment.
23:04It allows riders to express their personal style while also adding an element of safety.
23:09Over the last few years, professional athletes and action sport enthusiasts worldwide have
23:15been turning to Action Glow for their night riding adventures.
23:18We currently offer eight different applications, ranging from snowboards to surfboards.
23:23And the best part is, our systems can be applied in just five minutes to any brand of sporting
23:28equipment.
23:28We are excited to bring a product into the tank that shines brighter than Mr. Wonderful's
23:34head.
23:35Oh!
23:36What?
23:37Bam!
23:38Sharks, we've been dreaming of pitching to you guys since we were kids.
23:42Take a look.
23:43Hi, we're the Porter Brothers, and we live in Traverse City, Michigan.
23:46I'm Dakota Porter, age 16.
23:47And I'm Garrett Porter, age 13.
23:49Together, we created a business, 45th Parallel Lighting, in which we have a patent pending
23:53for our product, Action Glow.
23:54Dakota Porter, age 18.
23:56And I'm Garrett Porter, age 15.
23:58We need the Sharks' help to light up your score.
24:01Oh my God, that's the best video!
24:04Thank you guys, thank you.
24:05Wow!
24:06So you guys applied all those years.
24:08We grew up watching the show, and now, yeah, season 14, here we are.
24:12Wow.
24:13You haven't had your business that long ago, have you?
24:15So we filed for our LLC in 2012, so we actually just celebrated 10 years in business this year.
24:20You've been in business for 10 years?
24:2110 years.
24:22That's crazy.
24:23In 2016, our full utility patent was issued for decorative lighting systems for sporting
24:28equipment.
24:29One color, or can I change colors?
24:31So right now, our systems are one color, so they're static colors.
24:35And that's kind of why we're here today.
24:37So we have developed a second-generation product called Action Glow 2.
24:41Right now, we're sitting at 40 SKUs.
24:43And so that drops it from 40 to 8.
24:45What does the cost go up to get the multi-LED color?
24:48Yeah, so the cost will only go up a little bit.
24:50So our current, the current price for our product ranges from $49 for, like, the skateboard
24:56to $124 for an SUP board or a kayak, which is obviously a little bit bigger.
25:01What does it cost you?
25:02$49 to sell.
25:03What does it cost you to make that?
25:04$15.
25:05Talk about your total sales.
25:06Lifetime sales are $130,000 of hand-assembled Action Glow units.
25:12And almost half of that has come in the last two years alone, when Dakota and I have graduated
25:17college, and we had more time to focus on selling our product.
25:21You were saying what your sales were the last two years alone.
25:23What were they?
25:24Yeah, so in 2021, we did $32,000 in sales.
25:29And this year, we're at $22,000.
25:31But we haven't hit our biggest chord yet.
25:33And our biggest chord was obviously Q4 for the holiday season.
25:36We expect about 40% to 50% of our sales to come in Q4 alone.
25:40How are you selling it?
25:41Yeah, right now, it's all word of mouth.
25:43We've done no marketing.
25:45None?
25:46No social media for guys like you.
25:47So, literally.
25:48Yeah, why not?
25:49Yeah, so we've got social media accounts.
25:51They're saying you haven't spent any money on marketing.
25:53Only social media driving word of mouth.
25:55We're getting the orders right now that Dakota and I can keep up with.
25:57Because every time we get an order, we have to go make it, literally assemble it,
26:01package it up, and ship it out.
26:02So, we're extremely worried if we have a TikTok video go viral.
26:06Or you can't keep up with it.
26:07We won't be able to keep up.
26:08I've never met anyone who doesn't want a TikTok to go viral who's in business.
26:12I think you're crazy.
26:13Guys, I've been in this market before, the product called Illumable.
26:17It was five or six years ago, and it was wildly successful.
26:21And the bigger it got, the more knockoffs came out.
26:24But we kept innovating, kept innovating, innovating.
26:27Knockoffs, knockoffs, knockoffs.
26:29Nothing proprietary here.
26:30I mean, maybe you think this patent...
26:31Yeah, it is. They have a patent.
26:32Yeah, we have a...
26:33What I learned, the patent, you have to actually protect.
26:37And we were suing people like whack-a-mole out there.
26:40I think the product is great.
26:42But the problems ahead are great too.
26:44I'm out.
26:45Thank you, Kevin.
26:47Listen, you guys, I think that you're fabulous.
26:50But you're very, very small right now.
26:53It's not an investment for me.
26:55I wish you good luck, but I'm out.
26:57Thank you so much.
26:58Guys, you're on an amazing journey.
27:00It's just really a tough business for an investment.
27:03I mean, you got to run it the way you want to run it.
27:05And I understand there's some shortcuts by having a shark to help.
27:08But the way you've been doing it is perfect.
27:10I think you guys will do great things.
27:12It's just not a fit for me.
27:13So for those reasons, I'm out.
27:15Thanks, Mark.
27:16Congratulations, guys.
27:17Thanks, Mark.
27:18You have a whole club of people adoring you, I'm sure, wherever you go, right?
27:21And I can't figure out why you haven't sold more.
27:24The only answer I can give myself is you haven't done social media.
27:28It took you 10 years with this amount of sales.
27:31I'm not impressed with.
27:33I know you've put in all the effort.
27:34Sure.
27:35And I know you're the walking, talking example of a young entrepreneur.
27:37I'm not taking away from that.
27:39But something's wrong.
27:40I mean, it's a cool product.
27:42You're the right spokespeople for it.
27:44The biggest thing is we're just undercapitalized.
27:46We know what we want to do.
27:48I don't think so.
27:49There's a lot of young businesses that have long waiting lists of customers
27:52who are willing to wait because they're in love with the product.
27:55So I wish you luck.
27:56I'm sure you'll do well.
27:57I'm out.
27:58Thank you, Barbara.
27:59I'm impressed with it.
28:00You know, I think it takes us all back to our young days.
28:03We're projected in year one of Action Go 2 to do $430,000.
28:08How do I know you're going to sell that amount?
28:10I've been where you want to go.
28:12I've built the size of companies you want to build.
28:14You just got to do it with a little more discipline, right?
28:17Because high energy people tend to be like, ah, squirrel.
28:21Right?
28:22That's right.
28:23That's what I'm here for.
28:24Dakota's that high energy person.
28:25That's me.
28:26And I'm here to reel them in.
28:27I think you need a little discipline.
28:29You're asking for $200,000?
28:30Yes.
28:31Correct.
28:32How much of the business do I own for it to be interesting for me?
28:37And, Robert, let me guess it's going to be more than 15%.
28:39Wow, it's like you have a crystal ball.
28:40Yes.
28:41All right, guys, it's an investment in you guys.
28:45A lot of stuff to figure out.
28:47Sure.
28:48I'll give you the $200,000 for 30%.
28:50I knew he was going to say that.
28:51First off, this is incredible, and thank you so much.
28:55Robert, we'd be willing to do 20%.
28:56No.
28:57200 for 20.
28:58No.
28:59No.
29:00How about 25%?
29:01No.
29:02Did you see yourself getting to 25%?
29:03No.
29:04Guys, you've been trying to get in here for 10 years, and now you have an offer.
29:07Don't blow it.
29:08Okay.
29:14What is going on?
29:15Robert?
29:16Oh, yeah, baby.
29:17It's time to hop on board, Robert.
29:18We've got a deal.
29:19Guys.
29:20Thank you so much.
29:21Oh, my God.
29:22This is awesome.
29:23Congrats, guys.
29:24Can I keep the board?
29:25You can keep the board.
29:26Yes.
29:27Keep the board.
29:28It's yours.
29:29Congrats, guys.
29:30Oh, my God.
29:32Oh, my God.
29:35We've been waiting 10 years to get in the tank, and we just made a deal with our dream
29:41shark, Robert.
29:42We couldn't be any more excited, and we hope that our story and dedication inspires the
29:46next generation of young entrepreneurs.
29:48Next into the tank is an innovation to a classic grooming ritual.
30:03Hi, Sharks.
30:04My name is Mike Gutell.
30:05I am from Metro Detroit, Michigan, and I am seeking a $300,000 investment for 10% equity
30:21of a company that has patented technology that's set to disrupt a $50 billion a year global
30:29industry.
30:30Sharks, I'm talking about the shaving industry.
30:34So what's the problem with shaving?
30:37We see if you put shaving come on like this, you're doing the adverse thing you should
30:40be doing.
30:41I'm not exfoliating my skin.
30:42I'm closing the pores of my face up, and I'm actually matting my hair follicles down.
30:46Now when I go to run my razor over my face, I'm gonna rip it and pull my hairs out, which
30:51gives me the razor bumps and burns we all hate.
30:53Not only that, look at the mess and the waste this creates.
30:56When half the product I don't even use gets washed down to drain.
30:59But this is not how Grandpa shaved.
31:01You see, with all the advancements in the shaving industry, the one thing that has
31:05been overlooked has been the shave brush.
31:07But we don't have time for this anymore.
31:09This is why we created Legacy Shave, the world's first universal patented shave
31:16brush and dispenser all in one.
31:18This is a modern shave brush from modern times.
31:20Watch how quick and easy this is.
31:22One small pump, the product comes right through the brush.
31:25This little bit, this is all you need.
31:28Now you apply it to your face or body, you're doing exactly what you should be doing.
31:31I'm exfoliating my skin.
31:33I'm cleaning out the pores of my face.
31:35I'm stimulating my hair follicles, sticking them out and up.
31:38Now when I go to run razor over my face, I get the cleanest, closest shave possible.
31:42Goodbye razor bumps and burns, and goodbye mess and waste.
31:45Great job.
31:50But here's the amazing part, Sharks.
31:52Legacy Shave fits every single manufacturer out there.
31:56Doesn't matter, make or model, men or women's, foam or gel cans, even down to the travel sizes.
32:03There you go.
32:04It fits them all.
32:05Sharks, I ask you, who wants to use your legacy and join Team Legacy Shave and let's disrupt
32:12the 50 billion dollar a year industry together.
32:15Let's go!
32:16Let's go!
32:17Woo!
32:18Woo!
32:19Woo!
32:20Best presentation ever, Mike.
32:22Wow.
32:23How does it work, Mike?
32:24Let's do a couple of small gentle pumps, smaller than anything.
32:27There you go.
32:28A lot comes out with a little pump.
32:29A little bit, Robert.
32:30Perfect.
32:31That's all you need.
32:32Oh, this is good shaving cream.
32:33It's amazing shaving cream.
32:34It's clean ingredients, infused very heavy with aloe.
32:38What do you sell it for?
32:39We sell that for $24.95.
32:40What does it cost you to make?
32:42It cost me $5.39 to make.
32:45Just the brush we sell for $19.95.
32:47Okay.
32:48How did you come up with this?
32:4928 years ago, we gave my dad a gift for Father's Day we thought he would love.
32:54See, my dad was a daily shaver and he always complained about how his electric razor would
32:59always give him razor bumps and burns.
33:01So my brother and I got him a really expensive, old-fashioned shape brush and he just looks
33:05at us and goes, you know what, guys?
33:06I'm not going to be able to use this.
33:08It's just not for me.
33:09I don't have time for this.
33:11Well, crushed and devastated, my brother and I were like, there's got to be a different way.
33:15So the idea came up, why don't you just put a brush on that and now you have a shape brush.
33:19We ran to the hardware store.
33:20My dad picked up a clay putty that you could mold and form and shape in a disposable paintbrush.
33:26Next day we wake up, my dad just comes strutting down the aisle, smiling ear to ear just like
33:32that.
33:33And we're like, what are you so happy for?
33:35You're never happy in the morning.
33:37He goes, don't you two knuckleheads remember the shave brush we invented yesterday?
33:41Well, it worked.
33:43It's awesome.
33:44I've never had a better shave.
33:45That's great.
33:46So my dad, he knew a plastic injection molder.
33:49Four months later, we get 20 prototypes back.
33:52And this is where things kind of took a turn for the worse, sharks.
33:55Fear.
33:56And it's been documented several times that people have ideas and inventions, that they
34:02spend money, patents to protect it, their whole entire life savings to bring up a new
34:06idea and concept, only to have the bigger companies rip them off.
34:09And it's basically David versus Goliath.
34:11And we sat there in fear.
34:13And that's basically where it sat for literally 20 years, sharks.
34:17Unfortunately, my dad passed away from cancer.
34:20Sorry.
34:21Years after my dad passed away, my brother and I go down to his basement.
34:25And there sits my dad's work bench.
34:27I open up those boxes.
34:28And sharks, remember I told you we only thought we had 20 or 30 prototypes?
34:32Well, there sat 3,000.
34:34What?
34:35Of our original prototypes from 28 years ago.
34:38Oh, my God.
34:39That my dad had sat and assembled during his chemo treatment time to keep himself busy.
34:44Wow.
34:45He knew we would eventually see this.
34:47And sharks, he left one more thing for us.
34:50What?
34:51A note.
34:52A message beyond the grave that said, don't wait.
34:55Life's short.
34:56Take the shot.
34:57Wow.
34:58Wow.
34:59It was at that point in time, my brother and I just looked at ourselves and said, we have
35:02to do this.
35:03And what is the difference now that was different from 28 years ago?
35:07There's a very popular show on TV that gave entrepreneurs a chance to showcase their
35:13products to millions of people.
35:15What show is that?
35:16It's Shark Tank.
35:17Shark Tank.
35:18Yay.
35:19Okay.
35:20And it was because the show was out there, my brother and I got the courage to say,
35:25you know, this gives David versus Goliath a chance.
35:29You guys are a rock.
35:30And the last thing that we wanted to do is to be on our deathbeds wondering what if.
35:35And so that's when the process started.
35:37I understand now why you called it Legacy Shave.
35:39Yes.
35:40You had a great legacy.
35:41Great call.
35:42But let's get back into the business.
35:43What are your sales for this product?
35:45To date, we sold over 100,000 units and did over a million dollars in sales.
35:49100,000 units.
35:50100,000 units.
35:51A million dollars.
35:52And that's over what period of time?
35:53Five years.
35:54Give us the sales over the last five years, year by year.
35:57Year one, we did about $70,000.
35:59Did you make any money that year?
36:00We have not.
36:01Okay, year two.
36:02In fact, we've been in the red every single year, Sharks.
36:04Year two.
36:05Year two, $370,000.
36:07Year three, we did about $390,000.
36:09Last year, what were the sales last year?
36:11Last year was close to $96,000.
36:12And what will they be this year?
36:14So far, we've done $42,000, but we do have a purchase order for $63,000.
36:18The trend is not your friend, Mike.
36:20What's going on?
36:21$390,000, then they start dropping.
36:23Why?
36:24We're a family bootstrap startup company.
36:26We've taken as far as we can.
36:28We are out of money.
36:29How much have you lost over the five years?
36:32To date, as a family, we have personally invested over $400,000 into this business.
36:37And Sharks, we really try to be a direct-to-consumer product.
36:40However, my brother and I, you know, we're trying our best.
36:44We're not geniuses behind us in money sight.
36:46Mike, let me just interrupt you just for a moment.
36:49My large concern with you is you're a phenomenal salesman, but you're not a clear communicator.
36:55You're all over the map, and I don't think we'd be great partners.
36:58For that reason, I'm out.
37:00It's not a good set of circumstances for us that you're out of money, right?
37:04So it's not a fit for me.
37:06I wish you guys the best, but for those reasons, I'm out.
37:10You haven't even seen the best thing about this product.
37:13Our patents do not just cover the shaving industry.
37:16Our patents cover the entire aerosol industry out there.
37:21Cleaning products.
37:22Multiple billion-dollar industries that our invention changes.
37:25Rather than an hairdresser just being like a little stream, it's a power hairdresser.
37:28The note is take a shot on the shaving.
37:31That was your dad talking to you from beyond the grave, which was very moving.
37:35I've been on Shark Tank for 14 years. I've never heard a story like this.
37:38So the shaving category that you're competing in is incredibly crowded and dominated by behemoths.
37:46It's a really big challenge.
37:49I'm not going to take that journey with you. I'm out.
37:53I see a lot of challenges with it.
37:56I wish you all the best, but I don't want to be in the shaving cream business.
38:00So, Mike, it's not for me. I'm out.
38:03But I think Lori still has a merit of her mind.
38:05I'm left.
38:06I really like the interchangeability of this cap onto anything.
38:11And I like the thought of that there are other things that you can do with it and that you have a patent.
38:17Now, all that being said, you don't have many sales.
38:21You haven't proven this, but I also look at it as your family and you don't have a lot of experience in the consumer product world.
38:30I'm going to take a real flyer on you, Mike.
38:33Wow.
38:34Because this is really not like something I ever would think I would invest in, but I also know good product when I see it.
38:40So, I'm going to give you a royalty deal.
38:43But it's not like Kevin's.
38:45I'm going to give you a million dollars for 100% of your company.
38:49Whoa.
38:50What?
38:51Wow.
38:52And I will give you a royalty of 3% of the net sales for life.
38:58Wow.
38:59Wow.
39:00I'm going to give you a million dollars to buy out your patents, the product, the everything.
39:05Yowza.
39:06Yowza.
39:17Four sharks are out.
39:19Lori is Mike's last chance for a deal.
39:22And she has made a surprising $1 million offer for 100% of his shaving brush company, Legacy Shave.
39:29I'm going to give you a million dollars to buy out your patents, the product, the everything.
39:35Yowza.
39:36You won't have to do anything anymore.
39:38I will try to give it a go.
39:40I'm pretty good at this kind of thing.
39:42And then I will give you 3% of net sales on whatever I sell for life.
39:49My decision, though, was based on that this is probably the coolest shaving experience I have ever felt.
39:54It is really wonderful.
39:56Yes or no, Mike?
39:57A million dollars buys you out.
39:58And you can counter some, Mike, too.
40:00Would you be willing to do that offer where we can have 5% equity of our company still?
40:07And that way it guarantees us that we can carry on our legacy.
40:11That's very smart, Mike.
40:12That's called schmuck insurance.
40:13And explain why that's so smart, Mark.
40:15Because if it turns into an amazing deal, you don't want to look like a schmuck because you gave away the whole thing.
40:21Right?
40:22And so by retaining 5%, when Lori turns this into a $10 million or $20 million company, then your 5% is actually worth it.
40:29Mike, you don't even need that because I am the royalty king.
40:32Let me explain what happens.
40:33If she gets bought out by a big shaving company, they're going to want to buy out your royalty.
40:37That's true, too.
40:38And that is your schmuck insurance.
40:39Yeah, you're right.
40:40You're right.
40:41You're going to sell that royalty into one check.
40:43So, technically, I mean, you don't have to do that.
40:47But if you want schmuck insurance, so to speak, then I would come down in the money I'm giving you because now you're retaining 5% of your company.
40:56Right?
40:57But not much, Lori.
40:58So, well, he came in asking for $300,000 for 10%.
41:01So now you're $950?
41:02I would go down, no, $700.
41:04Oh, that's a big dip.
41:10What do you want to do, Mike?
41:11I'm willing to risk $300,000.
41:15I still want to have equity in this company, along with my brother.
41:18It's worth over $100 million easily.
41:21Lori, I take that deal, but I'll take it with the $700,000, because I know that this is going to be more than that.
41:27And we can still retain 5% equity of our company.
41:29All right.
41:30Good job, Mike.
41:32Thank you, Mike.
41:33Thank you, guys.
41:34I bet you didn't expect that today.
41:35This is amazing.
41:36Oh, my gosh.
41:37This is so incredible.
41:38Amazing.
41:39Take the shot, Mike.
41:41Take the shot.
41:42We're taking the shot, Lori.
41:44We're taking the shot, Mike.
41:45What would your dad think of this moment?
41:46I think he's damn proud.
41:49And, in fact, I know.
41:50In fact, I even wore his ring here today with me so he can be with me.
41:54And I know he's standing next to us right now.
41:56And he's saying, way to go, you two knuckleheads.
41:59Let's go.
42:00We're going to do it.
42:01Thanks, guys.
42:02Thank you, Mike.
42:04I just can't wait to celebrate with my mom and my brother.
42:09It's come full circle.
42:11And here we are, and we're ready to move forward.
42:14And as a family, we're going to take that next step.
42:18And I know that this is going to become something even greater than we all imagined.
42:23ago let's come see.
42:25The town.
42:26The town.
42:27Up we veio.
42:28We came up.
42:29It's a sacrifice.
42:30The town.
42:32And.
42:33reheat.
42:34Then on.
42:35Every longtime.
42:36Ere gioved.
42:37February.
42:38etz.