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00:01Tonight, founder of Billion Dollar Jewelry Phenomenon, Kendra Scott, joins the tank.
00:07I'm a brand builder. I want you to dream big, and I think I can help you get there.
00:10I only go big or I go home.
00:12Yeah, smash the competition!
00:16I built this company for $50 and a skateboard.
00:19If something goes wrong at all, you're out of business.
00:22We just need expertise. We've made so many mistakes.
00:25It's a huge cash suck.
00:28I'm going to make you an offer.
00:29Whoa!
00:31Thank you for this opportunity to swim with the shops.
00:43First in the tank is a way to have holiday fun without the stress and mess.
00:56Hi, my name's Daryl Braithwaite, a.k.a. Big D.
00:59I'm from the Big D of Texas.
01:01That's right, Dallas.
01:03Woo-woo!
01:03I am seeking $300,000 for 10% of my company.
01:08Sharks, every Halloween, millions of people gather around the table to bond over the joys of carving jack-o-lanterns.
01:15But that quickly turns into tears and frustration. Why?
01:18Because the most dreaded part of the pumpkin carving experience is...
01:23The sticky, slimy, cold, wet mess.
01:32The sticky, slimy, cold, wet mess.
01:34You end up feeling like this.
01:36Until now, Sharks, let me introduce you to the game-changing solution, the pumpkin glove scraper.
01:43Our super long glove goes all the way up past the elbow, even on Big D's arms, to eliminate you having to experience that sticky, slimy, cold, wet mess that everyone hates.
01:58And our powerful serrated scraper, attached to the fingers, allows you to thoroughly scoop out every last string of that disgusting orange guts, all while keeping your hands nice and clean, and your arm also.
02:14Sharks.
02:16With two kid-friendly...
02:18Sharks.
02:20With two kid-friendly...
02:22Sharks.
02:23Oh, garbage.
02:24I apologize here.
02:25Okay, you can start.
02:26Woo!
02:27I'm not Sir Big D, I'm not starting over, we're doing this!
02:31With sizes for kids and adults, each kid comes with an initial latex glove, two kid-friendly knives, so when the scraping is done, you can begin the fun.
02:42Sharks, we believe it's all about the experience.
02:45It's time to clean out the mess of pumpkin carving, smash the competition...
02:49Oh!
02:50With the pumpkin glove scraper!
02:53Woo-hoo!
02:54Woo!
02:55Now that's a Texas-sized presentation right there.
03:00Big D, $300,000 for 10%, $3 million scooper scraper.
03:05I only go big or I go home.
03:06Yeah, so you must have some huge sales.
03:10I've got some fantastic sales.
03:11We just started, actually, our business.
03:13We finally just got our shipment of product, the end of 2021, the last week of September, the first week of October.
03:21Wow, just in the nick of time.
03:22Just in the nick of time, but the problem is, is we're hoping to get it a lot sooner.
03:25But from the end of September to December 31st, we sold $58,000 in sales, $3,600.
03:33Take a deep breath, Big D.
03:34Thank you, Big D.
03:35Catch your breath.
03:36Big D is so excited and passionate about this.
03:37I just love it.
03:38So, 58K in 2021.
03:40Okay.
03:4121, 58K in 2021.
03:432022 this year, we've done $52,000 from January till now and 6,400 units.
03:49Okay, so there's not much growth there, is there?
03:51Well, it's because it's not Halloween yet.
03:53I'm impressed that you're selling it not in the Halloween time period, so explain that to me.
03:58We went to our first trade show in Las Vegas, and everybody kept coming up, you guys are the hit of the show.
04:03A big buying group came over to us and said, will you come in two weeks to D.C. to our big buyer presentation?
04:08We'll guarantee you to be in front of 60 stores to pitch.
04:12And I sold over 90% of all those stores.
04:14They're like, Daryl, this is amazing.
04:15You're incredible.
04:16You're a genius.
04:16Nobody who is a genius dumps that stuff on their head.
04:19Hey, you never know what you're getting with Big D.
04:23Amen to that.
04:24That's why you have sales now for this fall season.
04:27Correct.
04:27So what does one's kit cost?
04:30One kit cost, if you buy it in the retail stores, $9.99.
04:33Online, we sell from $12.99 to $15.99.
04:35And what did it cost you to make?
04:37The adult kid combo cost me $1.78.
04:39Wow.
04:40How did you come up with this idea?
04:42This is my family.
04:42We love Halloween moments and traditions.
04:44We love going to the pumpkin patch.
04:47Every single year, the kids go and they get the biggest pumpkin possible.
04:51Put it in the cart.
04:52Boom.
04:52We get home.
04:53And they're all happy, excited.
04:55Dad starts cutting off the top of the pumpkin.
04:57Then they start going in.
04:58Then all the kids are like, ew, gross.
05:00My kids are running around the house.
05:02Yeah, you're doing it yourself.
05:03Like crazy, touching all the stuff.
05:05My wife's freaking out.
05:06The kids are crying.
05:07This picture right here.
05:09This is my son, Parker.
05:10This picture right here is the absolute moment that I had my aha moment.
05:14It hit me like, oh my gosh, that's it.
05:18Now is this your full-time job?
05:20It's not.
05:20So my background is in medical sales.
05:22I've been bootstrapping and working hard at night and weekends.
05:26But with medical sales, I understood really quickly that I needed when I got married to
05:30have a job to really help.
05:32That helps pay the bills, right?
05:34That helps pay the bills.
05:35You're asking for $3 million valuation.
05:37How do I get my 300,000 pumpkin seeds back?
05:40There is nothing on the market that competes with this.
05:43I have a patent that was issued June 15th.
05:45I actually filed it on Halloween Day in 2017.
05:48You did?
05:48Yeah, on Halloween Day.
05:49I've got two more utility patents pending.
05:51My patent is a broad patent.
05:53One of my partners is a patent attorney.
05:55So he's helped me button up all the edges.
05:56Oh, you have partners?
05:57Yes, I have partners.
05:58How many dollars have you raised towards this and how much have you spent?
06:01We have put about $850,000 into this.
06:03Whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa.
06:05$850,000?
06:06$850,000?
06:07Yep.
06:18All sharks are still in, but they are shocked by the huge amount of money Big D has invested
06:24in his pumpkin carving accessory, Pumpkin Glove Scraper.
06:27We have put about $850,000 in it.
06:29Whoa, whoa, whoa, whoa, whoa, whoa, whoa.
06:32$850,000?
06:33Well, let me tell you why.
06:34I've only put in about $20,000.
06:36I have a partner that's funded the rest of the money.
06:39How much of the company do you own?
06:41I own 70%.
06:41So my second partner, he's the financial backing.
06:44He's like, Darrell, I believe in you.
06:45Let's go.
06:46Well, we first started out building our machine.
06:48So I've got a machine that I built to make this.
06:50I can make 6,500 of them a day over in China.
06:53The problem is COVID hit, and they made it so that, hey, the only way we'll do this
06:59is if you'll order 300,000 gloves.
07:00That sounds like a horror movie right there.
07:05Yeah.
07:06So your thing to your guy was, look, big money guy, I'm going to sell through these quickly.
07:12And the minute I sell through them, I'll give you your money back?
07:15Correct.
07:15He put another $300,000.
07:17I'm going to pay him back a dollar a unit once we start becoming profitable because he wants
07:20to see it going.
07:20Whoa!
07:21Wait, wait, Big D, did I hear a dollar a unit?
07:24He's speaking your language.
07:26Ding, ding, ding, ding, ding, ding, ding, ding, ding.
07:27No, no, Mr. Wonderful.
07:28No, no, no, no, no, no, no.
07:29Whoa, whoa, because now I know how the money guy's getting his money back.
07:33Well, that's only on that $300,000.
07:35Only if you can sell it.
07:36You know, often in business, the challenge is money can highlight your weaknesses.
07:41Sure.
07:41Right, and that's what I call the power of broke.
07:43You can make the same mistakes with $10,000 as you can with $800,000, right?
07:48Then what puts small businesses and startups out of business is actually called overfunding.
07:52They borrow too much.
07:54They buy 300,000 units when they need 1,000 units.
07:58I think this is a prime example of that.
08:00I'm out.
08:02Appreciate it.
08:03You know, look, I love this product.
08:04I think it's very, very innovative.
08:06Super cool.
08:07I am the Halloween queen.
08:08I mean, we have carving contests at our company, at my house.
08:12I love this.
08:13I think this is such a great...
08:14I will be a consumer, but your numbers just aren't adding up to me.
08:18I think you've taken on way too much risk too early, and for that reason, I'm out.
08:23Yeah, Dean, that's your issue, right?
08:25You're going to learn, like every startup does, about their product, but you're so bought
08:29in, right, on inventory.
08:31Yep.
08:32If something goes wrong at all, you're out of business.
08:35And so, for those reasons, I'm out.
08:39Appreciate it.
08:40Big D, I wish you'd come in here asking for a lot less than 300K, because I love the idea.
08:46You know, I could have got behind it, but 300K is serious dough.
08:50Yeah.
08:51I love you.
08:52The 300K is too much.
08:54I'm out.
08:55Oh, Big D.
08:56And then there was one.
08:58Yes.
08:59Whoa.
09:00Listen, I think this is the best solution I have ever seen for a Halloween pumpkin carving
09:07product.
09:07But Halloween is my favorite holiday.
09:09Yes.
09:10And I think that there are a lot of positives to this.
09:15Oh, thank you.
09:15But there are some big negatives.
09:17Okay.
09:17One is you bought way too much inventory before you had sales.
09:22That is something that can really hang you.
09:24And you don't know how fast that'll go or if it's going to take a long time.
09:30To come in for $300,000 for 10% ask, just $300,000 alone, right?
09:36Yeah.
09:36Well, that's why I need you guys' expertise on this.
09:38I cannot imagine digging out of this hole.
09:41And so while I love it and it's great innovation, I am so sorry.
09:45I am out.
09:47Oh, Lori.
09:49Thank you, guys.
09:49Appreciate it.
09:50Good luck, Big D.
09:51Appreciate it.
09:52We'll see you in the big day.
09:52Good luck, Big D.
09:53Be careful.
09:53Be careful.
09:54I'm sad because I truly believe with the connections, the mentorship from the sharks,
10:00this thing's ready to just blow up.
10:02And that's what I was hoping today.
10:03I didn't get it, but I'm going to continue to persevere like I always have.
10:06When something, you get knocked down, you get back up, and you continue to go.
10:10But I truly believe this was a fantastic opportunity.
10:15In Season 13, we saw Emily Castro and Melissa Harrington make a deal with Lori Grineer
10:20for their seafood delivery service, Fish Fix.
10:23I want 33 and a third percent.
10:25I don't want you doing it for that.
10:26I don't care what you want.
10:27Yeah, I do.
10:28I'll give you the $200,000 for 25 percent.
10:30You have a deal.
10:32Let's see what they're up to now.
10:35Last year when we pitched the sharks, we had done $820,000 in sales, but only 20 of that
10:40was hitting our bottom line.
10:41We had a major logistics issue.
10:43We were shipping out of Texas, and we were getting crushed on our margins to the East and
10:47West Coast customers.
10:49Before we went on Shark Tank, we started to solve that problem.
10:52And we identified a logistics partner that would help us get set up on the East and West
10:56Coast.
10:56But everything went south.
10:58They had made promises that they couldn't hold up on their end.
11:01We had over 400 canceled orders.
11:04It was devastating.
11:05Okay, what are we going to do?
11:06Lori and her team really gave us great advice.
11:09Stay transparent with your customers.
11:11Find resolutions.
11:12We spent every waking moment behind a computer doing customer service.
11:16We would just claw back and say, please, just give us an opportunity.
11:20And then we had to establish a new relationship with another company that would help us get
11:24back on track.
11:25Even with all of these problems, we've now hit $1.1 million in sales since airing on Shark
11:30Tank less than a year ago.
11:31When you're honest with your customers, the loyalty grows even stronger.
11:36Emily and Melissa are the entrepreneurs that I dream of because they don't know the word
11:40know and they do whatever it takes.
11:42If they need to talk to me or anyone or get anything done, they get it done.
11:46When you're buying seafood, you want a company you can trust.
11:49And that's what Fish Fix is.
11:51Our new campaign.
11:52I love it.
11:52You love it?
11:53My advice for a young entrepreneur is to build a business that's scalable by putting the
11:58right systems and people in place.
12:00We are so excited for our Fish Fixes today.
12:02We're finally back in the kitchen making recipes.
12:04We have the support of an amazing team.
12:06And we're finally able to spend more time with our families.
12:10Next up is a reinvention of an everyday workout accessory.
12:25Hi, Sharks.
12:35I'm Millie.
12:36And I'm Taylor.
12:37We're best friends living in New York City.
12:39And we're here asking for $100,000 for 10% equity in our company.
12:44Sharks, over the past few years, our lives have changed in so many ways.
12:48From the way we work to the way we work out.
12:51Our living rooms have become our local gyms.
12:53Our bedrooms have turned into boot camps.
12:56Our mat-based workouts are no longer just a yoga class to wind down.
12:59We're doing sculpts, Pilates, and strength training.
13:02And our yoga mats, they're just not supportive enough.
13:05And they add no extra value.
13:07Our exercising has evolved, but our yoga mats haven't.
13:11Well, rollover yoga mats.
13:13It's time for an upgrade.
13:14Introducing Stacked.
13:15Stacked, a mat with a unique foldable design that unlocks a new level of versatility for
13:20any exercise.
13:22When the Stacked mat is fully unfolded, it acts just like a standard yoga mat, except
13:27it's better, because it always lays flat and it's twice as thick.
13:30If you're in need of some extra support, we got you.
13:33Fold your Stacked mat once or twice and get that much-needed extra cushion for your joints.
13:39Or, fold Stacked up entirely and it transforms into a block that can be used for tricep dips,
13:48incline exercises such as planks or push-ups, lunges, and so much more.
13:55Sharks, Stacked was born out of the love for sweating and the need for adaptation.
14:00So, which of you wants to give us Stacks of money and help us take over the fitness industry
14:05with Stacked.
14:07Good job.
14:08So, you each have a Stacked mat in front of you.
14:10It also comes with a carrying strap, so you can easily take it with you on the go.
14:14Now, I'm in the gym all the time.
14:16Yeah, right.
14:16Practically every day.
14:17I've seen lots of foldable mats.
14:18Is that where you keep your snacks, the gym?
14:20Lots of foldable mats.
14:20Lots of foldable mats.
14:22What is unique about this?
14:23So, when we think about the foldable mat space, there's sort of two kind of mats out there,
14:28right?
14:29So, there's the big gymnastic mats that are essentially pieces of cushion that are held together
14:33by vinyl, and those mats are heavy, they're expensive, they're also not the right material
14:39for yoga or sculpt, you know, they're not grippy, they're not nimble, you can't take
14:42them on a belt.
14:43What about the classic rolled mat, which you see so many people carrying, you know, around?
14:48Of course.
14:49Yeah.
14:49Yeah.
14:50Kind of why we created this.
14:51So, to give you some background, Taylor and I met about 10 years ago in college, and
14:55we've been best friends, we've been roommates, and we've always been into fitness, but it
15:00wasn't really until the pandemic when we started working out a lot more for our mental health
15:04and our well-being, and we realized we were using a yoga mat, but neither of us were necessarily
15:09doing yoga, and half the time we were rolling up our mats for extra support, or we were using
15:15a block or something to really enhance the workouts we were doing.
15:18And so, we found that there was, you know, room in the market for not only a more supportive
15:21mat, but also a mat to add that versatility.
15:24And what's great about this is it folds and it can really act as a second piece of equipment
15:29and really enhance and modify the workout.
15:31I'm curious to know the price, like what it costs you, and then what you sell it for.
15:35The mat itself, in a box with the strap, costs us $14.90.
15:40It lands to us at $21.50, and we sell it for $86.
15:45$86?
15:46Yes.
15:46Good.
15:47Everything is D2C through our website, and everything's been through creating content and
15:53really building a community.
15:54Let's say it has merit, all right?
15:56It has merit, for sure.
15:58Show us sales.
16:00So, in the six and a half months that we've been selling, we've done a little over $110,000
16:04in sales.
16:05That's not bad.
16:06And we haven't put any money into marketing, so.
16:08That's better?
16:09Yeah.
16:10I'm signing up for Pilates now, all right?
16:12And I don't have a mat.
16:13Oh, my God.
16:13And I go online.
16:15What are the price points I'm going to be presenting?
16:16Let me take you through it.
16:17So, the yoga mat industry is segmented by materials.
16:20This is an EVA foam.
16:22It's non-toxic.
16:23It's non-porous.
16:24We compete in the premium segment, right?
16:26We're competing with mats that cost anywhere from $70 to $130.
16:30We're at $86, right?
16:32On the low to mid end of that.
16:34There are mats, $30, $35, that are made from something called PVC.
16:39It's a toxic material.
16:41And it's something we really haven't been highlighting.
16:43This mat doubles as a piece of equipment, right?
16:46That's what this was born out of, right?
16:48Your visuals are really good for that.
16:49Yes.
16:49And how much of your own money is into this business?
16:52We each put in a bit over $25,000 from our savings.
16:55Okay.
16:55What else do you do?
16:56Is this your full-time gig?
16:58So, right now, we both have full-time jobs just to fund the business.
17:02So, my background's in sales, and I've worked at startups for my entire career.
17:05So, I've really experienced firsthand.
17:07What kind of startups?
17:08All over the place.
17:10Restaurants, dentists, and doctors, and most recently with experiential retail.
17:16All right.
17:17And Taylor?
17:18So, my background professionally, I have worked in product for the last six years on the fintech side.
17:24What kind of product?
17:26It's a portfolio risk and analytics solution for fixed income debt.
17:30You work in financial services?
17:32I do.
17:33In fintech.
17:33Yeah.
17:34So, Millie, Taylor, I see the viability here, but I really just don't know much about this market.
17:41And listen, there could be a million other kind of mats out there.
17:43I made my career over T-shirts.
17:45There's millions and millions of T-shirts.
17:47But I think there probably would be more sharks up here that would be of more value to you.
17:51But I wish you luck.
17:52I like it.
17:53But unfortunately, I don't think I can help you.
17:55I'm out.
17:55Thank you, Damon.
17:56Thank you for this opportunity.
17:58So, I invested in a company called Bala.
18:00They created an entire community around high-end fitness equipment, but my concern is competing with Bala.
18:06I would be working against myself, so for those reasons, I'm out.
18:09Thank you, Mark.
18:10You got it.
18:11You know, look, I love yoga.
18:13I think this is a great idea.
18:15I love the idea for your knees.
18:16Unfortunately for me, I have a mat, and I've used the same mat for two years.
18:21I don't see this as a product that I'm going to continue to rebuy, so you're always going to have to be acquiring new customers.
18:26I really don't see the longevity of this being something that would work for me to be involved.
18:30So, for that reason, I'm out.
18:34All right, what are you doing, Lori?
18:35What are you doing, Kevin?
18:37I don't know.
18:38You know, it's a very difficult deal.
18:39The best part of this deal are you two.
18:42But I'm sorry.
18:43This is not a business for me.
18:44I'm out.
18:46Listen, I like this mat a lot.
18:49I think this is the best mat I've ever seen, and I've gone through a lot of them.
18:52This one's fantastic.
18:54I'm going to make you an offer.
18:55Now, because you guys are so, so newbie, I'm going to give you $100,000, but I'd like 15%.
19:02But I would like $1 back per unit sold until I recoup my $100,000.
19:07We will blow this up.
19:09I'm worth it.
19:17We appreciate your offer.
19:19I guess while we're here, be fair to the whole panel.
19:22Just want to see if the conversations are done with you.
19:23Listen, guys, I see a little clock in my head.
19:26It's going tick-tock.
19:28Okay, Lori, do you mind if Millie and I take a minute?
19:31Take a minute.
19:31Maybe 10 seconds.
19:32Okay.
19:42Okay.
19:44Lori?
19:44Yes.
19:45Thank you so much for your offer.
19:46Our concern with the royalties that it's really going to siphon the growth that we need right
19:51now to kind of hit with this momentum.
19:54Would you be willing to do $100,000 for 20%?
19:57Oh.
19:58See, the reason why I did that, you guys have a lot of margin.
20:01So really, a dollar when you're making, like, $50 a piece or more?
20:07It doesn't really, it doesn't really hurt.
20:09But if you really want me in it to win it, how about 25% equity?
20:14Which I'm not going to see unless we sell this company or unless we make a lot of sales.
20:18That's a $400,000 valuation, guys.
20:22Yeah.
20:22I know.
20:23Wow.
20:24Would you do $150,000 for 22 and a half percent?
20:33Mm.
20:34No.
20:35I mean, my plan is to blow out so many of these, we won't need it.
20:39Standard round, guys.
20:39We won't need it.
20:40That's cheap valuation.
20:43So you have to decide.
20:45She's removed the royalty.
20:46Yeah.
20:46Now.
20:47You could go back to it.
20:48You know, you think about it.
20:49And that was at 15%.
20:51That's right.
20:53Okay.
20:54That was at 15%.
20:55We have another offer here.
20:56Okay.
20:56$100,000.
20:57Yes.
20:5815%.
20:59Yes.
20:59Give you a $0.35 royalty.
21:03$0.75 and you got it.
21:08You have a deal.
21:09Woo!
21:09Woo!
21:10All right.
21:12I like it.
21:13Thank you, guys.
21:13Thank you guys so much.
21:14Thank you guys so much.
21:16Lori's going to be a great partner.
21:17Can't wait to work together.
21:18We're going to blow it up.
21:19We're so excited.
21:19Let's do this.
21:20Guys.
21:20Bye, guys.
21:21Congratulations.
21:21Thank you guys.
21:23Congrats.
21:27We're so happy.
21:29This means everything to us.
21:31We are so excited to take stock to the next level.
21:34There is a royalty component to the deal.
21:36But it's okay.
21:37Lori is so worth it.
21:38Next in the tank is an ancient food with modern health benefits.
21:54Thanks.
21:58Thanks.
21:59i
22:19hi sharks how you doing my name is kadim oh i'm the founder of mama's premium kimchi based out of
22:24of New York City, and to the left of me is a living legend,
22:28my mom, Mama Oh.
22:32Hi, Sharks.
22:33Hi.
22:34Along with my beautiful and very pregnant wife, Amy,
22:37who could not be here today, we are the owner-operators
22:40of Mama Oh's Premium Kimchi.
22:42We are seeking $250,000 for a 10% equity stake.
22:46So, Sharks, everyone knows kimchi is delicious,
22:49but did you also know it's super nutritious?
22:51Kimchi is an Asian superfood from Korea.
22:54It is naturally fermented and is full of probiotics.
22:58That's right, kimchi is health food,
23:00but more importantly, it tastes incredible,
23:03and not just with Korean food, either.
23:04Kimchi goes great with hamburgers, hot dogs, mac and cheese.
23:08The list goes on.
23:09What makes our kimchi the best
23:11is our authentic Korean mom recipe,
23:15kept fresher than other brands by our innovative packaging.
23:18In addition, we invented the first
23:20and most complete homemade kimchi kit,
23:22what used to take over three hours,
23:24now you can do in less than 10 minutes
23:26because all the grinding, mixing, measuring, juicing,
23:29chopping and shopping is already in the jar,
23:31just like my mom used to make,
23:33and it comes out perfect every time.
23:35It's a lot easier than you think.
23:38So, Sharks, who's interested in fermenting some money
23:42while augmenting your tummy with Mama Oh's Premium Kimchi?
23:45Nice.
23:46Good job. I love kimchi.
23:47Damon, if you wouldn't mind, as a fellow New Yorker,
23:50would you help Mama Oh make some kimchi onstage using our kit?
23:53Absolutely.
23:54It will be an honor.
23:57Annyeonghaseyo.
23:58Annyeonghaseyo.
23:59Hi, Damon.
24:00Today, you're going to turn this Mama Oh's Premium Kimchi Kit
24:04to Mama Oh's Premium Kimchi.
24:07It's like sex education, but spicier.
24:10Please put on this rubber gloves.
24:15You normally need rubber gloves during sex education.
24:18For kimchi, you start with a head of napa cabbage
24:22called bachu in Korean.
24:24Bachu?
24:25All right.
24:26I've already cut one and brined overnight.
24:29Next, add onja of kimchi paste.
24:33Scoop it out with your fingers as much as you can take out.
24:38Okay, that's enough.
24:40Okay.
24:41That's enough.
24:42Now, let's mix.
24:43Just gently toss it.
24:45Gently.
24:46Tenderly.
24:47Lovingly.
24:48I'm getting turned on, Damon.
24:50That's it.
24:51It's ready for fermentation.
24:52It is.
24:53Okay.
24:54For some of us, enjoy.
24:55Just made fresh kimchi and eat it like salad.
24:58Aww.
24:59Aww.
25:00That's sweet.
25:01Mama.
25:02Now, we put it in the kimchi jar, and it looks like this.
25:08So what is this right here?
25:10This is an airlock that makes your kimchi breathe while it's fermenting.
25:15That's so amazing.
25:17I feel so warm and fuzzy now.
25:19Aww.
25:20Damon, first of all, thank you.
25:21Sharks, you have a sample of what we're offering.
25:23We have four different kimchis, the kimchi paste and the kimchi hot sauce,
25:28which I didn't even mention in the pitch yet.
25:29That throws only just one type.
25:31Actually, there are hundreds of types of kimchi.
25:33Okay.
25:34But the one that most people know and are familiar with are Napa cabbage.
25:37We have the original, a vegan version, a mild version.
25:41Did you try the super spicy?
25:42The spicy is real.
25:43I was about to warn you about the super spicy.
25:44I was about to warn you about the super spicy.
25:45It's like, whoa.
25:46Whoa.
25:47It's really hot.
25:48I want to know about you guys.
25:50Like, how did you come up with this idea?
25:52I needed some kimchi for myself, and I live in New York.
25:56My folks live in Maryland, so it's too far to go to Maryland to bum a jar.
25:59So I would bring it back in this exact cooler, our family cooler.
26:03And back then, I would wheel it home on my skateboard.
26:05Wow.
26:06So I asked my mom to teach me how to make it.
26:08And then I was buying some ribs, and the butcher's like,
26:12oh, you eat with some kimchi and rice, eating like a king.
26:14So I said to him, you know, I sell this stuff.
26:17I didn't.
26:18And he said, I want to start carrying it.
26:20Now we are nationwide through Whole Foods.
26:23Whole Foods.
26:24We just got into it.
26:25How much does it cost to make, and how much did you sell it for?
26:27It costs us $2.65 to make a bag of kimchi, and it retails from $8.99 and up.
26:33And the kimchi kit, we make them for $8.25, and we wholesale for $20.
26:39So tell us about your sales.
26:40Our top line sales for last year was $815,000.
26:44Wow.
26:45Nice.
26:46And what will sales be this year?
26:48This year, we are projecting a million dollars.
26:50And how much will you make?
26:5125%.
26:52Good for you.
26:53And is the majority of your sales right now coming through Whole Foods,
26:56or is Eric direct-to-consumer?
26:58We do almost zero online sales.
27:01We have our own website, but that's not our focus.
27:04But we also partner with Williams-Sonoma.
27:07Have you been in there a long time?
27:08Probably about eight years now.
27:10So why are your sales higher?
27:12I built this company for $50 and a skateboard.
27:15So building it up, I have zero outside investors.
27:18I've done everything myself.
27:19So let me re-ask the question.
27:20Because you've got the distribution,
27:22so what's holding you back from being a $2, $3, $5 million company?
27:26Because I always thought the way that businesses work is you make money in the business,
27:31and then you can hire more people instead of getting any outside funding.
27:34Well, you are making money.
27:35I'm assuming you pay yourself, or is that part of the $250?
27:38So I don't pay myself.
27:40I've invested the money back into the business.
27:42Got it.
27:43So first of all, you started this with $50 and a skateboard.
27:46I'm a mom.
27:47I have sons.
27:48How does this make you feel, Mama O, to see your son build something like this?
27:53I am proud of him, but more than anything, I'm thankful that he is an honest, hardworking entrepreneur who is passionate about kimchi.
28:04He single-handedly runs the kimchi business.
28:08Now, two years ago, he met Amy and got married.
28:12They're expecting their first baby next month, and Amy has lots of experience in food business.
28:20She quit her well-paying job and joined our company.
28:23So now, we are a dream team at the cusp of fantastic growth.
28:29So, with your backing, the sky is the limit.
28:33Oh, that's really beautiful, honestly.
28:36It is beautiful.
28:37You can't bring mom like that.
28:38I know.
28:39That's unfair.
28:40You have a million in sales.
28:41You know, I look at it and say to myself, you have to educate people about what this is.
28:45And I think over time, as people become much more concerned about healthy foods, this is going to fit in that category.
28:50The hardest job of this is actually getting people to try it.
28:53It's not for me, guys.
28:55I'm sorry.
28:56I'm out.
28:57You guys, one of the hardest things an entrepreneur has to do is determine when to add their first employee.
29:02Because you have to give up a little bit of control when you try to go for growth like that.
29:06But after eight or nine years, there had to have been an opportunity for you to do this.
29:12I just don't think you're going to be confident, and I think it's going to be hard for an investor to work with you.
29:16So, for those reasons, I'm out.
29:19As much as I love you both, and as much as I love kimchi, and I think it's really spot-on for the future,
29:26it's just not investable for me, and I'm sorry.
29:29I'm out.
29:32Your story was so inspiring, and Mama Oh, you are one of a kind, truly.
29:37But if I'm going to invest in something, I got to be able to, like, really stand behind it and sell it.
29:42And I'm not a kimchi person.
29:44For that reason, I just can't invest in them out.
29:48Damon, you're the last shark.
29:50A tough one, because I...
29:53You've sold a good amount over the years, but...
29:56Why do you feel that you're ready to change the way you've been operating with your family?
30:00Mm-hmm.
30:01Why is this the time?
30:02We're expecting a baby next month, so that's another mouth to feed.
30:06I just...
30:07Ah.
30:08Sharks, please, if I may say something.
30:12Mama Oh's kimchi company needs money for capital investment and expanding our facility...
30:18That's why you came to Shark Bank, Mama.
30:20That's right.
30:21But not only money, but your expertise, your direction, your guidance, your support.
30:29I would like to have someone to come in and teach us and then lead us to the big market.
30:36That's why we are here.
30:38Well...
30:40I'm on the fence, and I think it's really because of Mama Oh.
30:44She's definitely just amazing.
30:47I'm going to have to trust, I think, my gut.
30:49I'm not obsessed with the product.
30:51I'm just obsessed with the culture, you and Mama Oh, and I...
30:55I hope I don't regret it.
30:56No, you know what?
30:57I hope I do regret it.
30:58But unfortunately, I'm out.
31:00Good luck, guys.
31:01Thank you for this, uh, opportunity to swim with the sharks.
31:06Good luck.
31:07Congrats.
31:12Do I think the sharks made a mistake today?
31:15Absolutely.
31:16Well, the important thing is that we stay healthy and love each other.
31:24100%.
31:25That's the most important thing.
31:28Next up is a tool to help you become king or queen of your own castle.
31:53Hello, sharks.
31:54My name is Kevin Lane.
31:55And I'm Lori Lane from New Milford, Connecticut.
31:57We are seeking $350,000 for 10% equity in our company, Create A Castle.
32:04Everybody loves to vacation at the beach.
32:06I know that I could lay in the sun for hours with our daughter.
32:09Our son would stay in the water all day if we let him.
32:12And if you're anything like my husband here, you like to spend hours and hours and hours
32:17ignoring his family building the most elaborate sandcastles.
32:21But it's impossible to build a real sandcastle using the traditional fill-and-flip buckets.
32:26The wet sand sticks in the bucket.
32:28Even at its best, it just looks boring.
32:31That's why we invented Create A Castle.
32:35Revolutionary split-mold sandcastle kits that allow you to build elaborate sand structures in no time at all.
32:41Just buckle it, pack it, unbuckle it, and, well, create a castle.
32:48Our pro kit includes a 10-inch cylinder for the base.
32:52A corbel to add a new level of intricacy.
32:55A stackable 6-inch piece for additional height.
32:58A Rage Battleman brick form to add to the towers.
33:01And a window cutter to etch out elegant windows.
33:04Then sit back, relax, and enjoy the admiration of everyone on the beach.
33:08So, Sharks, who wants to create an empire with us bringing families together one castle at a time with Create A Castle?
33:16I have six kids.
33:18I'm a mom and bonus mom to six kids.
33:20All right, that's awesome.
33:21So we spend a lot of time on the beach, and I love this.
33:25Is there anything like this out there?
33:27Because I feel like I've seen something similar.
33:29Nothing like this.
33:30No.
33:31We're unique in the fact that we split, so the molds split in half, but they also are stackable in the right kind of sand.
33:36You build that entire castle?
33:38Yep.
33:39How long does that take?
33:40That took me under two hours.
33:42Wow.
33:43I see a patent.
33:44Do you want to tell us about that?
33:45Yes.
33:46So, go ahead.
33:47We have...
33:48Yeah, we have 12 patents worldwide.
33:4912?
33:50Wow.
33:5112.
33:52Does your patent, you believe that protects you, and anybody who wants to start splitting their toys open?
33:56We have broad coverage.
33:57It scales up and down.
33:58That's why we're going down into the indoor line now, as well.
34:02All right, guys.
34:03Look.
34:04This is a very, very seasonal product.
34:06It works in the snow.
34:08Oh!
34:09Very cute.
34:11Thank you, Mr. Mark.
34:12Perfect.
34:13Yeah, so it does.
34:14It works year-round.
34:15We figured that out the first year we did it, and you can stack like crazy.
34:20It's like Elsa's castle in the winter.
34:21That's it.
34:22We've built them.
34:23Yeah.
34:24That's really, really cute.
34:25I was about to say, who wants a castle in the winter, but Elsa?
34:27Elsa?
34:28Yeah.
34:29Yeah.
34:30So, guys, what are the price ranges?
34:31What's the least and what's the most?
34:33So, we go the tool kit that we have there, the small box.
34:36That's $10, and then the pro kit retails for $50.
34:39What's your landed cost on this?
34:41The little one is landed at $2.
34:43The pro kit, that costs us $9.45.
34:45So, what did you sell last year?
34:46You're imputing a value of a $3.5 million on this.
34:49Yes, so, last year we did $600,000, and then this year we are doing $3 million.
34:54Whoa!
34:55Three million?!
34:56Wait a minute!
34:57Whoa!
34:58How did that just happen?
34:59Are you kidding me?
35:00What happened?
35:01We landed Costco Canada as well as Sam's Club.
35:02And Sam's Club.
35:03On the $600,000 in sales last year, what did you make on that?
35:06We were actually negative $100,000.
35:09We lost money last year.
35:11Why?
35:12And that was really due to the shipping costs were like 5X what we had budgeted.
35:16Because of COVID.
35:17Yeah, like we used to get a container in for, you know, $4,000 to $6,000,
35:21and, you know, a couple of our containers last year were $25,000.
35:24And the $3 million in sales, including the Costco and Sam's Club ordered,
35:28what do you think you'll make on that?
35:29This year we're going to make about $300,000.
35:32What is your margin to Costco then?
35:34The margin we made about 27% to 32% margin.
35:38So that's part of your challenge.
35:39So it was definitely a lot less.
35:40Yeah.
35:41Okay.
35:42What are you looking for help for?
35:43Because right now it looks like you are scaling really well.
35:47I understand you need to reduce costs, but what else are you looking for?
35:50I think mostly we need, you know, with the capital that we're asking for,
35:55to invest into more product.
35:57And we just need expertise.
35:58We've made so many mistakes.
36:00And we're expanding into a whole, we want to open up a whole licensing.
36:03A what?
36:04A licensing version.
36:05Did you say Damon?
36:06Oh.
36:07You're looking for $350,000.
36:08I would assume that's primarily for inventory.
36:09Yes.
36:10And you're trying to figure out the Costco order translating into a U.S. Costco order, correct?
36:14Because a lot of people test up in Canada.
36:15Are you sure?
36:16Yeah, not necessarily.
36:17Are you sure that you can make money off of that order?
36:18Yeah, not necessarily.
36:19I mean, we've learned a lot getting into the big box stores.
36:20Are you going to make money on the Costco order?
36:21Because they're going to ask you for some co-op advertising as well?
36:22Right.
36:23That and markdowns and everything.
36:24Yeah, we know we have the percentage of markdowns.
36:25And they have the right to return the last 15% of it?
36:26Yes.
36:27Okay, so we've all...
36:28Sounds like you've had returns and markdowns.
36:29Yes.
36:30Yes, we've been experiencing that.
36:31And that's impacted your 27% margins even worse.
36:32Yes.
36:33Yeah, guys, I think there's too much of an emphasis on sales rather than profits.
36:38Every entrepreneur gets really hyped about doing business with big box retailers.
36:41But the reality is, it's just going to take more and more cash like you found out.
36:46And so, you know, chasing the market, you know, it's going to take more and more cash
36:48like you found out.
36:49And so, you know, chasing the market, you know, it's going to take more and more cash
36:52and the market, you know, it's going to take more and more cash like you found out.
36:57And so, you know, chasing margin and profits is good.
37:02Chasing sales, in my mind, particularly in these uncertain days, is bad.
37:07And so, for those reasons, I'm out.
37:09Okay.
37:10Guys, let me tell you where I'm at.
37:11I'm looking at the business model strictly as an investment.
37:14Anytime it's $350,000, that's serious capital.
37:16I'm not even going to beat you up on the $3.5 million valuation, although I should.
37:20It's in my DNA to do that, but I'm going to hold back because I'm under anger management this year.
37:25So, at the end of the day, it's not investable yet because the business model isn't nailed down.
37:31My sense is to dump the low end completely, raise the prices 30%, sell only on your own website direct.
37:38Otherwise, you're never going to make any money.
37:40I'm out.
37:41Okay.
37:43Listen, I don't agree with what he just said.
37:45Your price point, I think, is excellent.
37:47And I have always found I like to make products for the masses.
37:51I like to make things where everybody can afford and enjoy it.
37:54But I think, for me, it's not something that I want to invest in.
37:57I don't invest in everything that I like.
38:00You're doing everything right, and I wish you good luck, but I'm out.
38:07I absolutely love this product.
38:10It brings me joy, and I love your price point, and I actually totally disagree with Kevin.
38:15I think you want a balance of wholesale and retail.
38:18Now, coming from a retailer myself who sells an omnichannel, I sell wholesale, I sell direct-to-consumer online, and I have my own retail stores.
38:26I think you can do it very thoughtfully.
38:29Now, some of the discount retailers, I will agree with Kevin, can absolutely kill you.
38:33So, being thoughtful about where you go, but I think you've got a home run.
38:38I'm going to give you an offer.
38:40I'm going to give you $350,000, but I don't think your valuation's $3.5 million.
38:45Okay.
38:46You lost $100,000 last year.
38:48So, I don't see the $3.5, but I do see that there's going to be great potential and opportunity.
38:53I'd like to give you $350,000 for 20%.
38:57And I think I can help you with that omnichannel, which I do think is going to help you build the business the way you want to build it.
39:03Okay.
39:04Awesome.
39:07Wait, wait, wait, wait.
39:08Hold on.
39:10Three sharks are out.
39:24Kendra has made an offer of $350,000 for a 20% stake in Kevin and Lori's sandcastle toy, Create a Castle.
39:35I think I can help you with that omnichannel, which I do think is going to help you build the business the way you want to build it.
39:41Wait, wait, wait, wait.
39:43Hold on.
39:45I like this, but Mark has a valid point.
39:48You know, this is going to be your personal decision, right?
39:52Do you raise the price, stay online, and, you know, net more?
39:58Or if you want to go big, do you bring in a shark and you go big?
40:02But if you go big, it's a huge cash suck.
40:06Massive.
40:07So I'm only interested in this for the licensing aspect.
40:11That's a personal decision, but I will give you the $350,000 for 25%.
40:17And licensing is the key.
40:19You know, look, I disagree with Damon.
40:21I don't think this is just a licensing play.
40:23And I don't see why you guys can't be the next big toy manufacturer.
40:27So that's what I want to do.
40:28I want you to dream big, and I think I can help you get there.
40:30By the way, when I say dream big, I'm talking about dreaming big.
40:35What do you want to do?
40:39Do you guys ever work together with the licensing?
40:43I would love to work with her, but in this area, I'm the most successful licensing guy up here.
40:48That's my area.
40:49And I'm a brand builder.
40:51I built my own brand, right, from the ground up out of my extra bedroom.
40:54So I'm going to interpret that for you.
40:55So there you go.
40:56They said no, they don't want to work together.
40:58What do you want to do?
41:00You can counter.
41:07You want to counter?
41:08Yeah.
41:09Would you be interested at 15%?
41:13I'd like to stay at 20.
41:14Okay.
41:15I'm going to let you make the call.
41:18She makes a decision.
41:23Do you think you need a license, or do you want to do a brand?
41:26Take the deal.
41:29I respect both of you, well, all of you guys anyways.
41:32Absolutely.
41:34But I think we're going to go with Kendra at the train.
41:36What the hell?
41:37I'm sorry.
41:38Let's make some sand castles together.
41:39I like it.
41:40I like it.
41:42I like it.
41:43So excited.
41:44Yay!
41:45Oh, my God.
41:47Congrats, guys.
41:48Well done.
41:50Thank you, guys.
41:52Sorry, Damon.
41:53Thank you so much.
41:54One of the reasons we went with Kendra is, from the get-go, when we walked in there, she
41:59was so excited about the products and totally was invested in us and, you know, talked about
42:03the beach and her kids, so we knew she would be the perfect fit for us.
42:06I love this product.
42:07It's very cute.
42:08I love it, and I'm going to use it with my kids.
42:11That's a masterly...
42:12Don't do it.
42:13That's a bad deal.
42:14You know, I just think they're a bad judge of character.
42:20I'm going to go try to build it back up.
42:23Go ahead.
42:24We'll wait.
42:33We'll see you next time.
42:34Bye.
43:03Bye.