Skip to main content

tv   The Profit  CNBC  October 20, 2015 11:00pm-12:01am EDT

11:00 pm
(man) the sharks are back in an all-new season of "shark tank," where hopeful entrepreneurs from across the country dream of a chance to secure an investment and gain powerful partners to start, grow, or save their business. if the sharks hear a great idea... we're gonna be in 3,000 stores. keep going. keep going. they're ready to invest, using their own money. my offer is $100,000... for 30%. and they'll fight each other for a piece of the action. i'm willing to give you $175,000. (kevin) whoa! mine just went to $200,000. (kevin and robert) whoa! but first, the entrepreneurs must convince a shark to invest the full amount they're asking for, or they'll walk away with nothing. it doesn't sell on a shelf-- correct. that's not good. i don't want to tear you to pieces on this,
11:01 pm
but i may have to. we do have the most advanced ebyte controller on the market. whoa! whoa! that's a disaster waiting to happen. it's sink or swim. i'll make you a millionaire within a year. (sighs) i can't believe i'm gonna say this. who are the sharks? they're self-made millionaire and billionaire investors who are entrepreneurs themselves. kevin o'leary is a venture capitalist who turned a $10,000 loan into a software business worth $4.2 billion. lori greiner, the queen of qvc, holds over a hundred patents and has launched over 300 products, grossing over a half a billion dollars in retail sales. daymond john is a fashion mogul and branding expert who grew his homemade clothing line into the globally recognized fashion brand fubu. robert herjavec, the son of an immigrant factory worker,
11:02 pm
is now a technology mogul who sold his first internet companies for over $350 million. and mark cuban, notorious billionaire entrepreneur and the outspoken owner of the dallas mavericks. ♪ first into the shark tank is aaron krause, who believes his product will make every day cleaning easier. hi, sharks. i'm aaron krause from philadelphia, and i'm known as the daddy of the scrub daddy, the cutest but most high tech scrubbing tool in the world. today, i'm seeking a $100,000 investment in exchange for 10% equity in the scrub daddy business. it's the greatest kitchen scrubbing tool you ever used, because scrub daddy completely changes its texture by just adjusting your water temperature.
11:03 pm
let me show you how that works. here i've got some hot water. here i've got some cold water. when i immerse the scrub daddies in the hot and cold water, a complete transformation occurs. now to show you that, i've got 10-pound weights. here, under the 10 pounds, it's soft and compressible, and that's like a sponge. that's for your gentle scrubbing application. but here... check that out. it's hard and firm. that's gonna be for heavy-duty scrubbing applications. we burned on brown gravy, tomato sauce, cheese, and mustard onto a glass stovetop and a stainless steel pan. i'm gonna take the scrub daddy, and you're gonna see... (scrubbing) it's just gonna attack right into that burned-on mess, scrubbing it right off. and remember, i'm just using water here. there's no chemicals at all. and it's gonna cut right through that. it won't scratch any of your surfaces but it will clean them beautifully. now scrub daddy's not really smiling anymore, so i'm gonna put him here in the warm water. and in just a couple seconds... voila. he's back to bright, fresh, and clean every time. sharks, that's not just another smiling face.
11:04 pm
you put it on your hand, you can get to the bottom and clean the sides in one move. and that smiling mouth, that cleans spoons, knives, forks, spatulas, even large serving spoons on both sides at the same time. sharks, with your help, scrub daddy will be scrubbing and smiling in every kitchen in the world. whoo! (daymond and lori) wow! scrub daddy! i've never witnessed a live infomercial. that was fantastic. that was incredible. do you have samples? i do. (lori) where are you selling this now? thank you. well, currently we have it in five supermarkets in the philadelphia area. we also sell it on our web site. thank you. i've been on qvc three times over about three months. (robert) and how'd it go? fantastic. they've invited me back over and over. and every time i go on, they reorder 30% more than the last time. so scrub daddy is hummin'. (robert) and what were your total sales--qvc, wholesale? just north of $100,000, only in four months. do you have a patent on this?
11:05 pm
i actually have a patent. i have two more pending. we have the trademark. we have domain name. okay, aaron, what do you need the $100,000 for? what i wanna do is set up an independent manufacturing facility with automated equipment. why do you need to go into your own facility? the biggest problem is, i'm on their time schedule. are you saying that you could be making more revenue if you're 24/7 making scrub daddies? the way qvc's going and we're just about to launch in a whole bunch of stores, we're gonna need that capacity. and i have 18 years experience running a manufacturing plant that runs 24 hours a day. i know exactly what i need to do to make this thing really efficient, and i'm looking to add a strategic partner who can open this up into the retail stores. i'm only in five supermarkets. that's it. what's your cost? the cost to make one's about a dollar. what are you selling 'em for? about $2.80. wholesale? wholesale. this needs to be in every supermarket, drug store, walgreens, cvs. (kevin) it's so expensive. mrs. schlubinski goes to the store and picks this off the shelf and says, "hey, it's a piece of foam with a smiley face on it. it costs 2 cents to make in china."
11:06 pm
that's what she's thinking. 'cause a brillo pad, which is traditional product, is what... a 20%-- you're comparing it to the lowest end of the lowest end. you take it up to the highest end, talk about the--the ones like dobie pads or other pads out there that are, you know, brand-name. scrub daddy, i-i think you've done a great job today, but i don't know if it's gonna work in retail. i don't--i don't buy in to that vision. just in the packaging, i just don't know if i see the difference. robert, i-- it doesn't sell on a shelf-- correct. but if you put it in display shippers which we've built-- these beautiful cardboard display shippers-- and it communicates the message to every one of the customers. it sits on the end cabin. you're gonna have to pay for those things. well... it's hard to get them, even if you pay for them. great job today, but i-i don't see the retail vision. i'm out. i understand. i like the product. i think you're--you're doing great things. you're doing this the exact right way. but when i hear "qvc"-- no disrespect to lori-- when the company's sales are completely dependent on qvc,
11:07 pm
that's a disaster waiting to happen. well, i-i've got 3,000 stores lined up right now. we're gonna be in 3,000 stores. i understand, but even... okay, put aside qvc. you're still a 1-product company. right? not for long. we've got scrub mommy. we've got scrub baby for doing baby bottles. i've got a holder that sits it on your sink and it's got drains in the legs. you don't understand who you're dealing with. (sharks laugh) i am--i am the... i'm not doubting the scrub market. i'm not doubting you are the scrub daddy, but i'm not a scrub pimp, so i'm out. that hurts, mark. i wanted to work with you so bad. mark, qvc does over $8 billion in sales a year, and i've done over $500 million myself. yes, you have, and you rotate product in and out of there, and once those products are out, they're out. how about this deal? $100,000 for 50%? (mark and robert laugh)
11:08 pm
let's start the bidding there. all right, you're out. (chuckles) you know, i'm somebody who could paint any picture, and i think that lori is a vicious, back-stabbing shark. that's all true. but sometimes i love her as well, because she is the qvc queen. so i'm offering $50,000 for 15%, if you can raise the rest from lori, and if she wants to do business with me. well, here's the thing. ♪
11:09 pm
aflaaac. aaaa-flaaaac. someone's sandbagging. i'd be tired too. he paid my claim in one day when i got hurt.
11:10 pm
one day? serious hustle. serious duck. in just one day, we process, approve and pay. one day pay, only from aflac. ah! be part of the conversation. queen. in a good way.
11:11 pm
with all the latest episodes of your favorite dramas, xfinity on demand let's you catch up and keep up with fall tv. don't get voted out of the tv gossip. be part of the conversation. with all the latest episodes of your favorite reality shows, xfinity on demand let's you catch up and keep up with fall tv. so i'm offering $50,000 for 15%, if you can raise the rest from lori, and if she wants to do business with me. well, here's the thing. you've heard me say before i can tell instantly
11:12 pm
if it's a hero or a zero. and i think what you've got here is a hero. no offense, daymond. i don't need you. you don't. my offer is $100,000... for 30%. i will get you into infomercial right away, and i'm pretty confident that we could get this into all retail stores across the country within literally weeks. (kevin) i'll tell you what i'll do for you. i'll give you $100,000. we'll never agree on what percentage i should get, so i'm gonna change the model completely. you're gonna keep the whole company. but i wanna be your financier. i want you to give me 50 cents on every unit sold until i get the 100k back. then it drops to 10 cents in perpetuity. (mark) you just less increased your cost of goods sold by 50%.
11:13 pm
nothing, right? why give up 30% of your company? (daymond) just to sweeten the pot a little bit, i'm gonna give you $150,000... for 25%. whoa. (robert) what are you gonna do? i'm changing my offer, actually. $100,000 but for 25%. the experience, the connections, everything that i have... it will be successful. i am partnered with the best of them. why give up any part of scrub daddy? think of the relationship you have with this sponge. (laughs) you're selling this thing out, and it's gonna cry. it won't be happy anymore. qvc, infomercial, and into every single retailer worldwide. that's the power of what we can do just by one infomercial spot. i can get you there. i know. wait. wait. i'm not done. he knows that already. we've heard it already. (daymond) we've heard that already. tonight, i want the answer to one question, all right?
11:14 pm
do you think 25% of the equity in your company is worth more or less than 10 cents a unit in perpetuity? this is-- (lori) and he's all talk. where's he gonna take you? it doesn't matter. ask-- it does matter! connections are everything in-- 'cause you can take-- you can take-- you keep 25% of this business, which may sell 10 million of these, and you keep it all for yourself. (lori) but you're gonna be keeping nothing because he doesn't know how to get this out there... you mean, "you haven't had any success." fast and market it correctly. "you're an idiot. you don't know what to do." i know what to do. exactly! (daymond) i just did a half-a-billion-dollar deal with walmart. half a billion. so i understand retail. but that doesn't mean anything. what product is it? okay, i-i'd like to review the offers. they keep changing. wait a second. let the sponge speak! and it's saying... lori. "go with kevin." aaron, they're like children up here. it's awful. let's recap where we are. yeah, let's recap, please. $150,000 for 25%... okay. from daymond. kevin is-- $100,000 for no percent and a ti tithe of 10 cents. you keep all the equity. lori is offering you
11:15 pm
$100,000 for 25%. i offered $150,000 last time. whoa! hang on! i-i didn't hear that. you said $100,000, lori. oh, well... i changed my mind. $150,000 for 25%. i'll make you a millionaire within a year. (daymond) so mine just went to $175,000. (kevin) whoa! it's up to $175,000? yeah. mine just went to $200,000. (kevin and robert) whoa! the good news is... i just made you an extra $100,000. i'm out. i wanted to stick it to her. ouch. wow. i'll drop the 50 cents down to 25 cents, until the 100k is recovered, and then go to 10 cents. will you go to 5 cents?
11:16 pm
7.5--it's a deal. okay, aaron, you've got two offers on the table. what are you gonna do? you have to make up your mind right now. you don't see the benefit of having me as a partner. i never said that. you need to tell me right now whether you're going with me or not or i'm out. i'm here for you. i think your deal is awesome. um, the equity amount is--is too much. would you consider coming down to 20%? you know what? i will. i'll go to 20%. we got a deal. we got a deal. good! all right! way to go, aaron! whoo! congratulations. thanks, lori. i'm so excited. you are dead to me and the sponge is dead. (laughs) thanks, guys. scrub daddy, you suck.
11:17 pm
that is awesome! got a deal with lori. it's--it's a dream come true. it's absolutely a dream come true. i don't care how much money you have. i am so satisfied to know that you lost an extra $100,000. i know you'll get me back, but i just... it's gonna be gangbusters-- huhit in infomercial. (robert) good deal, lori. great deal. ♪ in season three, hanna and mark lim sealed a deal with mark cuban and robert herjavec for their sippy cup company lollacup. thank you. good job, guys. let's see what they're up to now. ♪ (girls giggling) (mark) our experience on "shark tank" was really life-changing for us. before "shark tank," we had a lifetime sales of $40,000 out of about 50 stores. all right, girls, drink some water. but since "shark tank," in just a short few months, we have $300,000 in sales in over 300 stores. could you give me about 25 more of those? we used to do all the fulfillment and assembly in our house.
11:18 pm
you can imagine how crowded it got and how--how testy everyone got. (hanna) even with all our friends and family, we were maxing out at maybe making 800 cups a day. after "shark tank," since we got a facility to do our assembly for us, they can do about 3,000 to 5,000 cups a day. (laughs) hey! nice to see you! hi! great to see you! mark, great to see you. robert, so good... (hanna) i think we're shocked every day by the level of attention that we get from both mark and robert. i have those monthly sales figures. let me beam them to your t-mobile device. (beeps) wow. these are great numbers. let me send them to mark right away. the future for lollacup is fantastic. we're looking at national distribution, expanding the product line. i mean, this is gonna be a multimillion-dollar company very soon. ♪
11:19 pm
life's all about learning.... asking questions.... having new experiences. are you ready? the key to a happy satisfying life is to always be curious. jibo, how are you doing? i'm great! every moment is our moment. are you enjoying this? it's been such a whirlwind. i want to get to know people and understand their ideas about everything. so you can too.
11:20 pm
11:21 pm
i can offer you no interest sittifor 24 months.oday thanks to the tools and help at experian.com, i know i have an 812 fico score, so i definitely qualify. so what else can you give me? same day delivery.
11:22 pm
the ottoman? thank you. fico scores are used in 90% of credit decisions. so get your credit swagger on. go to experian.com, come a member of experian credit tracker, and take charge of your score. here's a good boy. that's so good. let me get your paw through. i'm meg... and i'm matt. and we live in denver, colorado, with our family. let's go. (barks) give me a high five. we call quimby "the bear" because he growls like a bear. (growls) and we call laika "the rat," because he has an unfortunate name. he's a rat terrier. (matt) come on, guys. let's go outside. (thud) (laughs) we don't have children yet, so the bear and the rat are very much like our children. we do everything with them. we go on walks, we take them on car rides, eat with them, sleep with them. they're a huge inspiration for why we started our company. after sharing a treat with our dogs, we noticed that they would usually get sick. so we wanted to make something that was not only fun but beneficial to their digestion, as well. and unlike anything that's on the market.
11:23 pm
who wants treats? come here! there's a huge market of pet lovers looking for the best for their best friends with fur. is that good stuff? is that delicious? we know we have an awesome product that millions of dog lovers would love to get their hands on, and we need the sharks' help to get it out there to those people. oh. ho ho ho ho ho! aw! aw. that is the cutest dog i've ever seen. why is it every dog is the cutest dog you've ever seen, robert? hi, my name is meg meyer, and this is my husband matt. and this is quimby, a.k.a. "the bear," and laika, a.k.a. "the rat." and we are the bear & the rat cool treats for dogs. we're seeking $125,000 in exchange for 20% equity in our company. ice cream is not usually good for dogs. it upsets their stomach, and the milk and sugar is too rich for them. i wanted to come up with a treat that was not only beneficial to their digestion,
11:24 pm
it actually supported their immune system. people are forming very special, strong bonds with their animals. i've had the bear for 14 years. so if i'm enjoying an ice cream treat, he's gonna enjoy an ice cream treat. dogs love our fro-yo. but don't take our word for it. take their word for it. (chuckles) our introductory line comes in three awesome flavors-- (laughing) we have our bacon peanut barker, our banana peanut barker, and our choc 'o' not. now more than ever, consumers are looking for natural, healthful treats for their dogs. we're certain that an investment from the sharks would not only strengthen our business financially, but we're also super-excited about the expertise you would bring to the company to make the bear & rat unstoppable. now who has questions? i have a question, meg. i'm sure you do. (laughter) uh-oh. get--get ready. no, no. i'm being pragmatic. the money. you're building a brand around the bear and the rat. yes. the bear is 14. he is. he's gonna be snuff city in 24 months. do you have another bear backup? we--we love the bear.
11:25 pm
it'll be part of our story, and part of his legacy, and--and we'll figure that out. so it's like ice cream? it--it's... it is human grade. so would you like to try it? no. (laughter) bacon peanut? that's our carob flavor. that's fat-free. banana? you think i should go bananas? i think you should go banana. (laughter) perfect. so they have no added sugar whatsoever. (chuckles) don't do it. don't do it. don't. so it's not like ice cream that you're gonna expect. it's bland, but it's just enough flavor to get their tail wagging. come on. it's not that bad. it has natural banana sugar in there. oh, my god. (laughs) oh, he tried the bacon! (laughter) was it good? ohh! that was awful. so guys, let me get down to this. yes. you know, i'm the one that sits up here between the bear and the rat... (laughter) and i want to ask, do you have distribution right now? yes. it's regional, so... regional. we're from colorado. we've been on the--the market for a little over a year. (laughs) in four months after we launched our product, we were on the shelves of colorado whole foods markets. so we are just regional in the rocky mountain
11:26 pm
for whole foods. one of the really cool things that happened to us several months ago is petco called us out of the blue. they wanted us to fill their 44 unleashed by petco stores. and... it's all-natural nonfat yogurt in it. and it has organic peanut butter... (laughs) organic bananas, and the bacon is actually nitrate-free bacon. (drumroll) (daymond) don't drop the dog, robert! (cymbal crashes) (laughter) oh, my god! forget 24 months. robert's killing the rat! (laughter) it's okay, buddy. it's okay. we need another dog! (laughs) come here, buddy. he's very athletic, thankfully. (growls) i'm so sorry. oh, don't growl. it's okay. he's gonna have to make an offer now. all right. so let's get back to business. let's get back to it, yeah. let me walk you through the potential here. we've made--in a little over a year, we're at $30,000 in sales. yes, i know that's not an astronomical number. we did go to the largest natural trade show early this year. had an excellent response. did you get orders at that show? no orders. no orders.
11:27 pm
but we did cultivate relationships. that's not good. well, i know. the thing is, with a frozen product, it takes a little bit more time to grow that distribution network and to make sure-- is that an excuse for no sales? "it takes a little bit more time"? it's tougher than that, because there's only-- there's only so much freezer space... this is true. in--in any location. they fight over it. this is true. and they fight. so how do you overcome that? people look at our packaging and become overjoyed by it. nobody looks at packaging and becomes overjoyed! (laughs) i don't know. i'm pretty happy when i look at that package. (kevin) so, megan and matt, if you know that you're coming into the shark tank, and you're gonna put a value of $625,000 on a business that does $30,000... yes. did i hear the answer of why you felt it was worth that much? um, okay. so... goodwill. goodwill, uh, valuation. (laughter) i know. i know. forget it. just goodwill. megan, how do you think it's going in the shark tank? (laughter) when all the investors are laughing, that's not good. and it's a fun product. it really is.
11:28 pm
guys, let's speed this up. why don't you tell me what i'm gonna say next? you're out. thank you. your valuation is 21 times sales. right, right. even the rat's unhappy with that. (laughter) oh, no. he's quite happy. he's out. so what's the reason you would ask so much? we work with, um, an advisor. he's a director of operations at a natural foods company. but he's not writing a check. i know. people love their dogs. i mean, they will go to the ends of the earth. i mean, myself and meg included. you know, there's a piece of advice that i like to relay to entrepreneurs. yes. never take advice from somebody who doesn't have to live with the consequences. right. right. right. you guys do, and the consequences of misvaluing your company coming into the shark tank is that amount. right. well, we're willing to negotiate the... (laughter) the category, to me, is too small. i don't think it's investable. i'm out. well, i love both of you. i mean, i think you are a fantastic couple.
11:29 pm
i know there's a market for treats for dogs. just give it a little bit of time. keep thinking. keep pushing. i think you'll make it. but for me as an investment, i'm out. matt, you know, you do have great packaging. i love the name the bear & the rat. i mean, it makes me laugh. i can't say it without laughing. i think you guys are good operators. i love the whole shtick. love the dog. (matt and meg laugh) i can't get beyond the value. i'm out. thanks. thank you. hey, matt, before you go, can you get laika to do a trick? of course. little high five. high five. (laughter) there you go. there you go. thanks again. thanks, guys. (matt) thank you. (lori) thank you. robert, it looked like you were chasing a greased pig. poor little dog. what the hell were you doing, robert? (laughs) like this... come here. you know what?
11:30 pm
i was so tired of the four of you, i thought the dog would enjoy some company. ♪ well, right now you can get 15 gigs for the price of 10. that's 5 extra gigs for the same price. so five more gigs for the same price? yea, allow me to demonstrate. you like that pretzel? yea. 50% more data for the same price. i like this metaphor. oh, it's even better with funnel cakes. but very sticky. get 15 gigs for the price of 10. and now get $300 credit for every line you switch. now at at&t
11:31 pm
11:32 pm
11:33 pm
schinske with an innovation for personal transportation. (laughter) oh, that is so cool. (laughter) hey, sharks, i'm daniel wood... and i'm david martschinske,
11:34 pm
and our product is the first and only electric self-balancing unicycle, or sbu for short. we are asking for $300,000 in exchange for 10% equity in our company. so how does it work? basically, there are three rate gyros, three accelerometers, a powerful 32-bit processor running p.i.d. loops, fuzzy logic, and kalman filters, calculating the exact angle of the sbu. the motor is then driven forward and backward in a locked, anti-phase p.w.m. configuration. keep going. keep going. don't worry, sharks. i speak nerd, and i can provide the translation. what daniel's trying to say here is that the sbu has some really smart sensors inside of it similar to the segway, that will always keep you balanced. why don't you show them how it works, dan? the hardest part of a regular unicycle is the pedaling to keep you balanced. but you don't have to worry about that at all with the sbu. it does all that for you with no pedaling. the sbu's motion is intuitive to your movements, making riding feel easy and second-nature. and it's so portable, you can put it underneath your desk at work. and because it's hands-free, if you're like daniel,
11:35 pm
you can program a t.i.-85 graphing calculator. what a nerd. (laughs) (laughter) even a nerdy laugh. the sbu is capable of speeds of 15 miles per hour, and going ten miles on a single charge. what sharks are ready to ride nerdy with these two guys? nerdy. (laughs) (robert) can i try it? you want to come see how it feels? yeah. we got a helmet for you. okay. here's how it works. you turn the power on... okay. you see it--it's balancing forward and back, so you put your hand here, you can feel it. so you just lean it forward... lean forward. to get more speed, and you lean it back to slow down. whoa! you can feel it moving. whoa--whoa. all right, hang on. i gotta get this. it takes about 20 minutes to learn, usually, in a large parking lot. i gotta try it. (robert) all right. come on up here. it's a lot harder than i thought it would be. in my early years in the circus... (laughter) just lean it forward to go. that is very cool. lean it back to slow down. (robert) let him go! (daniel laughs) i can turn. very cool. how much are they? retail, $1,800.
11:36 pm
i want one. but i want a deal. (laughter) make a deal, we'll give you one for free. i think i could get it. i think i could get it. and you've been selling them for how long? we just finished tooling up our factory overseas. first 100 units are finishing up this week, and we've already sold all of them. what was your cost? $350,000 for this first run. and you sold the first 100 at $1,800? yeah, just off of our web site. daniel, do you know what happened to, uh, one of the founders of the segway? he had an accident. yeah. he hopped on the segway, and it fell into the river, and he drowned. oh, my god. why didn't the segway work? why didn't people buy it? the segway was hyped like no other product. i'm not gonna talk bad about the segway, but you can't do this with the segway. the nail in the segway coffin was banning it from the sidewalk. have you gone into that issue and asked anybody at the city level, would you ban this device from my city? they're not nearly as big. i don't think they're gonna have a problem. 'cause it's single-wheel. it's not wide. we've been stopped by many officers, only because they love the product. they ask the same questions you guys do.
11:37 pm
"when--where can i get one? they're cool." i need to feel passionately about whatever i invest in. i love the two of you, but i don't feel passionate about this product. for that reason, i'm out. you know, i was interested for a second. i was unaware that the segway business model doesn't work. is that--that true, robert? horrible. horrible. one of the biggest losses in terms of investment. i am not willing to take this risk. i'm out. a difficult decision. i hate those, because i'm very interested. i see a lot of the merits. but i don't know if it's worth $3 million. well, let us tell you about our--our future sales. a very conservative number is selling 1,000 of these in 12 months, which puts us at $1 million profit. you could do a million in profit in the next 12 months? yeah. oh, yeah. how are you guys gonna do quality assurance when it's produced overseas? 'cause if--if you run into any manufacturing issues at all, you're toast. we visited the factory. we've already worked with them.
11:38 pm
but having them tell you, "oh, we're good" is a whole lot different than them actually delivering the quality that you expect. i mean, look at apple. they went through the same thing, right? brilliant design. but i hate trust--trusting overseas manufacturing. and so for that reason, i'm out. okay. for me to give you a $3 million valuation today, i have to believe in the mass transport market. and i've seen other people fail in that. i know you're different. well, before you say you're out, we do have the most advanced ebyte controller on the market in here. i designed the circuit board. i embedded a lot of technology that's very proprietary to us. oh, i didn't realize that. but do you have patents? we have patents filed, yes. filed. we're already talking with e-bike manufacturers who want to license this technology from us. in fact, we've already licensed it to one other company, and we're receiving royalties on that right now. wait a minute. you said-- you didn't say that before. how much royalties are you receiving?
11:39 pm
$25,000 in royalties. in how long? about three months. daniel, incredibly impressive. you've definitely got something there. i buy the technology, but not at a $3 million value. i mean, i'm happy to offer you $300,000 for 33%. i would join robert if you take me into that offer. i just spent $5,000 ordering an electric bike. i think that market's gonna be absolutely huge, and it doesn't have this technology in it. are there any other offers? anyone else wanna... you're playing a very dangerous balancing act right now. you have two sharks interested when honestly, i think we were all gonna be out. i don't think you should waste much more time.
11:40 pm
(chin straps click) let's do it. yeah, let's do it, sharks. all right. congratulations, guys. congratulations. come on, guys, get excited about this. whoo! there you go. the technology's gonna make money. we're gonna make a lot of money. congratulations, guys. man, that was awesome. we just made a deal with two of the biggest nerds on "shark tank." we're gonna make a lot of money, and we're gonna put an sbu in every cubicle around america. nerds rule! ♪
11:41 pm
11:42 pm
is it the insightful strategies and analytical capabilities that make edward jones one of the biggest financial services firms in the country? or is it 13,000 financial advisors who take the time to say thank you? 'night jim. gonna be a while? i am liz got a little writing to do. ♪ it's why edward jones is the big company that doesn't act that way. bill's got a very tough 13lie here...... looks like we have some sort of sea monster in the water hazard here. i believe that's a "kraken", bruce. it looks like he's going to go with a nine iron. that may not be enough club... well he's definitely going to lose a stroke on this hole. if you're a golf commentator, you whisper. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do.
11:43 pm
this golf course is electric...
11:44 pm
i'm shelton wilder. i love fashion. i currently work as a fashion stylist. i want to get a few looks for you. my clients will come to me, and i will put their entire look together. their dress, their shoes, their jewelry, the entire thing. oh, it's really cute. okay. i came up with my product when i was styling and managing a boutique, and i needed this for my clients, and so it evolved through sheer necessity. my product is the perfect piece to help bring runway fashions to real life. and it's a must-have for every woman. and literally, you'll wear this and wonder how you ever got dressed without it. to get to where i am today, i've overcome a lot. there's been a lot, a lot of struggles. this is my second chance, so i have a lot riding on this. i have the pattern here that i need to send to you. my business is a work in progress, and currently, i do not have the inventory to sell it. and if i don't get an investment from the sharks, i don't know if my company will survive.
11:45 pm
♪ hey, y'all. my name is shelton wilder, and i'm really excited to be here. and the name of my company is shemie. the shemie. i'm seeking an investment of $60,000 for 20% of my business. okay. so when did we give the slip, the slip? i don't know. but i am bringing it bk, but in a modern way. this is not your granny's slip. no. not like this. gross. (chuckles) my design is simple, elegant, yet flirty, and is an every day wardrobe staple for every woman and every different body. now the reason i came up with this is because i'm a fashion stylist. i love fashion, but way more importantly, i love helping women look and feel amazing. that's my life. i am wearing the scoop, which i like to call the "meet the parents." so you're not showing too much cleavage.
11:46 pm
no! that is inappropriate. y'all know th i am southern. okay, next, the shemie is the perfect layering piece. and deborah has it layered here with leggings. because remember, guys, leggings aren't pants. no, no, no. that's rude. now katie's wearing this cute little dress, but it's very short, so she has on the shemie wrapper, or more accurately called "the paparazzi protector." (laughter) for the... (laughs) for those nights out getting in and out of the car without any wardrobe malfunctions. yeah, you know who you are. okay, sharks, i need your help to give to women exactly what they've been missing in their life-- the shemie. now i have the passion and the positron, so who wants to swim on this fun journey with my shemie and me? the positron, huh? (laughs) whoo! positron! so, shelton, it's not a fashion piece? it's something to wear underneath other clothing? yes, it's a foundation piece, but not a shaper. if you are a larger woman, is this going to accentuate your largeness,
11:47 pm
or diminish it? the point is, is that there's so many shapers on the market-- things that squeeze you, fat dislocators. but these are made to be comfortable. you know, it's not always you wanna squeeze into something and not feel great in that. tell us your background, shelton. you know, you said you're a personal stylist. i have been in fashion since i was 16. i was a buyer, then a manager. i ran this amazing store... where were you a buyer at, and where were you a manager at? at this store in charlotte called, uh, capitol. like this blouse is from there. this was, like, a $1,200 blouse. how rude is it to go and buy something like this and then sell it at your boutique and not have an underpinning? incredibly rude. and so i have been at nordstrom now. and so it's like i wanted to go to all the different markets... you're in nordstrom with the product? that's the exciting news. i have been a stylist at nordstrom, and i've developed amazing relationships. and they have the product in seattle right now, and i have kind of a verbal agreement that we'll be carrying it there. a verbal agreement? a verbal agreement. i don't have the signed paper. but i just started the company, you know, i--six weeks ago.
11:48 pm
six weeks ago? do you have any sales? okay, with the sales, i have ten stores that have soft orders. and then i also have five other-- what's a soft order? meaning, like, they're definitely placing the orders. but-- so it's a long way of saying you have no sales. you're offering 20% for $60,000 to any shark that's interested. that means you've valued this business at $300,000. hundred... you've sold nothing. make a case, because i don't want to tear you to pieces on this, but i may have to. i am such a hustler. like, i don't think you understand. i know maybe i'm presenting like southern belle. no. i will get out there on the streets. like, i will get to stepping here. and i love helping women look and feel amazing. so do i, every day. okay, good. well, then you need to help me here! come on! yeah, but my problem is the valuation's insane. you have no sales. you have no sales that have generated any profits. look... (sighs) it's just that to tell me it's worth $300,000 today is problematic because i'm a disciplined financial investor. i want some evidence that i'm gonna make money.
11:49 pm
okay. so for that reason, i'm out. thank you. did you sell any to all those customers that needed something that was right? absolutely. they're so excited. they want this product again. they're like, "i've gotta have more of these." so technically, you have sold some. how many have you sold that you were just making on the side? oh. well, recently? i mean... like, but--i had had some with a--that were similar in my company that i worked with before. and so i just--i just-- what do you mean you w-- you--you had a company you owned before? company that i worked with before. you worked with somebody who made this type of item? this--this is my--this is my design all--all along. so you stole this-- but they were making and selling it? i'm lost here. yes. you came up with the idea here? there was a similar company that i had with my best friend. so you knocked off your former company for your design? no. no. (robert) you gotta--you-- we're all... we're totally lost. i know. i know. reboot. how much did you sell of the similar product
11:50 pm
together in that company? $150,000 in 18 months. like, we were selling everywhere. and why did it stop? so as we're all asking you, "what have your sale been?" technically, you could've said, "$150,000 in the last 2 years." okay. yeah, what happened to that company? why'd you stop? why did you stop? well.. she had a family emergency and she moved home. her--her father passed away. so-- but why didn't you continue the business? because you must've built some brand equity. right. couldn't you continue under that name? i-i couldn't continue under that name because i was-- i didn't have the capital to do so. (lori) if a company's successful and you have a partner, just because a family member passes away, it doesn't mean you shut down the whole company. you had all these people that loved it and everybody wanted it. i think all of us up here are struggling a little bit... (robert) yeah. with understanding why, if it was a successful business... (sighs deeply) should i say it? okay. you did a $150,000 worth, why you would stop. i mean, are you holding out telling us something? well, i... out with it. um, during that time...
11:51 pm
(sighs) i can't believe i'm gonna say this. ♪ if you qualify for a sittingham's card today i can offer you no interest for 24 months. thanks to the tools and help at experian.com, i know i have an 812 fico score, so i definitely qualify. so what else can you give me? same day delivery. the ottoman? thank you. fico scores are used in 90% of credit decisions. so get your credit swagger on. go to experian.com, come a member of experian credit tracker, and take charge of your score. the indomitable nature of the human spirit. that's what's happening here.
11:52 pm
because there's something out there something better and bigger than here and with 80 thousand people to help you realize your wildest dreams... we'll get you there. because there is no stop in us. or you. only go. you wouldn't take medicine without checking the side effects. hey honey. huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck.
11:53 pm
11:54 pm
11:55 pm
are you holding out telling us something? well, i... out with it. um, during that time... (sighs) i can't believe i'm gonna say this. (voice breaking) i was going through a lot of... struggles, and, um... so now i... i cannot believe this. i've been sober two years and eight months. and so i kinda went through a big change in my life. and went back to being a stylist and got an amazing job within a company 'cause i-i didn't have the capital-- (lori) we appreciate your being honest with us about that.
11:56 pm
yeah, i just-- and there's never anything to be ashamed of. and i appreciate very much that you've just shared that with us and that we understand what happened. yeah. shelton, here--here's the part that i'm-- i'm still a little confused about. okay. the hardest thing in business to build is a name. mm-hmm. you and your friend start this business. it's successful. what happened to that business? i wanted a fresh start. it wasn't great memories for me. sheltini is an alcoholic beverage... (laughs) and i'm not one anymore. that was the name of the other company. so it's kind of for me, that's what--like, it was not good. (sighs deeply) that--that was it. did you go bankrupt? i-i went bankrupt personally. here's what happens in the shark tank-- the truth always comes out. it's impossible to hide in here. i wasn't trying to hide that. why didn't you just bring it all out right up front? hi! my name is shelton wilder. i went bankrupt and i went to rehab. might've worked better for you because we understand hardship
11:57 pm
and we understand people getting back up. and in some ways, investing in somebody that's tasted that sting is better than one that never has. shelton, i think kevin's out of line. i-- no, he's not. this is business, and the truth always comes out. kevin's out of line. what's happened to you in your personal life, that--those are your challenges. okay, so you've had this ready to go in your mind, but you just had to get your act together... yes. before you could hit the ground running. okay. absolutely. (daymond) so... now that we've gotten to the bottom of things, as we usually do... (laughs) (robert) wow! uhh! i feel--i feel like we just went through the 12 steps. no, i-i-i love it. no, you understand what the problem was. i appreciate your time and respect you guys so much. like, it's huge. i mean, it's an honor to be here. (voice breaks) sorry. i just... i'm really excited... (sighs) because... i've worked really hard to get back to this. and, um, gosh, i believe in this product so much.
11:58 pm
i could--i could not get dressed without it. i literally couldn't. and that's the passion that i have for this that i will bring to every woman across america. i believe in this so much. like, this is my baby. shelton, we all appreciate your passion. yeah. and i think everybody here would commend you for picking yourself up in life and starting again. 'cause that's what life is all about. would you wear one? do you feel like-- i would. do you feel like it's a-- something that's kind of missing out there in the market? i like it and i think that there is a need for it. i think the biggest problem is there are so many things out there that are similar. they might not be exactly like yours. if you just keep doing what you've been doing, put all that great drive into getting this out there, you will make it without any of us. so for that reason, i'm out. okay. you know, as lori says, everybody deserves a second chance. i have absolutely no problem with your background. putting that aside, my challenge is,
11:59 pm
you've been doing it for six weeks. it's just too early. i wish you all the best of success in life. today, i'm out. okay. thank you. i--you know, i'm not big into women's fashion. mm-hmm. um, but it's easy to see that it has a lot of potential. so i wish i could help you but i can't, and for that reason, i'm out. okay. thank you. thank you. i think your passion is amazing. i think that you--you went through some challenging times and you're gonna even be better now because you know what you faced, right? yeah. six weeks of business and valuing the company at $300,000 in an area of fashion that i don't know... unfortunately, i'm out. well, thank you, guys, for your time today. i really appreciate it. thank you. good luck. (mark) thanks, shelton. (daymond) good luck. (robert) wow. we did go on a journey with her. (kevin) to nowhere. i am who i am, and i have no secrets. i think these challenges are gonna be, like,
12:00 am
the biggest assets for me, so... i feel really grateful for the experience and i'm excited to keep moving forward. (man) the sharks are back, looking for the best products and businesses america has to offer. if they hear a great idea, they're ready to invest, using their own money... why would i ever give you money at a value that guarantees i'll never get a return? here's the thing. it's a $54 billion industry. the biggest players-- every guy comes in here and says that. and fight each other for a piece of the action. what's it gonna take? twice the money you came here looking for. before you make a decision, i'm gonna try to change his mind. but first the entrepreneurs must convince a shark to invest the full amount they're asking for, or they'll walk away with nothing. the waste products can be $96 billion in gold. gold? gold.

141 Views

info Stream Only

Uploaded by TV Archive on