tv The Profit CNBC September 20, 2016 11:00pm-12:01am EDT
>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ i'm an active-duty officer in the united states army. currently, i'm a captain with the army corps of engineers. in 2007, we were deployed to iraq. i did 15 months overseas. it was a very rewarding experience being at the tip of the spear, actually accomplishing missions. and i really believe that we made a difference. man: let's go! for me, physical fitness is very important not only for my career in the military,
but also just to stay healthy and the best that i can be for my family. i was doing a lot of training to stay in shape. keep going, keep going. when you do high-intensity workouts, you need the right gear to protect you and prevent injury. man: how many orders do we have to do tonight? drake: 100. as usual. [ laughs ] this company is growing faster than i ever thought it would, and we cannot keep up with the demand. we believe in this so much that my husband left his full-time job so that he could take on the company full time. push, push, push! we need to form a strategic partnership with a shark. i know that applying the years of dedication and determination that i've learned in the service can really make this dream a reality. hi, sharks. my name is ashley drake,
and you -- all of you -- need to get a grip... ...the natural grip. i'm seeking a $100,000 for 20% equity in my company. do you want your hands to look like this when you get done working out? no! nobody does. and my product prevents this problem. yes, there are other hand-protection devices on the market. they're leather, they're cloth, they're nylon, and they don't work. and do you know why? because they slip off your hands, they're bulky, and they hinder your performance in the gym. not the natural grip. we are the only custom hand grip on the market. our grip is based off of your ring-finger size. and we are the only reusable tape grip. so let me show you how it works. one of our sponsored athletes, danielle sidell, will now perform the clean and jerk. she has just 165 pounds on the bar, no big deal.
but a lot of people don't like to wear grips during this because they feel like they cannot have proper control of the bar and get it over the head safely. man: wow. danielle doesn't have that problem. greiner: wow. there you go. good job, danielle. impressive. so now she's going to do some bar muscle-ups. now, bar muscle-ups are a very complex movement. what happens is that their hands start to rip and tear open so they have to drop from the bar. not danielle. in fact, she's able to go from the bar muscle-up straight into kipping pull-ups without any problem. that is not typical. yeah, you think? why? because her -- [ laughs ] well, because of her hands. that's why. because they're protected, and she feels safe on the bar. so i have some custom grips for you. are you saying if kevin put that on, he could do everything she did? i mean, i'm not guara-- you know what i want you to do? go beat him up. [ laughter ] robert, you have the custom danielle sidell natural grip. lori, pink.
i mean, what female doesn't like to work out in pink? kevin, this is the color of your soul -- black. [ laughter ] oh, yeah. daymond, back to your fubu roots -- red and black. and mark -- i mean, should i say it? thank you. yeah. herjavec: ashley, how do you put them on? you just put them over your ring finger and your middle finger. and then how does it attach? is there a strap that goes -- well, you can attach it with our custom natural grip goat tape, which we'll sell you for $7 a roll. i like the up-sell. yeah, that's what i'm talking about. or you can -- you can attach it with your own wrist wraps. so what i want you to do is, i want you to put give in the grip. so you see how you kind of arc your hard like that right there. okay. feels really good. mm-hmm. it's very flexible. are you coming up here with me? yeah, i'll come up. i'll try it. i see a hernia. easy. there you go, robert. good job, buddy. you did better than i do. drake: good job. [ applause ] o'leary: there you go. how do your hands feel? this is really good. the grips are amazing. he can go all day. drake: that's why sales are so good. cuban: that's impressive. good job. john: good job, rob. all right.
so, sharks, you can rip, you can tear, you can bleed all over the place, or you can get the natural grip. so who's ready to stop the pain and see the gains? what are your questions? o'leary: well, questions are about money. so, you put a value on this for $500,000. that means you must have some sales or you're crazy. which one is it? i have sales. so, the natural grip's only been in existence for a year now, and we have $178,000 in sales. good for you. that's good. what was your full-time job? what did you do before you did this? okay, so, my full-time job is i'm active-duty army. wow. how did you even get here? john: yeah. what -- why this? why did you create it? i started crossfit in 2012, and i started ripping my hands, and i was so devastated, because when you rip your hands, you're out of the gym for at least three or four days while you heal. so i tried to find something to fix the problem, and none of it was working. my husband got sick of hearing me complain about it, and he said, "i think i can make you something that'll fix this problem." and we didn't know it then, but the natural grip was born.
i'm curious. why don't the other products work? 'cause there are a lot of other products. so the other grips are leather, so they're bulky. they're nylon or cloth, so they're slick. so what's proprietary about yours is the material. no. what's proprietary about mine, and what i have a patent pending on, is the method of a reusable tape grip based off of ring-finger size. what -- what material is this? that is 100% cotton adhesive material. how much are you selling these units for? so, right now we're on a distributor model. we sell to distributors for $10 a unit, and then they resell it for $17 a unit. how many units have you sold now? i've sold 13,000 units. what does it cost for each package? so, each unit costs me $4.43 to make. $4 of the $4.43 is labor. are you making them? like -- i found subcontractors -- stay-at-home mom, high-school kids, retirees, people that needed work. and i said, "i will train you. take my material. and i will pay you by the piece when you drop off." i own the number-one crossfit in the world, which is on fifth ave.
is your market purely just crossfitters? is there a market outside of crossfit? absolutely. why? power lifters, olympic lifters. i have motorcross guys that are buying this product. yeah, i could see that. greiner: i think you're amazing, everything you've done. you came in, you know your stuff, you have a great entrepreneurial spirit. for me, though, i have to be passionate about everything i invest in, and i'm not feeling the passion on this one. i'm out. thank you very much. herjavec: so, ashley, your problem is you need the money to build inventory to fill demand. to manufacture this more efficiently and to -- to get more of them to build inventory so when i get the orders from my distributors for thousands, i can fill it. right now, they wait. what's the turn-- what's the turn-around time now? with the current 6-man staff, i can do 3,000 units a month. wow. that's a major constraint to your business. i admit you have sales. something's working. but for me, i can't get excited about it because of how vertical niche-y it is. i'm out.
thank you. ashley, two years from now, three years from now, how big is this, what are the sales, what does it look like? i -- i believe if we can keep up with demand, we will gross $400,000 in -- in sales this year. but in 2015, if we can keep up with the demand, we will -- we will hit $1 million in sales. why? because the industry i'm targeting to right now is growing. i have a product that wears out that you're gonna need it again, then i can expand outside of crossfit. i don't think you want to expand outside of crossfit. that's not the opportunity. the opportunity is adding additional products that leverage your credibility and the trust that you've developed. he's so wrong. i-i'm right. trust me. i built it for the crossfit community, but the fact that it could help other people out there, i'm open to that. i'm solving a problem, so if someone else is ripping their hands, let's solve that problem. right now, though, let's deal -- hoo-rah! let's deal with this -- right. this that we have going on. you are one motivated cowboy. thank you very much. you're not wasting your time in "shark tank," i must say that.
i mean, the fact that i was able to get here in this small amount of time. you're amazing. all right, somebody give this woman $100,000 and get her out of here. yeah. who's in again? me, you, and robert. i'm not gonna fall for your crap this time. herjavec: yeah, you know what? i do this every time. i get impatient, and then cuban comes in in the 11th hour, so i'm just gonna sit here and wait. o'leary: why don't you declare, mark? showdown at o.k. corral.
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narrator: two sharks are out, and it seems mark, daymond, and robert are at a standoff. robert, you gonna make an offer? just -- just thinking. what's mark's famous line? "i'm just thinking." well, make an offer. i'm dying of old age. cuban: i don't care what these guys do. but i like what you're doing. obviously, you deserve so much credit. i see that you're trying to keep up. that's fine. but what i didn't see was what's next, right? what i was hoping to hear was, "after this product, then there's the tape. "after the tape, there's this, then that and this so that we can grow it into something enormous." and so for those reasons, i'm out. thank you. okay, ashley. so, we all know i'm the sporty shark.
you have tremendous credibility, and you're a great operator. every business i've invested in on "shark tank" that had a great operator has succeeded. i'll give you $100,000 for 30%. hey, there! and i am with you 100% on the strategy. hoo-rah. let's go. [ chuckles ] i got it. i think you -- i think you need more than just the money. i know robert has a couple connections, but obviously i'm in this space. so i'm willing to go in $100,000 for...40%. ooh. and i'm a partner with the only person that can put "reebok" on the boxes. it's not a reebok sale. i mean, what you're doing today is what you need to keep doing. and i'm -- i'm very thankful for both of those offers. i have a manufacturing issue. i don't need more fancy people wearing my grips 'cause i can't make them fast enough
to sell to the stay-at-home mom right now. i've been manufacturing since the day i was born. i actually took my umbilical cord and made it into a belt. okay. so don't worry about that. i can help you with the manufacturing. i'll tell you what. i'm gonna sweeten my offer. i'm actually gonna give you more. $125,000 for 25%. i'll give you the $100,000 for 33%. i know the whole community. i know what it's about. and i know what needs to happen for the manufacturing side before we go anyplace else. and i'm dying of old age. you have to make a decision. what do you feel in your gut? um, i feel in my gut that daymond, you're very well-connected and you know the industry,
but i've been living the grind for a year, and hard work, energy, and effort -- i only get less than four hours of sleep, honestly. and i feel like robert can help me get there, and i want to do a deal with you. let's do it. cuban: congratulations. o'leary: oh. greiner: congratulations, danielle. didn't see that coming. that is a big mistake. greiner: congrats. thank you. [ giggles ] love it. you know, if that didn't work, i was gonna challenge you to a chin-up contest, and then just leave it at that. she just partnered up with a cyber-theft guy. [ laughs ] no, no. she partnered up with a sporty shark. i'm so happy for you! [ laughs ] drake: this opportunity for my husband and our 3-year-old, it's gonna be life-changing, you know? it's just -- i'm just so thankful for it. and, like, hard work, it pays off. [ woman shouts ] [ all shout ]
we're at the white house today. yes, "shark tank" in the nation's capital. john: here they come. paige, ashley, rob, welcome to the white house. welcome! also joining us today are active-duty and veteran entrepreneurs who made deals with us on "shark tank." this is big time for all of us. we're at the white house today because "shark tank" has been invited to participate in a champions of change event that celebrates veteran entrepreneurs. i am so excited to be here. why don't we go check it out, all right? all right. let's go do it. ladies and gentlemen, valerie jarrett. [ applause ] the president has said again and again, "we must support our veterans "as they transition from protecting our country to leading our country in so many ways." o'leary: we're here to honor veteran entrepreneurs and also provide our own advice to those that aspire to become entrepreneurs. o'leary: many of the attributes that you're trained at are very useful in business. leadership is one of our best traits that we bring as vets. i look for desire, drive, honor,
and the ability to solve problems. for us, it was all about just finding what we were passionate about and running with it. don't start a business. find a problem, solve a problem. the business comes second. these vets already have the tools and the determination to succeed. all they need is a little guidance, but they know how to win. as these guys come back from the battlefields, it's important to show them that their unique skill set can be applied to starting their own business. sometimes, they just need to be shown the path. man: one more round of applause for this team up here. [ applause ] [ indistinct conversations ] o'leary: this is the epicenter of freedom in the world, of capitalism, of the american dream. with "shark tank" and the white house working together, we can inspire a whole new generation of entrepreneurs to make our economy grow even faster. our veterans are some of the most talented and creative leaders in our country, and it's no surprise that many of them
go on to lead businesses of their own when their service ends. so my husband and i are thrilled to celebrate veterans small business week with all of you at "shark tank." now, throughout the country, we're connecting veterans with workshops, resources, and training programs to help them launch and grow their businesses because we know that joining forces with veteran entrepreneurs isn't just good for their bottom line, it's good for our entire country. so to all of our veterans on "shark tank" and all across the country, we want you to know that we've got your back.
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[ dog barks ] i want that dog. [ lori speaks dutch ] wade: hey, sharks. how you doing? my name is wade morrell. i'm lori's husband and the co-owner of priority 1 canine. we train and sell the world's finest canine bodyguards for personal, home, and family security. lori: you're probably asking yourself "who needs a personal canine bodyguard?" the answer might be you. the average police response time in america is 7 to 10 minutes. that's 7 to 10 minutes that you just can't waste. we hand-select and train each canine to meet our client's individual personal security needs, whether it be protection from carjacking, perimeter security, or personal security while at home or away. so, sharks, which one of you would like to team up with us and become a part of the most elite canine security company in the country? [ dog growls ] oh, my god. [ lori speaks dutch ] herjavec: lori, that was so cool. but for me to really get it, i need to see the demo again. can kevin put on the clothes? [ laughter ] what language are you speaking to the dog? lori: dutch. herjavec: is she friendly, or is she so tightly wound
that she can't be a family pet? lori: oh, no. all of our canines are family pets. they live in the home with -- with the family. why is she staring at him so intently? she's in protection mode right now. for you? yes. that's very interesting. i would like to excuse her so we get back to the -- the nitty-gritty of things. okay. all right. roxy [speaks dutch] wow, that's intense. herjavec: that is so impressive. that's a very tightly wound animal. almost a -- it is a weapon. can you do the same thing with, let's say, a chihuahua? [ laughter ] is it only german shepherds? wade: no, we -- we specifically use about three or four different predominant breeds -- the belgian shepherd, like you saw today, or the belgian malinois, the dutch shepherd, and the also the german shepherd. we actually hand-select the dog that's gonna meet your individual needs. we come to your house, we see how you live. do you have kids? what do you want to use the dog for? walk me through numbers. i need a dog. what do you charge me? we have three different training packages. we have a level one, which is a $20,000 training package -- does that include the dog?
that includes the dog, yes. ...a level two, which is a $30,000, and then a level three, which is a $40,000 package. and what's the difference? it goes on the -- the amount of training that's put into the dog. so the basic level one dog would be a dog that, if someone was to come to your house, ring the doorbell, the dog would go to the front door and bark and look like a threatening dog. level two, we start going into higher levels of training -- if you're a jogger or if you want a carjacking scenario placed into the dog. once you get into a level three dog, you get the full shebang. you know, i'm curious about your background, because you feel to me like maybe army, s.e.a.l.s, something. yes, ma'am. i'm a former united states marine. i've been a police officer for the last 14 years. s.w.a.t. teams, police departments all over the united states request me to teach them how to do this with their dogs. and, lori, are you involved, too? yes, i actually came from corporate america. but i came home one day, and i told wade -- i said, "you know what? i've always wanted to do something with animals." and he goes, "go for it." how many dogs did you sell, or whatever the term is, last year? cuban: were placed last year? how many dogs have you placed so far? we've trained and placed 11 dogs so far. this year? wade: in the last year and a half. lori: in the last year and a half. yes, sir. what are your revenues? it's about $150,000, and we made about $75,000.
the inherent problem here is scalability. how do i turn this into a multi-million-dollar business? i think that's very, very challenging. this is such a perfect thing for you. no, it's -- like, dog that rips someone's -- no, i like that part because i could just say -- you know, cuban's competing with me on a deal, i just send the dog over. yeah. greiner: mm-hmm. that's it. wade: i don't mean to interrupt you, sir, but if we do 20 dogs a year at $40,000, that's $800,000 a year. i've never been a rich person. i probably never will be. that's plenty of money to me. that is a fantastic living for you. but even at $800,000, as an investable business, it's very, very difficult to scale that kind of thing. if we 9 nine dogs a month, 72 dogs a year... yeah, but, lori, here's -- ...we're looking at $2.4 million. yeah, here's the challenge. it's you. it's such a hands-on type of business. a weapon like that is highly, highly trained that needs people like you to constantly retune it. and we do that. yeah, actually, that's --
but again, it goes to my point. it's you. i don't think you found an investor in me today. perhaps a customer. i'm out. if you got this up to $1 million in sales, which i think you could... yeah. ...it's not really interesting for an investor. we have different opportunities to put our capital in may different directions. we look for unlimited scalability. i-i don't see it here. i'm out. i'm sorry to hear you say that, kevin. we really need a partner to help us here. we're not -- i just -- i just been a marine, a police officer, and a dog trainer my whole life. i need somebody with that little bit of extra business sense to help us take this -- this business to the next level. you're right. maybe it won't be a $5 million or $10 million company. maybe we do $2 million. but how -- but you may get to $2 million on your own, and that's a great living for you guys. cuban: there's different types of investments. for some, they just need the cash, right? and for others, they want contacts and expertise and mentoring. contacts, expertise, and mentoring is expensive
from our end, and so when we talk about getting to $2 million relative to our time, it's not enough. it's gonna take more time than the reward would be, and for those reasons, i'm out. thank you, sir. appreciate it. thank you. greiner: you guys are really impressive. i could tell the minute you walked in you had a military background. you called everybody "sir" constantly, kept your cool. i think to the point the other sharks are saying is you don't have to scale it really huge. if you make a great living off it, that's what you need, and i don't say that very often. it would be hard for us to make a lot of money from it or to be able to contribute to you. for that reason, i'm out. but i see you as winners. thank you. thank you, ma'am. i appreciate that. daymond, you're a huge dog lover. john: i am. and if you can come over and teach little blake and spartan to pee on the wee-wee pad, i would say so many things. his chihuahua. done. i'm not sure those are dogs. they are. they're little hot dogs.
so i'm a product guy, and, you know, manufacturing and distribution, licensing. i don't think i can help you in that service. you can. you can. you can absolutely help us. but i can't turn your business into a big business where i can get actually a return on my capital. i'm out. well, thank you so much for your time. i really appreciate it. this has been an absolutely awesome experience for us. congratulations on your success. you guys have a great business. great job. all right. thank you. i want the killer chihuahua to take him out. [ laughter ] greiner: good luck. cuban: congrats, guys. wade: thanks. appreciate it. that is so your business. o'leary: are you kidding? if that was around with young kids and it just had a bad hair day, it would eat somebody's head. [ laughs ] wade: our goal was to come in and show the sharks a different type of business, kind of blow their doors off. but, unfortunately, they didn't see it that way. little bummed. and disappointed. yeah. yeah.
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every great why [ clock titime. ] you only have so much. that's why we wanna make sure you won't have to wait on hold. and you won't have to guess when we'll turn up. because after all... we should fit into your life. [ laughing ] not the other way around. [ clock ticking ] narrator: next up is an entrepreneur with a better version of the modern man bag. hi. my name's aaron tweedie, and i'm from front royal, virginia. i'm here today seeking $200,000 for a 29% stake in my company, man-pack. the man-pack is a sling-style vertical messenger bag
designed by guys, for guys. you know, 40 years ago, men carried nothing more than a money clip, but times have changed. on average, guys now carry 4.5 pounds of stuff, things like keys, cellphones, tablets, energy drinks. point is, guys need to carry stuff, and we have very few options. we have the backpack, the briefcase, the traditional messenger bag, and i'm sure all of you remember the fanny pack. i have designed a superior product that i call urban tactical. you can wear this thing three different ways. first way is bandoleer style. if you need to take it off quickly, it has a quick-release clasp. a chest-mounted utility pocket for your cellphone with a magnetic button closure. line it up, locks itself shut. three rows of molle for tactical gear, and a collapsible beverage holder. when you need it, it's there. [ laughs ] when you don't, it folds up -- not the collapsible beverage holder! [ greiner laughs ] ...it folds up and out of the way. to get into it, you don't need to take it off. just spin it around and open it up. plus, you have auxiliary pockets for things like your wallet,
loose pocket change, keys. now, if you're someplace where you're gonna take it on and off frequently, you can throw it over one shoulder. notice how the weight still hangs over your lower back due to the ergonomic design of the strap. [ laughs ] and if you're in the city on the metro, you can wear it reverse, keep your possessions in front of you and safe from pickpockets. the mission statement of man-pack is to make men more prepared, because a prepared man is a better man. with your support, we can turn the "man-bag market" into the man-pack market. thank you for the opportunity to present, and i'd be happy to answer any questions. herjavec: aaron, what's your background? get it, baby. that was really good. thank you. are you -- what's your background? are you a designer? uh, no. i built my first house when i was 19, and i was in fort benning, georgia, when i was 17. were you in the army? i was. you know, when you first walked in, i looked at it and i thought, "oh, another knapsack for guys. whatever." but you definitely wowed me with the utility of it. can we see them? can you hand -- can we take a look at one? sure. yes. for you. thank you.
here you go. o'leary: give me the black one. thanks. you get the xl. yeah. herjavec: yeah, he needs the xl. [ laughs ] herjavec: thank you, sir. appreciate it. have you sold any of these? tweedie: i have. i have. greiner: what are your sales? john: what are your sales? okay. so, last year, $76,000. this year, we're at $65,000, year to date. greiner: is that online? it is. what do you think you're gonna do this year? $145,000. what do you sell them for? $59.95. what do you make them for? greiner: what do you make them for? they cost, right now, $22.05 a piece. so this product requires an explanation, 'cause it's hard to differentiate it against anything else. that's true. you have to educate the consumer because this is an emerging market. bags are emerging market? this is the millennial version of the murse. [ laughs ] but it's not -- right. it's not a purse, it's not a backpack. it's a murse! you know what -- it's a man -- it's a man-pack. herjavec: but, aaron, here's the concern. sure. okay. when i was europe last summer with my family... right. ...i had a similar bag, and i wasn't ashamed to wear it in public because every other guy in europe had one. exactly. when i came back here, i put the same thing on,
i didn't make it one block down the street, everybody was laughing at me. you know, it -- greiner: but that's not a murse. robert, i don't think they were laughing at you for that. you know, a couple of things. one, it's not a murse. when you see the guys that i sell to, the secret service agents and military personnel and law-enforcement personnel -- i never laugh at somebody with a gun. right. exactly. well, let's go to the real numbers. how many did you sell last month, online only? probably like 40. that's -- you know, i mean, it's not good. but i started this with $5,000. i've been doing a lot with next to nothing. why do you think the company's worth $700,000? okay, um, $50,000 for the design patent, which we -- but what did you get the design patent for? for this model. like, what -- a bag with a strap that has so many pockets? greiner: just the look of it. it's just the look of it. what else are you adding to the value? a multiple of sales for two years being the $145,000 projection. $18,000 intellectual property, that being the bank of youtube commercials that i've created. they're really funny. you should check them out. [ laughs ]
you're putting a hard value on those? value is a matter of perception. yes, it is. and we're on -- if we're on an island and you have a bar of gold i have a cheeseburger, who's rich? i'll take the gold. okay. i'm gonna get in the plane and leave the island. [ laughs ] john: let's go -- robert, hold on. are we done? are we done with all the numbers? i was just -- n-no. um, okay, and $200,000 in good will. and $200,000 in good will. [ laughs ] o'leary: if i gave you $200,000, i'd have to own about 260% of the company. about that. 'cause you have very small sales. that's the reason i'm out. i'm just a disciplined financial investor. i understand. cuban: i kind of agree with kevin. i think this -- this is a hard business to invest in. i think you're a hustler, and you're a great salesperson. i just think it's hard for you to scale, which makes it hard to invest in. and so for those reasons, i'm out. we see many people with, um, good sales, bad sales, and then we normally bet on the person.
and thank you for serving our country. thank you. we also look for small indications on how good this partner would be. your "i'm gonna charge $20,000 for the --" your videos, that you may have made at home -- it indicated that you don't have a sense of financial intelligence when it comes to what partners need in operating this business. and for that reason, i'm out. i have to tell you, as impressed as i am with you, to me, it looks like a messenger bag. so you've got to go, and you got to run real fast, baby. you got to get out there. but that's a journey for you. and you're a tough guy, ex-military. i think you're gonna do it. i just -- you're not gonna do it in the time frame that i want to do it in. for that reason, i'm out. greiner: i don't know that much about what men carry around.
but i do know that, in all my years in retail and on qvc and creating products, the hardest thing is when there's just a ton of competition and you're not even sure how popular the market is for it. and we're not sure how many people are gonna be buying the product. and for that reason, i'm out. very well. i wish you all the best, though. all right. well, thank you guys very much. good luck, aaron. good luck. thanks. john: good luck. what it comes down to is that they didn't like my valuation. i'm sure they would have liked to have 70% of the business for 20 grand. and, you know, i looked forward into the future, and i know that it's gonna be worth a lot more because i'm gonna make it worth a lot more.
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hi, sharks. my name is eli crane. i'm his wife, jen. our business is bottle breacher. we are seeking $150,000 for 10% equity stake in our business. at bottle breacher, we make the finest personalized .50-caliber bottle openers on the market. you might be asking yourself, "why would anybody want a .50-caliber bottle opener?" short answer is, "they're awesome." [ laughs ] as a former navy s.e.a.l., i knew i needed to figure out a way to provide for my family when i got out of the navy. bottle breacher has given us the ability to do that. and it's actually really simple. most guys like drinking beer. most guys think that large-caliber bullets are very cool. at bottle breacher, we've combined the two to create the ultimate manly gift. we've managed to create a successful company, but we know, with your help, we can breach this thing wide opened.
[ herjavec chuckles ] we made each one of you guys a personalized .50-caliber beer-bottle opener. [ greiner laughs ] we brought you guys some beer. mr. cuban, we found some gluten-free beer for you. i'll take it. jen: robert, we have a racecar. thank you very much. you're welcome. o'leary: thank you. herjavec: oh, it's beautiful. i like that. jen: yes. it's great. lori, that's the first pink breacher we've ever made, in your honor. [ laughs ] and 'cause i don't want to be rude and have you guys drink alone... i'm gonna have a drink with you guys. that's right. all right, eli. cheers. cuban: cheers. cheers, guys. o'leary: so, eli, is it a real .50 cal? mr. wonderful, that is a dummy round. we use recycled bullets. we are buying through an intermediate, so that's one place we know, in the future, we can absolutely slash our costs by going directly to the manufacturer. where do you sell it? jen: well, we sell them online. we have a etsy store, and then we have our own website. on average, they are $23.50. okay. they have a pretty wide range. we have a lot of add-ons, so we can always add-on to the customer. what are the add-ons? a round in, like, brass would start at $20. you can add on engraving for $5. you can add a box for $5.
you can do double-side engravings, which is an extra $4. what's the price you're paying for each on? the cost to us, after labor, is $9.03. mm-hmm. yes. so, um -- o'leary: but you're not selling to retail, right? not -- not at this point, sir. not at this point. we are in two strategic brick-and-mortar stores. okay, so, you're selling them now at what? we usually sell them between $16 to $18. our biggest market is weddings. weddings? weddings? it is a groomsman gift. father of the bride, ushers, groomsmen, best man -- that makes a lot of sense. anyone we can get in the weddings because they're willing to pay more money. you said you created something from scratch. it's a real business now. give it to us in terms of numbers. what are your sales? year to date, we've made a half a million dollars. wow. and -- all online, or through retail, or how? all online. and we're projected to end at $840,000. we just started january of last year. that first month, we only made $375, and last month was our biggest month ever at $100,000. good job, guys. that's awesome. answer why it's called "bottle breacher." eli: yes, sir. i'd love to answer. a breacher is an operator whose job it is to get us -- the assaulters into whatever target we're hitting.
cuban: goes in first, right? so you got that big old door -- whether it's a sledgehammer, whether it's a strip-charge explosive on the door, he is the breacher. that's a qualification like "sniper." you know, you've got to breach into that beer somehow, right? you got to get in there. you got to breach. bottle breacher. and our customer base, we found, loves it. herjavec: that's a great story. they love it. greiner: can this be made in other bullets? yeah. yes, ma'am. that's a 20-millimeter round. that's what you would fire out of, like, an attack helicopter or something like that, so... so this is like -- herjavec: oh! oh, my gosh. cuban: oh, yeah. this is the mother of all bullets. john: oh, yeah. now you're talking. compare. we actually call that the wmd -- the weapon of mass destruction. you get any resistance because it's a bullet? because some merchandisers don't like the thought of a bullet because there's been, in our society... no. ...problems and issues with bullets and guns. no. you are absolutely right. and, you know, to that point, we -- we haven't had any problems so far, you know, pushing these along through the market. and we found that most people, you know, they see it as a display piece and nothing -- nothing really harmful. jen: that's where the store's coming from. even though i know exactly where you're coming from, lori. you know what i'm saying. i mean, it's a reality. absolutely.
we have never had anyone be like, "oh, i hate that." well, like, then don't buy it. o'leary: where do you need to expand the capacity? let's say this is a huge hit on "shark tank" and you get an order for 50,000 units. how are you gonna do it? i know at that number, i'm gonna have to lease another incubator space. i'm also gonna have to get -- is that what you need the $150,000 for? yes, sir. that -- part of it. as we grow, we could double in size right now in the space that we're in. but if it starts going bigger than that -- inside that space, what do you need to buy? okay, so, we need more engravers. every -- you know, 90% of our orders are customized. what stops anybody else from doing this? okay, that's -- and that's a great question. and we do have competition. thanks to mr. wonderful here, we were actually watching an episode of "shark tank," and mr. wonderful was ripping apart an entrepreneur because he -- he never does that. greiner: typical day. ...he did not brand on his product, and as soon as it left the package, you couldn't tell it from the other ones. after the episode, i looked at jen, and i was like, "hey, babe. "we got to figure out how to stamp 'bottle breacher' on every single one of these." so we did. he stayed up so late. o'leary: well, i think the name has a lot to do with success. it's catchy -- like, breaching and opening. herjavec: yeah, it's a very good name.
eli: thank you, sir. i mean, that's half the battle. cuban: give us the navy s.e.a.l. story. you know, i'm so, so honored and humbled to be able to serve with the guys that i got to serve with the last eight, nine years. i did three combat deployments to iraq. the first time i went to s.e.a.l. training, i didn't make it through. i actually made it through the hardest portion of s.e.a.l. training, which is called hell week, and that's 5 1/2 days of just getting your butt kicked the whole time. no sleep whatsoever, you're cold, wet, and you're sandy, and you're just getting beat down the whole time. i made it through that week. about a week and a half later, the instructors pulled me into their office, and they said, "young man, y-you obviously have heart, "but you're not what we're looking for. "and we need the best of the best here, so we're gonna send you out to the fleet." i was on a ship for 2 1/2 years. it wasn't very fun at all. herjavec: wow. but i-i -- you know, i did what i had to do. i paid attention. you know, and 2 1/2 years later, i came back, and i made it through. and i-i wanted to tell you guys that because that's who jennifer and i are. we don't give up. you know, life is full of obstacles and failures, and when we face that, we don't run for the hills.
we just keep charging on, and we figure it out. so, do you do any wedding shows or anything? we haven't yet. just because, honestly, when he was active duty, i was at home, running the business. we wanted to wait to expand till he got out, which is next month. i just quit going in to my navy job two months ago. it's two-fold. when he was deployed, i had a really tough time, and that's why i started working online by myself at night, because i was -- i was lonely, and i was by myself. i didn't know anyone in san diego. and i got used to it, and it's been a wonderful experience. after three deployments, it's now time for him to come home. we have two girls. they ask about daddy. and, um -- aww. no, they do. and they -- and they miss him. all right, guys, look. i'll make you an offer.
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i like the story. it's very simple. i've made money with military guys 'cause they're focused. i'll do it for 20%. straight equity. wow. that's -- that -- i'm honored to get that offer from you, sir. [ laughs ] no, no, no. i really am. you know why? i never thought i'd get an offer like that from you. no, no, no, listen. i like your story. that -- that's awesome. i like -- listen, i structure my deals based on the risk i'm taking, and i think this business can be grown. i really do appreciate that offer, and i'd like -- out of respect for the other sharks, i'd like to hear if there are any other offers before we -- well, let's hear if they're interested. greiner: you are wonderful. cuban: you're good. out of respect to us, you want to hear our offers. yes, ma'am. yes, ma'am. i-i want to hear if there's any other offers out there. well, respect to him as well. well, listen. i like you. you have a niche market. but i personally -- i like big markets, and so i'm out.
all right, i'm gonna make you an offer. i want to give you $200,000 for 25%. but it would be contingent that i can get the licenses. i was already thinking key rings and paperweights and a lot of other things, and i don't think that you'll be able to ramp up that quick, and i don't want the knock-offs out there in the world to knock you off and go do it themselves. herjavec: eli, thank you for your service. thank you, robert. nobody knows what it takes like a s.e.a.l. does. $150,000 for 20% from kevin, $200,000 for 25% from daymond. i'm gonna clear the field so you can consider those. i'm out. mark, would you be interested in going in with either of the other sharks?
i'd be interesting in going in with kevin. okay. so, mark, do you just want to split it $75,000 each? yeah, we'll just -- yeah, yeah, we'll just split it. 10 points each? what do you say? so, if -- let us split it. that'll work. o'leary: so it's $150,000 for 20%. mark and i each get 10%. so we're each gonna put in $75,000. you got two sharks, no contingency. we're going straight in. we go right to work. mr. cuban, mr. wonderful, you guys are awesome! let's do it! o'leary: all right. yes! jen: thank you. thank you very much for your time. congratulations. thank you so much for the opportunity. congratulations. we really appreciate it. cuban: why are you standing here? go to work. all right. we will. o'leary: get on it. thanks, guys. appreciate it. and thanks for the beer. [ greiner laughs ] herjavec: thank you for the bullet. eli: i told jen from the get-go, i wanted to land two sharks. you know, we have a saying in the military -- "one is none, two is one." we wanted two sharks, and that's exactly what we got today.
absolutely thrilled, especially with the two that we got. it's just perfect. yeah. really was. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ are jeffrey simon and marc newburger, with a business help make sure that nothing ever slips through the cracks. howdy, sharks, i'm marc newburger... and i'm jeffrey simon, and our company is... (together) drop stop! we're here today seeking a $300,000 investment in exchange for a 15% stake in our company. now, sharks, let me ask you a question--