Lift big in small places. That is the concept Erik Hopperstad and Brian Brosh from Fargo, North Dakota had in mind when they created and developed PRx Performance, a home storage system for fitness gear and weightlifting equipment. What started out as a way to save space and keep their home gym out of the way when not in use turned into a viable business opportunity.
Erik and Brian dove into the Shark Tank to see if they could get an investment that would take PRx Performance to the next level.
PRx Performance on Shark Tank
Shark Tank Season 7 Episode 19
The two fit and trim entrepreneurs hit the stage asking for an $80,000 investment in exchange for 10 percent equity in PRx Performance.
Erik explained that PRx Performance was designed to take up a minimal amount of space in the home. The slim, lightweight rack that holds barbells and weights is made to turn the smallest of spaces into a home or office gym, perfect for bench presses, squats, and pull-ups. The compact system easily folds up for easy storage in the smallest of spaces.
The unit is secured onto regular stud walls without the need to build a custom wall mount to hold it in place, with most of the weight resting on the posts. The top bar is adjustable to height and preference. While the actual weights are not included with the PRx Performance, additional products and accessories are available for purchase. The PRx Performance system sells for $1,099 retail, with the assembly of the unit taking up to a couple of hours to put together.
The two business partners had been in the fitness industry for a few years when they came up the design for that PRx Performance. Living in a cold climate, they wanted to be able to both store their fitness equipment away while still having full use of the entire garage.
PRx Performance Patent Pending
A patent for PRx Performance was pending, and Erik said that two companies had launched similar products, which he said were in violation of their own patent claims. Lori asked if they had made any attempts to fast track the patent process with the potential infringement claim.
Mark interrupted, looking to switch the focus back to the actual product. Brian revealed that they sold about 100 units since the third quarter of the previous year, generating upwards of $178,000 in revenue in the process, though they had yet to take a salary from the business. Brian said they were making 30 percent off of each unit and were looking to increase that to at least 50 percent. Mark agreed that would be a wise goal to reach for, but cautioned them that it was too early to worry about the return on an investment. He liked the product and felt the two did a fine job in presenting it to the pane, but he was out.
Robert told the guys that in order to be successful in the fitness industry, the product would need to be easy to use and widely assessable. He suggested that PRx Performance looked hard to assemble and seemed too technical for the average consumer who be scared off by the assembly aspect of PRx Performance. He said he would not even know where to start to find a suitable wall stud. He was impressed with the concept and their presentation, but PRx Performance would need to appeal to a larger base of potential customers, and he went out, too.
Lori said that she knew how to find a wall stud and that PRx Performance seemed like it was easy enough to install. There was no denying it was a space saver. The patent would have to be resolved before she would think about investing in PRx Performance. With the patent situation unresolved, she dropped out.
Daymond felt they had two kinds of potential customers: fitness enthusiasts that would not wind up using the PRx Performance and those who buy muscle milk in bulk. He did not see it as having a wide enough customer base, and he was the next Shark to drop out of the negotiations.
That left Kevin, who is commonly referred to as “Mr. Wonderful,” to try and make a deal with Brian and Erik. Kevin’s wife was currently in the process of paying to put a home gym in their lake house. He wanted to know the valuation process they went through to arrive at the $800,000 they felt the business was worth. Brian explained that projections were based on the selling another 300 units the current year, at $700 per unit. Kevin offered them the $80,000 investment they were asking in exchange for 20 percent of the business. They would pay him back in 20 percent increments, which would give them the upfront capital they needed. Kevin also stated that he would sue those trying to pilfer their idea “to the Stone Age.”
Brian and Erik contemplated the only offer they got from the panel. Kevin told them he was clearly the only one who believed in them and the PRx Performance system. They agreed and accepted Kevin’s offer, shaking hands to finalize the deal.
Robert requested that Kevin to a couple of chin ups to celebrate the deal, but Kevin said he did not want to embarrass the two incredibly fit new business partners. Mark said he would anxiously await Kevin returning with a ripped, new body.
Where Are They Now? PRx Performance After Shark Tank
Brian and Erik finalized their arrangement with Kevin, and their business took off after the episode aired. PRx Performance funded a Kickstarter project while they researched other products to expand their line. They now sell a wide range of racks, accessories, and home gym packages for homes, schools, and small businesses.
In August 2018, PRx Performance was named on Inc. 5000’s list of the fastest growing private companies in the country, coming in at No. 674 after a three-year revenue growth of 742 percent.
Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with PRx Performance, SharkTank, or any of its subsidiaries.