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BibbitecShark Tank

Bibbitec: Shark Tank Updates in 2020

by Tom Bowen
written by Tom Bowen

The Basics

  • Company: Bibbitec
  • Owners: Susie and Steve Taylor
  • Asking Price: $40,000 for 14% equity
  • Final Deal: None
  • Sharks Who Took The Bait: None
  • Season/Episode: Season 4, Episode 14

Bibbitec Before Shark Tank

Susie and Steve Taylor are the parents of two young, very messy boys. During an airplane trip, the kids rolled around in the row and made everything dirty, but somehow Steve was spared. He was wearing a performance fabric shirt and it simply wiped clean. The couple had earlier argued about the cost of bibs because they would get stained and hold onto odors, even when washed. The Taylors were tired of throwing away money on junky bibs, so after their airplane experience, Susie was inspired to make a better quality bib that you wouldn’t have to throw away.
Their Bibbitec bib is made in the U.S. and the fabric is toxin-free. They are coming to the Shark Tank to ask for $40,000 in exchange for a 14% stake in their company.

Bibbitec On Shark Tank

The Taylors approached the stage, introduced themselves, and asked the sharks to invest in their product. They told the story about how their airplane experience had inspired the bib, and then Steve described how easy it was to slip the bib onto a child while Susie demonstrated, using a doll. The couple said their bib was American-made, non-toxic, and wouldn’t stain or retain odors.
Susie then applied mustard to the bib and showed how easy it was to wipe it clean. When they began to pass samples to the sharks, Barbara said she wanted to inspect the dirty one. Daymond asked if it was made of neoprene, and Susie told him it was a poly-nylon blend. It was also patented and non-toxic.

Barbara asked about their selling price. Susie said they sold the bibs on their website for $24.95. Kevin wanted to know what it cost to make. When Steve said the cost was $15 per bib, Kevin reacted in horror. Susie responded to Kevin’s reaction and said people were willing to pay $48 for the bib, but Kevin was still stuck on the high cost to produce them. Why did they cost so much?

Susie told him the fabric was expensive, but then Kevin shouted that you couldn’t make money selling bibs in America at that high price point. It would be cheaper to buy a bunch of regular bibs and then throw them away when they got dirty.

Steve told Kevin that their bibs would last four years or longer, and Susie added that moms were spending $400 annually on cheap, throwaway bibs. Robert didn’t believe that. He wanted to know how many they had sold.

Steve told the sharks they had sold 2,000 bibs in four years, and Kevin just shook his head. Robert asked what they had made in the past 12 months, and it was only $17,000. Robert said, “That’s it?”

Kevin went on to say that the majority of bibs are not bought online. There were two or three big-box retailers that sold baby apparel. Why hadn’t the Taylors been able to get into retail stores? Susie said their product was hard to sell without first educating the customer. Retailers had also confirmed that bibs are a bait and switch item and that the stores use cheap bibs to get moms into the stores.

bibbitec featured on shark tank 1024x718 - Bibbitec: Shark Tank Updates in 2020

Susie Taylor, CEO of Bibbitec, left; with sister, Heather McCabe.

Hearing that, Kevin confirmed what he had said earlier – people don’t want to buy expensive bibs. But Susie contradicted him and said that people bought the $48 bibs with no hesitation.

Robert questioned why they hadn’t tried to license the product to a company that already manufactures bibs. Susie said she had tried looking for manufacturers that could sell the bibs at a lower price but they were all Chinese firms, and she wasn’t okay with using toxic fabrics that are potentially unsafe for kids. She wanted to produce her bibs in America and to make sure they are safe. But Kevin said the high cost is keeping her product away from many Americans, and tossed out the outrageous allegation that she was hurting kids because most people couldn’t afford to buy her bibs.

Kevin asked if they had made any money. The answer was “no.” Steve admitted they had invested $75,000 into the business but hadn’t seen a return on investment. Kevin wondered how long they were willing to lose money, but Steve said he had some cash he was willing to invest if he couldn’t find an outside backer. Susie disagreed. She said they couldn’t afford to fund the business any longer.

Kevin said he thought it was time to take the bib behind the barn and shoot it. Susie said, “Absolutely not.”

Daymond asked if they could get the price down, and Susie said she thought they could if they could get a large order. With Kevin shouting that the bibs needed to cost $2 in order to make money, Daymond asked what was the magic price point they needed to sell it at retail. Steve said they could sell the smaller bib for $19.99. Daymond then advised that they would have to get the cost down to $5 if they hoped to see a profit on a bib priced at $19.99. Steve said he was open to finding a new material that would cost less to produce.

But Robert was more concerned that they wouldn’t be able to sell the bibs in large quantities. He said they weren’t doing a good job explaining how that would happen. Were they not selling enough because the bib was too expensive? Susie said they weren’t selling enough because her job as a mom came first, which led Robert to say, “You’re not selling more because you’re a mom?”

Susie seemed agitated by Robert’s comment, and Steve told her to take a breath. Daymond then asked why Susie was getting emotional. She replied that she felt a lot of pressure as a stay-at-home-mom to do what’s best for her kids, and she felt strongly that moms were throwing away money on bad products. She also said that she and Steve had earlier argued about how much she had spent on bad products.

Kevin said that although her story was heartbreaking, he and the other Sharks were looking at this from a financial perspective. They were losing money, so why would any investor want to join them? Steve felt they were at the tipping point, but Kevin wanted to know when that was going to happen. Susie shouted, “Right now!

Mark said fighting with Kevin was like arguing with a wall. For his part, he thought that the product was good, the price point was fine, and that it shouldn’t be sold at retail. However, he didn’t think Susie should run the company. She should find a college student who was knowledgeable about online marketing and have that person run with it. He admitted he was not the right person to help her, so he was out.

Barbara felt a sales force made up of moms could sell their bibs and that Mark was right – it shouldn’t be sold at retail. But her instincts told her she shouldn’t be involved with this product. She was out.

Kevin said Mark and Barbara were lying to the Taylors by providing encouragement when there was none to be had. He dropped out as well.

Daymond then said that he couldn’t help them to educate customers about the product, so he was out too.

It was down to Robert, but Robert said he couldn’t find a good strategy as to how to sell the bib. The Taylors didn’t have a plan to make the product successful, so he was out. With that, the Taylors were out of sharks, and no deal was made.

Final Deal: None

Bibbitec After Shark Tank

Immediately after the episode, Bibbitec’s sales surged. The night the show aired, the company made $75,000 in sales and that weekend it earned another $150,000. Unit sales went from 2-3 per day to about 1,500 per day but eventually leveled off at 50 per day.
Soon, there was a shift in leadership, and Steve took the helm. They started selling the bibs on Amazon for $22 each, and ultimately sold 3,000 units.

In 2018, the Taylors shut down the company. It turns out Susie is a trained actress and it appears she has returned to that profession. She has a blog where she relates her experience on Shark Tank, and includes one post where she tells her reader that she’s “letting go” of the business.

Bibbitec had a good run, given its high price point. In hindsight, Barbara had the best idea for a sales strategy when she suggested that a sales force of moms could have made this product a big hit. If the company could have held out a couple more years, it could have seen success using social media marketing. Niche products seem to take off when they go viral on Facebook.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Bibbitec, SharkTank, or any of its subsidiaries.

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MyoStormShark Tank

MyoStorm: Shark Tank Updates in 2020

by Tom Bowen
written by Tom Bowen

The Basics

    • Company: MyoStorm
    • Owner: Jonothan “Jono” DePeri and Shaquille Walker
    • Product: Vibrating, Heated Therapeutic Massage Ball
    • Asking Price: $150,000 for 10% equity
    • Final Deal: $150,000 for 5%, plus $1 royalty per unit sold until $500,000 recouped
    • Shark Who Took The Bait: Lori Greiner
    • Season/Episode: Season 11, Episode 5

MyoStorm Before Shark Tank

Jonothan “Jono” De Peri and Shaquille Walker are two friends from Provo, Utah, who worked as missionaries for their church. During that time, they decided they would someday create a product together but were not sure what it would be. Jono would later study mechanical engineering at Brigham Young University, and was involved in a project that measured how vibration affects the human body. According to his research, there were specific frequencies and amplitudes of vibration that could provide greater therapeutic benefits when treating muscle injuries.

Shaquille – who was training to be a runner – had experienced his fair share of injuries, and was intrigued by Jono’s research. Shaquille and Jono knew that this range of vibration frequencies was not being utilized in the current market of tools to treat pain and heal injury, so they brainstormed the idea of using this kind of vibration in an upscale massage “roller” that could treat pain and heal injury with better efficacy than what was currently available for purchase.

DePeri developed a prototype with the help of a team of researchers and called it the MyoStorm Meteor. The Meteor has three vibration settings that are backed by scientific evidence to provide superior results, and also has two heat settings. Soon, Jared Ward, a professional marathon runner and a statistics professor at BYU joined the team, and would accompany DePeri and Walker to pitch the Meteor to the sharks.

MyoStorm On Shark Tank

Jono, Shaquille, and Jared approached the stage. They were also joined by a woman who would demonstrate how the Meteor is used. Shaquille stated that 100 million Americans reported having chronic neck or back pain. He also revealed that $6 billion was spent on pain management in the U.S., and that most people were not getting the relief they needed despite spending all that money. In unison, the team chanted, “There had to be a better way.”
That’s why they created the Meteor. It was a patent-pending, FDA-compliant medical massage device that utilized cutting-edge technology, vibration, and heat therapy to reduce pain and speed up muscle recovery. It was lightweight and easy to use, and worked by combining pressure, vibration, and heat.

The Meteor was designed with professional athletes in mind but it could be used by everyone who experiences pain. The team was asking for $150,000 in exchange for 10% equity. “Who’s ready to roll with us?” they asked.

The balls – which were already turned on and heated – were then distributed to the sharks for trial. Every shark seemed to love it and Kevin thought it was fantastic. Mark went to the stage and placed the Meteor under his back while rolling over it on the ground. His groans indicated that it was working.

Lori wanted to confirm that what set this massage ball apart from competitors was the use of heat and vibration. Jono explained that he had studied how vibration affects the human body and used that knowledge to optimize the massage ball to provide the best relief. Then he added heat.

Jono then told the sharks how the Meteor had started a Kickstarter campaign with 1,000 units. Their goal was $20,000 but they brought in $70,000. The sharks were impressed by the success of the campaign.

Mark wanted to know about pricing and costs. Shaquille said they had tested price points between $130 and $175 and had settled on $160. The product cost $40 to manufacture. All of the sharks thought the price was expensive, but Shaquille said that competitors sell inferior products and they saw value in the Meteor since it was a product that stood apart from what was currently offered in the category.

Jared added that there are some products that cost $600, and while the traditional foam roller is only around $15, the Meteor was a superior product at a more affordable price than what was available at the high end. He also said that many people spend a lot of money on professional massages. One massage could cost as much as the price of the Meteor.

Mark thought that what differentiated their product was that you didn’t have to use it on the floor. You could even use it lying in bed.

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Guest shark, Matt Harrington, asked how many total units had been sold. Jono said that they had sold 900 units and along with the Kickstarter, had made a total of $120,000 in sales. Kevin said that was not a lot.

Lori felt that the sales were not higher because the product was priced too high. Why was there such a high markup if their cost was only $40? Shaquille said their testing had shown the market was willing to pay a premium price. But Lori wondered if they had tested price points under $100. They hadn’t. Lori’s feeling was that they could have sold a lot more if it were priced under $100.

Mark disagreed, but Lori continued. She said there was always a price point freeze at $50 and $100. When you price under $50 and under $100, you sell a lot more product.

Matt asked about their vision for the future. Did they want to continue with direct-to-consumer sales or were they considering retail? Jono said he was open to retail sales.

Mark, after disagreeing with Lori about price points, explained why he thought a higher price could work. People who would buy this product already have experience using other tools that don’t work as well. They’re already educated about the category and they can see the perceived value in this new option.

Shaquille said their manufacturer told them they could likely get the cost down to $20 if they could sell 10,000 units.

Mark was ready to make an offer. He would give them $250,000 for 20%, but he would withdraw if the team were to consider offers from the other sharks. Matt asked if Mark would go in with him as a partner, but Mark declined.

Kevin interrupted and said he wanted to make an offer, and since Jono wanted to hear it, Mark dropped out – just as he said he would. Kevin would give them $150,000 for only 5% of the company, but would ask for a royalty of $1 per unit.

Matt wanted in, too. He said he could use his ability to reach the sports demo – which prompted Mark to tease Matt since he had a relatively low number of Instagram followers. That didn’t dissuade Matt, and he continued. He would offer exactly what the team had asked for: $150,000 for 10%.

Lori piped in. She wanted to know if they had goals to get the price down to below $100. If so, she would offer the same thing that Kevin offered.

The team had received so many offers that they wanted a moment to talk about it amongst themselves. When they came out of their huddle, they announced they would like to make the deal with Lori, which surprised all of the other sharks. But Jono liked Lori’s idea for getting the price down and wanted to work with her. He accepted Lori’s deal for $150,000 for 5% plus a $1 royalty.

Final Deal: $150,000 for 5% equity, plus $1 per unit sold until $500,000 recouped.

MyoStorm After Shark Tank

The MyoStorm team made their pitch in October 2019. Currently, the company has 10 employees and has an average monthly sales figure of $150,000. MyoStorm improved the original Meteor and now sells a 2.0 version that includes USB-C charging and an improved heat function. While the website shows the price as $149, It’s now on sale for only $99, which is exactly where Lori Greiner wanted it to be.
In a June 2020 interview, DePeri stated that the Meteor has a strong brand presence, helped by the fact that it’s an FDA medical device, which separates the product from the competition. He revealed that his team attends events where people can try the product, and that helps to strengthen the brand. Relationships with athletes that back the brand is also very beneficial.

Although MyoStorm’s sales surged directly after the Shark Tank experience – which is what usually happens after an episode airs – DePeri is happy with the slow and steady growth the company is experiencing today. His projection for 2020 revenue is $4 million based on the expected launch of several new products. DePeri believes that MyoStorm will see close to 100% growth each year for the next few years.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with MyoStorm, SharkTank, or any of its subsidiaries.

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Back 9 DipsShark Tank

Back 9 Dips: Shark Tank Updates in 2020

by Tom Bowen
written by Tom Bowen

The Basics

  • Company: Back 9 Dips
  • Owners: David and Dominique “Nique” Mealey
  • Asking Price: $150,000 for 15% equity
  • Final Deal: $150,000 for 25% equity
  • Sharks Who Took The Bait: Robert Herjavec and Lori Greiner
  • Season/Episode: Season 4, Episode 4

Back 9 Dips Before Shark Tank

David and Dominique “Nique” Mealey are a married couple from Tampa, Florida. They have a three-year-old son and a baby daughter on the way.

Back when Nique was pregnant with their first child, the economy tanked and David lost his job working as a Callaway sales rep and a PGA teaching pro for a local golf club. Realizing they needed to make an income, David started a BBQ catering company. He loved to cook and had considered becoming a chef earlier on in his career. The company became a success, and David even emailed radio shock jock, Bubba the Love Sponge, and asked if he could bring some of this BBQ to the station. Bubba and David had an instant connection and Bubba promoted David’s company whenever and however he could.

Even though the business as a whole was doing well, there was one dish that was everyone’s favorite. It was so popular that David and Nique knew it would be a hit if they brought it to market and sold it separately. They were coming to the Shark Tank because they needed a shark’s help to bring their product to the masses.

Back 9 Dips On Shark Tank

David and Nique walked into the tank and said they were seeking $150,000 in exchange for a 15% stake in their company. While they didn’t yet tell the sharks what their product was, they passed around plates from them to sample.

Nique stated that 1.25 billion chicken wings were consumed during the last Super Bowl, and that the second most popular food was chips and dip. Their product – called Back 9 Buffalo Chicken dips – was made by blending chicken breast with sauces. It was like chicken wings in a dip.

Daymond referred to it as a Chicken Slurpee and then Kevin said it reminded him of the classic SNL “Bass-O-Matic” skit, except it was chicken in a blender instead of fish. Kevin started to laugh so hard he was crying and kept referring to all of the poor chickens that lost their lives for the dip.

David said it was not that much different than chopping up chicken and making chicken salad, only the chicken was chopped a bit finer. Nique said, “I married him for this dip!”

Lori thought it tasted delicious, and after the sharks had stopped laughing and composed themselves, they took on a more serious tone.

Robert wanted to hear their story, so Nique hinted there was a life experience that made them realize they needed to find a way to make money. When asked what the experience was, she explained that David had lost his job the last time she was pregnant. They downsized their home, sold one of their cars and a lot of other personal items, but it had all worked out for the best.

Kevin was ready to talk numbers. He wanted to know about sales. David told him that they had made nearly $400,000 in less than two years, and they had close to 400 accounts. Recently, a big supermarket chain in Florida decided to give them a 60-store test with a weekly sales goal. As it turned out, they were hitting the weekly goal on a daily basis.

Then David told the sharks that the retail cost for the dip was $7.99-$8.99 per pound, and wholesalers could purchase it for $5.25. The cost to make the dips was approximately $2.50. To date, they had invested $150,000 in the company.

Robert was wondering if there was always a positive reaction to the dip. Nique said people loved it, and after tasting it, and they didn’t have an issue with the idea of blended chicken. Lori reiterated that she thought it was wonderful and that she loved the two of them. But she didn’t think she was the right person to get the dip into supermarkets everywhere. She was out.

Mark thought they would likely continue to do well, but he didn’t have the skills or experience to handle food distribution of this sort. It was not a fit for him, so he dropped out.

Kevin said he admired them and thought they had done a great job so far. But as an investment, it would mean a lot of risks. It didn’t work for him, so he was out.

Robert loved their story and admired what they had done, but said it was a brutal business, and that they needed a partner that could help them go down that road. He could offer advice and encouragement, but he didn’t believe he was the right person to lead them. He dropped out.

That left Daymond to consider a partnership. He started by saying it was such a hard decision for him, and that he had some regrets about not partnering with a contestant from last year that had gone on to make it big. But Lori interrupted him. She really liked David and Nique and thought maybe she could come back in if Daymond were to join her with a $150,000 offer for 25% equity.

But Daymond wanted to get his story out. He spoke about the time when he had no money, a little girl, and a pregnant wife. He had just needed someone to give him a chance and LL Cool J did that for him with FUBU. And when his second child was born, he was a millionaire. Despite recognizing that everyone deserved a chance, he still didn’t think he could go in on a deal.

After a few seconds of silence, Robert spoke up. “I think sometimes in life you just need a chance,” he said. He agreed to partner with Lori, even though at this point he couldn’t add a lot of value. The Mealeys said, “We won’t let you down,” and accepted the deal: $150,000 for 25% equity. The new partners hugged the couple.

Final Deal: $150,000 for 25% Equity

Back 9 Dips After Shark Tank

Bubba The Love Sponge had always been a minority partner in the business but that wasn’t brought up on the show. According to David, that wasn’t an issue for either Lori or Robert. The dip was eventually marketed as BUBBA’s Chicken Dip.

After the show aired, David said he was working on improving manufacturing, and Nique was handling marketing and community events. Sales spiked after the episode ran, and the Mealey’s continued to increase distribution into more stores. They were even able to sign a deal with Costco.

But it wasn’t long until they ran into a brick wall. The company had failed to disclose that anchovies – an allergen – were an ingredient in the dip, and they were forced by the USDA to recall 112,500 pounds of BUBBA’s Buffalo Blue Cheese Chicken Dip. At that point, the dip had been selling online and at grocery stores in Florida, Georgia, Illinois, Missouri, and Ohio. After the recall, the company couldn’t recover and is no longer in business.

Currently, David Mealey works as a Regional Sales Manager for Nat Sherman, a handmade cigar and “luxury cigarette” company. Nique is a Field Marketing Manager for a restaurant group in the Orlando area.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Back 9 Dips, SharkTank, or any of its subsidiaries.

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Shark TankTerra-Core Fitness

Terra-Core Fitness: Shark Tank Updates in 2020

by Tom Bowen
written by Tom Bowen

The Basics

  • Company: Terra-Core Fitness
  • Owner: Greg Nigro
  • Product: Air-filled exercise training equipment
  • Asking Price: $300,000 for 15% equity
  • Final Deal: $300,000 for 22.5% equity
  • Shark Who Took The Bait: Lori Greiner
  • Season/Episode: Season 11, Episode 8

Terra-Core Before Shark Tank

Greg Nigro calls himself the “Sultan of “Sweat” because he’s spent more than 20 years in the fitness industry. For many years, he was a Gold’s Gym franchisee and acted as an equipment salesman, a trainer, and a consultant.
He’s coming to the Shark Tank to pitch his new fitness product to make workouts more effective. The TERRA-CORE is an air-filled device that can make traditional exercises and moves work harder for you.

Before appearing on Shark Tank, Greg initiated a Kickstarter campaign for his product that did very well, but he needs a shark to help him take his business to the next level.

Terra-Core On Shark Tank

Greg, accompanied by two fitness demonstrators, walked up to the stage, looking like he had just escaped from one of the Zoltar fortune-telling vending machines. After asking for $300,000 in exchange for 15% of his business, Greg held up a crystal ball that he said would show the future of fitness.
But he quickly took off his costume and said he didn’t need a crystal ball to see that fitness trends are changing. Today, people want interactive apps and live-streamed content and versatile and easy-to-use equipment that will provide fast results and fun experience.

Greg then pulled down the sheet that was covering his product, called the Terra-Core. This one piece of equipment weighed only 28 pounds and was 46 inches long, but it could allow you to perform 100s of exercises in the space of only 3 square feet. The Terra-Core’s patented, dynamic, air-filled surface was comfortable and activated four times the muscle tissue as conventional exercise methods.

His two associates then demonstrated the range of exercises you could do using the Terra-Core – including bench presses, dead-lifts, bent-over-rows, burpees, planks, squats, lunges, and balance exercises.

terracore sharktank bandpress - Terra-Core Fitness: Shark Tank Updates in 2020

All of the sharks wanted to try it. Lori and guest shark, Anne Wojcicki, thought it was much more comfortable to do a plank on an air-filled surface. Anne asked about Greg’s background, and he told the sharks how he had worked in fitness for over 20 years as a franchisee for Gold’s Gym. When he finally decided to develop what he thought would be a better product for working out, he initiated a Kickstarter campaign in 2016 and started selling the units in 2017. The Kickstarter raised about $95,000, and his total sales to date were $2.1 million.

Lori asked where he sells his product. Greg told her that 38% of his sales were commercial, 38% were direct-to-consumer, and the remainder were International.

Mark wanted to know about costs – both the price and what it costs to make. Greg said he had been able to drop the price from $279 to $199. He had found that sales were much better when the price was under $200. The cost to make each unit was $73. All the sharks indicated they thought his costs were too high.

Lori asked if it was made in China. Greg replied that it was and that tariffs were built into the cost. He thought he might be able to get the cost down to $40-$45.

Kevin asked if he had made any money this year. Greg revealed that he had earned $850,000 in sales that year and had been able to break even. Next year, he projected $1.4 million in sales and a $200,000 profit. His company had an issue with cash flow, which was why it took longer to grow. Lori asked about his patent. Greg told her he had a patent for design and one pending for utility.

Daymond made the first offer. He would give Greg $300,000 for 40%! Kevin called that offer “savage,” but Daymond said he had seen many entrepreneurs come on the show and not ask for all of the capital they needed upfront.

Kevin then wanted to make an offer, but Lori interrupted him and asked if Greg had done any promotional marketing on social media. Greg said he would answer her question but first wanted to hear what Kevin would offer. Kevin said he would offer $300,000 for 15%, but he wanted a royalty of $20 per unit. Greg immediately seemed disappointed by Kevin’s royalty demand, but Kevin said the royalty would go away once he had made $1 million. That’s when Mark called Kevin a greedy savage.

And greedy savage he may be, but doesn’t he look great on the Terra-Core?

sharktank terracorefitness - Terra-Core Fitness: Shark Tank Updates in 2020

Daymond jumped in again to try to justify his offer, but Greg cut him off. He thought 40% was way too high. Daymond told Greg he could counter, but when Greg came back with 20%, Daymond laughed and didn’t think that was enough movement.

Anne spoke up. She told Greg her concern about the fitness industry was that fads come in, get big, and then just disappear. Did Greg have an app or a subscription coming?

Greg did have an app that includes workouts designed by his team. But there was also a highly engaged community that wanted to upload their own workouts. He was working on creating premium content and would like to eventually change to a subscription model.

Seo InsightsNexus Sponsorship 1024x341 - Terra-Core Fitness: Shark Tank Updates in 2020

Austin SEO Company – Serving the Nation

Out of nowhere, Daymond blurted out that he would go down from 40% to 30% in his offer. But Greg was still trying to defend his product against being called gimmicky. Lori jumped in to talk about her Simply Fit Board that made $100 million in one year and $180 million to date. Some of the other sharks thought her product was faddish, but she brushed them off.

Lori told Greg he could be tremendously successful if he made an infomercial. Then she made an offer: $300,000 for 22.5%. Daymond again repeated his counteroffer of $300,000 for 30%, which was odd because it was a worse deal than what Lori had presented.

Then Anne came in with an offer: $300,000 for 17%, but she wanted $10 per unit in perpetuity. When Kevin heard that, he tried to contrast his offer with hers, saying that his royalty would eventually expire.

But Greg wasn’t happy with the idea of offering royalties and pointed out that there were two offers that are simply straight equity deals.

Lori said she liked Greg and wanted to make a deal. She told him she thought her offer was a good one. Greg agreed and decided to accept Lori’s deal.

Final Deal: $300,000 for 22.5% equity

Terra-Core After Shark Tank

The Terra-Core episode aired in November 2019. It’s a bit too early to get a long-term sense of how the company is faring post the inevitable sales jump that occurs after appearing on the show. It is an expensive product, so that’s an additional burden for fast sales growth.

But with over 50,000 Instagram followers, the company is in a strong position to keep current and potential customers engaged. The Terra-Core “Tribe” has just over 1,900 members, and they keep in touch via a private Facebook group. If the company can find a way to develop premium content that would motivate people to accept a paid version of the app, that’s one way it can spur growth without having to rely on selling an expensive product. Perhaps Terra-Core could use some QVC help from Lori or maybe an infomercial, as she suggested.

 

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Terra-Core Fitness, SharkTank, or any of its subsidiaries.

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PMS BitesShark Tank

PMS Bites: Shark Tank Updates in 2020

by Kate Sparks
written by Kate Sparks

The Basics

  • Company: PMS Bites
  • Owner: Tania Green
  • Product: Specialty snacks for women, designed to treat PMS symptoms
  • Asking Price: $50,000 for 20% equity
  • Final Deal: No Deal
  • Season/Episode: Season 7, Episode 29

PMS Bites: Healthy Snacks for Women

Tania Green saw a need for a healthy alternative to the sugary, unhealthy snacks that women tend to crave as part of PMS symptoms. With more than 150 different PMS symptoms, women experience a range of aches, pains, and cravings during their particular time-of-the-month. The snacks available to them are limited and counterproductive, with sugar and fat leading to more bloating, more cravings, and discomfort. Tania knew from personal experience that she tended to crave sugar and salt the most, but she also knew she had a solution.

So she set out to create a vegan, gluten-free, and wholesome snack product – PMS Bites – branded and marketed exclusively toward women.

PMS Bites On Shark Tank

While most contestants launch into their product with minimal acting, Tania has a talent for playing it up. She takes center stage and sighs, her face visibly pained and her pretty eyes dulled by fatigue.  “Hi Sharks,” she says, grimly. “I’m Tania, I’m from Boston, and I’m seeking $50,000 for 20% of my company.” She looks pointedly at the sharks. “I know. I don’t look excited to be here at all. I am on the inside,” she says. And here the act begins to show. “It’s just that my back is killing me, I’m so bloated this dress may pop off, and I’m exceptionally hot,” she says, and fans herself with both hands. “That’s right, Sharks. I’m talking about PMS.”

Tanya lists off some disturbing statistics, informing the sharks (and the viewers at home) that a shocking 90% of women suffer from one or more of 150 known symptoms of PMS. According to Tanya, those symptoms can last an average of 7-10 days out of each month. “Thank about that number, Mr. Wonderful,” she says, addressing the most diabolical shark, Kevin O’Leary. “That’s a third of your year where you’d be even crankier than usual.”

On stage right, beside Tanya, is a table of pretty and delicious-looking snack treats with names like Coconutty, All Kinds of Nuts, and Plain Crazy. These delectable snacks are bite-sized, healthy, and contain a blend of herbs and nutritional supplements that can be effective in treating PMS symptoms – particularly bloating, cramping, and irritability.

Tania hands out samples of the delicious bite-sized treats, explaining that the main ingredients are dates, almond butter, and gluten-free oats.

PMSBites SharkTank2 HighRes - PMS Bites: Shark Tank Updates in 2020

Running the Numbers

While the sharks chow down on tasty samples, Tania dives into the financial details of her business.

  • Total sales to date: $13,400.07 “Every penny counts, Mark”
  • Revenue streams: Independent retailers, Equinox gyms
  • Time in business: 7 months
  • Wholesale price: $4.50
  • Retail cost: $7.00
  • Cost of production: $1.55
  • Profit margin: 66%

The sharks, clearly doing math in their heads, smell blood in the water. “Why isn’t it selling?” says Cuban. Mr. Wonderful himself pipes up from this throne of despair. “You’re the princess of small numbers,” he says.

Tania fights back. She says it’s not an issue with the product, but rather, with funding. She makes them, packages them, and delivers them herself on her bike. As someone who experienced debilitating PMS herself, Tania is passionate about the product. But Kevin is quick to point out that the product isn’t medicinal – it contains no actual medicine or pharmaceutical benefits, just a blend of herbs which could easily have no effect at all. “It’s just a bon-bon, right?”

Kevin also takes issue with the fact that she’s called the product PMS Bites, and marketed them exclusively toward women – thus eliminating half her potential market (excluding men and children). Tania counters that if she’d called them Tania’s Vegan Cookies, she wouldn’t even be standing in front of them today. The PMS angle is a marketing play, and one that clearly works.

Tania wraps up her defense by stating that she has prior experience leading marketing departments and branding departments for major companies – so she knows she can do the work – but she was never passionate about “selling someone else’s dream.” This is her dream, it works for her, and she knows other women will love it.

pmsbites on sharktank - PMS Bites: Shark Tank Updates in 2020

PMS Bites are made with dates, almond butter, and gluten-free oats.

The Bidding

Lori Greiner repackages Kevin’s earlier point in a prettier box, stating that her marketing demographic is just too narrow to be a safe investment. She gets why she markets exclusively to women, but she’s not comfortable with cutting out men and children from the potential customer base. She’s the first to drop out.

Robert Herjavec chimes in next, saying that he loves the marketing slogan and disagrees with Lori. He sees the value in her marketing strategy, and thinks she stands out as unique in the crowded healthy snacks market. But sadly, the numbers are just too small. He’s out. 

Barbara, likewise, doesn’t get a sense that Tania is really selling her product, doesn’t see the drive or ambition needed to generate big revenue and huge sales numbers. “I hear the words, but not the music,” she says, and drops out.

Kevin reiterates his earlier message, stating that Tania is the “princess of small numbers, but needs to be the queen of sales.” He doesn’t see that happening, so unsurprisingly, he’s out.

Mark Cuban drops out with some good advice and insightful analysis of Tania’s failings so far: he says the product should be heavily branded online, using social media as its main weapon of promotion. The product is a product marketed for women, and women are huge users of social media – so this product has viral potential. Where is that angle? Tania is missing that opportunity, clearly, and her misguided marketing focus makes Cuban hesitant about the entire business.

“You made a strategic mistake in focusing on retail,” says Cuban. “It’s inconceivable to me that you didn’t focus your marketing efforts online, in the viral arena. To do this, it would need to be an investment – not tuition. And it feels like tuition. So for those reasons, I’m out,” says Cuban.

Tania walks away with no deal – but her head held high, vowing to work harder than ever. 

Final Deal: None

PMS Bites After Shark Tank – Where Are They Now?

Tania Green left the sharks without a deal, but the experience made a lasting impression on her. She took the lessons learned on Shark Tank with her, and following the show’s air date, has been more determined than ever to make her brand a success.

Fascinatingly, her appearance on Shark Tank was not the last time she saw a shark. On vacation in Miami, after the show filmed, Green happened to run into shark Kevin O’Leary at a hotel pool bar. “I sent him a round of drinks with a note, which said, ‘Mr. Wonderful, it was such a pleasure pitching in front of you last season. You’re the best one. Please enjoy this round of drinks on me. Sincerely, the Princess of Small Numbers,'” she says. “He was like, ‘Did I really tell you that you were the princess of small numbers?’

(Apparently, he has no memory of his own reaction to Tania’s product, which is fitting, given that he most likely goes into a fugue state during filming. It wouldn’t surprise this reporter if Kevin O’Leary routinely forgets the scathing, soul-crippling remarks he makes to contestants who pitch their life’s work on the show.)

While PMS Bites are still available and the website is still up and running -with product available to sell – Tania says she is no longer trying to grow the business or expand marketing. She’s happy simply with where the product stands today.

The PMS Bites Instagram has a few thousand followers, but her social media presence has failed to generate the viral buzz Mark Cuban had hoped for.

“I see [the company] as my baby,” she says. “I hustled, I fought, I scratched for it, I really did. I can say to my grandkids that I was in Forbes [as part of a Shark Tank article]. It was really fun. I would totally do it again.”

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with PMS Bites, SharkTank, or any of its subsidiaries.

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Boom Boom Nasal InhalersShark Tank

Boom Boom Nasal Inhalers: Shark Tank Updates in 2020

by Tom Bowen
written by Tom Bowen

The Basics

  • Company: Boom Boom
  • Owners: Chelsea and John Pinto
  • Product: Energy Nasal Inhalers (Pocket Aromatherapy Products)
  • Asking Price: $300,000 for 10% equity
  • Final Deal: None
  • Sharks Who Took The Bait: None
  • Season/Episode: Season 10, Episode 4

Boom Boom Energy Before Shark Tank

John and Chelsea Pinto are two entrepreneurs from Los Angeles, California. While on a trip to Thailand in 2010, they saw that many people were carrying around nasal inhalers for the purpose of providing enough energy to party until dawn. Wanting to learn more, they talked to some locals who told them a Muay Thai fighter used a nasal inhaler to get back up after a big knock-out.

They were inspired to create a similar product for the U.S., so once they returned, they worked with chemists and medical professionals to develop a nasal inhaler that would offer the same benefits as those they saw in Thailand, but include healthier ingredients.

Their product, called Boom Boom Inhaler, was selling on Amazon when John and Chelsea initiated an Indiegogo crowdfunding campaign. Their goal was to get their product into retail stores.

The Pintos decided to pitch their product on Shark Tank because they had been seeing healthy growth and wanted to get more exposure for the brand. They figured appearing on the show would increase awareness for the inhaler, but they knew that additional investment could bring the product to the next level.

Boom Boom Energy On Shark Tank

John and Chelsea walked onto the stage and asked the sharks for $300,000 in exchange for 10% equity in their company. What they were pitching was what John called, “a new best friend for your nose.” He said it was time to turn breathing into money.

Chelsea continued, saying that eyes have eye drops, mouths have mouthwash, and lips have lip balm. However, there wasn’t an everyday healthy and safe product for your nose. Their all-natural nasal inhaler was made from essential oils, menthol, and other stimulating scents. While most nose products were made for congestion or allergies, Boom Boom was intended for intense refreshment and rejuvenation. They then demonstrated how to use the product by uncapping the tube, placing the barrel at the nostril’s tip, and inhaling deeply.

John said it was like chewing gum for your nose, but was ten times mintier and more refreshing. Once you inhale, you experience a cooling, tingly sensation.

The sharks wanted to try it, so the Pintos passed samples to them. All the sharks seemed to be significantly invigorated, and many shouted, “Whoo!” after inhaling. John explained that they offered five scents – all with similar intensity – but that Tropical Rush was their best-seller.

boomboominhaler sharktank marccuban - Boom Boom Nasal Inhalers: Shark Tank Updates in 2020

Robert asked if there were other products like theirs. Chelsea said there were two other inhaler brands, but they were more medicinal and earthy, rather than fun and vibrant. Guest shark, Charles Barkley, asked about their sales numbers. John told them the company made $754.000 the previous year and was on track to make $1.1 million during the current year.

Lori asked where they sold the inhalers, and Mark wanted a breakdown of sales channels. John said 20% of sales were direct-to-consumer on their company website, Amazon contributed to 30% of total sales, and 45% were sold to wholesalers and other distributors. Charles asked about their costs. John told him a single pack costs 70 cents to make, and they sold it on their website for $7.95. Net profit the previous year was $125,000 after John paid himself a salary.

Charles also wanted to know where it was made. John said it was manufactured in southern California. Kevin asked why they didn’t take manufacturing offshore so they could lower their costs. John replied that, at scale, they could bring costs down by 25%. They had decided to keep manufacturing in the U.S. because they wanted to ensure the ingredients were safe and high-quality.

Mark asked what they were charging wholesalers. John told him the wholesale price was $1.50, and Kevin told him that wasn’t a good margin. The news got even worse when John said the retail price was $3.99. Kevin was astounded that they were selling at a much higher price point on the website, and the low retail price was undercutting their margins. John said he had tested price points between $3.99 and $5.99 at retail and had found that $3.99 tested best for what was considered an impulse buy at retail.

Charles asked if this was their full-time job. It was for John, but Chelsea worked as a dentist, so she was only available part-time for the product.

Kevin was still stuck on the price differential between the website and retail. He told them their margins in retail suck. But John defended his retail pricing strategy because the product is more of an impulse buy at retail stores.

boomboom energy nasalinhalers 300x300 - Boom Boom Nasal Inhalers: Shark Tank Updates in 2020

When asked if he had other partners, John said there was a cofounder who received the same amount of equity as he did – 36% – and that two other investors contributed $200,000 for 25%.

Charles pointed out that they wanted more funding from the sharks in exchange for less equity, but John defended that decision because the product was currently making good sales. It had more value now than it did when the original investors chipped in. But Kevin rebutted, saying there was value up here (the sharks) too. Kevin continued. He said he was intrigued by the product and how well it had sold thus far but couldn’t justify giving them $300,000 based on a $3 million valuation. He was dropping out.

Lori was also impressed by what they had accomplished but was concerned about giving them $300,000 for a product that may only be bought one time. It didn’t resonate for her, so she was out.

Charles thought the product was neat, but not something a person would use on a consistent basis. Before telling the two he was going to take a pass, he urged Chelsea not to quit her job as a dentist.

Mark didn’t feel that the valuation was too high, but he had a problem with the margins – particularly if they were planning to expand heavily into retail. He was out.

Robert really liked the product – and noted that most of the other sharks did too but had a problem with its valuation. He would offer $300,000 for 36% – the same amount of equity owned by John. He stated he couldn’t get to the $3 million valuations at a lower margin. At that point, Kevin told the PIntos they had asked for too much cash.

John said he couldn’t give away that much equity. He asked if Robert would accept 15%. Robert immediately said, “no.” He didn’t want to negotiate down from that number.

John countered again. He said the highest he could go was 20%, but Robert said he couldn’t do that. The Pintos left the stage without having made a deal.

Boom Boom Energy After Shark Tank

Despite not securing a deal with a shark, Boom Boom Energy seems to be thriving. Besides selling on the company site and Amazon, the product is now sold at Walmart, which is quite an achievement!

On the website, the price for a one-pack is still $7.95, but if you buy multiple packs, you can save money. The price for three tubes is $19.95, and for five tubes, you’ll pay $29.95. You also have the opportunity to make your own pack and choose among the brand’s five scents. The reviews for the inhaler are mostly positive.

The retail price at Walmart is still way below what a tube costs on the website. A one-pack at the retail giant costs $4.76, which is 60% below unit pricing on the site. However, Walmart offers only one of the scents – Wintermint.

Although sales figures aren’t available, Boom Boom has made a big impact on social media. The company has 42,000 Likes on Facebook and 102,000 followers on Instagram! Is this a sign that people are buying the inhalers more than just one time? If the product does actually increase energy, there’s reason to believe the Boom Boom Inhaler could easily rack up repeat purchases.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Boom Boom, SharkTank, or any of its subsidiaries.

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MuvezShark Tank

Muvez: Shark Tank Updates in 2020

by Kate Sparks
written by Kate Sparks

THE BASICS: 

  • Company: Muvez
  • Product: Convertible indoor-outdoor slippers with removable soles
  • Owners: Ryan and Eric Cruz; Kevin Zamora
  • Asking Price: $200,000 for 15% equity
  • Final Deal: $200,000 for 25% equity
  • Shark Who Took the Bait: Daymond John
  • Season/Episode: Season 11, Episode 18

Muvez Like Jagger 

Ryan, Eric and Kevin are out to revolutionize the shoe game with their innovative footwear brand, Muvez. They’ve come to Shark Tank this season to pitch a 2-in-1 shoe that functions as a comfortable athletic shoe outdoors and a cozy slipper indoors. The shoe features a removable rubber sole and an assortment of sleek, visually appealing designs.

Inspired by New Jersey mob wives who insist that everyone take their shoes off while they’re in the house, Muvez aims to tap into a massive market and make their convertible slipper a household name.

Muvez on Shark Tank: Episode Recap

The trio enters the tank with what can only be described as understated swagger, wearing complimentary blazers and launching right into their pitch without a moment’s hesitation or any visible signs of fear. Eric and Ryan are brothers, but the Muvez team also includes their best friend Kevin. They’re seeking a $200,000 investment in exchange for a 15% stake in their company.

Their product was born as a solution to a common household frustration with shoe rules. Going barefoot or shuffling around in stocking feet is great for keeping household dirt at bay, and you can avoid tracking dirt all over the home. But it gets annoying when you have to put your shoes back on and lace up your boots every time you want to go outside for even just a quick trip to the corner store or to the curb to take out the trash. So to solve this problem in a creative way, they created Muvez shoes with a lightweight rubber sole that is fully removable and re-attachable, that you can take on and off with ease.

Muvez footwear is the only footwear on the market with dual sole technology. The innovative slippers are engineered to grip the foot through a range of standard movements, including walking, running, and jumping.

muvez slippers on shark tank 1024x512 - Muvez: Shark Tank Updates in 2020

Running The Numbers 

The guys hand out samples to the sharks and discuss the numbers, while Robert and Kevin demonstrate the ease of taking the shoe on and off.

  • Cost of production: $26 landed 
  • Retail price: $110, including shipping 
  • Sales To Date: $73,000 
  • Revenue streams: Online, E-commerce (no marketing spend yet)
  • Profit margin:

“This is cool as hell,” says Daymond, visibly impressed with the product as he fawns over a pair of Muvez with Kevin in a corner. They have a less than 2% return rate.

But success hasn’t come without setbacks. They traveled to China to visit their first factory, and were told their product was impossible to make after they’d already sunk three or four months of production into it. They ended up buying supplies from a hardware store in New Jersey and making a mold based on Kevin’s foot. It wasn’t glamorous, but it was strong enough as a proof-of-concept to garner early investment.

The team says they’re hoping to position themselves as post-game footwear, with a focus on the athleisure market. The sharks seem to take issue with this assessment, as they’re not sure if the practice of wearing slippers outside is an American-athletes thing, or just a New Jersey thing. Nonetheless, some of the sharks are showing a strong interest in the brand, and the bidding is sure to be interesting.

The Bidding 

Kevin is first to go out. “It’s not that the valuation is crazy, it’s that the risk is crazy.” He thinks the market is too tough and doesn’t have enough confidence in the marketability of the product.

Similarly, Robert takes issue not with the product or the design – which he loves – but with the branding. He suspects that branding and marketing are going to prove immensely difficult. Robert is next to duck out.

Mark Cuban chimes in third, saying that while he, too, loves the product and appreciates the originality of their pitch, he knows marketing is going to be a beast. He doesn’t see an angle to push the product without burning mountains of cash, and he wishes them the best.

Lori thinks the product is brilliant, but she’s uncertain and a little afraid of the risk involved. She meets the boys in the middle and says that if they can get another shark to go in on a deal with her, she’ll bite.

Daymond John, as the founder of Fubu,  is an expert in this field and knows how hard it can be. “You don’t want to do this yourselves,” he cautions. They’re going to need serious licensing help. He can give them the full $200,000 – but for 1/3 of the company, twice their original offer of 15% equity.

Lori isn’t comfortable making a counter-offer on her own, and given that Daymond just threw her under the bus, Lori bows out.

After a moment’s negotiation, the boys get Daymond to come down from 33% to 25%, and a final deal is reached.

Final Deal: $200,000 for 25% stake in Muvez.  

Where Are They Now? 

Since this episode aired just a few short months ago, Muvez has graced the pages of Inc Magazine, USA Today, Yahoo, and CNBC. They’ve acquired strategic partnerships with Instagram influencers, athletes and teams including basketball star Langston Galloway, NBA’s Detroit Pistons and Salvador Amezcua (aka Kickstradomis), who boasts nearly half a million followers on Instagram alone.

As expected, Muvez has experienced the coveted Shark Tank Bump – a significant boost in sales that all brands experience after their episode airs, regardless of whether or not they struck a deal. That retail bump has allowed them to expand their product line, with a new women’s line opening in August of 2020. The full Muvez product line currently includes:

  • Men’s Original Muvez Slipper – assorted colors ($99.95)
  • Muvez Slipper at Unlocked Shark Tank Price – assorted colors – ($79.95)
  • Women’s Muvez line – coming August of 2020

The future looks bright for Muvez, and the founders should be proud. They struck the deal of a lifetime with Daymond John, and that deal is already paying serious dividends, earning the otherwise-obscure brand tons of great press and skyrocketing sales.

For now, it would seem, the boys can take their shoes off and stay awhile. 

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Muvez, SharkTank, or any of its subsidiaries.

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PDX Pet DesignShark Tank

PDX Pet Design: Shark Tank Updates in 2020

by Kate Sparks
written by Kate Sparks

THE BASICS

  • Company: PDX Pet Design
  • Product: High-end grooming and pet products for cats
  • Owners: Tara and Jason O’Mara
  • Asking Price: $300,000 for 15% equity
  • Final Deal: No Deal
  • Sharks Who Took The Bait: None
  • Season/Episode: Season 8, Episode 12

If you saw the greatest hits episode from the most recent season of Shark Tank, you probably recall seeing a very bizarre, surreal product called the Licki Brush. Perhaps, like me, the image of Robert Herjavac holding a giant rubber brush in his mouth and attempting to groom a housecat with his own tongue is burned indelibly into your mind’s eye. Perhaps, like me, you became fascinated almost instantaneously by this archetypal moment of Shark Tank debauchery and knew you had to explore the company in more depth. One thing led to another, and soon you were watching Jimmy Kimmel’s viral tweet about the Licki Brush Kickstarter campaign and absentmindedly scrawling #lickibrush in lipstick on your bathroom mirror. If cats and cat products that bespeak a certain psychotic level of loneliness are your wheelhouse, you’re on the right blog. Read on to learn more about this kooky pet product brand, and where they are now.

Cat Ears Are Always A Great Sign

First into the tank on this episode – the 12th episode of Season 8 – the two owners of PDX Pet Design stride onto the stage dressed in adorable headsets with fluffy cat ears poking out from the headband. This is surely a sign of greatness to come.

Tara and Jason O’Mara are the founders of PDX Pet Design, and they’re seeking $300,000 for a 15% stake in their company.  “Jason and I are from the generation that was raised with computers,” says Tara, her innate nerdiness gleaming somehow from both her eyes and the fuzzy ears atop her head. “We met online, we got married, and you know what happens next.” They adopted more cats, of course.

Disappointed with the quality and longevity of most pet products on the market, Tara and Jason envisioned a pet product company that would make lasting products designed not only to entertain your cat but to improve your kitty’s lifestyle, improving your relationship with your cat in the process.

Their first product, Shru, is a smart toy that keeps kitty entertained at home while you’re out for the day. It’s an oddly comforting product, simple and sleek in its design: just a small white egg with a feather attached that mimics a small animal’s natural motion – thereby helping to ignite your kitty’s inner tiger.

So far, so good. Their next product, though, is where things start to go off the rails. 

“There’s evidence to suggest that your cat thinks you’re just a really big cat, not a human,” says Tara. (A fact which just happens to be one of this reporter’s favorite cat facts.) Grooming is very important to cats and strengthens their intimate bonds, so they see no reason why human owners should be left out of the process. Jason ducks behind the product display and scoops a black and white kitty for the purposes of demonstrating. The camera pans to the sharks, who have begun narrowing their eyes and giving the presenters quizzical looks. Nobody is quite willing to admit where this is headed.

“With the Licki brush, you can finally lick your cat like a mama cat licks her young,” says Tara. In a gesture that conveys both his own deep shame and a more global embarrassment for all humanity, Mark Cuban is seen closing his eyes and putting his face in his palm. 

“You’re not going to stick that in your mouth, are you?” says Kevin.

“Oh, yeah,” says Tara, before promptly doing so, and administering a few truly bizarre, disgusting licks to the kitty’s backside.

At this point, the sharks are heard groaning, screaming, and whimpering in mixed disgust and pain. “Oh, they’re freaks!” says Daymond John, as if a lightbulb has suddenly lit up above his head and made sense of the world.

The bidding, we can safely assume, is going to be a catastrophe. 

PDX Design On Shark tank licki brush - PDX Pet Design: Shark Tank Updates in 2020

Running the Numbers

While Jason passes out samples to the incredulous sharks, Robert explores new levels of his own self-loathing. “I hate myself so much right now,” he says, after a few licks of the Licki brush. Mark and Kevin, meanwhile, dig into the numbers.

  • Current valuation: $2 million
  • Total sales to-date: $250,000 of SHRU; and $52,000 worth of Licki Brush
  • Retail price: For SHRU – $119; for Licki – $19-24
  • Projected annual sales for current year: $180,000

The sharks are stunned at the retail price for the company’s seemingly budget-friendly cat toys. “It has a computer inside,” says Tara, playing solid defense. Plus, with five other product designs in the works, Jason and Tara have every intention of maintaining their brand’s buzzworthy, internet-happy virality. “We know how to talk to people on the internet about cats,” says Tara. Before starting PDX Pet Design, Jason was an electrical engineer and Tara was pursuing a PhD in neuroscience at the University of Waterloo, Kevin’s old alma mater.

“Are you a Canadian?” says Kevin.

“I sure am,” says Tara.

“I’m going to make sure they throw you out of the country.” 

The Bidding

Lori makes a valid point right off the bat, reminding people of the danger in seeing virality as more valuable than it really is. “Everybody wants to go viral. And you say you went viral. But you sold only $250K on the Shru, and $52K on the brush. If you’re really going viral, your sales should be higher.” And with that, Lori drops out.

Robert drops out next, agreeing with Lori. “Sales aren’t there. I’m out.”

Mark Cuban, as usual, has the most insightful take and the most helpful advice, doled out as he drops out with class. (In case you can’t tell, Mark Cuban, I love you.) “This is clearly more than a business for you – it’s part of your personality. You’ve had fun with it, you’ve owned it. You’re looking for a big break. But you didn’t price it as a big break.” The other sharks are seen nodding in agreement.

“If you had come in saying, believe in us, asking for 50 grand for 20% of the company, we all grow together – I think we’d all be in. But 300K? That’s too much. For those reasons, I’m out.”

Daymond is second-to-last to drop out, referencing the overvaluation and encouraging the pair to work it out for themselves.

Mr. Wonderful himself (Kevin) is last to drop out, saying that he worries about the valuation and what people will think of his sanity. 

Final Deal: No Deal

Where Are They Now?

PDX Pet Design has come a long way from its laughingstock origins and its humble Kickstarter campaign. Amazingly, they are still open and fully operational, as of July 2020.

The brand maintains a lively social media presence, amplified by legions of buzzing fans and lots of engagement – just take a look at their  Instagram, Twitter and Facebook pages to see recent updates, cat facts, and cute, Instagram-approved shots of snoozing kitties.

Jason and Tara still attend CatCon each year – yes, that’s a real thing, and apparently it’s where “cat culture and pop culture converge.”

The PDX Pet Design full product line now includes:

    • SHRU Intelligent Cat Companion ($119)
    • Licki Brush ($25)
    • SHRU feather and tail attachments ($6 each)

While the Licki Brush may have been one of the strangest pitches in the history of Shark Tank, it’s definitely not a failure. The brand is still going strong, and for now, at least, PDX remains a serious contender in the niche market of boutique pet grooming products. All products are currently available to purchase online directly through the PDX Pet Design website.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with PDX Pet Design, SharkTank, or any of its subsidiaries.

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Just the CheeseShark Tank

Just the Cheese: Shark Tank Updates in 2020

by Kate Sparks
written by Kate Sparks

THE BASICS: 

  • Company: Just the Cheese
  • Owner: David Scharfman
  • Product: Baked cheddar cheese snacks  (with no carbs, gluten, or sugar)
  • Asking Price: $500,000 for 5%
  • Final Deal: No Deal
  • Sharks Who Took the Bait: Lori, Kevin, Mark
  • Season/Episode: Season 11, Episode 19

Just the Cheese, Please 

David Scharfman grew up in a family of cheesemakers. As you can imagine, his childhood and adolescence were full of formative experiences involving cheese and cheese-related psychology. He understands the insatiable American appetite for cheese, and he aims to fill that appetite with a simple, wholesome, and delicious baked product, helped along by some great marketing and, as you’ll see in this episode, some really excellent cheese-themed apparel.

He’s here on Shark Tank, at top of Season 11, Episode 19, to pitch his family’s new product. With over a million dollars of his family already invested and hundreds of jobs on the line, David has the world to gain on this pitch – and everything to lose.

Just the Cheese on Shark Tank: A Quick Recap

David Scharfman makes one of the most memorable entrances in shark tank history by strolling casually on stage wearing a red suit, a yellow cheese-tie (replete with Swiss holes), and a yellow top hat made out of what appears to be – you guessed it – cheese.

But more astounding than the cheese-themed costume is David’s asking price: he’s seeking $500,000 for just 5% equity.

That’s a lot of cheddar, but surely there’s a reason for such a steep price tag. David goes on to pitch his product in all its brilliant, delicious-sounding detail. Essentially, his product is a snack bar made out of baked cheddar cheese. For those of you who’ve ever longed to eat the cheese out of a pan after making a grilled cheese sandwich, this product is for you.

“No rice, no fillers,” David says while demonstrating the pure Wisconsin milk and golden cheddar cheese that gets baked into each cheesy snack. Three bright and colorful bags of snacks decorate his display table: one for grilled cheese, one for spicy Jalapeno cheese, and one for aged cheddar, their top-seller. It’s the perfect grab-and-go snack, and a huge hit with fans of Keto and low-carb diets.

Lori admits she’s had the product before, a great sign which impresses the sharks. She bought her boxes of the delicious low-carb snack off Amazon. “We sell between 400 and 700 boxes a day on Amazon,” says David, confirming a promising online sales business. At just 75 calories per bar, 4 grams of protein, and a veritable smorgasbord of gluten-free, sugar-free health perks, this snack has market potential galore.

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Running The Numbers 

While the sharks munch away on the tasty cheesy snacks, David answers questions about retail sales, cost of production, and profit margins.

  • Annual sales, prior year: $3.5 million
  • Annual sales, year-to-date: $3.7 million, with four months left
  • Retail stores: 700, plus 1,300 convenience stores
  • Production cost: $0.95 per unit
  • Retail: $1.99
  • Profit margin: 17-20%, depending on SKU (stock-keeping-unit or barcode price)

Just the Cheese has two main competitors on the market – one of them puts quinoa, brown rice, and oat bran in their product, which makes their product cheaper to make, and more reminiscent of a traditional cracker.

The company is entirely self-funded and has raised no previous investment capital. So far, David estimates they’ve invested a total of $1 million of their own money.

The product is suffering from terrible margins, and Robert is eager to know what the long-term plan is for making more profit. David explains that if he sells 40,000 boxes a month, his production cost drops from 95 cents to 76 cents, substantially increasing his profit margin.

In essence, the more he grows, the more he profits.

The Bidding 

Just the Cheese will go down in history as one of the most fascinating bidding wars that ever transpired on Shark Tank. it involves multiple offers, counter-offers, a notepad for doing basic math, and plenty of merciless truth bombs from Mark Cuban.

Kevin is first out of the gate to express genuine interest. He doesn’t have a cheese maker in his portfolio, and he’s intrigued by the product’s potential with Keto dieters and low-carb conscious markets.

This is Kevin we’re talking about there, so you know he’s going to try to work royalties into the deal somehow, and Mark Cuban is going to emasculate him for trying to bilk this poor, unsuspecting cheesemaker out of every last penny he makes.

Kevin’s offer: $500,000 for a 20 cent royalty. In exchange, David gets the full range of Kevin’s formidable marketing and distribution skills.

Robert, meanwhile, congratulates David for being one of the fastest 0-to-1 million in sales companies they’ve ever seen on the show but confesses he just doesn’t like the taste of the product. It’s nothing to do with the business, just a matter of personal preference. Robert is first to drop out.

Guest shark Daniel Lubetzky (founder of Kind bars) is next to drop, saying that he thinks David has a superior brand but that the market is still emerging and there will be more and more competitive entrants to the field as time passes.

Lori has similar concerns and expresses her uncertainty about who will ultimately be the leader in the low-carb, Keto-friendly snack market. At half a million dollars for just 5%, Lori doesn’t feel solid enough to invest – and she’s the third to drop. (Or so it seems…for now.)

Mark Cuban, as usual, comes to the table with the smartest and most perceptive argument against investing. He’s obviously been doing math and running numbers of his own while Kevin was making his predatory pitch.

“At a $10 million evaluation, even if you sell the company for $50 million, and I get five times my money back, my total upside is still only $2.5 million over $500,000. That’s not enough for the risk that’s involved.”

Damn, Cuban. That’s some cold hard truth right there.

Surprisingly, Lori jumps back in at this point. She wants to undercut Kevin’s ridiculous royalty offer. She says she’ll give $500,000 for just 15 cents a bar, as opposed to Kevin’s 20 cent royalty fee.

David asks for a pen and paper so he can work out a reasonable deal, and puts Kevin squarely in his place. If he gave Kevin 20 cents a bar just based on his previous year’s sales, Kevin would make $360,000. “That seems, for lack of a better word, nuts.”

“I really like David,” says Mark.

David comes back with a revised offer of his own – he thinks a nickel is reasonable for each bar, but not in perpetuity as Kevin and Lori have proposed. Strictly for ten years. A nickel a bar, for ten years. That’s it.

Mark Cuban now jumps back into the mix, cutting out royalties entirely. “I’ll give you $500,000 for 15% equity.”

After a rollercoaster of bidding, and a moment to consider each deal with intelligence and clarity, David politely – and respectfully – declines all offers.

Final Deal: No Deal. 

Where Are They Now? 

It’s only been a few months since Shark Tank aired, but the business seems to be doing well, with a lively website and multiple online retail options, a thriving Instagram page, and tons of great press from The New York Times, Buzzfeed, and Greatist. 

All businesses receive a significant boost in sales after appearing on Shark Tank – it’s called the Shark Tank Bump – whether they make a deal or not.

The brand visibility and national notoriety that comes from appearing on NBC during primetime hours can’t really be overhyped or overemphasized. Just the Cheese did themselves a huge favor by appearing on the show, even though David Scharfman was shrewd and savvy enough to reject all three deals the sharks offered.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Just the Cheese, SharkTank, or any of its subsidiaries.

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CinnaholicShark Tank

Cinnaholic: Shark Tank Updates in 2020

by Kate Sparks
written by Kate Sparks

THE BASICS: 

  • Company: Cinnaholic
  • Owners: Shannon and Florian Radke
  • Product: Gourmet vegan cinnamon rolls
  • Asking Price: $200,000 for 20% equity
  • Final Deal: $200,000 for 40% equity
  • Sharks Who Took the Bait: Robert Herjavec
  • Season/Episode: Season 5, Episode 28

Cinnaholics Anonymous 

Shannon and Florian Radke knew two heads were better than one, so they pooled their collective talents and came up with a truly sweet idea: gourmet vegan cinnamon rolls, 100% free of dairy, lactose, and eggs. Florian’s background in branding and marketing, combined with Shannon’s background as a gourmet baker, made for a natural collaboration. The company offers a dazzling menu of delectable desserts, with scrumptious flavor combinations like almond-and-raspberry, banana cream pie, and strawberries with cream.

With dreams of franchise expansion on the horizon, they decided to try their luck on Shark Tank back in 2014.

Cinnaholic on Shark Tank: A Quick Recap

Robert’s face looks like a kid in a candy shop in this episode, thanks to Florian and Shannons’ mouth-watering display of custom cinnamon rolls and toppings laid out on display. “You can choose from over 30 different toppings,” says Florian. They’ve prepared a tray of cinnamon rolls for the sharks, each one customized to showcase the brand’s versatile menu. First up, they’ve chosen a caramel banana cream pie for Robert. For Barb Shark, it’s a mocha almond roll. Then Kevin, with a classic old-school roll and strawberries. A coffee cookie dough roll goes to Daymond, and last but not least, an almond raspberry roll goes to Mark.

“Shannon, it’s…incredible,” says Robert, before they can even finish handing out samples.

As you can imagine, these aren’t diet snacks. The typical old school roll contains a whopping 485-500 calories, depending on the size of the roll. But amazingly, Shannon says, that’s half the calories of their competitor. Mark is seen losing himself in a bite of his almond raspberry roll while Shannon and Florian continue pitching their delicious bakery brand.

“We’re here because we need your investment to open a second location and start our cinnamon roll empire,” says Florian.

Their current location, they clarify, is in Berkeley, California, in a cute little brick-and-mortar store that measures just 650 square feet.

Cinnaholic Shark Tank Success Story 1024x1024 - Cinnaholic: Shark Tank Updates in 2020

Running The Numbers 

As the sharks chow down, they question the Cinnaholic team and dig into the burgeoning business’s financial details.

  • Total sales at Berkeley location:  $260,000
  • Net sales: $45,000 or 17%
  • Cost of single roll: $5.50
  • Revenue streams: Berkeley location, plus a tiny online store to accommodate demand

The sharks can’t quite believe the cinnamon rolls are vegan. They’re too delicious, it seems, to be dairy-free, gluten-free, egg-free and 100% vegan. But somehow, miraculously, they are.

“There’s 50 million people in America with a dairy intolerance,” says Florian. “And another 5 million people with severe food allergies. Most of those people are kids. So we get a lot of moms coming in with special requests for their kids.”

Sharks are curious if they have a long-term plan for bigger sales that involves more than just brick-and-mortar locations, or if multiplying stores is their whole end-game.

“What do I get for $200,000?” Robert wants to know.

“For $200,000 you get another store in San Francisco, and from there we go into franchising.”

Robert notes that the team valued Cinnaholic at $1 million, but can only $45,000 in profit to an investor – which means they’re asking 22 times their pre-tax profit.

“For a cinnamon roll store,” he adds at the end, just to be mean.

The Bidding 

Barbara says she’s been spoiled rotten by the success of one of her other food investment ventures, a food truck business called Cousins Lobster that does over $800,000 a year in sales. “Because of that, I’m out,” she says.

Daymond John is up next, and he says that although he’d love to be in this space – and although he’s insanely jealous of Barb Shark’s food truck success – he just doesn’t feel comfortable with their numbers. He’s the second shark to drop out.

“This is so much like Wicked Good Cupcakes in Boston,” says Kevin, spying his opportunity.

“Here comes a bloodsucking offer,” says Daymond.

“A cupcake business very similar to yours decided to change their model from brick-and-mortar to shipping,” says Kevin. And what happened? Their sales skyrocketed from $15,000 to $300,000.

Kevin suggests a similar change to their business model which could allow them to ship packages of six rolls overnight.

Robert is skeptical of the numbers because a $200,000 investment gets poured directly into a second brick-and-mortar location, and then that money’s gone. If it succeeds and you need to expand, you still need to pour more money into the venture. It’s a very expensive proposition, especially with a $1 million valuation that he frankly doesn’t see coming to fruition.

He offers $200,000 but for twice their original equity offer – he wants 40% – and he doesn’t want to open a second location. Instead, he wants to box ’em up real nice and pretty-like, and ship ’em out to hungry cinnaholics all over the country.

Kevin then counter offers with a fairly impressive deal: he’ll give them $200,000 for no equity at all, but he wants $1.20 per unit in royalties, and then down to $0.60 cents after his investment is recouped. These royalties would be collected in perpetuity.

“In perpetuity means forever,” says Robert, eyes gleaming as if to say please don’t take Kevin’s horrible, awful, no-good, very-bad deal. 

After a moment to discuss in private, Shannon and Florian return to the stage and accept Robert’s deal.

Final Deal: $200,000 for 40% stake in Cinnaholics.  

Where Are They Now? 

For Cinnaholic in 2020, business is booming. Cinnaholic has expanded to dozens of locations across the entire United States, with an especially strong presence in the South and along the East Coast. Their headquarters have moved from Berkeley, CA to Atlanta, GA. 

The Cinnaholic website offers a dizzying array of frostings, toppings and sweet treat bakery options.

As their website proudly states:

In addition to our signature, fresh-baked cinnamon rolls, our menu features bite-sized Baby Buns, cookies, brownies and raw, edible cookie dough. We proudly serve locally sourced coffee (at most locations), and offer many customizable catering options.

In addition to the standard menu items, Cinnaholic now offers Party Trays, Cinnamon Roll 4-Packs, and Gift Cards. Their entire menu is available to purchase online or at any on of their franchise locations.

In the long and heartbreaking history of Shark Tank, Cinnaholic is one of those truly sweet delicacies – a success story.

Disclaimer: The information provided in this article is strictly informational; Seo Insights is not affiliated with Cinnaholics, SharkTank, or any of its subsidiaries.

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