Shark Tank Recap: “Pillow” Children’s Clothing Spark Lori-Daymond Competition (10/12/12)
Shark Tank gets extra competitive tonight as two sharks outbid each other on a very promising investment opportunity. Let’s check out how the entrepreneurs hold up in the company of Kevin O’Leary, Lori Greiner, Daymond John, Mark Cuban and Robert Herjavec.
Aly Lessor owns Cozy Bug, a children’s clothing line that targets the needs of growing children. The clothes are designed to be adjusted to make room for the changing body sizes of its young users. Aly needs $50,000 in exchange for a 25% stake in her company.
Aly is currently the sole employee in her own firm. Her 20-year sales background is her strength. She plans to make Cozy Bug an international brand. A dress costs $6 which she currently sells online. She claims to have sold over $300,000 of her product in just a month. Apart from her current line, Aly has launched children’s dance clothes. Robert and Mark think it would be better if Aly concentrates on the casual clothing line. Lori thinks it’s good that Aly’s expanding her product line.
Mark argues that concentrating on a niche market is better and since Aly is decided on pushing for the dance clothing line, Mark pulls out his support. Robert refuses to invest for lack of expertise in this area. Kevin’s offering $50,000 plus a $2-cut for every unit sold until he gets back his investment; after this, he will just take a $1 royalty in perpetuity. All of these are under the condition that Aly will only produce the casual clothes. Lori offers $50,000 in exchange for 30% equity and promises Aly to take her company nationwide via QVC and make her a millionaire. Daymond throws himself in the negotiation and offers the same as Lori and argues that he has a $6billion-retail expertise. Lori refuses to partner with Daymond on this endeavor; she goes to greater lengths by writing the check in front of Aly.
Aly takes her time to decide which prompts Lori to pull out her offer if Aly doesn’t immediately take her offer. As a result, Aly picks Daymond. Her reason? She felt threatened with Lori’s last statement.
Roger Sullivan owns Wired Waffles, a packaged waffle which contains caffeine and serves to complement coffee. He needs $75,000 in exchange for 25% equity in his firm. He offers some to the sharks but Robert doesn’t seem to like it. A sale is yet to be made. Kevin thinks that Roger will be eaten by big manufacturers with his current business plan. Robert and Mark argue with Kevin for always shooting down entrepreneurs.
Wired Waffles are supposed to be for adults, but Roger doesn’t discount the possibility of marketing it to a younger market. Lori thinks this decision is a liability nightmare since children will always get their hands in it so she’s out. Daymond, Robert and Mark are out. Robert would have wanted Roger to license the product and establish distribution, not market it. Roger leaves the tank without any offer.
Cheryl Rigdon owns Spatty, an enterprise that manufactures small spatulas which allow users to remove the remaining contents of personal item bottles (e.g. lotion, make-up). She has two tools, the spatty for smaller bottles and the spatty daddy for taller bottles. Cheryl needs $50,000 in exchange for 40% stake in her enterprise.
Chery’s products have yet to be manufactured. The investment money she’ll be getting from any of the sharks will be used to produce her prototypes. Nevertheless, she has placed some of her prototypes on eBay and has sold 15 units this far.
The sharks aren’t that optimistic about the product, although they are amused at the product names. All the sharks refuse to offer. Lori doesn’t see any marketability in the product and sees it as a promotional item rather than a retail item.
Father-son tandem Brandon and Keith Marz are the owners of Marz Sprays, a company which manufactures vitamins and supplements in liquid form. These are to be sprayed orally instead of swallowed in the case of pills. They need $200,000 in exchange for a 10% stake in their firm. A unit retails for $14.99. Sales for nine months reached $120,000.
The Marzs are currently lacking in licensing papers but they have been approached by Nature Made for the manufacture of their products. Mark, Daymond and Robert think that oral sprays and supplements in general require a lot of work from patenting, licensing and passing FDA standards. All of them are out.
Lori likes the idea and offers $200,000 and 30% stake. Kevin offers a partnership but Lori declines. Kevin feels offended and comes up with his own offer of $200,000 for 25% equity. Lori reduces her equity stake to match Kevin’s offer. The Marzs take Lori’s offer.
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