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Narrator: "Shark Tank" is for
anyone who dares to dream.

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Sharks, I'm asking for
some serious dough.

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How much debt
do you have?

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We're forecasting
$2.1 million.

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Whoa!
What do you need?

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Harris: I need a little bit
of guidance.

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If you guys like Kobee,
want to bet on Kobee.

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I love your dare to dream.
You have that tenacity.

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Narrator:
And tonight, Kendra Scott,

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founder of billion dollar
jewelry sensation

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Kendra Scott, joins the Tank.

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I dared to dream that it was
possible to have big dreams.

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You should dream big.

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I don't want a job. Okay?

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I'm the chef,
Mr. Wonderful.

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I just need your money.

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♪♪

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Narrator: First in the Tank
is a winter sport accessory

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that is functional
and fashionable.

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♪♪

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Hi, Sharks.
My name is Kelly.

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And I'm Cristina.

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We're from San Francisco,
California,

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and today we're seeking
$200,000 in exchange

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for 10% equity of
our company, Yardsale.

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Sharks, if you've ever skied,
you probably agree with us.

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Ski poles kind of suck.

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They're clunky
and easy to drop.

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[ Laughter ]

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Plus, they're made of
cheap materials.

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They come in
limited colors,

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and I think we can
all agree they're pretty ugly.

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We're lifelong skiers
and know first hand

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that people are
constantly looking

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to upgrade their ski gear.

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But when it comes
to innovation,

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ski poles have been,
well, long forgotten.

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That's why we started...

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Yardsale!
Yardsale!

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Yardsale ski poles blend

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clever design and great style
for the everyday skier.

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The best part
about Yardsale poles?

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They're magnetic.

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We've hidden magnets
in the handles

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and the baskets so
that they stick together,

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making walking to
and from the car or getting on

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and off the lift
and even easier experience.

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Skiers love how Yardsale
poles are fully modular,

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so you can mix and match
between the five eye-catching

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colors on our website
to create your own custom pair.

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With Yardsale, we're not only
making ski days easier

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and more fun, but we're
creating a lifestyle brand for

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the millions of recreational
skiers out there.

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So, Sharks, who's ready to ditch
your old poles in the snow

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and ride the chairlifts
with Yardsale?

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I love it. I love that name.

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I just got to ask.
Is this a sample?

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Why the name Yardsale?

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Haven't you ever had
a Yardsale on the mountain?

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Are you, like, what are you,
a black diamond skier?

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You don't know what
a Yardsale is?

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It's when you lose
everything, your skis come off,

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your poles come off.

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It's like they call it, like,
you know, like a Yardsale.

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Like a garage sale.

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So, like, does everybody
that skis know that?

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It's kind of
an insider term.

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Kendra clearly is a skier
in the room.

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And clearly I've had a lot
of yard sales.

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And it actually goes a bit
back to the origin stories of

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how we actually came up with
the idea.

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Cristina had a infamous
epic yard sale or wipeout,

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and that's
where she came up with the idea.

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Ashbaugh:
I had a bad Yardsale.

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It got me thinking about
my greatest frustration

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with the product, which for me
is when you're carrying them,

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they're always crossing over.
Yes.

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They're falling down.

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And so I thought, why has
nobody put magnets on ski poles?

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And are you the only one
doing this?

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Yes.
McGee: We are.

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I started tinkering
with my old poles,

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and I basically taped some
magnets to the handles of these.

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I walked around the corner
to Kelly's house

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because he lives very close
by to me,

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and I asked him
what he thought.

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No one has ever, in decades,
rethought the humble ski pole,

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yet every skier needs
them to ski.

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Greiner: What are
your backgrounds?

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I've always been
passionate about design,

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and so I was very fortunate
to follow that pursuit to MIT,

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where I studied mechanical
engineering and product design.

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Afterwards, I worked at Apple

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as a product designer
across various teams.

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And as an avid skier,

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I was ready to jump
into a consumer product.

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So are you guys
full time in this?

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We are.
We are. Yeah.

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So my background is more
on the marketing side of things.

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After college,

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I worked for a hardware
tech startup in marketing,

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and then I transitioned
to the venture capital side,

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where I was the head
of content and PR

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for a VC firm
in San Francisco.

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One of the
most important things

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to note as well is that
over 60% of our customers

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online customize their poles,

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which means that we have
a huge adoption rate.

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So, you're not
doing any retail, right?

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So we are
in a few specialty stores.

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So what's your price
compared to a regular pole?

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Absolutely.

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So we just launched
six months ago,

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and we make the product
for about $30.

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We landed it for $42,
and we sell it for $139.

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It's 75% margin.

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What are
like the average poles?

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Great question.
We're in the upper

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middle range of the market.
Okay.

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So on the lower end,
you have about $50, $60 poles,

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which are just cheap
aluminum ones.

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But on the upper end,
you have really advanced poles.

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But we sit really in the middle,

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and there's other poles
that are in our range,

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but no one that offers features
like we do.

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What have you sold so far?

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Great question. Yep.

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In the first month, right before
the holidays this past year,

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we did $100,000 in sales
in our first month.

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Good for you.
Wow. Good job.

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So our fiscal year
to date, $220,000 in sales.

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220?
Yes.

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And we are forecasting
to end the year,

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which for us ends in September,
at $300,000.

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Okay.
Next year, we're forecasting

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$2.1 million in sales.

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Cuban: Where and how
did you sell them?

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Yeah, so we
launched D to C only.

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We'll be expanding
into retail next winter.

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With who?

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Well, what was really exciting
is in our first 30 days,

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we had REI reach out to us,
Backcountry,

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Decathlon in Europe.

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When I get new poles,
I'm in the boots in the store,

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and we're sizing,
and, you know, we're trying

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to figure out exact -- you know,
the pose, right?

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Right. Totally.
So what happens to you?

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Those are a little
long for you.

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Do you need
multiple different sizes

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of this in inventory?

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They come in five sizes.

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That's an inventory nightmare,
right?

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Well, we got an answer
for you, Mr. Wonderful.

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Okay.

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What you can actually see
in our kids poles,

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which are on the far left here,
is that they're adjustable.

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And we'll have adjustable poles
for adults next year, as well.

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Wait, so you mean
they'll continue to slide?

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Yeah, so actually as kids grow,
they'll grow with the poles.

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That is amazing!

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I have kids from ages 10 to 22,
by the way,

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I don't see that out there.

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Let me just tell you
how I feel.

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So, um, first of all,
I don't really love the name.

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I think it has a bit
of a negative connotation

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and an incorrect connotation for

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a premium quality brand new item
that's innovative.

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Yardsale just feels
like it's a disaster

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and it's
when the worst thing happens.

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And then I'm not a skier

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and have to feel passionate
about the product.

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Love the people,
but don't feel it here.

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So I'm sorry. I'm out.

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Thank you so much, Lori.
Thank you, Lori.

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John: I love the name.

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So when I started FUBU, they
were like, "What is a FUBU?"

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Is it Italian, is it Japanese?
Is it number three that

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won the pu pu platter?
What is it?

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And that's exactly
became a conversation

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that stood out from everybody.

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You know how many times
people come up here...

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Yeah.
...their name is too close

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to something else,
and then they spend a lot

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of money, and they lose it.

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I will say it is one
of the biggest reasons

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skiers have paid attention
to our brand.

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I agree.
I'm part of the snowboarder

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community,
and we hate you guys.

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[ Laughter ]

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So I don't know.
I just don't like skiing.

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Um, this is just not for me.
Um, so I wish you all the best.

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Great innovation. I'm out.

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Thank you.
Thank you, Damon.

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I've never skied once
in my entire life,

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and I have no intention
of starting.

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So for those reasons, I'm out.

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I love this, I love the name.
This is really great.

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It's catchy,
but, you know, you're early.

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00:06:49,109 --> 00:06:50,910
This is six months in.

200
00:06:50,910 --> 00:06:52,712
You're putting really
a $2 million valuation

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00:06:52,712 --> 00:06:53,980
on a business
with what you're asking.

202
00:06:53,980 --> 00:06:57,050
And we realize there's
a high risk behind that.

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And so actually, one of
the things that we did was,

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we, you know, are obviously
asking for $200,000 for 10%,

205
00:07:01,888 --> 00:07:05,592
but we do have a lot
of profit margin in our product.

206
00:07:05,592 --> 00:07:07,961
And so therefore we
do actually have a bit

207
00:07:07,961 --> 00:07:09,663
of a secondary offer
in our back pocket.

208
00:07:09,663 --> 00:07:11,097
Are you about to say royalty?

209
00:07:11,097 --> 00:07:12,599
Mr. Wonderful, we'd love
to talk to you about.

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Let's hear it.
So if you're willing,

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00:07:13,967 --> 00:07:17,070
we'd love to make
you an offer of $200,000 for 5%

212
00:07:17,070 --> 00:07:18,805
with a $3 royalty

213
00:07:18,805 --> 00:07:20,640
until you recoup your initial
investment of $200,000.

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That's the first time a company
has ever ever offered...

215
00:07:24,077 --> 00:07:25,912
Offered!
...to Kevin a royalty.

216
00:07:25,912 --> 00:07:27,280
Offered a royalty!

217
00:07:27,280 --> 00:07:28,648
We ain't afraid
of a royalty.

218
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That's a first.

219
00:07:30,317 --> 00:07:31,818
I would prefer
to model it this way.

220
00:07:31,818 --> 00:07:33,353
Um...
Uh-oh.

221
00:07:33,353 --> 00:07:35,488
I'll do the $200,000
for 20%,

222
00:07:35,488 --> 00:07:37,657
and I'll take my chances
on distributions.

223
00:07:37,657 --> 00:07:40,293
I want a distribution when
you distribute to yourselves,

224
00:07:40,293 --> 00:07:42,495
but I want to wet my beak
on this one.

225
00:07:42,495 --> 00:07:44,731
I want 20%.
Well, yes, absolutely.

226
00:07:44,731 --> 00:07:47,133
We'd love to talk about
what Kevin would have to do

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00:07:47,133 --> 00:07:48,902
to roll up his sleeves
and really help us.

228
00:07:48,902 --> 00:07:50,637
Ooh!
Well, I don't want a job, okay?

229
00:07:50,637 --> 00:07:52,005
You know,
you just said you need somebody

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00:07:52,005 --> 00:07:53,873
who's going to roll
your sleeves up.

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00:07:53,873 --> 00:07:56,309
Honey, I've done it.
I get retail, I get omnichannel.

232
00:07:56,309 --> 00:07:58,178
I think you have
a great direct to consumer,

233
00:07:58,178 --> 00:08:00,613
but wholesale is where you
can really build this business.

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00:08:00,613 --> 00:08:02,682
That's how I started
Kendra Scott.

235
00:08:02,682 --> 00:08:04,584
I'm going to do 20%, as well.

236
00:08:04,584 --> 00:08:08,455
Plus I want the $3 back
until I recoup my 200 K. Okay?

237
00:08:08,455 --> 00:08:09,856
Thank you.
All right?

238
00:08:09,856 --> 00:08:12,392
The difference here is
I really do think I can help you

239
00:08:12,392 --> 00:08:13,860
with this wholesale strategy.

240
00:08:13,860 --> 00:08:17,564
I'll drop
my ask to 15%,

241
00:08:17,564 --> 00:08:21,034
but I'll take the $3 royalty
till I get back $400,000.

242
00:08:21,034 --> 00:08:22,869
So it's just a 2X.

243
00:08:22,869 --> 00:08:26,339
Would you be interested
in doing $200,000 for 8%?

244
00:08:26,339 --> 00:08:28,141
We'll drop that equity down,

245
00:08:28,141 --> 00:08:30,577
but will increase
your royalty to $5 a unit

246
00:08:30,577 --> 00:08:32,112
until you recoup $300,000.

247
00:08:32,112 --> 00:08:33,913
I'll do it at 10%.

248
00:08:33,913 --> 00:08:36,916
I want the royalty,
but I want a 2X on it. Right?

249
00:08:36,916 --> 00:08:38,184
That's just going to put us

250
00:08:38,184 --> 00:08:39,552
in a really tight position
in the future.

251
00:08:39,552 --> 00:08:41,421
Oh, come on.
Actually, we think at $5 a unit,

252
00:08:41,421 --> 00:08:43,757
we can actually get you your
300 K back,

253
00:08:43,757 --> 00:08:46,126
if you will take that offer,
within under two years.

254
00:08:46,126 --> 00:08:49,362
Getting my money
back is not why I do deals.

255
00:08:49,362 --> 00:08:50,930
I want to get
a multiple on it.

256
00:08:50,930 --> 00:08:52,932
Kendra, would you
be interested in that

257
00:08:52,932 --> 00:08:54,667
sort of a royalty offer,

258
00:08:54,667 --> 00:08:59,205
which is $200,000 for 8%
with a $5 unit royalty

259
00:08:59,205 --> 00:09:02,776
until you recoup
$300,000 back?

260
00:09:02,776 --> 00:09:04,511
You know what?
I actually really like that.

261
00:09:04,511 --> 00:09:06,312
I like that,
I do like it.

262
00:09:06,312 --> 00:09:09,816
Can we do 10%,
and you have yourself a deal?

263
00:09:09,816 --> 00:09:14,054
If you'll drop to $250,000
on the royalty payback,

264
00:09:14,054 --> 00:09:15,155
you got yourself a deal.

265
00:09:15,155 --> 00:09:16,423
$300,000.

266
00:09:16,423 --> 00:09:17,690
Oh, my God, $50,000?

267
00:09:17,690 --> 00:09:19,426
Come on!

268
00:09:19,426 --> 00:09:22,262
We up the upfront cost
to $250,000 at 10%

269
00:09:22,262 --> 00:09:26,800
with a $5 royalty
until you recoup $300,000 back.

270
00:09:26,800 --> 00:09:29,068
Done.
You got yourself a deal!

271
00:09:29,068 --> 00:09:31,171
Yes! I'm gonna come over here.

272
00:09:31,171 --> 00:09:33,506
I'm skiing over.

273
00:09:33,506 --> 00:09:34,908
Thank you so much, Kendra.

274
00:09:34,908 --> 00:09:35,975
Oh, my God,
thank you so much.

275
00:09:35,975 --> 00:09:37,243
We're gonna have
so much fun.

276
00:09:37,243 --> 00:09:38,511
I'm gonna have these
everywhere I go.

277
00:09:38,511 --> 00:09:39,913
Thank you so much.

278
00:09:39,913 --> 00:09:41,080
This is so exciting.

279
00:09:41,080 --> 00:09:42,315
Thank you, guys.
Thank you all.

280
00:09:42,315 --> 00:09:43,850
You skiers deserve each other.

281
00:09:43,850 --> 00:09:45,385
[ Laughter ]

282
00:09:45,385 --> 00:09:47,220
That was crazy.
That was insane.

283
00:09:47,587 --> 00:09:49,856
Kevin has an amazing team,
but Kendra was really --

284
00:09:49,856 --> 00:09:51,858
Kendra is a behemoth.
She's also a billionaire.

285
00:09:51,858 --> 00:09:53,226
She is a billionaire.

286
00:09:53,226 --> 00:09:55,161
And she seemed
really excited and really,

287
00:09:55,161 --> 00:09:57,397
genuinely just, like,
willing to roll up our sleeves

288
00:09:57,397 --> 00:10:00,166
and help us with all the things
that we need help with.

289
00:10:12,078 --> 00:10:14,681
Narrator: Next up are clean
beauty products that

290
00:10:14,681 --> 00:10:16,916
harness the power of nature.

291
00:10:16,916 --> 00:10:25,124
♪♪

292
00:10:25,124 --> 00:10:26,926
Hello, Sharks!
My name is Kobe Harris.

293
00:10:26,926 --> 00:10:29,128
I'm here today seeking
$300,000 for 6% equity

294
00:10:29,128 --> 00:10:31,164
in my company, Kobeesco.

295
00:10:31,164 --> 00:10:34,033
We believe Mother Nature herself
deserves the best kiss.

296
00:10:34,033 --> 00:10:36,369
Sharks, let's talk about lips.
We all have them.

297
00:10:36,369 --> 00:10:39,105
We all use them.
But are we treating them right?

298
00:10:39,105 --> 00:10:42,108
That's why I created
Kobeesco is 100% natural,

299
00:10:42,108 --> 00:10:43,943
handmade and sustainable
lip balms

300
00:10:43,943 --> 00:10:45,678
that don't just lock in
moisture, they lock in

301
00:10:45,678 --> 00:10:47,614
trust and transparency

302
00:10:47,614 --> 00:10:50,083
because our ingredients are so
clean that you could eat them.

303
00:10:50,083 --> 00:10:52,719
But don't. We source
our beeswax from happy bees

304
00:10:52,719 --> 00:10:54,420
who listen to classical music
all day.

305
00:10:54,420 --> 00:10:55,922
[ Laughter ]
Our oils are pressed from plants

306
00:10:55,922 --> 00:10:57,857
who have won beauty contests.

307
00:10:57,857 --> 00:11:00,994
Can you believe that, Sharks?
Nah, I'm just kidding.

308
00:11:00,994 --> 00:11:02,862
Kobee is made from only four
simple ingredients.

309
00:11:02,862 --> 00:11:04,130
[ Laughter ]

310
00:11:04,130 --> 00:11:05,665
Beeswax, coconut oil,
sunflower seed oil,

311
00:11:05,665 --> 00:11:07,033
and mango butter.

312
00:11:07,033 --> 00:11:08,201
I started with lip balms,

313
00:11:08,201 --> 00:11:10,069
but I've quickly expanded
to a lotion bar,

314
00:11:10,069 --> 00:11:13,339
lip scrub, cuticle butter,
and even a hand salve.

315
00:11:13,339 --> 00:11:16,109
So who's ready to pucker up,
kiss the bad ingredients

316
00:11:16,109 --> 00:11:18,945
and plastic packaging goodbye
with Kobeesco.

317
00:11:18,945 --> 00:11:20,180
Sharks, I front of you is
an assortment

318
00:11:20,180 --> 00:11:21,414
of Kobeesco products,

319
00:11:21,414 --> 00:11:24,450
so you too can be a part
of the Kobee's hive.

320
00:11:24,450 --> 00:11:26,486
Wow, I love
the packaging.

321
00:11:26,486 --> 00:11:27,820
Yeah, I like how
small these are.

322
00:11:27,820 --> 00:11:30,123
Greiner: So each lip balm
is a tiny little thing.

323
00:11:30,123 --> 00:11:31,758
Mm-hmm. Correct.
Smells very good.

324
00:11:31,758 --> 00:11:33,026
Cuban: I like the flavor.
Those are cool.

325
00:11:33,026 --> 00:11:34,928
We have we have
10 different flavors.

326
00:11:34,928 --> 00:11:36,529
I did start off with like a
traditional size lip balm tube,

327
00:11:36,529 --> 00:11:38,097
but since I wanted to be
compostable,

328
00:11:38,097 --> 00:11:39,165
you have to be able
to push it up

329
00:11:39,165 --> 00:11:40,600
because there's
no twist function.

330
00:11:40,600 --> 00:11:42,402
So it has to be a little bit
shorter, it has to be

331
00:11:42,402 --> 00:11:43,469
a little bit wider, so you can
put your finger up there.

332
00:11:43,469 --> 00:11:44,704
Yeah, that's smart.

333
00:11:44,704 --> 00:11:46,072
Kobe, are you selling
in retail with this?

334
00:11:46,072 --> 00:11:47,640
No, it's really all
online right now.

335
00:11:47,640 --> 00:11:48,841
Direct to consumer
on our website,

336
00:11:48,841 --> 00:11:50,176
and then Amazon, as well.

337
00:11:50,176 --> 00:11:51,544
Tell us about you.

338
00:11:51,544 --> 00:11:53,246
I started this when
I was a freshman in college.

339
00:11:53,246 --> 00:11:55,048
Actually, I was doing research
on packaging and bees

340
00:11:55,048 --> 00:11:56,816
with one
of my sustainability professors.

341
00:11:56,816 --> 00:11:59,752
I went to my mom. I was like, "
Hey, mom, I got this idea.

342
00:11:59,752 --> 00:12:01,387
It's called Kobee's.

343
00:12:01,387 --> 00:12:03,022
I want to make all natural lip
balm, personal care products.

344
00:12:03,022 --> 00:12:04,390
I need a little bit of money to,
you know,

345
00:12:04,390 --> 00:12:06,192
just get the base ingredients."

346
00:12:06,192 --> 00:12:08,294
So she gave me 200 bucks,
went on to Amazon,

347
00:12:08,294 --> 00:12:10,330
bought, you know, all the raw
ingredients that I could find,

348
00:12:10,330 --> 00:12:12,365
you know, the beeswax,
the butters, the oils.

349
00:12:12,365 --> 00:12:14,167
Really just spent
that whole summer formulating.

350
00:12:14,167 --> 00:12:15,702
It was like three months.

351
00:12:15,702 --> 00:12:17,203
And then I worked
as a lifeguard.

352
00:12:17,203 --> 00:12:19,172
So I ended up
towards the end of the summer,

353
00:12:19,172 --> 00:12:21,341
passing it out to, you know,
everybody that I could find.

354
00:12:21,341 --> 00:12:23,343
I would go home from my shift,

355
00:12:23,343 --> 00:12:26,746
make 50 balms in a little
hot plate on my bedroom floor,

356
00:12:26,746 --> 00:12:28,248
you know,
mixing up wax with the pipette,

357
00:12:28,248 --> 00:12:31,150
filling them one by one,
and then I would walk around

358
00:12:31,150 --> 00:12:32,752
to the pools.
I love that.

359
00:12:32,752 --> 00:12:33,853
That is awesome.
And then hand them out

360
00:12:33,853 --> 00:12:34,854
to people at the pool.
Whoa.

361
00:12:34,854 --> 00:12:36,189
So that first summer is really

362
00:12:36,189 --> 00:12:37,924
where I kind of started
to figure some things out.

363
00:12:37,924 --> 00:12:40,193
So I had a day
where I made $3,000 in sales.

364
00:12:40,193 --> 00:12:41,628
That was the most money
I've ever seen

365
00:12:41,628 --> 00:12:43,563
in my entire life in my bank.
I remember it hit.

366
00:12:43,563 --> 00:12:45,565
I was like, I was so excited.
I was ecstatic.

367
00:12:45,565 --> 00:12:46,899
Such a good feeling.
Yeah.

368
00:12:46,899 --> 00:12:48,167
And then I think
a month later, I had a day

369
00:12:48,167 --> 00:12:49,802
where I made $10,000 in one day.

370
00:12:49,802 --> 00:12:51,571
And then towards
the end of the summer,

371
00:12:51,571 --> 00:12:53,539
like two weeks
before classes went back up,

372
00:12:53,539 --> 00:12:55,575
did the 15 grand in sales
one day

373
00:12:55,575 --> 00:12:58,111
and went on my campus portal,
exited out of all of my classes.

374
00:12:58,111 --> 00:13:00,246
Oh, my God.
And since classes were

375
00:13:00,246 --> 00:13:02,382
online, I just told my dad,
you know, I'm still in school,

376
00:13:02,382 --> 00:13:04,350
but really, I was just
in the basement making lip balms

377
00:13:04,350 --> 00:13:06,286
and trying to market all day.

378
00:13:06,286 --> 00:13:07,620
[ Laughter ]

379
00:13:07,620 --> 00:13:10,189
So, Kobe,
your story is so amazing,

380
00:13:10,189 --> 00:13:12,091
and it really touched me.

381
00:13:12,091 --> 00:13:14,160
I did the same thing,
and I dropped out of college,

382
00:13:14,160 --> 00:13:16,062
I ended up starting my business.

383
00:13:16,062 --> 00:13:18,598
So I hear that.
My dad today obviously looks at

384
00:13:18,598 --> 00:13:20,400
me, and he's like, "Honey,
you made the right decision."

385
00:13:20,400 --> 00:13:23,569
I bet your parents are
so proud of you.

386
00:13:23,569 --> 00:13:25,705
Yeah, my mom was a huge
proponent of kind of help.

387
00:13:25,705 --> 00:13:27,273
She started a couple businesses

388
00:13:27,273 --> 00:13:28,541
when she got out of school,
as well,

389
00:13:28,541 --> 00:13:29,909
because I was going to school
to be a doctor,

390
00:13:29,909 --> 00:13:31,310
actually, at first.
That's what I wanted to do.

391
00:13:31,310 --> 00:13:32,578
I went to summer camps for it.

392
00:13:32,578 --> 00:13:34,547
I took summer classes,
shadowed surgeons.

393
00:13:34,547 --> 00:13:35,982
When I went to my mom that
summer, and I was like,

394
00:13:35,982 --> 00:13:37,917
"Hey, Mom, I think I might want
to switch from trying

395
00:13:37,917 --> 00:13:39,952
to become a doctor
to make lip balm."

396
00:13:39,952 --> 00:13:41,954
And as crazy as it sounds,
she was like, "You know, Kobe,

397
00:13:41,954 --> 00:13:44,457
you know, I understand,
you know, go with your gut."

398
00:13:44,457 --> 00:13:46,392
And that's kind of
what's propelled me

399
00:13:46,392 --> 00:13:47,960
forward to have the confidence
to be able to do some

400
00:13:47,960 --> 00:13:49,128
of the things that I'm doing.

401
00:13:49,128 --> 00:13:51,364
That year,
we did about 30 grand.

402
00:13:51,364 --> 00:13:54,200
The year after that,
we did about $200,000.

403
00:13:54,200 --> 00:13:58,104
And then last year,
we did $864,000.

404
00:13:58,104 --> 00:14:00,039
And this year, we've
already done a little over

405
00:14:00,039 --> 00:14:01,441
$1.5 million to date.

406
00:14:01,441 --> 00:14:02,775
Whoo!
Wow.

407
00:14:02,775 --> 00:14:04,510
1.5!

408
00:14:04,510 --> 00:14:06,279
Wow!
Like, wow!

409
00:14:06,279 --> 00:14:08,915
Greiner: That trajectory is
quite, quite large.

410
00:14:08,915 --> 00:14:11,484
But what was it that made
that change?

411
00:14:11,484 --> 00:14:13,553
Um, I just learned
how to run Facebook ads,

412
00:14:13,553 --> 00:14:15,221
like TikTok posting videos.

413
00:14:15,221 --> 00:14:16,656
That's really what I know
how to do.

414
00:14:16,656 --> 00:14:18,324
I'm, you know, Gen Z,
I'm a young kid.

415
00:14:18,324 --> 00:14:19,592
I know social media.

416
00:14:19,592 --> 00:14:21,194
Do you know your ROAS,
your return on ad spend?

417
00:14:21,194 --> 00:14:24,597
And it's about 2.5 to 3.

418
00:14:24,597 --> 00:14:26,466
Okay, that's a little light.

419
00:14:26,466 --> 00:14:28,901
But my question is
for an investor,

420
00:14:28,901 --> 00:14:31,270
I look at this and say,
if you know your ROAS

421
00:14:31,270 --> 00:14:32,739
and you know your CAC
and customer acquisition

422
00:14:32,739 --> 00:14:34,707
and I give you $300,000,

423
00:14:34,707 --> 00:14:37,510
why wouldn't you just use
that to pour it on the fire?

424
00:14:37,510 --> 00:14:40,980
In other words,
you don't need anything else

425
00:14:40,980 --> 00:14:42,849
other than more capital
to spend more on advertising.

426
00:14:42,849 --> 00:14:44,117
Sure.
What does it cost you

427
00:14:44,117 --> 00:14:45,585
to acquire a customer?

428
00:14:45,585 --> 00:14:48,054
Um, right now blended,
it's 14, 15 bucks.

429
00:14:48,054 --> 00:14:49,655
What do you make
on your average order?

430
00:14:49,655 --> 00:14:51,357
Uh, $32.

431
00:14:51,357 --> 00:14:53,426
Our main skew was like
a six pack

432
00:14:53,426 --> 00:14:54,594
or a six to nine pack.

433
00:14:54,594 --> 00:14:55,928
It's the lip balm.

434
00:14:55,928 --> 00:14:57,430
The rest of this stuff
is a fraction of the sales?

435
00:14:57,430 --> 00:14:59,632
Yes, so lip balm was about 75%
of our sales.

436
00:14:59,632 --> 00:15:01,400
The rest of it is personal care,
it's about 25%.

437
00:15:01,400 --> 00:15:04,237
This little unit right here
costs $5?

438
00:15:04,237 --> 00:15:05,471
I mean, you sell it for?

439
00:15:05,471 --> 00:15:08,141
Sell for $5.
Costs 26 cents to make.

440
00:15:08,141 --> 00:15:10,076
What are you going to make
this year?

441
00:15:10,076 --> 00:15:11,611
So I think we'll finish
the year with around

442
00:15:11,611 --> 00:15:13,146
$3.5, $4 million.

443
00:15:13,146 --> 00:15:14,981
What are you going to make on
that after you pay yourself

444
00:15:14,981 --> 00:15:16,315
and all your employees?

445
00:15:16,315 --> 00:15:18,384
I think we'll net
about $700,000 to $800,000.

446
00:15:18,384 --> 00:15:22,288
So, Kobe, first of all,
as a mom of sons,

447
00:15:22,288 --> 00:15:24,424
I have a son about
your age,

448
00:15:24,424 --> 00:15:26,659
I'm blown away
by your story.

449
00:15:26,659 --> 00:15:29,762
Like I'm so proud of you.
This is not my --

450
00:15:29,762 --> 00:15:30,930
This isn't my wheelhouse.
Sure.

451
00:15:30,930 --> 00:15:32,198
I want
to buy your products.

452
00:15:32,198 --> 00:15:33,900
I'm going to use
your products.

453
00:15:33,900 --> 00:15:35,635
I'm going to tell everybody
about it.

454
00:15:35,635 --> 00:15:37,270
But it's just
not the right investment for me.

455
00:15:37,270 --> 00:15:38,538
so I'm out.

456
00:15:38,538 --> 00:15:39,639
I appreciate it.

457
00:15:39,639 --> 00:15:41,641
Kobe, what do you need?

458
00:15:41,641 --> 00:15:44,410
I need somebody who can give
me a little bit of guidance.

459
00:15:44,410 --> 00:15:46,679
We need a little bit of help
maybe with distribution.

460
00:15:46,679 --> 00:15:48,414
You know, lip balm is a $5 SKU,

461
00:15:48,414 --> 00:15:50,750
so it's really hard
to sell a lot online

462
00:15:50,750 --> 00:15:52,652
if we're not selling
a huge volume.

463
00:15:52,652 --> 00:15:54,654
So I think being in
those checkout counters,

464
00:15:54,654 --> 00:15:57,723
the point of purchase retail
would be very, very helpful.

465
00:15:57,723 --> 00:16:00,760
I could get you retail
in pretty well every big box.

466
00:16:00,760 --> 00:16:04,730
And they do sell millions
of dollars a week in lip balm.

467
00:16:04,730 --> 00:16:06,098
Sure.
So that but to get

468
00:16:06,098 --> 00:16:08,568
the shelf space at point of
sale, that ain't easy.

469
00:16:08,568 --> 00:16:09,635
Yeah, that's tough.

470
00:16:09,635 --> 00:16:10,970
Because you're displacing
somebody,

471
00:16:10,970 --> 00:16:12,371
and they're going to want
a listing fee for that.

472
00:16:12,371 --> 00:16:14,507
I like the deal.
I'll make you an offer.

473
00:16:14,507 --> 00:16:16,976
I'll give you the $300,000
for 20%.

474
00:16:16,976 --> 00:16:19,078
20%?
Yeah.

475
00:16:19,078 --> 00:16:20,279
Okay.

476
00:16:20,279 --> 00:16:21,881
I don't think you're
worth 5 million bucks.

477
00:16:21,881 --> 00:16:23,850
Greiner: So, Kobe, I'll tell
you what I think.

478
00:16:23,850 --> 00:16:25,885
Sure.

479
00:16:25,885 --> 00:16:28,721
I feel that it's a hard road
once you try to go into retail,

480
00:16:28,721 --> 00:16:31,791
because how do you stand
out amongst the rest?

481
00:16:31,791 --> 00:16:33,793
Because there's so many
out there right now

482
00:16:33,793 --> 00:16:35,761
and some with
the "bees" kind of name.

483
00:16:35,761 --> 00:16:37,330
Sure.

484
00:16:37,330 --> 00:16:40,633
I really feel it's
a great online business for you.

485
00:16:40,633 --> 00:16:42,335
Sure.
I love it, and you've done

486
00:16:42,335 --> 00:16:45,404
a great job,
but not really right

487
00:16:45,404 --> 00:16:47,940
investment for me.
I'm sorry. I'm out.

488
00:16:47,940 --> 00:16:49,041
I appreciate it.

489
00:16:49,041 --> 00:16:50,409
So I think
you're going to crush it.

490
00:16:50,409 --> 00:16:53,379
I just don't see the lip balm
business as something

491
00:16:53,379 --> 00:16:56,849
that I can really bring the
value add that you really need.

492
00:16:56,849 --> 00:16:59,352
And so for that reason,
I'm out.

493
00:16:59,352 --> 00:17:00,653
Thank you.

494
00:17:00,653 --> 00:17:02,121
Man, I love this.
And it reminds me of my story.

495
00:17:02,121 --> 00:17:03,856
You know,
my mother was the same way.

496
00:17:03,856 --> 00:17:05,825
She wanted to start
her own businesses.

497
00:17:05,825 --> 00:17:09,128
But, uh, you know, life happens.
She became a single mother,

498
00:17:09,128 --> 00:17:12,265
and, uh, she had to,
uh, work a bunch of jobs

499
00:17:12,265 --> 00:17:14,567
to make sure that I was okay.
Sure.

500
00:17:14,567 --> 00:17:15,835
So she wasn't
able to fulfill that dream.

501
00:17:15,835 --> 00:17:19,205
So we kind of got together,
and mom helped me,

502
00:17:19,205 --> 00:17:20,339
so I really love this.

503
00:17:20,339 --> 00:17:22,275
I love the idea.

504
00:17:22,275 --> 00:17:25,144
Um, I just don't think
I want to be in this business.

505
00:17:25,144 --> 00:17:26,879
I want to be
in the Kobe business, though.

506
00:17:26,879 --> 00:17:28,915
But this is not the business
I want to be in,

507
00:17:28,915 --> 00:17:30,783
so I wish you all the best.

508
00:17:30,783 --> 00:17:32,585
It's not for me. I'm out.

509
00:17:32,585 --> 00:17:33,619
Thank you.

510
00:17:33,619 --> 00:17:34,887
Well, then there
was Kevin.

511
00:17:34,887 --> 00:17:37,556
All roads lead back to
the big bee in here.

512
00:17:48,801 --> 00:17:50,670
Narrator: Four Sharks are out.

513
00:17:50,670 --> 00:17:51,938
Kobe has an offer from Kevin

514
00:17:51,938 --> 00:17:53,739
for his natural lip balm
company,

515
00:17:53,739 --> 00:17:57,310
Kobee's, but he wants
a much bigger steak than the 6%

516
00:17:57,310 --> 00:17:59,578
Kobe came in offering.

517
00:17:59,578 --> 00:18:01,380
I would never go into
the lip balm business

518
00:18:01,380 --> 00:18:03,282
because it's
so competitive.

519
00:18:03,282 --> 00:18:06,152
The only deal I'm looking at
is giving you $300,000

520
00:18:06,152 --> 00:18:08,387
because I really think
you're sharp, I really do.

521
00:18:08,387 --> 00:18:11,891
I want to show this to
my retail distribution partners,

522
00:18:11,891 --> 00:18:15,461
but I don't want you to fall
in love with that too fast.

523
00:18:15,461 --> 00:18:17,763
Sure.
Because
I really want to focus,

524
00:18:17,763 --> 00:18:20,433
if we're going to do
this deal, on this ROAS thing,

525
00:18:20,433 --> 00:18:23,669
because you've proven you've got
enough gasoline going here,

526
00:18:23,669 --> 00:18:25,304
that we can make
the flame bigger.

527
00:18:25,304 --> 00:18:27,273
But I want 20%.
A lot of work.

528
00:18:27,273 --> 00:18:28,841
I want to get my money
back one day.

529
00:18:28,841 --> 00:18:31,711
So $300,000 for 20%
is $1.5 million.

530
00:18:31,711 --> 00:18:34,714
We'll end the year doing
almost having netting

531
00:18:34,714 --> 00:18:36,749
$700,000, 800,000,
so really about two times that.

532
00:18:36,749 --> 00:18:38,818
And you're saying the only thing
that I'm going to be

533
00:18:38,818 --> 00:18:41,687
really using the money for
is pouring it on marketing.

534
00:18:41,687 --> 00:18:43,389
So why can I not go get a loan
for $300,000...

535
00:18:43,389 --> 00:18:44,757
spend it on marketing.
You could.

536
00:18:44,757 --> 00:18:46,292
You could. Absolutely.
You know, then I'll be --

537
00:18:46,292 --> 00:18:47,626
I'll be right there
and keeping all 20%.

538
00:18:47,626 --> 00:18:48,828
Yeah, Kobe!

539
00:18:48,828 --> 00:18:50,363
What I will say is,
I know lip balm is not

540
00:18:50,363 --> 00:18:52,064
the traditional business,
but like you said,

541
00:18:52,064 --> 00:18:53,866
if you guys like Kobee,
you want to bet on Kobee,

542
00:18:53,866 --> 00:18:55,501
you know,
this is one of those things

543
00:18:55,501 --> 00:18:57,503
I would love
for you guys to be a part of.

544
00:18:57,503 --> 00:18:59,372
I would add one
thing, though,

545
00:18:59,372 --> 00:19:01,540
you could do that or you could
do it the way I do it,

546
00:19:01,540 --> 00:19:03,309
and there'd be
a big difference in yields

547
00:19:03,309 --> 00:19:05,344
because you don't have
the advantage of scale.

548
00:19:05,344 --> 00:19:09,148
What we do is consolidate our
buys across all of our companies

549
00:19:09,148 --> 00:19:10,950
and buy at a fraction
of what you're paying

550
00:19:10,950 --> 00:19:12,351
because you're just Kobe.

551
00:19:12,351 --> 00:19:14,387
Not that you're a bad guy.

552
00:19:14,387 --> 00:19:15,955
It's just you don't have the
buying power.

553
00:19:15,955 --> 00:19:17,656
Just between you
and I, that's my deal.

554
00:19:17,656 --> 00:19:19,025
You don't have
to take it, Kobe.

555
00:19:19,025 --> 00:19:20,426
Make a decision.

556
00:19:20,426 --> 00:19:23,763
I understand. So you wouldn't do
even $300,000 at 10%?

557
00:19:23,763 --> 00:19:25,331
No, no.

558
00:19:27,733 --> 00:19:30,536
Uh, I'm not going to give up
20% of my company today.

559
00:19:30,536 --> 00:19:32,805
What would you give up?

560
00:19:32,805 --> 00:19:34,907
Um, I'd be willing
to take more money.

561
00:19:34,907 --> 00:19:38,644
No. I think $300,000 is enough
for what you're doing.

562
00:19:38,644 --> 00:19:40,746
It's a big ask, actually,
for what you've got.

563
00:19:40,746 --> 00:19:42,948
If I stay at $300,000,
you won't meet

564
00:19:42,948 --> 00:19:44,183
in the middle between
10 and 20.

565
00:19:44,183 --> 00:19:45,317
That's 15.

566
00:19:47,420 --> 00:19:49,188
Tough decision.

567
00:19:49,188 --> 00:19:51,190
I know.

568
00:19:51,190 --> 00:19:53,859
[ Sighs ] 15%.

569
00:19:53,859 --> 00:19:55,561
It should be painful, Kobe.

570
00:19:55,561 --> 00:19:56,962
I know.
Those are great deals.

571
00:19:56,962 --> 00:19:58,731
I'm suffering
like an animal right now

572
00:19:58,731 --> 00:20:00,966
about the 5%
I just gave up.

573
00:20:00,966 --> 00:20:03,102
He doesn't want to suffer
like an animal, too.

574
00:20:03,102 --> 00:20:05,805
Yeah. No. Me neither.
Um...

575
00:20:05,805 --> 00:20:08,007
Pain. Both sides, pain.

576
00:20:12,044 --> 00:20:14,513
I won't do that.

577
00:20:14,513 --> 00:20:16,115
I appreciate it.
Thank you, Kobe.

578
00:20:16,115 --> 00:20:17,416
Appreciate you guys.

579
00:20:17,416 --> 00:20:18,684
Greiner: Hey, good luck, Kobe.
Congrats.

580
00:20:18,684 --> 00:20:20,286
So impressed by you.

581
00:20:23,556 --> 00:20:25,491
Ultimately I walked out of here
without a deal today.

582
00:20:25,491 --> 00:20:26,726
But I think that's okay.

583
00:20:26,726 --> 00:20:27,993
You know, I've turned down deals
in the past

584
00:20:27,993 --> 00:20:29,028
that might have seemed good
at the time,

585
00:20:29,028 --> 00:20:30,262
but at the end of the day,

586
00:20:30,262 --> 00:20:31,797
you have to feel
like you need to trust your gut.

587
00:20:31,797 --> 00:20:33,532
You know your business better
than anybody,

588
00:20:33,532 --> 00:20:35,267
and I know my business better
than anybody.

589
00:20:35,267 --> 00:20:37,269
And no one person is
going to build Kobee's.

590
00:20:37,269 --> 00:20:39,371
Kobee is going to build Kobee's.

591
00:20:39,371 --> 00:20:41,841
So I think we'll be
just fine going forward.

592
00:20:43,008 --> 00:20:45,411
Narrator: In season 15,
we watched 8- year old

593
00:20:45,411 --> 00:20:48,247
Gavin Batarse, his sister
Morgan, and their dad Jon

594
00:20:48,247 --> 00:20:51,283
make a deal with Michael Rubin
and Mark Cuban for Glove Wrap,

595
00:20:51,283 --> 00:20:54,453
which Gavin invented to help
break in baseball gloves.

596
00:20:54,453 --> 00:20:56,756
Just put the ball in the glove
and wrap it up with Glove Wrap.

597
00:20:56,756 --> 00:20:58,357
That's literally it!

598
00:20:58,357 --> 00:21:00,326
Let's see what they're
up to now.

599
00:21:00,326 --> 00:21:03,062
Gavin: Closing a deal with
Mark Cuban and Michael Rubin

600
00:21:03,062 --> 00:21:05,631
has been a game changer
for our business.

601
00:21:05,631 --> 00:21:09,235
Before "Shark Tank",
we only had $19,000 in sales,

602
00:21:09,235 --> 00:21:10,970
but now it's been 10 months,

603
00:21:10,970 --> 00:21:14,039
and we already have
over $200,000 in sales.

604
00:21:14,039 --> 00:21:16,442
Our social media
has exploded.

605
00:21:16,442 --> 00:21:18,978
Before, we only had
30 million views.

606
00:21:18,978 --> 00:21:21,614
Now we have
over 100 million views

607
00:21:21,614 --> 00:21:24,884
and over
350,000 followers.

608
00:21:24,884 --> 00:21:28,254
We were only selling
online in six mom and pop shops.

609
00:21:28,254 --> 00:21:30,890
But after "Shark Tank", we're on
every shelves across

610
00:21:30,890 --> 00:21:34,193
the country, and we just got
our first P.O. from Dick's,

611
00:21:34,193 --> 00:21:37,196
but the best was still
yet to come.

612
00:21:39,064 --> 00:21:42,268
Michael Rubin was
able to open doors to MLB,

613
00:21:42,268 --> 00:21:46,372
so now we are the official glove
rep of Major League Baseball.

614
00:21:46,372 --> 00:21:49,408
I saw that you had more hustle
than me at 8 years old,

615
00:21:49,408 --> 00:21:52,178
I said, "That's a guy we got to
back and invest in."

616
00:21:52,178 --> 00:21:54,146
We're at MLB All-Star
Weekend, handing out product,

617
00:21:54,146 --> 00:21:56,148
meeting our favorite players,
couldn't be more excited.

618
00:21:56,148 --> 00:21:58,217
Breaks in a baseball glove.
I invented it.

619
00:21:58,217 --> 00:21:59,585
Rubin: Having a deal in place
with Major League Baseball

620
00:21:59,585 --> 00:22:01,787
gives them the ability to
access all

621
00:22:01,787 --> 00:22:03,556
of Major League
Baseball players.

622
00:22:03,556 --> 00:22:05,824
They have the official
Major League Baseball batter man

623
00:22:05,824 --> 00:22:07,493
on their products, and it just
gives the sense of authenticity

624
00:22:07,493 --> 00:22:09,862
that he needed to take
the business to the next level.

625
00:22:09,862 --> 00:22:11,497
I think the company has tons
of potential.

626
00:22:11,497 --> 00:22:12,898
He's already doubled
his business.

627
00:22:12,898 --> 00:22:14,300
He's got capital behind him.

628
00:22:14,300 --> 00:22:16,001
Getting this to more
and more players,

629
00:22:16,001 --> 00:22:17,870
team based Glove Wraps
from Little League

630
00:22:17,870 --> 00:22:20,806
to the top players,
that's what Glove Wrap can do.

631
00:22:21,574 --> 00:22:23,876
Jon: When we walk around
baseball games especially,

632
00:22:23,876 --> 00:22:25,511
we have a lot
of parents and kids

633
00:22:25,511 --> 00:22:27,546
that come up to us saying

634
00:22:27,546 --> 00:22:29,682
that our story has inspired them
to work on something together,

635
00:22:29,682 --> 00:22:31,483
and that's been one
of our favorite parts

636
00:22:31,483 --> 00:22:33,052
about this whole journey.

637
00:22:33,052 --> 00:22:35,421
Cuban: You know,
with all the resources we have

638
00:22:35,421 --> 00:22:37,122
to learn things on the internet,
any kid can figure out

639
00:22:37,122 --> 00:22:38,457
any business, any time.

640
00:22:38,457 --> 00:22:40,559
So go out and try it,
create that product,

641
00:22:40,559 --> 00:22:42,661
start your own company,
and you can be like Gavin.

642
00:22:42,661 --> 00:22:44,997
Gavin: My advice
for any little kid like me

643
00:22:44,997 --> 00:22:47,800
who wants to start a business
is just go for it.

644
00:22:47,800 --> 00:22:50,169
If there's little problems
you see, solve them.

645
00:22:50,169 --> 00:22:51,770
If you find something you love,

646
00:22:51,770 --> 00:22:53,639
there's a way
to make a business out of it.

647
00:22:53,639 --> 00:22:55,941
Thank you, Shark Tank!
Thank you, MLB!

648
00:22:55,941 --> 00:22:57,676
This is amazing!

649
00:23:06,485 --> 00:23:09,755
♪♪

650
00:23:09,755 --> 00:23:11,690
Narrator: Next up is
a modern version

651
00:23:11,690 --> 00:23:13,993
of an ancient beauty technique.

652
00:23:13,993 --> 00:23:22,434
♪♪

653
00:23:22,434 --> 00:23:24,303
Hi, Sharks.

654
00:23:24,303 --> 00:23:26,572
My name is Aliyah Marandiz,
and I live in Austin, Texas.

655
00:23:26,572 --> 00:23:30,542
Let's be real.
Hair removal sucks.

656
00:23:30,542 --> 00:23:34,413
It's a tedious task that we
have to do over and over again.

657
00:23:34,413 --> 00:23:37,583
As a hairy, brown girl
with very sensitive skin,

658
00:23:37,583 --> 00:23:41,153
I've left so many waxing salons
with less hair,

659
00:23:41,153 --> 00:23:44,757
but my skin --
my skin was collateral damage.

660
00:23:44,757 --> 00:23:47,493
Well, Sharks, hair removal
has never been sweeter.

661
00:23:47,493 --> 00:23:48,961
Literally.

662
00:23:48,961 --> 00:23:50,863
Say hello to Sugardoh,

663
00:23:50,863 --> 00:23:53,966
at home sugaring kits
to remove any hair.

664
00:23:53,966 --> 00:23:57,836
We like to say, "We got your
back and your front, arms,

665
00:23:57,836 --> 00:24:00,439
legs, and anywhere else."

666
00:24:00,439 --> 00:24:04,143
Made with just sugar, water.
and citrus, our all natural

667
00:24:04,143 --> 00:24:07,746
sugar based dough gently pulls
hair from the root

668
00:24:07,746 --> 00:24:10,582
while exfoliating your skin.

669
00:24:10,582 --> 00:24:12,184
People really do that?

670
00:24:12,184 --> 00:24:14,253
Leaving you feeling silky
smooth, and it's a gentle,

671
00:24:14,253 --> 00:24:17,156
compostable alternative
to waxing.

672
00:24:17,156 --> 00:24:20,859
So, Sharks, I'm
the sugar mama to Sugardoh,

673
00:24:20,859 --> 00:24:23,362
so I'm asking for
some serious dough.

674
00:24:23,362 --> 00:24:26,532
I'm seeking $500,000
for 5% of the company.

675
00:24:26,532 --> 00:24:29,835
John: Oh!
Man, come on.

676
00:24:29,835 --> 00:24:32,204
Kendra, my friend Richad
here is in need

677
00:24:32,204 --> 00:24:33,505
of some sugaring himself.

678
00:24:33,505 --> 00:24:35,607
Do you want to come up
and be his sugar mama

679
00:24:35,607 --> 00:24:37,009
and sugar with me?

680
00:24:37,009 --> 00:24:38,711
Do I get to like remove --
Yes, you do.

681
00:24:38,711 --> 00:24:42,281
Oh, yes! Oh, my gosh,
this is so exciting.

682
00:24:42,281 --> 00:24:45,217
Kevin's back.
Make her do Kevin's back.

683
00:24:45,217 --> 00:24:46,852
Yes, I Know.
Are you serious?

684
00:24:46,852 --> 00:24:49,388
This is my
dream come true.

685
00:24:49,388 --> 00:24:52,291
So Sugardoh is made
with this taffy like goop.

686
00:24:52,291 --> 00:24:54,426
And it is very fun
to play with.

687
00:24:54,426 --> 00:24:57,329
It's kind of similar
to caramel or taffy,

688
00:24:57,329 --> 00:24:59,231
made with similar ingredients,
as well.

689
00:24:59,231 --> 00:25:00,366
Okay, what do I do?

690
00:25:00,366 --> 00:25:02,067
So you can actually try on
this side.

691
00:25:02,067 --> 00:25:03,769
Okay, so tell me
if I'm doing this right.

692
00:25:03,769 --> 00:25:06,705
Okay. I'm gonna...
Mold it into your skin.

693
00:25:06,705 --> 00:25:08,407
I'm gonna let
it heat up a minute.

694
00:25:08,407 --> 00:25:10,709
Exactly.
And I'm going to help it.

695
00:25:10,709 --> 00:25:12,444
And then you want to pull
taut with the other hand.

696
00:25:12,444 --> 00:25:17,116
So pull the skin taut,
and then three, two, one...

697
00:25:17,116 --> 00:25:19,251
Oh, I did it!

698
00:25:19,251 --> 00:25:22,788
This is so satisfying!

699
00:25:22,788 --> 00:25:24,857
You did a really good job,
Kendra.

700
00:25:24,857 --> 00:25:27,226
Cuban: It's so satisfying.

701
00:25:27,226 --> 00:25:28,527
Awesome.

702
00:25:28,527 --> 00:25:30,229
I'm gonna dismiss Richad.
Thank you so much.

703
00:25:30,229 --> 00:25:32,297
Thank you.
Good job, buddy.

704
00:25:32,297 --> 00:25:34,900
O'Leary: Trying to wrap my head
around the $500,000,

705
00:25:34,900 --> 00:25:37,269
5%, $10 million valuation.

706
00:25:37,269 --> 00:25:40,072
This innovation is ancient.

707
00:25:40,072 --> 00:25:42,141
It was found
in Phoenician times.

708
00:25:42,141 --> 00:25:43,976
Women have been
using it forever

709
00:25:43,976 --> 00:25:45,844
all through the Mediterranean.
Marandiz: Yes.

710
00:25:45,844 --> 00:25:48,914
And I mean, there is
zero proprietary elements to it.

711
00:25:48,914 --> 00:25:50,783
Anybody can do this.

712
00:25:50,783 --> 00:25:54,520
So help me, help me,
help me get to $10 million.

713
00:25:54,520 --> 00:25:56,388
We've actually worked
two years to create

714
00:25:56,388 --> 00:25:58,457
a proprietary manufacturing
process

715
00:25:58,457 --> 00:26:00,459
and also our own formulation.

716
00:26:00,459 --> 00:26:03,362
So that's where we have some
of our own IP to be able to...

717
00:26:03,362 --> 00:26:06,131
You do.
You process is the IP.

718
00:26:06,131 --> 00:26:07,666
Yes, exactly.

719
00:26:07,666 --> 00:26:10,068
So that would be a good time
to tell us a little about sales.

720
00:26:10,068 --> 00:26:11,170
Cuban: Sales!
Sales!

721
00:26:11,170 --> 00:26:12,271
Sales.

722
00:26:12,271 --> 00:26:14,139
I would love to tell you
about our sales.

723
00:26:14,139 --> 00:26:17,042
I launched in September 2020
as a solo entrepreneur,

724
00:26:17,042 --> 00:26:19,178
and at that point,
at the end of the year,

725
00:26:19,178 --> 00:26:21,213
I made 50 K in revenue.

726
00:26:21,213 --> 00:26:23,048
Got it.
Fast forward to 2021.

727
00:26:23,048 --> 00:26:26,852
We went viral on TikTok, and we
made $2.6 million in sales.

728
00:26:26,852 --> 00:26:28,120
John: Whoa!

729
00:26:28,120 --> 00:26:30,856
From 50,000 to 2.6?

730
00:26:30,856 --> 00:26:32,724
50,000 to 2.6.
Then?

731
00:26:32,724 --> 00:26:34,760
That's what
I'm talking about.

732
00:26:34,760 --> 00:26:37,796
Then last year, we ended the
year in $5.6 million in sales.

733
00:26:37,796 --> 00:26:39,832
Alright.
Wow, wow.

734
00:26:39,832 --> 00:26:42,935
So we first started in D to C,
and then we grew to Amazon.

735
00:26:42,935 --> 00:26:45,404
And then at the end of 2022,

736
00:26:45,404 --> 00:26:47,840
we made it in 300
Ulta Beauty stores.

737
00:26:47,840 --> 00:26:50,042
Okay.
Last year, we expanded full

738
00:26:50,042 --> 00:26:52,978
nationwide,
and into 1,300 stores.

739
00:26:52,978 --> 00:26:54,313
Well, that'll do it.
And so that's where

740
00:26:54,313 --> 00:26:55,514
we had that big bump in sales.

741
00:26:55,514 --> 00:26:57,749
Did you make money
on the 5.6?

742
00:26:57,749 --> 00:26:59,017
No, we didn't make money.

743
00:26:59,551 --> 00:27:01,253
How's that possible?
You didn't?

744
00:27:01,253 --> 00:27:02,955
Marandiz: We didn't make money.

745
00:27:02,955 --> 00:27:05,991
So in order to make profits
in retail,

746
00:27:05,991 --> 00:27:07,960
we learned the hard way that
you really need

747
00:27:07,960 --> 00:27:09,895
85%, 90% margins.

748
00:27:09,895 --> 00:27:11,964
Our margins were around 60%.

749
00:27:11,964 --> 00:27:14,900
However, this year,
we updated our suppliers

750
00:27:14,900 --> 00:27:17,336
and we implemented
our manufacturing process.

751
00:27:17,336 --> 00:27:20,205
And so our margins
are now hovering around 80%.

752
00:27:20,205 --> 00:27:21,974
Did you lose money or...?

753
00:27:21,974 --> 00:27:23,575
Yes, we lost money last year.

754
00:27:23,575 --> 00:27:24,843
How much did you lose?

755
00:27:24,843 --> 00:27:26,745
We ended the year in
negative-77%.

756
00:27:26,745 --> 00:27:28,780
So you lost.
440-some thousand dollars?

757
00:27:28,780 --> 00:27:29,848
Mm-hmm.

758
00:27:29,848 --> 00:27:31,316
How did you fund all
those losses?

759
00:27:31,316 --> 00:27:33,552
Me and my husband invested
$400,000 of our personal money.

760
00:27:33,552 --> 00:27:34,987
But you lost 400.

761
00:27:34,987 --> 00:27:37,923
So then that goes into
our debt that we have, right?

762
00:27:37,923 --> 00:27:39,658
How much debt do you have?

763
00:27:39,658 --> 00:27:41,026
We have $1.5 million.
Hello!

764
00:27:41,026 --> 00:27:42,794
There we go.

765
00:27:42,794 --> 00:27:45,063
Yeah, we also have
$1 million in inventory.

766
00:27:45,063 --> 00:27:47,866
But it also means that you
have, like, no cash right now.

767
00:27:47,866 --> 00:27:49,535
We have no cash right now.

768
00:27:49,535 --> 00:27:50,936
That's why I'm here
in the Shark Tank. Yeah.

769
00:27:50,936 --> 00:27:52,337
That is what you need.

770
00:27:52,337 --> 00:27:54,239
That is what I need
right now.

771
00:27:54,239 --> 00:27:56,074
Yeah. Especially if we
want to get into more retailers.

772
00:27:56,074 --> 00:27:57,743
You can't afford
to go into more retailers.

773
00:27:57,743 --> 00:27:59,444
We have debt financing,

774
00:27:59,444 --> 00:28:02,047
which is at a high interest rate
of 22%.

775
00:28:02,047 --> 00:28:04,483
Hello!
There it is.

776
00:28:04,483 --> 00:28:07,085
So your total debt is 1.5.

777
00:28:07,085 --> 00:28:08,854
Yeah, that's what's killing
us right now,

778
00:28:08,854 --> 00:28:13,392
is because 20% of the money that
we borrow is just out the door.

779
00:28:13,392 --> 00:28:16,528
We had all this money tied
up in inventory,

780
00:28:16,528 --> 00:28:18,230
and now we are rightsizing.

781
00:28:18,230 --> 00:28:19,998
So, so much has changed
in the last few months.

782
00:28:19,998 --> 00:28:22,601
Going through hyper growth
like you did is hard

783
00:28:22,601 --> 00:28:24,036
Yeah. Yes.

784
00:28:24,036 --> 00:28:25,938
Borrowing money
to get there,

785
00:28:25,938 --> 00:28:28,073
put you even further underwater
because you're always --

786
00:28:28,073 --> 00:28:30,976
it feels like you can never
catch up and get even, right?

787
00:28:30,976 --> 00:28:33,045
Yeah.
I wish I had a way where

788
00:28:33,045 --> 00:28:36,148
I could just say, Here you go,
this is the approach."

789
00:28:36,148 --> 00:28:39,318
But, you know, I thought
when I walked in and saw it,

790
00:28:39,318 --> 00:28:41,553
I thought this was food,
and I got hungry.

791
00:28:41,553 --> 00:28:44,289
I just don't know
this stuff at all,

792
00:28:44,289 --> 00:28:46,425
so for those reasons, I'm out,
but I wish you the best.

793
00:28:46,425 --> 00:28:47,859
Thank you Mark,
I appreciate it.

794
00:28:47,859 --> 00:28:49,161
Aliyah, the ask is too big.

795
00:28:49,161 --> 00:28:51,363
Without even fighting
about the evaluation,

796
00:28:51,363 --> 00:28:54,199
I would never value
this at $10 million right now.

797
00:28:54,199 --> 00:28:57,502
You've got sales. I like that,
but you got a long way to go.

798
00:28:57,502 --> 00:29:00,572
You know, if you'd
come in here for like 100, 150,

799
00:29:00,572 --> 00:29:04,343
even 200 maybe I take the ride,
change the valuation a bit,

800
00:29:04,343 --> 00:29:06,178
but this is nuts.

801
00:29:06,178 --> 00:29:08,981
I think it's nuts.
So for that reason, I'm out.

802
00:29:08,981 --> 00:29:10,248
Thank you, Kevin.

803
00:29:10,248 --> 00:29:12,918
Yeah, so it's hard
because you couldn't predict

804
00:29:12,918 --> 00:29:14,453
that you're going to go
this high.

805
00:29:14,453 --> 00:29:16,254
And then as soon
as you got that level,

806
00:29:16,254 --> 00:29:17,990
you had to learn
what you didn't know.

807
00:29:17,990 --> 00:29:20,592
Right? The amount of margin
on these things.

808
00:29:20,592 --> 00:29:22,327
And then you got to borrow
money against it.

809
00:29:22,327 --> 00:29:25,130
You can't leave
Ulta empty handed

810
00:29:25,130 --> 00:29:26,999
when they're asking
for goods.

811
00:29:26,999 --> 00:29:29,001
Yeah.
But, uh, you know,

812
00:29:29,001 --> 00:29:31,470
to give you $500,000
for 5%,

813
00:29:31,470 --> 00:29:34,640
uh, you would have to distribute
$10 million, uh,

814
00:29:34,640 --> 00:29:36,575
if you're doing
really well.

815
00:29:36,575 --> 00:29:38,877
That's to get
your money back.

816
00:29:38,877 --> 00:29:40,912
You just to get
my money back,

817
00:29:40,912 --> 00:29:44,316
that means you probably would
have to do $50 million.

818
00:29:44,316 --> 00:29:46,251
You'd be older
than the Phoenicians

819
00:29:46,251 --> 00:29:48,987
that invented this by the time
you got your money back.

820
00:29:48,987 --> 00:29:50,255
I'm out.

821
00:29:50,255 --> 00:29:51,890
Thank you so much.

822
00:29:51,890 --> 00:29:54,993
Aaliyah, you're amazing,
by the way, and, you know,

823
00:29:54,993 --> 00:29:56,662
as you were talking,
I've been there.

824
00:29:56,662 --> 00:29:58,964
Like, I made some
of these same mistakes.

825
00:29:58,964 --> 00:30:01,033
I did my business
on a line of credit.

826
00:30:01,033 --> 00:30:02,501
Yeah.
I was bootstrapping everything.

827
00:30:02,501 --> 00:30:03,735
I had credit card debt.

828
00:30:03,735 --> 00:30:05,103
Yeah.

829
00:30:05,103 --> 00:30:06,471
I mean, it was hard
to get anybody to invest in me.

830
00:30:06,471 --> 00:30:09,741
You know,
I know what that feels like.

831
00:30:09,741 --> 00:30:12,044
But what you're accomplishing is
really, really exciting.

832
00:30:12,044 --> 00:30:14,880
I mean, you went from
2.8 to 5.6.

833
00:30:14,880 --> 00:30:17,749
I love what you're doing.
This is just not my business.

834
00:30:17,749 --> 00:30:21,053
And I'm a little worried
about the of debt

835
00:30:21,053 --> 00:30:22,554
that you have, honestly.

836
00:30:22,554 --> 00:30:24,289
Before you say no,
I'm willing to make a deal,

837
00:30:24,289 --> 00:30:26,191
and that's why I'm here.

838
00:30:26,191 --> 00:30:29,995
I have worked my butt
off for the last four years

839
00:30:29,995 --> 00:30:31,863
and grown super fast

840
00:30:31,863 --> 00:30:33,732
to be able to get to the point
where I'm at now,

841
00:30:33,732 --> 00:30:35,467
and I really would like
partnership.

842
00:30:35,467 --> 00:30:37,869
And you are Sharks.
You guys love problems.

843
00:30:37,869 --> 00:30:40,172
This is a great problem
to solve.

844
00:30:40,172 --> 00:30:41,707
[ Laughter ]

845
00:30:41,707 --> 00:30:43,375
We don't know
if we love problems.

846
00:30:43,375 --> 00:30:45,243
You love solving problems.
Y'all are problem solvers.

847
00:30:45,243 --> 00:30:46,878
Or else you wouldn't be here.

848
00:30:46,878 --> 00:30:48,914
The $500,000,
that's just a big ask.

849
00:30:48,914 --> 00:30:51,750
And it's not
even going to really put even

850
00:30:51,750 --> 00:30:53,385
a little bit of damp on what
you've already

851
00:30:53,385 --> 00:30:54,720
got to deal with, right?

852
00:30:54,720 --> 00:30:56,221
It's not going to
really solve a lot of problems.

853
00:30:56,221 --> 00:30:59,658
But I really do admire you.
I'm out.

854
00:30:59,658 --> 00:31:01,893
Okay.
Thank you. I appreciate it.

855
00:31:01,893 --> 00:31:04,329
One of the things
that concerns me truly is

856
00:31:04,329 --> 00:31:06,331
just the competitive market.

857
00:31:06,331 --> 00:31:09,968
And so I wish you good luck,
but I'm sorry, I'm out.

858
00:31:09,968 --> 00:31:12,871
Okay. All right. Thank you guys
so much. I appreciate it.

859
00:31:12,871 --> 00:31:14,873
Good luck, Aliyah.
Thank thank you.

860
00:31:18,510 --> 00:31:20,879
I am disappointed that
I'm walking out without a deal.

861
00:31:20,879 --> 00:31:22,914
I really think
that with the sales that we had

862
00:31:22,914 --> 00:31:24,449
that they could see
the potential.

863
00:31:24,449 --> 00:31:27,786
But I love surprising people.
I love proving people wrong.

864
00:31:27,786 --> 00:31:30,756
And so I hope in two years,
they see Sugardoh in tons

865
00:31:30,756 --> 00:31:32,958
of different retailers,
and they're like, "Oh."

866
00:31:41,867 --> 00:31:44,536
♪♪

867
00:31:44,536 --> 00:31:46,505
Narrator: Next up is a business

868
00:31:46,505 --> 00:31:49,674
that turned a healthy ingredient
into a not so guilty pleasure.

869
00:31:49,674 --> 00:31:56,948
♪♪

870
00:31:56,948 --> 00:31:58,817
Hi, Sharks.

871
00:31:58,817 --> 00:32:01,420
My name is Kimy, and I'm
from Oceanside, California.

872
00:32:01,420 --> 00:32:05,357
I'm the intuitive baker
extraordinaire behind Doatnut.

873
00:32:05,357 --> 00:32:10,695
I'm seeking 100,000 for 10%
equity in my company.

874
00:32:10,695 --> 00:32:14,399
Sharks, we all know Americans
struggle with salt, fat,

875
00:32:14,399 --> 00:32:15,967
and sugar addiction,

876
00:32:15,967 --> 00:32:17,769
but eating a sugar free,
gluten free,

877
00:32:17,769 --> 00:32:20,105
and/or dairy free diet
can often feel

878
00:32:20,105 --> 00:32:23,742
like you're eating
dry cardboard with high calories

879
00:32:23,742 --> 00:32:25,577
and an unappealing aftertaste.

880
00:32:25,577 --> 00:32:28,246
That's why I took
on the challenge to create

881
00:32:28,246 --> 00:32:30,849
a healthy version
from a guilty pleasure.

882
00:32:30,849 --> 00:32:34,486
Say hello to Doatnut!

883
00:32:34,486 --> 00:32:37,389
This might look like it's
full of sugar or ingredients

884
00:32:37,389 --> 00:32:39,291
that we can't pronounce,

885
00:32:39,291 --> 00:32:42,828
but what if I told you
that this contains no dairy,

886
00:32:42,828 --> 00:32:45,997
no gluten,
less than one gram of sugar

887
00:32:45,997 --> 00:32:48,300
found naturally
in sweet potatoes,

888
00:32:48,300 --> 00:32:51,736
and you can count
the ingredients with one hand?

889
00:32:51,736 --> 00:32:53,872
Let me sweeten the deal for you.

890
00:32:53,872 --> 00:32:56,341
It's only 90 calories.

891
00:32:56,341 --> 00:33:00,011
The magic behind Doatnut
is in organic groats,

892
00:33:00,011 --> 00:33:03,248
which are oats
in its original purest form.

893
00:33:03,248 --> 00:33:05,450
Once the farmers harvest
the oats,

894
00:33:05,450 --> 00:33:07,586
they are tested
for gluten, packed,

895
00:33:07,586 --> 00:33:10,288
and shipped
to my little pink store,

896
00:33:10,288 --> 00:33:12,891
where I mill it
into fresh oat flour.

897
00:33:12,891 --> 00:33:16,328
It's a farm
to finger experience.

898
00:33:16,328 --> 00:33:18,864
Sharks who's ready to partner
with me

899
00:33:18,864 --> 00:33:22,200
and bite into
the best decision of your life?

900
00:33:22,200 --> 00:33:24,202
Me, me, me, me, me, me, me.

901
00:33:24,202 --> 00:33:26,037
A little pink store.
Is it really pink?

902
00:33:26,037 --> 00:33:27,973
It is.
So pretty.

903
00:33:27,973 --> 00:33:30,342
So each of you has three
of my Doatnuts in front of you,

904
00:33:30,342 --> 00:33:34,479
representing my
most popular flavors, churro.

905
00:33:34,479 --> 00:33:36,448
That's what I just ate.
Very good.

906
00:33:36,448 --> 00:33:38,016
And it is sugar free,
by the way.

907
00:33:38,016 --> 00:33:39,317
It's very good.

908
00:33:39,317 --> 00:33:40,619
The frosting is
all sugar free dairy.

909
00:33:40,619 --> 00:33:41,987
It smells so good.
And what do you use?

910
00:33:41,987 --> 00:33:43,955
Do you use any
sugar alcohols?

911
00:33:43,955 --> 00:33:45,090
It's very moist.

912
00:33:45,090 --> 00:33:46,458
Are you using
allulose or Stevia?

913
00:33:46,458 --> 00:33:48,093
I use monk fruit
as a sweetener.

914
00:33:48,093 --> 00:33:49,594
Monk fruit.
This is great.

915
00:33:49,594 --> 00:33:50,762
That churro one.
Very good.

916
00:33:50,762 --> 00:33:52,063
This is just 90?

917
00:33:52,063 --> 00:33:54,532
That's right.
And it has two grams of fiber.

918
00:33:54,532 --> 00:33:56,368
Two grams of fiber.

919
00:33:56,368 --> 00:34:00,338
So ingredient wise, it's
your oats, your special groats.

920
00:34:00,338 --> 00:34:02,474
Oats, sweet potatoes,
egg whites.

921
00:34:02,474 --> 00:34:05,443
Egg whites, monk fruit.
What's number five?

922
00:34:05,443 --> 00:34:08,046
Baking powder.
Baking powder.

923
00:34:08,046 --> 00:34:10,782
I've never heard
of the term groats.

924
00:34:10,782 --> 00:34:13,218
So like,
did you come up with that term,

925
00:34:13,218 --> 00:34:14,920
or is that a term
that's used in...

926
00:34:14,920 --> 00:34:16,655
Yeah, that's a term.
Okay.

927
00:34:16,655 --> 00:34:19,658
So when the farmers
harvest the oats,

928
00:34:19,658 --> 00:34:22,827
when they pull it off the husk,
that's a groat.

929
00:34:22,827 --> 00:34:24,729
Okay.
So it has not been
touched at all.

930
00:34:24,729 --> 00:34:27,566
So you're grinding
the whole seed?

931
00:34:27,566 --> 00:34:30,335
I am. The benefit
of milling it yourself is one,

932
00:34:30,335 --> 00:34:32,370
you're retaining
the natural oils

933
00:34:32,370 --> 00:34:35,140
that are found in whole grains
versus it sitting on a shelf.

934
00:34:35,140 --> 00:34:39,578
And then it also has
almost like a brown butter,

935
00:34:39,578 --> 00:34:41,212
almost taste to it.

936
00:34:41,212 --> 00:34:43,248
And I mill it fresh
every morning.

937
00:34:43,248 --> 00:34:44,783
Well, Kimy,
I will say something.

938
00:34:44,783 --> 00:34:46,818
We get a lot of products
like this here on "Shark Tank"

939
00:34:46,818 --> 00:34:49,154
because people are concerned
about sugar, salt, all of that.

940
00:34:49,154 --> 00:34:51,823
These actually don't taste
like [bleep] I'm amazed.

941
00:34:51,823 --> 00:34:53,558
Greiner: No, they
taste really good.

942
00:34:53,558 --> 00:34:55,460
How are you
distributing them?

943
00:34:55,460 --> 00:34:58,897
Yeah, so I have a little
pink store I actually --

944
00:34:58,897 --> 00:35:00,298
Of course you
have a pink store.

945
00:35:00,298 --> 00:35:01,399
Look at how cute that is.

946
00:35:01,399 --> 00:35:02,500
Greiner: Super cute.

947
00:35:02,500 --> 00:35:03,935
John: That's the little
pink store?

948
00:35:03,935 --> 00:35:06,204
It's really cute.
That's the pink store.

949
00:35:06,204 --> 00:35:08,873
Yes, so I sell
at my little pink store.

950
00:35:08,873 --> 00:35:11,042
And I actually just turned
two years old.

951
00:35:11,042 --> 00:35:13,211
So how much does it cost you
to make these doughnuts,

952
00:35:13,211 --> 00:35:15,046
and what do you sell them for?

953
00:35:15,046 --> 00:35:18,016
It cost me between $0.70
and $0.80 to make it.

954
00:35:18,016 --> 00:35:19,150
Okay.

955
00:35:19,150 --> 00:35:22,153
And we retell it at the
store for $3.50.

956
00:35:22,153 --> 00:35:24,055
Cuban: Too cheap.

957
00:35:24,055 --> 00:35:26,791
You know, for a solution
like this, I think $4.99 works.

958
00:35:26,791 --> 00:35:28,493
I could eat half one of these
for dessert.

959
00:35:28,493 --> 00:35:31,096
That's 45 calories
without any spiking.

960
00:35:31,096 --> 00:35:32,497
That's fantastic.

961
00:35:32,497 --> 00:35:34,432
The question is
how to scale this business.

962
00:35:34,432 --> 00:35:37,268
How many can you make
if this thing blows up online?

963
00:35:37,268 --> 00:35:39,337
So right now, I do
all the baking,

964
00:35:39,337 --> 00:35:41,339
I do all the marketing,
I do all the selling,

965
00:35:41,339 --> 00:35:42,640
I do everything.

966
00:35:42,640 --> 00:35:45,443
How are you
going to scale it?

967
00:35:45,443 --> 00:35:47,946
But that's why I'm here,
Mr. Wonderful,

968
00:35:47,946 --> 00:35:50,648
so that I can scale it,
hopefully.

969
00:35:50,648 --> 00:35:52,150
Do you ship them frozen?

970
00:35:52,150 --> 00:35:54,419
So I don't.
I ship them fresh.

971
00:35:54,419 --> 00:35:56,388
And then I put a little
note card to refrigerate

972
00:35:56,388 --> 00:35:57,956
or freeze right away.

973
00:35:57,956 --> 00:36:01,326
And are you shipping to other
bakeries or other businesses?

974
00:36:01,326 --> 00:36:04,763
So when I first started, I went
from gym to gym,

975
00:36:04,763 --> 00:36:06,031
uh, selling my Doatnuts.

976
00:36:06,031 --> 00:36:07,666
And as a matter of fact,

977
00:36:07,666 --> 00:36:09,367
this is a full circle moment
for me

978
00:36:09,367 --> 00:36:12,203
because my very first
pop up event,

979
00:36:12,203 --> 00:36:16,508
I set up my table next
to this most beautiful table

980
00:36:16,508 --> 00:36:18,443
that had some gorgeous jewelry
on it,

981
00:36:18,443 --> 00:36:21,446
and I walked over
to introduce myself to the gal

982
00:36:21,446 --> 00:36:23,515
and she said,
"This is Kendra Scott Jewelry."

983
00:36:23,515 --> 00:36:24,549
[ Laughter ]

984
00:36:24,549 --> 00:36:26,184
I love it.

985
00:36:26,184 --> 00:36:28,953
And she went on
to tell the story about

986
00:36:28,953 --> 00:36:32,657
how you started
in your spare bedroom with $500.

987
00:36:32,657 --> 00:36:33,825
Yep.
And that you went from

988
00:36:33,825 --> 00:36:35,326
boutique to boutique,

989
00:36:35,326 --> 00:36:38,096
and at that moment,
I dared to dream.

990
00:36:38,096 --> 00:36:40,932
Aw.
I dared to dream

991
00:36:40,932 --> 00:36:43,535
that it was
possible to have big dreams.

992
00:36:43,535 --> 00:36:45,270
Now here I am.

993
00:36:45,270 --> 00:36:47,505
And I just feel
like things happen for a reason.

994
00:36:47,505 --> 00:36:50,842
They absolutely do.
I mean, what an amazing story.

995
00:36:50,842 --> 00:36:53,078
And you should
dream big.

996
00:36:53,078 --> 00:36:56,081
You were destined to be next
to our little table that day.

997
00:36:56,081 --> 00:36:57,849
I love that.

998
00:36:57,849 --> 00:36:58,917
But you're
a single operator, Kimy.

999
00:36:58,917 --> 00:37:00,118
I am.

1000
00:37:00,118 --> 00:37:01,920
You're coming in here
for 100 grand,

1001
00:37:01,920 --> 00:37:03,922
and investors want
to see returns.

1002
00:37:03,922 --> 00:37:05,790
Yes.
And you're not worth
a million bucks yet.

1003
00:37:05,790 --> 00:37:07,726
Listen, the product --

1004
00:37:07,726 --> 00:37:08,827
We don't even know her
numbers yet.

1005
00:37:08,827 --> 00:37:11,496
Well, Mr. Wonderful,
let me tell you,

1006
00:37:11,496 --> 00:37:14,065
my total sales have been
$350,000.

1007
00:37:14,065 --> 00:37:15,734
Since the beginning
of time?

1008
00:37:15,734 --> 00:37:17,235
From 2021.
What about this year?

1009
00:37:17,235 --> 00:37:20,038
Lifetime.
Yeah.

1010
00:37:20,038 --> 00:37:22,607
For sales this year,
are $50,000.

1011
00:37:22,607 --> 00:37:25,343
Okay, that's not a lot
of sales, Kimy.

1012
00:37:38,490 --> 00:37:40,325
Narrator: All Sharks
are still in.

1013
00:37:40,325 --> 00:37:42,827
They're impressed with the taste
of Kimy's healthier doughnuts,

1014
00:37:42,827 --> 00:37:46,131
Doatnuts, but they're not
impressed with her low sales.

1015
00:37:46,664 --> 00:37:48,800
Okay, that's not a lot
of sales, Kimy,

1016
00:37:48,800 --> 00:37:50,068
to be honest with you.

1017
00:37:50,068 --> 00:37:51,536
From my point of view,
the product's spectacular.

1018
00:37:51,536 --> 00:37:53,371
I will become a customer,

1019
00:37:53,371 --> 00:37:56,307
but you're not worth
a million bucks right now.

1020
00:37:56,307 --> 00:37:58,042
I don't see doing
this deal

1021
00:37:58,042 --> 00:38:00,078
because there's no plan
for me to get a return.

1022
00:38:00,078 --> 00:38:01,980
But I'll be a customer.

1023
00:38:01,980 --> 00:38:03,782
Well, Mr. Wonderful,
but we could do

1024
00:38:03,782 --> 00:38:04,949
wonderful things together!

1025
00:38:04,949 --> 00:38:07,185
I know, but I don't need
a job as a chef.

1026
00:38:07,185 --> 00:38:08,953
I'm already a chef.

1027
00:38:08,953 --> 00:38:11,156
I'm the chef, Mr. Wonderful.
I just need your money.

1028
00:38:11,156 --> 00:38:13,491
No, listen,
it's a great product

1029
00:38:13,491 --> 00:38:15,760
without a business plan.
That's what it is.

1030
00:38:15,760 --> 00:38:17,195
You just have a great product.

1031
00:38:17,195 --> 00:38:18,796
That's a great place to start

1032
00:38:18,796 --> 00:38:21,266
because this is actually
a good product.

1033
00:38:21,266 --> 00:38:23,268
And I never say
that unless it's true.

1034
00:38:23,268 --> 00:38:27,105
It's a very good product.
I'm sorry, but I'm out.

1035
00:38:27,105 --> 00:38:29,874
John: Kimy, I, um,
I like I like it,

1036
00:38:29,874 --> 00:38:31,776
but this is not my type
of business.

1037
00:38:31,776 --> 00:38:33,845
I think there's some
more qualified Sharks up here

1038
00:38:33,845 --> 00:38:35,413
with better experience
in that area,

1039
00:38:35,413 --> 00:38:37,215
so I wish you luck.

1040
00:38:37,215 --> 00:38:38,416
I'm out.

1041
00:38:38,416 --> 00:38:39,684
Thank you, Damon.

1042
00:38:39,684 --> 00:38:41,085
Scott: Do you see, like,

1043
00:38:41,085 --> 00:38:43,755
part of your plan is
to open more little pink stores?

1044
00:38:43,755 --> 00:38:45,790
Like, is that part
of the dream?

1045
00:38:45,790 --> 00:38:48,359
Oh, absolutely.

1046
00:38:48,359 --> 00:38:51,396
Well, listen, Kimy, I had one
store in Austin, Texas,

1047
00:38:51,396 --> 00:38:55,166
and I could have never dreamt
that today I would have 138.

1048
00:38:55,166 --> 00:38:58,403
So I love your dare to dream
because it is possible.

1049
00:38:58,403 --> 00:39:02,006
It is possible with a great
product and dedication to it.

1050
00:39:02,006 --> 00:39:03,808
You're doing
all those things.

1051
00:39:03,808 --> 00:39:06,077
I'm sitting here,
and I'm struggling.

1052
00:39:06,077 --> 00:39:08,246
One, I love you,
and I look at you,

1053
00:39:08,246 --> 00:39:12,150
and I see so much similarity
going into a market that is,

1054
00:39:12,150 --> 00:39:13,952
you know, a very big market.

1055
00:39:13,952 --> 00:39:16,321
You have that tenacity.
You have that passion.

1056
00:39:16,321 --> 00:39:18,089
I can see it.

1057
00:39:18,089 --> 00:39:19,791
I can feel it
from sitting here with you.

1058
00:39:19,791 --> 00:39:22,193
And the product is really,
really good.

1059
00:39:22,193 --> 00:39:24,862
I'm just -- this is not
something that

1060
00:39:24,862 --> 00:39:26,030
I'm as familiar with.

1061
00:39:26,030 --> 00:39:27,232
I don't sell
into grocery stores, right?

1062
00:39:27,232 --> 00:39:28,967
I don't think
that I'm the right investor

1063
00:39:28,967 --> 00:39:31,035
to help you expand the way
you need to expand.

1064
00:39:31,035 --> 00:39:33,204
And for that reason,
I'm out.

1065
00:39:33,204 --> 00:39:35,340
Kimy, do you have any debt
or any, like,

1066
00:39:35,340 --> 00:39:36,708
other crazy stuff
we should know about?

1067
00:39:36,708 --> 00:39:38,376
I have
$70,000 in debt.

1068
00:39:38,376 --> 00:39:40,678
Okay. 70 K.
Anything else?

1069
00:39:40,678 --> 00:39:45,083
No, no, I actually
have invested every last penny.

1070
00:39:45,083 --> 00:39:48,219
I mortgaged my house,
and the rest, I just...

1071
00:39:48,219 --> 00:39:50,788
So you're still
living in the same house?

1072
00:39:50,788 --> 00:39:54,058
Before Mark says more to you,
I just want to say something.

1073
00:39:54,058 --> 00:39:55,493
Okay.

1074
00:39:55,493 --> 00:39:57,362
This is completely
my cup of tea.

1075
00:39:57,362 --> 00:40:00,298
Like I am your customer.

1076
00:40:00,298 --> 00:40:04,902
I haven't eaten a doughnut
from a normal store in 20 years.

1077
00:40:04,902 --> 00:40:06,904
Like I don't eat doughnuts.

1078
00:40:06,904 --> 00:40:08,940
Um, no offense,
doughnut community,

1079
00:40:08,940 --> 00:40:10,975
but I just don't --
I don't eat doughnuts.

1080
00:40:10,975 --> 00:40:12,377
This is not a doughnut.

1081
00:40:12,377 --> 00:40:15,246
And this is not a doughnut.
This is delicious.

1082
00:40:15,246 --> 00:40:17,949
I love that it's all
healthy ingredients,

1083
00:40:17,949 --> 00:40:20,652
like you check, check,
check, check, check to the moon

1084
00:40:20,652 --> 00:40:24,656
all the boxes that I love,
and Mark loves those boxes, too.

1085
00:40:24,656 --> 00:40:25,990
So we are both
your perfect customer.

1086
00:40:25,990 --> 00:40:28,726
I can see --
Oh, I'll blow these up.

1087
00:40:28,726 --> 00:40:30,428
And partner.
Blow these up for sure.

1088
00:40:30,428 --> 00:40:32,530
Yes. Like, we would love
to make you an offer

1089
00:40:32,530 --> 00:40:35,500
and to blow this up
in a variety of ways.

1090
00:40:35,500 --> 00:40:36,801
Scott: Two Sharks.

1091
00:40:36,801 --> 00:40:37,835
The offer is?

1092
00:40:37,835 --> 00:40:39,570
So the offer is boom.

1093
00:40:39,570 --> 00:40:46,511
$150,000 for 30%.
So we each get 15%.

1094
00:40:46,511 --> 00:40:48,179
We give you
a little bit more cash,

1095
00:40:48,179 --> 00:40:50,081
and we'll be your
biggest advocates

1096
00:40:50,081 --> 00:40:51,516
and your biggest salespeople.

1097
00:40:51,516 --> 00:40:53,151
And we will make
this big.

1098
00:40:53,151 --> 00:40:57,121
Like this needs to be
everywhere.

1099
00:40:57,121 --> 00:40:59,590
Thank you so much.
I really appreciate that.

1100
00:40:59,590 --> 00:41:02,927
Would you be willing
to do it for 20%?

1101
00:41:05,630 --> 00:41:07,398
I mean, it's going to take
a lot of work.

1102
00:41:07,398 --> 00:41:08,900
Right.
I'd be willing to go to

1103
00:41:08,900 --> 00:41:11,135
$200,000
to help you pay off your debt.

1104
00:41:11,135 --> 00:41:15,039
So we get the 30%.
$200,000 for 30%.

1105
00:41:15,039 --> 00:41:16,841
Yes, yes!

1106
00:41:16,841 --> 00:41:19,143
Oh, I love it!
I'm happy for you.

1107
00:41:19,143 --> 00:41:21,546
Let's go, Kimy.
Let's go!

1108
00:41:21,546 --> 00:41:23,848
Scott: I'm so happy for you!

1109
00:41:23,848 --> 00:41:26,117
Aw, so good.

1110
00:41:26,117 --> 00:41:27,552
Oh, my gosh.
Thank you so much.

1111
00:41:27,552 --> 00:41:29,253
I love it.
It's a great product.

1112
00:41:29,253 --> 00:41:32,290
Great product.

1113
00:41:32,290 --> 00:41:35,360
Mr. Wonderful,
I expect an order from you.

1114
00:41:35,360 --> 00:41:37,428
You'll get one.
Congrats, Kimy.

1115
00:41:37,428 --> 00:41:38,830
Thank you so much.

1116
00:41:38,830 --> 00:41:39,931
Wow!
So good.

1117
00:41:39,931 --> 00:41:42,100
Boom. Love it.

1118
00:41:42,100 --> 00:41:45,036
The success of my business
means everything to me.

1119
00:41:45,036 --> 00:41:46,671
But it's had a slow growth.

1120
00:41:46,671 --> 00:41:48,639
It's just me doing everything.

1121
00:41:48,639 --> 00:41:50,341
But now with the Sharks,

1122
00:41:50,341 --> 00:41:53,177
we are going to conquer
the world

1123
00:41:53,177 --> 00:41:56,814
because they believe in this
product just as much as I do.

1124
00:41:56,814 --> 00:42:00,785
And I just love them,
and I'm so happy!

1125
00:42:01,085 --> 00:42:02,520
Just at night
after dinner,

1126
00:42:02,520 --> 00:42:04,455
have two of these,
180 calories.

1127
00:42:04,455 --> 00:42:05,590
I like at
the breakfast.

1128
00:42:05,590 --> 00:42:08,292
180 calories for
two doughnuts.

1129
00:42:08,292 --> 00:42:09,293
That's insane.

1130
00:42:09,293 --> 00:42:10,395
It's insane.

1131
00:42:10,395 --> 00:42:11,863
This could be our
biggest deal ever.

1132
00:42:11,863 --> 00:42:12,930
That's how big it could be.
Wow.

1133
00:42:12,930 --> 00:42:13,965
Wow!

1134
00:42:18,036 --> 00:42:25,476
♪♪

1135
00:42:25,476 --> 00:42:35,286
♪♪

1136
00:42:35,286 --> 00:42:41,492
♪♪

1137
00:42:41,492 --> 00:42:45,196
♪♪