THE FOLLOWING IS A ROUGH TRANSCRIPT OF THE VIDEO ABOVE
The final entrepreneur into the Shark Tank this week presented his business Under the Weather and was seeking $600k in exchange for 10% in the business. He has developed a portable “sportspod” that weighs less than 7lbs, is water & wind resistant, and has a coating that protects you from harmful rays from the sun.
As for his numbers, each pod retails for $99.99 and costs $23 to make, giving him 75% margins. He did $2Mill in sales last year and saw a net profit of $1Mill. Just to make this sound even more impressive, that $2Mill equates to 22k units sold last year. Around 85% of his sales were online and he has only spent $11k on marketing in the last two years!
I’m sure it’s no surprise that several Sharks were interested in partnering with him and they took no time at all jumping in!
Daymond got things started with an offer of $600k in exchange for 20%. Kevin then matched Daymond’s offer. Then Mark made it a bit more interesting by offering $600k in exchange for 15% along with an option to purchase an additional 10% at $600k in the next 12 months. The entrepreneur was pretty quick to make that deal with Mark.
I wasn’t shocked at all to see Mark go in with such a competitive offer. This is a no-brainer for him! With his presence in the sports industry, he has the kind of contacts that will make licensing and purchase orders so much easier for this product. Alongside such an impressive base of sales and growth that this entrepreneur has already built, a partnership with Mark is just going to pour gasoline on the fire.
There is only one thing that I am curious about with this product. The entrepreneur made a point of being able to use this product to get out of the harsh sun during summer events. However, he also made the point that it is 35 degrees hotter inside the pod as a selling point for using it during the winter. So my mind immediately went to the thought that I would MUCH rather deal with the harsh sun, than an additional 35 degrees in the middle of summer. Now, you can of course unzip the sides to make sure you aren’t holding in all that heat, but I still don’t care for the idea of being in such a tiny space in the summer heat. Even with the flaps unzipped, it still sounds suffocating!
Anyway, that’s just a nit-picky gripe from me, because there’s not much more I can say about how all this went down! The product is obviously a winner, and he obviously got a solid partner by accepting Mark’s deal.