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00:00Tonight, holiday cheer comes to the tank.
00:03I love you, Santa.
00:05And the Grinch is back.
00:07This deal sucks.
00:08Oh, okay.
00:08I hate it because it's seasonal.
00:10But if you ask any kid what the holidays are truly all about, you know what they'd say.
00:14Presents!
00:15So, sharks, who's ready to really clean up?
00:18Wow, this thing is serious.
00:20We're on the edge of an avalanche of opportunity.
00:22Your sales have got to be, like, up there with Santa Claus.
00:25Yeah, we mortgaged the house.
00:27Damn.
00:28You're hot stuff, really.
00:30You guys couldn't have a more perfect background.
00:32Let's wrap up this deal.
00:34It's a Christmas miracle.
00:43First in the tank is a way to make the holidays more magical.
00:57Sharks.
00:57I'm Jonathan Deucing from the frozen tundra of Minnesota.
01:02I'm seeking a $50,000 investment for 10% of my company.
01:07I can confidently say I know snow.
01:10Where I come from, when it snows, it can come down like a blizzard.
01:14But for those who don't live in a winter climate or simply love to play with snow, I have the perfect solution with Snow in Seconds.
01:22We bring the magic of snow indoors.
01:26It's easy.
01:27It's easy.
01:27Just take one small scoop of our powder, add water, and watch as it instantly grows into fluffy white snow.
01:39Wow.
01:40Snow that looks and feels real, but never melts.
01:44With Snow in Seconds, you can bring the joy of snow anywhere.
01:49Snow in Seconds is cold to the touch, safe, and so realistic it's used in movies.
01:55We're on the edge of an avalanche of opportunity.
02:00Who's Yeti to ride with me in a chairlift up to the peak of profits?
02:05Don't give me the cold shoulder.
02:08Let's make this winter wonderland global and make every day a snowman.
02:13It's so nice.
02:15Wow.
02:16It falls like snow.
02:17It's a Christmas miracle.
02:19You know, my eighth grade teacher had dandruff just like this.
02:24Ew.
02:25How did you come up with the idea?
02:27So we stumbled across this chemical.
02:29It's actually mostly used for industrial use.
02:32About 99% of it is used for agriculture.
02:35They put it in soil so that it holds the water and can grow.
02:38Oh, really?
02:39And when it grows, it grows really quickly, which is really exciting.
02:42What is it essentially made out of?
02:45It's one chemical.
02:46It's called sodium polyacrylite.
02:48You guys want to try it?
02:49Okay.
02:49But you should.
02:50This whole packet will fill up how much?
02:52That packet will make a gallon of snow.
02:54One scoop of snow?
02:56Yeah, one scoop of snow in there.
02:58Okay.
02:58And then take your water and pour it up about 80, 90% of the way.
03:02Oh, wow.
03:02There it goes.
03:03Woo.
03:03It's growing.
03:04Oh, that's cool.
03:06Little grains absorb 100 times their size in water.
03:09Wow.
03:10You can make a small amount like this,
03:12or you can make a giant pile and have, like, a huge party
03:15or even, like, a sledding hill.
03:16It feels very powdery and soft.
03:18Then you feel that it's a little wet.
03:21I'm going to assume that there is absolutely nothing proprietary
03:24about this product.
03:25That is true, but we have tried dozens of different manufacturers out there.
03:29Most of them turn into, like, a gel, and they don't grow very fast.
03:32Why can't I go to your manufacturer with Wondersnow and just do it myself?
03:36Well, we've been selling it for 15 years, so we have, like, our own brand.
03:40Oh, you've been selling it for 15 years?
03:42That could be problematic.
03:43How's that problematic?
03:44I'm so damned.
03:45Well, because he's here after 15 years.
03:47Oh, yeah.
03:48But what are your sales in the 15 years?
03:50So, in 15 years, out of our one stall garage with my children and I
03:56packaging and shipping every single bag, we have sold $2 million.
04:00Wow, I didn't expect that.
04:02Oh, well, hey, not that bad.
04:03How much did you sell last year?
04:06Yeah.
04:06Last year we sold about a quarter million, $241,000.
04:09Okay, and how much did you make from that?
04:10$40,000.
04:13Okay.
04:13Where do you sell it now?
04:1550% of what we sell is bulk, and that'll be for, like, movies and people that are using
04:19it in large amounts.
04:2032% we're selling wholesale.
04:22Some of it is white label, actually, so we can make Mr. Wondersnow if you want.
04:26We sell 12% on Amazon and 6% on our website.
04:30And what is the cost to make it, and what are you selling it for?
04:34Starting with the smallest size that you see there that makes one gallon, that sells for
04:37$4.99, and it costs us $0.72 to make.
04:41Okay.
04:41The large sells for $12.99.
04:44That costs $1.20 to make.
04:46The extra large, that makes 10 gallons of snow.
04:49That sells for $24.99, and that costs $4.20 to make.
04:53Wow.
04:53So there's a lot of margin there.
04:54Is there any retail distribution at all?
04:56We were in Kroger and Fred Meyer, about 1,500 stores.
05:00It went great.
05:00They reordered a little more the next year, and then, at that time, I was going through
05:06a divorce, and my business partner was kind of running the company.
05:09And at that point, he had outsourced the entire production of it to someone else, and we
05:15missed the shipment on that third year.
05:18Painful to hear.
05:18Eventually, they sent it all back.
05:20They didn't even accept it because it was like a month late.
05:22Because it came too late.
05:23How did you get into doing this in the first place?
05:27I am an entrepreneur.
05:29So around the same time that I started this company with my business partner, we also
05:32started a sports technology company.
05:35That is also 15 years old, has about 10 times the revenue.
05:38I have employees.
05:39Why don't you bring that to the show?
05:40I have major clients.
05:42What does that do?
05:43We do loyalty programs and digital payments inside stadiums.
05:47That's my full-time job.
05:47Now, that sounds like a real business.
05:49Yeah, well...
05:50Well, John, I'm going to tell you what I think.
05:52I think your packaging is great.
05:54Oh, thank you.
05:54I think your name is great.
05:56The only problem with it is the fact that it is so seasonal and so specific.
06:02It's just not broad enough for me.
06:04And for those reasons solely, I'm out.
06:07Well, I appreciate your comments.
06:09Sometimes a deal comes in that I really, really hate, and this is top of the list for this
06:15season.
06:15Oh, okay.
06:16I hate it because it's seasonal.
06:18I hate it because the sales are abysmal and irrelevant.
06:22I hate the fact that it distracts you from a real business.
06:25Why don't you tell them what you really think?
06:26This deal sucks.
06:27I'm out.
06:28All right.
06:29Jonathan, it's a great business for you, but not investable for me.
06:33I'm out.
06:34Okay.
06:35I appreciate that.
06:36I see that you have three almost insurmountable problems.
06:40No.
06:41Only three.
06:43$40,000 in profits.
06:46Yes.
06:46I mean, it doesn't get anybody excited.
06:4815-year-old business is always suspicious.
06:51Consistency.
06:52Low profits consistently year after year.
06:55And you're busy, and that's the biggest problem of all.
06:58But I think the business has great upside potential.
07:03Yeah.
07:03I have so many holiday businesses.
07:06I have Holly Ball and Hire Santa, another seasonal business.
07:11So I'll take a flyer on this.
07:13For $50,000, I'll take a third.
07:16Okay.
07:17I was going to give you an offer.
07:18It wasn't going to be as healthy as Barbara.
07:21So I'm out.
07:23Okay.
07:24Okay.
07:24Well, how about that?
07:25There you go, Jonathan.
07:25What do you want to do with that offer?
07:27Barbara, can I get you to go down to 25%?
07:29I don't think so.
07:30And you know what?
07:31I can introduce you to all the accounts that those three hustling girls opened for Holly
07:36Ball.
07:37You could almost ride their gravy train in.
07:39That is a fantastic offer.
07:42I would be happy to accept it.
07:44There you go.
07:45Good job.
07:47Good job, Jonathan.
07:48You're going to sell like hell.
07:51You look younger than you seem.
07:52Yeah.
07:52How about me?
07:53Do I look young?
07:54Oh, yeah.
07:54Good answer.
07:55John, the fact that you got a deal is a Christmas miracle.
08:00Thank you, everybody.
08:00Take care.
08:01Take care, Jonathan.
08:03Ooh.
08:04Holy cow.
08:06Barbara's a perfect fit for Snow in Seconds because she knows how to sell products to consumers.
08:11And she has a history of working with seasonal products, as she mentioned.
08:15So I'm excited to hopefully join that crew, get Snow in Seconds in like stores everywhere.
08:21Barbara, hundreds of dollars for you.
08:24Hundreds of dollars for you, Lori.
08:25Oh, thank you, Kevin.
08:2720 cents for me.
08:28This is a fantastic business, Barbara.
08:30Fantastic.
08:30Fantastic.
08:43Next in the tank is a gift that parents will appreciate as much as the kids.
08:51Hello, Sharks.
08:58I'm Aurora, and this is my brother-in-law, Stephen.
09:01We're from Los Angeles, California.
09:03We're seeking $200,000 for 10% of our company pickup bricks.
09:08Pain.
09:09Sharks, we're here to talk about pain.
09:12Pain.
09:13Wow.
09:15Pain.
09:16Oh, the horror.
09:18The dreaded walk of pain.
09:19Pain.
09:20The most painful experience a parent can face.
09:24Now, which one of you, Sharks, is brave enough to take your shoes off, come up here, and...
09:28Our attorney said no.
09:30Our attorney said no, but actually, there's an even more universal pain for parents.
09:36The pain of getting your kids to just pick up their stuff.
09:39It never ends.
09:41And that's why I created Pick Up Bricks, the kids' toy vacuum that picks up bricks and other
09:47little toys.
09:48And let me tell you, Sharks, this thing really sucks.
09:52In a good way.
09:53In a good way.
09:55We made Pick Up Bricks cordless, durable, easy to use.
09:59It's perfect for kids.
10:00But unlike a normal vacuum, our patented design separates the dirt and dust from the toys,
10:06leaving you with cleaner toys and a cleaner floor.
10:09Keep the dog hair and cookie crumbs out of your toy bin.
10:12The best part is, Pick Up Bricks empowers kids.
10:15It teaches them to clean up after themselves.
10:17Amazing.
10:18They don't even realize that that's what they're doing, because to them, it's fun.
10:21It's their toy.
10:22Which is why we say, the bigger the mess, the bigger the fun.
10:26So, Sharks, who's ready to really clean up with Pick Up Bricks?
10:31Sharks, you'll each find your very own Pick Up Bricks and a pile of toys to suck up.
10:36Have fun.
10:37Okay.
10:37Turn it on again.
10:39Woo!
10:42Wow, this thing is serious.
10:48Oh, Mr. Wonderful's winning.
10:50You don't have to clean them all up.
10:53They're having so much fun.
10:54Wow, I'm done.
10:56Look.
10:56Oh!
10:59You know, just picking up the bricks is fun.
11:01Yes, exactly.
11:03It's genius.
11:03Good to go.
11:04It really is smart.
11:05It really is.
11:05It is.
11:06How much pain, cash pain, does it cost me to buy this thing for?
11:10The retail price is $99.
11:12Okay.
11:13That's not bad.
11:13It costs you what to make it.
11:14Our cost is $32.64 landed.
11:17So, you're not selling a lot of these in retail.
11:19You're selling them direct, right?
11:20We are selling them direct, absolutely.
11:22Is there any retail distribution at all?
11:23Not yet.
11:24Not yet.
11:24You don't have the margin for that.
11:25How long have you been selling?
11:26We don't.
11:26Absolutely.
11:27We started the process of developing the product four years ago, but we started selling last
11:32summer.
11:33So, you make about $57 a unit selling it direct to consumer.
11:37What does it cost you to get that incremental sale?
11:39Have you found that out yet?
11:40Yes.
11:41So, we started off last year, we were at about $26 CPA.
11:45Right now, we're at $11.
11:46Wow.
11:47That's great.
11:47$11.
11:48And we're shooting to get it under $10.
11:50Under $10.
11:50So, you've got to be killing it then because you make money every time you advertise the
11:55product, right?
11:55So, tell us about your sales.
11:57So, to date, we've sold $348,000.
12:01Yeah.
12:01That's not bad.
12:02And most of that was during Christmas?
12:03Yes.
12:04Exactly.
12:04The margins are really tight.
12:06So, unless you get this down to $12, there's no chance for retail.
12:09Well, will it improve for you with quantity?
12:11So, how much does it improve?
12:13So, we're talking to some manufacturers now and in one of them, we're just under $20 manufacturing
12:19cost.
12:20How much have you put into this so far?
12:22Well, we've invested $495,000 to date.
12:26Wow.
12:26What do you need the money for?
12:28Basically, for inventory.
12:29It's expensive.
12:31We're getting set up for the holidays.
12:3275% of our sales come at the end of the year during the holidays.
12:37Do you have credit lines?
12:38We don't have credit lines right now, no.
12:40But we also don't have any debt either.
12:42It makes sense that you've found a solution to a pain point.
12:45I totally get that.
12:46But if I'm going to give you $200,000, I want a 10X on my investment.
12:50That's the nature of Shark Tank.
12:52I want a 10X.
12:53Because you're not a company or a product.
12:55There's nothing wrong with that.
12:56And if it's a hit, maybe that happens.
12:57That means you have to sell this business for $20 million.
13:00And I have to wait a very long time.
13:02There's not enough margin here to actually help me get back my capital
13:07and the long journey it's going to take to get you to sell this thing for $20 million.
13:12And I grew up in the toy space.
13:14It ain't easy.
13:16Guys, I'm out.
13:19Okay.
13:20Where do you want to take it next?
13:21How big do you think it can be?
13:23So the plan is next year we will start international.
13:27We'll start with the U.K. and Germany.
13:29And then over the next year, and maybe with the help of a shark, the expertise,
13:32we'll get that manufacturing cost down to where there's margin that we can go to retail.
13:36When you dream, what do you dream the sales will be over the next three years?
13:40I think in three years we dream about getting it to up to a million units.
13:44So $100 million in sales, basically.
13:46Yeah.
13:47So, first of all, I love this for so many reasons.
13:50I think that the manufacturing is going to be your pain point because you have to constantly raise.
13:54I think this is something where it's a fusion of a license, where you get somebody to make the goods as a license.
14:02You get to sell it online direct, and they do all the big box stores and all that because they're already in there.
14:08We're not averse to it.
14:09Okay.
14:10I'll offer you $200,000 for 20%.
14:14Let me throw something in here.
14:18I think you have all the makings of a usually successful business based on one product, which is not easy to do, right?
14:24So, I think what you really need is just cash.
14:27So, I'm going to give you a $400,000 credit line for 20% of your business.
14:32Period.
14:32End of story.
14:33And help you in any way you can.
14:35You're going to give them a predatory credit line?
14:36Not a predatory.
14:37No, whatever the bank wants to be at the cheapest rate in town.
14:41See what other offers you have here, but you have that as a fallback.
14:44I think it's super clever.
14:46I think Damon was right.
14:48So, I'm going to also be offering the same, the $200,000 for 20%.
14:53And if you needed money for inventory, I would be very open to it.
14:59I'm the only shark up here right now at the moment with a 7-year-old.
15:03So, I'm stepping on it.
15:04So, you get it.
15:05You got three offers.
15:06I've got a 13-year-old.
15:07It's close enough.
15:08What are you doing, Mark?
15:09So, I'm just trying to get a good grasp on it.
15:11So, our response on the offers is, they're great.
15:16We, because this is, you know, a closely held family, and we put a lot of money into it,
15:21where holding on to equity is pretty important to us.
15:23Okay.
15:24And that's why we came in at the 10%.
15:24That answers the question.
15:25So, you don't like 20%?
15:27We don't like 20%.
15:28Okay, Mark, what are you going to do?
15:29I'll give you the $200,000 for 12%.
15:32So, that's my offer.
15:36Okay.
15:37Listen, you got four offers.
15:39What are you going to do?
15:41You're scared.
15:42You're even thinking about what that chump just offered you.
15:47Why wouldn't you take that deal?
15:48I'll make it a little more interesting.
15:59One shark is out, but Steve and Aurora have four offers on the table for their vacuum for
16:05toys pickup bricks.
16:07Well, I'll make it a little more interesting.
16:11I like when I see a product that has potential to grow the brand and have more iterations,
16:16like Scrub Daddy.
16:18You know, we started with one, and we're like 64 skews and around the world, and we're
16:22all international.
16:23I am going to go to 15%.
16:25I think I'm worth it, and, you know, I want to be in it to win it, and I feel like that's
16:32right.
16:33Okay, Damon, you going to adjust your offer at all?
16:35You know what?
16:35That's fine.
16:36I'll go to 15%.
16:37I'm not going to go to 12%.
16:39I will match Lori's $200,000 for 15%.
16:42Pain.
16:42Pain, you know.
16:43I know.
16:44Guys, and I would tell you, you don't want extensions of your product line for a while.
16:48Some point in time...
16:49Well, I didn't say it was immediate.
16:51I just said that it's there.
16:52Let them decide.
16:53Let them decide.
16:54The amazing thing is, is what you would add to it would be incredible.
16:58What you would add to it would also take it where we want to go.
17:02I don't know if there's a way for you to...
17:04There's just not enough equity there.
17:06Would you be able to go if you were to split it seven and a half each?
17:09Wow, interesting.
17:12So that would get us to 15.
17:14Yeah.
17:15And I know you don't want to go to 20.
17:16If you got up to 18, nine each, then I think we could probably do it together.
17:21Nine and nine, 18%.
17:23Yeah, that's...
17:24Eight and eight?
17:2415 was the biggest stretch for us.
17:25But you're getting two sharks.
17:27Okay.
17:28We're going to confer here for a second.
17:29This is your money.
17:32It is.
17:34It is.
17:3516?
17:36No.
17:37Can I ask one more time?
17:38All right, I'm going to ask one more time, but don't get mad at me.
17:41Is there any chance you guys would do it for 16 split?
17:52Sure.
17:55All right.
17:56We've got a deal.
17:58Great thing you asked.
18:00Congratulations.
18:01This is so exciting.
18:02Watch your feet.
18:03It's a point, I do.
18:03You guys did such a good job.
18:05It's great.
18:05Oh, my God.
18:05Congrats.
18:07Oh, my God.
18:10You did it.
18:11You did it.
18:12You did it.
18:12You did it.
18:13No, you.
18:14We did it.
18:14Okay, we did it.
18:15Steve and I have been working on this for four years, and it's such a validation of all our
18:21hard work.
18:21So I thought I'd ask one more time, and they said yes.
18:26I learned that from my kids.
18:28Just keep asking until they say yes.
18:29In Shark Tank's seasons past, Barbara Corcoran invested in two holiday-themed businesses,
18:37Holly Ball and Hire Santa.
18:39Let's see what they're up to now.
18:40I invested in Holly Ball and Hire Santa because I love the people.
18:44The minute I put my money into holiday-themed businesses, I'm feeling happy.
18:49Come on up here.
18:49Holly Ball and Hire Santa are coming together to have a holiday extravaganza.
18:54We're here at the historic Grand Galvez Hotel.
18:56Barbara's connected us with Hire Santa to throw a holiday party.
19:00All of our guests are bringing presents to donate to those less fortunate.
19:03And together, we've worked to make this a magical night full of love and cheer.
19:07Oh my gosh, thank you so much.
19:09What I loved about the Holly Ball girls is they have tremendous energy.
19:14And on top of that, they're three great salespeople, which is essential.
19:18When we came into the tank, we had $117,000 in sales.
19:21Just three years later, we're at $14 million in sales.
19:25When we started, it was just the three of us.
19:27Now we're working with a team of 12.
19:29We've developed a new product line, including our minis and a deflate, so you can put your
19:33whole tree into one small storage box.
19:36After today, you're going to be professionals at delivering the love and joy of Christmas
19:40on days when the real Santa can't be here himself.
19:45Mitch of Hire Santa is the hardest working guy I've ever dealt with.
19:49He's just a phenomenal entrepreneur.
19:50When we first appeared on Shark Tank, we had done less than $700,000 lifetime.
19:55That's over 10 years.
19:56Since then, we've done over $15 million in sales.
19:59We've sent Santa Claus entertainers to all 50 states, but not just the U.S.
20:03Canada, Mexico, the Caribbean, China, even the Middle East.
20:06And we're working with really great clients like the Ritz-Carlton, the NFL, NBA teams.
20:11Anyone who needs Santa to come to a home office or retail establishment, hire Santa's there.
20:16Now get out there and make this the best holiday season ever.
20:19You've been so, so generous with your hearts and your gift giving.
20:26Thank you, and happy holidays!
20:29There's nothing better than people acting as a family to celebrate the holidays.
20:34They're coming together, they're helping each other, and they're creating a great event for
20:37people to come and support their favorite charity.
20:40Cheers!
20:40These companies are team players, and I would suggest find a teammate if you're going to build a big business.
20:47Happy Holidays!
21:01Next up is a company seeking to be festive and inclusive.
21:05Hi, Sharks!
21:15I'm Jasmine Hudson from Cincinnati, Ohio.
21:17And I'm Jaren Merchant from the U.S. Virgin Islands.
21:19And I'm Madia Willis, a Liberian-American from PG County, Maryland, and we are seeking $250,000
21:25for 5% equity in our company.
21:28Sharks, the true meaning of the holidays is spending time with the ones you love.
21:32But if you ask any kid what the holidays are truly all about, you know what they'd say.
21:37Presents!
21:38Who doesn't love opening a meticulously wrapped gift from under the Christmas tree?
21:43But for many Black children, the festive images of families in holiday sweaters and of Santa
21:49delivering presents with his elves don't reflect their experience or family.
21:54That's right.
21:55Black people are visually underrepresented in seasonal products.
21:58And did you know that Black Americans spend 15% more than the average during the holiday
22:02season?
22:03That's why we created...
22:05Black Paper Party!
22:07Culturally relevant, seasonal products that celebrate Black families and spread joy during
22:12the holidays.
22:13We make wrapping paper ornaments, gift bags, and decor.
22:17We have Papa and Nana Claus, the Claus babies, and of course, Aunt Holly, who was single all
22:22the way and ready to jingle all the way.
22:24Along with a host of angels and gnomies, because gnomies are our homies.
22:29Get it?
22:30So, Sharks, join the Black Paper Party and let's wrap up this deal.
22:35Good job.
22:36All right.
22:38Sharks, in front of you, you have samples of our stockings, two wrapping papers, our signature
22:44mug, and an ornament.
22:46You know, I didn't know Santa Claus was black.
22:48I swear to God.
22:49Listen, I'm telling you.
22:50How many SKUs do you have?
22:52Because you've got paper, you've got the ornaments.
22:54Overall, we have about 200 SKUs.
22:56That's including our direct-to-consumer and our licensed products.
23:00So, who designs them?
23:01So, I design all the characters that you see in the Black Paper Party universe, and then
23:04Maria takes those characters and creates all these amazing print patterns.
23:08Nice.
23:08You're selling...
23:09All our creative is done in-house.
23:11You're selling retail?
23:12Yes.
23:12We'll be in six retailers this Christmas, ranging from Macy's, Target, Walmart, Family
23:19Dollar, and Dollar General.
23:20And how many stores in total will you be in?
23:22Over 6,000 points of distribution.
23:24Wow.
23:24Yes.
23:25So, you said you've got to be, like, up there with Santa Claus.
23:28Yeah, we have some sales.
23:29Yeah, well, tell us about your sales.
23:31In 2020, we did about $44,000.
23:34That's prior to us going into retail.
23:362021, $274,000.
23:402022, $844,000.
23:43Wow.
23:43And this year, we're on track to do $1.1 million.
23:45That's fantastic.
23:47Wow.
23:47That is really amazing.
23:49Excellent, excellent.
23:50Tell me your background.
23:51So, just recently, I did pre-visual development for Disney Junior's The Little Mermaid.
23:56Wow.
23:57So, I helped them make the print.
23:58So, you're quite the artist.
23:59Yes, she is quite the artist.
24:01Jasmine and myself come from a retail background.
24:04I was a textile designer at Target for many years.
24:08I was also a product development and sourcing manager at Walmart.
24:13So, design is truly my passion.
24:15And representation is also something that ties our whole career backgrounds together as well.
24:21Yeah, and then for me, my entire career was at Walmart.
24:24So, I started as an associate merchant with Bakeware.
24:27And then I went on to be a merchandise financial planner.
24:30So, I had pretty much all of home decor, which is about $2.3 billion in spend.
24:34Wow.
24:34That's very sad.
24:35So, can I go back to 2022 and get into this 844?
24:39That's a pretty good number.
24:40Impressive.
24:41Did you make money on that?
24:42We did.
24:43So, that year was a 53 gross margin.
24:47We made $158,000 net.
24:50And that was about 14% of sales.
24:54Is that cash profit?
24:55That is cash profit.
24:56That's profit.
24:56And do you pay yourself salaries?
24:57Do you pay yourself anything?
24:58We do pay ourselves.
24:59We pay ourselves now.
25:00So, that's after you paid yourself.
25:02Yes, sir.
25:02Good for you.
25:03Okay, and this year, what do you think you'll do on the $1.1 million?
25:06On the $1.1 million, we'll make $150.
25:08The gross margin percent is 65.
25:11So, this year, 57% of our sales are going to come from wholesale, 16% direct-to-consumer,
25:1927% license.
25:22What do you sell a roll of paper for a direct-to-consumer?
25:24What's it cost you to make?
25:25Yep.
25:25So, that is $10 and $2.33 to make.
25:28And how's that compared to other paper?
25:31So, we're comparable in the market.
25:33So, is there a plan to be not as seasonal?
25:36Yes.
25:37So glad you asked.
25:38We are actually looking forward to a Black History Month program.
25:42We'll have a Valentine's Day program.
25:45Birthday.
25:46Wedding, showers, graduations.
25:48Yeah.
25:48And we are super excited, actually, to launch our party collection, which will be everyday
25:54birthday celebrations, which we believe are the second largest market after Christmas.
26:00Let me just jump in with one thing, because I'm curious.
26:02I mean, you guys couldn't have a more perfect background than to be doing what you're doing.
26:06So, why do you need a shark?
26:08What do you need from a shark?
26:09We really would like to scale our e-commerce business.
26:13We would like to scale our marketing strategy.
26:16And also to drive sales in stores as well.
26:19You know that...
26:20Exactly.
26:20Right, because guys, it sounds like you might not be making money in stores.
26:24We actually can't take on the business that we could.
26:30Our retail business is limited by how many accounts we can manage.
26:36Mark, there are three of us, and we do our own sales and back-end.
26:39But the interest in retail, in addition to our licensing business, is there.
26:45We literally cannot...
26:46We are turning down the ability to supply retailers who are interested in us.
26:49So, guys, let me take a step at it, okay?
26:51The good news is this category is far larger than what you're selling.
26:55Indeed.
26:56And you found a unique niche, and you're very credible to serve it.
26:59The way the big people play in this space, the big players, they use distributors.
27:04So, they bring the lines out, and they go out and put it everywhere.
27:08And their sales are 100x what you're doing.
27:10All seasonal.
27:12All holiday.
27:13Mm-hmm.
27:13I don't like your distribution strategy, doing it yourself.
27:16I would have partnered with one of these behemoths, and there's three of them.
27:20What you're doing here is too small.
27:23You should be doing way more than a million bucks in sales.
27:25You have the best part of it.
27:26You have the IP.
27:28You got the hard part done.
27:29You've got the hard part done.
27:30You just have not got distribution nailed.
27:32I'm sorry, guys.
27:33I'm out.
27:36So, you are asking for a $5 million valuation.
27:40We are.
27:40With $1.1 million in sales.
27:43Um, it's a pretty tough number.
27:46I'm trying to find where I have room.
27:49Well, you're looking for room I'd like to make an offer.
27:52I think you guys are amazing.
27:55Top to bottom, everything you said is perfect.
27:58Your background, your enthusiasm, your product line.
28:02I'll make you an offer of $250,000, but I'd like 15% of the business.
28:0615, Barbara?
28:0715.
28:0815%.
28:08That's reasonable.
28:09You're sad, actually.
28:10It's not bad.
28:10So, Barbara, you don't want to do something?
28:11I mean, listen, I look at you guys, and I, all I think, I think about, I want to invite
28:16you, and I don't want you inviting me.
28:17Okay.
28:18I'm people, you are.
28:19Check, check, check, check.
28:19But we don't want to get 20%.
28:208+++.
28:21Yeah, I do.
28:22I actually did.
28:23You have fabulous backgrounds.
28:23Just let you work.
28:24Perfect for this business, and you guys are bosses.
28:25Anything less St. Morse.
28:26Like, that is clear.
28:28As a woman in business, I really admire what you've done.
28:30I know it's not easy.
28:32Truthfully, for me, I don't like seasonal items.
28:35I kind of wince away from them, because it's just not me.
28:38Barbara actually has done a lot of good seasonal deals, and she threw in a good offer, and I
28:43think she'd be a really good partner for you.
28:45Do you know, I just recruited Mark as my partner.
28:47So, for that reason, I'm out.
28:49We're not going to miss her.
28:50What's the new deal?
28:51Okay, Mark is going to come in with me, and our offer is going to be $250,000 for 20%,
28:56because we're each going to be a 10% partner.
28:59Only $250,000.
29:00No, but you get the two of us together.
29:01Do you want to give up more equity and take two partners, or would you rather just have
29:05one partner with less partners?
29:05We would rather...
29:07Don't get that idea, man.
29:07We would love to have two sharks.
29:09We would.
29:10Would you consider $450,000...
29:13Ichiwabakaramba!
29:15...for 18%?
29:19No.
29:20Like I said, you're savvy.
29:22Barbara, would you consider $250,000 for 10% equity in our company?
29:28And leave my poor guy, Mark, out?
29:34Of course I will.
29:38I'm sorry, Mark.
29:39That's okay.
29:43Let me give him my start.
29:45Yay!
29:46Bring him in.
29:48If you give him a match.
29:50Congratulations, guys.
29:51Well done.
29:55Barbara's absolutely amazing.
29:57She has a history of supporting diverse women, strong entrepreneurs, and she is a strong
30:03woman entrepreneur herself.
30:05We would love...
30:06We can't express how excited we are to partner with her.
30:11Next in the tank are unexpected feathered guests.
30:17You know what this is now, guys?
30:19It's the duck tank.
30:22Duckapalooza.
30:22Oh, my gosh.
30:25Tipsy out.
30:26Good to see you, Robert.
30:27Surprised to see you here.
30:28Welcome back to Shark Tank.
30:30So, sharks, it's been exactly 10 years since being in the tank.
30:34What started as Ugly Christmas Sweaters has grown into countless exciting collections and products.
30:39After being inspired by Illumination's new movie migration, we're confident that the next big trend in Ugly Christmas Sweaters is...
30:48Ducks!
30:49Wow.
30:52Wow.
30:53Tipsy elves could be first in the duck space.
30:56The future of holiday fashion.
30:58Duck sweaters for the whole family.
31:00A frock for your flock.
31:02One for mom, the natural leader.
31:05One for the overly cautious father.
31:08And some for your youngest, most adorable ducklings.
31:11Who's along for the flight with us?
31:13The characters are so cute, but I'm not sure about the sweater.
31:19I'm seeing green ducks, but I'm thinking golden goose.
31:25What a foul idea, guys.
31:26I'm sorry.
31:28Listen, guys.
31:29I love the duck theme.
31:31These could be great for the entire family.
31:34I'm going to take a flyer here, but I have a contingency this time.
31:39My twins and I need to go see Migration.
31:43And if they love it, and I love it, I'm in.
31:47Do we have a deal?
31:49We have a deal.
31:51We know they'll love it.
31:52It's one of the best new movies this year.
31:54Woo!
31:57Great job!
31:59Flock to see Migration flying into theaters this Christmas.
32:02Rated PG.
32:03Tickets on sale now.
32:12Next up is a mom hoping to start a new holiday tradition.
32:19Hi, Sharks.
32:27My name's Miranda Vaughn, and I'm from Portland, Oregon.
32:30I'm seeking $200,000 in exchange for 10% equity of my company.
32:35T'was the month before Christmas when I received the worst gift,
32:39the useless gingerbread house decorating kit.
32:42Let's face it, they're no fun.
32:44We all know why they suck.
32:46Impossible to assemble.
32:47The children all hate the stale cardboardy taste.
32:50What a waste.
32:52So I decided to create a new Christmas tradition.
32:55The tomte cake.
32:57A 3D gingerbread house baking pan ready to create beautiful and delicious,
33:01no assembly required gingerbread houses.
33:04Fresh out of the oven, ready for your kids to decorate.
33:07But the tomte cake is really so much more than that.
33:10Each set comes with an original children's story I wrote and illustrated
33:14about a pocket-sized gnome named tomte who accidentally falls into the cake batter
33:20and gets baked into a gingerbread house cake.
33:23But don't worry, this is a children's story, so tomte makes it out happy and healthy.
33:27And the story goes that whoever finds tomte in their dessert
33:31will have good luck for the rest of the Christmas season.
33:34Each three-piece set comes with everything your family needs
33:37to recreate the storyline of the book and begin a brand-new Christmas tradition.
33:42Sharks, it's about time we gave gingerbread house decorating an upgrade.
33:45Who wants to have a lucky Christmas with the tomte cake?
33:48Each one of you has a tomte cake gingerbread house in front of you.
33:51You're welcome to eat it.
33:52Let's find out who has the lucky tomte.
33:55Oh.
33:56Very cute.
33:57It's tomte.
33:59Tomte is a Swedish gnome.
34:01Very tasty.
34:03Good.
34:03Not bad.
34:04Not bad at all.
34:04You said one of us have a tomte in here?
34:06You should, yeah.
34:07If it's not the tomte I'm hitting, something's wrong.
34:09Oh, Mark's the lucky one.
34:11Wow.
34:12He's had enough luck already.
34:14He didn't need that.
34:15I'm out.
34:17How'd you come up with this idea?
34:18I was sitting at the dining table with my two kids.
34:21They were four and six at the time.
34:22And we could not for the life of us get those things to stay together.
34:26And I ended up using a hot glue gun on his and he's crying because now he can't eat it.
34:32And I was like, there has to be a better way.
34:34I thought, why don't we just have a nice cake that we don't have to assemble?
34:37And I thought it'd be a lot more fun if there was a story to go with it.
34:40And what is included in your little packet?
34:42So each set comes with the baking pan and the gnome and the book.
34:46And what do you sell it for and where do you sell it?
34:48I sell it online.
34:49It's $60 per set.
34:51That's pretty pricey.
34:52What's it cost you to make?
34:54$15 a set.
34:55And so tell us about the company, the sales.
34:57I launched October 7th of last year.
34:59I ended up selling out all 5,000 sets that I was able to have in my inventory.
35:04Really?
35:04And how quick?
35:05In 35 days.
35:06Wow.
35:07And how did you get the customers?
35:09I had a static graphic Facebook ad that I ran.
35:12It just said a new Christmas tradition and people just clicked the link.
35:15You said 5,000 units.
35:17I don't know if you discounted them.
35:18What was the dollar amount?
35:20Right.
35:20I did $200,000 in that 35-day period when I ran the ad.
35:25And how much did the ad cost?
35:26I believe it was about $40,000.
35:29That's not bad.
35:30That's a profitable return on ad spend.
35:32Did you have a history in online?
35:34No, not at all.
35:36I've been a stay-at-home mom for the last eight years and homeschooled my kids.
35:40What is your background?
35:40Well, one interesting part that has sort of made me a little Christmas-obsessed is I left a religious cult that I was raised in.
35:50We didn't celebrate holidays growing up.
35:52We didn't celebrate birthdays, Christmas, Mother's Day, Father's Day.
35:55And so after I left, I was able to experience Christmas for the first time.
35:59I just really was so amazed.
36:02I was blown away at how magical it is.
36:03It's just so beautiful.
36:04And so when I had my own kids, I wanted to just really immerse them in, like, all of the traditions.
36:10I mean, I see this being something that could be the next Elf on the Shelf.
36:14It could blow up into a tradition that everyone wants to take part in.
36:18The book has had rave reviews, and kids absolutely love it.
36:21It's a great gift item.
36:22Did you write this book yourself?
36:24I wrote it and illustrated it.
36:26You're hot stuff, really.
36:28You've done it all.
36:29You know, I'm curious.
36:30I want to know what your expectations are on the participation of the shark.
36:34Besides money.
36:35I want mentorship.
36:37I am really creative.
36:39I'd love to come up with another concept that branches off of this.
36:42I'd love more of a product line.
36:43I am not a business person at heart.
36:46Yeah, you could have fooled us.
36:47You could have fooled us.
36:48And how much did you personally invest it?
36:49$150,000, roughly.
36:51Where did you get that from?
36:53Yeah, we mortgaged the house.
36:54Damn.
36:55Took a loan against the car.
36:56You and your partner, husband.
36:58It's all been paid back, yeah.
36:59Look, I think it's so simple, so eloquent.
37:01It's such an easy story.
37:03I get it.
37:03I do the deal for 25%, and the way it works is, when you take out a dollar, I get 25 cents.
37:10And you don't have to take out a dollar, but at some point you have to pay yourself, and
37:14I want to get paid, too.
37:16So what do you need the money for?
37:17I want to be able to bulk up my inventory and financing purchase orders.
37:21If I were to get a hard purchase order and make a deal with any one of you...
37:25You don't want to sell in retail, do you?
37:27I do.
37:28Who's asked you to go to retail?
37:30My heart.
37:31Oh, you want to go to...
37:32I love that.
37:33You want to go to retail when you've got a hit online?
37:36That's kind of taking a little air out for me.
37:38She's on a mission, Kevin.
37:39This is not a company.
37:40It's a mission.
37:40She says she wants it to be like Elf on a Shelf.
37:43That's the thing.
37:43It's not just selling a cake pan.
37:44You're selling a tradition.
37:46Eventually, if you do well enough and you start to build the name and the legend and the brand,
37:52I see it at Valentine's Day with a cute Valentine's house with a hidden heart or something inside.
37:57I see it year-round, but a fun tradition where the kids are waiting to find the thing and they get the good luck for that holiday.
38:04Or birthdays and just have it be totally evergreen.
38:06All of that.
38:07So here's my offer.
38:08$200,000, but 33 and a third percent.
38:11I know it's steep, but now it takes work.
38:15Okay, thank you.
38:15And I'll clear the deck some.
38:17That's better than I could possibly do.
38:18I'm out.
38:19Okay, thank you.
38:20I think what you're really looking for is a team of mentorship because there's nothing better than having a team of people surrounding you.
38:28I get around my entrepreneurs, not only one-on-one with them, but everyone in my office knows everything about their business.
38:36We constantly have brainstorming.
38:37So I would love to make you an offer, and it's going to be a little less greedy than Mr. Wonderful here and a lot less greedy than this is not so wonderful next room.
38:47I think the greedette.
38:48I'm going to offer you $200,000 for 20%, but what I guarantee is you will be focused and you will find all the right answers.
38:56And you're a phenomenal business person, by the way.
38:59Don't ever say you're not again.
39:00Barbara, would you let me come in on that if we do it for 25?
39:03We don't need you.
39:04I got so many.
39:04Come on, Barbara, 25%.
39:06I come in with it.
39:07I help with the publishing side and all that good stuff.
39:11No, thank you.
39:12I don't need you.
39:12So you have three offers.
39:14Lori, would you want to get it into retail?
39:17Is that something that you think is a good idea?
39:18I am a believer that we do a master plan, and then we strategically go into retail.
39:24Lori, you let me in on your deal?
39:25Well, I don't really think I need another shark.
39:28I love you, but I don't think I need another shark.
39:31This one is better.
39:32I'll give you $200,000, but 25%.
39:34Thank you, Damon.
39:36Well, that's four offers.
39:38What do you want to do?
39:51One shark is out.
39:53Miranda has four offers on the table for her gingerbread cake mold set, the Tompita cake.
39:58What do you want to do?
39:59Barbara, how would you want to approach it?
40:02I have the most important ingredient, great people.
40:06I have so many holiday businesses.
40:08I never meant to get into that business, but I have so many.
40:11They cross-fertilize everything they do.
40:13It sounds amazing.
40:14It sounds great, but I'll tell you what my entrepreneurs do with my team.
40:18We make money.
40:20If that's why you're here, I'm your guy.
40:23You may want to go in a different direction.
40:24I know that you each have something really special to bring.
40:26What do you want to do?
40:28Um, Lori, would you do 20?
40:30That's what I offered you.
40:32But you'd prefer working with Lori.
40:33No, I'm not saying that.
40:35I would do it for 25%, but I can't go lower.
40:39You will not be disappointed.
40:41Would you do 22?
40:44I'll do 25.
40:46You want me to be in it.
40:47I want to make a good decision also.
40:49But you'll be making so much money.
40:51Okay, just to move things along, I'm going to change my offer.
40:54200,000 for 15%, just to make it interesting.
40:57Oh, wow.
40:58Because I'm really getting frustrated watching this.
40:59Oh, my gosh.
41:00Just to put a little pressure.
41:02You know, by the way, every one of us have the same teams that work on all that.
41:06No, you don't.
41:06It's the quality of the people.
41:08You do not.
41:08I may be helping you here.
41:09Stick to your guns.
41:09I may be helping you.
41:10I know.
41:10You have six.
41:11I have 30.
41:11Stick to your guns.
41:12You know what you want.
41:13Either these sharks are coming down, or you're going to go with me.
41:17I'll go 24.
41:17I mean, you have to make a decision.
41:1920.
41:19Do 20, Lori.
41:21Well, I went down a little.
41:22I know you did.
41:23I feel I'm worth it, but I want to show you.
41:25I believe you.
41:26I know.
41:26That's really different.
41:27Time for a decision.
41:28It's time for a decision.
41:35I'm pretty interested in working with Kevin at 15%.
41:38Wow.
41:39Hello.
41:41And on my face.
41:43I've never seen a Mr. Wonderful swoop before.
41:45Wow.
41:45I know something.
41:47Wow.
41:48It was all about money.
41:49Stay focused.
41:51Congratulations.
41:54I was really wanting to work with Lori because I've heard such great things, but I know that
41:59Kevin's an incredible businessman, and he gave me a really fantastic offer.
42:03It was the Grinch that stole Christmas.
42:05No, honestly, Kevin.
42:07Wow.
42:07That is the first Mr. Wonderful swoop in the history of Shark Tank.
42:11I cannot believe that.
42:12Wait.
42:13Wait.
42:13Wait for it.
42:13What's the percentage?
42:14You know what he's saying?
42:16Lori's so meany.
42:17She's so meany.
42:19Daddy, daddy, don't let me near her.
42:21She's so meany.
42:21Hey!
42:32Yeah.
42:33Oh, my God.
42:33No.
42:34Yeah.
42:35Transcription by ESO. Translation by —