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00:00Tonight on Shark Tank.
00:02Sharks!
00:03What is up?
00:05Who's ready to take the plunge?
00:07Don't be a wimp.
00:08You better be selling a lot of them.
00:10$4.9 million in sales.
00:11Wow.
00:12I'll give you $5 million.
00:14Whoa!
00:15It's a lone shark deal.
00:17You're the walking, talking billboard of how to do it right.
00:20But wait, there's more.
00:21Oh, there's more.
00:22Boom!
00:30First in the tank is a convenient version of a popular cuisine.
00:46Sharks!
00:48We are pumped to be here.
00:50My name is Doc.
00:51My name is Chong.
00:53And we're from...
00:54Ko-bap!
01:01Jung, what is Ko-bap?
01:04Ko-bap?
01:05C-U-P-P-O-P
01:12Ko-bap, Ko-bap, Ko-bap.
01:15Ko-bap is Korean barbecue in a cup.
01:19We are super energetic.
01:22A little bit crazy.
01:25A little bit crazy.
01:26Quick-service Korean barbecue brand.
01:29Did you know that there's only one Asian concept
01:33in the top 50 quick-service restaurants?
01:36There's room for more.
01:38And we are next!
01:39K-pop!
01:40K-drama!
01:41K-movies taking over!
01:43It's time for...
01:45K-food!
01:47To take over the world!
01:49We have an offer for 3% for our company for $1 million!
01:56What?!
01:57Wow!
01:58Are you serious?
01:59That's a lot of barbecue!
02:00What?!
02:01Sharks!
02:02We'll keep making the cup bops, you keep swimming in cash!
02:07Swim!
02:08Swim!
02:09Swim!
02:10Hey Sharks!
02:11We have a cup bop for each of you guys.
02:16Now...
02:17Just eat!
02:20Oh, fantastic!
02:21Oh my gosh!
02:22Wow!
02:23What a presentation!
02:24Fantastic!
02:25Alright, what's in here?
02:26Tell us what's in it before we go in.
02:28Oh, spicy!
02:29It's a 100% sweet potato noodle on the side.
02:32It's called japchae.
02:33And we have a bulgogi, it's beef, and hot spicy pork on the side.
02:38Oh, spicy!
02:39It's hot!
02:40So beef and pork mix.
02:41It's hot!
02:42It's hot!
02:43Whoa!
02:44It's hot!
02:45It is great!
02:46Thank you!
02:47And Barbara?
02:48It's yummy!
02:49It's not ketchup, it's a spicy food.
02:50That's right!
02:51Yummy!
02:52Wow!
02:53Are you okay, Ma?
02:54Are you crying?
02:55You alright?
02:56No, I'm good.
02:57And our customers can choose that.
02:58We've had a lot of different food concepts on Shark Tank.
03:01I have to give it to you.
03:02This is one of the best I've ever tried.
03:04Whoa!
03:05That's big, coming from Kevin!
03:07Guys, what's the cost of this?
03:09It ranges anywhere from about $8 to $10 per bowl.
03:13And what does it cost you?
03:15$1.80 to $2.50, so our gross margin is about 75%.
03:19And you gave us an astronomical number here.
03:21You said 3%, you wanted a million dollars.
03:24Your sales must be through the roof.
03:26Let's hear it.
03:27Our trailing 12 months system-wide sales is $18.7 million.
03:33Whoa!
03:34Wow!
03:35Are you kidding?
03:38How many trucks?
03:39So we actually, we started from a food truck.
03:42Now the trucks are more of a marketing tool for us.
03:46Brick and mortar stores, we right now have 27 stores.
03:50How many years have you been in business?
03:52About eight years.
03:53Tell us the sales, the trajectory.
03:56I want to know how you got to $18 million.
03:59Going back the last kind of five years, we were $7 million, $8 million, $9 million.
04:05So we were growing about a million each.
04:08And last year, we did right around $10.5 million.
04:12And this year, we're expected to grow 90%.
04:14Are these all on video?
04:15And during the COVID year, when people were not going out to restaurants.
04:19Yep.
04:20So how did you do that?
04:21So we shut our dining down, like everybody else, did only takeout.
04:26And delivery.
04:27And delivery.
04:28And our same store sales, we were up 9% during COVID.
04:31Wow.
04:32So that worked better for you, actually.
04:33Yep.
04:34Doc, what's your background?
04:36Yeah.
04:37So, previous to this, I was an investor at a major hedge fund.
04:41Actually, he was my first customer.
04:43What?
04:44Seriously.
04:45And I owned a food truck in Salt Lake City downtown.
04:47Wow.
04:48He came to me, hey, we love Korean.
04:50Hey, we love Korean.
04:51Yeah.
04:52So I'm Korean, and just fell in love with the products.
04:54I went, moved to New York, did my kind of eight, seven, eight years there.
04:59And I just wanted something different.
05:01Did you go and pitch him on being his partner?
05:04He called me.
05:05That's right.
05:06I called him up.
05:07Yeah.
05:08But he said, if you're not hiring me right now, you're gonna be regret for the future.
05:11Who owns the business and what percentage?
05:13So, we own half of the business.
05:16Oh, so you've raised a lot of money then.
05:18No.
05:19No, it's all that gross.
05:20We've actually never raised money.
05:22Who owns the other half?
05:23Who owns the other half?
05:24The other half, his co-founders.
05:26Oh, okay.
05:27And a group came in and just bought equity off of the other three partners.
05:32What did they pay for that equity?
05:33What valuation?
05:34Undisclosed.
05:35We don't know.
05:36We don't know?
05:37Yeah.
05:38So your ex-partners are just gone, basically.
05:40They took the money and raised.
05:41Yeah.
05:42So we've actually, so we've been growing through organic cash flow.
05:44We've never raised money, actually.
05:45Good for you.
05:46But during COVID, you pivoted, right?
05:48Yeah.
05:49Instead of having people go to the stores, you said you were doing delivery business.
05:52Mm-hmm.
05:53You killed it last year.
05:55Why do you need a store?
05:56The reason why, it's not only about the food.
05:59We want to give you a really good experience with our customer.
06:02We high-five all the time.
06:04We're hugging.
06:05We're dancing together.
06:07Korean people are the party people.
06:09That is fun.
06:10They know how to play.
06:11You said you hadn't raised any money.
06:13Yep.
06:14Why didn't you bring in any investors before you got here?
06:16We got so many investors came to us.
06:19I said no for eight years.
06:22Mm-hmm.
06:23Because I think I can make a 2,000 store with you guys.
06:28I want to be the first Korean national brand with the sharks.
06:32When I came here for a long time ago from Korea, I'm not good students in Korea.
06:39I got F grade all my life.
06:41They call me I'm the failure.
06:43I'm the loser.
06:44But when I came to the United States, I found opportunity here.
06:48If I work hard here, I can make a dream come here.
06:52This is a big thing for me.
06:54Not because of money.
06:56I want to get the opportunity to tell them, hey, first Korean national brand here.
07:01So, Jung, we heard all about you.
07:03Fabulous story.
07:04I love it.
07:05But, Doc, I want to hear a little bit about you.
07:07Yep.
07:08I was born in Korea.
07:09And when I was 11, my family came on a summer vacation in the U.S.
07:16And the day before we were supposed to fly back, my mom and dad sent me down and my older brother and said,
07:23Oh, by the way, we didn't tell you, but you guys are not coming back with us.
07:27Whoa.
07:28What?
07:29So, they had planned this all along.
07:31So, they found a family, a school.
07:34And they thought that if they told us, we wouldn't want to come.
07:39And so, they did it the hard way.
07:41The next day, bam.
07:42My God.
07:43Wow.
07:44And they chose Utah because they just heard that Utah was a religious state, that a lot of people don't smoke and drink.
07:52They thought, oh, that's got to be saved.
07:54We're sending them to Utah.
07:57Doc, I mean, that story is incredible.
08:00Why do you think your parents did that?
08:02Why did they drop you off in America?
08:05It was really for the opportunity.
08:08Absolute best decision that they've ever made for us.
08:12And I am just forever grateful for what they've been.
08:16It's amazing how the people who grew up here don't feel the same way.
08:19Think about what your parents sacrificed for the American dream.
08:24I now only can I really start understanding my parents a little bit now that I have my own kids and the love that I have for them.
08:32He got two kids.
08:33I got five kids.
08:34Wow.
08:35How do you work?
08:36Maybe that's why you work so hard.
08:38But my wife support me 100%.
08:40I love this story.
08:42Like you guys, my dad gave up everything to come here.
08:47I had to friggin' be successful to justify that sacrifice.
08:52And you guys are onto something here.
08:55Purpose comes through everything except $1 million for 3%.
09:01I don't know what the purpose of that is.
09:04What is it?
09:05A $30 million valuation?
09:06$33 million.
09:07Yeah, $33 million.
09:08How do I get there?
09:10Yeah, it's really the growth rate.
09:13It took us seven years to get to $10 million.
09:16We have ten more stores coming before the end of the year.
09:19I like the deal.
09:20I like the mission.
09:21I like the energy.
09:22I love the food.
09:23And I like the cash flow a lot.
09:26Okay?
09:27I'm gonna make you an offer.
09:28All sharks are still in, and Kevin has an offer to make for Jung and Doc's quick-serve Korean barbecue business, Cup Bop.
09:47So here's the deal.
09:48I'm gonna loan you the million dollars.
09:49I'm gonna put a 10% interest rate on it.
09:50It's 36 months amortization, three years, and I'm going to take the 3% as a warrant.
10:00So I get equity.
10:01I get 3%.
10:02I put all I can bring to it as Chef Wonderful and all the rest of that stuff, and you have a Shark Tank deal.
10:07Guys, can I pay your attention a moment?
10:09I'm very familiar with this space because I have a hugely successful business, Cousins Mane Lobster.
10:13And they have over $200 million in sales.
10:16But I also have to tell you the idea that you were dumb in school like I was.
10:20It's interesting to me.
10:21After 13 years on Shark Tank, every one of my top 10 business owners, founders, were terrible in school.
10:29Isn't that interesting?
10:30It's interesting.
10:31That is a great point.
10:32And yet when they get into the workplace, boy, oh boy, are they smart.
10:36So I believe in you, but it's too rich.
10:40I'd have to have 30% for $1 million.
10:42All right, laugh at it if you want, okay?
10:45But my sharp thinking on how I remodel all my businesses have made them much more money than that all along the way.
10:53You have two offers. Are there any other offers?
10:55The product is fantastic.
10:57I think the business is worth about $18 million today.
11:02You're asking for $33.
11:04I want to own a bigger piece, but that's simply a function of money.
11:08You're asking for $1 million for 3%.
11:12I'll give you $5 million for 28%.
11:16Oh.
11:17Wow.
11:18Which is an $18 million valuation.
11:19Wow.
11:20I mean, that's what I think the business is worth today.
11:22Listen, I love your model, and I just want to take the journey with you.
11:27I would give you $1 million as a loan, 8% interest, 5% equity.
11:32Hey guys, if it's just the cash you're looking for, I would give you $1 million loan for 5%.
11:38No problem.
11:39I'll do it for 3%, and I'll work on the finance.
11:41I would do it for 5%.
11:42And you know what?
11:43I'd do it with Barbara if Barbara wants to do it with me.
11:45I would love to do it.
11:46I haven't done a deal with you in her dog's age.
11:47That's right.
11:48We haven't.
11:49So Lori and I will give you 5% for $1 million loan.
11:51We'll go in together.
11:52Okay, so...
11:53Mark, what are you doing?
11:58First, I love the business.
12:00I love the product.
12:01I love the fact that you can make it a healthy alternative.
12:03But what I'm hearing, and tell me if I'm wrong, you've got the operations down, right?
12:07But you need someone to propel you in terms of marketing and PR.
12:11That's exactly right.
12:12And just to be able to have a national presence.
12:14So when people talk about cup-up, then people say, yeah, I know it.
12:18And I think I can provide that better than anybody.
12:20Because I do have that national platform, and I can get word out there better.
12:24But at the same time...
12:25We all have that national platform.
12:27No, no, it's not quite the same.
12:28We can all get it out there as well.
12:29So it's not quite the same.
12:31It is quite the same.
12:32What I would do is $1 million of straight equity.
12:35I'd like 7%.
12:37And my commitment is, though, I can help you just scale this thing in terms of visibility and PR.
12:42My portfolio is full of all kinds of healthy alternatives.
12:45So that's my offer.
12:47$1 million for 7%.
12:49Let me tell you what's wrong with Mark's plan.
12:51His appreciation of your business is lovely, but it's wrong.
12:55This is not a healthy alternative.
12:57This is a delicious alternative.
12:59Yeah.
13:00This is not a healthy brand.
13:01This is a fun brand.
13:02No, and I'm not saying you turn it into a health store at all.
13:04And then last...
13:05What I'm saying is you can extend your customer base.
13:06No, but Barbara's right.
13:07And he said he could create the publicity.
13:09We all can create the publicity.
13:10That's right.
13:11He could throw in a basketball or two.
13:12Yes, it is.
13:13What are you going to do?
13:24Mark, would you be able to do $1 million straight equity for 4.5%?
13:31I'd go 5.5% is my lowest.
13:34I'm not cheap.
13:38I'm worth it, guys.
13:395%.
13:445%.
13:451 million equity for 5%.
13:51With the other partners, we kind of set the parameters.
13:53I just don't know what's going to happen if we...
13:55That's honestly...
13:58All right, I'll do 5%.
14:00Yes!
14:02Yes!
14:03Only because of those other partners.
14:05Thank you guys so much.
14:12Good luck, guys.
14:14Do the dance again.
14:15Do the dance.
14:20America is truly the land of opportunity.
14:22Yes.
14:23I mean...
14:24I 100% agree with that.
14:25It's a huge milestone for us.
14:26And so I could honestly not be happier right now.
14:29We can go to moon, right?
14:30That's right.
14:31Let's go to moon!
14:33Right!
14:36In Season 12, Michelle and Jake Sandowski made a deal with Lori Grenier for their food storage trays, Super Cubes.
14:43I am going to offer you my golden ticket.
14:46Okay!
14:47I only do it once a season.
14:48Let's see what they're up to now.
14:51In the first 24 hours after airing on Shark Tank, we did $938,000 in sales, and we only stopped because we sold out a product.
14:59With over 900,000 Super Cubes trays sold, we've done $8.6 million in sales since Shark Tank and over $14 million in lifetime sales.
15:09We've expanded our distribution outside the United States, including Canada, Mexico, Europe, Australia, and the Middle East.
15:16In the United States, we're in more than $150, a nationwide rollout to all crate and barrel, and we're going to be in 830 Bed Bath & Beyond stores.
15:26Yeah!
15:27Whoa!
15:28Wow!
15:29This is amazing!
15:30It is a really big deal to get into a store like Bed Bath & Beyond nationwide.
15:35That is every person's dream that has a product, and we've done it.
15:40I couldn't have better partners.
15:42There couldn't be a better product.
15:43That's why you got my golden ticket!
15:46This partnership with Michelle and Jake really means a lot to me because they're wonderful entrepreneurs.
15:51Working with them is such a pleasure.
15:53They've enriched my life as much as I've enriched theirs.
15:55I'm so happy to help make your dream come true.
15:58I mean it.
15:59Love you guys.
16:00We love you.
16:01Our advice to other entrepreneurs would be, of course, to believe in yourself and your idea, but also be open to learning from your mistakes and from others.
16:09Still really hard to believe that this is true.
16:12We started Super Cubes as a hobby and a passion and to build it into our career that we get to work on together as a husband and wife.
16:20And to be in so many families and homes across the country is really a dream for us.
16:25And it makes us feel pretty super.
16:27Super Cubes!
16:39Next in the tank is a company that brings a cool addition to your wellness routine.
16:52Hey Sharks, I'm Michael Garrett.
16:54And I'm Ryan Dewey.
16:56And we're from Sacramento, California.
16:58Our company is Plunge.
17:00And we're seeking $1.2 million for a 5% stake in our company.
17:05Sharks, what if I told you you could lower inflammation, increase fat loss, strengthen your immune system, sleep better, reduce muscle soreness, have more energy in just one minute?
17:21Well, this isn't fiction.
17:23This is reality.
17:24And this is not a bathtub.
17:26This is a cold plunge.
17:28Studies show that cold plunging increases norepinephrine levels two to three times their normal amount.
17:35I don't know what that is either.
17:38But apparently, that's what leads to all those incredible benefits.
17:42Sharks, all over the world, cold exposure is exploding.
17:46But buying 40 pounds of ice is a huge hassle.
17:50Our revolutionary cold plunge uses powerful cooling and filtration to give you cold, crystal clear water whenever you want.
17:58All in a beautiful, sleek tub.
18:01Just set your temperature anywhere from 60 all the way down to 39.
18:05Wow.
18:06So Sharks, who's ready to take the plunge?
18:08Wow.
18:09How about you, Robert?
18:10You look like you could use a plunge.
18:12I'll try it.
18:13I'll try it.
18:14Let's go.
18:15Let's do it, baby.
18:16What's the temperature set at?
18:1755 right now.
18:1855?
18:19That's not bad.
18:20It's pretty cold.
18:2155 is cold.
18:22No, I've done cold plunges, like, many times, because we have one at the Mavericks, obviously.
18:25Why can't I fill up my tub with cold enough water?
18:27Cold out of the tap isn't going to be, you know, 55.
18:30Maybe some times of the year if you're in a cold environment.
18:33You can throw ice in it, though.
18:35Can you throw ice?
18:36That's what most people do right now.
18:37You do throw ice?
18:38Yeah.
18:39And then it's like they have to drain it right after, where our unit, it's always filtering.
18:42It's always set.
18:43It's always clean.
18:44It's about if under like...
18:45Oh, Lord.
18:46Oh.
18:47Oh.
18:48All right.
18:49All right.
18:50The key here is going to be anchoring to your breath.
18:52Your body is going to want to be really excited, and you're going to want to get out.
18:55But you want to override that with slow, long breaths.
18:57Just relax, Robert.
18:58How long is he supposed to hold back the urge to jump out?
19:01Two minutes.
19:02Here he goes.
19:03Two minutes is ideal.
19:04Oh!
19:05Shit!
19:06You can't do that, Robert.
19:07You just got to get in.
19:08Don't be a wimp.
19:09So do I just...
19:10Yes!
19:11Lay back, get comfortable.
19:12Robert!
19:13Robert!
19:14Robert!
19:15Robert!
19:16Robert!
19:17Robert!
19:18Robert!
19:19Robert!
19:20There we go.
19:21Slow breaths, Robert.
19:22There we go.
19:23Slow breaths.
19:24Slow breaths.
19:25You got this.
19:28Override the body.
19:29Your mind wants to get out.
19:30Just breathe through it.
19:31This is...
19:32Your body's loving this.
19:33Totally safe.
19:36Slow down the breathing.
19:37Nice, slow breaths.
19:38Beautiful.
19:39Be one with the cold.
19:40He's going to feel incredible after.
19:42Really cold.
19:43Are you feeling, like, numb?
19:44Like, you're getting used to it?
19:45Like, it's not as bad as when you first got in?
19:47It's shocking.
19:48But surprisingly, the breathing really helps.
19:51And now it doesn't feel as bad.
19:53I wouldn't say it's comfortable, but it's not bad.
19:56I'm here.
19:57Grabbing a towel right there.
19:59Oh, my God.
20:01Wow.
20:02Mark, why do they do it?
20:03Why do the athletes do it?
20:04It helps with inflammation.
20:05I'll just put my leg in, and that's it.
20:07Actually, it's incredible.
20:09Like, you feel your blood flowing.
20:11Like, seriously.
20:12Like, I feel...
20:13No, it wakes you up.
20:14If you go all in, it wakes you up.
20:15Ready to go!
20:16Let's go.
20:17Let's go.
20:18So, Michael and Ryan, the big ice cube in the room
20:20is the $1.2 million for 5%.
20:22It shoots a $24 million valuation.
20:25You better be selling a lot of them.
20:26We just launched a year ago.
20:28We were building out of his garage literally 12 months ago.
20:30We sold our first unit.
20:32To date, we've done $4.9 million in sales.
20:34Wow.
20:35Good for you.
20:36Wow.
20:37Over the 12 months, $4.9.
20:38Year to date, $4.5.
20:39And we're on pace this month through $1.1 million.
20:41So, walk us through the economics.
20:42Good job, guys.
20:43What does it cost to make one?
20:46And how much do you sell it for?
20:47And how do you sell it?
20:48So, we sell them all on our website.
20:50And so, this plunge is $4,800.
20:52Wow.
20:53So, it's very affordable.
20:54Our landed cost is $2,400.
20:56And that does include shipping.
20:57Do you have an installation service?
20:59That's the amazing part of it.
21:00It shows up.
21:01They put it wherever you want it.
21:02From there, you have about 15 minutes of setup.
21:04And that 15 minutes is mostly filling up with a hose.
21:07The question is, how big is your market?
21:09Right?
21:10Because what happens when somebody comes up with a good product,
21:12you get all the pent-up demand as people hear about it,
21:15and they dive in, right?
21:16So, you get this initial surge at a $24.5 million valuation
21:21and only having 5%.
21:22You have to make $24 million in distributable cash profits
21:27in order for us to get our money back, right?
21:29I have to think in terms, not only can I get my money back,
21:32but how much more money can I make on it?
21:34And for you to come on here with that valuation, I can't blame you.
21:37I can.
21:38I'll do the blaming.
21:39Okay, so, I like the deal because of the revenue,
21:43but I also see lots of competitors that could knock you off.
21:46I'll make you an offer.
21:48I'll give you the $1.2 million for 18% equity,
21:52but I have to get my money back somehow.
21:54So, I get 18% of the distributions, you get the rest.
21:58Every time you take out a dollar, I get 18 cents.
22:01Well, let me tell you what I think.
22:03I agree with Mark.
22:04I think about, like, how many years is it going to take me
22:07to get my money back?
22:09I wish you the best of luck, but I'm out.
22:12So, guys, is more money better?
22:15Like, is the $1.2 million when you've calculated
22:18what you really need?
22:19Or is it, like, if you got more money,
22:21would it make life better?
22:22Would it make things go faster?
22:24So, $1.2 million gets us, it's enough for 400 units
22:27that we can build.
22:28What we want to do with the money is to really ramp up production.
22:30Okay, I'm gonna give you an offer.
22:32I'll give you the 1.2 for 20%,
22:35and it's gonna be in the form of half a loan
22:38or line of credit, whatever you prefer,
22:40because I think that's your real need.
22:41You just have cash flow problems.
22:43And then the other 50% up front.
22:46Got it. Thank you.
22:48I asked you a question about cash
22:49because I wanted to see what you were doing with it.
22:51If you have more cash, do things go faster?
22:53And it sounds like they do.
22:56I'll give you $2.4 million.
22:59$1.2 million for a straight equity.
23:03I want 15% for that.
23:05And I'll give you the other $1.2 million
23:07as a straight-up loan,
23:09same rate you will get from the bank,
23:11because I do think more money will make things go faster.
23:14So that's my offer.
23:18Guys, I'll simplify all that, okay?
23:20I'll offer you the $1.2 million,
23:2215%, right?
23:24I'll finance your purchase orders,
23:26and it's just gotta be first dollar back to me on the sale.
23:29And so if you finance 100 units or 200,
23:31when you sell those, I get paid back first, right?
23:34So it's just first dollar back.
23:36Got it.
23:37So you guys, you now have four offers on the table.
23:39What a lucky day for you guys.
23:41What are you gonna do?
23:42Robert, would you drop to 10%?
23:45I'd drop to 12%.
23:47Mark, 10%.
23:50Robert, we got a deal.
24:00All right.
24:01Yes, brother.
24:03Wow.
24:04Incredible.
24:06I am so cold.
24:11That was awesome.
24:12Awesome job.
24:13Thank you, Robert.
24:14Congratulations.
24:15Bye, guys.
24:16Good luck.
24:17Woo!
24:1812 months ago, we were in my garage building cold plunges,
24:22and now here we are.
24:23We have a deal with Robert, $2.4 million.
24:25It's incredible.
24:26Next in the tank is an innovation to a common kitchen tool.
24:42Hi, Sharks.
24:53I'm Adam.
24:54And I'm Josh.
24:55We're from Columbus, Ohio, and we're the creators of The Handy Pan.
24:59We're here seeking a $10,000 investment for 20% equity in our company.
25:04Sharks.
25:05Everybody loves Taco Tuesday.
25:07You know what nobody loves?
25:08Cleaning up the greasy, disgusting mess that follows cooking with a frying pan.
25:12We've all been there.
25:13You try pinching the lid, lose half your meat, still end up with grease in your tacos.
25:18Or you do the spoon dance, and you have to guess when your food is done straining.
25:22Or you have the messy exchange with a clunky colander that you still end up having to clean in the end.
25:27That's where we come in.
25:29Introducing the Handy Pan.
25:31A pan when you want it, a strainer when you need it.
25:34With the simple push of a button, boom, the amazing Handy Pan becomes a strainer, too.
25:39Bacon, no problem.
25:41Eating a little healthier, boom, perfect for your veggies and stir fries.
25:45How about pasta night with the family, Sharks?
25:48Boom.
25:49Now you cook your meat sauce all in one pan.
25:51Cook your meat sauce in one pan.
25:53Wow, that's really clever.
25:54Hey, and the Handy Pot is perfect for your pastas.
25:58What if you don't need to strain?
26:00You're cooking something that doesn't require it.
26:02No worries.
26:03The patented design makes sure the strainer is always there if you need it,
26:06but it's never in the way if you don't need it.
26:08The Handy Pan is a must-have for anyone who cooks.
26:11All right, Sharks, let's get cooking.
26:13Without the grease, of course.
26:15And you'll notice some samples in front of you to try for yourselves if you'd like.
26:18Josh, Adam, one of the hardest things you can do
26:20is get on this show.
26:22Thousands of people apply.
26:23Yes, sir.
26:24You did it, and you're looking for $10,000.
26:27That is correct.
26:29That's a first.
26:31That is a first.
26:33That's a great question.
26:34I'm glad you asked.
26:35It took three years of effort to get on this show.
26:37Basically, the valuation is that we wanted to come in here with a number
26:41that doesn't stand in the way of a deal.
26:43And have you sold any?
26:44So currently, to date after a small production run, we've got $7,955.61 in sales.
26:51Really?
26:52We understand with $7,900 in sales that we're not going to be able to ask for a million-dollar valuation, of course.
26:58That doesn't stop anybody.
26:59No.
27:00You've been in business three years. Why so few sales?
27:04Great question.
27:05The sales have been exclusively online, and what I believe is this is a product that's ripe for retail.
27:11How much does it cost?
27:12$29.99.
27:13$29.99.
27:14And what does it cost to make?
27:16It was $8.89 per unit.
27:19Landed, we were at $11.43, but that was only based off 950 units.
27:24But it's highly demonstrable.
27:26Why do you think your sales are so low?
27:28Personally, I think that people like this, but it doesn't move the needle enough in that mainstream market to make someone a frying pan customer who's not already a frying pan customer.
27:37But $7,000.
27:38There's got to be a bigger reason.
27:40I feel like you're not telling us something.
27:42Let's just ask honestly, what do you think you did wrong?
27:45You know, I think in hindsight, I think that we could have promoted it better with our online videos advertising sales.
27:53That's not an arena that either of us were in currently, so I think we had some struggles there.
27:57What were you in?
27:58What's your background?
27:59I started out as an entry-level person in an office technologies company.
28:04I ended up as the director of service for 10 years at that company, and then I've transferred into real estate.
28:10Okay, and you?
28:11I am an attorney, and I actually am a server and a bartender a few nights a week at a local restaurant.
28:16And an attorney.
28:17What does that say about your attorney skills?
28:18Yeah.
28:19Come on, man.
28:20It says I need a break a few times a week and want to hit the office switch.
28:23Oh, good clients.
28:24That's where he finds his clients.
28:25That's where he finds his clients, yeah.
28:26What type of law?
28:27I love that job.
28:28What area of law?
28:29Criminal defense, mostly.
28:30Perfect!
28:31You know, I'm going to tell you why it's $7,955 or whatever it is.
28:39Nobody cares.
28:40Chef, wonderful.
28:41This is not a product that's ever going to sell.
28:43No!
28:44Are you kidding me?
28:45Well, then how come there's no sales, Mark?
28:46Well, let's ask the right question then, right?
28:48How much money have you spent on advertising?
28:51For that amount of sales, we spent $553 on Facebook ads.
28:54There you go, right?
28:55It's very, very hard to sell direct-to-consumer online from your own website.
29:00So the next question becomes, did you try to sell these on Amazon?
29:03We did not.
29:05Oh, well, there's a big miss.
29:07Mistake made.
29:08But listen, I'm going to completely disagree with Kevin, all right?
29:11So I think that you probably just didn't have the right marketing savvy.
29:17When you're cooking, if you could just do this and drain out the grease, Eureka!
29:21You don't have to clean two things.
29:23The great part about the design and our patent is that it can fit on any size pan, any size patent.
29:27And you have a patent that covers all of this?
29:30We have four patents.
29:31We have design and utility on what you're holding.
29:33We have design issued on pot and pending utility on pot.
29:37So three of the four are issued.
29:39The value of having an attorney partner, right?
29:42So listen, we've got a great product.
29:44Guys, it's a great product.
29:46Here's what doesn't make sense to me.
29:48You're obviously bright guys, right?
29:51You're a lawyer.
29:52But they got day jobs.
29:54Their back's not against the wall.
29:55No, I hear you.
29:56But we've had, over the 13 seasons, we've had people here with three jobs, no experience, never knew how to do video, never knew nothing about social.
30:04But when they need it, and their back was up against the wall, they made it happen.
30:09You haven't done anything in three years.
30:12Because they got other jobs.
30:13Your back is not against the wall.
30:14Wait, wait.
30:15You want to know something?
30:16I don't even care about all this.
30:17You asked for $10,000 for 20%, I'll give it to you.
30:21I have nothing to lose.
30:22Done.
30:23We're done.
30:24Done.
30:25Smart boy, smart.
30:26It's true, it's true.
30:27I mean, seriously, what do I have to lose?
30:29Absolutely.
30:30Thank you so much.
30:31Okay.
30:34Oh my God.
30:35Yeah.
30:36Kaboom.
30:37Pleasure to meet all of you.
30:38Thank you very much.
30:39Congratulations, guys.
30:40Good job.
30:41Check it out.
30:42Lori, why didn't you ask for 50%?
30:44I don't want to be a greedy savage like you.
30:47We came here, Lori was exactly who we wanted.
30:50We thought we had a good valuation to just make it a no-brainer.
30:53We actually sat on the deck of my house with my wife, drawing this on a napkin.
30:58And she first said, you guys are idiots.
31:01I don't even know what that is.
31:02And this guy said, you won't be calling us idiots when we have a deal with Lori Grenier.
31:17Next up is a better version of a must-have for athletes.
31:21Sharks, what is up?
31:33My name is Seneca Hampton.
31:35I'm from Las Vegas, Nevada, baby.
31:37Woo!
31:38Woo!
31:39And today I'm seeking $500,000 in exchange for 10% equity at my company, Hampton Adams.
31:45Okay, Sharks, if you've played sports, then you know there is one product, one piece of equipment that almost every athlete uses without fail.
31:56Some people just won't perform without it.
31:58Allow me to introduce you to one of the greatest creations on planet Earth.
32:02Wow.
32:03Wow.
32:04I present...
32:06Athletic Tape!
32:07Boo!
32:08But not just any Athletic Tape, Sharks.
32:12This is Hampton Adams, baby.
32:14Woo!
32:15Now, watch this.
32:17Ah!
32:18It's 45 pounds here.
32:20Oh, yeah.
32:22Ah!
32:23Wow!
32:24Woo!
32:25Woo!
32:26Boom!
32:27Strong Tape!
32:28Woo!
32:29Wait, there's more.
32:30Oh, there's more.
32:32You know that tape that's so strong that you gotta use the jaws of life or be a bodybuilder
32:37to tear it?
32:38Not here, baby.
32:39We fixed that.
32:40Watch this.
32:41Like that?
32:42Oh!
32:43Wow!
32:44It's like butter, baby.
32:45It's like butter.
32:46By simply listening to athletes, we've developed an entire line of sports medicine products
32:51specifically for the athlete, trainer, and physical therapist.
32:55So, Sharks, who wants to roll with me to tape the world by storm?
33:01Wow.
33:02Well, great, great demo.
33:03Good presentation.
33:06So, in front of you guys, you'll see a sample of our eight-pack of Athletic Tape.
33:09It's one of our best sellers.
33:11So, we sell all sports tapes.
33:13That is all that we sell.
33:15And we actually do pretty well, I think.
33:18I bet with those numbers you tossed out, I bet you're doing great.
33:21Yeah, right.
33:22Oh, the numbers?
33:23Yeah, the numbers.
33:24Sales, about $24,000 in sales.
33:27What?
33:28That's it?
33:29Yesterday.
33:30Yesterday.
33:31Yesterday.
33:32Yesterday.
33:33You got us.
33:34So, Lifetime, we've sold about $12.2 million.
33:36What?
33:37Whoa!
33:38And I say we, I mean me.
33:40I'm a one-man show.
33:41You are?
33:42Is that one year's worth of sales?
33:44One year.
33:45This year, year to date, $5 million.
33:46What?
33:47Come on.
33:48Wow.
33:49What are you using?
33:50So, we sell primarily through Amazon.
33:52So, tell us how you got there.
33:53Because that's your magic sauce, right?
33:54Yeah.
33:55Yeah.
33:56Yeah, like $5 million is unbelievable.
33:59This year, we'll close out $6.2, $6.5, somewhere in there.
34:02What are you going to make on the $6.2?
34:04About 20%.
34:05Ah, so therein lies the rub, right?
34:08Yeah.
34:09Because these should have a lot of margins.
34:10So, ad spend, right?
34:12That's there.
34:13About 20% of our margin is in ads.
34:17So, you said you're going to do $6 to $7 million.
34:19So, when you say 20%, is that your pretext net earnings?
34:22Yeah.
34:23Okay.
34:24So, that's EBITDA.
34:25All of that goes right back into inventory.
34:27And so, therein lays the problem, right?
34:29Right.
34:30It's a beast that you're constantly feeding.
34:31But, Seneca, the big tape people can do the same thing.
34:33Like, what's making yours stand out?
34:35Some of this tape that you use, right, people are allergic.
34:38And they'll have rashes or pull their hair out.
34:40Right.
34:41So, there's a different adhesive that we actually have in our tape.
34:43It's not proprietary, but no one's used it in the way that we're using it.
34:47So, that's the secret sauce.
34:48That's it, yeah.
34:49So, there's no patent on your product at all?
34:50No, there's no patent.
34:51It takes a lot of learning in the advertising and SEO space.
34:55Yeah.
34:56So, what was the process you went through there to get to the top?
34:58Let me answer that.
34:59About seven years ago, I started at a company, a customer service rep.
35:04And they were selling light bulbs.
35:06And it was a similar model.
35:08And I just dedicated myself.
35:10And I spent 80 hours a week just working and getting paid to learn.
35:14And I grinded it out for three years.
35:17I said, I think I figured this out.
35:18I think I know how to do it.
35:19And so, I went to look for a product for myself.
35:22And I grew up playing football.
35:24And so, I used a lot of athletic tape.
35:26I wanted to learn how to become wealthy.
35:28How do I build wealth?
35:29If you knew where I came from, you'd be like, there's no reason you should be standing here
35:32right now.
35:33Where did you come from?
35:34So, I'm from L.A., originally.
35:37And I have four brothers, four sisters.
35:40And there are days where we'd go to Burger King, grab a $1 burger, slice it in four.
35:45And that was dinner.
35:46We grew up like that.
35:48Motels, sleeping out of cars.
35:49And I was just like, this ain't it.
35:52And as I got older, I was like, you know what?
35:54I'm going to dedicate myself to figuring this out.
35:56And so, I learned, you build wealth, start a business.
35:59To start a business, you need to sell your product.
36:02And so, I learned sales.
36:03So, what do you need the $500,000 for?
36:05It's a cash flow business.
36:06And so, my orders, I don't order one time at the beginning of the year.
36:10I'm ordering every month and getting shipments every month to be able to take the cash they're
36:14giving into the next order and the next order.
36:16You're basically breaking even.
36:17Basically.
36:18To scale it and grow it.
36:19On a cash basis.
36:20Yeah.
36:21But as long as your sales are growing, it's like you're feeding the dragon.
36:23Exactly.
36:24Like it keeps growing, you've got to keep feeding it.
36:26And so, I never get out of the spot where it's like, if something goes wrong, this will
36:31all come tumbling.
36:32Seneca, you know, there's a bunch of companies buying smaller companies and rolling them
36:35up.
36:36Has anybody approached you to acquire you?
36:38Yes, I have.
36:39I get, I don't know how many of those emails from those people.
36:42And why haven't you pursued any of that?
36:44Because I'm on the fence of, should I sell it or should I keep it going?
36:48Yes.
36:49If I keep it going, then...
36:50You should sell it.
36:51You should sell it.
36:52Wow.
36:53And I got to tell you, I love business and I love every business I started.
36:57But I learned a long time ago, the best time to sell is when you don't think you need
37:01to sell them, when you don't need the money.
37:03Amen.
37:04You're kind of on the verge of that, honestly.
37:06Yeah.
37:07If you actually get much more successful, your cash problem may actually get much worse.
37:12Yeah.
37:13Yeah.
37:14If you have to stress every month about that next month, it's time to sell.
37:17Yeah.
37:18Right?
37:19But the good news is, whatever you get for it, now you've got the formula.
37:22I got a question.
37:24Robert, would you buy it?
37:27Would I buy the tape?
37:28Would you buy the business?
37:29All sharks are still in.
37:44But despite Seneca's impressive sales numbers for his athletic tape company, Hampton Adams,
37:49his low margins pose a problem.
37:52If you actually get much more successful, your cash problem may actually get much worse.
37:57Yeah.
37:58Yeah.
37:59If you have to stress every month about that next month, it's time to sell.
38:02I got a question.
38:04Robert, would you buy it?
38:07Would I buy the tape?
38:08Would you buy the business?
38:12I love the business.
38:13I'm not going to give you the premium price for it.
38:16You're the right guy.
38:18You're going to do this again.
38:20Look, I'm not going to invest because you should sell this business.
38:24You've done it.
38:25And like Mark said, use your knowledge for the next one.
38:30Congratulations.
38:32I'm out.
38:33Thank you so much.
38:34So when you sell this, will you come work for me?
38:37If you have me, I'll do it.
38:40Look, Seneca, what you've accomplished is great.
38:43You did it the exact right way.
38:45And your problem is you're stuck in that wheel where you just can't get off.
38:50You know, and that means it's not investable, right?
38:53Because there's no extra margin there for you to be able to pay us back.
38:56Yeah.
38:57So for those reasons, I'm out.
38:59Okay.
39:01I didn't know much about athletic tape, but it seems like the only one I'd ever buy now going forward.
39:08It seems fantastic.
39:09But I don't think it's the right investment for me because of the situation.
39:12But I wish you good luck.
39:14And I'm sorry I'm out.
39:16I can distinctly remember being 21, being a diner waitress, going home to my hometown and crying.
39:24Because I didn't know what the formula was for making a change.
39:29You know?
39:30But can I tell you something?
39:32Once I decided I was in control, I could make a change and the key to it was knowledge.
39:37I got really smart, really fast, like a hungry animal.
39:41Yeah.
39:42Yeah.
39:43And I don't think people realize how much desire has to do with success.
39:47Yeah.
39:48And so you're the walking, talking billboard of how to do it right.
39:52I mean, it's breaking my heart.
39:53I'm not investing because we'll just get in the rat mill with you.
39:56You know what I mean?
39:57Yeah.
39:58So I'm out.
39:59Thank you, Barbara.
40:01I think you've achieved something that's quite impressive.
40:04But the problem, the challenge of this deal is half a million.
40:08How do I get it back?
40:09I don't know what your business is worth.
40:11Somewhere between three and five million dollars.
40:13But I'll make you an offer.
40:14It's the only way I could do it.
40:16This is a classic royalty deal because there is no other way to get your money back.
40:2120% margins.
40:22I'll give you the $500,000.
40:24I want a dollar a package until I get a million and a half back.
40:28Wow.
40:29So basically I'm trying to make a million off my 500.
40:32Yeah.
40:33I'll take the 10% because you might sell it before I ever get back my dollars, okay?
40:38Yeah.
40:39I gotta be honest with you.
40:40I don't know how else to do it.
40:41Yeah.
40:42You can't do this deal.
40:43Seneca, you're digging a deeper hole.
40:45Cheers.
40:46Well, that's the guy that said no to you, right?
40:47I'm gonna use Kevin's own quote.
40:49I forbid you to take this deal.
40:51Says the guy is giving you nothing.
40:52You are just punching the problem forward, man.
40:55Seneca, the problem isn't the equity or the amount.
40:58Yeah.
40:59The problem is the royalty.
41:00Because your margins are so low already.
41:02Seneca, it's great to get advice from people who are giving you this.
41:05He's taking 7%.
41:06It's a loan shark deal.
41:07Yeah.
41:08Why don't you counter him and tell him you're giving 10 cents?
41:11I hear noise, but zero.
41:12I just don't want you to make a bad deal.
41:13Yeah.
41:14Don't mistake today's problem by replacing it with a long-term problem.
41:18What he's offering you seems good today, but it's cutting into your margin forever.
41:23Yeah.
41:24No, it isn't forever.
41:25It goes away after a million and a half.
41:27Down to 10 cents.
41:28It goes away when you're out of business because you gave away all your margins.
41:31Then I'm losing money.
41:32If you actually go to business, I lose money.
41:34That's a bad outcome for me.
41:35You know, I love it when sharks give you advice and it's so valuable.
41:39I'm the only shark that believes in you.
41:42The only one.
41:43All roads lead back to Mr. Wonderful.
41:47I appreciate the offer, but I have to pass on the offer.
41:51I appreciate it.
41:52Thank you very much.
41:53But I hope you come back with us with your next great business
41:56because you are a natural-born entrepreneur and a phenomenal symbol of how to do it right.
42:01Thank you guys so much.
42:02Good luck, Seneca.
42:03All right, take care.
42:04Good luck, Seneca.
42:05That is success.
42:06He was amazing.
42:07I'm going to take Robert's advice.
42:10I'm going to sell the company.
42:12I didn't get a deal, but I got something much more valuable.
42:15I got knowledge from millionaires, multi-millionaires and billionaires,
42:19which you can't put a price tag on.
42:21They've been through it for you.
42:23So to me, that's like gold.
42:37That was a trading that買ed so much a total of $2,000 experience.
42:40I'm going to sell الم чит Scene style after this.
42:42That was my title.
42:43I try to sell it.
42:44I know, it's her own talent and the money in the 52nd store.
42:46I think it's also my title as well.
42:48The pyramids is on Amazon equation and the council sure is not worth it.
42:50The польз is so much more valuable I can get it at the medicine chacun than 25th,
42:54both of whom are a connected member from the 제품 Sandbox.
42:55That's it thatrobe is a fascinating reason when I'm interested in うplugged,
42:59You