This special edition Thursday episode of Shark Tank was a “battle of the sexes.” The ladies, Barbara and Lori, team up against Robert, Kevin, and Mark for an appealing product right off the bat. Also featured on the show is an idea for comfortable slippers, unique signage, trousers and leggings that lift the butt and bold-flavored nuts.
Velocity Signs
First into the tank are Scott Adams and Josh Faherty with their business, “Velocity Signs.” They are seeking $225,000 for 15 percent equity. Josh shares an anecdote about how he saw a guy waving a sign in the heat, and decided to create their product. The product is a battery-operated sign waving machine that small businesses use to draw consumers' attention to their brand and products. They have sold 125 units over the last 12 months.
Robert Herjavec thinks the idea is clever, but invested in a billboard company years ago and did not have success. Kevin O’Leary would like to see sales for the next couple of years before investing. Mark Cuban says the problem is when a small business buys one machine, that’s all they will buy. There is no need for more than one. Scott and Josh share that they have an idea in the works for the same concept, but on real estate signs. The Sharks seem to like this idea, but at this point it’s merely an idea, not yet a product.
Lori Greiner is the last Shark treading the waters. She believes it’s a great way to draw attention to brick and mortar stores. She offers $225,000 for 30 percent of their business. Suprisingly, Kevin and Mark like the valuation and they both want a piece of the action. But then the men change their offer.
Now Robert wants to go in with Mark and Kevin, and Barbara Corcoran wants to go in with Lori. We have men versus women! Barbara and Lori lower their equity down to 25 percent. Each Shark starts selling themselves, telling Scott and Josh why they should pick them. Mark says, “the difference between us and the girls, is that I actually own businesses that I can place orders for.” Scott asks the guys if they will come down to 25 percent, but they don’t bite. Scott and Josh end up choosing them anyway, and they have a deal with all three male Sharks.
Lord Nut Levington
Next up is Sanjiv Patel with his peanut company, “Lord Nut Levington.” He is seeking $500,000 for a 30 percent stake in his business. He launched in April 2011 and made $300,000 that year, and has made about the same amount this year. Kevin brings up a good point in saying that no one knows who Lord Nut Levington is.
Barbara gets upset with Kevin because he is belittling Sanjiv. Barbara doesn’t see the passion from Sanjiv, and doesn’t like the fact that he doesn’t cook the peanuts himself. Lori doesn’t eat peanuts, so she’s out. Mark doesn’t see the product flying off the shelves, so he’s out. All Sharks are out, and Sanjiv leaves the tank without a deal.
Happy Feet
Pat Yates is next into the tank with his business, “Happy Feet.” He says, “Happy Feet are not your grandma’s slippers. They are playful and fun and so comfortable – they’re like walking on pillows.” There are a variety of styles and colors. He has everything from leopard-print to lion slippers. He passes out samples to the Sharks and they love the comfort. The Sharks become impressed when they find out the business has done $6.5 million in sales in the last three year. He sold $2.65 million worth of slippers last year.
Kevin says there is nothing proprietary about the product. Lori wants to know how people are finding out about the product. Pat said he did a license deal with reality TV star Nicole "Snooki" Polizzi, who helped get his business out there. Robert commends him for doing a fantastic job in his business, but feels that he doesn’t add value to the company.
Kevin makes him an offer of $375,000 and wants 5 percent equity plus $3 royalty for each pair sold, which would drop to $1.50 after his money is recouped. Lori wants to go in on the deal with Mr. Wonderful, but Kevin says the equity must go to 6 percent because he “doesn’t like decimals.” Pat doesn’t like the royalty structure so he counters with $375,000 for 20 percent. Kevin and Lori say they will do 30 percent. Robert, who was out, comes back in and tells Pat he will invest $375,000 for 25 percent. Pat takes the deal and leaves the tank with an investment from Robert.
Update: CordaRoys
Last season, Byron Young made a deal with Lori for his multi-functional beanbag chair business, "CordaRoys." Since partnering with Lori, in 8 months, they have done $3 million in sales. The product went to QVC, a network for home shopping products, and made $25,000 per minute.
Hold Your Haunches
Last into the tank are Jenny Greer and Erin Bickley with their business, “Hold Your Haunches.” The product is shapewear for women that they believe is the perfect solution to smoothing and tightening their legs and buttocks. They are seeking $75,000 for 20 percent equity in their business. Lori says she has never felt a shaper that is this strong. Kevin says it must be hot to wear because it's so heavy. Kevin thinks the product is “false advertising” to men, since the woman’s figure would seemingly change when they take off the product.
They have sold $280,000 worth of products since November 2010. Lori is confident she can get the product on QVC and it will sell. Barbara and Lori talk over terms of an offer while Jenny and Erin wait outside the tank. The lady Sharks offer $75,000 for 40 percent plus a $100,000 line of credit. Jenny and Erin take the deal and leave the tank with an investment from two Sharks.
Tune in to ABC tomorrow at 9|8c for an all-new Shark Tank.