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Both of us being from Ireland,
there are two things that we're good at.
Seen on celebrities, athletes.
Whoo! This will be a generation-defining game.
I know how to do these things.
And I'm a social media machine.
Narrator: And tonight, Todd Graves, the founder
of fast dining phenomenon Raising Cane's, joins the Tank.
We're all in this. It has to work.
Bring it in!
-Oh, my goodness. -Yeah, baby.
♪♪
Narrator: First in the Tank is a portable version
of a classic game.
♪♪
Hey, Sharks.
I'm Tom Filippini from the Mile High City,
and today I'm raising $150,000 for a 10% stake in my company,
Pepper Pong.
I'm here to tell you that the world's largest racket sport,
uh, Ping-Pong, is --
Uh, the world's largest racket sport,
uh, Ping-Pong, has become pretty crusty.
This old dog was invented in the 1800s and has, uh --
And that was a century before sliced bread.
And it shows.
[ Laughter ]
It's time to spice things up.
Meet Pepper Pong,
our brand-new game that is fun for all ages
and sets up anywhere.
Roll tape. [ Laughs ]
Pepper Pong ditches the need for a dedicated table.
Any reasonably flat surface, including the floor,
becomes a battleground.
Our fence expands to fit any surface and sets up in seconds.
[ Laughs ] No flimsy clamps.
But the real spice is in the peppers.
Three unique balls designed to be adaptable to any surface,
and making pepper Pong easy to learn
but very difficult to master.
Low-bounce jalapeño is great for beginners and small tables.
Medium-bounce habañero is an all-around favorite
for all table sizes and all skill levels.
And then, to really spice things up,
you have the ghost pepper for intense rallies
on larger tables.
Pepper Pong is whisper quiet and furniture friendly,
so even mom will be playing ball in the house.
So, Sharks,
which of you wants to rally this movement
and serve up the spiciest game of our generation?
Greiner: Good job. John: All right.
All right. Who's gonna play?
So which of you wants to come up and play Pepper Pong?
Yeah, are we all gonna play? Let's play doubles.
We'll play doubles. All right. Come on. Come on.
All right, now we're talking, now we're talking. Yeah, there we go.
Oh, ace. I think we won.
Greiner: I do, too.
Okay, so how many have you sold?
We've sold about $260,000 worth of product.
We launched less than a year ago.
Cuban: Are you selling them mostly on Amazon or where?
We're only selling on our web site.
We're really trying to control the consumer experience,
and 100% of our reviews have been five-star reviews.
-Wow. -Wow.
How many reviews do you have? Four reviews?
We have about 160 reviews.
The cool thing about it is, you know,
Ping-Pong has some real flaws to it, right?
You need the big table. You need the gear.
I don't know if you've ever shown
up somewhere where the paddles are broken
or the balls are cracked like that, or --
Yeah. The paddles have splinters in them.
Exactly.
The other big problem with Ping-Pong
is it doesn't level the playing field.
So, if one person is good, the other person is not good,
it's a blowout, and nobody likes blowouts.
What do they cost to make? What do you sell them for?
So landed cost is about $20. Yeah.
We're selling them for $70.
Why so little? Why so little?
Wow. I thought "so much," actually.
I think we have some
elasticity up to 89 and, you know,
without much detriment to sales or conversion rates.
You got room on price.
So, Tom, you got to tell me, what's your background
and how did you come up with Pepper Pong?
It's actually a very, uh, interesting and personal story.
Um, so I've had a long career of success in business.
In my mid 20s, I started a travel -- large travel company.
It was a well-known brand.
Unfortunately, I was afflicted with, uh, alcohol--
alcoholism for a number of years, and after my successes,
I found quite a bit of failure.
I was able to become sober in 2016.
Good for you. With the amazing support of my wife
and my three beautiful daughters who I almost,
frankly, almost lost. Lost everything else.
Financially, it was devastating for me.
But I bounced back.
I've had no relapses since.
I feel like I was shot out of a cannon.
This is truly my passion project.
So are you the only investor? Is that you?
Yes. It's only -- It's only me.
How much money you have into it? How much did you put into it?
About $500,000.
-Wow! -Whoa!
Yeah. It's really my entire life story in a product.
Well, did you make your own molds?
Yeah. Yeah, because what was this 500,000?
Because -- Yeah. Lori, to your point --
So that was a big cost for you
because it's probably a multi-cavity mold.
Yeah. Yeah, it's a multi-cavity mold. They're expensive.
You know, we've got a good amount of inventory.
So -- How much?
So a little under 10,000 units remaining right now.
Do you know what your customer acquisition cost is?
It's about $21, $22.
Basically, you're giving up a majority of your margin
to acquire that customer, but they only buy one game.
They don't buy multiple games.
Well, we're actually seeing a tremendous amount
of repeat purchases. Why? Why they --
Because gifting.
This is a massively popular gift.
Tom, take us through your sales
and your profitability since you started.
Yeah, so we really started selling in earnest last fall.
Okay. Last fall. Yeah.
And we did $160,000 of net sales.
Got it, and you're on track this year to do how many sales?
Between $600,000 and $800,000.
But this will be a generation-defining game.
And it's patented. So utility patent.
Greiner: What's patented about it?
So, the fence is the patent. The foldable fence.
Yep.
What do you need the money for?
We need a second mold,
I believe, at some point, to double output production.
But that's not --
You know, that's one of the biggest lessons
that entrepreneurs have to learn
and mistake they make often.
So you really should go slowly.
Yeah. Don't start another mold
which is close to $100,000.
Go step by step -- crawl, walk, run.
And that's -- Yeah.
So, anyway, I think it's very fun,
but I don't think it's the right journey for me,
so I'm sorry. I'm out.
Thanks, Lori. Thank you.
Um, it sounds like it's getting some traction,
but it boils down to,
well, how much of a royalty do I want to put on it?
How do I ever get back my cash?
I want to make 5X on that.
It's not grabbing me by the Ping-Pong balls.
[ Laughter ]
Listen, I've enjoyed the presentation.
I think it actually has proven itself.
And now it's about how the gasoline gets poured on it.
But for me, I'm out.
Tom, look, what you've done is great.
Your personal journey,
I mean, just to go from where you are with your family,
to take the step and just have the confidence
to keep on pushing forward is amazing.
You deserve a ton of credit.
But this is who you are. This is your identity.
And those types of businesses
are really difficult to invest in.
I think you'll be great on your own,
but for those reasons, I'm out.
Tom, m-my question is just how you feel about retail.
That's where I'd kind of be interested.
And I think I'm really interested in your story.
I mean, to come out here and be vulnerable
and talk about sobriety.
I haven't had a drink in two years.
Congratulations. I didn't have -- Thank you.
I kept saying, "Oh, dry January."
Couldn't make it past dry January.
And I looked at my life and said, "I got over a cancer.
I got out of the clutches of drug dealers in the hood,
but I can't get away from just doing this."
You know, you went through that dark stage.
Yeah. All right. So welcome back.
Hope you're feeling the same way.
I'm feeling absolutely amazing.
Love it. Um, I'll give you the 150K.
Uh, but my idea is to help you with the retail side.
But I want 30%.
-Whoo. -Whoo.
But I think the Toddster's still in the deal. Makes it kind of spicy.
Yeah, I'm still in the deal.
Todd, I've read about your background.
Maybe come in and save the day. Well, maybe.
I could see these at every Raising Cane's.
just as a -- as a customer entertainment vehicle.
I love Ping-Pong.
Like, actually, I did a collaboration restaurant
with my friend, Post Malone.
I'm also invested in a pickleball team.
That's been a great investment and continues to do better.
And, so, I love the portability.
Um, I love you.
So I'm gonna make you an offer, right?
♪♪
Narrator: Three Sharks are out.
Tom has an offer on the table from Daymond
for his portable Ping-Pong game, Pepper Pong.
But Todd is also interested.
So I'll give you the $150,000,
and I'll go 25%.
John: Todd, you animal.
Why would you undercut me like that?
You're a guest.
I'd love to hear, you know, sort of your respective visions.
Like, how could you help me?
I mean, that's obviously a big haircut on the equity for me.
Yeah. No doubt.
I can tell you what I can add, right? Yeah.
I told you about the collaboration with Post Malone
at our restaurant. Our sales went through the roof.
I know how to do these things.
I'm a social media machine. Yeah.
I got a whole team behind me that helps me with these things.
And I live it every day.
And so I'll get your product out there.
I'll help you expand it for low acquisition cost.
I think that's what I bring to the table.
I believe you. Daymond,
what's your sort of vision for how this would play in retail?
Well, how do you think it would play in retail?
Well, when you sell retail,
you know, you have a difficult time, you know,
bringing your customer into the family, so to speak.
Yes. And I want to bring my customer into the family,
at least in the beginning, to nurture that relationship,
make them feel part of a movement.
So I want to go to retail,
but not right out of the gate.
Well, then I want to be respectful of your dream.
Tom, Tom, I'm in buddy. You and me.
Yeah. Listen, listen. You know --
Love it. All right. That helps. That helps.
You're concerned about retail,
which I can understand that. You're building it up slowly.
I think, out of respect for you and your dream,
I think that I'm going to take my offer off the table.
I'm out. Okay. No, I get it.
Um, Todd, I would love to do a deal with you.
I'm curious if you'd split the difference
with me down to 17.5%. 17.5...
In the spirit of a long-term partnership.
Let's go 20 and you got yourself a deal.
Could you go to just 19, just psychologically?
Why not?
All right, let's do it.
Let's go, Tom.
Man. I guess we're going to do it, buddy.
I'm so stoked. You're gonna build it. It's gonna be great.
Thanks so much. Congrats.
Well done. Thanks, guys. I appreciate all of you.
Thank you.
I believe Pepper Pong is going to make a big difference
in the world, not just for fun,
but as a way to inspire people to go do great things
and to be vulnerable and to connect with other people
and put your phone down
and just build relationships through the joy of competition.
Narrator: In season 15,
we watched Nicholas George and Kevin Mac
make a deal with Mark Cuban
for their innovative guitar pick company, Tik Pik.
Mac: Put them on your guitar, and they'll stay
till you want to pick them up and you're ready to play.
Let's see what they're up to now.
George: Since appearing on "Shark Tank,"
we closed a major deal with Guitar Center.
Tik Piks are now available in every single
Guitar Center store, over 300 nationwide.
One of the most exciting things
to happen since "Shark Tank" is we just closed a deal
to partner with Fender Guitars,
and we're going to be having
Fender Tik Piks coming in 2025.
When we first started the business,
our product was 100% manufactured in China.
After appearing on "Shark Tank," it proved to be a problem.
We sold out three times. It was really difficult
to get our orders shipped from overseas to our customers.
Moving our manufacturing here to the US
has added about 20% to the cost of our product,
but we have greater turnaround times
and a far superior product.
But most importantly, it supports
American jobs and manufacturing.
So when we came in to "Tank,"
we were just selling Tik Piks here in Nashville, Tennessee,
with $60,000 in sales.
It's been less than a year since we made a deal with Mark,
and we've got a total of over 700,000 in lifetime sales.
Mark has been an amazing partner with Tik Pik.
He's been a vocal supporter of AI for a while now,
and he introduced us to Gemini for Google Workspace.
Even small companies can benefit from Gemini.
George: Oh, absolutely.
Cuban: Everybody knows I'm kind of a geek,
and one of my favorite products is Gemini for Google Workspace.
You know, I've put it into all my companies
to become more efficient, more productive.
I've made a prompt and it says I need to summarize
what our business has been working on the last 30 days
for our partner, Mark Cuban.
Can you read my e-mail
and build a summarized list of the successes --
That's insane. Is it? That's insane.
Mark, Mark. That's insane!
So, now, what used to take me three hours
takes me 30 seconds.
George: Everything is in the Google Workspace ecosystem,
so it's really seamless to go from one product to the other.
So whether you're going from Docs to Gmail
or whether you're going from a slide to Docs,
it's just as easy as a click. With Gemini,
you get all sorts of suggestions based on your prompts.
But as business owners, we're in total control of which ones
we want to use and implement.
It's freed up so much time so we can do the things
that we're passionate about.
And for me, that's songwriting.
We're at Analog at the Hutton,
one of the best things in Nashville,
and I just got done writing a country song
with an unlikely partner.
Here's our song together.
Together: "One Girl, One Night, One Bar."
Take it away, K-Man.
♪♪
♪ You're one Friday night ♪
♪ Two bar stools ♪
I didn't expect that Marc would want to write a country song,
but when he said he had the title for it, I was all in.
♪ But that one girl and that one night ♪
♪ In that one bar where they had a couple drinks ♪
♪ After that one shot ♪
My advice to every entrepreneur out there --
make sure you have the right partners.
You guys push it as far as you can.
Be honest, be kind, and just work hard,
and I promise you your business will be successful.
♪♪
Ladies and gentlemen, Mark Cuban.
♪♪
Narrator: Next into the Tank is a way
to bring a party right to your own backyard.
♪♪
Hi, Sharks. I'm Enda.
and I'm Paul. Today, Sharks,
we are seeking 400,000 for 10% equity in our company.
Both of us being from Ireland,
there are two things that we're good at.
The first one being construction.
And, of course, drinking.
Cheers. Cheers.
Sharks. Isn't it true there's nothing quite like
meeting up with your friends at your favorite bar
and sipping on your favorite drink after a hard day's work?
When you just want to kick back and relax.
Or simply toast those cherished friendships
and celebrate life.
But what if you don't feel like going anywhere
and you simply want the party to come to you?
Well, that's where our Irish ingenuity comes into play.
Introducing Taverns-To-Go.
Your very own backyard bar.
[ Chuckles ]
Delivered and assembled for you in under 90 minutes
in the comfort of your own backyard.
Yes, that's right. We do it all for you.
Crafted from pressure-treated lumber,
our taverns can be used in any climate,
making them perfect for anywhere in continental USA.
And who knows, Sharks.
With your help, we might just go global. Global.
With over 25 different models to choose from,
there's a tavern perfect for every backyard.
Simply add your personal touch,
stock it up, and let the good times roll.
So, Sharks, we'd like you to raise a glass.
[ Laughs ]
And embark on this Taverns-To-Go adventure with us.
Sláinte. Sláinte.
Graves: Sláinte. Greiner: Salud.
Cuban: Salud. Salud.
This is really cute. What does it cost for one?
So this model here retails for 3,795.
And depending where you live,
it might be free delivery up to $590.
O'Leary: And what does it cost you,
including all of your assembly costs and shipping costs?
Typically about 2,200, including overhead.
Greiner: What are your sales like?
So right now, year to date, we're at 2.2 million.
Wow. Wow. And when did you start?
2020, when COVID hit. Okay.
And we're just about to hit the $10 million mark.
Graves: Paul and Enda, you're obviously not from around here.
Tell me where you're from in Ireland.
And how did y'all start this business?
So I'm from the west coast of Ireland,
a place called County Mayo, very rural.
I didn't really come from much in Ireland.
And you come to America,
and I just kind of fell in love with the place.
Same with you?
I'm from Dublin. I came in 2012.
I got an opportunity to come out here.
I thought I'd come for six months.
Boom. And 12 years later, I'm still here.
And we actually met over here
amongst the Irish community in New York.
And what's your background?
So I'm a mechanical engineer.
Mine is construction management.
How much money did you guys put into this to start it?
We -- A couple hundred dollars to build the first bar.
Good for you, man. That's awesome.
It's just true grit.
Your hands, your brains, your backs into it.
Sold our first one and it just kind of -- Sweat equity.
We have put our heart and soul into it.
Yeah, we have. For the last four.
-And it's obvious. -And how are you --
Is it just the two of you? Correct. Yeah. Just the two of us.
How are you outsourcing the build of them?
It's all our own in-house crews.
So what happens, say we have, just for instance,
we've got orders in California, Illinois.
We'll send a truck with maybe 20 bars,
and the guys will go and deliver along that route. We'll do --
You got to be kidding. They'll cruise the country...
Yeah. ...with a bar in the back?
20 bars maybe. 20 bars in the back.
How do you predict my wait time, then? What is my wait time?
Because -- Depending on where you're located,
like, we communicate that with customers.
We'll say, for California, it's like 4 to 6 weeks. For local --
Oh, okay. That makes sense.
So what does it cost you
to acquire the next incremental customer?
You're talking somewhere about $200, $250.
The model seems to be working.
What do you think you'll do in sales this year?
We're on track to do 4 million.
What do you make in free cash after that?
Our profit margin is about 30% to 40%.
Well, listen guys, I love it.
The only way I'd do this deal is say, okay, here's 400,000.
I want to be the third Irish dude, and I am an Irish dude.
I'm actually an Irish citizen. I'm from Malahide.
Honestly? Yeah, yeah, yeah.
Yeah. So, first thing 400,000 for 30...
33 1/3. I'm a third Irish dude.
My only role in this thing -- blow out the social.
Okay. I got millions of followers.
-No. -They know I'm an Irish guy.
And I'm very, very good at reducing cack.
Really good.
Listen, I love you both.
And I love your concept. I'm going to order one.
Thanks. Uh, but look, there's other Sharks
that I think can help you more than I could.
Okay. So for that reason, I'm out.
Thank you very much. Cuban: Hey, guys, I'm in the same boat.
I don't know that I'm best suited to help.
I'm a drinker, but not a construction guy.
So, for those reasons, I'm out.
Okay. No worries. Thanks, mate.
So, guys, it's never been my thing to deal with, uh,
construction and that type of stuff.
Yeah. So I'm definitely going to be a customer.
Um, but I'm out.
Thank you. Thank you.
Greiner: I think it's really cool.
And, you know, I'm on the fence.
I could totally see people loving this.
I just, you know, I'm sitting here thinking like,
how would I get my money back, like,
fast enough.
Taking something out of his book,
like, I was thinking I would want a royalty deal.
Okay. Okay.
I would give you the $400,000, but I would like...
...$30 on each one sold until I made 600,000.
So my 400,000 back and 600,000.
Okay. And I would only take...
♪♪
15%. 15.
Okay. Okay. Yeah. Cuban: Hello!
Given what you sell these for, 30 is nothing.
-Yeah. -Yeah.
John: 30 is l-- I can't believe you'd say 30.
Should I make it 60? It's not my business.
[ Laughs ] What do you think, guys?
[ Conversing indistinctly ]
Lori, w-we like your offer with the royalties.
Would you be open to going to 12.5 equity
after you hit the -- the mark?
I feel really good with what I did
because I think 30 was a really sweet, nice royalty.
I could have asked for a hundred,
and they all said I should have.
Gonna go? I didn't say that.
I thought royalty was greedy.
[ Chuckles ] What do you guys want to do?
♪♪
We're going to take your offer, Lori.
Whoo! Yay! Thank you so much.
Thank you. Thank you, guys.
Graves: Well done, guys. Congratulations. Thank you very much.
I like it. I think it's so fun.
And, oh, it's going to be so fun to listen
to you guys talk all day.
Thank you so much. Thank you. Thank you so much.
I have a toast to you guys, man.
You guys came for the American dream from Ireland,
starting with a couple hundred dollars.
Yeah. Building an amazing business,
coming on "Shark Tank,"
and getting a deal with Lori Greiner.
Thank you so much. Cheers, guys. Sláinte. Toast.
-Sláinte. -Cheers.
-Congrats. -To the American dream.
Thank you so much. Grenier: We're going to crush it.
Thank you. Looking forward to it.
Well done, well done. Okay, so...
Narrator: Next up is a fun way to create family memories.
♪♪
Hi, Sharks. I'm Ashley.
And I'm Kenny, and we're from Fort Wayne, Indiana.
We're two originals.
Who met at Indiana University.
[ Grunts ] Yes.
Got married and had the remix.
Then we had the encore.
[ All chuckling ]
And finally, we dropped the mic.
Graves: Mic drop. Yes.
And together, we all make...
Kaans Designs. Kaans Designs.
Kaans Designs is a parenthood lifestyle brand on a mission
to encourage and inspire families to get in the picture.
Our popular tees have been seen on celebrities,
athletes, and even "Oprah's Favorite Things."
Twice.
Our family works hard to make your memories
a little more special.
Creating matching apparel and accessories,
we capture the essence of shared moments.
So, Sharks, grab a tee and your crew.
We'd love to welcome you to the family.
Welcome you to the family.
Greiner: It's a very cute concept.
What was your ask? Thank you so much.
What are you asking for? I'm so sorry.
We are seeking $75,000 for a 15% stake in our company.
So the quality is really nice. It is.
I'm holding the sweatshirt and it's very soft on the inside.
Yes, quality is a huge thing for us. Very nice.
Cuban: So tell me how it works.
You don't keep inventory for all these different versions,
do you?
We actually hold blank inventory
and we screen print them. I get you.
Okay, you screen print it as -- Got it. Correct.
The whole thing comes down to how do you acquire customers?
Because there's others doing this.
And the key to success is low customer acquisition costs
and return business so that your return on ad spend goes up.
And that's really the model
because there's nothing proprietary
about what you're doing. Absolutely.
Currently, our cost of acquisition is around $9.37.
But we do have a 30% customer return rate.
Okay. So if you if you spend $1,000 on advertising
on any of the digital platforms, do you make a return on that?
We do. Last time it was like a 5X for Father's Day.
5X, yeah. 5.
5X. What's your margin on these products?
The adult shirts, we make them for $5.12,
and then, the kids shirts we make for $4.24.
Yeah. We sell the adult shirts for 26,
and we sell the kids shirts for 21.
Okay. That's good margin. Greiner: Those are reasonable prices.
Yeah. So you're actually profiting on a 5X ROAS.
So it's a pretty decent return.
Is it consistently 5X on ROAS?
Not always a 5X.
During our highest seasons,
which is usually around Father's Day
and during the holidays,
On average, we're averaging about a 3X.
Tell us about yourself and how this business came to be.
Before getting into this business,
in 2014, I was a high school English teacher,
and my husband, Kenny -- I was in social work.
Okay. Right?
And so we started this business
while I was out on maternity leave.
I lost my mom when I was 21 years old.
She was 40.
She died in '07 on Mother's Day. Ohh.
Greiner: Aww. It was sudden.
Is that your mom there? Yeah, that's my mom.
And it's actually the only picture we have together.
And so I wanted to create matching apparel
that forced you to get in the picture.
Our tagline is "Get in the picture."
That's where it stemmed from.
I wanted to... Ah. I love that.
...create a brand
that forced you to document those memories.
And this was your inspiration to get her in the picture.
Yes. It became my mission to make sure
that you're going to take a picture in my shirt.
Absolutely. You're going to take a picture surrounded by your family.
100%. What I love is I love how cute the concept is.
Thank you. So how cute are the sales?
Our sales, our lifetime sales are 3.2 million.
Nice! Whoo!
Drop the mic. Drop the mic.
Cuban: Over what period of time?
So that 3.2 million is from 2016 on.
What about this year?
What will you do this year in total sales?
This year, I believe that we'll hit around 280,000 to 300,000.
We are up from last year. Mm-hmm.
Okay. Your margins are close to 80%.
Yes. So to get that 300,000 sales,
how many dollars will you have to spend, do you think?
Right now we're only spending about 5% in revenue on ads.
And that's just because just cash flow.
That's why we need a Shark.
Are you breaking even on this 300K in sales?
No, we were profitable last year.
We were profitable at 44,000. Why do you need a shark?
Our issue and why we're here today
is that we can't produce fast enough
for what our customers are asking us for. And you're made to order.
So I think, actually, that's a good thing to hear
to the extent that you don't have a warehouse sitting full
of a whole bunch of different ad sizes.
No, we're actually in our garage.
Right. We're making this out of our home garage.
The issue is expanding our product category.
Once they go through the sets,
they don't have anything else to buy.
So how much of your own money
did you put in to start the business?
Actually, I borrowed $200 from my dad.
Yeah. I haven't paid him back yet,
but I'm going to. I'm working on it.
If I can --
Well, how are we going to get back 75,000
if you ain't paid dad 200? You will get your money back.
You know, we'll talk to my dad.
Guys, I look at it as a business
that you can probably even get to 2 million.
And so that would supply you with a pretty good cash flow
each year of $400,000, $500,000 pre-tax.
That's the goal of this business.
I don't think there's room for an investor,
I really don't. You can't go to retail.
The margins aren't big enough.
Guys, I, uh -- It's not for me. It's not for me. I'm out.
But I think that --
Let me tell you, I love the design.
I love the story. Quality is great.
You guys are great.
I wish I knew more about the fashion industry.
I think there are better Sharks sitting here.
So I sadly say I have to be out,
but I hope that someone else is in.
Thank you so much, Lori. Thank you, Lori. We love you though.
Yes. O'Leary: Daymond, what are you going to do?
Daymond, we would love you as a Shark. Daymond, we'd love you, man.
Greiner: Come on. Daymond.
♪♪
I think you can grow this business yourself.
You can grow this business to literally be
a $5, $10 million print- on-demand business.
You don't need our help.
So I'm going to pass on this
because I think you're going to make it without me.
And for that reason, I'm out.
Graves: Look, I love both of your stories.
It's just too good, and so, here's what I can do for you.
I'd like to offer you the $75,000,
but I'd like to do it as a loan,
and I'd only take 10% equity off of that.
Greiner: You can't beat that, man.
What do you think?
Very standard structure called venture debt.
That's what that is.
Graves: Here's my thing.
This is not really in my wheelhouse.
I love the product.
I can see -- I'm very good at branding.
You know, obviously I've grown a restaurant from one location
to 800, and I got millions and millions of customers
that are fanatical about our product.
I can help you with some of the branding components.
I'd love it if, Daymond, you wanted to come on
and partner with this and just help out on that --
that mentorship in the actual apparel business.
John: I'm there -- I'm there for you anytime.
Absolutely. I got no problem with that.
You gonna partner?
I'm going to mentor you, but I'm not going to invest.
Greiner: He'll give you advice.
We'll have a great resource with Daymond
to be able to get some great advice
and the mentorship you want. Kenneth: Okay.
But you do have an offer. It's a real cash offer.
What do you want to do?
Cuban: Wait, wait, wait, wait. I'll defer to these guys
because I think that's a better offer than I would make.
And honestly, those two together,
I think, is a great combo.
I'm out.
You're leaving us? Aw, Mark.
So, Todd, would you be willing to go up in equity
to not do a loan?
Here's what I encourage you to do.
When you have a successful business and you're growing...
Yes. ...don't give up so much equity.
Look, so Raising Cane's
is now a multi-billion dollar organization.
I was able to maintain the majority of my company,
overwhelmingly, I own over 90%
of my multi-billion dollar valuation of the company.
And, so, I don't want to take that, right?
Okay. You're working hard. You're making this happen.
This is your story. So that's why the loan comes.
And I would -- I would bet on yourself.
Sure. You have these orders coming up. So at less equity,
longer term is more value for you and your family.
Okay. What do you want to do?
Oh, my gosh.
♪♪
Go ahead. Do it. I'm gonna say yes.
Yes! Yes! All right.
Oh, my God.
Daymond, you gotta come out here with me.
Well, I guess, you know what? I'm on the advisory board.
-You're on the advisory? -Yes. Thank you.
-It's so nice to meet you. -Thank you so much.
-Thank you so much.
-Congratulations. -Have a great day, guys.
-Congrats, guys. -Oh, my gosh.
[ Laughs ] Oh!
We did it. Yay.
I'm so excited to work with Todd.
Yeah. I'm so excited to be mentored by Daymond.
This is a dream come true.
This is just a testament to just keep going. Keep going.
And that you can do things outside of your home.
Yes. You can do them in your garage,
you can reach the world, and you can even end up here
on "Shark Tank."
Like, this is a God thing, and we're so thankful.
♪♪
Narrator: Next up is an innovative way
to keep things light and cool.
♪♪
Welcome to the Tank.
Hi, Sharks, I'm David Kittle from Charlotte, North Carolina.
Hi, Sharks, I'm Chad Lee from Bentonville, Arkansas.
We're here today seeking $150,000 for 10% equity
in our company, FOAM.
Sharks, the cooler industry has a major problem.
The cooler! The cooler!
That's right, Sharks.
So many of the coolers that are out there today
are really more geared for the hardcore top of the mountain,
crazy outdoor experience.
What about most of us that don't need to keep ice for 10 days?
Or a heavy, expensive
bear-proof cooler with all the bells and whistles?
We just wanted a simple, functional way
to keep our drinks cold.
Can use it at the beach, park, pool, or on the boat.
Sharks, we saw a huge hole in the market,
so we created FOAM.
We're the world's first 100% EVA foam cooler.
You might know this material from those popular clog shoes.
This material makes our cooler
extremely lightweight, sustainable,
and did I mention it'll even float on water?
It's perfect for swimming with sharks.
It's incredibly durable.
But don't take my word for it.
Bring it in! Bring it in!
Oh, here we go.
-[ Laughs ] -Oh, my goodness.
John: Yeah, baby.
-Oh, yeah. -Oh!
Cuban: Can I drive that thing?
[ Laughter ]
Graves: Well done. Hey! Yeah!
[ Beeping ]
Oop, oop.
[ Crash ] Oh!
[ Laughter ]
Well, I guess the stage isn't as durable as our cooler.
[ Laughs ] Greiner: Wow, that was pretty amazing.
O'Leary: Okay, let's see the results.
Sharks, no one's getting crushed like a cockroach today.
Really? Look at that.
Here's the problem. I'm going to give 150,000,
but 10 of it's going to go to the set to get it repaired.
[ Laughter ]
Sharks, please take a look at it
and run it over in your spare time.
[ Laughter ]
That was really impressive.
So is this a good insulator, though?
I mean, it's very thin, right? It's very light.
Yeah. It's a good cooler. Cuban: But how do you convey the durability
to somebody when you're trying to sell it?
And I guess the bigger question is, where do you sell them?
Greiner: Videos. So, so far, year to date, we've done 114,000.
But on the way here, we got a commitment for another $137,000.
So that brings us to a total of 251,000 for this year,
year to date.
All direct to consumer?
No, actually,
one of our weaknesses is direct to consumer.
And we want to put that out there.
We've come from the big cooler companies.
That's our background. And we'll get into that.
What cooler company did you come from?
Yeah, Me and Chad actually met each other
while working at Coleman, so...
-Okay. -Oh, gotcha.
I'm a designer, and I've actually designed product
for several "Shark Tank" brands.
I've designed products -- You have? Like what?
Like Tushbaby. Uh, Guardian Bikes.
There you go. Yeah.
So, you know, I've seen all my clients go out
and make millions of dollars, and I'm like, man,
I should do that myself.
My background is in the sales
and product development side of the business.
I've worked for Walmart my whole career,
as well as pretty much every other major retailer,
Costco, Target, et cetera.
O'Leary: So, guys, there's a lot of coolers.
There's a lot. As you know.
A lot of them. So what's going to differentiate
FOAM from the other 9,000 coolers
that are out there from $29 to $399?
In the cooler market, everyone's doing the same thing.
Everyone's trying to go ultra-durable, hardcore,
you know, hold ice for 10 days, be bear-proof.
You don't need that.
And we said, okay, that's cool.
And that's fun. For certain situations.
But what do the masses want?
Like, what area is being --
They want less weight. Exactly.
This is a perfect beach cooler.
You're gonna find, Mr. Wonderful, when you take
this to the beach and it gets all sandy,
one of the benefits is how easy this is to clean.
There's no nooks, there's no crannies.
There's no fabric. No nooks and crannies?
I'm gonna throw ice in the bottom.
I'm going to put my caviar and champagne in there.
-Your caviar. -And it's gonna keep it cool?
It'll hold four bottles of wine, 30 cans.
How much does it cost you to make?
We retail them for 99.
We wholesale for approximately 50, depending on the channel.
And then, we land it for 25.
Let's talk about retail for a second,
because a lot of coolers are actually purchased
in retail spur of the moment.
I know the distributor Coleman uses, okay.
I know how they do their pallet programs
because I compete with them for pallets in pizza ovens,
same distributor. Right.
Because you guys know the industry
and you know the distributors.
Have you talked to any of the big guys?
Yeah. So we launch in Target in about a week.
How are you getting distribution in there?
We sell direct.
You're not getting every store then, right? No.
We're doing about 97 stores to start.
That's nothing. Well, it's nothing to start,
but one of the things I've learned from watching this show
over the last 14 years is never walk into, say, a Walmart --
You want to prove yourself through, but once,
if you prove yourself through and you want to get
2,000 stores, what are you gonna do?
That's actually really smart. You could get killed. I want to be very intentional.
With the size of this, if you had gone into a lot of stores,
if you'd gone into 1,000 Walmart stores,
and they could return to you after the summer season --
Cuban: Oh, yeah, then it's over. This is done. We'd never do that.
Your business would be destroyed.
We're moving slow because we don't want that to happen. Exactly.
But I think I'm having a challenge here
because, when you said that price, you know,
if I walked into the store, I would think that this is
either the normal Styrofoam cooler.
Greiner: Yeah. It doesn't present itself as a high-end cooler.
And then when I would see the price on it,
I think I wouldn't understand it.
So there's nothing in the market like this today.
This is the world's first. But I understand.
But it's very hard, from the way it looks right now --
I like this cooler. I do like.
Yeah. Me. too. Yeah.
Guys, how much do you have invested of your own money?
We both have $150,000 into it together.
I HELOC'd my house. Chad left his W-2.
So we're all in this. It has to work.
It better work. My wife said it better work.
That's all in. That's the power of broke
that Daymond talks about all the time.
So what happens if it doesn't sell through?
So we don't have a take back for Target.
So what they're taking -- That's not the point.
You know, because if they just don't reorder,
then the whole premise of the company is...
It fails. Yeah. Yeah. So --
Do they feel 99 is a good price?
Yes. Yes. Yeah.
Let me let me tell you just real briefly the Target story.
We cold called them. We got a Zoom meeting.
They just loved it.
And the merchant said to us, "There's just nothing new."
And, so, they bought it sight unseen.
They said, "You know what? How many stores can you do?"
So you didn't even send a sample?
They just said, "We're gonna" -- We got an endcap.
And that's pretty cool. Yeah, they asked...
That's very hard to get. "How many stores can you do?" And that never happens.
Yeah. We're like -- And we said we want to be intentional.
So we want to do about one container.
That's about 97 stores.
So we dictated that number.
I think that the reason
why Target did it sight unseen is
because they see tons of product and you have a category buyer.
Yeah. Like, if you're a buyer, you know what this is.
We can speculate why they did it, but it doesn't matter
if it doesn't sell through. Let me just finish. Let me finish. It does matter.
Lori, what does it matter? Just shut up.
Well, I mean, why does it matter? Who cares?
So what you did is you did disrupt a category.
So with no sales, they disrupted the category?
But what I want to say is you controlled the buyer instead of
the buyer controlling you.
99.9% of anybody selling to a store
is so excited to get into the store
that they do whatever the buyer says.
You're doing everything right. I will be a customer.
It's just not the right investment for me.
Yeah. You are definitely great entrepreneurs.
Thank you. But I'm sorry on this one.
I'm out.
Cuban: I think the product's good.
You guys are great. You're driven, you're focused.
You've planned this whole thing out.
The problem is, I don't see the risk/reward for me.
You guys have to really hit it big, you know?
And there's just so much -- I think there's potential for that.
No, I know there's potential for it, right? Oh, yeah.
But like I said, I don't see the risk/reward for it for me.
So, for those reasons, I'm out.
Thank you, Mark. We appreciate that. Appreciate it.
Graves: Gentlemen. Yes, sir.
You have great knowledge in the business.
You're very sharp. I love your product.
I'm going to be a customer. Thank you.
Yeah. But ice chests aren't in my business wheelhouse.
And I think you can do better with other Sharks.
So, for that reason, I'm out. Hey, you got to keep chicken cold somehow.
I like my chicken hot.
Don't go out just yet. We're still going.
I'm sorry, but I'm out. Best of luck to you.
I appreciate your time. Appreciate you. Thanks.
Guys. I mean, look, it's a total crapshoot.
If it sells through Target, things are going to happen.
If it doesn't, it's bad news. Yeah. Correct.
So I'm going to make an offer commensurate with the risk.
♪♪
Narrator: Three Sharks are out.
But Kevin seems interested in Chad
and David's lightweight cooler company, FOAM.
I'm going to make an offer commensurate with the risk.
But for me, I'm going to take it to my distributor
that does my pizza ovens and puts them everywhere.
They know the space.
They know every single big box guy,
including the pallet programs and everything else.
But we got to have the sell-through data.
So the risk is, if those first units sell through...
Yeah. ...then it's Katy, bar the doors.
Yep. If they don't,
I'm the only guy on the beach with this.
That's it.
It's -- It's -- You know, it's a problem.
I'll give you 150,000. I want 33 1/3.
I want to be a third partner.
I appreciate that offer. Yeah, we appreciate that.
Okay, guys, I think your play is to use other people's brands,
because I don't think that this is self-explanatory.
So I think this is going out
and getting the license to various brands.
I can take a flyer on it,
but it's going to be the same as Kevin.
No, actually, better than Kevin.
$150,000 for 30%.
Thank you for that. Thank you, I appreciate that.
You actually have two great offers.
We -- We are absolutely considering both your offers.
What you gonna do?
Go 20?
15? Yeah.
Eh, 17. All right.
So I think for either Mr. Wonderful or Daymond,
just because we are putting all in on the Target order,
we know that's going to sell through,
and it's going to be, you know, it's just like you said --
I wish knew that, too. We're going to have to Katy, bar the doors after that.
We would be looking at 17% for 150,000.
Yeah. We're going to be going in REI next year.
You got a whole lot of "will be going somewhere."
That's great, but today I got to go in for what it is today. Understand.
I'm going to stick on my number, guys.
Okay. O'Leary: I'm going to stick with mine
because I actually have to go to the meeting
with the master distributor and convince them to do this,
hopefully off the numbers
that we get in the first two weeks in Target.
That's how we did Bertello's pizza oven.
The minute we had sell-through, we went to see the big guys,
and that's how we sold the big deals,
because we had to get the financing,
the factoring, the pallet programs, all that stuff.
And this is seasonal.
John: The question is, do you think
that my route of us inbounding licenses is the route?
I wouldn't want it to be the exclusive route. Right.
But I do think bringing licenses in is absolutely something
we can do, especially since we can easily design various looks.
Daymond, would you do 25%, 150,000, be done with this,
shake hands? No, I'm where I'm at, guys
because I know the pain that I'm going to endure.
Greiner: Oh, come on. It would be 35 normally.
I don't think you're gonna endure as much as you might
think because this is what we've done our whole career.
Yeah. We will do the work.
And this is what I've done my whole career. Absolutely. If --
You've got to make a decision.
♪♪
Yeah, let's do it. Ah!
There we go. a good deal is when we both feel uncomfortable.
-That's right. -All right.
-Good job. -Thank you, thank you.
Thank you. Thank you so much. I'm looking forward to that.
Thank you. I appreciate you. Thank you, guys.
Good luck, guys. Appreciate you.
-Good job. -Great job.
John: Hey.
Lee: Daymond fits the brand, Daymond is FOAM.
FOAM is fun. Daymond's fun.
We're gonna love working with him. Yeah!
I hope this shows people that, yes,
you can work for a company for 15, 20 years, whatever it is.
But you can step out and go do it yourself.
Yeah, just take that first step. You can make it happen.
Absolutely.
Na
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Narrator: Next time on "Shark Tank
Narrator: Next time on "Shark Tank,"
the holiday spirit is back in the Tank.
Who's ready to be my gnome-y?
[ Laughter ]
But our Christmas collection puts the cool in Christmas.
We know money doesn't grow on trees, but for us...
Both: It falls from the sky!
It's snowing!
I'm determined to bring back the silly side of snow sports.
[ Roars ] Lori! Aah! [ Laughs ]
For us, it's not about the money.
It is about the money.
I'm glad y'all are saying that.
Ultimately, I've always hustled.
We know we're gonna kill it.
I hate winter. Apparently.
Boring!
♪♪
[ Roaring ]