Narrator: Tonight, the holiday spirit is back in the Tank.
Who's ready to be my gnome-y?
[ Laughter ]
Our Christmas collection puts the cool in Christmas.
[ Roars ] Lori! Aah! [ Chuckles ]
We know money doesn't grow on trees, but for us...
Both: It falls from the sky.
It's snowing!
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!
♪♪
Narrator: First into the Tank are champions hoping to win
in a competitive space.
♪♪
Aww.
[ Chuckles ]
Yo, yo, yo. What up, Sharks?
I'm Aaron Ross. And I am Sanya Richards-Ross,
and we are so excited to be here. [ Chuckles ]
Oh, my goodness. I'm sorry. I'm never so nervous. Okay.
You're good, baby. Alright, let's do it.
You ready? Let's get it. Yes.
We're here seeking $100,000 for 10% of our company.
Now, Sharks, as athletes with our own unique style,
swag, and flair, we always knew when you look good...
You play good. So if we wanted to continue winning
as a family, we needed to...
Coordinate. So we created Coordinates,
a pajama and loungewear company
that elevates everyday moments into lasting memories.
And as a dad, I love when my family coordinates
because everybody knows that's my crew.
And we want you to be proud to show up with your crew too,
especially at the most wonderful time of the year...
Both: Christmas. Now, Sharks, we know you see it,
but our Christmas collection puts the cool in Christmas...
By bringing the swag to Santa.
And Coordinates isn't just about the holidays.
We've done some really cool collaborations too.
With the Olympics coming back to the US,
our Team USA collection will have you beaming with pride.
So, Sharks, who's ready to coordinate with us
and join our movement of...
Matching?
Boom! Good job. Good job.
That is one cute baby.
Yeah, it is now, bro. [ Laughs ] That Afro!
Thank you, guys. Alright.
Sanya, is that your whole family there? That is.
So that was my mom and our two boys and my husband's mom.
Greiner: Aww, that's sweet. So the grandmas and the babies, yes.
I recognize you from football, right?
Yes, sir. Yes, sir. And you went to UT, right?
UT. Yeah. Okay.
How do you know that? 'Cause I live in Dallas, right?
Sanya: Yes, yes. Oh, man.
Why don't you guys tell us your story?
Awesome. I was born in Kingston, Jamaica,
where track and field is the most popular sport.
By the time I was nine,
I told my teacher I would be an Olympic champion.
Well, after a lot of hard work and dedication,
in London, I finally ran into my fairy tale ending
when I won my Olympic gold medal at 400 meters and my --
Wow! Good for you! Yay!
And now I am a loving wife,
I am a mom, and of course an entrepreneur working
on the most important project with my husband, Coordinates.
How long it take you to do the 400?
I'm the American record holder,
so my time is 48.7 seconds. Greiner: Yay! Whoo!
Wow. Cuban: That's insane.
It's insane.
So for me, I grew up in Texas.
And if you know anything about Texas, football is king.
It's everything, yeah. Balled out,
got a scholarship to go to the University of Texas,
and I met my wife.
Junior year, we won a national championship.
That's the Vince Young game, right? Vince Young.
Yeah. Yeah. The Vince Young and Aaron Ross game.
[ Laughter ] Yeah.
Senior year, won the Jim Thorpe Award, which is given to
the best defensive back in all of college football. In the nation.
The next year, got drafted first round to the New York Giants.
Won two Super Bowls with them.
And now I'm a proud family man just selling...
What a story!
John: So let's get this straight -- the kids can say,
"My parents have two Super Bowl rings
and a gold medal in the Olympics."
Four gold medals. Four gold medals. Four. Four.
Underachievers!
Alright. So let's get to this.
So this is actually -- I just felt it a little bit --
very, very nice quality. Thank you.
And this is how you're selling it,
and the concept is for the family to match, or...?
Yes, I love coordinating my family.
Since freshman year. Since I met him in college,
we've been always matching.
And so for me -- Wait, wait, wait.
Since freshman year... Since freshman year.
...you would walk around campus matching? Yeah.
I just always feel like it's a really nice experience
when people know that we were together.
[ Laughter ]
You had to get killed. John: Aw, yo, man.
I can see you going to practice...
Both: It wasn't at first. What you doing, man? What you doing?
I used to fight with it every time.
No, why he did it, because he'd be the first one to be like,
"Let me see the pictures." The pictures were nice.
Especially when the family came about. Yeah.
And so for us, it's more about helping families create,
you know, memorable moments.
Herjavec: So I don't know if you know this,
but I invested in what is now a big pajama company, Tipsy Elves.
Yes, yes. We're doing many, many hundreds of millions.
I love fun stuff. People buy this stuff.
Yeah. How do I order this? Is this an all-online...?
Yeah. So right now we're currently all online.
We launched with our Christmas collection last year,
and we sold out right away.
Like you said, people love the Christmas collections,
so they went online and bought it.
What are your sales? $25,000 in one month.
One month.
This is our second collection,
which was the USA set, and we had it for three months
and we made $55,000.
Herjavec: This year? Both: This year.
This year. What do they cost, what you're wearing?
What do you sell that for? This is a set, and it's $89.
What does it cost you to make? What does it cost you to make?
This is $27. Really not a bad price at all.
And that's going to go down as our quantity goes up.
Sanya, how did you get the license for the Olympics?
We knew we didn't want it to be a seasonal collection.
Right? We didn't want to just focus on Christmas.
I called up the CEO of USA Track & Field.
He put me in touch with the USOC,
and I charmed them like we're doing today.
And are you the exclusive...? Good for you.
We're the exclusive pajama and loungewear partners of Team USA.
Aaron: Through '28. Yeah. Through '28.
This is massive that you were able to do that.
Yeah. Thank you. Thank you so much.
Sanya, I'm not clear -- what is the brand?
Like when I invested in Tipsy Elves... Yeah.
...it was just ugly Christmas sweaters.
But the brand was fun. Right. Yes.
So we've been able to take super fun, cool... Right. Yes. Yes.
...into pajamas, into ski wear. Right.
When I see this, what do you want me to think?
I want you to think about creating lasting memories
with your families.
Coordinates is a tough name, right?
'Cause it can mean a thousand things. Yeah.
I think to Robert's point,
with Tipsy Elves, you know, it's kind of fun. Okay.
Like, with "yo yo yo," like, if you can get that trademarked,
it should be Yo Yo Yo Clothes. John: Yo Yo Yo is it right there.
Well, one thing, of course, is coordinating your family.
So a lot of times you're coordinating events --
But you have to always explain that though, right?
Yo Yo Yo is it.
You never want to have to explain your name... Yeah.
...to make sure it connects to people.
But if it was like Yo Yo Yo Loungewear,
or Clothing or Family-wear or whatever... Okay. That's why we're here.
Yeah.
So look, I'm really impressed.
We've never had this much gold...
Cuban: Right? John: Hardware.
Yeah, and hardware on the carpet. The chips are stacked up.
This is crazy. Thank you.
Congrats. But this is not my space.
However, there are a couple of Sharks here
that have gone down this journey multiple times.
Not a deal for me. Thank you very much.
Thanks, Mr. Wonderful. Thank you. Thank you.
You guys, I'm kind of in the same boat, right?
I'm just not the clothing guy.
Even though I am a fashion icon.
[ Laughter ]
For those reasons, I'm out.
Thank you. Well, thank you.
First of all, so impressed with both of you.
But I don't really know the clothing business.
And, you know, Robert and Daymond,
that's their thing.
On this one, it's better if I go out.
Thank you. Thank you. Thank you, Lori. Thank you.
So, you've only tapped into just a small amount
of your IP value, who you both are. Yeah.
It's worth millions of dollars. Millions of dollars.
This is an insult, the money that we would give you for this.
All due respect to this business,
it's just too early for me,
and I think there's way more value on the other side,
so I'm out.
♪♪
It's alright. Thank you. Herjavec: Sanya and Aaron,
your story, it's authentic.
Creating an authentic brand is super hard.
The one thing you didn't talk about --
I'm putting my glasses on because I'm old -- is... Yes, yes, yes.
I wanted to see -- We have to tell them this. We need to talk about that.
Like -- Like... Yeah, can we tell you about that?
Sanya... Yeah.
...I'm reading this. Yes.
Resilience. Focus.
Yeah. Yeah. Hard work. Dedication.
Courage. Greiner: What? Is that on the fabric?
Excellence. Yeah.
Why is that not the brand? Aaron: Yes.
Yes. Yes. You are winners.
Yes. That's it. This is so motivating.
Thank you. My husband always says that.
That's true, Robert. Robert, that's a good point.
Greiner: It's true. That is the brand. See?
You're confusing me. Both: Yeah.
Why is Live the Dream not the name? Yeah
Aaron: Right. Right.
Well, I mean, that's -- Listen.
We spent 30 years dedicated to sports,
and we became the best at it. Right.
So we are now learning business,
and we truly do want to be great.
And so we know if we partner with somebody, with our drive,
with our dedication to hard work, we know we can be great,
but we're just figuring it out as we go. Right.
Sanya, why are you so emotional about this? She's passionate.
The one thing about my wife, I mean, she's --
She wears her heart on her sleeve, and she's a grinder.
She's a go-getter.
I'm not saying this just because it's my wife,
but anybody that you want to do business with
or just have on your team, it's her.
I know for every husband, you want to get a partner
that's going to pull greatness out of you,
and she's pulled greatness out of me, so... Aww.
That's wonderful.
Anything she puts her mind to,
I know she's going to achieve it.
It's also really important to us, too,
because as athletes,
I think when you start making all this money,
a lot of times you don't have a lot of guidance around you.
And a lot of people took advantage of us
at the beginning of our career financially.
And so now I feel like we can do something
that's legacy-building for our children.
So I'm really motivated by doing this for my family,
and so I feel like this is an opportunity to really rebuild
and be able to pass on something to our children.
And for us, it's not about the money,
it's about the relationships, the mentorship. Yeah.
Aaron, it is about the money.
Look. Never sell yourself short. Both: Yeah.
You guys have achieved something nobody up here
would ever achieve. Thank you.
I think the brand is just so confusing to me, but I'm torn.
♪♪
Narrator: Four Sharks are out.
Robert is Aaron and Sanya's last chance for a deal
for their matching sleepwear company, Coordinates.
You guys have achieved something nobody up here
would ever achieve. Thank you.
I think the brand is just so confusing to me, but I'm torn.
Like, half of me is like... Make an offer! We'll figure it out.
..."Oh, my gosh, I love these people!" We'll figure it out together.
I love the words. We'll figure it out together, Robert.
We'll figure it out together.
But the other half of me is like,
you did $25,000 in sales last year.
You did $50,000... Yeah, but we did a really small run.
We did a really small run both times
because we just wanted to test the market.
Aaron: Right. So especially the Team USA stuff coming up,
I mean, we know we're going to kill it.
Are you open to changing some of the branding? We're open!
Yes, 100%. Yes?
We're very coachable.
We want to build a successful business,
and we want it to be authentic to who we are. Okay.
I'm very good at this.
I'll give you the $100,000 for 25%.
It's super early. To me, you're almost like a startup.
I'm investing in you. Yes. That's all we want.
And I know the work, and I'll work with you on it.
$100,000, 25%.
Would you do $100,000 for 20%?
Aaron: Yeah.
I'll do that. Oh!
Cuban: Look at you, DJ!
Greiner: Oh! Yeah!
Oh, hey, with all due respect to my friend Daymond,
he's a great guy.
I am living this space right now.
I've lived this space for 16 years. Ooh.
Well, I'll say this.
I appreciate you staying with us the whole time,
you know, and getting to this point.
♪♪
I love Daymond, but would you do it for 20%?
♪♪
Alright, I'll do it for 20%.
Done!
[ Cheering ]
[ Laughter ]
Aah!
[ Indistinct ] Aah! Aah!
Nice work!
We were not leaving -- Great job!
Yes! Congratulations, guys.
Hey! Hey! Hey! Hey!
I think you want to partner with somebody
who really wants to partner with you.
He believed in us.
And the fact that he just stayed there with us and he --
And, babe, you are so right about the words.
That's who we are. Thank God we gave Robert that collection
because had he not seen it, he would have maybe not
really made the connection. Yeah.
[ Screams ]
We got a deal! We got a deal!
[ Cheering ]
[ Laughs ]
♪♪
Narrator: Last season, Heather Kelly came into the Tank
with her gourmet camping meals company, Heather's Choice,
and she revealed that her company was barely surviving.
The reason I feel really beat up is
I didn't make payroll yesterday.
-[ Gasps ] -Ohh. -Ouch.
Kelly: And if you were to look at our balance sheet,
you'd be like, "How on God's green earth
is this girl still alive?"
Narrator: The Sharks gave her some stark advice.
There are a huge market out there of other consumers
who would love this food.
I see somebody afraid to say yes.
You have to make it yourself. You won't use a co-packer.
You've got to get out of your own head.
Heather left the Tank without a deal.
Let's see how she's doing now.
Kelly: When I walked into the Tank,
I'd been running the business for nine years.
I had about $5 million in lifetime revenue.
I also had $1 million worth of debt,
and I was completely out of cash.
When I got my final no from the Sharks,
I walked out of the Tank feeling like it was all over.
I either have to decide this is the fate of the business,
or I'm going to continue to fight.
After our air date, I received outreach from the Sharks.
I received a ton of feedback
from our customers and "Shark Tank" viewers,
and everybody said loud and clear,
"Don't compromise the quality of your product
and just keep going."
This is why they pay us the big bucks.
The really loud advice from the Sharks was
whether feeding college students or busy moms,
we would need to be selling to a much wider audience of people
and finding fulfillment partners in the lower 48.
With this move to a co-manufacturing model,
we're able to essentially save tens of thousands of dollars
every year just on freight to and from Alaska.
We're expecting by the end of the year
to have a co-packing partner, a 3PL,
and to be fully set up in the lower 48
so that Heather's Choice can take off.
Since taking the Sharks' advice and expanding into new markets,
we've done $1 million in revenue in the past seven months.
We are slowly chipping away at our debt.
We have cash in the bank,
and the business is healthier than it's ever been.
We are celebrating 10 years of Heather's Choice,
and I could not possibly be more excited for the next decade.
Going on "Shark Tank" was such an eye-opening moment
for me of I wasn't thinking big enough, which is wild,
and I also wasn't open to the possibility
of Heather's Choice being more than a backpacking food brand.
The Sharks were the catalyst
that helped me break free of the one thing
that was holding me back, and that was myself.
The advice I would give to other entrepreneurs
is to surround yourself with people like the Sharks,
who are going to force you to think bigger
and to be more audacious in the goals that you set.
♪♪
[ Waves crashing ]
♪♪
Narrator: Next up is a new take on a classic holiday tradition.
♪♪
Aww.
♪♪
Hello, Sharks. My name is Jenna Hess.
I'm from Frisco, Texas,
and I am the founder of Gnome Advent Calendar.
I am seeking $45,000 in exchange for 10% of my company.
Sharks, I am bringing the magic of the holiday season
to life in a whole new way.
Introducing the Gnome Advent Calendar,
a whimsical and enchanting way to countdown to Christmas.
Our beautiful advent calendars open up a magical portal
revealing a gnome-filled world.
Each day unveils a unique gnome, bringing joy and excitement
to kids and adults alike.
These gnomes are handcrafted with intricate detail
and made from high-quality fabrics.
Our designs are inspired by Scandinavian folklore,
bringing a touch of charm and magic into your home.
But we don't just bring gnomes into your homes
during Christmas time. [ Chuckles ]
Hess: We also offer advent calendars for other holidays,
like Easter Bunny-approved daily gnomes for Easter
and 14 adorable love-themed gnomes for Valentine's Day.
And we can't forget about Halloween,
where we got 31 days of spooky gnome fun.
[ Laughter ]
We are truly building holiday traditions
that families can look forward to for years to come.
The advent calendar market is a growing billion-dollar industry,
with consumers looking for more unique and high-quality options.
So, Sharks, who's ready to be my gnome-y
and spread tradition and holiday cheer... [ Laughter ]
...one gnome at a time?
Great line. Great line.
Greiner: Very cute. Great line.
You each have your own Gnome Advent Calendar.
And thank you so much to my gnomies.
Y'all can now go back and play in the garden.
"My gnomies." Bye, gnomies!
Hanging with my gnomies.
They're very sizable gnomes. Hess: They are.
Those are 12-inch gnomes in the Christmas calendar.
Mr. Wonderful, I gave you the Halloween one.
O'Leary: I saw that. I'm very --
I'm intrigued because you can't sell that in retail.
It's too big, right?
Right. I don't want to go to retail.
Are you online only? Hess: Yes.
How much is the Christmas one?
Okay, so the Christmas I retail for $147.
That's cheaper than I expected. John: This?
That's way less than I thought, too. This? That's it?
$147. What's it cost you to make?
$47. Greiner: $47?
This is a great value. And how many gnomes are in each calendar?
So, the Christmas ones, there's 24.
And, of course, the Halloween, there's 31 gnomes.
How much is the Halloween one?
So the Halloween one is $135,
and that one was about $35 to make.
It is a great price. No, it's too cheap.
I'm glad y'all are saying that,
because the average cost of a 12-inch gnome is $28.
And when you get it in mine, it comes out to $6.12.
Didn't we have somebody on that did gnomes?
Wendy's Gnome Shop.
Yeah. Doing great.
Jenna, what are your sales?
So, my lifetime sales right now are $160,000.
I've only been in business for 18 months.
Wow. And how do you sell it, Jenna?
I have my own website and then TikTok Shop,
which has been huge, you know, the past year.
How do I even know about you, how do you find me,
and how much money have you spent on advertising?
I don't. I don't buy advertising.
You don't spend any money on marketing? No.
So where do you go looking for customers?
I find influencers on TikTok.
That are into gnomes, or into what?
That have a lot of followers.
I gift them a box. You gift it to them, right.
And then you just ask them to show it. Right. Yes, and they show it,
and their customers buy it.
And, Jenna, tell us about you.
I started in the health care business,
and then I started to have my family,
and I was a stay-at-home mom for about 10 years.
And then once me and their father separated,
it was time for me to get back to work,
but I did not want to leave my kids.
So I got into finding something to do
that I could stay home and provide for my family.
And I tried so many products to sell.
Some were good, some are not.
My best one was the advent calendar by far,
and I also had access to a program
and it showed what people were searching for on Amazon.
The top searches. It was always gnomes.
They were everywhere.
What do you need from a Shark?
I need your expertise. I need your guidance.
This is my very first business I've been running by myself.
I'm hoping to bring the price down even more
if I could order more.
Why do you think you need to bring the price down?
'Cause the reaction from the three, four of us...
You're not charging enough.
...was it's too cheap. Really?
Yeah, that Christmas box should be like $399.
Daymond and I thought it was $300.
I think the ultimate set is they're alive.
[ Laughter ]
That would be nice. Yeah.
They're called children. Yeah.
See, I already have six children.
Cuban: Six?! Six?!
Six children?! Hess: I do. I do.
I don't know if you need to go there.
I mean, I think, honestly,
when you came out and you told us the price,
Daymond and I both thought it was gonna be $300.
My twins will lose their mind when they see this. Yes. Yes.
It's super exciting. Yes.
You can grow this business to a few million dollars,
I have no doubt.
Keep doing what you're doing. Yes.
But as an investor, though, as a Shark, I'm out.
I think it's super cute. I love advent calendars.
I don't really think you need my help.
I will be a customer.
I'll be waiting to see what advent calendars come out.
I wish you good luck, but I'm out.
This is a perfect example of a company
that is great for an entrepreneur,
because you can just grow it at your speed,
which is important to you with your family, right? Yes. Yes.
And when you take money from an investor,
we want you to work at our speed,
which is faster, faster, faster.
The expectation is completely different. Yes. Sure.
And so my only piece of advice is raise your prices.
Congratulations. You've done amazing things.
But for those reasons, I'm out.
Thank you.
So I had already made a deal with Wendy's Gnome Shop,
so I have enough gnomies in my life.
So I think I'm a little over-gnomed at the moment,
so I'm out.
Okay. Thank you. I appreciate that.
O'Leary: Jenna, I think your heart's in the right place,
and you certainly have achieved the freedom you pursued.
That's the essence of entrepreneurship.
But this sounds like it could get to
maybe two or three million bucks a year. Yes.
Although $3 million for you would be fantastic... Right.
...you'd be making about $1.2 million a year.
Yes. So let the gnomes dance.
[ Chuckles ] Okay. It's phenomenal.
I wish you good luck, but I'm out.
Alright. Thank you all so much.
I really appreciate y'all's time.
Congratulations on your success. Thank you. Thank y'all so much.
You're going to be a millionaire from this.
You are. Thank you. I love it so much.
It's been so much fun.
Thank you. Thank you very much. Appreciate it.
For them to say that I could push this
to a $3 million business was amazing feedback.
The confidence that they gave me
just makes me want to persevere even more.
♪♪
[ Waves crashing ]
♪♪
Narrator: Next up is a business designed
to be a perfect side hustle for college students.
♪♪
Hey, Sharks, I'm Jake Piekarski
from Huntington Beach, California.
And I'm Philip Loveland from Libertyville, Illinois.
I think it's safe to say
that nobody wants to open their front door in the morning
and see a pile of snow on their driveway.
It's both frustrating and time-consuming
having to remove all that snow.
But college students have lots of free time.
Of course, that's after going to class and studying.
That's where we come in at Snow Scholars.
Snow Scholars is a snow-removal business
that employs college students.
So when the snow falls like this...
Ah! Ah! Oh, yeah.
It's snowing! John: Wow.
Piekarski: ...we make shoveling your own snow...
Both: A thing of the past.
We're one of the highest paying jobs on campus.
So how does it work?
Homeowners can sign up for a full-season plan
or a vacation plan on our website.
They can select the areas they would like to have shoveled,
salted, or sanded.
All of our plans include hand shoveling,
free salting or sanding, and a knock on the door
by a friendly college student. On a snow day,
a Snow Scholar will receive a text
to begin shoveling their assigned homes.
They take before and after photos,
which are then sent to our job reviewing team
to maintain our five-star standards.
Now, Sharks, we know
money doesn't grow on trees, but for us...
Both: It falls from the sky! [ Laughter ]
We're seeking $75,000 snowflakes for 10% of Snow Scholars.
So who's ready to join us
as we continue snowballing our way to success
across college campuses
and help more students...
Shovel student debt one inch at a time?
O'Leary: Yeah. What campuses are you guys on?
Yep. Right now we're on two college campuses
at the University of Wisconsin-Madison
and the University of Minnesota Twin Cities
with plans for expanding to four more this year.
So there's over 140 college campuses
that this business can go to both in the US and Canada
that fit our criteria.
Jake, how does it work?
How do you find clients? Just walk me through the process.
The last year we did mostly just social media marketing.
This next year we're partnering with campuses
to get on their student job boards.
So that's how you get the students, the shovelers. Yep. Correct.
How do you get the homes? Yes.
Yes, so we send out flyers to doors.
We pay college students to distribute flyers for the season.
You're doing physical flyers? Physical flyers.
And how much is it?
So our average cost per snowfall is $74.56.
Regardless of how many inches? Regardless --
Yep. That's what customers love.
That flat rate. Compared to our competitors,
they can charge as much as $300 to remove snow.
Your competitors local? What?
Not for a single driveway. For a single driveway.
Well, look, in Michigan,
sometimes they have winters with no snow.
Right. So what happens then? What about ice?
Do you come and salt? So we dispatch at one inch of snow,
which is very small. What about ice storms?
Yes. So ice storms.
Ultimately we do provide free salting and sanding...
Whoa, what's this free stuff?
So why do you do that for free?
Ultimately, homeowners are tired of paying
a ridiculous price with over $100
to apply salt for one time.
We do it for free, and even though we charge $74.56,
we have a 73.3% net profit margin.
Loveland: We have our whole team,
and we have our design software that we use
to make all the routes within three hours
before the snowfall.
And each shoveler gets roughly five to six homes.
If they want more, we can give them more. If they want less...
So you have software that does an optimization basically? Yes. Correct.
Software you just -- you created, or...?
We custom built our own software.
The biggest reason why we did this is we want this business
to be operated by very few people.
We want it to be automated.
What are your sales?
So a snow season starts December 1 to April 1st,
so this last snow season we did $116,800 in sales.
Wow. And we profited $85,500...
Whoa. That's... ...all while being able to generate $25 --
or pay students $25 an hour... Good for you.
...which is the highest paying job on campus. That's amazing.
They'll make about $185 a day.
Is it just you two guys?
It's just us two. Are you 50/50 partners?
So I own 100% of the business,
but Philip has put in more -- Greiner: You do?
Yes, but Philip has put in -- Philip, how'd you let that happen?
Oh, I have a sweat equity deal. Oh, there you go. Okay.
So eventually, once we get to $270,000, I get 30% of it.
Oh, there you go. Good for you. So, let's go back to you.
Kevin, don't speak. Let's go back to you.
Tell us about you, how you came up with this.
So we both just graduated from the University of Wisconsin
with management and entrepreneurship degrees.
Philip also has a psychology degree. Yeah.
Ultimately, I've always hustled.
I actually grew up playing ice hockey.
To pay for my hockey equipment, to help my parents out,
I would buy 100 rolls of hockey tape from China for $100,
sit at hockey arenas on weekends,
and sell them all out for five bucks a roll.
And that's how I would pay for all of my hockey equipment. Ah, that's good.
And during my junior year, that's when actually
I met him at a company I was interning for.
You may recognize it. It's called Storage Scholars.
I know a little bit about those guys. I know. I think you might have.
And what is that? Storage Scholars is a company that came on "Shark Tank"
that I invested in that's crushing it.
And they organize move-in and move-out.
Oh, that's right. Oh, that's right.
I thought that was very smart. John: That was two years ago. Or one year ago, right?
Guys, you know, I grew up in Boston.
We have nor'easters.
It's the worst winter money can buy. Freezing.
And I swore to myself years ago, I hate winter.
And I finally made it to Miami where I spend all winters.
I'm never going to deal with snow again. Yep.
But I'm romantically involved in it.
I like to look at pictures of snow
while I'm sitting on the beach.
That's fantastic. I like your deal.
I like you guys. I'm going to make you an offer. That's awesome.
I'm going to give you $75,000 for 20%.
Hey, Kevin, I'd love to defend that valuation.
So, it's -- [ Laughter ]
Don't even bother.
It's really --
So this business started November 2022.
We had $18,000 in sales in that first snow season
with $13,000 in profit.
This next year, we were able to maintain those profit margins.
But it's very hard to value a business at early stage,
but I will give you the facts.
So ultimately we grew from --
What, are we in class here?
Greiner: I like it. Apparently.
So we grew from 34 customers to 353 customers
with the opportunity to go to 700 customers.
Our customer acquisition cost is $7.08, and for each customer,
they spend $814 a year on us.
Well, I like that you know your numbers.
I started off doing this exact thing... Yeah.
...because in the hood it was, as soon as the snow fell,
that's a day off and I can make money.
Yeah. So what I decided to do
was charge all the customers around $10.
And I realized after about 30 houses that I can sit home
and give my friends $4 a driveway,
and I would sit home and do that. Exactly. Exactly.
So I really know this business.
I'm gonna match Kevin's offer, $75,000 for 20%.
Thank you, Daymond. I was gonna go 25%,
but if Kevin wants 20%, then I have to go 20%.
20% is very reasonable, you know?
You remind me of the guys I actually teach in school. Greiner: Listen, let me tell you what I think.
First of all, I think you guys are fantastic, I really do. Thank you.
I just -- I'm not even sure why you need my help,
because I think you're doing everything right.
I'm sorry. I'm out. Yes.
I think you're going to struggle to make it scale.
The variance of snowfall and the peak in demand
is going to be really, really hard.
I can't see this business scaling on the large scale.
I'm out. It's not for me. Okay. Thank you, Robert.
So I've driven to over half of these college campuses. You have two offers.
We do, we do.
Guys, I'll give you $150,000 for 20%.
♪♪
Mark, we'll take your deal. Done.
Ha! Oh! Thank you.
So, guys, what are you going to do?
Thank you, Mark. Cuban: There you go.
Bring it in. Bring it in. Bring it in, baby.
Thank you. Thank you. You guys already know from Storage Scholars
the challenges you're going to face.
Done. Appreciate it, guys. Thank you so much.
Thank you very much. Thanks, guys. I appreciate it.
Congrats, guys.
Piekarski: Thank you for your offers.
I hope it never snows again.
[ Laughter ]
Data over 10 years will show us.
Thank you! Bye-bye. See you!
Both: Whoo!
Deal with Mark. Whoo! Hey!
On to Wisconsin.
Mark was our target Shark because he ultimately had,
you know, a huge background in technology,
he's got credibility as a name,
and he has experience with another college student owned
and operated company,
which we are looking so forward to working with.
Whoo! Let's go. Yay!
This is very exciting. Whoo!
[ Waves crashing ]
Narrator: Next up is a fun way to bear the cold.
Oh. Uh-oh.
[ Beat boxing ]
[ Laughter ]
♪♪
O'Leary: Oh! Oh.
[ Laughter ]
Hello, Sharks. I'm Carlo from Boulder, Colorado.
I'm the Papa Bear of Wildcoat,
and I make the most fun coats in the world.
[ Cheering ] Whoo!
Today, I'm seeking a $350,000 investment
for 10% equity in my company, Wildcoat.
Mm-hmm. Sharks, I don't know if you've gone skiing lately,
but the outfit options are monochromatic,
repetitive, and, frankly, downright...
boring!
I'm determined to bring back the silly side of snow sports,
which is why I created Wildcoat.
[ Laughter ]
Aside from looking ferocious,
these babies are high-performance winter coats.
They've got seven oversized pockets
for all your snacks and gear.
An adjustable hood fits over a helmet, a hat,
or your bear head.
[ Chuckles ]
Magnetic storm flap and magnetic mitt attachments
so you can flip the claws back.
And they're modular, so you can fully detach the hood,
sleeves, and mitts.
Not to mention they have a temperature rating
to rival a real bear.
[ Roaring ] [ Chuckles ]
Sharks, let's make the world a more fun place
one Wildcoat at a time.
Who wants to join us at the après?
[ Cheering ] Yeah. Alright. Alright.
Good job. Each of you has a Wildcoat
in front of you there if you want to check it out,
try it on if you want.
We definitely do. Oh, it's cool.
Wow. Look at that thing. Oh, my gosh. It's heavy.
They're heavy duty. Yeah.
They really are the warmest coat you've ever worn.
How cool are these? They're a good time.
Greiner: This is really fun. So, we've got a polar,
a panda, a wolf,
a grizzly, and a buffalo.
[ Roars ] Lori! Aah! [ Laughs ]
So, were any animals harmed in the making of these coats?
None. So they're all faux fur.
Faux fur, but they have the warmth of... These are great. They feel amazing.
They feel they have the warmth of a real fur. Of a real fur, yeah.
They don't feel real heavy, but they're that warm.
So that's -- Part of it was I designed them --
So I've been skiing for 32 years,
and in order to make it an everyday ski coat,
it has to fit well and have all the features.
How much is the coat?
$449. Well, that's not bad.
Yeah, it's like a -- very much like a mid-tier pricing
for a quality ski coat. $449 for any style?
$449 across the board, yep.
And we get them landed anywhere $120 to $130.
Where are you selling them at and how you marketing them?
All online. So all in our own shop.
Good. Marketing, we've done a lot on basically paid ads.
But then this last year
we focused more on in-person events.
We did a Bears game, a Bills game, X-Games,
and then two other ski events.
The week following those events,
we saw a 50% to 70% jump in sales.
I think those events are how you sell something like this. Huge.
And that's how the whole company started.
So eight years ago, I got this bear costume for Christmas
for my family because there's two things I love --
skiing a bunch and being a little silly.
So obviously I made it my everyday ski coat,
even though it was very much a costume.
It was not warm, no pockets, no zipper,
and it had like a foam molded head,
so I couldn't even wear it over a helmet.
But I still skied in it every day because it was a great time.
And you talk to everybody -- on the chair, middle of a run,
people stop you asking for pictures.
So my business partner and I,
we skied together and we knew we were on to something.
What business were you in? Are you a clothing guy? No.
So actually, I went to school for engineering, and then I --
And look what happened to you.
Right? [ Chuckles ] My parents are very proud now.
Okay, what were the numbers?
So in 2021, we did 135K.
Year two we did $375,000,
and then last year we did $505,000.
And this year -- And all you were doing
was going to a few games and to the slopes?
DiMeo: Yep. So this year I'm confident we're gonna hit 700K.
Why isn't it scaling faster, Carlo?
Because I look at it and I'm like, "Wow,
this is very cool." This is fun. Yeah.
It's fun. Sure.
I have a lot of experience with this. Totally.
I disagree with you there isn't fun ski wear.
Look at Tipsy Elves. They're also fun.
30% of our revenue now is those cool neon ski outfits. Yeah.
You know how we did it? Having people ski in them.
Sure. So this past year is when we really focused
on more in-person selling.
And in terms of our ad spend in 2022, we went big on Meta.
And so what did that cost you to acquire a customer?
'Cause you got $300 of margin to play with.
So in 2022, it was $150 for paid ads.
Ouch! Ouch. Ouch. Which was way too high.
Wow! So last year,
we really diversified our marketing efforts.
Okay. How much is your inventory right now?
So right now we have 1,200 coats.
But what's the dollar amount? About $500,000.
At your cost? Oh, that's a lot!
At my cost, about $150,000.
So can you tell me what you think you'd make on this
700-plus thousand in sales this year?
Sure. So this past year,
we basically broke even because we went so big on inventory.
Okay, well, here's a problem.
You're valuing your business at 10% for $350,000,
$3.5 million imputed value.
You make no free cash if you broke even.
But there's no way this business is worth 3.5 million bucks.
It's impossible.
I love the product, but I'm out.
Okay. How much cash have you put into the business?
So total, we've put 285K into the business.
Of your own money? I did 25K,
then my business partner did the other 260K.
And how much do you own, and how much does he own?
I'm 65%. He's 35%.
So, Carlo, I think it's super fun.
I really love it. I definitely want the wolf.
Love it. I think it's very cute.
It's a niche market. I'm definitely gonna buy one.
I wish you good luck, but I'm out.
Thank you. Cuban: Yeah, Carlo, I'm along the same lines.
It's very niche. I don't think you need to spend money on Meta
or any advertising.
You should be all social media.
But I also think you need to raise your prices
because this is not a price-sensitive item.
This is a fashion statement. This is a branding event, right?
When you wear this, you are branding yourself
on the slopes or at a game.
You are saying, "Look at me."
People will pay any price for that,
but I don't see it as investable.
So for those reasons, I'm out.
So, I love it.
You sold $1.2 million, but you have $500,000 in inventory,
which you haven't moved.
That's 1,200 units.
So I can give you an offer,
but it's really for me to come in
and get you more homed-in on what you're doing,
and then license different categories
so you could take up more of the space, right?
Okay. Gloves, everything else.
So I'll give you the $350,000.
You asked for 10%. I'll give it to you for 30%.
[ Roars ] He's a real bear.
Greiner: I don't think that's bad, actually.
Wow, that's a grizzly offer right.
So, Carlo, I, with all due respect to Daymond,
he may be the FUBU godfather,
but on "Shark Tank," I am the Papa Bear of clothing.
♪♪
[ Waves crashing ]
Narrator: Three Sharks are out.
Carlo has one offer on the table from Daymond
for his novelty ski jacket company, Wildcoat,
but Robert also seems interested.
Herjavec: I know this space. There's a lot of work with this. Sure.
It should be bigger, but you've got to go now.
You know what happened to us at Tipsy Elves?
Everybody knocked us off.
You know what our best protection was?
Getting bigger.
You know what we said?
We're just going to make a really big company
and become a brand.
You got to become the Wildcoat brand.
Here's my offer for you.
$350,000, 25%.
That's my offer.
O'Leary: $350,000.
Daymond wants 30%,
and Robert will do it for 25%, 5% down.
I would join Robert with licens-- I wouldn't license it.
Yeah, that's the problem. Not today.
I'm looking at scalability.
I mean... Don't cheapen the brand.
That's the one thing I've learned out of all these years
is you got to build the brand if you want to scale the business.
I was selling at 1.10 million pairs of jeans a year.
You want to get to that level.
The difference of what Robert is saying of cheapen the brand,
you can cheapen that brand if you get it out,
because you know what it is when you get it through those doors?
It's more people on the mountain to pay for it. Greiner: Right.
That is true. It's a difference of paying --
At a discounted price. No, it doesn't matter.
Well, nobody knows that. They just see it everywhere. Nobody knows that.
Nobody knows, and that's the difference of that.
Carlo, what do you want to do? What are you thinking?
Well, I'm thinking that 25%, 30% is a little high based on
where I know we can take -- You can counter.
Would you do 15%?
No. No.
Okay. So what do you want to do? They're stuck.
It's a lot of dough. The $350,000 is a lot of dough.
It's a lot of dough. Carlo, I know it's a lot of dough,
and I know it seems like a low valuation to you.
I just know the problems.
Would you do 20%?
I wouldn't do 20%.
♪♪
Would you do 23%?
Because I'd like to keep at least 50%
of the company for myself.
That'll keep me at 50.
♪♪
I'll do 23%. Yeah, I'll do 23%.
Great. Ooh! You have both Sharks.
Right now. I will do 23%, 'cause that's a reasonable ask
and I want you to keep 50%.
Carlo, look, there are a lot of ugly Christmas sweaters.
Yeah. But there's only one Tipsy Elves, my friend.
Oh, okay. Alright, enough with the Tipsy E-- Enough of that.
There's a lot of clothing brands,
but there's only one Coogi, FUBU, Bombas socks,
Heatherette. That's true. You're right.
So I've been doing this for quite some time. What are you, a mass-buy clothing brand,
or are you a specialty ski --
You got to figure out what you are.
You want to make money.
We're niche. You know? You are niche.
You can obviously tell he's trying to take you
in a different direction.
I can only take you in one of the direction
of the 12 clothing companies that I own.
What are you going to do?
♪♪
So it is tricky 'cause, you know,
you guys are both fantastic.
Would you like to go in together so we can hit both angles?
Absolutely not. No?
[ Laughter ] I don't need someone with one clothing brand
to tell me after my 12...
Do you want a partner that'll just throw you under the bus like that?
O'Leary: Carlo, you're gonna pass out in that bear outfit.
Like, you really gotta make a decision.
Cuban: You just gotta make a decision.
♪♪
Robert, I'd love to do a deal with you.
There you go. Boom!
[ Cheering ] Bear necessities.
Yeah! Give you a big [indistinct].
[ Laughter, roaring ]
I don't want to get too excited, but...
That's okay. Whoo!
Congrats, Carlo. Congratulations. Great pitch.
Great pitch. Great pitch. Thank you guys so much.
Let's party on out of here, guys.
Oh, my God!
[ Laughter, cheering ]
Bye, Sharks!
Thank you!
I look fabulous. Furry convention, here he comes.
[ Laughter ]
O'Leary: Oh, that is funny.
That's funny. John: That is funny.
We got ourselves a deal with Robert.
It's going to be good. We're ready to blow this thing up.
[ Cheering ]
And now we're gonna go find the nearest freezer.
[ Indistinct ] [ Cheering ]
♪♪
-- Captions by VITAC --
♪♪