VOICEOVER: Tonight...
Alright, boys! Let's go!
..memorable entrances...
Here we go, ladies. Hello, boys.
Does anyone want to check out the vehicle?
Who wants to see a camera?
..lead to shock exits.
I'm out. I'm out.
And one entrepreneur...
I'm a little bit nervous about my numbers.
It does take 14 separate factories to make.
..faces the wrath of the Sharks.
OK, hmm, here we go.
Time kills deals.
Are you profitable?
Valuing your business at $1.5 million...
Why are you here? Who will survive the Shark Tank?
First to face the sharks is Sebastian Langton, who hopes
to make people's lifestyle dreams a reality.
I flipped everything from boats to motorbikes to cars.
You know, this is really what I love to do.
We build dreams for a living and we love every moment of it.
Hi, Sharks.
My name is Seb Langton and I'm the founder of Vanable,
one of Australia's leading custom van conversion companies.
Van life is rapidly growing and quickly becoming accepted
as a new way of life.
Since launching the business in 2021, we've experienced
a booming industry accelerated by Covid,
but sustained by the cost of living crisis
and the shift towards remote workplaces, which is why
we've been able to achieve more than 2.7 million in sales...
Nice.
Good job.
..in the first two years of business organically,
why we've had to expand multiple times
to keep up with the demand
for our exceptional builds,
and why we're projected to do
more than four million in revenue next year.
Wow.
I'm here today seeking 300,000
for a 5% stake in my business.
Wow. Wow.
(WHISTLES) You dream it, we build it.
Exquisite,
completely custom built, fully compliant vehicles,
as unique as the owner's tastes.
Thanks for listening.
And before we get into questions, does anyone want to check out
the vehicle and see what we do best?
DAVIE: Yes. Am I going to fit in the bed?
You will.
I'm in!
He's in?
Am I too long? Let me in.
Oh, I'm too long. Let me in!
I'm not sure I fit. Oh, no, I do.
I'm going to cook for you guys. What would you like?
This is comfy as.
So you have hot and cold running water.
You've got a shower out the back, you've got your fridge,
you've got a pull-out induction cooker here.
It feels like there's quite a lot of space in here.
Even the roof is done.
VOICEOVER: With the Sharks impressed by the huge offerings
in the compact size of Seb's van,
Sabri Suby is interested to learn more about the man behind the van.
Hi, Seb. What led you to start this?
I was a yacht captain. I got... ROBERT: You were a yacht captain? Yeah, yeah.
You're speaking Robert's language! Yeah! (LAUGHS)
I had a 186-foot Amels.
Yeah, very nice.
The thing I love about boats is, no matter how big your boat is,
there's a space for this, there's a space for that.
It reminds me of a high-end yacht.
Are we talking about yachts or vans? Oh, sorry, sorry.
Well, actually, it's funny because my experience on yachts
of all different sizes is what led me to be able to design
such efficient interiors.
Mm.
Because all boats have to make use of the interior extremely well. Yeah.
Walk me through the process.
So I buy a van, I bring it to you.
What's the next step?
So we take the vehicle's size from the manufacturer.
We apply our costing to that, and our quotes are very simple.
We charge per cubic metre.
How much is it per cubic metre?
£5,000 a cubic metre for our standard designs.
$6,000 a cubic metre for anything completely bespoke.
What's that? Is that bespoke?
That is a standard design.
That's standard?
Wow. That's standard? What does the bespoke look like?
Marble. (LAUGHTER)
So, by bespoke, you mean you can change a few things?
You can change absolutely everything. It's whatever you want, basically.
We actually build a lot of the componentry
outside of the van because it's quicker and it's faster,
and then we install it into the van so we can actually build a vehicle
even though we don't have the vehicle.
So you build all the components, van shows up, you just ram it in there.
That's correct.
How much does a fit-up cost, typically?
So something like this would be around $60,000 plus your extras.
60,000. Is that a lot? 60,000 for the fit-out?
That's correct.
Seb, if I could buy a tiny house for about that.
It is a tiny house. It's a tiny house on wheels.
I mean, we have people going off to do this forever.
Why stay still?
It's like having a boat in a harbour - it makes no sense.
So, Seb, what's your bottleneck right now?
At the moment? Yeah.
One of the major challenges we have is stock
and procurement of stock
and keeping that flow of stock coming in.
The other challenge that we have is we want to expand further.
We want to turn up the dial.
We've got a facility that can accommodate more builds.
But, you know, it's a case of ramping up that advertising,
going nuts.
Are you profitable?
Uh, we broke even in our first year.
We've made small amount of profit this year.
Where we become profitable is with scale
and that's what I'm focused on.
You're selling the vans for 60. So where's all that profit going?
Well, I mean, we have to run the business.
So is it majority the facility rent? Or what are those other costs?
Facility rent is a significant portion of our costs.
I mean, we pay, I think it's about $280,000 a year for our facility.
How many vans can you do a month in terms
of revenue in this facility?
We will be able to do over 140 vans a year.
What's that monthly revenue?
I mean, in year five, we get up to ten mill revenues.
So, you know, it's going to be almost $1 million a month.
$1 million.
Wow.
VOICEOVER: With a large cost attached to the vans and their manufacture,
has Seb sold the van life dream enough
to get a $300,000 investment for 5% equity in the Vanable business?
Seb, I'm going to just jump in here.
I think this is an amazing business you've built.
And the vans look incredible.
When I'm thinking about people having a lifestyle experience
or a travel experience, I'm actually kind of a little bit more interested
in putting people into a virtual reality headset
and having them visit the places
that perhaps your people in the van would go to,
but in a virtual environment.
The business at this stage is not for me.
So I'm out.
Thank you.
Hey, Seb. Hey.
I love what you've done.
I think for me, it's...
If this is a business where you are renting this out,
I feel like that's probably something more that I can help with.
But as the business stands today...
..for this investment, I'm out.
Thank you.
Will Seb and Robert's shared love of yachts
convert to an investment in van life?
I just don't understand the van life.
(LAUGHTER)
Like, honestly, when I was coming up and I had no money
and I was Davie's age, I was so poor that when I went
to my first trade show, I had to sleep in hallways.
And I said to myself, "If I ever make any money in life, I will stay
"at fancy hotels and fly in a really nice way."
And sail on nice boats.
Yeah!
Yes.
So I appreciate the quality. Mm.
I'm out. No worries. Thank you.
With Robert Herjavec feeling less than enthusiastic
about the concept of van life, will Davie Fogarty make Seb an offer
he can't refuse?
Seb, you've got the operations down pat.
You're going to keep scaling that.
I understand the international markets,
but most of all, I understand social media,
and that, I think, is going to be the next step.
I do think this is going to be a big business.
Yeah.
So let me help you and your team blow up your social media.
And I'm going to make you an offer.
My offer is I'll give you the $300,000 as a loan,
but I want 20% of the business.
OK.
I'll consider it.
With one offer on the table, will Sabri Suby jump
at the opportunity to invest in the van life dream too?
Seb, once I went in and sat in there, I was... I was blown away.
Yeah. I know that I can help you blow up.
I've worked with lots of fit-out companies and have,
you know, with commercial fit-outs, and helped them.
I work with Australia's number one home builder.
I know this market.
I know what I can do for your business.
So my offer would be, for all of the money,
I would want a 5% royalty of top line revenue...
..20% of the business.
However, once you repay back my investment,
that equity asked will go down to 15%.
OK.
Although I really appreciate the offers and the opportunity for you guys to hear me out,
at this stage, I'm pretty fixed on the valuation.
I know what my business is worth and I'm going to have to say no.
I would...
So you're not going to even counter?
I think, a $300,000 investment
for a 5% stake in the business is very fair.
I don't get out of bed for 5%.
Then it would have to be more money.
VOICEOVER: Sebastian Langton is seeking $300,000 for 5% equity
in his van conversion business.
I don't get out of bed for 5%.
Then it would have to be more money.
With offers from Davie Fogarty and Sabri Suby,
will Seb and the Sharks come to an agreement?
I mean, it's the Shark Tank.
Surely you didn't think you would get a deal
at your exact value?
I want to stick as close as I can to that valuation.
Considering the revenues that we're going to be seeing
in the next few years,
$6 million seems a very fair valuation.
That's still your future revenue.
It's over six times your next year's forecasted profits,
which seems absurd.
We're going to do $4 million plus next year.
We're going to do seven the year after that.
We're going to do 10 the year after that.
Seb...
Yeah.
I'm out. Thanks.
OK. No worries.
I'm out.
Thank you. Cheers, guys. CATRIONA: Thanks, Seb.
Bye.
VOICEOVER: After refusing to budge on his business valuation,
Seb leaves the Tank short of his dream investment.
It was a little brutal in the Tank.
I mean, they've got a reputation for being Sharks.
I guess I can be a little stubborn,
but it wasn't really worth countering.
You know, when you're that far apart in a negotiation,
you're never going to come to a deal.
Madison Stefanis from Melbourne is next to face the Sharks.
She's hoping to grab their attention with a modern spin
on an old classic.
I'm 23 years old and I started the business just over
a year and a half ago.
I'm a little bit nervous about my numbers.
There's been a lot of, you know, curveballs and things to overcome,
but that's what makes it interesting.
Hi, Sharks.
I'm Madi, and I'm the 23-year-old founder
of reusable film camera company 35mm Co.
I'm from Melbourne and I'm seeking a $300,000 investment for 10% equity
in the company.
Depending on your age, this one might feel
a little bit nostalgic.
Ha-ha.
When I was 19 I listed a vintage film camera for sale
in a Facebook group for $50.
Much to my surprise, people started bidding in the comments
and the camera sold for $250.
So naturally I decided to start buying and selling
vintage film cameras during the pandemic
while I was studying at university.
I invested all of my savings,
$50,000, into developing a film camera of my own.
So in August of 2021, I launched
The Reloader reusable film camera to market.
Today we've sold over 40,000 units and we're stocked
in major Australian retailers The Iconic and Universal Store.
Well done. Mm.
Wow.
We're currently in conversation
with some of the biggest brick and mortar retailers in America,
and I need your help to ensure
that we can meet the expectations of these retail giants,
whilst also building a strong direct-to-consumer strategy
in a new market.
So, Sharks, who wants to see a camera?
I do! SHARKS: Yes.
Great pitch, Madi. That was great.
Thank you. Catriona Thanks, Madi..
Does anyone remember how to load a film camera?
Ah!
Yeah, yeah, yeah, I do. (LAUGHTER)
How do you open it up?
OK. Group selfie. Go for it.
I'm coming. Oh!
(CAMERA CLICKS) Yay! Yay!
Wow. OK.
So, Madi, that was a great pitch.
Can you run us through, like, how it differs
from other film cameras out there at the moment?
They're just very straightforward and easy to use, so it fills a gap
in the market left by disposable film cameras - one time use.
So the reload is reusable.
For your Gen-Z consumer, you know, you're 18 to 24s
who like snapping photos on a night out,
it's nice to get those memories back and pop them on Instagram.
But it's an actual film. So how does that work?
So you go to a film processing lab, hand over the roll of film,
and then you can get the photos back as either physical prints,
which we've got as examples,
or digital scans which are emailed to you.
Do they exist anymore, those film processing plants?
They do.
So there are labs everywhere now and so many labs do,
you know, one-hour turnaround time?
Yeah, what's the price of the individual unit?
So $99 per camera.
And lifetime revenue, we've done 3.6 million.
ALL: Whoa!
3.6 million?
(WHISTLES)
Over what period of time?
Just over a year and a half. Good for you. Wow.
What were your sales last year?
Last year we did 1.89 million.
Did you make any money on that?
So we sit at a 10% net profit.
What do you spend per month on ads
and what kind of return on ad spend do you get
in the Australian market?
So we spend around 20 grand a month and across Meta, Pinterest
and Google we have a blended ROAS of around nine.
Wow.
Ah. Mm.
You sell it for 99 direct to consumer.
What does it cost you to make and what do you sell it
to wholesale for?
So, landed, it costs $20 and we sell to wholesale for 42.
Madi, you're obviously doing great with sales.
Why are you here? Uh...
Why do you need this money?
We are chatting to some big retailers in the US
and I think that they're quite large wholesale accounts
and I really want to make sure
that we can accommodate their purchase orders.
And what's the ownership, Madi? Are you... 100%.
100% you? Yeah.
That's amazing. Wow, I am so impressed.
You yourself have been able to do these sales.
At 23. Extraordinary. Extraordinary. Yeah.
Wow. Thank you.
Yeah, look, let me...let me jump in on this.
Why have you only got 10% margins?
So...
Oh, that's a hard question.
VOICEOVER: Madison has captured the Sharks' attention
with a strong pitch
for her retro camera company, 35mm Co.
Why have you only got 10% margins?
So...
Can she reel them in?
Oh, that's a hard question.
So I launched the business in August of 2021, and I expected our stock
to last us till Christmas - it sold out in two weeks.
So I spent everything we had on inventory and it only
just lasted us through Christmas.
So I probably over-forecasted for Christmas 2022.
We ended up with a little bit too much stock left over
and that's kind of where it went.
And so with the product at the moment, is there anybody else
selling anything that's comparable to this product online?
Kodak - they sell a version that is...
It's not quite Gen-Z ready.
So there's no other Gen-Z brands or...
We've had a couple of copycats, but they don't really stick around.
They kind of always fizzle out. Mm-hm.
You remind me of me when I'm 23 years old,
but you actually have your shit together.
Like, Yeah, you are so much more put together
and have a clearer strategy.
You don't need to know everything.
Where I get really stuck with it is I think you need
employees, people that are more senior with you in finance.
You know, you had a little trouble with the answering
the finance question.
Inventory - you had a mistake with inventory.
And I think when you come to investors next, you might be able
to clearly communicate that product trajectory
and where you're going to take the brand a little bit better.
You're absolutely killing it, and I really do commend you on that.
But for now, unfortunately, I'm out.
Thank you, Davie.
Well, I am just blown away by you, Madi.
You are one of the stars to follow, that's for sure.
But I don't think you need investment.
I think you could continue to bootstrap this.
And other than I adore you, I'm out.
Thank you, Catriona.
Robert?
Um...
I do agree with what Cat and Davie said.
You really need a business around you more so than you need the money.
But I think that's where I can help you.
It took me 15 years bootstrapping,
which means with my own money, to build a $200 million business.
I then sold a piece of it
and the next two years got to $1 billion.
Wow.
I can think of 20 reasons why this isn't going to work.
But I can think of one really good reason
why I think it's going to work.
And it's you.
What some of my fellow Sharks are missing is you're really not
in the product business.
You're in the brand business.
I don't think people are just buying this because it's a camera.
I think they're buying it because you've created
an experience around it.
And I love those kind of businesses.
I think where I can help you is with guidance on the mistakes
not to make.
Yeah.
A lot of the retailers you want to get into,
I can help you get into.
I'll give you the 300,000 for..
..15%.
OK.
Before you decide,
I have a lot of experience taking an Australian brand into the US.
More than 50% of our sales at Showpo is in the US.
So I've done this before.
I can give you $300,000 at the 10% that you're asking for.
OK.
I'm really struggling on this one because what you have achieved
at such a young age is just incredible.
Right, but on the other end, looking at this from a Shark's point of view,
the type of offer that I would need to make you in order
for this to make sense for me would be doing you a disservice.
It would be 300,000
for 30% of the business.
Wow.
OK.
That's Sharky. Yeah.
How about this?
Jane and I will give you 300,000, but we want a little more equity.
We'll do it for 20%, straight equity.
Would you meet in the middle and do 15?
18.
Jane, you understand my customer.
You get it. Mm-hm.
And, Robert, you have tremendous connections in the US.
Can we meet at 17.5?
Let's do it! Done!
(CHEERING)
DAVIE: Great decision. Thank you so much!
Thank you. Congratulations. Oh, my gosh, it's great!
Amazing job. Yay! Thank you so much.
High five.
VOICEOVER: High fives all round.
Incredible. Well done. DAVIE: Go get 'em.
The 23-year-old entrepreneur has two Sharks by her side
and walks away with $300,000
in return for a 17.5% share of her business.
When you were her age, what would you have done to have somebody
with experience to guide you?
Oh! To save you from all the bad hires.
All the apps that don't actually work.
Oh, my God, I...
What next?
Hopefully I get to work with Robert and Jane closely and grow
this business and roll it out across the US and hopefully
even more new markets.
I think it'll be really, really amazing.
Jane, I'm very excited about that one. I'm so excited!
Argh!
Coming up...
Oh! DAVIE: Here we go, ladies.
..a man with a nifty solution to never losing your earbuds.
Hands-free guaranteed.
That's amazing.
And then later... Hit us.
..an all-American dream team
bring in a beachy deal.
Hoo-ee! Oh, we we've had a gross sales of 400,000.
Wow. Whoa.
In 30 days? Yes.
Next up is budding entrepreneur Nevada Smith from Queensland,
who's hoping to gain more than just money from the Tank.
I'm exceptionally nervous, but I'm here to give it a go.
I'm definitely creative and I have an innovating streak.
Where I lack is numbers and business.
"Never lose. NevaBuds."
OK, I bought a pair of ear pods the other day,
and within 24 hours I'd lost one of them.
It's a genuine problem. I've just bought three pairs of them.
I keep losing them.
Do you know how much revenue that AirPods does for Apple a year?
1.5 billion.
10 billion.
BOTH: No!
(COUGHS) Sorry. I'm a bit nervous.
G'day, Sharks.
My name is Nevada and my passion is earbuds.
When you join the names together, you get the NevaBuds.
I'm proposing 40% equity of my business
for $28,000.
In return, you're going to assist me
in the advertising and the marketing
and the mass production of the first 5,000 earphones.
Keep in mind, Sharks, I'm not after your money.
I'm here to make you money.
(CHUCKLES)
Because you never lose the NevaBuds.
Alright, boys. Let's go!
DAVIE: Here we go, ladies.
Oh! Hello, boys.
Is that Davie and Sabri? Oh, no, they're up here.
Never lose the NevaBuds.
Hands-free guaranteed.
Long flights overseas, the NevaBuds makes it a breeze!
When you finish using the buds,
you simply clip it and wear it.
It's as easy as that.
Never lose NevaBuds.
Why two models with no shirts?
Well, I wanted you guys to see the full aspect of the earphones
without any shirts on, so you can see it against the skin.
And I thought, "Hey, why not?"
For visual effect, we get these two handsome young men in here to give it a go.
No complaints from me at this stage.
Mate, you did awesome. Thank you very much.
Thanks, mate. You have a good one.
Thanks, bro.
I've got a set for you that I'd like to give you now as a gift.
Sure. Let's have a look.
Thank you.
Beautiful packaging. Thank you.
Thanks very much.
With my packaging, you just open it on the side. It's a magnet.
Of course. CATRIONA: Oh, nice.
I was so tired with old-fashioned earphones.
If you lose one of these, it costs you a lot of these.
So they're headphones that have a magnetic thing
to clip around so you can wear it?
Absolutely.
I think it's... I mean, if you have the ones that clip
and the ones that don't clip, aren't the ones that clip better?
I spend a lot of time with earphones in
and I've had all of them, and I really like this.
Tell us about your sales.
OK, So my sales are pretty modest. So...
Hit us.
I've sold 680 earphones.
680,000. No, I wish. Oh.
What does that translate in terms of gross sales?
OK, so $100 an earphone.
So I've made $68,000.
Over what period of time?
OK. (CHUCKLES) Here we go.
From 2019 to the current date.
I work two jobs, so I only sell
on any given Sunday at a local market
on the Gold Coast.
I'm not good with business and I'm not good with online sales,
say, via Facebook.
Nevada, it takes a lot of time to go
to a market to set up and to sell and to be on.
That's so much effort.
The thing about advertising on Facebook is that you can invest
a very small amount of money
and also the information on how to do that
is free on the internet,
that you can hop on YouTube and learn how to do it, so...
I have most certainly done this. Yeah.
I have 130,000 followers on Facebook.
Oh, 130,000. Yes.
Wow. So I most certainly am trying.
Yeah. It's not that I'm not trying.
How have you gotten those followers?
I did a competition at the very beginning when I did my prototype.
Yeah. Yeah.
And I went from 100 followers to about 10,000.
And it went viral. Yeah.
And it just kept growing.
And now I'm sitting at 130,000.
That's amazing.
That's good.
Like, how much sales have you done online?
I've only done approximately 50 sales over the last three or four years.
So the page is not converting into sales.
No, it's not. Hmm.
Hence one of the reasons why I'm here.
I don't have any computer understanding, especially
with advertising and marketing.
Yeah, I do lack that and I admit that.
No, we appreciate your honesty.
OK. What about retail?
I would absolutely love that.
However, keep in mind, I do earn 28 bucks an hour at my work.
Even if JB Hi-Fi asks for a massive stock,
I don't have that type of money.
And imagine me putting that into their stores
without the advertising behind it so people know what to go and get.
But you don't know - it's all theoretic.
Why not get the order, get a small order?
You're a very, very clever guy.
This is clever.
I don't know if it's commercially viable,
but it's clever.
Instead of give up or go, "I can't do it,"
I've hit an area that I can handle, which is the local markets.
And when you are selling face to face to those people,
like, your sales are more than I would have thought,
to give you credit.
So when you're doing your pitch, you're at the market,
you've got a buyer in front of you, why are they buying this?
The feedback I get is, "Fantastic idea.
"I'm so tired of losing and carrying my earphones. I love it."
I don't think so. I think it's you.
Oh, thank you.
No, seriously, you're great.
You're very, very engaging.
Mm.
What do you do to make a living?
So I've been working two jobs, and one job as a car park attendant.
And the other job, I work at a local Gold Coast hospital as a wardsman.
What's a Wardsman?
A wardsman is pretty much a gofer.
Go and do this and go and do that for the nurses, and anything
that may be needed within the hospital.
Yeah.
What does the product cost?
$25 per unit.
What do you sell it for?
I sell them for $100. How much are AirPods?
350.
350, 400. Whoa!
Nevada, how much have you invested in this business to date?
$100,000.
Wow.
Well done.
That's why I do two jobs. No, well done for that. I can see how much it means to you.
And that's a lot of work to put into that, so well done, mate.
Thank you.
You have the patent? Yes, absolutely. OK.
And pending it anywhere else in the world.
No. It's an Australian patent.
And how much went to R&D
and how much went to actually getting that patent?
$50,000 to manufacture the earphones.
$26,000 for the patent.
Australian patent.
And the rest was odds and ends for the logistics of the business.
Nevada,
at this point, as much as I like you and I admire the honesty,
it's not for me, I'm out.
I wish you the best. Thank you, sir.
Nevada, I think you've fallen into a common trap
and you put limitations on yourself.
You've told yourself you can't market on Facebook.
But unfortunately you haven't gone and done that work,
so I can't invest in the product.
I'm out.
I appreciate your time. Thank you, sir.
Nevada, I can see that fire that you will run through brick walls
to get to the outcome.
But this isn't a business that I see as being commercially viable.
So for that reason, I'm out.
Thank you for your time. I appreciate it.
Nevada, I think you're pretty clever to have come up
with something different.
The packaging looks great.
But the lack of online sales does worry me.
I'm sorry, but I'm out.
That's alright. I appreciate your time.
Hmm.
Hey, Nevada.
I actually think the product is good.
It solves a problem that I have losing earbuds all the time.
I think it's pretty cool.
I'm very impressed with you and your determination.
Uh.
I don't want your money. I want to make you money.
But...
..I'm a tech entrepreneur.
I do AI in the metaverse,
so this is not really in my wheelhouse.
But I am going to make you an offer.
$28,000 for 49% of your business.
Wow.
(TEARFULLY) I say, yes, alright.
You'll do it? Yeah!
JANE: Oh, my God! Whoo!
Thanks.
You alright, mate?
Bless you. I'm so grateful!
I'm going to make you a lot of money.
Man, I know it.
Because you never lose the NevaBuds. Whoo!
ROBERT: Whoo! Well done.
VOICEOVER: Nevada has sealed a $28,000 investment...
Thank you.
..in exchange for just under half of his entire business.
(TEARFULLY) Tears of joy.
I'm really grateful.
I'm sorry. It's been a journey.
Who will secure life changing-investment
with full episodes of Shark Tank Australia on 10 Play?
American imports
Regan and Nathan Merka
are next to dive into the Tank.
The husband and wife team are hoping to transform beach trips for parents
and kids everywhere.
I was tired of struggling to get all of my stuff down to the beach
with my two kids.
Let's go.
So we wanted to make an all-terrain vehicle
that we could pretty much go anywhere with our kids
and have an easier and more fun day out.
Hi, Sharks. I'm Regan. And I'm Nathan.
And I'm the mom creator of the Burleigh Wagon.
We're here today seeking a $450,000 investment
in exchange for 10% of our company.
Wow.
When we moved here seven years ago from America, we ended up
in a beautiful spot called Burleigh on the Gold Coast.
We loved the beaches, the parks, the outdoor lifestyle that
the coast had to offer.
Leaving the house with two kids under two was quite overwhelming.
(CHUCKLES)
Our daughter is on the autism spectrum
and we genuinely struggled
to leave the house on longer outings and keep her content.
We searched for an alternative on the market
and we couldn't find anything.
So we wanted to create something that helped us as parents
and was a bit more fun as well.
So we started by adding a built in esky.
Because every parent knows that snacks and cold drinks
are the keys to all success when leaving the house
with young kids.
When we moved here, there weren't a lot of safe options
for children to ride in.
So our wagon also has safety belts as well
and complies with the ACCC safety standards.
We also added a Bluetooth speaker.
With two charging ports so you can plug in all your mobile devices.
We can even plug in our USB fans
so you can angle the fan and chill out in your wagon.
Wow.
Oh, that's so cool.
We also added side storage racks for your bigger gear.
You name it, you can haul it in the wagon.
VOICEOVER: Can Regan and Nathan wheel the Sharks in
for a $450,000 investment for 10% equity of their business?
Great pitch, guys. I'm Davie.
Hi, Davie. Thank you. Thank you.
So, basically, you've created the most souped up,
pimped out beach wagon, is that right?
Yes.
So I was pushing an empty pram a lot of the time
with bags hanging off the back.
Our eldest is on the autism spectrum,
so she would get out, run in one direction,
our other child was in the other direction.
And I just... It was pretty chaotic.
Right. So we wanted to make something that they actually liked to ride in.
It is awesome.
Thank you. Thank you so much.
It is the best wagon I have ever seen.
I have five-year-old twins... Aww.
..and I have every wagon you can imagine.
Here in Australia, wagons are kind of a different thing
that hasn't been around.
You mean in Australia people don't use wagons?
We moved here in 2000... No, there's zero.
I must have 20 wagons in California.
So it has been hard to kind of educate
as to why this will make a massive difference.
VOICEOVER: With fellow North American import Robert Herjavec on the bandwagon,
he wants to find out more about Regan and Nathan's financials.
How much is it?
It retails for 499 in Australia. Ooh!
How much does it cost you to make?
Our manufacturing cost is 225.
Nathan, that's a pretty high cost. Yeah.
It does take 14 separate factories to make a Burleigh Wagon and its accessories.
Wow. Whoa.
That is a recipe for something breaking down
in that supply chain somewhere along the way.
I'm going to assume you sell it retail.
Just direct to consumer at the moment. Yes.
How much does it cost to ship?
Shipping is... It's a big box size.
If it leaves Australia, it's about $1,000.
$1,000?
I'm going to assume you sell it retail.
How much is the cost to ship?
If it leaves Australia, it's about $1,000.
$1,000?
Let's talk about within Australia, guys.
Within Australia, we offer free shipping.
How much does it cost you?
My average is about 60 to 65.
Whoa.
VOICEOVER: With a high shipping cost attached
to their direct-to-consumer wagon,
e-commerce giant Davie Fogarty is interested
to see if Regan and Nathan's modest margin can be increased.
So you're making about $110 a unit?
Correct.
What do you think you'll be able to get the cost of the product down to?
The most expensive component is the main body.
Right now, just the main body alone, USD is $50.
We're working with our factory right now. They can get that in half.
OK.
So can we can we talk about similar products like this in the market?
Oh, for sure. For sure.
There are cheaper versions.
So one of the points of difference of ours is, in 2019,
the ACCC changed the regulations in Australia.
They said anything that transports children in an upright position
must meet the safety standards of a stroller.
So a lot of people still do use the Kmart one or the folding ones.
But on the box of all of those, it'll say, "Not intended for children."
NOT intended for children?
When we were designing ours, Regan wanted something
that could transport the children safely and carry all the gear.
There weren't any that had safety belts.
And especially for our two kids in particular.
I can see how great the product is, but...
..you're asking a $450,000 for 10% of the business.
So that makes it a $4.5 million valuation.
That's a big number.
So I'd love to hear about your sales.
So, lifetime sales, 2.8 million.
Oh, great.
30 days ago we did launch in the US market
and we've had gross sales of 400,000.
Wow. Whoa.
In 30 days? Yes. Really excited.
What's the pricepoint in the US?
750 AUD.
Nice.
The margins in the US market are much better.
And so what do you guys plan to do with the investment
if you got it today?
So it's to get ahead in stock.
It's a huge Christmas/summer gift and we always run out.
VOICEOVER: Designed with safety in mind
and meeting Australian safety standards,
the sales of the Burleigh Wagon have blown the Sharks
out of the water.
Have Regan and Nathan done enough to secure themselves a deal?
I've got three children. I get it.
So I will be a customer.
But my skill set doesn't lie in streamlining
that whole manufacturing process.
So for that reason, I'm out.
Thank you. Thank you.
JANE: Regan... (SIGHS)
..honestly, I've been sitting Here being like, "Oh, it's so great."
It's so great. But what is... It's just...
There's just so many operational challenges
that this business needs to overcome to be able to scale.
I'm really sorry, but I'm out.
That's OK. Thank you so much.
I am a tech entrepreneur and this is not really my area
of expertise, but commend you for everything that you've done.
But unfortunately...
..I'm out. Thank you so much.
Thank you.
With three Sharks out,
will self-proclaimed wagon lover Robert Herjavec
support Regan and Nathan
to bring this American staple Down Under?
Regan, I... Um...
I'm a highly creative guy, but I'm struggling.
How would I make a deal without taking ALL your equity?
I will definitely be a customer.
As an investor, I'm out.
Thank you. Thank you, Robert. Thank you.
And then there was one. Oh!
(GROANS)
So...
..you have kind of cornered us with the $450,000.
That's a substantial amount of money.
But I do believe in your growth,
and I do believe that I can help you in all of the areas
that you've just talked about.
So...
..I'm going to have to make an offer.
Oh.
Whoo!
I'll give you the $450,000...
..for 30%.
But I also just want a $4 royalty per unit...
..until the money is paid back.
Can we take a second to chat? Would that be OK?
Sure. Of course. Yeah.
Thank you.
He... He would be amazing.
He's the Shark that I think would be able to expand things.
I do want to leave here with a deal with him.
It's just at that valuation that would take us down to...
..I think it's under two million.
So it's a low valuation.
Nathan And Regan, time kills deals.
So if a deal's been made, do it in the shortest amount of time.
Sorry, guys. Sorry. (LAUGHS)
What if he says no? Yeah.
Then we walk.
We would have to.
OK.
Davie, thank you so much for your offer.
But We would like to counter you at 25.
What about the royalty rate? For the long term game. Yeah.
If we have to pay a royalty to get your money back, that's fine. 100%.
If you come to a $10 royalty...
I'll do the 25%.
Until the 450,000 is paid back?
Correct.
At the end of the day, this is Regan's decision to make.
You have a deal.
(CHEERING AND APPLAUSE)
Great.
I can't wait to work with you. Same. Thank you so much.
Seriously. We've got a lot to do, though.
We do. We have a lot of work to do.
But I think... I'll clear my calendar next week, we'll get started.
OK, alright.
VOICEOVER: Regan and Nathan have done it.
We'll fly around. We'll catch up. We'll have a wine in Adelaide.
Great pitch. I'll see you guys later.
Thank you so much. Cheers.
They've managed to reel in the youngest of the Sharks
and land themselves a deal
of $450,000 for 25% equity.
Oh! We did good.
Yeah. Yeah.
That was tough!
It was very stressful.
But at the end of it, we're super excited.
Davie's the perfect partner for us.
It was important to us to bring a product like this on the market.
It helped our family tremendously, especially with our little daughter.
So...
Yeah, it's definitely worth celebrating.
Captions by Red Bee Media