Shark Tank US | Collars & Co's Product Is A HUGE Success With The Sharks

first in the tank is a way to be comfortable and still look [Music] professional hi sharks I'm Justin bear from Bethesda Maryland and today I'm seeking $300,000 for 4% of my Innovative apparel company collars and Co 4% sharks welcome to business casual 101 let's begin so you know this look where you're wearing a dress shirt under a sweater it's pretty much the go-to look for every single guy that works in an office around the world I lived in New York for 12 years this is what's called the Midtown uniform problem is I hated wearing a long sleeve dress shirt under a sweater it was always hot and uncomfortable and Scratchy I don't have to spend the time buttoning up my shirt in the morning and then sometimes you would also get what's called floppy collar where the collar just flops down halfway through the day but worst of all was putting on a dress shirt under a sweater it is so annoying the sleeves always get bunched up my sleeve's like right up there by my elbow sharks I knew there had to be a better way which is why I invented the dress collar Polo it's a stretchy comfortable golf shirt except the top has a firm collar on it so it gives you that exact same look of a dress shirt but it's really just a comfortable Polo sharks guys are wearing this with a tie under a blazer with a sweater and even for just a slightly more elevated casual look with a polo sharks we are helping guys look stylish and stay comfortable and we've created a new category of shirt help me create the next great worldwide brand thank you in front of you we actually have four different collar Styles it's a nice stretchy material yeah it's stretchy breathable totally breathable quite an interesting idea did you say 4% 4 4% yeah 4% okay so sales so far we started last year we've sold so far 92,000 shirts for $5.4 million there you go wow direct to consumer or all direct to Consumer all online what was your profit margin on that 20% net I got to tell you um wow that's impressive yeah so this is a really really well-made product thank you um but there's two things I ha hate I hate with all my heart this look I've always hated that Midtown look it's just not my style I really hate that look another thing is I hate offers at 4% for 300,000 I'm out that answers that all right we've had other shirt companies on Shark Tank however of all the ones in 14 years you've had the fastest growth to 5 million I always consider that a hurdle getting to five that's a real business so you must have some executional skills in this story that others don't have you're right Kevin the the secret is in our marketing it's in our funnel we've mastered the funnel I've been doing this for 20 years doing what for 20 years business internet marketing I had a business be one of the first check-in applications for events let me jump in I mean while these are super nice I think what you're doing is fantastic I don't think it's the right investment for me so I wish you good luck and I will purchase as gifts but I'm out thank you thank you Justin I'm quite shocked because I'm in I'm in this business I own a company called localized and we basically take big Brands Global all over the world this type of product specifically across Asia yeah we're seeing growth but we're not seeing it at the stage that you've just taken this business to what does it cost to make cost to make landed $15 we sell it anywhere from 65 to 75 okay I've never bited a shirt deal cuz oh shirts such a total commodity but you have numbers to Justified first time in in 14 years I'm going to make an offer to a shirt deal I look at it and say 300,000 4% doesn't even get me out of bed to put a shirt on in the first place no I'll do it for 10% no way Kevin you're decisive good if it was if this was an old line private Equity deal Old Slow growth cash flow this is a fat one of the fastest growing DDC brands in the country we're going at 28% a month when you hit when you hit that wall all the reason I'm making the offer do you have other invest justtin Justin I have no other invest to make the only yeah you've completely dismissed an offer that I thought was pretty good no way what sort of equity are you talking about then you came in with 300,000 for 4% you've dismissed as if Mr Wonderful wasn't even in the room that's at 10 that's a $3 million valuation this thing I pushed it for 75 million it's not worth 72 million it's worth 20 what because this thing what is your free what is it 20% we made a million what do you need inventory marketing and we need to build a team if we're going to go to $50 million we need to have some key players in place how are you going to get the money for inventory so are you looking to raise or are you looking to find we're going to need a line of credit also but the other thing that I'm looking for is a mentor and somebody to help me grow this thing really to the next level this is you know what I'll Mentor you I'll Mentor you take the 10% offer this the next the next great brand I don't know whether you know this Market as well as I do this is beyond brutal and the reason why this this is so brutal is because fashion shifts and moves at a literally rapid rate and you are up here at the moment and you think you've got the dream ticket coming into Shark Tank the reality is in 6 to 12 months this could go out of fashion here's a reality Peter I don't think it's going out of fashion Peter Peter here's a reality here's a reality we're going into a recession people aren't buying shirts when they can't pay their mortgage correct right then he starts bringing in more he has has a lot of skewes he starts bringing in more you know some things don't get sold he doesn't have a second door like Burlington or any place to get rid of this and now his inventory starts to chew into his profits and then he realizes oh wait a minute I don't know as much as I thought but D styles that when I got in the business when I got in the business Levis was doing 18 billion they're doing four now everything goes out of stock Justin I'm about to make you an offer listen you need to cut out cost I have that infrastructure and I could take this product and sell it all over the world so I'm going to make you an offer but my offer is also at 10% for $300,000 you must be kid honestly why do you even come you knew you were going to do that on hold on hold on 3 million valuation you were going to go from four to what five Justin what do you mean well why did you just go down to two he's out Justin so look $300,000 is obviously not enough so you already have in mind where you're going to go get your additional capital I mean we need we need probably $700,000 line of credit all right that's easy so if I went in with Peter so Peter so if you hand a global domestic and I don't mind putting up and I'm sure Peter W either um a line of credit at 89 whatever the interest rate should be 89 yeah cuz rates are going up for a lot of credit a tough negotiator you are line of credit Mark but we have inventory we have assets hard assets I know you guys give out line of credits to like apps and stuff there's nothing tangible we you when he said me and Peter together which they both have shared with huge background you make us an offer we're wasting time here no everything they say to you like no so what you do you're valuing you're really seeing that you get a chance no we're seeing that and we're seeing that there's going to be 10 more people through the door in another minute what's your offer so Justin I'll include the $700,000 line of credit but 300,000 cash what is the equity you're willing to offer us two sharks are out Kevin and Peter have each offered $300,000 for 10% of Justin's Shirt Company collar and Co Mark is willing to go in with Peter and has offered an additional $700,000 line of credit but he wants a bigger chunk of equity than the 4% justtin came in offering and has asked him to make his best and final offer what is the equity you're willing to offer us 5% [Music] wow but look I think 10% is too much I just think 10% is too much you say that J let me clean something up you make your decision making easier 10% is too much I'm out okay yeah you're you're not valuing this Justin I know the value of this business and you've done really well to get a 10% offer so you're saying it's worth5 no the incremental wait if we're going to do first all we're going to do 10 million in sales this year Val the thing is Justin the problem is listen this is why in a part not going to work I know but you've got to have you have two ears for a reason right and I don't think you're listening and that's not good that's not a good sign for an entrepreneur no no you do have to listen you can dismiss it and you can walk out of here that's absolutely fine but we should be allowed to voice our opinion and you're not allowing me to voice mine cuz you keep talking over me no I hear which lets me know that you're not listening you have everything right now in the palm of your hands and for 6% that's all that you're talking about 6% have you have no idea what the scale of the opportunity is and what we're going to add and the value to that you're discounting it I no I'm not discounting what you guys bring and that's why I'm here but we're going to do 10 million in sales what if we take with the two of them you could actually be doing 80 million so you're talking to guys who've been in the business 30 years we see deals like this all day long if either one of us don't do this deal our lives are not going to change we're still going to be rich Justin you're asking us to go to work for you there's no amount you could pay to hire the two of us to Mentor you and help you him globally I couldn't even hire him if you're valuing your company at 20 million and 10% you want to give you a discount to three Justin Justin I have a feeling you're not going to get a deal I'm out too Justin would you do it for seven no I think we're all out right we're all out 7% we're out Justin I hate to say it but I've got a feeling that one day you're going to regret this moment he still has a chance to say yes so here it is $300,000 in equity for 10% I'll put up a line of credit of $700,000 we'll do a market rate interest right but it's first dollar in meaning I get paid the minute you get paid by your [Music] customer and you're in it and I'm in it yes or no let's do it there you go good job guys lucky wow it's going to be the best day you ever again congrats man I'm proud done an amazing deal thanks uhhuh well done for not walking away I knew there was a reason I didn't like guys that wore this shirt but congratulations no congratulations I'm glad you able to start listening thank you so much this was great woo he reminded me of me I'm not going to lie because when you're young you don't know what you don't know I did a lot more talking than listening it's going to be interesting to see how he works with us though we'll find out yeah it means a ton that Mark cubin and Peter Jones are mentors now I mean having them in my corner is just going to kind of free me up to to think bigger than I ever thought before and uh hopefully one day I'll be sitting next to them in one of the shark chairs

Channel: Sony Pictures Television

Views: 155,160

Keywords: Shark Tank, Shark Tank US, Shark Tank USA, Shark Tank America, American Shark Tank, Shark Tank Pitches, Shark Tank bad pitches, Shark Tank Best Pitches, Shark Tank Covid, Shark Tank Season 12, Mark, Blake Mycoskie, Kevin, Lori, Daymond, mark shark tank, kevin shark tank, lori shark tank, daymond shark tank, mr wonderful, shark tank moments, shark tank deals, shark tank pitch, shark tank best pitch, kevin oleary, mark cuban, lori greiner, Barbara Corcoran

Id: j8iHN85tjc0

Length: 12min 15sec (735 seconds)

Published: Tue May 14 2024