Shark Tank US | Get Ready For Easter With These Products

first into the tank is a business that hopes to be a popular holiday tradition [Music] I love those pants he looks like you in that bunny outfit hi sharks my name is Scott howdershell well you can call me the Easter Bunny and I'm Curtis McGill we are from Amarillo Texas and our product is the egg amazing egg decorator we are here seeking 350 thousand dollars in exchange for seven percent equity in our company since we were kiddos little baby bunnies moms and dads and grandmas and grandpas have been using the same old traditional methods to decorate Easter eggs it's so smelly and messy that some families don't even want to bother well sharks we have an excellent alternative and it's no-yo no yo say goodbye to smelly vinegar and messy dies the egg mazing egg decorator is the new fun no mess solution to decorate Easter eggs we brought along our experts and my kiddos they're going to show you how it works just place a hard-boiled egg in the opening and turn on your egg mazing grab a colorful marker and let's let the fun begin you just place the tip of the marker to the spinning egg and start making your own designs creative and it really is all the fun without the mess wow that's great so sharks who wants to join us and help us change the way families decorate their Easter eggs it's amazing job yes cute kids I must say I agree give me a blue set of ears give me the pink what's wrong with pink no because I want to be blue I'm a boy Better In Pink fabulous good job guys [Music] so tell us how you dreamed this up it was Easter 2015 decorating in the kitchen making a mess with all the vinegar and all the dyes that's when I knew there had to be a better way and I rounded up a hot glue stick an electric I'm having a hard time with the talking rabbit I gotta tell you a hot glue stick and stuck it to the top of the egg and stuck the other end of that hot glue stick in the electric screwdriver and just balanced it on the spoon and I had Curtis my bestie here go round up some markers and I pulled the trigger on it and started spinning touch the marker to it and that's when I knew I had a better mouse trap the problem with this is it's very seasonal I'm going to think about this once a year when I'm thinking about coloring eggs and then I'm going to forget about it for the rest of time how are we going to make any money selling this only once a year Well we uh we asked ourselves that same question my first of uh of this last year we went down the journey two years of development and we got a container of them made in China delivered to his insurance office we unloaded all 10 000 of them ourselves we didn't have anything sold on March 1st and looked at each other and said that's a lot of eggs a whole lot of eggs we proceeded to sell them it took us 23 days how did you do it we joined Astra which is a small American toy retailer Association sent out an email blast they began to pick it up people that had ordered two cases called back and ordered four they ordered eight okay what are your sales it was 150 000 how much do you sell it for and what are your costs back then it was 8.28 so you basically you made no money no they made about 50 Grand they didn't say what he sold it for well what is one cell phone costs you eight first run we sold for 19.99 we are now 24.99 you saw that it was really successful at 19. sold them all out but now you're taking it right exactly stopping the price well it was actually hard not a lot of the retailers sold them for more but on Amazon the average retail price was 59. I'm sorry people were people getting 59. one went on eBay for 120 yeah they began to go up as the demand went up if people give you pre-orders for the next Easter the guys who couldn't get their hands on it right now we have 1.2 million in purchase orders at what price 4.71 cents landed what are you wholesaling for 12.50 12.50 are these a one-way order in other words in the toy industry they are one-way order I'm starting to like you what do you mean by one way or they can't return it they can't return it so understand that those POs only half of those are for the egg wait say that again oh I'm sorry Mr product oh you haven't told us about another product our sister product is the tremendous ornament decorator we love puns the tremendous ornament decorator it's a sister product to the egg but that we have no proof of concept in terms of sales we have 680 000 worth of sales is that a one-way sale one-way purchase order absolutely Curtis can I see a Christmas ornament is this going to be your first season with the Christmas this is our first season that that just got here from our manufacturer but you don't really know what the actual cell to is going to be on those yet this one actually sell through yet right what do you charge for this thirty dollars comes with eight markers and three ornaments I get the Easter thing it's very intuitive to understand what you're doing you're decorating an egg which is a long-term tradition there is no tradition to decorate your own Christmas or let me speak to it I think there's a lot of risk on the ornaments and the price is high people spend a lot more money at Christmas than they do on the Easter the issue with your deal is the size cash you're asking for 350 000 big number okay but I'm very very creative shark as you know I'm gonna make you an offer I'll give you fifty thousand dollars for the equity component of my deal I want thirty three percent of the company I want to be the third guy with the I'll wear the years I'll wear the years okay and then the 300 000 is a loan okay I'm willing to do that at 13 13. absolutely that's exactly you know I'd like to see your offer Robert we appreciate that you appreciate it it's the only offer you've done look I've got three kids and the only thing that I want for them is to not not have to see their parents eat the crust off the peanut butter and jelly sandwiches like I had to when I was a kid we've worked our whole lives to get where we are so okay I'll drop my interest rate to 11 I want to uh wholeheartedly disagree with you uh about your Christmas idea I think your Christmas idea really is not going to fly I think it's very hard looking at that box to get the idea of the spinning wheel in the middle which is so easy to see here be careful okay here's what I'm gonna do I'll give you the 350 000 for 15 but I'll only give half of it in cash and half in the credit line what is the interest rate on the debt Barbara whatever is the cheapest rate I get for my bank whatever's going I'll give it right to you I'm not making five percent on something like this and if you need more money than that no problem as long as you have the orders I don't mind funding anything especially when they can't return them we appreciate the offer okay so I'm willing to be flexible but I want to make some money too I'm I'm with you okay well look I'll do the um 300 000 debt at seven percent and I'll give you fifty thousand for twenty percent of the company there's only one Mr Wonder woman I'm going to queue an offer I would give you a hundred thousand and I'll ask for twelve and a half percent the rest is a line of credit what do you charge that will be seven percent as my interest rate and by the way I came here in my heart uh needing and not wanting to go any higher than a 10 Equity I have worked my whole life in carpentry and laying tile uh my bunny knees are worn out this is my capturing lightning in a bottle and I'm I'm ready to ride this lightning the whole way you definitely have lightning in a spinning bottle and the Easter egg thing is taking off but I don't know if I see an entire company around it good luck thank you I'm gonna change my offer I'll give you the 350 000 at the lowest interest rate I can get from my bank honest to God don't know what that is but they love me because I keep a lot of cash there I'll give you the credit line for 10 of the business guys I'm changing my offer 350 000 at 10 equity and a two dollar royalty until I get paid back but I'm gonna give one dollar did I hear royalty to any charity of your choice some type of children's organization they mean it's a charity I've got kids and and then that way something good is going to helping kids and I'm getting the guarantee because it is seasonal rich you can't give up two dollars from every unit that's crazy that's that is a little difficult you only make 750 a unit I actually think my offer is better guys I think she'll do a better job for this because she's more product driven for the for these kinds of things right so this isn't a business for me I'm out you can't give up money from each unit I mean that's you won't be in business the following year I love to go fast and furious and get it out everywhere in the market so that if you sell literally hundreds of thousands of these fast you have plenty of margin this is really nothing when you think about it I don't think you can afford two dollars I really don't I think that's too much you can't do that it's too much it sounds great and the money's going to charity and I love that idea but when you're starting out a business to give up two dollars out of a five dollar cost you don't want to walk into that I truly believe I have the best offer on the table that meets your needs you have to really think about what are your goals but I have to say I just really need an answer now because I feel like you're just using me as a backboard which you've got three offers now time to make a decision [Music] Lori we would love to make a deal with you good congratulations [Music] means the world to me my best friend just just did what he's been capable of all his life [Music] thank you hey boys and girls I'm Jared Whetstone from St Augustine Florida and I'm here today with the Atlantic candy company seeking one million dollars in exchange in exchange for 10 percent of my company sharks we're taking toys to a place that they've never gone before the candy aisle basically these are Hollow chocolate articles that contain a surprise toy inside they are insanely popular there's over 2 billion of these sold a year best part about this product is you don't know what you're gonna get it's like your birthday every time you open one sadly these types of products have been banned in the United States since the 1930s until recently but don't worry sharks this is America the land of innovation and my father overcame this ban I'm a third generation chocolatier [Music] you're good good job I'm a third generation chocolatier my father invented the first safe and legal solution for this type of product specifically designed for the US market we are seeking a shark to partner with so that we can own this product category in the United States so which one of these sharks wants to make a lot of money take a big old bite out of the U.S candy industry can we try of course you're giving samples right I assume it comes in lots of flavors it does the one you're about to taste is uh has a tin of orange hope you don't mind I don't know I'm gonna grab that I like chocolate these are special Shark Tank Edition oh these are cool oh look what came in mind there's six sharks to collect I got a cabin I got a robber I got a Damon I got a lorry this is just the to symbolize the type of toy why was it illegal to put a toy in the chocolate okay back in the 1930s a company in the US thought it was a good idea to put metal toys in solid milk chocolate bars for kids to find yeah right and kids were cracking their teeth and choking on them right well how does Kinder Egg get around it okay they're legal in every other country in the world right except the United States are you saying kinder eggs are in sold in the States they're not in Germany they're in they're in every other country in the world except the United States why is that good news why are we going to get around the FDA when Kinder Eggs the number one player can okay my father invented and patented that capsule you're holding in your hand that Captain look at it that Ridge design complies with the FDA the FDA bans non-nutritive items from being embedded in food this capsule design is not embedded as you notice when you unwrapped it the two chocolate halves right came together but it never actually touched okay so Jared I'd say that's all correct and it's an exciting opportunity ahead I give you a million dollars for 10 imputing a 10 million dollar valuation and your sales today are last year they were two and a half million dollars yeah where are you selling it's important to note that we have been contract manufacturers for example this Australian company they approached my father and licensed his patented capsule design to manufacture these types of products for sale in the US with the 10-year manufacturing agreement with the Australian company terminated December 31st of last year we are free to manufacture this type of product but here's the deal there's only two beers of patent life left on this whoa so now you're looking for Capital to help you go after this Market Yes except there'll be lots of competition in 24 months right that's why speed that's why speed to Market's important so when I think about it as an investor holiday is a big time for chocolates Easter Hanukkah Christmas those are the times of which there's only one or two cycles left of that why would anybody value this at 10 million if they got 18 months to cash in on it it is unusual so Jared the two and a half million you did last year the substantial part of that was from this one licensee yes but they're gone now they're gone so you won't do two and a half million this year and your patent runs out in about 20 months absolutely so we have a media production capacity of 18 million units a year out of factory do you own a factory yes we've got machines on order this time next year we're planning to have over 100 million units of capacity why are you expanding we believe in this product category and we're we're going to compete with this product category okay so how much do you expect to do in sales 3.3 million in sales this year but Jared how are you increasing when you lost some of yourself we have existing we still have existing contract manufacturing with other companies are you only talking about this type of product or you're you're giving us the entire number that your company does from so our Niche is that we have been known throughout the industry as manufacturers of complex chocolate articles okay let me explain let me help Jared let me help would you want to get up there and actually get Atlantic handy is a contract manufacturer right of chocolate items your projections to do 3.3 million dollars in sales as a contract manufacturer now you have this opportunity over here so if you were looking for Capital and shark expertise to rush it to Market because to exploit the category Jared I see I see what you're doing here and it's admirable the problem for me as an investor is you have to rush I don't know the contract manufacturing business plus going out and selling to the retailers I'd have to learn and in a rush scenario like this I don't think it'd be a good fit so for those Reasons I'm out thank you Mark so here's how I feel about it um my biggest challenge is that you never service retail and it's a totally different game when you're dealing with retailers you are basically at their Mercy they're going to test Goods then you're going to have to be compliant then they're going to also leverage you against other people and see who else can come up with a better price and because you don't have years of that experience thank you you know you have a patent that's about to run out so anybody else can do it I'm concerned about the fact that you only have a handful of months left I'm out thank you lead time is a retail are really long you actually don't have 20 months to order for Christmas you're probably ordering when Damon a year and a maybe a year and a half earlier you need a sales force you need a game plan I'm out I understand the value of a company like yours if it already had a distribution system in other words has Salesforce had relationships would be somewhere between five and seven times after tax cash so you're pricing it right now with all the risk of building that infrastructure it's not in place yet at a very high multiple I'm sorry Jared I I have no interest in going on the journey with you I'm out I understand thank you this is my first pitch it's probably my biggest you know this is um you bounce back thank you guys good luck Jared thanks guys we're rooting for you it's a lot different when you're saying it in your head versus you only got the lights camera action on you I just got I just got completely knocked off course like went in there with a game plan and it all just went to pieces it's a disaster [Music] hi sharks I'm Trina barcorres I'm from Southern California and my company is hoppy Paws I'm here today seeking fifty thousand dollars for 10 stake in my company I've created Happy Paws stamping kits as a safe simple and inexpensive way to Delight children everywhere with proof of a visit by Santa and his reindeer and many many more so sharks let's get you into the holiday spirit but the Night Before Christmas kids are snuggled in bed time to prep for Saint Nick I have nothing to dread I Grint of myself like a jolly old elf just add water and stamp buy them right off the shelves in the morning I'll wake to squeals of delight happy Christmas to all and to all a good night now which one of you sharks wants to share my family tradition and hop all the way to the bank with me what's the product it's an actually stamping kit isn't this what we used to see for Easter for is this the same brand that's been around for years no but I have some samples for painting eggs you mean it has a similar look to the egg painting kit doesn't it it has a similar feel there you go Robert thank you here you go Laurie Mr wonderful thank you you're welcome so my standing kits are comprised as you can see of a box a thermoformed tray thank you very much powder that's mission of water simply dip the stamp into the tray and stamp away what is it flour no it's actually a super secret powder it's a food grade product do I just wash it off when I'm done with it it's actually biodegradable so carpets you can do it on carpeting and vacuum it up and so it's a seasonal product you sell it in once and then it's done absolutely not I so we make a little Trail it goes to the child's Easter basket I got it what's the next one this is the Tooth Fairy children lose 20 teeth so you're stretching on that one what's your best seller my best seller um what you're holding right there in your hand that box came off the price so you're just starting to sell all this now this is a startup okay so we can't really ask you what's the most popular because you're just finding out correct 90 days ago I went to San Diego with an idea and a very roughly 90. this all started 90 days ago 90 days ago so seriously yes I came up with this idea 20 years ago when my kids were little I would go through this hour-long process at Night Before Easter so people would come by in the morning because they'd have the trails going up my walk and they'd say where did you get that I want that for my kids well what's really interesting is though in that fast of time you created your packaging you created your product I mean you did a display I've been on my own since I was 16 years old my mother had me emancipated she walked into a court of law and said I don't want to be responsible for this little girl any longer I went to Taco Bell I made burritos for a year and a half till I graduated from high school I moved to Southern California with 300 in my car and here I am today I've sold homes for four million dollars I'm an interior designer and I'm very successful at everything that I do I know this is a good idea if you're so successful all those things how do you even have time because I quit all of that to do this whoa no you did not yes I believe I believe that well what are you going to sell this for okay right now on my first production run it cost me two dollars to make and the reason I want the fifty thousand dollars is because I need to increase my production to 50 000 units so I can get it down to under what are you going to sell it oh you don't want to do that you don't want to go out and spend all your money on inventory before you have something unless you're willing to sell door to door or unless you have a purchase order we haven't heard about farming at Michael's right now I'm going for Walgreens Walmart what do they tell you what do they tell me I haven't they haven't told me anything that box that you're holding in your hand yeah they picked that up at five o'clock yesterday Trina you're gonna pay two dollars to make it what are you gonna sell it for 7.99 Trina just a serious question because I am Mr Wonderful and I care about Barbara's money okay why do you think it's worth five hundred thousand dollars because you're telling me I get ten percent for fifty thousand including a half a million dollar value you sold nothing I don't want her to put her money to waste speak for yourself you're buying this I swear you're buying this so why is it worth half a million let me explain something to you Mr Wonderful I have a hundred and five thousand dollars invested in this company in 90 days in 90 days in why um all of the graphic design the tooling for the trays the tooling the dies to cut the foam all of the prints it's our machine I'll give you credit I mean you are a machine the trailer itself all of it my trade show booth this is my oh this is wow this is my trade show booth Trina Trina look you are not allowed to call yourself Trina anymore I have re-christed you the Beast because you are a beast girl and I love it and I wish my sales people were as focused and as driven and as excited about their and it's crazy I'm a go-getter people love this here's here's what I love about your pitch you can't imagine how many people we all meet around the country say I want to get on Shark Tank one day and I say that why don't you why don't you apply you know what they say oh I'm not ready I'm gonna give myself a couple of years I'm gonna get ready how often does that happen to you all the time all the time and here you are you didn't even have anything 90 days ago and bang here you are you know it's a good idea so and I know people that's the good part that's the good part here's the bad part no you don't know if people are going to buy it you're you're confusing I don't mean this in a bad way a family tradition that your kids like with a General market my opinion is that my kids wouldn't get super excited with Prince on the ground they'd say daddy why is the dirty um there are no sales today correct my opinion my opinion is kids aren't going to like it that's simply my opinion I might be wrong for that reason I'm out okay thank you Robert you know Trina I I always say I can tell instantly if it's a hero or a zero and I think you're a hero I mean what you've done is amazing my concern is um to Mark's point about the similarity to the other product we were talking about I know what you're referring to Lori I wish you could see an Easter egg decorating kit it may ring a bell for you but this is completely different I have my trademark pending I have my patent pending I've done my homework in 90 days I don't sleep okay I'm a creative mind on crap I believe then these two products that I have for Halloween they glow in the dark at night I think that's very clever My Little Leprechaun is going to come with a little green vial of dye that you pour in the toilet so you know that the leprechaun was there yes you've never heard that I'm Irish I never heard of it you know it's really funny because you fascinate me I mean I'm sitting here a little bit mesmerized by that I don't know I do everything to make them happy and I'm telling you people come to me and they say where can I get this girl let me help you let me help you I am willing to do this because I think I should have a woman with thorns in my portfolio there's no question about it let me help you I am willing to do this because I think I should have a woman with horns in my portfolio I'm going to put the first five thousand dollars up okay against the fifty thousand dollar ask I will partner with any other shark smash that I'll do another five you and I each give another 5 000.50 of the company fifty percent of the company I put a 49.9 into this in 90 days she's already got a hundred thousand dollars into it I'm up for five thousand that's all I'm giving enough is the Airstream part of the business yes it is for cash it's paid for everything in my business is paid for in cash I don't pay myself I have no debt I have no other investors I own 100 of money could you consider the possibility of limiting your skus you have eight skus here I believe there are three that are good sellers okay Easter Bunny Santa's reindeer and Tooth Fairy to start off with okay because it would change the size of your display which would be an enormous advantage in some of the big box stores right I have my entire life done exactly what you're doing for my kids I would take a spray bottle okay I would spray the floor two little dots that didn't look as good as this and sprinkle it can I tell you I had the advantage of watching my son respond to it and now my eight-year-old daughter they go crazy they follow the tracks they can't believe it's like proof that Santa Claus exists I totally know this thing works and you've done it so much better so I want 50 of your business four hundred thousand dollars for bam so basically you're both put in the same amount of money I like to be on equal footing and I'm going to tell you why Okay because I'm going to work just as hard as you would you consider if I do get large purchase orders helping me find a line of credit oh no problem I'll give you the line of credit Okay purchase orders I love to fund would you consider 49 51 percent [Music] as long as you consider that if you get tired of this that you think of your next five ideas because you're a little machine of ideas I have two more you're the Beast you're the Beast and all those ideas are our ideas going forward equal Partners on those new ideas you got it I love it you get 51 now I get 49 I give you a hundred thousand dollars but on all future ideas with 50 50. [Music] I know she'll give me my 10 for free bye guys thank you congratulations [Music]

Channel: Sony Pictures Television

Views: 541,514

Keywords: Sony, Sony Pictures Television, 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

Id: SVEfGH1xJuE

Length: 29min 51sec (1791 seconds)

Published: Tue Apr 04 2023