Shark Tank US | Kendra Scott And Daymond John Go Head To Head For Create a Castle Deal

foreign next up is a tool to help you become king or queen of your own castle [Music] hello sharks my name is Kevin Lane and I'm Lori Lane from New Milford Connecticut we are seeking 350 000 for 10 equity in our company create a castle everybody loves to vacation at the beach I know that I could lay in the Sun for hours with our daughter our son would stay in the water all day if we let him and if you're anything like my husband here you like to spend hours and hours and hours ignoring his family building the most elaborate sand castles but it's impossible to build a real sand castle using a traditional fill and flip buckets wet sand sticks in the bucket even at its best it just looks boring that's why we invented create a castle revolutionary split mold sand castle kits that allow you to build elaborate sand structures in no time at all just Buckle it pack it unbuckle it and well create a castle our Pro kit includes a 10 inch cylinder for the base horrible to add a new level of intricacy a stackable six inch piece for additional height a ridge Battlement brick form to add to the towers and a window cutter to etch out elegant windows then sit back relax and enjoy the admiration of everyone on the beach so sharks who wants to create an empire with us bringing families together one castle at a time with create a castle I have six kids I'm a mom and bonus bonuses okay so we spend a lot of time on the beach and I love this is there anything like this out there because I feel like I've seen something similar nothing like this we're unique in the fact that we split so the mold split in half but they also are stackable and the right kind of sand you build an entire Castle that take that took me under two hours wow see you Patton do you want to tell us about that yes so go ahead we have yeah we have 12 patents worldwide 12. 12. does your patent you believe that protects humans anybody who wants to start splitting there we have broad coverage it scales up and down that's why we're going down into the indoor line now as well all right guys look this is a very very seasonal product it works in the snow yeah so it does it works year round we figured that out the first year we did it and you can stack like crazy Elsa's castle in the winter but what else yeah so guys what are the price ranges what's the least and what's the most so we go the tool kit that we have there the small box that's ten dollars and then the pro kit retails for fifty dollars what's your landed cost on that the little one is landed at two dollars the pro kit that cost us 9.45. so what did you sell last year you're imputing a value of a 3.5 million last year we did 600 000 and then this year we are doing three million three million wait a minute Canada as well as Sam's Club on the 600 000 in sales last year what did you make on that we were actually negative a hundred thousand we lost money last year why and that was really due to the shipping cost we're like 5x what we had budgeted because of covid yeah like we used to get a container in for you know four to six thousand and you know a couple of our containers last year were 25 000. and the three million in sales including the Costco and Sam's Club ordered what do you think you'll make on that this year we're going to make about three hundred thousand what is your margin to Costco then the margin we made about um 27 to 32 percent so that's part of your challenge yeah okay what are you looking for help for because right now it looks like you are scaling really well I honestly need to reduce costs but what else are you looking for I think mostly we need you know with the the capital that we're asking for to invest in product and we just need expertise we've made so many mistakes and we're expanding into a hold we want to open up a whole licensing version what a licensing version did you say Damon oh you're looking for 350 000 I'm gonna assume that's primarily for inventory and you're trying to figure out the Costco order translating into a U.S Costco order correct because a lot of people tested in Canada yeah are you sure that you can make money off of that order yeah not necessarily I mean we've learned a lot getting into the big box money on the Costco order because they're going to ask you for some co-op advertising as well right for that and markdown yeah yeah we you know we know we have to have the right to return the last 15 percent of it yes margins even worse yes yeah guys I think there's too much of an emphasis on sales rather than profits every entrepreneur gets really hyped about doing business with big box retailers but the reality is it's just gonna take more and more cash like you found out and so you know chasing margin and profits is good chasing sales in my mind particularly in these uncertain days is bad and so for those Reasons I'm out guys guys let me tell you where I'm at I'm looking at the business models because it's strictly as an investment anytime it's 350 000 that's serious Capital I'm not even going to beat you up in the 3.5 million valuation although I should it's in my DNA to do that and I'm going to hold back because I'm under anger management this year so at the end of the day uh it's not investable yet because the business model isn't nailed down my sense is to dump the low end completely raise the prices 30 sell only on your own website direct otherwise you're never going to make any money I'm out okay thank you listen I I don't agree with what he just said your price point I think is excellent and I have always found I like to make products for the masses I like to make things where everybody can afford and enjoy it but I think for me it's not something that I want to invest in I don't invest in everything that I like you're doing everything right and I wish you good luck but I'm out [Music] I absolutely love this product it brings me joy and I loved your price point and I actually totally disagree with Kevin I think you want a balance of wholesale and Retail now coming from a retailer myself who sells an omni Channel I sell wholesale ISO direct to Consumer online and I have my own retail stores I think you can do it very thoughtfully now some of the discount retailers I will agree with Kevin can absolutely kill you so being thoughtful about where you go but I think you've got a home run I'm going to give you an offer I'm going to give your 350 000 but I don't think your valuations 3.5 million you lost a hundred thousand dollars last year so I don't see the 3.5 but I do see that there's going to be great potential and opportunity I'd like to give you 350 000 for 20 percent and I think I can help you with that Omni Channel which I do think is going to help you build the business the way you want to build it okay awesome wait wait wait wait hold on [Music] sharks are out Kendra has made an offer of 350 000 for a 20 stake in Kevin and Lori's sand castle toy create a castle I think I can help you with that Omni Channel which I do think is going to help you build the business the way you want to build it wait wait wait wait hold on [Music] I like this but Mark has a valid point you know this is going to be your personal decision right do you uh raise the price stay online and you know net more or do you want to go big do you bring in a shark and you go big but if you go big it's a huge cash suck massive so I'm only interested in this for the licensing aspect that's a personal decision but I will give you the 350 000 for 25 and Licensing is the key you know look I disagree with Damon I don't think this is just a licensing play and I don't see why you guys can't be the next big toy manufacturer so that's what I want to do I want you to dream big and I think I can help you get by the way when I say dream big I'm talking about dreaming big what do you want to do you guys ever work together with the licensing I would love to work with it but in this area I'm the most successful licensed guy up here that's my area and I'm a brand Builder I built my own brand right from the ground up out of my extra bedroom so I'm going to interpret that for you they said no they don't want to work together what do you want to do you can counter foreign [Music] would you be interested at 15 percent I'd like to stay at 20. okay I'm gonna let you make the call she makes a decision I respect both of you got all of you guys anyways absolutely but I think we're gonna go with Kendra at the church [Applause] thank you guys thank you sorry Damon thank you so much thank you [Music]

Channel: Sony Pictures Television

Views: 454,982

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: YWdSsK-3p0o

Length: 10min 23sec (623 seconds)

Published: Sat Jun 24 2023