Shark Tank US | Mark Cuban Makes 'Sharky' Offer To You Go Natural Entrepreneurs

next up is a product designed to protect while being stylish [Music] hey sharks I'm Monique little CEO I'm David CEO today we're here asking for 400k for five percent of our dallas-based company you go natural sharks what do you all do when you're having a bad hair day or those days you just don't feel like washing your hair we can't all be no hair don't care like Mr Wonderful over here and some of us just can't put on a hat because that's because that's because our natural hair can get damaged [Music] sir good breath one one go-to option is the head wrap but traditional head wraps can be made from harsh Fabrics like cotton or polyester that can damage the hair and learning how to tie them can be time consuming and confusing that's why I created the first ever satin line easy tie head wraps you go natural wraps are not only super stylish and super easy to use they're designed to protect and promote the health of your hair with super soft satin lining that reduces friction and retains the moisture in your hair oh easy it's cool the core line features cool turbines from lots of styles for both women and men so you can look good on the go no matter what kind of hair [Music] anyone can enjoy the water without worrying about the harsh effects of salt water and chlorine on your hair today we build a massive customer base directly online but we're here to make you go natural a household name so sharks which one of you is ready to wrap this deal up wow that's cool clever idea are you married no we're brother and sister yeah how darling so there's two things here this is for the swim one correct that is our silicone line swim cap and the swim turban is patent-pending design and it's made to keep the water out of your hair when you swim that went viral on Tick Tock has amassed over 10 million views on Tick Tock we sold tens of thousands of them this Summer very luxurious feeling thank you very expensive to me which we'll get into next if you twist you twist you turn David so you might take it in the front crush it in the front like this yeah there you go and then move it to the back and you're done it's kind of like an elevated durag you've worn a do-ragon yeah you know how to put it on yeah I'm very cool this is grippy this is strong it's heavy this is heavier than like an average bathing cap this thing is amazing it's the why didn't I ever think about it what do you sell them for and what do they cost you yeah so we manual all of our products in Dallas Texas four dollars to seven dollars to manufacture and the pricing ranges from 35 to 48 wow that's relatively cheap the production's so low in Dallas because we know how to work in Dallas because you have a valuation of eight million dollars here all right so I'll walk backwards um so we today we've sold over 15 million dollars of product whoa six-year-old company 2020 we did two million dollars 20 21 we did 7.5 wow this year we're tracking 10 million dollars in sales wow wow did you make any money on that 7.5 the year you did 7.5 million so the beginning of last year we raised two million dollars oh wait a minute why what did you use that for so we use it to expand to expand our product line and invest in the manufacturing facility did you profit on your sales we did not last year last year we lost two million dollars this year we will be profitable wait wait wait last year you lost I'm sorry I heard you raised yeah and then you also lost 2 million you're running it so with all the margins you guys have what were the costs so we over ordered on inventory last year so how much did you have that means you wrote off a lot of inventory right exactly so you fell into the Trap where you raised a lot of money thought you were going to grow really fast right so now how much cash do you have in the bank so we have just about 100 Grand in the bank will be so we we will be profitable this year so we're going to Target in February of 2023 your sales grew very quickly and you thought that was going to be sustainable so you went all in thinking you're going to grow five ten times what are your customer acquisition costs now uh customer access are thirty dollars how much did you spend last year in advertising we spent about three million dollars in advertising wow going into this year our goal was moving into efficiency we had the decision okay do we raise them do we keep on hitting the gas or do we pull back have any kind of like trying to make money was a good call yeah right and so we've kind of turned we've turned that around so I make it for seven I sell it for 48 direct to Consumer I pay 30 of that in customer acquisition costs so I'm dealing with just under 10 bucks a profit this is why we're here that's why we're looking at our raise is that we want to prepare for Target how many stores you're going to do on that rollout 316. it's a test right yeah the first products are going to be our headbands which is really interesting the headbands are made from our remnant of the turbines yeah and it's the lowest price point product so it's a 10 product it's made from our Remnant product it goes into Target and we still get to sell our core product online right because we're innovating this that's your efficiency thing that you're trying to do by using excess materials exactly no but let me tell you something using the remnant inventory sounds Clean and Smart but it's going to take you time it's gonna you're gonna look that way this way you have to contend with the store itself you have to ship it's not just Remnant inventory it's the most valuable thing you have which is your time and your focus I think it has to be demonstrated you should stick with your lane I think your point clearly is online so I'm out I can't really bring anything to the table here on this too yeah thank you thank you thank you when I heard your sales ramp I thought maybe I should grow my hair back that was really impressive but I dig into the numbers I'm not a fan of the retail move for a bunch of reasons servicing a retailer is a whole different bag and I prefer to see you spend all your time reducing your customer acquisition all right guys it's not for me I'm out thank you thank you I appreciate it uh the way I look at it is um no pun intended though it looks like you're wearing too many hats um but if I just did the math it would take me five years just to break even you having no problems at all and doubling your business so I don't want to take away from the fact that this is great the product thank you thank you I appreciate that being said I'm out you guys product amazing I love it what scares me is the losses that just happened you had incredible sales but you also took a real hit and to invest almost a half a million dollars for five percent it's just so we have room for negotiation yeah we have room for negotiation I think it's one of those things sorry I can't um well unfortunately I'm out okay so guys the big question has been how much are you willing to give yeah right so I'm willing to make an offer but it's going to be really really really Sharky [Music] four sharks around Mark is Monique and David's last chance for a deal for their hair wrap you go natural okay so guys the big question has been how much are you willing to give yeah right so I'm willing to make an offer but it's going to be really really really Sharky because of all the uncertainty okay right I'll give you the 400k but I want 20 percent [Music] you'll get my help and obviously in Dallas I can help this is how Sharky that offer was he took your evaluation from 8 million to 2 million what are you gonna do so what we propose um is 12 of the company for that 400k we also wanted to throw out a deal to everyone else here that is 400k as a debt deal with some form of royalty oh wait wait wait wait wait wait so now you're walking away you're looking at others for me now we're countering at 12 um that's like baby let's go to dinner but hey wait are you afraid of that debt deal tomorrow why don't we just get to everyone before everyone before we talk royalties why don't we figure out what that stuff you have a fish on the line which is Mark don't offend this fish I know him no no no we're I mean we I we love you Mark and that fish is cash right and so we we want a partner and so we think that okay the only way out the way I would do it then so if you're saying you're open to a royalty so let's say three dollars on the headband five dollars on everything else until the loan is paid back then what Equity are you offering me we would offer seven percent make it 10 and you have a deal it's up to you good job thank you thank you thank you thank you thank you thank you

Channel: Sony Pictures Television

Views: 123,498

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: rTfZmX4LJw4

Length: 10min 15sec (615 seconds)

Published: Mon Nov 20 2023