Shark Tank US | Peter Jones Makes A Shocking Offer To Long Wharf Supply Co.

next up is an apparel company focused on helping our oceans [Music] hello sharks my name is Mike lamagna I'm Lauren lamagna and we're salty siblings from New England we're here seeking a 375 thousand dollar investment for 15 of our business The Long Wharf Supply Company it's no secret that ocean Plastics are one of the biggest environmental challenges is of Our Generation additionally millions of pounds of oyster shells are discarded every year and end up in landfills eventually turning toxic over time while contributing to Global waste and that's why we're turning waste into wool we created the first fisherman sweaters made from a soft blend of recycled oyster shells recycled water bottles and natural lambswool each sweater sold reseeds up to 30 oysters to date we've receded over 70 thousand oysters which naturally filter 3.5 million gallons of seawater in our local waterways every day by creating high quality and Timeless garments that promote the use of recycled materials and that directly support reseeding Coastal oyster reefs we hope to reduce waste and clean up our into our waterways for the Next Generation so sharks now that we've got a hook in the water who's ready to take the bait this is a really nice sweater I think it is really cool it's super soft I mean it really feels nice it's got like that a good weight but also like something you'd want to put on what's the percentage of the Lamb's wool to the Recycled it's 10 lambswell and 50 of our recycled material really 50 the other 40 is 20 nylon and 20 plant-based viscose so for those who don't know one oyster filters how much water a day I'm glad you asked people are floored to learn that 50 gallons of seawater per day are filtered by each oyster I filmed a little experiment for you so you can see it with your own eyes we filled two tanks with Mucky sea water placed 60 oysters in the tanks if you'll notice by the end here the tank on the right gets pretty clear people are blown away a period of time for two hours two hours it takes you two hours to clean that much for that time lapse yes wow that's pretty interesting so what's your back story yeah absolutely after graduating I moved back to Boston initially to work for one of the most successful e-commerce companies Wayfair and I interned in New York City working for an entrepreneur who had co-founded fashion label Tory Burch was hired as an associate it was my dream job unfortunately I got caught up in layoffs and I just did what I knew how to do best go back and jump on lobster boats and during those years I looked around and I was floored at how much plastic and waste we'd pull out of the ocean so I started thinking about launching my own business so Longworth originally started at the end of 2016 with a handful of wax canvas and leather goods we actually launched the sweater collection last year 12 months ago so what do these things sell for what are your margins so we have just under an 80 gross average margin they cost us 23.50 to 33.50 to make and we sell them for 128 to 158. have you figured out your customer acquisition cost yet we have right now we can acquire customers for forty one dollars give me the last three years in sales yeah so I just want to talk about our pandemic pivot because it was a big part never good when someone asked you how much you're selling are we getting another let's change the subject yeah in the last 12 months we've sold 495 000 and is it just the two of you running the company like tell me how is this operation being run it's the two of us I mean it's it's bootstrapped nose to the Grind Stone pounding down you're doing everything though Mike's a Storyteller right he's Italian I'm Italian if we're not talking we don't know what to do but it's very much an all Hands-On deck kind of effort and are you 50 50 Partners no right now I own 100 of the company I do I do and what about Lauren I still have a full-time job and I'm working on Long Wharf mornings nights and weekends right now well why doesn't Lauren have a person yeah why does the Lord have there's a couple negotiations we can do in this room today hey who's the shark hey hang on Mike just give me one second here 375 000 15 2.5 million dollar valuation 495 000 in sales I get the oyster story that's really great but it's a sweater business okay you're worth sort of one-time sales 375 000 I'd need to have like 75 of it we appreciate the offer but that [Laughter] Mike let me tell you the valuation is insane the company's not even worth 375 000 yet you asked for too much money I'm out we appreciate it Mr wonderful thank you for your time you know I mean I'm really attracted to this because my my daughter is five years old uh you know they asked all the kids in school what do you want to be and two of the kids say I want to be a venture capitalist when I get older my daughter said I want to pick up trash interesting nothing against the hard working men and women that clean up our cities and I asked them why do you want to pick up trash and then she looked at me at five years old with a big beautiful eyes I said because I want to clean up the world daddy oh right and so this is something I want to do it's it's something that our kids need to understand but the number is so much to wrap our heads around and I I would be making an uneducated decision and paying the most I could for it so where do I have to pass I'm 375. oh we appreciate your time Damon um I think it's really interesting you do think that there's a there's a gap in the market don't you we do I mean we see ourselves becoming the face of the circular economy opportunity for a speech it was just a statement No I'm just what I'm looking at now is is there actually a market in that Gap because I think what your mission and what you're trying to stand for is really great how do you make this into a business isn't there something bigger that you could be doing that would be helping the oceans in an even bigger way we don't like this business at all love to get there and I think we're on the track to do that let me ask a question a different way can you sell something that everybody can afford to buy so everybody can participate a t-shirt that everybody can say hey I'm supporting conservation and Reclamation of oysters and making the oceans better there's got to be a path to scale yes and there is so right now what we've been talking to you guys about is our lands will blend but something that we're working on is a cotton and recycled material blend it's much more versatile than our wool blend which is made to keep you warm just tell me can you sell a t-shirt for 29.95 make 60 plus percent margins and accomplish the same thing and sell 5 million of them we think we can sell 5 million of these sweaters I'm out we do appreciate your time you know it's a bummer Mark's idea is a really great one because people care his daughter cares we all care right and we want to be able to do things and get behind things but to Mark's point in an affordable inexpensive way a T-shirt and when he said how about doing that can you tell me doing that and if you had said to him yes I would have said Mark I want to join you but you didn't but you didn't it was the moment to jump in and say yeah you know what it's a good idea we'll figure it out we'll make anything out of oyster shops I'm so sorry but I'm out look I think you've come with a great product a really really good idea um there's two things I don't like about it one is clearly the valuation and the second thing interestingly is he hadn't given any share to your sister who I think is just about as passionate in this business as you are so can you answer why that hasn't happened honestly Peter we haven't even thought about it yet Lauren's put in the time you might want to ask Lauren that yeah Laura would you take it if he offered you equity yeah absolutely Michael are you going to offer her some Equity yes how much is she going to get I'd like to see Michael's commitment how much would you give her now hmm Lauren what do you want I'll take 10 that's it done all right we got a deal finally great you've just done a deal in the Shark Tank congratulations yeah you might do another one because I'm going to make you an offer awesome let's hear it I am able to help you sell this on a global basis in multiple markets I've got a business I'm a major shareholder it's called localized we take even American brands and we put them into Global markets I'm going to offer you all of the money that's 375 000. but I want 45 of the business four sharks are out Peter is interested in Lauren and Mike's recycled oyster sweater company Long Wharf but he wants a much bigger bite than the 15 they came in offering I'm gonna offer you all of the money that's 375 000 but I want 45 of business [Music] yeah they are um I think that's a hell of an offer because you don't have anything yet you got oysters you got some water bottles you've got nothing in sales I mean you got a new partner you lost 55 said in one minute um your dream for having this business successful becomes reality the minute you say yes [Music] [Music] Peter we'd love to have you join the family great we we appreciate the offer but was that a deal would you consider 25 yeah to Kevin's point this business today is worth maybe three to five hundred thousand dollars that's the reality and my business we're the only company in the world this is a big statement but it's true the only company in the world that could take a global brand and open them up in a localized market like Japan Korea and Asia in 30 days or less that makes a very very unique difference and that's what I bring to the party so there there's no no because I just feel that there's going to be a lot of work here I'm not going to budge on that it's my final offer so well Lauren's made the decision on this one Peter we really appreciate your offer but it's more than we're willing to give up right now whoa hey guys good for you guys understandable no that's smart as hell we really appreciate everyone's advice and time today good luck we appreciate it Peter just got you 10 of the company that's true right we're walking away as a winner

Channel: Sony Pictures Television

Views: 1,103,718

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, Season 13, shark tank season 13, shark tank season 14, shark tank guest shark, shark tank season 13 pitches

Id: fUhBk1jPaX8

Length: 11min 46sec (706 seconds)

Published: Sat Feb 11 2023