- An entrepreneur presents a line of luxury maternity gowns.
- The Sharks in this episode are Kevin Harrington, Daymond, Kevin O'Leary, Barbara, and Robert Herjavec.
First, Diedrea Heysel presents her business called "Hot Mama Gowns," which offers luxury maternity gowns. She asks for $30k in exchange for a 20% stake in her company. Diedrea designed the product after feeling humiliated and exposed in a hospital gown during childbirth. Her sales over two years amount to $11,500. She works as a pharmaceutical sales rep alongside her business. The manufacturing cost of each gown is $49, and they retail for $119. Diedrea plans to focus on reducing manufacturing costs, but the Sharks are skeptical about her growth strategy. They believe $30k is insufficient for branding and advertising. Kevin O'Leary questions her customer acquisition cost, but Diedrea is determined to pursue her idea. Barbara suggests a one-size-fits-all approach, but Diedrea disagrees. Daymond asks about licensing, but Diedrea is not interested in royalty or licensing deals. Daymond concludes that Diedrea is not open to ideas, and Kevin Harrington opts out since Diedrea expects him to work for her while she maintains a full-time job. Robert Herjavec believes Diedrea is not adequately answering investment questions. In the end, Barbara offers Diedrea 40% for $30k, but Diedrea refuses, and Barbara backs out.
Next, Melissa and Ben Fossey pitch their product "Caddy Swag," a drink cooler designed for golf bags. They seek a $60k investment for a 20% stake. Caddy Swag features a gel-based coolant pack that keeps beer cold for 18 rounds, enabling golfers to bring their own beverages and save money. The product sells for $19.99, with annual sales of $15k. Daymond is not interested because he doesn't play golf. Robert Herjavec points out that golf courses typically don't allow outside beverages. Melissa and Ben plan to use the investment to order 10k units at $3 per unit and run a targeted ad campaign. Kevin O'Leary considers their product just another cooler bag among countless others. Kevin Harrington is not convinced about the sales potential post-advertising, and Robert Herjavec shares the same sentiment. Barbara acknowledges the sales potential but doesn't believe the business is large enough for investment. As a result, they all opt out, and Ben, frustrated, retrieves the samples he provided to the Sharks.
Kim Nelson presents "Daisy Cakes," a mail-order cake business with recipes passed down through generations. She asks for $50k in exchange for a 25% stake. Kim ships the cakes nationwide using dry ice, selling them for $44.50 each, with a production cost of $18. In the last three months, she generated $27k in sales through fund-raising events. Kim has a commercial kitchen capable of producing 5000 cakes per month. She aims to expand sales by going on a home network sales channel. Kevin O'Leary opts out due to concerns about scaling up manufacturing. Kevin Harrington believes the business relies too much on word-of-mouth marketing. Robert Herjavec doesn't view the business as investment ready yet, and Daymond shares the same opinion. Barbara offers the requested investment but requests a $1 royalty on every cake sold until she recoups her initial investment. Kim accepts Barbara's offer.
Lastly, Shane Pannel presents "Sweep Easy," a broom with a built-in scraper. He asks for $40k in exchange for a 25% stake. The product is still in the patent-pending stage and not yet on the market. Shane plans to sell it for $19.95 directly to consumers, but Robert Herjavec suggests exploring a licensing approach. Kevin O'Leary initially offers $40k for 20% but only expresses interest in licensing. He then increases his offer to $50k for 20% when Kevin Harrington proposes taking the product directly to consumers. Daymond offers $75k for 33% and suggests creating a global brand with additional products and patents. Harrington offers $50k for 25%. Barbara opts out, doubting Shane's ability to succeed. Herjavec partners with Kevin to offer $80k for 25%, with a focus on licensing. However, Harrington refuses to partner with O'Leary. Ultimately, Daymond and Harrington form a partnership and offer $80k for 25%. Shane requests time to discuss with his wife, while O'Leary also mentions consulting with his wife. Daymond becomes upset and threatens to back out if O'Leary contacts Shane's wife. Ultimately, Shane accepts the deal with Harrington and Daymond.
In an update on a previous episode, Tim and Erin's business, "Grease Monkey Wipes," made a deal with Robert Herjavec and Barbara. They have expanded into the performance bike market and secured placement in 500 stores. They have sold 200,000 units, experiencing a 700% sales increase.
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