'Shark Tank': Lori & Barbara Battle Over Window Screen Company (RECAP)
Tonight, Barbara Corcoran, Robert Herjavec, Mark Cuban, Kevin O'Leary, and Lori Greiner listened as four hopeful business — SlumberPod, Fortress, Zuum, and FlexScreen — pitched their ideas. Read on to find out which entrepreneurs walked away with a deal!
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Katy Mallory and Lou Childs introduced the Sharks to their baby product that not only makes traveling with a little one less stressful, but helps babies get a deeper, more restful sleep while on-the-go. Seeking $400,000 for 20% of their company, the mother-daughter duo explained that SlumberPod is a "portable privacy pod" that offers children the darkness that they need to fall and stay asleep.
"Sleep deprivation is a military torture tactic, it makes you crazy," Katy admitted, explaining that she came up with the idea after the light would wake up her sleeping child during naps or overnight stays at Grandma's house.
And so far, the product has been a hit. They credit their $500,000 in sales to moms who are "obsessed."
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It still feels like this is a dream. 😴 . But it’s REALLY happening!! The countdown is on: three days and seven hours until SlumberPod airs on Shark Tank! 🦈🦈🦈🦈🦈 . If you were a shark, what would you ask Lou and Katy in the tank? 🤔 . Set your TVs to ABC this Sunday, January 5, at 9pm ET. . . #slumberpod #resteasy #babyproducts #babygear #travelingfamily #momlife #traveltheworld #travelingfamily #havebabywilltravel #familytravel
Barbara expressed interest in the company, offering $400,000 for 25% with the contingency that she'll need some kind of royalty, while Kevin chimed in with an offer of his own: $400,000 as a loan at 9% interest for a 7% stake.
Robert admitted that he would've made a more aggressive offer than Barbara, so he opted to go out on this deal. Lori and Mark also chose to take themselves out of the bidding war.
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The entrepreneurs countered Barbara asking for their original offer of $400,000 for 20%, to which she agreed and accepted a deal.
Say goodbye to layers! This line of outdoor wear is designed to keep users warm even when they're wet — and Dale Lewis proudly discussed what makes his company different from all the other competitors.
Seeking $600,000 for 15%, Dale explained that every piece from the line has a proprietary disruptive insulation technology that keeps users dry and warm.
Lori had trouble getting on board with the fact that this company was different enough from others, so she decided to go out. Kevin and Barbara also chose to remove themselves. Robert took issue with the lack of direction from the company and also went out.
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"You are drowning in opportunity," he told him. "Too much opportunity for me."
Mark was the final Shark to remove himself, leaving Fortress without a deal.
Changing the way transportation works, Chico Guerra and Mason Buechler introduced the Sharks to Zuum, the portable, electric skates that make traveling a breeze. Though they don't have exclusive rights for the technology, and essentially anyone could rip off the product with ease, they were still hoping to land a deal of $125,000 for 20%.
Mark was the first Shark to express an issue, telling the entrepreneurs that they didn't communicate what they wanted to do next with the company. Barbara also chimed in and asked what the company's biggest obstacle is, but they had trouble responding, and she chose to go out because of it.
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"If you don't have the passion, you're not going to grow," she told them.
Lori also went out, explaining that trouble with competitors will be the biggest hurdle to overcome. Kevin went out as well, bluntly telling the duo that their product "sucks." Ouch.
"I don't trust you with my money," Robert told them before also going out.
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Joe Altieri was the last entrepreneur in the tank seeking an investment for his business, FlexScreens, the world's first and only flexible window screen. Unlike traditional screens, FlexScreens can bend without damaging their shape, which makes for the most efficient installation.
Though the Sharks were initially surprised by Joe's request of $800,000 for 6%, he has the sales — over $5 million in the past year — to back it up. However while sales are soaring, the margins are minimal, so the company isn't banking as much money as it's making. And naturally, that was a major issue with the Sharks. To make matters worse, every single screen is custom made.
"This is crazy to me. You have a better product, each one is custom made, and you only have 15% margins?" Mark said, adding that he would throw that strategy out the window.
Collectively, they have invested over $100 million into products and businesses from the award-winning show.
But despite the issues, Barbara still threw out an offer, $400,000 in cash, $400,000 in credit to be used to manufacture standard sizes for 50% stake of the retail business. Kevin also made an offer — $800,000 for a 20% stake, contingent on a deal with a big window manufacturer. Lori expressed interest as well, offering $400,000 up front and $400,000 as a line of credit with 6% interest for 10% stake.
"A lot of my entrepreneurs are in the hardware space and I think we can really do something great with this. I think you need to be to the consumer and the manufacturers," she said.
Kevin then revised his offer to $800,000 as a loan for 6% stake, which Joe said he wasn't interested in pursuing. Once Lori heard that Joe was most interested in Barbara's offer, she replicated her deal.
Ultimately, he chose Lori over Barbara, saying that she had better connections.
Shark Tank, Sundays, 9/8c, ABC