The runaway winner of this week’s Sharky Award for entrepreneurial excellence is Billy and Randy from Thompson Tee. They make undershirts that block perspiration. As one of the Sharks put it, they make “armpit diapers”. The product is patented.
Approximately 35% of the adult population suffer from hyperhidrosis or excessive sweating. That’s a large addressable market and Billy and Randy are making a dent in that market…..they have shown steady growth over the last few years and currently have sales of over $2 million. Investors love to see steady predictable growth.
These two made a great team…..one has suffered from hyperhidrosis and the other had lots of experience in the clothing industry. They had asked for $700K to bring manufacturing in-house to save a couple of bucks per tee-shirt. The Sharks questioned their strategy and urged them to continue to focus on sales and marketing rather than deal with the management challenges of manufacturing and distribution. But Shark Robert remained very interested in the two of them and said he would help them grow but wouldn’t dictate strategy. Robert offered $700K for 25% and they gladly accepted his offer.
The Best of the Rest……..Tyler from People Design has developed a unique multi-use “scooping bowl” that costs $5.80 to make and sells for $24.95. Even though he had very limited sales history, this is a made-to-order deal for Shark Lori who scooped it up and will invest $75K for 33.33% equity. This product will do very well on QVC.
Kim, Emily, and Keith from Rumi Spice are marketing premium saffron from Afghanistan. These three served in the U.S. military in Afghanistan and Kim and Emily had an MBA from Harvard….indeed a very impressive group. They did, however, show a bit of arrogance and were rattled by Mr. Wonderful when they didn’t know “the net profit numbers”. Mark Cuban wasn’t put off and he offered $250K for 15% equity. The group happily accepted.
Trevor and Justin from Wallet Buckle had a little too much fun in their presentation. They cracked each other up a few too many times and the Sharks took note (although it was a very amusing presentation). Their belt buckles hold up to 5 cards and they are selling well at various events, but the market size was too small to interest the Sharks.
OVERALL RATING OF THIS EPISODE………………..B