tv The News With Shepard Smith CNBC May 25, 2022 12:00am-1:00am EDT
al if at all possible. i would rather make, uh, a little less money and have--work with someone like lori than to not get the deal. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪♪ first into the tank is an entrepreneur with a revolutionary new bike accessory. hello, sharks. my name is kent frankovich. i'm a mechanical engineer from san francisco, california, and co-founder of revolights.
i am seeking $150,000 in exchange for 10% of my company. so, traditional bike lights generally consist of a small, forward-facing white light that mounts to your handlebars and a small, rear-facing red light that mounts to the back of your bike. well, we think this approach is incorrect, considering an estimated 70% of nighttime car-on-bike collisions can be attributed to inadequate side visibility. we want to eliminate that statistic, and let me show you how. revolights consist of intelligent rings of leds that mount to your wheels and synchronize to your speed to create a forward-projecting headlight that stays in the right position at any speed, a rear-facing, functioning brake light, and a dramatic increase in your side visibility. that is so cool. john: yeah, very cool. really smart. frankovich: so, demand has been overwhelming for our product, but in order to make this thing really take off,
we need to get to a more mainstream price, lower our cost of goods, and for that, i need your help. who wants to come up and check out the lights? ooh! cuban: i'll try your lights. [ greiner chuckles ] cuban: by the way, that's what daymond wears when he rides his bike. huh? [ laughing ] okay. trust me. daymond doesn't ride a bike -- ever. of course i do. all right, you got to really start going. kent, how did you come up with this idea, while he's riding? so, i originally had the idea riding home from my lab at stanford in grad school. um, i finished up, and i was going through a lot of dark patches, and i was just hitting bumps and potholes at the last minute, and i finally said to myself, "man, i need a better headlight." and so -- but i started thinking, i didn't want to just go and buy a more bright headlight. i wanted to make a more efficient headlight by putting the light where it's needed -- as far forward and close to the ground as possible. o'leary: before you finish, let us -- i want to look at it. i want to see how this is facing forward. yeah, come on up. check it out. so, the way it works, there's rings of leds.
they attach to your wheel, so as they go, there's -- at low speeds, there's an accelerometer that's figuring out forward at all times. o'leary: one size fits all? right now, we're just road bikes and hybrid bikes. that's our first product. can i retrofit it to an existing bike, an existing wheel? yes. yep. greiner: can you pass that out around to us? the wheel? yeah. is -- is it something that you clip onto the wheel? um, so -- any wheel? we have -- right now, we sell a kit that allows you to install hardware onto your spokes, but we also have now a wheel with the lights permanently riveted in. it also looks like it could be stolen. so, stolen is actually a big point, because that is one of people's main concerns with bike lights currently. we manufacture them to be solid rings, so when you lock up your wheels, you're actually locking up your lights. i'm assuming you have a patent for it. we now have two granted utility patents. okay, have you considered licensing it to one of the two giant bike manufacturers? absolutely. we wanted to get to a point where we were proving the market, and we started building them into wheels,
and we're using that as an example. great strategy. what are your sales so far? so, we haven't been selling for more than 12 months, and in those 12 months, we have sold $600,000 worth of our product -- online, almost exclusively. oh! what does it cost to make? how much do you sell it for? so, currently, we are selling each individual set, front or back, for $139. the full set, you can buy for $229. you made $600,000 in what period of time? so, that's in about 10 months of sales. how much of that is profit? so, we have not become profitable yet. okay. so, we -- what does it cost you to make it? the next order we're gonna place is $100, about. it costs you $100, and you sell it for $229. costs us $100. for a set or one? yes, that's for a set. john: and why do you not make profit? is it because of the margin, or -- because he's investing and growing and doing r&d, yeah. or is it because you're putting money back in? that's what i was gonna ask. yeah. it's money back in. i mean, we don't -- i've seen strips that you can put around mm-hmm. yes. that just are for color and for fun, but this is much stronger, so do you have -- costs 10 times more, though.
oh, yeah. i mean, those cost, like, 20 bucks. yeah. but do you have any competition in this space for doing something that's a very bright light that's screaming, "a bike is right here. watch out." so, there is nothing that provides the visibility patch that we do. my background is mechanical engineering. i was actually at the jet-propulsion lab, which is nasa's unmanned-space-flight wing. i was on the mars science lab mission. wow, we've never had somebody come in here and pitch that worked at nasa. [ chuckles ] you're a real rocket scientist. rocket engineer. rocket engineer. it's a big difference. yeah. so, i'm gonna get the party started here. [ laughing ] okay. $300,000 for 30%. [ sighs ] just think about it for a second. i'll make you an offer that's probably more attractive. um, i don't want any of your equity. i know where this is going, and remember, perpetuity is the new broke, so -- right.
no, but i-i may craft it in a different way. i would give you the $150,000 -- exactly what you asked for -- and i'd take a 7% royalty till i get my $150,000 back, and then i'd drop it down to 1% in perpetuity. it's like the wheel. it always spins and ends up in the same spot. exactly. you keep your equity, 'cause t-t-the truth is, the equity in this company could be very, very valuable one day. well, first off, thank you very much, both of you, for making an offer. um, kevin, to speak to your point real quick on the royalty -- we're at an early stage in our company, and that cash flow out can stifle our growth. bang. best answer to his royalty thing. would you rather -- would you rather i lent you the money, i-i was a lender? right now, what we want is an equity investment. kent, i'll make you an offer. okay. incredibly clever and smart idea, thank you. and you must be croatian, with a name like frankovich. [ greiner laughs ] yep. i am. did you come over in a boat with a little rice and rats in it?
yeah, absolutely. [ laughs ] so, you're asking for $150,000 for 10%? correct. i'll give you $300,000 for 10%. oh! wait a minute. greiner: whoo! i think your value is actually too low. i do think you undervalued it. robert, you're trying to undercut me. no kidding, bozo. yeah, well, you better put in your mouthpiece, 'cause this is about to get ugly. big game today! everybody ready? alexa, ask buick to start my enclave. starting your buick enclave. i just love our new alexa. dad, it's a buick. i love that new alexa smell. it's a buick. we need snacks for the team. alexa, take us to the nearest grocery store. getting directions. alexa will get us there in no time. it's a buick. let's be real. don't make me turn this alexa around. oh my. it's painful. the buick enclave, with available alexa built in. ask “alexa, tell me more about buick suvs.” entresto is the number one heart failure brand prescribed by cardiologists
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to more of what you love. we're bringing you the nation's largest gig speed network. available to more homes than anyone else. and with xfi complete, get 10x faster upload speeds. tech upgrades for your changing wifi needs. and advanced security at home and on the go to block millions of threats. only from us... xfinity. narrator: kent has three offers on the table, but robert has generously offered double the money that kent was seeking. so, you're asking for $150,000 for 10%. correct. i'll give you $300,000 for 10%. oh! wait a minute. greiner: whoo! i think your value is actually too low. robert, you're trying to undercut me. no kidding, bozo. yeah, well, you better put in your mouthpiece, 'cause this is about to get ugly. greiner: wow. that is an incredibly generous offer, robert.
i have to put the ego aside, and i don't want to get into a bidding war. i'm gonna have to say robert did give you a very...generous offer. i'll step out. thank you again for the offer, daymond. i'm still here. [ laughter ] robert, you have an incredible offer. i would like to see if any of the sharks who are still in would like to make an offer, as well, before i decide. such a nice way to say no. robert's right. it's worth a lot more. and you know that. you have your background and your experience and $600,000 in sales. people are probably throwing money at you. you don't come in and ask for a $1.5 million valuation... unless you're screwing with us, it makes no sense whatsoever. i think there's no chance on god's green earth that this deal could ever possibly close, because you'd be an idiot among your friends
to value this company at $1.5 million or even $3 million. it doesn't add up. did you just insult him? yes! because he's insulting us. mark cuban just crapped on you. what do you say? so, here's the response. i think that we have absolutely been looking to find investment. the fact is, coming and talking to you guys and the connections that you have and the networks that you have and the experience that you have -- you are so full of [bleep] excuse my french. connections is the least of your worries. and i'm just -- i'm being brutally honest. robert offered you twice... of what you asked for. ...what you were asking for at the same valuation. you didn't even put up a little bit of a smile. so, what are you doing, mark? i'm out. wow. i feel like mark has brought up something greiner: kent. that i really need to defend. one second. lori's gonna -- well, wait a second. greiner: well, you go ahead. answer it. answer it, answer it. okay, so -- you have the guts. don't let people talk down to you like that. you were so smart, capital was not a problem. you were smart enough to come on here, push down the valuation 'cause that opens that door...
at the very least, you're suspicious of his motivations? yes. the first -- the first thing that you're bringing up is that capital's not a problem, which is not accurate. i've been working for a year and a half, and so has all the other people in our office, without being paid, so, no, capital is actually an issue. and, frankly, the way i see this show is we are able to partner with somebody who has amazing connections, who has the ability to get us to the point where we need to be to start really moving product. so, why won't you just say yes to robert? $300,000 for 10%. bam -- you got the capital, you got connections. yes. say yes! because he's a nice guy. you know, not everybody is super-aggressive, full of themselves, like you. how do you feel, making a great offer, and he's not answering you right now? you know what? you might be right. kent might never close with me, but i'm not getting that vibe from the guy. okay. you're also not getting an answer from him. make your own deal. he knows that we're out over here. do your own deal, robert. i made an offer.
kevin, i greatly appreciate your offer, but i'm gonna have to say, i need to go with robert. o'leary: wow. greiner: congratulations. congratulations, kent. you'd better not be wasting my time, man. [ laughing ] i'm -- i'm absolutely not wasting your time. thank you very much. john: good luck, guys. t-thank you. so, basically, what mr. cuban accused him of was being here for only exposure. i offered the guy an offer. he didn't say no to me. what he said was, in a nice way, "i'd like to hear what other people say." if i'm standing right there and i say, "i want $150,000 for 10%," and then somebody, while i'm standing there, says, "i'll give you $300,000 for 10%," the normal response is... [ gasps ] "wow!" he didn't flinch! mark, you know what? you're a pushy guy, and you pushed the guy, and you rattled him. i just sat back and listened. you know what, mark? i only have the faith of the people that come in here -- no, look, we'll find out. but i'm not gonna be rude to people when they come out here. that's why they play the games. we'll see. narrator: last season, mary beth lugo made a deal with mark cuban
for her product, kazam... whoa. ...a pedal-less training bike for toddlers. do we have a deal? we have a deal. amen. o'leary: all right! i'm proud of you. [ laughs ] thank you. narrator: let's see how she's doing now. lugo: business has been phenomenal. since "shark tank," we've done $1 million in sales. over the next 12 months, we're projecting $2 million in sales. mark's team has helped us land the biggest deal to date -- skymall. not only are we in 5 million printed copies, but also online and with viewership, up to 160 million passengers. mark and his team have helped us incorporate kazam into our very first preschool program, and i just had to come out to dallas to check it out. who's ever been on a bike before? me! me! yeah? have you guys ever ridden a bike with no pedals? no! no! well, come on! let's do it! when i walk into a classroom and see the children using kazam and having fun, it's just such a great feeling.
i think harrison won. kazam is a fun way to get kids active at an early age, build their self-esteem, and establish their balance. that was cool. bringing an idea to life, building a brand name, and being recognized as a quality product is all i've ever wanted, and thanks to "shark tank," that's all come true. all: we love kazam!
take on yoi'm lisa.orld in style. and i'm ivan. and we're from los angeles, california. [ squeals ] we have two children. our son, elijah, is 5, and our daughter, vivian, is 2. wow. that looks kind of cool. our product was inspired by our kids. like most parents, we want to keep them safe. we want to know where they are, what they're doing, and that they're not getting into something that they shouldn't. ivan: when elijah was first born, lisa and i were both so busy, so her mom was a huge help and would watch elijah, and he's an active little guy.
he would be crawling around, getting bruises and scrapes. my mom suggested that i design something that gave him a little extra protection but also helped her keep an ear out for where he was and what he was doing. well, after i make the lunches, then i'll get started on your breakfast. i now work on the business full time while staying at home to take care of our kids. elijah, let's go! let's go! being a stay-at-home mom and running and starting a business is not easy. coffee? let's go. it's a lot of hard work, but i wouldn't want to be doing anything else. that's how much we're gonna have to pay for everything. oh, whoa. we've risked our family's financial security to develop this product. for our latest production run, i had to, essentially, max out our credit cards to see it through. we need the sharks in a big way. there's nothing like our product on the market, and we want to be first to market and hit it big.
hi. i'm lisa. and i'm her husband, ivan. and we created squeeky knees. we're asking for $80,000 in exchange for a 20% equity in our company. there's nothing more important to parents than keeping their kids safe, and our product does just that. squeeky knees are soft, squeaky pants for the baby on the go. i'm a stay-at-home mom of two young children, and our kids do not stop. when our son began crawling, i noticed that his knees would become bruised and scuffed. to top it off, i couldn't leave the room without him getting into something. i needed a product that not only protected his knees, but integrated a fun sound so i could keep an ear out for where he was. there was clearly a problem, and now we have a solution -- squeeky knees. [ squeaking ] [ baby coos ] [ laughs ] [ squeaking ] [ laughs ]
[ squeaking ] oh, my goodness. [ squeaking ] squeeky knees are infant and toddler legwear that have built-in knee pads and a squeaker device that makes a fun and entertaining sound when babies crawl. their knees stay protected, and kids love wearing them. evans: so, sharks, who wants to make some noise in the baby industry with us? i'm gonna pass out some products. [ laughing ] all right. so, you took a doggie toy and you put it in knees for kids? [ chuckles ] that's not exactly it. but close enough, right? yeah, yeah. doesn't it get irritating? i can completely understand where you might think that, but, like, i come home from a long, hard day at work, and when i see my son and my daughter crawling in those, [ all squeaking ] making those noises, it's, like, an endearing sound. it's -- i love it. i love that sound. yeah, 'cause you weren't home all day. your wife is going, "oh, my god! if i hear that squeak one more time..." [ squeaking ] that's the sound of money to me. [ squeaking ] well, how much money have you made? how many have you sold? we've sold over 500 units. we've -- we've made t-- over t-- a little over $10,000 in sales.
and how long have you been in business? we've been in business for three years. wow. you just hit a buzz saw. three years, $10,000? but the first year was dedicated to intellectual property. we wanted to patent this. john: so, now tell me where you're at and, uh, why was it so small, and why do you think it's going to scale big? i'm a stay-at-home mom. we're on one income only. you know, i do my best. if we don't have the funds to do a production run, then i'm on social media, i'm on facebook, i'm putting them on my daughter at the park, i'm talking to -- lisa, i get that, but is there a possibility -- and how many are you selling off your daughter in the park? for example, when you put your daughter out in the park, yeah. how many people say, "oh, my gosh. i love that. i want to buy it"? most people do. i hand them a card, i say, "visit our website," and they do, and people love them. apparently not! nobody's buying them. if people loved them, do you think your sales would be higher? you know what? i do. but because we can't market it in a big way -- yeah, we've done literally no marketing. wait a second. i have a question i want you to answer.
is there a possibility -- people couldn't really find us, so... is there a possibility, as you're explaining why you have no sales, is there a possibility that nobody wants squeeky knees? well, you know what? there's a possibility for a lot of things. not right now. no, no, wait a second. okay. i really believe i may be right. i think the idea sucks. and that's why there's no sales. okay. is that a possibility, maybe? let me answer this. anything is possible. don't smile. i'm giving you a serious accusation. through our website, like i mentioned, we have limited marketing. a buyer reached out to us from zulily, one of the biggest targeted flash sites. they said, "i love your product. let's do a deal." they put us on their flash site. we sold through 50% of our product. they said, "we love it." how much was it, though? it was like 50 pieces. guys. this hurts. so, you guys, normally, if something's really great, people are lining up to buy it. they don't just say, "oh, yay. give me your card." maybe this isn't the right idea. i'm out. [ groans ] okay, well, thank you, lori. thank you. we appreciate it. one thing i want to say this. we haven't really gotten it out there.
we're at the point right now, this is like the jump-off point, you get in here now -- right over the cliff, baby. you're gonna be able to make a lot of money. you're going right down. you could make a lot of money on this, worldwide. we have to think about middle america, you know? in some places -- cuban: i like the idea, guys, but there's a difference between a product and a company. john: absolutely. you guys are a product. right. but you're a mom and a dad that has a good idea and is looking to turn it into a company. you're not there yet. you always have to run your business like there's someone else out there working 24 hours a day to kick your butt. but you're at work, and you're picking up the kids. you know what? i resent that. i'm not saying you can't make it work. full-time moms don't get enough respect in our culture right now. that's not the issue. wait, wait, wait. but that's not the issue. that's not the issue. the issue is, you're competing. right, because i'm a mom and i have to pick up my kids, that i can't also run a business? that's not what i said. what i said was, you're competing with other people that don't have the same limitations. so it's a limit to be a mother? that's nonsense. you're -- you're making excuses. the reality is, there aren't enough hours in the day. there's somebody who's working full time. yeah, absolutely. they're not cutting half the day off, right? they're not going to another job.
to think that that person working full time doesn't have an advantage is lying to yourself. i'm out. look, i have no problem with the fact that you're a mom and you're doing it part time and ivan's doing it part time. i just think it's a little too soon. i'm out. thank you. all right, thank you, robert. o'leary: the market has spoken, and it's basically telling you people hate this product. i hate it, too. if you keep investing in it, you're killing money. you don't want to do that to money. this is a bad idea, and it's got to go away. and you were my favorite. i'm telling you the truth! this sucks! i'm out. whew! is he still your favorite? not anymore. [ laughs ] good for you. [ laughter ] daymond, you're the only one left in here. i was -- i -- make some sense of it. o'leary: what are you gonna do, d.j.? john: so, i was rooting for you. that's why i was trying to set up, you know,
why it took three years. it could have been 2 1/2 years in development. but as everyone spoke, you not only, you know, didn't want to take any advice, but you objected, to the point where you seem very -- i'm all ears. i'm sorry. i -- i think we were open. when i was on the fence of investing, i just felt that we would spend more time arguing than anything else. that is just -- oh, man, not -- not so, no so. you actually considered investing? that is just my feeling. that's not gonna happen. how can we convince you otherwise? because we're -- we're a dynamic team. because you're not letting me speak now, either. okay. i'm out. oh, daymond. so, can we call you when we have some sales? come back to the tent in a couple years good luck, you guys. if you get there. many have proven us wrong. thank you. [ squeaking ] that's the sound of money. thank you. oh, i hated that product. can you imagine that every two seconds? greiner: oh, my god. no, i can't. i hated that product. i can't imagine it. this would make me crazy. we tried. yeah. i'm a stay-at-home mom. i'm trying to start a company.
[ voice breaking ] i feel like i can do this, and if, you know, a couple of men who have a ton of money don't see it, then they don't see -- they don't have the vision. but i'm not gonna let them stop me. ♪♪ in the future we'll travel to incredible places with the help of magical technology. but what about today? i want my magical future now. ♪♪ i have places to go. ♪♪
rocks to climb. ♪♪ sights to see. and flights to catch... i can't wait for what tomorrow will bring, but in the meantime, let's enjoy the ride... ♪♪ i have moderate to severe ulcerative colitis. so i'm taking zeposia, a once-daily pill. because i won't let uc stop me from being me. zeposia can help people with uc achieve and maintain remission. and it's the first and only s1p receptor modulator approved for uc. don't take zeposia if you've had a heart attack, chest pain, stroke or mini-stroke, heart failure in the last 6 months, irregular or abnormal heartbeat not corrected by a pacemaker, if you have untreated severe breathing problems during your sleep, or if you take medicines called maois. zeposia may cause serious side effects including infections that can be life-threatening and cause death, slow heart rate, liver or breathing problems, increased blood pressure, macular edema, and swelling and narrowing of the brain's blood vessels. though unlikely, a risk of pml--a rare, serious, potentially fatal brain infection--cannot be ruled out.
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hello, sharks. my name is mike quinn, and i'm the creator of the buffer bit. i am seeking $75,000 for 25% of the business. you know, before the buffer bit, i would spend 15, 20 minutes polishing my shoes with a shoeshine kit. the problem is, it's a hassle. you have somebody do it for you, and it's expensive. it's time to change shoe care, and the buffer bit is a game-changing product. all you need is the buffer bit and any cordless drill [ chuckles ] for a fast, world-class shoeshine. [ whirring ] but the buffer bit is much more than a shoe-care product. there's more? there's more. simply attach the natural pad, and the buffer bit transforms into a powerful automotive-detailing product. so, sharks, who wants to redefine their shine? [ laughter ] o'leary: wow. so, mike, all you've done is you've made a drill bit with fur on it... [ chuckles ]
...to replace an electric polisher. yes. mike, at the airport, i got my shoes shined, and the guy came out with a -- [ imitating drill ] and he was doing my shoes with the same thing. this already exists, doesn't it? well, it -- it exists -- an electric shoe polisher, and that was actually the concept of the -- of the invention. electric polisher's about $14.95. your bit is how much? a-a shoe polisher is much more than $14.95. how much are they? $50 to $100. cuban: and what do you sell these for? $19.99. and what does it cost you to make them? right now, it costs me $9 to make each one. the idea of taking a power tool to -- to my shoes, do you think guys are gonna do that? i think guys are gonna look for an excuse to use their cordless drill. [ laughter ] so true. i used to work in a menswear store. they always say you can tell a lot about a guy by his watch and if his shoes are shined. mike, could i try it? sure. yeah, absolutely. you want to shine my shoes, mark? you can't afford me, robert. and, by the way, i don't ever wear a watch, because some of us don't have to. greiner and john: ooooh! uh, w-what is -- [ mockingly ] oooh!
john: 3:00 in the schoolyard! oh, you want to do it here? okay, great. yeah. [ laughter ] there you go. [ whirring ] does it always have that pungent smell like dead -- it doesn't smell. oh, that's 'cause your shoe's off. greiner: that's mark's foot. [ laughter ] [ whirring stops ] [ laughs ] [ whirring ] [ laughs ] does it work on that? [ laughter ] cuban: this actually works pretty well. yeah. yeah, no. it sure does. all right, well, all right. we get it. we get it. do you have sales, mike? well, i just started. we're nine months into it. sales of, um, $30,000. mike, is there anything proprietary about this? yeah. well, we have a provisional patent granted. have you tried selling it in a hardware store? i did. actually, i took it to two hardware mass retailers. i brought it in there just as a guy off the street. they liked it a lot. and what happened? well, they didn't like the fact that i was working out of my basement on this project. mike, i think you've got a cool product. i really do. i think you can do a lot of unique things.
but honestly, you're not a company yet. there's no structure to you at all. and i don't think there's enough upside there where i can get a return as an investor, and so, for that reason, i'm out. thank you. greiner: for me, i don't know enough about how many men polish their shoes. it seems it's a little bit of a dying breed because people are going more and more casual. so i'm out. thank you. mike, i just don't see the application. i'm out. thank you. o'leary: mike, i'll tell you a little story. i'm a member of a group called the chevaliers du tastevin. it's a secret society of burgundy drinkers. [ laughter ] and every 90 days, somewhere in the world, we gather, and we drink wines as old as 1902. but you can't do it unless you're wearing your tastevin, which is a tasting cup made of pure silver. if the cup is dirty, you're rejected from the meeting, no matter where it's held.
could be paris, could be rome. you can't get in. i can't believe i'm hearing this. i keep telling my wife, "you got to polish my tastevin." she says, "polish your own tastevin." [ laughter ] i actually think i could polish my tastevin with this. but, having said all that, i'm a buyer of it, but as an investor, i'm out. thank you. [ laughing ] what the hell is a tastevin? herjavec: mike, i'm not a member of a secret society. i don't even know what a tastevin is. i do know kevin is full of crap. [ laughter ] you will not be invited to the next meeting. i know mark made fun of the fact he doesn't have to wear a watch, but, you know, i think no matter how successful you get, it's always the little things that count. showing up on time, having a clean pair of shoes -- goes a long way. to be successful, you got to look successful in most things. until you become mr. cuban. then you can look like a slob. hey, i've always been a slob. it's worked. but i respect someone with a good-looking pair of shoes. just -- i don't know at this point whether you've developed the market or not,
and i wouldn't buy this product. i'm out. all right. thank you. good luck. and that's a clean pair of shoes. all right, thank you. [ whirring ] cuban: how do you spell "testavant"? o'leary: tastevin. yeah, what was that? chevaliers du tastevin. google it right now. so, you get kicked out of your little club if your cup is dirty? yes, it's -- it's the very famous silver cup you wear around your neck. i-i'm just curious. obviously, you're not a member. "ever since its creation in 1934, the confrérie"... it's real? imagine 20 kevin o'learys with the little cups around their necks. no, no, it's 80. it's 80. "the order has some 12,000 knights of chevaliers worldwide." you said there was 80. in our chapter. [ laughter ]
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hello, sharks. my name is tim talley. i'm from rochester, new york. my company is u-lace, and i'm seeking $200,000 in return for 25% of my company. if you have kids, you probably already know this, but the average american kid owns over 10 pairs of sneakers. but why do they need so many pairs of sneakers? well, it's really quite simple. they need the variety to express their own sense of style and to hook up with other things in their wardrobe. but what if those same pairs of sneakers could quickly, easily, and inexpensively be customized again and again and again, turning each of those pairs of sneakers into millions of pairs of sneakers? well, sharks, i'm here today with some awesome news. my product, u-lace sneaker customizing laces, makes all of this possible and more. u-laces are elastic shoelace inserts that enable users to lace multiple colors and patterns into their sneakers. u-laces pop in and out with ease, which means you can swap colors or change patterns as often as you like. what's more, once laced with u-lace, sneakers instantly become slip-ons
that never need to be tied. so you get to say hello to customization, hello to slip-ons, and bye-bye to bows that come untied. u-lace truly puts the "kick" back into kicks. sharks, i have a pair of sneakers for each of you today. oh, cool. all right! this is the way to start off a pitch. [ laughter ] robert, i believe these are your home-city colors. thank you. lori, these are cool fashion metallics. i like them. kevin, these are your country colors. o'leary: yeah. daymond, your high-school colors. nice! and yes, mark, these are the mavericks' colors. yes, sir. school colors, team colors, fashion colors, country colors, whatever colors -- with u-lace, the possibilities are endless. sharks, we have an award-winning product, we have the market's attention, and we have global distribution. what we really need now is a really cool partner like you. so, you know what they say -- "if the shoe fits, invest." that's interesting. so, it works by just simply putting one in one side like this,
and then just going right through underneath the top. absolutely. so, there's just this little hook piece. just a little tab. i take out the existing lace, and i replace it with yours? you take out the existing lace and replace it with ours. show us the packaging. give us a few packages to look at. so, tim, how do i tighten it once it's in? the cool thing about it is that you can fine-tune the fit um, by -- by changing the design pattern. so, there are design patterns that are very loose. we have skateboard kids that like to have a very loose fit. oh, so you can stretch it across two holes for extra tightness? you get to choose any two eyelet holes on the shoe right. oh, i see. per -- p-per u-lace. how much? we sell that pack for $3.49. and what does it cost you to make it? 35 cents. yes! [ greiner laughs ] nice. walk us through your distribution strategy. well, we have a global distribution network. basically, they pay for everything. they order through us. we -- we make about a 50% profit margin just on that. and you've been in business how many years? we started shipping this product in 2009, and then we've been -- what will you do this year in sales?
this year, through august, we're at $193,000. $193,000? yes. tim, why isn't it more? yeah. you've got distribution in place. after four years, why isn't it more? i'll tell you why it isn't more. we came out in 2009. we were named number-one hot new product in japan in 2010, and then it just took off. so we did about $300,000. but then what happened was the earthquake and tsunami came and buried our japanese distributor. why do the japanese love it and the americans don't? i invented the product in japan. i was actually trendspotting in japan when i came up with the idea. i left my job, and i went to japan, specifically going to find an idea. what was your job? i ran the biggest business for new era cap company. right. for new era. so that's why you were trendspotting, 'cause that's -- that's not a word that a normal person uses unless they're in the fashion industry. so, tim, my little risk antenna just went up because trendspotting is meaning that a trend comes, peaks, goes. no, that's a fad. [ laughter ] well... no, that's a fad. you got him! ba-bam! greiner: well said. that's a fad. a trend -- a trend can last for many, many, many years.
yeah, but poo-poo happens, and all of a sudden, it slowed down, but it hasn't taken off stateside yet. but the pricing wasn't necessarily right, and the packaging. we were putting more product in the package than, you know, enough product. like, there were 16 segments in the package, so -- cuban: okay. and you were selling that for how much? $7.99. and you're saying that was too high a price because you had too much product in there. absolutely. how much is it now? or maybe people didn't want that many all at once. that's right. so, what we saw as soon as we reconfigured this product was we saw our sales going up to about six to eight packs per order. it made it kind of a no-brainer. and we're gonna do $400,000 this year. are you not selling in america? we're not selling in america beyond our own online and a couple big online sneaker retailers. why is that, tim? i think because we didn't have the product configuration right, and i really wanted to fine-tune and test this. i thought, "we got one chance here." the sneaker business is a $60 billion business. don't start doing that, man. no, no, no. i'm just saying it's a big business. this should be sitting at the register at every large retailer of sneakers. john: how many competitors are out there? there's a couple other products out that are made out of, like, silicone or rubber.
is nobody doing this where you have that little piece on the end? absolutely not, because we have -- we have a patent. this is not that easy to do, by the way. um, it's actually pretty easy once you get used to kind of pulling them in and out. yeah, once you got it in -- you're right, the first time is hard. what if i wanted to play a pickup game? can it hold up, you know, so i can play in these? you know, i can play in these. o'leary: i rarely do this, but i'm gonna ask daymond for some advice. yes, you should bathe more often, 'cause i sit next to you. [ laughter ] so, bottom line is what? how long is this gonna stay trendy? it could be forever. you think that? this could be a long player. i'm interested. no, you know what? matter of fact, i don't think this is gonna last much longer. [ laughter ] tim, what's the projection for u-lace? we believe we can do almost $2 million next year. what?! i believe so. it's a big ramp, my friend. tell me -- tell me how -- tell me what the game plan -- we basically want to go back to those guys, to -- to the big retailers that are very interested, and maybe not t--
try to take off a big a bite as they wanted us to take off. but, tim, the key to the strategy is getting a couple large retailers. that's the only way you're gonna get to $2 million. absolutely. i'm gonna make this easy, because, you know, i like you. i think you're a hero. i think the idea -- he's not a zero? he's not a zero. well, that's good. my mom will be happy to hear that. he's a hero. but one of the problems i have with this -- i don't find it very comfortable, because i'm feeling these little pieces underneath hitting the top of my foot. we -- we recommend that you wear a shoe with a padded tongue. it is a -- it is a fashion product. most kids don't care, though, right? the kids that are doing this, like -- kids don't. i mean, they're either not -- their -- their shoelaces are completely undone, and they're trying not to trip over them, right? yeah. i just feel that this is not probably the right -- so, before you -- before you totally drop out, just -- i want to tell you a little bit more about me. um, you know, when i was in college, chairman of the engineering department called me in and said, "tim, you're outclassed. "you're never gonna get an engineering degree. "you don't have to an engineer. you can be an electrician.
you know, why don't you drop out of school, save your parents some money --" this is your prof trash-talking? this is not a good professor. "join the army and learn a trade." and what i did was i got rid of stuff that didn't matter. i stopped running track 'cause i wasn't gonna make money running track. and three years later, when he passed me my diploma, he said to me -- he said, "tim, i'm sorry i didn't believe in you as much as you believed in yourself." i think this will do extremely well. i just don't think, for me, um, this is the right product. i'm out. look, tim, i love that story. i think if so many other people just learn from that -- get rid of the stuff that doesn't matter in your life and focus on the stuff that does, right? well -- laser-like focus, my friend. i got rid of my apartment. i live in a rented room in a friend's house. i used to drive a drop-top porsche. i mean, i was pretty well compensated. i got rid of my car. i got lean because i believe in this and i know what it can be. i just need the right partners.
so, you've kept me in this entire time simply because of you. what i think you need is you need somebody with the experience that's gonna help you. and look -- there are sharks here that have better experience in this area than i do. i'm out. understood. daymond. fashion. i'm a little -- yeah, i'm-a get a little nervous, 'cause -- greiner: yeah. daymond, this is right up your alley. maybe he's being quiet 'cause he doesn't like it. maybe he's being quiet 'cause he's taking it all in. i'm -- i'm just thinking, you know? greiner: he's processing. okay. i'm going to...
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let's enjoy the ride... narrator: two sharks are out. tim has three more chances to make a deal. herjavec: daymond. fashion guru. i'm a little -- yeah, i'm-a get a little nervous, 'cause -- yeah. daymond, this is right up your alley. okay. i'm going to... t-the real challenge i have is i'm a partner in a company called snkrbst,
and i just -- i'm a partner, and we just bought the -- the old shoe company etonic, all right? so you're conflicted? so, i'm sitting here, thinking, do i dump the guys i just acquired or not? but it, ethically, would be wrong, and so i -- when has that ever stopped you before? [ laughter ] it's a conflict... so, regretfully, i'm out. i appreciate that. you know, i understand. you know, business is -- you know, you want -- i want partners that would speak up and say that, you know? and, you know, that's how we are. we're -- we're straightforward with everybody. that's how i like to run my business. i don't... tim, you got two guys left. you got mark, and you got kevin. what can i say to you guys that you haven't heard that -- that would tip this for you? that's up for you to decide. i'm not a guy that's gonna quit on you. i'm a guy that's gonna, you know, work my fingers to the bone. this is how i do. i get up at 3:00 in the morning. i'm on the phone with my distributors over in europe.
i'm on the phone with asia. my job here is not to fight for you, but they wanted to know my opinion. you're the real deal. you're the real deal, and this is a real company, and that's why i was conflicted. so you don't have to speak for yourself. i'm gonna tell both of them -- this guy's the real deal. wow. that's quite an endorsement. i appreciate that. i appreciate that. that's quite an endorsement, daymond. i'm just -- but you know what i say -- never take advice from someone who doesn't have to live with the consequences. that is true. [ laughs ] he's not putting up any money. um, i don't know what this company's worth right now. i like it, but i don't know what it's worth. make an offer. all right, i'll give you $200,000 for 50%. first of all, i-i appreciate the fact that there is an offer on the table. mm-hmm. um... i really don't know what it's worth. it's -- it's a shot with you rebirthing an idea that was proven in a foreign market. that's the way i look at it. mark? herjavec: $200,000, 50%, and you got mark over there really quiet.
i want to hear what you say to him. i'm -- i'm processing it as -- it shouldn't be a process, right? you already know the answer. i-i think it's a bit rich. well, come back with something. counter. i would be willing to go up to...35%. i'll do that deal. want to do that deal? let's do it. [ greiner laughs ] see, i like when i let him negotiate for me. [ laughs ] congrats, mark. all right. thank you, baby. congratulations. i really like it. the first thing we'll do is we'll get it as a mass premium and as a giveaway. i'll give them to all the guys to start wearing it, handing out. we'll put them in the mav shop, and we'll get that rolling. talley: awesome. thank you. great job, tim. greiner: great job. you did great. thank you, guys. a deal with mark is totally amazing. he's connected to sports, he's connected to licensing, so these are things that could make our brand huge,
so it's just -- just an awesome feeling. you didn't like it, eh? i loved it. it's a conflict. i own a company like this. mark, good one. ba-bam! ba-bam! narrator: in this episode of "american greed"... a mysterious plague is sweeping the country. carmichael: i got this strange headache, like a headache i've never had before. narrator: hundreds of people are falling victim to a devastating illness. it felt like my head was going to explode. elliott: i was begging for death. i wanted to die. the pain was relentless. narrator: and 100 people will die. [ crying ] he was gone. just gone. a man who 18 days ago had been loving life -- to nothing.