Week 12

(man) THE SHARKS ARE BACK. THEY'RE LOOKING FOR THE BEST PRODUCTS AND BUSINESSES AMERICA HAS TO OFFER, AND TONIGHT GUEST SHARK LORI GREINER JOINS THE TANK. I TREAT ALL OF MY PRODUCTS AS THOUGH THEY WERE MY BABIES. HOPEFUL ENTREPRENEURS COME TO THE SHARK TANK SEEKING AN INVESTMENT TO START, GROW, OR SAVE THEIR BUSINESSES. HOW MANY HAVE YOU SOLD? 50. (Kevin and Daymond) WHOA! (chuckles) DANG. IF THE SHARKS HEAR A GREAT IDEA, THEY'RE READY TO INVEST, USING THEIR OWN MONEY... I LIKE CASH FLOW. AND FIGHT EACH OTHER FOR A PIECE OF THE ACTION. YOU HAVE TO IGNORE THEM. TV LADIES ARE A DIME A DOZEN. YOU JUST SIT BACK AND WATCH ME MAKE ME MONEY. I'VE BEEN DOING RETAIL FOR 25 YEARS AND BRANDING. I'VE FORGOTTEN MORE THAN SHE HAS LEARNED. OH, COME ON. THAT WAS NASTY. BUT FIRST THE ENTREPRENEURS MUST CONVINCE A SHARK TO INVEST THE FULL AMOUNT THEY'RE ASKING FOR, OR THEY'LL WALK AWAY WITH NOTHING. THIS IS NOT A GOOD IDEA. SHH! IT'S SINK OR SWIM. I WANT TO PLAY WITH WINNERS. WHO ARE THE SHARKS? THEY'RE FIVE POWERFUL, SELF-MADE INVESTORS WORTH BILLIONS. KEVIN O'LEARY IS A VENTURE CAPITALIST WHO STARTED A SOFTWARE BUSINESS IN HIS BASEMENT, WHICH HE EVENTUALLY SOLD FOR $3.2 BILLION. LORI GREINER IS THE QUEEN OF QVC. SHE HOLDS 108 PATENTS AND HAS LAUNCHED OVER 300 PRODUCTS GROSSING $500 MILLION IN WORLDWIDE RETAIL SALES. DAYMOND JOHN IS A FASHION AND BRANDING EXPERT WHO GREW HIS HOMEMADE HATS AND T-SHIRTS INTO THE GLOBALLY RECOGNIZED FASHION BRAND FUBU. ROBERT HERJAVEC, THE SON OF AN IMMIGRANT FACTORY WORKER, IS NOW A TECHNOLOGY MOGUL WHO SOLD HIS FIRST INTERNET COMPANIES FOR OVER $350 MILLION. AND MARK CUBAN, A SELF-MADE, BILLIONAIRE ENTREPRENEUR AND THE OUTSPOKEN OWNER OF THE 2011 NBA CHAMPION DALLAS MAVERICKS. ♪♪♪ MY NAME IS BARBARA LAMPUGNALE, AND I LIVE IN WEST HARTFORD, CONNECTICUT. I AM A MOTHER OF SIX GIRLS, TWO OF WHICH HAVE GONE OFF TO COLLEGE. (chuckles) MY GIRLS AND I ABSOLUTELY LOVE DOING FUN THINGS TOGETHER, SO ON SUNDAY NIGHTS, IT'S BECOME TRADITION THAT WE ALL GET TOGETHER AND PAINT EACH OTHER'S NAILS. DO MY TOESIES. IT WAS ON ONE OF THESE NAIL NIGHTS WHERE MY IDEA JUST HIT ME. WOW. WITH THE ECONOMY BEING THE WAY THAT IT IS, IT'S BEEN REALLY TOUGH. WE'VE HAD SUCH STRUGGLES, COMING VERY CLOSE TO LOSING OUR HOUSE. I'VE GONE SO FAR AS TO, UM... (chuckles) SELL MY ENGAGEMENT RING, AND WE'VE JUST INVESTED WHAT WE COULD INTO THIS BUSINESS. WE HAVE COME TO A POINT WHERE WE'RE AT THE END OF OUR RESOURCES, AND AN INVESTMENT FROM THE SHARKS WILL TRULY CHANGE THE LIVES OF MY FAMILY. ♪♪♪ MY NAME IS BARBARA LAMPUGNALE, AND I'M THE OWNER OF DUALITY COSMETICS. I AM SO EXCITED TO SHARE WITH YOU TODAY MY REVOLUTIONARY, NEW PRODUCT, THE NAIL PAK. I AM ASKING FOR $50,000 IN EXCHANGE FOR 20% EQUITY IN MY COMPANY. I AM A MOTHER OF SIX DAUGHTERS. TRADITIONALLY, ON SUNDAY NIGHTS IN OUR HOUSE, IT'S WHAT WE CALL "NAIL NIGHT." IT'S WHERE MY DAUGHTERS AND I ALL GATHER AND WE PAINT EACH OTHER'S NAILS. ON ONE OF THESE NIGHTS, I TOOK A COMMON NAIL POLISH BOTTLE, PUT IT ON TOP OF A SMALL PLASTIC CONTAINER, AND THE INSPIRATION HIT ME. THIS... WAS TOO MUCH STUFF. THE NAIL POLISH, THE PADS, THE REMOVER, AND THE FILES-- ALL... (clatters) TOO MUCH STUFF, SO, VOILA, THE IDEA FOR THE NAIL PAK WAS BORN. I THOUGHT, WHAT COULD BE MORE CONVENIENT AND SIMPLE THAN PUTTING ALL FOUR OF THOSE THINGS-- THE NAIL POLISH, THE PADS, THE REMOVER, AND THE FILE-- IN ONE EASY-TO-USE CONTAINER? THE NAIL PAK HAS 0.8 OUNCES OF NAIL POLISH ON THE TOP. WHEN YOU REMOVE IT FROM THE BOTTOM, IT HAS A NAIL FILE. WHEN YOU PULL THIS TAB, YOU WILL FIND COTTON PADS THAT ARE PRE-MOISTENED WITH NAIL POLISH REMOVER. WITH THE NAIL PAK, WE CAN MAKE CHANGING YOUR MANICURE AS EASY AS CHANGING YOUR MIND. WHAT ABOUT THE PRICING ON THIS? TELL ME WHAT IT COSTS TO MAKE ONE BOTTLE AND HOW MUCH YOU SELL IT FOR. RIGHT NOW, BECAUSE I'M ONLY DOING A RUN OF 10,000, IT'S JUST A LITTLE OVER $3. $3. AND WHAT DO YOU SELL IT FOR? $14.99. OOH. I LIKE THOSE MARGINS. SO WOULD THE AVERAGE WOMAN THINK THAT'S EXPENSIVE, THE $14.99? I DON'T BELIEVE SO, NOT IN, UM, SOME OF THE COSMETIC-TYPE STORES. IT'S RIGHT ON PAR, BUT YOU'RE ALSO GETTING A 3-IN-1 VALUE. RIGHT. C-COULD I SEE IT? YEAH, CAN I SEE IT, TOO? OH, ABSOLUTELY. I'M SO SORRY. WHEN DID YOU APPLY FOR YOUR PATENT? APPROXIMATELY NINE MONTHS AGO. DID YOU CHECK TO SEE IF ANYBODY ELSE HAS MADE ANYTHING ELSE LIKE THIS? ABSOLUTELY. THE--THE MONEY THAT I'VE PAID MY PATENT ATTORNEY, HE'D BETTER HAVE DONE ALL OF THAT AND MORE. (chuckles) AND--AND THERE WAS NOTHING OUT THERE LIKE THIS THAT HE COULD FIND? ABSOLUTELY NOTHING. HOW MUCH DO YOU HAVE INVESTED, BARBARA? PERSONALLY, WE'VE INVESTED ABOUT-- JUST UNDER $300,000. (Kevin and Daymond) WHOA! (Mark chuckles) DANG. AND DO YOU HAVE ANY OUTSIDE INVESTORS? NOT YET. $300,000? IT'S JUST ME. YES. (Robert) WOW. IT'S THE MANUFACTURING. I'M SURE LORI COULD ATTEST TO THAT. YEAH. THAT'S--THAT'S A LOT OF CASH, BARBARA. WHAT DO YOU DO FOR A LIVING? I'M A STAY-AT-HOME MOM CURRENTLY. (laughs) AND YOU JUST SAVED IT ALL UP OVER TIME? IT-- WELL, MY HUSBAND IS A REAL ESTATE DEVELOPER, SO FOR QUITE A LONG TIME, WE WERE DOING VERY WELL. AND ACTUALLY THAT'S WHY I'M HERE NOW, BECAUSE THE LAST COUPLE YEARS, IT'S BEEN EXTREMELY CHALLENGING FOR OUR FAMILY. BARBARA, DO YOU HAVE ANY CHANNEL IN DISTRIBUTION OR RETAIL THAT'S AGREED TO TAKE IT ON OR GIVE YOU AN ORDER? I HAVE REALLY JUST STARTED TALKING TO THEM WITHIN THE LAST MONTH, 'CAUSE I FIND WITH THE PRODUCTS THAT YOU CAN EXPLAIN IT AND IT SOUNDS LIKE A REALLY GREAT IDEA, BUT UNTIL YOU ACTUALLY SEE IT, FEEL IT, TOUCH IT, IT MAKES-- IT HAS SUCH A WOW FACTOR TO IT. SO YOUR PREMISE OF DEMAND IS BASED ON YOUR OWN FAMILY EXPERIENCE, YOUR SIX DAUGHTERS AND YOURSELF ON NAIL NIGHT SUNDAYS. ARE THOSE ALL YOUR OWN DAUGHTERS? THE--EVERY SINGLE ONE OF 'EM. WELL, YOU LOOK TERRIFIC. THANK YOU. GOOD GENES. (laughs) (Robert laughs) (laughs) WHAT--WHAT-- ARE YOU GONNA DATE HER OR INVEST IN HER? I'M JUST--I'M JUST SAYING... YEAH, RIGHT. BUT--BUT I WANT-- I DON'T THINK MY ITALIAN HUSBAND WOULD LIKE THAT VERY MUCH. (Robert) YEAH. (Lori) DREAM ON. COME ON. YEAH. (Kevin) THE PREMISE OF THIS BRAND IS NOT NECESSARILY THE QUALITY OF THE NAIL POLISH ITSELF. IT'S THE CONVENIENCE FACTOR THAT YOU'RE PROVIDING BY PUTTING THE PADS UNDERNEATH THE BOTTLE. I'M NOT SAYING IT'S BAD. MM-HMM. I'M JUST WONDERING, WHERE'S THE PROOF? YOU KNOW, I'M A SKEPTICAL INVESTOR, BARBARA. I SEE. I WANT TO KNOW THAT IT'S GONNA WORK, NOT JUST BECAUSE YOUR SIX DAUGHTERS AND YOURSELF HAD A GREAT TIME ON A SUNDAY NIGHT WITH IT. RIGHT. NOW IF THIS DOESN'T WORK, YOU'VE BLOWN $300,000, RIGHT? BUT I DON'T LOOK AT IT NEGATIVELY LIKE THAT. NO, NO. I'M NOT TRYING TO BE NEGATIVE. (Mark) AND YOU SHOULDN'T. AND YOU KNOW WHAT? YOU SHOULDN'T, RIGHT? RIGHT. BARBARA, I CAN'T ADD ANY VALUE WITH THIS. I MEAN, THE--THE THOUGHT OF SPENDING $300,000 BEFORE YOU HAVE ORDERS... MM-HMM. WOW, YOU GOTTA HAVE SOME, UH, GUTS TO DO THAT. THIS ISN'T AN INVESTMENT FOR ME. I'M OUT. BARBARA, THE CHALLENGE I HAVE IS THAT RIGHT NOW IT'S JUST YOU, RIGHT, AND SO YOU'RE GONNA NEED A BIG SUPPORT TEAM IN ORDER TO GET IT WHERE YOU NEED TO GO. I'M NOT THE GUY TO HELP YOU BUILD THAT INFRASTRUCTURE AND SUPPORT TEAM TO GO OUT AND SELL THIS PRODUCT, AND FOR THAT REASON, I'M OUT. IT'S GREAT THAT YOU GOT TO THIS POINT, BUT I DON'T KNOW IF IT SELLS. YOU KNOW WHAT I NEED? I WANT SOME DISTRIBUTION. WHAT ARE YOU GONNA DO WITH THIS, LORI? WHAT AM I GONNA DO WITH IT? YEAH. (laughs) WHAT ARE YOU GONNA DO WITH IT, KEVIN? NO, BUT IF YOU TOLD ME YOU WERE GONNA PUT IT ON QVC, I MIGHT GET INTERESTED IN FUNDING SOME OF IT. THAT'S MY POINT. IT NEEDS DISTRIBUTION. WELL, HERE'S THE THING. IF I'M GONNA PUT IT IN ON QVC, I'M NOT GONNA NEED YOUR HELP. WELL, MAYBE YOU DO... EXACTLY. BECAUSE YOU HAVE THE SAME RISK I HAVE. WHY? WELL, LOOK, YOU MAY BE A GREEDY SAVAGE, BUT YOU MAY MAKE A BIG MISTAKE. (chuckles) I'M NOT WORRIED ABOUT IT. I'M NOT WORRIED ABOUT WHAT-- YOU TELL HIM, LORI. IF I DECIDE TO GO IN ON THIS, I CAN DO IT MYSELF. WELL, THEN WHAT ARE YOU DOING? BECAUSE MAYBE WHAT I'LL DO IS-- I'M GONNA MAKE YOU AN OFFER. THEN I MAY HAVE TO BID YOU UP. I'LL MAKE YOU PAY MORE. I'M TELLING YOU... I'M NOT AFRAID. DON'T MESS WITH MR. WONDERFUL. I-I'M NOT-- (Mark) HE'S ALL TALK AND NO BITE. I'M NOT WORRIED. YOU--YOU JUST SIT BACK AND WATCH ME MAKE ME MONEY. LET'S SEE. THERE YOU GO. LET'S SEE WHAT HAPPENS. OKAY. ALL RIGHT, SO I LIKE THIS. THANK YOU. I CAN DO MILLIONS OF THIS FOR YOU ON QVC AND EVERYWHERE ELSE. SO HERE'S MY OFFER. I'M GONNA GIVE YOU THE $50,000, AND I WANT 51% IN THE COMPANY... (scoffs) WOW. BECAUSE I'M GONNA TAKE THIS, AND TOMORROW MORNING, YOU AND I ARE GONNA GET ON THE PHONE AND WE'RE GONNA STRATEGIZE WHAT WE'RE GONNA DO IMMEDIATELY WITH THE 10,000 UNITS THAT YOU ALREADY HAVE SITTING THERE. I WILL GET THAT ON MY SHOW. WE WILL LAUNCH IT. WE WILL BE A HUGE SUCCESS, AND I GIVE YOU ONE CONDITION. YOU READY? OKAY. THE ONE CONDITION IS THAT THE NIGHT THAT I LAUNCH IT, YOU GET YOUR ENTIRE FAMILY, ALL THOSE SIX DAUGHTERS OF YOURS, TOGETHER, YOU THROW A HUGE PARTY... (chuckles) AND YOU HOOT AND HOLLER AND DRINK A HUGE GLASS OF CHAMPAGNE WHEN YOU SEE THAT "SOLD OUT" SIGN COME UP ON AIR. ALL RIGHT. I HAVE AN OFFER FOR YOU. THAT WOULD WORK. I'LL GIVE YOU THE $50,000 FOR 40%. THEN I'LL JUST CALL HER. (laughs) (Mark laughs) YEAH. I DON'T KNOW. THIS SOUNDS LIKE A PERSONAL THING. BUT HE'S NOT GONNA GET IT ON AIR IMMEDIATELY... (laughs) I'LL JUST GO TO THEIR COMPETITOR. AND HE DOESN'T HAVE THE FOLLOWING, THE MILLIONS OF VIEWERS. I'LL JUST GO TO-- I'LL JUST GO TO THEIR COMPETITOR. THERE'S ANOTHER ONE THAT DOES THIS, TOO. BARBARA, I R--I RARELY-- NO, NO. LET ME JUMP IN. I RARELY SAY THIS, BUT SOMETIMES IT'S BETTER TO OWN 49% OF SOMETHING THAT'S SELLING THAN 100% OF A PURE IDEA. EXACTLY. (Kevin) HE'S NOT WRITING YOU A CHECK. IT'S VERY INTERESTING ADVICE. IT'S EXACTLY WORTH THAT-- NOTHING. VERY INTERESTING MOMENT FOR YOU. WHAT ARE YOU GONNA DO? ♪♪♪ ♪♪♪ TWO SHARKS ARE OUT, AND BARBARA HAS TWO OFFERS ON THE TABLE, ONE FROM LORI AND ONE FROM KEVIN. (Lori) LET ME TELL YOU ONE THING FIRST. I TREAT ALL OF MY PRODUCTS AS THOUGH THEY WERE MY BABIES, AND I PUT MY HEART AND SOUL INTO EVERYTHING. I WILL TREAT YOUR PRODUCTS EXACTLY LIKE ONE OF MY OWN, AND THAT MEANS, ACTUALLY, THAT I WILL WATCH EVEN CLOSER, BECAUSE I WILL FEEL RESPONSIBLE TO YOU AND TO YOUR MAKING BACK YOUR $300,000 AND TO YOU BEING REALLY SUCCESSFUL, SO ALL OF THAT WILL GO INTO WHAT I DO. TV LADIES ARE A DIME A DOZEN. THERE'S MANY COMPETITOR-- OHH. EXCUSE ME. LET ME SAY WHAT I WANT TO SAY. THAT'S SO NOT TRUE. THERE'S LOTS-- LOOK, I'M JUST SPEAKING THE TRUTH HERE. THERE'S LOTS OF PEOPLE THAT CAN GET YOU ON SHOPPING CHANNELS, BECAUSE THERE'S MORE THAN ONE. THAT IS SO WRONG. THAT'S WHAT MAKES AMERICA GREAT. THERE'S MORE THAN ONE. THERE'S ALWAYS COMPETITION, SO THE DECISION YOU HAVE TO MAKE, BARBARA, IS, SHOULD YOU GIVE UP CONTROL OF YOUR BABY? 51%. (chuckles) I LOVE THAT. "BABY." THAT MEANS THE DECISIONS ARE NO LONGER ONE THAT YOU MAKE ALONE, OKAY? RIGHT. I DON'T NEED TO HAVE CONTROL IN THIS SITUATION, BECAUSE I TOTALLY TRUST YOUR DECISION-MAKING. YOU'VE GOT IT HERE. I'M A FINANCIAL INVESTOR. YOU NEED MONEY. NOW WHAT I'M PREPARED TO DO IS GIVE YOU THE SAME OFFER FOR 40%. THEN I'LL CALL THE SHOPPING CHANNELS WITH YOU. DONE THAT BEFORE, SO LOTS-- AND THEY'LL HANG UP WHEN THEY HEAR HIM. WELL, MAYBE THIS ONE WILL, OR MAYBE ANOTHER BUYER WILL UNDERSTAND THE OPPORTUNITY, AND WE'LL GO TO THEM. I'VE SOLD LOTS OF STUFF ON SHOPPING CHANNELS IN MY CAREER, ALL KINDS OF PRODUCTS, FROM CHILDREN'S SOFTWARE... AND IT WORKS. I KNOW HOW TO DO IT. NOW, DAYMOND, YOU'VE GOT RETAIL. YOU WANNA COME IN WITH ME ON THIS? (Lori scoffs) I'VE BEEN IN THE SHOPPING WORLD, SHOPPING CHANNEL WORLD, FOR 15 YEARS. YOU TALK LIKE IT'S NOTHING. MOST PEOPLE FAIL THAT GO ON, BUT-- NOT ME. I DON'T FAIL. YEAH, YOU WILL FAIL. BUT, SEE, WE DON'T-- WE DON'T--WE DON'T FAIL-- YOU KNOW NOTHING ABOUT NAIL POLISH. WAIT A MINUTE. I'M NOT GONNA SELL IT. WAIT, WAIT, WAIT, WAIT, WAIT. I'VE BEEN ON FOR 15 YEARS. I'M NOT GONNA SELL IT. BARBARA'S GONNA SELL IT. YOU CAN'T JUST CALL UP A BUYER AND SAY, "HEY..." NO. WE JUST TAKE THE 10,000 UNITS, PUT IT INTO DUTY-FREE, AND THEN LICENSE THE REST TO AVON, AND WE WON'T NEED A SHOPPING CHANNEL, SO-- AND THEY TALK LIKE IT'S SO EASY, AND YOU KNOW IT'S NOT. YEAH, THAT'S 'CAUSE WE'VE DONE IT BEFORE. WE'VE DONE IT BEFORE. I'M SORRY. WE'VE DONE IT. YOU--YOU KNOW WHAT? WE'VE DONE IT BEFORE. SORRY. YOU HAVE NOT. I KNOW ALL ABOUT QVC... WE'VE DONE IT BEFORE. AND I KNOW THE SUCCESS RATE. ALL RIGHT. BIG DEAL. I'VE BEEN DOING RETAIL FOR 25 YEARS... YOU DON'T KNOW HOW TO SELL ON TV, DAYMOND. AND BRANDING. I'VE FORGOTTEN MORE THAN SHE HAS LEARNED. I'M NOT WORRIED ABOUT THAT. THAT IS NOT-- OH, COME ON. I COULDN'T CARE LESS ABOUT THAT. IF YOU WANT TO DEAL WITH FINANCIAL GUYS... THE ISSUE IS THAT-- THE ISSUE IS THAT-- THAT SMOKE CIGARETTES AND DRINK SCOTCH AND TALK ABOUT THE MARKETS-- YOU KNOW WHAT, HONESTLY? (Daymond) UH, LISTEN, LISTEN, LISTEN. (laughs) A PIGGY BANK WITH TWO NICKELS IN IT MAKES WAY MORE NOISE THAN A FULL PIGGY BANK, AND I HAVE A LOT... (laughing) OH, MY GOD. OF KNOWLEDGE. THAT'S A GREAT ONE. MY PIGGY BANK IS AS FULL AS HIS PIGGY BANK. THAT WAS NASTY. YOU WANT TO DO THE DEAL AT 40%? (sighs) NEGOTIATE, BARBARA. WELL, THE--THE 51%... YOU'VE GOT THE LEVERAGE. DOES SCARE ME. I'M JUST... (speaks indistinctly) AND YOU SHOULD BE SCARED. WHAT DO YOU OFFER BACK TO ME, BARBARA? I LIKE THE 40%. I LIKE--I LIKE YOU. YOU WANT 40%? YOU SEEM LIKE A LOVELY LADY, AND I LIKE THE IDEA OF THE BIG PARTY AND ALL OF US GIRLS. WOW. ALL RIGHT. I'LL GIVE YOU $50,000. 40%. DON'T DO IT, BARBARA. DONE. YOU HAVE TO IGNORE THEM. THEY DON'T EXIST ANYMORE. YOU DON'T HAVE TO DO ANYTHING. RIGHT NOW. SAY YES, AND IT'LL BE ON QVC WITHIN MONTHS. YES. DONE. GOOD JOB, LORI. WOW. ***! OH, SHE GOT YOU, O'LEARY. (Kevin) NO, SHE DIDN'T. SHE GOT YOU. SHE HAD TO COME DOWN TO MY PRICE. THANK YOU. THANK YOU SO MUCH. (speaks indistinctly) I HOPE SO. I PROMISE YOU. THANK YOU. THANK YOU SO MUCH. YEAH. I'M SO EXCITED. (Robert) YEAH, SHE-- CONGRATULATIONS, BARBARA. CONGRATS. THANK YOU, EVERYBODY. WAY TO GO, LORI. GOOD JOB, LORI. WHOO! OH, YEAH. WELL, I WANT YOU ALL TO KNOW, I THINK THAT PRODUCT'S GONNA BE HUGE. (chuckles) YOU DO, SERIOUSLY? HUGE. IT'S GOING TO BE EVERYWHERE... WHY HASN'T SOMEBODY DONE THIS? LIKE THAT. EVERYBODY SAYS, "OH, THIS IS THE GREATEST IDEA IN THE WORLD. WHY DIDN'T I THINK OF THAT?" BECAUSE THEY DIDN'T. BECAUSE SHE DID. ♪♪♪ EARLIER THIS SEASON, WE WATCHED SHANE TALBOTT AND STEVE NAKISHER STRIKE A DEAL WITH KEVIN O'LEARY FOR THEIR COMPANY, TALBOTT TEAS, A DESIGNER TEA BRAND. FANTASTIC. THANK YOU. THANK YOU SO MUCH. THIS IS ABSOLUTELY GREAT. I'M NOT KIDDING. THANK YOU. LET'S GO SELL SOME TEA. (both) ALL RIGHT. (man) LET'S SEE WHERE THEY'RE AT NOW. (Steve) OUR EXPERIENCE WITH "SHARK TANK" HAS BEEN LIFE-CHANGING. ABSOLUTELY AMAZING THINGS HAVE BEEN HAPPENING TO US EVER SINCE. (all) HEY! WELCOME TO JAMBA! DAYMOND AND BARBARA ENDED UP JOINING FORCES WITH KEVIN AND CONNECTED US TO JAMBA JUICE. AND JAMBA JUICE LIKED OUR BUSINESS SO MUCH, THEY ENDED UP BUYING THE ENTIRE COMPANY. HEY, GUYS. HEY. WHAT'S HAPPENING? HEY, DAYMOND. (Shane) TODAY WE'RE MEETING AT OUR NEW HOME... (Steve) AND ALL THE KEY PLAYERS ARE GONNA BE THERE-- KEVIN, DAYMOND, JAMES WHITE, THE C.E.O. OF JAMBA JUICE. WE'RE VERY EXCITED. WELCOME TO THE TEAM. (Shane) THANK YOU SO MUCH. WE'RE THRILLED TO HAVE YOU HERE. AND I'M GONNA STAY ON AS VICE PRESIDENT OF INNOVATIONS, WHERE I'LL CONTINUE TO CREATE ALL-NEW PRODUCTS. NOW THE BOTTOM LINE IS THESE TWO GUYS ARE RICH NOW. (chuckles) "SHARK TANK" MADE YOU RICH. 'FESS UP. WE CAN'T DISCLOSE THE ACTUAL AMOUNT OF OUR DEAL, BUT WE CAN SAY THAT WE ARE VERY, VERY HAPPY. AND "SHARK TANK" HAS MADE US RICH. STEVE, LOOK. (laughs) OH, MY GOD. LOOK HOW GREAT THIS LOOKS. WOW. (Shane) TALBOTT TEAS WILL BE IN THE JAMBA JUICE STORES COMING VERY SOON THIS YEAR. TALBOTT TEAS AND JAMBA JUICE. OH, YEAH. (all) CHEERS. TO A BRIGHT FUTURE. A BRIGHT FUTURE. ♪♪♪ ♪♪♪ (man) NEXT UP IS DEBBIE BROOKS AND PAUL D'AURIAC WITH A LINE OF ARTFUL AND VERSATILE ACCESSORIES. HI, SHARKS. MY NAME IS PAUL D'AURIAC. AND I'M DEBBIE BROOKS, AND WE ARE THE OWNERS OF DEBBIE BROOKS HANDBAGS, A UNIQUE HANDBAG LINE BASED ON MY ORIGINAL ARTWORK, AND WE ARE SEEKING $540,000 IN EXCHANGE FOR A 20% EQUITY POSITION IN OUR COMPANY. DEBBIE AND I MET ON A BLIND DATE. OUR FIRST REACTION WAS... (laughs) YOU'RE NOT MY TYPE. FAST-FORWARD 15 YEARS. DEBBIE AND I ARE MARRIED TO EACH OTHER. WE HAVE A BEAUTIFUL BABY GIRL AND, OF COURSE, OUR BUSINESS. WHEN WE FIRST MET, I GOT FIRED FROM MY JOB, SO I SAID TO HIM, "I'M GONNA COME WORK FOR YOU, 'CAUSE IF WE END UP TOGETHER, "YOU'D BETTER MAKE A LOT OF MONEY, 'CAUSE NOW I'M A STARVING ARTIST." SO I WENT TO WORK FOR HIM, SELLING AIR CONDITIONING AND REFRIGERATION SERVICE CONTRACTS DOOR-TO-DOOR. BUT I KNEW ART WAS HER PASSION, SO I GAVE HER A CHECK FOR $5,000 FOR CHRISTMAS TO BUY A BOOTH AT UPCOMING ARTEXPO NEW YORK, AND THAT'S HOW WE LAUNCHED THE ART BUSINESS. THEN ONE DAY, MONEY GOT A LITTLE TIGHT, AND I COULDN'T AFFORD TO GO SHOPPING FOR A NEW HANDBAG, SO I MADE ONE, AND A WOMAN LOVED IT AND CHASED ME THROUGH AN AIRPORT. SHE SAID, "WHERE DID YOU GET THAT FABULOUS BAG?" AND, SHARKS, WE HAVE SOME OF THOSE ITEMS FOR YOU TO LOOK AT. THIS ONE WE MADE FOR GWYNETH PALTROW. THAT'S ONE OF MY FAVORITES. (Daymond) MM. THIS ONE WE MADE JUST FOR YOU IN MIND. OH, MY GOODNESS. THAT'S NICE. OH, THAT'S COOL. (Paul) SO I THOUGHT, IF THAT CRAZY WOMAN IN THE AIRPORT LOVED DEBBIE'S BAG SO MUCH, MAYBE WE SHOULD TAKE THIS TO A RETAILER, SO WE TOOK OUR LINE TO HENRI BENDEL'S ON FIFTH AVENUE, AND THAT'S WHERE WE LAUNCHED THE HANDBAG COLLECTION. NOW THROUGH ALL OF THIS, THERE'S ONE THING I LEARNED ABOUT WOMEN. JUST ONE? JUST ONE. (chuckles) WOMEN NEED A DIFFERENT LOOK TO MATCH EVERY SINGLE OUTFIT THEY OWN. THAT IS WHY I CAME UP WITH THE MAGNA FAB CONCEPT, SHORT FOR "MAGNA FABULOUS." WELL, THIS IS HOW THEY WORK. YOU JUST PUSH DOWN, AND THEY'RE ALL MAGNETIC. WE ARE GRATEFUL FOR THE SUCCESS WE'VE HAD TODAY, AND WE BELIEVE, TOGETHER, WITH YOUR INVOLVEMENT, WE CAN MAKE "DEBBIE BROOKS" A HOUSEHOLD NAME. (Robert) WHAT'S THE BUSINESS? ARE WE BUYING INTO JUST THAT HANDBAG WITH THAT OR ALL OF IT? IT'S THE ENTIRE DEBBIE BROOKS BRAND. AND WE ALSO HAVE TWO PATENTS. AND WHAT DO YOU WANT THE MONEY FOR? BASICALLY, OUR MAIN DISTRIBUTION CHANNEL RIGHT NOW IS JEWELRY STORES. WE'RE IN 1,000 JEWELRY STORES ACROSS THE COUNTRY. WE ARE TYPICALLY THE FIRST AND ONLY ACCESSORY ITEM SOLD IN THESE STORES. BECAUSE OF THE ECONOMY, THEY'VE BEEN VERY RECEPTIVE TO OUR PRODUCT CATEGORY, AND OUR SELL-THROUGH IN THAT JEWELRY STORE ENVIRONMENT HAS BEEN REMARKABLE. SO THE $540,000 IS TO DO A LITTLE BIT MORE OF WHAT WE'RE DOING ALREADY. OKAY, BUT, PAUL, THE VALUATION OF THE BUSINESS-- YOU'RE ASKING ME FOR $540,000 FOR 20%-- WE'RE ABOUT $2.7 MILLION IN VALUE. EXACTLY. MAKE ME EXCITED THAT THAT'S A GOOD DEAL. $1.2 MILLION IS OUR GROSS SALES FOR THE COMPANY. OUR GROSS PROFIT IS $685,000. WHAT DOES A PURSE LIKE THIS COST? THAT'S A $288 RETAIL PRICE POINT. AND WHAT'D IT COST YOU TO MAKE? SO WHOLESALE COST ON THAT IS $130 WHOLESALE. MARKUP AT RETAIL IS 2.2. (Robert) SO IS THAT A LOT, PAUL? LIKE, I-I DON'T KNOW. TO AN AVERAGE WOMAN-- ACTUALLY, IT'S-- IT'S VERY COMFORTABLE. IT'S INCREDIBLY COMFORTABLE. ARE YOU GUYS FAMILIAR WITH A BRAND CALLED "JUDITH LEIBER"? I'M SURE YOU ARE. (Lori) YES. OKAY. YES. THAT WAS A $2,000 TO $3,000 TO $5,000 RETAIL PRICE POINT. BUT THEY'RE ALL SWAROVSKI CRYSTALS. THEY ARE SWAROVSKI CRYSTALS. WHICH-- CORRECT. WHICH JUSTIFIES THAT ENORMOUS PRICE POINT. THE SECRET TO OUR SUCCESS IS, WE'RE SELLING IN A HIGH-END ENVIRONMENT, SO THE INITIAL PERCEPTION OF OUR LINE IN THAT ENVIRONMENT IS THESE SHOULD BE $1,000. SO, PAUL, $288 IS HIGH-END? COMFORTABLE PRICE POINT IN A JEWELRY STORE ENVIRONMENT. ALL RIGHT, SO I-I DON'T WANT TO-- CORRECT. AND THAT'S WHY YOU'RE IN JEWELRY STORES, RIGHT? (Debbie) YES. EXACTLY. PRECISELY. BECAUSE THE PERCEPTION IS COMPLETELY DIFFERENT. YEAH. YOU GOT IT. YOU'RE NOT IN-- IT AUGMENTS THE PERCEPTION. Y-YOU'RE NOT HEAD-TO-HEAD WITH EVERYBODY ELSE AND EVERY OTHER PURSE, RIGHT? EXACTLY. JEWELRY STORES ARE HAVING A TOUGH TIME RIGHT NOW BECAUSE THEIR ENTRY LEVEL PRICE POINTS ARE VERY HIGH. THEY NEED SOMETHING THAT'S GONNA BRING IN A NEW CUSTOMER AND THAT'S GONNA BUILD A COLLECTOR BASE AND GET THEM BACK INTO THAT STORE. THAT'S WHY THEY LOVE OUR LINE, AND THAT'S WHY WE'VE HAD TREMENDOUS SUCCESS WITH THE LINE. AS A WOMAN, DO YOU LIKE IT? DO YOU HATE IT? YOU DON'T WANT TO HURT THEIR FEELINGS? NO, I DON'T HATE IT. I LIKE SOME OF THEM, BUT HERE'S WHAT I'M STRUGGLING WITH. THE ONLY THING, TO ME, THAT IS UNIQUE AND DIFFERENT IS THE INTERCHANGEABILITY OF YOUR MAGNET. EXACTLY. AND I'D LIKE TO UNDERSTAND YOUR PATENT OR PATENTS. WE CREATED THIS FABRICATION MEDIUM, 3-DIMENSIONAL FABRICATION MEDIUM. OF THAT PROCESS, IT'S ENTIRELY PATENTED BY A UTILITY PROCESS. NOW WE HAVE A SECOND PATENT, OKAY, WHICH APPLIES TO THE ADHESION ASPECT OF THE MAGNA FAB, THE REMOVAL ASPECT. SO IT IS THE CLICK-ON AND CLICK-OFF. PRECISELY. PRECISELY. ANYBODY ELSE CAN MAKE A MAGNET THAT FITS ON THE FRONT OF A PURSE. YOU COULD MAKE A LOOK THAT'S SIMILAR, BUT YOU CAN'T MAKE THIS IDENTICAL LOOK... I DON'T THINK ANYBODY CARES. WITHOUT INFRINGING ON OUR PATENT. I-I THINK THERE'S A MILLION OTHER WAYS TO DO THAT. I'M OUT. BEFORE YOU WERE TALKING ABOUT PATENTS, YOU WERE TALKING ABOUT NUMBERS. PRECISELY. GET ME BACK THERE. OKAY. 28% UP 2011 FROM 2010. NO, BUT JUST GIVE ME THE FORECAST FOR 2011. NOW I DID A ONE-- TOP-LINE DOLLARS. $1.6 MILLION. $1.6 MILLION. WHAT AM I GONNA MAKE ON IT? UH, AT LEAST $400,000 NET. PAUL, WHY ARE YOU HERE? WHY DO YOU NEED THE $540,000? WE'RE READY TO TAKE THE COMPANY TO THE NEXT LEVEL. ONE-THIRD OF THAT WE WANNA PUT INTO DIRECT TO CONSUMER ADVERTISING. A THIRD OF THAT INTO TRADE ADVERTISING. THE FINAL THIRD WOULD BE TO INCREASE OUR INVENTORY LEVELS, WHICH ARE CURRENTLY AT $240,000. AS WE CONTINUE TO BUILD THE BRAND AND THE NAME RECOGNITION IMPROVES, OKAY, THERE ARE HUGE LICENSING OPPORTUNITIES. BUT THAT'S A LONG SHOT. YOU KNOW, THAT'S P-- THAT'S A LONG SHOT. I'M NOT A PURSE GUY, OBVIOUSLY. NOT EVEN A MURSE GUY. NOT EVEN A MURSE GUY? (Robert) WHAT'S A MURSE, MARK? A MAN PURSE. MURSE. UM... (chuckles) WOW. (Lori laughs) I LIKE THE FACT THAT YOU'RE SELLING IN JEWELRY STORES, RIGHT? YOU GO WHERE THEY AIN'T. I THINK THAT'S BRILLIANT. BUT AT THE SAME TIME, I JUST DON'T THINK THAT I CAN ADD THE VALUE THAT YOU WOULD NEED. SO FOR THAT REASON, I'M OUT. UM, SO... DEBBIE, I-I... I'M NOT REALLY SURE WHAT-- WHAT YOU'RE SELLING TODAY. THE BRAND IN ITS ENTIRETY. WE WANNA BUILD THE BRAND. (Robert) I... Y-YOU KNOW, I FOUND IT A LITTLE CONFUSING JUST FOR ME, MAYBE BECAUSE I'M NOT A... WHAT DID MARK CALL IT? A MAN PURSE? A MURSE PERSON, YES. (Debbie) A MURSE. A METROSEXUAL. (laughs) (Robert) YEAH, MAYBE I'M NOT A MURSE ENOUGH GUY. BUT I FOUND THE PRESENTATION A LITTLE CONFUSING. I'M NOT REALLY SURE WHAT'S IN THE BUSINESS. I'M OUT. THREE SHARKS ARE OUT. KEVIN AND LORI ARE DEBBIE AND PAUL'S LAST CHANCE TO MAKE A DEAL. UH, PAUL... AND DEBBIE... I LIKE CASH FLOW. ME, TOO. LOVE IT. I LIKE THE WAY IT ROLLS OFF MY LIPS. THAT'S WHY WE'RE IN JEWELRY STORES. I LOVE IT. CASH FLOW. SO... I LOOK AT THE CASH FLOW YOU'VE GOT, AND I SAY TO MYSELF, IN YOUR INDUSTRY-- FASHION-- WOULD ANYBODY EVER PAY 9.5 TIMES FREE CASH FLOW? AND I DON'T THINK THEY WOULD. CAN I INTERRUPT A QUICK SECOND? YOU MAY. IF YOU'RE NOT TAKING INTO ACCOUNT THE PATENT, THE I.P. VALUATIONS, THE PATENT VALUATIONS, THE COPYRIGHT-- OVER 1,000 ARTWORKS-- ANY OF OUR FIXED ASSETS, THEN YOU WOULD BE CORRECT. I THINK YOUR VALUATION IS... 100% TOO MUCH. YOU HAVE TO CUT THIS IN HALF. AND HAVING SAID ALL THAT, I LOVE DEBBIE'S DESIGNS... THANK YOU. AND I WILL PAY YOU FOR THIS. I'LL BUY THIS... WE FIGURED YOU'D LIKE THAT ONE. BECAUSE IT SAYS, "YOU'RE DEAD TO ME," AND YOU ARE, 'CAUSE I'M OUT. I THINK YOU'VE GOT A LOT OF PATENT ISSUES HERE. I'M NOT REALLY TRUSTING WHAT YOUR PATENT IS ALL ABOUT. AND FOR THAT REASON, I'M OUT. OKAY. WELL, THANK YOU VERY MUCH FOR YOUR TIME. THANK YOU. (Mark) THANKS, GUYS. GOOD LUCK. (Lori) GOOD LUCK. ACTUALLY, THE PATENT WASN'T EVEN TO SELL. THE PATENT DIDN'T COVER ANYTHING. NO. THERE'S A LOT OF GREAT PRODUCT OUT THERE, AND THESE AREN'T UNIQUE. THAT'S THE BOTTOM LINE. LORI WAS VERY INTERESTED IN OUR PATENT. I HOPE THAT DOESN'T MEAN SHE'S GONNA GO HOME AND KNOCK US OFF NOW. SHE COULDN'T. SHE SELLS BAGS FOR $20. WHOA. ♪♪♪ ♪♪♪ NEXT UP ARE NICOLE BILSKI AND LINDSAY JOHNSON, PITTSBURGH HOCKEY MOMS WITH A FASHION STATEMENT THEY MAKE AT HOME. HI. MY NAME'S NICOLE BILSKI. AND I'M LINDSAY JOHNSON. OUR COMPANY IS TriMi TANK. WE FEATURE THE ONLY TANK TOP ON THE MARKET WITH INTERCHANGEABLE REMOVABLE STRAPS. WE ARE SEEKING A $57,000 INVESTMENT... (chuckles) FOR A 30% STAKE IN OUR COMPANY. (mouths word) WE ARE TWO PITTSBURGH HOCKEY MOMS... THERE YA GO. GO, PENS! WHO CAME UP WITH THIS CONCEPT AT OUR SONS' 6:00 A.M. HOCKEY PRACTICE. EACH TriMi TANK COMES WITH THREE SETS OF STRAPS THAT YOU GET TO CHOOSE. YOU CAN CHOOSE TO LAYER THEM OR MIX AND MATCH THEM OR SIMPLY JUST WEAR ONE AT A TIME. THE STRAPS ARE SUPER EASY TO COME ON AND OFF. AND THEY COME IN SO MANY DIFFERENT VARIETIES. THERE'S JEWELRY STRAPS, RIBBON STRAPS, FUNKY STRAPS, ANY KIND OF... AND YOU'RE GOOD TO GO. ANY STRAP YOU COULD IMAGINE. CURRENTLY, WE ARE HANDMAKING EACH STRAP AND SELLING THE TANKS IN OUR HOMES. CAN I SEE THE-- THE, UM, THE TOPS, PLEASE? SURE. ABSOLUTELY. IN THE FUTURE, WE'RE HOPING THAT THESE STRAPS COULD THEN BE INTERCHANGED THROUGHOUT A WHOLE WARDROBE. THANK YOU. SO THEY COULD GO FROM YOUR SHIRT TO YOUR DRESS, LIKE LINDSAY'S WEARING TODAY. HOW MANY HAVE YOU SOLD? WE HAVE SOLD APPROXIMATELY 100. TO DATE. 100,000? NO, 100. NO, 100. OH. 1-0-0. SO MANY DOLLARS IS THAT? 100 UNITS. WELL... WELL, RIGHT NOW, THEY'RE RETAILING FOR $35. WE'RE RETAILING THEM FOR $35. THAT'S $3,500 WORTH OF SALES. YES. YES. YOU DON'T NEED TO THINK ABOUT WHAT WE'VE DONE. YOU NEED TO THINK ABOUT WHAT IT COULD BE. HOW FAR WE'VE GOT-- HOW FAR IT COULD GO. YEAH, BABY! THAT'S RIGHT. THAT'S THE PITTSBURGH SPIRIT, RIGHT? (Nicole) AND WHERE IT CAN GO. WHERE IT CAN GO! BEC--I MEAN, REALLY. I'M GONNA ASK YOU A-A COLD, HARD TRUTH HERE. SURE. OKAY. WHEN YOU SHOWED THESE AROUND TO PEOPLE, DID YOU DO ANY MARKET RESEARCH, ASK PEOPLE WHAT THEY THOUGHT OF IT? YES. WE HAVE DONE A CRAFT SHOW, A HUGE--WELL, NOT A HUGE-- BUT A FLEA MARKET IN PITTSBURGH. AND HAVE GONE TO OTHER, LIKE, HANDMADE MARKETS. SMALL VENUES THAT WE COULD JUST GET INTO. SMALL MARKETS. AND HOW DID WOMEN REACT TO THIS? DO YOU KNOW WHAT THEY SAY? THEY SAY, "THAT IS THE COOLEST IDEA. WHY DIDN'T I THINK OF THAT?" AND THEY ALWAYS SAY, "YOU SHOULD BE ON THAT 'SHARK TANK' SHOW." (laughs) AND DID THEY BUY IT? THEY--THAT'S EXACTLY WHAT THEY SAID. DID THEY BUY IT? AT THE TIME, WE HAD NO MEANS OF ACCEPTING CREDIT CARDS, AND... AND WE WERE IN THE WRONG SPOT. HOW MANY WOMEN AT THAT FLEA MARKET... YOU GUYS ARE, LIKE, THE BEST FRIENDS. WANTED TO BUY THIS? (Lindsay and Nicole) WE ARE! THEY ARE! APPARENTLY NONE. THEY $3,500 IN SALES. SHH! YEAH, BUT I-I-I JUST WANNA KNOW THE NUMBER. I WOULD SAY... APPROXIMATELY... 50? A LOT OF THEM SAID THEY DIDN'T HAVE ANY MONEY. A LOT OF THEM HAVE COMMENTED-- THEY ASKED IF WE... THEY WEREN'T THERE TO BUY CLOTHES... HAD THEM ON--ONLINE. BECAUSE WE WERE AT A FLEA MARKET. IT WAS... THEY WERE BUYING FRUIT THAT DAY. WHEN YOU'RE SAYING THAT YOU WERE AT A FLEA MARKET, AND PEOPLE REALLY ACTUALLY DIDN'T BUY IT. THEY INSTEAD BOUGHT THE FRUIT OR THEY INSTEAD BOUGHT SOMETHING ELSE. THAT'S KIND OF A LITTLE BIT OF A WAKE-UP CALL THAT THIS MIGHT NOT BE YOUR HOMERUN. I'M OUT. OKAY. OKAY. THANK YOU. GUYS, SINCE Y'ALL ARE FROM THE 'BURGH, RIGHT? I LOVE SEEING PITTSBURGH PEOPLE BE ENTREPRENEURS AND--AND ATTACK A BUSINESS. UM, WE CAN GO DRINK SOME I.C. LIGHT, HAVE A-- YOU KNOW WHAT? JUST A MINUTE, MARK. YOU CAN TARGET SPECIFIC GROUPS. RIGHT. I MEAN, WE COULD GO INTO A SORORITY AND JUST HAVE SORORITY LETTERS ON THEM. YOU CAN--WE HAVE AWARENESS RIBBONS. YOU CAN GO AND DO-- LOOK, I-I LIKE THE HUSTLE. I LIKE THE ENERGY. I LIKE THE VISION, EVEN. BUT IT'S NOT AN AREA WHERE I HAVE A LOT OF EXPERTISE. I COULDN'T TELL YOU ONE GOOD TANK TOP FROM ANOTHER. AND AS MUCH AS I WANNA SEE YOU GUYS BECOME SUCCESSFUL, I JUST CAN'T HELP YOU, SO I HAVE TO BE OUT. THANK YOU, THOUGH. WE'LL TAKE YOU UP ON THOSE I.C.s. (laughs) (Robert) DAYMOND? (speaks indistinctly) (laughs) YOU KNOW WHAT? I SAW IT IN FLEA MARKETS AS WELL. AND, UH, I COULDN'T KEEP THE INVENTORY. I JUST COULDN'T KEEP IT. I WOULD JUST KEEP BLOWING OUT OF IT. I WOULD BUY, YOU KNOW, 200 SHIRTS HERE, THEN I'D COME BACK WITH 1,000, AND-- DAYMOND, THIS WOULD LOOK GREAT WITH A PAIR OF FUBU JEANS. YEAH. YOU KNOW IT WOULD. IT WOULD. NO, I UNDERSTAND WHAT YOU'RE SAYING, BUT YOU'RE TOO EARLY OF A STAGE FOR ME TO HELP YOU OR EVEN TO UNDERSTAND IF THERE'S A BUSINESS TO HELP YOU. SO... MM-HMM. I'M SORRY. I'M OUT. (Robert) YOU KNOW, YOU SOLD 100. IT'S A RISK. IT'S A CHANCE FOR YOU TO GET IN AT THE GROUND LEVEL AND-- IT'S WAY TOO SOON. IT'S A HOBBY. YOU HAVEN'T--YOU HAVEN'T PROVED THE MARKET YET. IT'S THERE, THOUGH. IT REALLY, REALLY IS. IT REALLY IS THERE. GOOD PITCH, GREAT ENERGY, BUT I'M OUT. OKAY. OHH, AND YOU! NOW WE'RE DOWN TO ONE SHARK. YOU KNOW... YOU'RE THE BEST! ALL ROADS LEAD--OHH! (Robert laughs) LISTEN, LISTEN. NICOLE, THAT WAS GREAT. LADIES. (laughs) ALL ROADS TO LEAD TO MR. WONDERFUL IN THE END. SO HERE'S MY OFFER TO YOU. WE GO TO A FINE RESTAURANT. I LET YOU CHOOSE ANY BOTTLE ON THE LIST THAT'S WORTH $3,500, WHICH IS EQUAL TO YOUR SALES. WHEN DINNER'S OVER, WE BURN IT ALL. HOW CAN WE LET YOU KILL OUR BABY LIKE THAT? THIS IS NOT A GOOD IDEA. I'M OUT. I THINK YOU GUYS ARE REALLY MISSING OUT ON A GREAT OPPORTUNITY. YOU'LL SEE. OH, I KNOW. I KNOW. PEOPLE LOVE THESE. I'M NOT WORRIED ABOUT IT. YOU'LL SEE, PITTSBURGH BOY. PEOPLE LOVE THESE. JUST ROCK 'N' ROLL. JUST GO WITH IT. (singsongy) SEE YOU FOR DINNER! AH! OH! (Robert) NEVER GOOD WHEN A SHARK SAYS, "SEE YOU FOR DINNER." (sharks laughing) ♪♪♪ ♪♪♪ NEXT UP IS MARK AND HANNA LIM WITH A PRODUCT INSPIRED BY THEIR CHILDREN. HI, MY NAME IS MARK LIM, THIS IS MY BEAUTIFUL WIFE HANNA, AND WE ARE THE FOUNDERS OF LOLLACUP. WE ARE HERE TODAY SEEKING A $100,000 INVESTMENT FOR A 15% EQUITY STAKE IN OUR COMPANY. WHEN OUR FIRST DAUGHTER WAS ONLY 9 MONTHS OLD, OUR PEDIATRICIAN WANTED US TO USE STRAW CUPS RATHER THAN THE TRADITIONAL SIPPYS BECAUSE OF THE SPEECH AND DENTAL BENEFITS OF USING STRAWS. I MUST'VE TRIED EVERY TODDLER STRAW CUP ON THE MARKET ONLY TO FIND THAT MOST OF THEM HAD SPILL-PROOF VALVES, LIKE THESE, THAT MADE THEM INCREDIBLY HARD FOR HER TO DRINK FROM. CLEANING THEM WAS EVEN MORE FRUSTRATING. AND UNLIKE ALL THE ADORABLE BABY PRODUCTS OUT THERE, THESE CUPS WERE JUST NOT CUTE. SO MARK AND I SET OUT TO CREATE A STYLISH CUP THAT BOTH KIDS AND THEIR PARENTS WOULD LOVE. AS PARENTS OURSELVES, SAFETY IS REALLY OUR NUMBER ONE CONCERN. THAT'S WHY WE DECIDED TO MANUFACTURE THE PRODUCT HERE IN THE UNITED STATES, SO WE COULD BE SURE WE'D HAVE A QUALITY PRODUCT MADE WITH SAFE PLASTICS. I'VE SEEN SO MANY TODDLERS STRUGGLE WITH STRAW CUPS, SO WE DESIGNED LOLLACUP TO ELIMINATE ALL THE CHALLENGES. YOU DON'T KNOW HOW MANY TIMES MY DAUGHTER HAS DONE THIS WITH HER STRAWS AND ASKED ME FOR MORE MILK, SIMPLY BECAUSE THE STRAW WAS LODGED UP HERE AND THE LIQUID WAS RESTING DOWN AT THE BOTTOM. LOLLACUP'S WEIGHTED STRAW KEEPS IT IN THE LIQUID, SO CHILDREN CAN ACTUALLY DRINK EVEN WHEN THE CUP IS TILTED. THE HANDLES MAKE IT EASY TO HOLD BUT THEY DETACH WITH A SIMPLE TWIST, SO YOU CAN PUT IT IN A CUP HOLDER OR DIAPER BAG. LAST BUT NOT LEAST, LOLLACUP IS EASY TO CLEAN. WE ARE CONFIDENT THAT WE HAVE A GREAT PRODUCT THAT SELLS. WE HOPE YOU'LL JOIN US WITH YOUR EXPERTISE AND FUNDING TO HELP TAKE LOLLACUP TO THE NEXT LEVEL. SO DO YOU HAVE SALES TODAY OR IS THAT A PROTOTYPE? YES. IN THE FOUR MONTHS THAT WE'VE BEEN SHIPPING, WE HAVE 30,000 IN SALES, 5,000 ON ORDER, AND WE HAVE A SOFT ORDER OF $30,000 FOR THE HOLIDAY. HOW MUCH DO YOU SELL THEM FOR INTO RETAIL? THE RETAIL PRICE IS $18, IT WHOLESALES AT $9, AND IT COSTS US $4.50 TO MAKE. WHAT DOES A NORMAL SIPPY CUP COST? ANYWHERE FROM $5 TO $6, UPWARDS OF $25 PLUS. AND IF YOU WERE MAKING THESE OVERSEAS, HOW MUCH WOULD YOUR COST TO MANUFACTURE THEM BE? I THINK IF WE MADE THEM OVERSEAS, THEY COULD PROBABLY BE MADE FOR ABOUT $2, $2,50. AND YOU'RE PAYING HOW MUCH? $4.50. IF WE WERE TO GO THAT OVERSEAS ROUTE, WHICH REALLY, WE DON'T WANT TO BECAUSE WE FEEL LIKE-- I MEAN, I CAN'T TELL YOU THE NUMBER OF TIMES I'VE BEEN IN A BABY STORE AND WOMEN LITERALLY WALK IN AND SAY, "SHOW ME EVERY PRODUCT HERE THAT'S NOT MADE IN CHINA." WHY DO YOU MAKE THE ASSUMPTION THAT A CHINESE-MADE PRODUCT IN TODAY'S GLOBAL ECONOMY IS POORLY MADE? YOU KNOW, I'M NOT MAKING THAT ASSUMPTION. IT'S JUST WHAT I'VE PERSONALLY HEARD. AND, YOU KNOW, THE WOMEN I'VE SPOKEN TO, THE MOMS THAT WE HANG OUT WITH, THEY'RE REALLY LOOKING FOR THE U.S.A.-, EUROPEAN-MADE PRODUCTS. 'CAUSE I'M HAVING A HARD TIME PAYING MORE THAN 10 BUCKS FOR A SIPPY CUP. YEAH, HAVING--LET ME JUST TELL YOU, I AGREE WITH YOU. THERE'S JUST ABSOLUTELY NO REASON TO PUT YOUR KIDS' HEALTH AT RISK OVER $3. AND I LIKE THE WEIGHTED, UM, STRAW IDEA BECAUSE MY LITTLE SON ALL THE TIME, YOU KNOW, DOING THIS... YOU KNOW, SO I GET THAT. BUT THE REAL QUESTION I HAVE IS, HAVE YOU TRIED TO GO TO THE BIGGER BOX STORES? AND WHAT WAS THEIR RESPONSE? WELL, WE'VE ACTUALLY BEEN APPROACHED BY SEVERAL, UM, BIG BOX RETAILERS. WE TOOK OUR PROTOTYPES AGAIN TO A TRADE SHOW LAST OCTOBER, AND-- WHAT, UH, WHAT BIG BOX STORE? UM, BABIES "R" US. LET ME GUESS. THEY SAID IT WAS WAY TOO EXPENSIVE. THEY ACTUALLY DIDN'T TALK MUCH ABOUT PRICE POINT. THEIR MAIN CONCERN WAS THE PACKAGING. (Mark) WHAT DIDN'T THEY LIKE? (Robert) WHAT'S WRONG WITH THE PACKAGING? YEAH, WHAT DIDN'T THEY LIKE? THEY DIDN'T-- I THINK IT TOOK TOO MUCH REAL ESTATE, AND SO THEY WANTED TO CHANGE THE-- NO, IT'S NOT STACKABLE. THAT'S THE PROBLEM. RIGHT. AND THEY DIDN'T-- THEY SAID THAT YOU COULDN'T SEE THE ENTIRE PRODUCT. THAT CAN BE FIXED. ALL THAT CAN BE FIXED. (Robert) YEAH. I'M TRYING TO FIGURE OUT WHAT IT IS THAT MOVES MILLIONS OF UNITS. BECAUSE I'VE RAISED TWO KIDS. SIPPY CUPS ARE A MANDATORY ITEM. YOU HAVE A BETTER MOUSETRAP HERE. WHAT'S THE PRICE POINT THAT BLOWS IT OUT SO THAT EVERY AMERICAN FAMILY CAN AFFORD IT? I WOULD SAY $10 TO $12. OKAY. SO IF WE HAVE TO SELL IT AT $9.99, WHICH IS A VERY POPULAR RETAIL PRICE POINT... MM-HMM. YOU GOTTA MAKE IT FOR A BUCK 70. RIGHT. IS THAT YOUR GIRLS THERE IN THE PICTURE, THOSE ADORABLE GIRLS? YES. WE HAVE TWO. (laughs) YEAH. (laughs) AND DO THEY USE THE CUP AND THEY--DO THEY LOVE IT? YEAH, THEY LOVE IT. THEY THINK OF IT AS A TOY WHEN THEY FIRST SEE IT. OH, HANNA, CAN I SEE IT? BUT--YEAH. OF COURSE. WE HAVE SOME-- DID YOU CREATE THIS YOURSELF? DID YOU THINK OF THIS IDEA? (Mark L.) YES. YEAH. OH, I LOVE THE COLORS. THE TWO OF YOU TOGETHER OR... UM, YOU KNOW, I MEAN, I'M THE MOM WHO USES IT THE MOST. SO I CAME WITH THE CONCEPT, BUT WE DID WORK ON IT TOGETHER. (Robert) THANK YOU. (Lori) I LOVE YOUR DEDICATION, AND I THINK THAT THIS IS REALLY INGENIOUS AND A GREAT PRODUCT. THANK YOU. THANK YOU. TELL ME A LITTLE BIT ABOUT YOUR STORY. TELL ME ABOUT THE TWO OF YOU. WELL, MARK AND I ACTUALLY STARTED DATING IN THE SEVENTH GRADE. (laughs) OH! SO WE ACTUALLY--WE GOT MARRIED 14 YEARS LATER. (Lori) WOW. AND WE STARTED A FAMILY PRETTY SOON AFTER THAT. AND WE THINK ABOUT OUR DAUGHTERS NOW, WE'RE LIKE, "NO WAY. WE DO NOT WANT THEM DATING ANYONE IN SEVENTH GRADE." (laughs) WELL, IF SHE FINDS A NICE GUY LIKE ME, THE I THINK I'D... (laughs) SO HOW MUCH HAVE YOU INVESTED IN THIS? WE INVESTED, UH, $100,000. (Daymond) OKAY. AND THE--THE MONEY WENT TOWARDS PRODUCT DEVELOPMENT... UH-HUH, CASTING. I GOT IT. INDUSTRIAL DESIGN, MOLDS. AND THERE'S A PATENT ON THIS? YES. WE ACTUALLY JUST GOT AN E-MAIL TODAY, THIS MORNING, THAT WE WERE ISSUED THE PATENT. CONGRATULATIONS. (Lori) IT'S A UTILITY PATENT? IT'S A DESIGN PATENT. DESIGN PATENT. DESIGN. UH, $100,000... RIGHT. FOR 15% MEANS YOU'RE PUTTING THE COMPANY'S VALUE AT A HALF A MILLION DOLLARS, AROUND... RIGHT. SO WE'VE SIGNED WITH A SALES REP TO COVER THE U.S., JUST TWO, THREE WEEKS AGO. EXCLUSIVITY? PARDON? DID YOU GIVE THEM EXCLUSIVITY? YES, WE DID, FOR ONE YEAR. DID THEY GIVE YOU MINIMUMS? UM, MINIMUM AS IN-- IN OTHER WORDS, WHAT GUARANTEE DO YOU HAVE THAT THEY'LL SELL IT? WELL, THERE'S NO GUARANTEE. WHAT HAPPENS IF THEY DON'T SELL ANY? AND YOU'RE STUCK WITH THEM AS THE EXCLUSIVE FOR ONE YEAR. WELL ,YOU KNOW, HANNA AND I-- YOU SHOULD NEVER DO A DEAL LIKE THAT. RIGHT. THERE'S NO PERFORMANCE METRICS IN THAT DEAL? THEY SAID THEY--WE EXPECTED 150 TO 200 ACCOUNTS. YEAH, TALK IS CHEAP. I EXPECT THAT, TOO. RIGHT. BUT IF THEY DON'T DELIVER, WHAT HAPPENS? WELL, I MEAN, IF THEY DON'T DELIVER, WE HAVE, YOU KNOW, I MEAN-- GUESS WHAT. YOU'LL NEVER DO A DEAL LIKE THAT AGAIN. YOU'RE GONNA LEARN THE HARD WAY. (Mark) WHERE ARE YOU GUYS SELLING THESE NOW? WHICH STORES? WHAT KIND OF STORES? MOSTLY BABY STORES, KIDS CLOTHING STORES... BABY STORES. AND SOME GIFT SHOPS EVEN. AND--AND WHERE ARE YOU HOLDING THE INVENTORY THAT YOU HAVE FOR THIS? (Mark and Hanna) IN OUR GARAGE. (chuckles) IN YOUR GARAGE, HUH? AND YOU GUYS HAVE BEEN SHIPPING THEM YOURSELVES? OH, THAT'S A NIGHTTIME ACTIVITY. YEAH. (laughs) YOU DON'T EVEN KNOW. RIGHT NOW, WE DON'T SLEEP. WE ASSEMBLE CUPS IN OUR LIVING ROOM. I LOVE THIS. I THINK THIS IS A GREAT IDEA. IT'S REALLY NOT MY MARKET, AND, UM, SO I WISH YOU THE BEST OF LUCK WITH IT, BUT I'M OUT. LET ME JUST START THINGS OFF WITH AN OFFER, BECAUSE THIS IS THE NEW SIPPY CUP. I AGREE WITH YOU. YOU'VE DONE A FANTASTIC JOB. MY OFFER'S CONTINGENT. I'M GONNA GIVE YOU $100,000 FOR 50% OF THE COMPANY. YOU HAVE TO SOURCE THIS OFFSHORE AND GET THE PRICE BELOW 2 BUCKS TO MAKE THIS WORK. THEN WE'RE GOING TO SELL MILLIONS OF THEM. WHAT DO YOU WANT TO DO? ♪♪♪ ♪♪♪ ONE SHARK IS OUT. HANNA AND MARK HAVE AN OFFER FROM KEVIN O'LEARY, BUT HIS OFFER COMES WITH THE CONTINGENCY OF LOWERING COSTS, WHICH MAY COMPROMISE THEIR "MADE IN AMERICA" PRINCIPLE. WHAT DO YOU WANT TO DO? ARE THERE, UH, ANY OFFERS THAT ARE BEING ENTERTAINED? TELL ME MORE ABOUT YOUR, UM, SALES AGENT AND WHAT YOUR DEAL US. AS I SAID, WE JUST SIGNED WITH THEM. AND SO THEY'RE IN A TRADE SHOW RIGHT NOW. WHAT I'M TRYING TO FIGURE OUT IS, ALL RIGHT YOU ABLE TO CONTINUE TO GO OUT AND SELL? ARE WE ABLE TO GO OUT AND SELL? WHAT ARE YOUR LIMITATIONS AND WHAT ARE YOUR OPPORTUNITIES? I MEAN, THERE'S NO LIMITATIONS. THERE--WE--WE STILL GO SELL. I MEAN, WE--WE DON'T WAIT FOR THEM. AND THEY--THEY DON'T-- NOW DO YOU HAVE TO RUN THAT SALE BACK THROUGH THE SALES AGENT? RIGHT NOW, YES. OKAY, AND WHAT DO YOU HAVE TO PAY THE SALES AGENT? WE'RE PAYING THEM 15%. WOW. IS THAT FOR A SPECIFIC GEOGRAPHIC AREA? UH. IT'S JUST--IT'S THE U.S. THE ENTIRE U.S. RIGHT NOW. YES. MM-HMM. UH, LET ME JUST GO A LITTLE BIT SIDEWAYS FOR A SECOND. I'VE BEEN--I'VE BEEN AN INVESTOR IN, UH, THIS SECTOR FOR A WHILE, AND MY, UH, MY HEINIE KICKED PRETTY BADLY. HERE'S WHAT I LEARNED ABOUT THE BABY NICHE MARKET LIKE THIS. TO MAKE ANY REAL MONEY, YOU'VE GOTTA GO TO GENERAL DISTRIBUTION, LIKE EVERY OTHER PRODUCT. WHAT'S YOUR THOUGHT ON THAT? I THINK OUR SALES STRATEGY REALLY-- WHICH WE'VE SEEN IN PRODUCTS THAT WE END UP BUYING AT TARGET-- WE SEE THEM IN THE HANDS OF TRENDSETTERS AND TASTEMAKERS FIRST, AND THAT'S WHERE WE WANT THEM. AND THEN EVENTUALLY, WE SEE THEM COMING DOWN TO TARGET, AND THEN WE DO IT. I DON'T DISAGREE WITH THE STRATEGY, ESPECIALLY SINCE THE OBSTACLE I SEE IS THE SALES AGENT. OKAY. I DON'T WANNA HELP YOU GO GET THAT $10 MILLION ORDER TOMORROW, OR MILLION-UNIT ORDER, AND HAVE TO GIVE 15% OFF THE TOP OF THAT, OF THE WORK THAT WE DID, RIGHT. RIGHT. I'VE HAD THE INDUSTRIAL DESIGNER WANNA INVEST. I'VE--OUR MANUFACTURER WANTS TO INVEST. MY--MY-- SO IF THEY ALL WANNA INVEST, YOU'VE BEEN WALKING AWAY FROM MONEY TO COME HERE? I WANNA PLAY WITH WINNERS. I WANNA BE WITH GUYS THAT I KNOW WILL--WILL HELP US-- BUT YOU HAVE AN OFFER ON THE TABLE. YOU DON'T HAVE TO LEAVE WITH NOTHING. RIGHT. YOU'RE WAITING FOR SOMEBODY ELSE TO STEP UP. IT SEEMS NO ONE HAS. I['M INTERESTED IN A DEAL. I'M GONNA MATCH VOLDEMORT'S DEAL. $100,000 FOR 15% OF THE COMPANY, CONTINGENT THAT YOU CAN GET OUT OF YOUR SALES AGREEMENT DEAL. OKAY. I DON'T HAVE THAT CONTINGENCY. I'LL MEET WITH THAT PERSON AND MOTIVATE THEM MYSELF MY OWN SPECIAL WAY. (laughs) (laughs) (laughs) I'M SURE YOU WILL. UM, AND, DAYMOND, ARE YOU-- IS THIS THE SAME REQUIREMENTS-- WE TAKE THE PRICE POINT DOWN, DO AN OVERSEAS MANUFACTURING-TYPE THING? IF YOU CAN GET THE PRICE POINT DOWN AND buybuy BABY SAYS, "LISTEN, I'LL PUT IT IN MY CIRCULAR," I'LL--WE'LL LET THEM DICTATE IT. WE JUST MAY NOT GET AN ORDER. OKAY. AND THEN WE'LL HAVE TO DECIDE FROM THERE. (Mark L.) OKAY. IT IS REALLY ABOUT THIS--THIS AGENT. MARK, WHAT ARE YOU DOING HERE? TRYING TO FIGURE OUT WHAT I'M GONNA DO. YOU KNOW, NOT ALL DEALS ARE EASY. YOU KNOW, GUYS, THE SALES AGENCY THING IS PROBLEMATIC, BUT IT'S THE PAST. IT'S HAPPENED. YOU GOTTA LET THAT RUN OUT. IN--IN EIGHT SHORT MONTHS. IN EIGHT SHORT MONTHS. (laughs) IN EIGHT SH--NOW WHEN YOU WRITE A CHECK FOR $100,000, THERE'S NO SUCH THING AS EIGHT SHORT MONTHS. YEAH. (Lori) YEAH. MARK, YOU KNOW THAT THE VALUE IS WRONG. YOU KNOW THE VALUE'S WRONG. WHY DON'T YOU THROW ANOTHER NUMBER BACK AT ME? I MEAN, THESE OFFERS ARE RIDICULOUS. YOU KNOW THAT. RIGHT. BUT WHY DON'T YOU THROW A NUMBER BACK AT ME? THESE OFFERS ARE NOT RIDICULOUS. 'CAUSE THEY'RE REAL OFFERS. NO REAL OFFER'S RIDICULOUS. YOU KNOW THAT. (exhales deeply) OKAY. UM... WOULD YOU BE WILLING TO DO $100,000 FOR 40%? YES. DONE. (chuckles) SHAKE ON IT? (Lori laughs) DO WE HAVE A DEAL? WELL, I, YOU KNOW, I HAVE TO RESPECT... 'CAUSE WE'RE--HE JUST ASKED ME A QUESTION... (Kevin) NOT SO FAST. SO I TO RESPECT... (laughs) (Hanna laughs) SIT DOWN. (Daymond) SIT DOWN! GET BACK ON THE BENCH! JUST ONE SHOT. ONE SHOT. (Mark C.) IF I WALK BACK HERE... THIS IS--THIS IS A-A ONE-SHOT DEAL? ONE-SHOT DEAL. (Daymond) CAN I-- CAN WE GET TWO SECONDS TO TALK TO MY WIFE? YOU CAN TALK ALL YOU WANT, BUT IF I WALK BACK THERE... RIGHT. CAN YOU STAND THERE THEN FOR ABOUT... (sharks laughs) PLEASE. RESPECTFULLY. ABOUT 30 SECONDS? YOU KNOW WHAT? I'M A BASKETBALL GUY. RIGHT. I'M GONNA GIVE YOU A 24-SECOND CLOCK. 24 SECONDS. OKAY. (Robert) MARK, DO YOU REALLY--REALLY-- HOW RUDE IS THAT? RIGHT. I'M NOT EVEN FINISHED TALKING, AND THE GUY GETS UP. I MEAN.... MARK... RIGHT. 15 SECONDS LEFT. I'LL DO THE SAME DEAL--30%. (Lori) OH, YOU'VE GOT ALL THESE OFFERS. (Kevin) WHOA! WELL, HANG ON. WHAT HAPPENED THERE? I JUST SAID I'LL DO THE SAME DEAL FOR 30%. HEY, WAIT A SECOND. I JUST BEAT MARK'S DEAL. RIGHT. DID YOU JUST UNDERCUT MARK AND... YEP. AND THE OFFER I WAS GONNA... I DON'T KNOW YOUR OFFER. YOU KEEP MUMBLING OVER THERE. WELL, I-I WAS GONNA ACCEPT THE OFFER AT $100,000 FOR 40%, AND THEN MARK JUST GOT UP AND, UH... HOW ABOUT THIS? WOULD YOU-- YOUR DEAL'S OVER? MARK, WOULD YOU BE WILLING TO WORK WITH ROBERT? BECAUSE, REALLY, WE WOULD REALLY LIKE YOUR EXPERTISE. (Daymond) GUYS, I GAVE YOU A GREAT OFFER. HEY! I GAVE YOU A GREAT OFFER, BUT YOU TOOK TOO LONG, SO I'M OUT. OKAY. OKAY. MARK, WOULD YOU BE WILLING TO GO IN WITH ROBERT? BECAUSE WE WOULD LOVE TO HAVE BOTH OF YOUR EXPERTISE. I THOUGHT WHEN YOU SAT DOWN, IT WAS OVER. SOMETIMES I RECONSIDER. UM, FOR 40%? YES. ROBERT, ARE YOU COOL WITH THAT? (Mark C. and Lori laugh) COME ON, ROBERT. IT'S 40%. THAT MEANS 50K FOR EACH OF US, 20% FOR EACH OF US. I'M IN. ALL RIGHT. OKAY. FIRST, GOTTA SHAKE YOUR HAND. THERE YOU GO. ALL RIGHT, MAN. YEAH. CONGRATULATIONS. THANK YOU. GOOD JOB, GUYS. THANK YOU. THANK YOU. (Lori) LOVE YOUR PARENTING. GOOD LUCK. GOOD JOB, MAN. (Mark L. and Hanna laughing) THANK YOU. THANKS. WE'RE GONNA BE AWESOME. HANNA, YOU COULD'VE HUGGED ME, YOU DIDN'T HAVE TO HUG MARK. (laughs) I-I HAVE EXCLUSIVITY HERE. YOU KNOW... (laughs) (sharks laughing) OH, THEY'RE GREAT. THEY'RE A GREAT COUPLE. I MEAN, RIGHT AT THIS MOMENT, I--WE'RE ON CLOUD NINE. BUT I THINK IT'S JUST MOTIVATION TO WORK EVEN HARDER. RIGHT.