Shark Tank 3 Sharks Make Identical Offers to The Entrepreneur - Best of shark tank tv

Best of Shark Tank TV Shark Tank 3 Sharks Make Identical Offers To The Entrepreneur - Best Of Shark Tank TV hi my name is Rachel Nilsson and I am from Alpine Utah I am seeking $200,000 for 10% equity stake in my company called rags to riches what started as a side business selling my kids hand-me-down clothing to help make ends meet ended up becoming a fashion frenzy we call this the romper it's a one-piece outfit that's super easy to slide on and off your weekly toddler without the hassle of dealing with snaps I started posting these on my social media and the response was craziness parents loved the fact they were super comfortable and stylish but they're also very practical since watch these have been in high demand it's because of unlimited runs and are super exclusive designs now I'd like to show you guys the romper in action who's who okay this is my little guy Harrison fire says Chloe hi Chloe as you can see they both went to different styles and rappers both equally just too stylish and we're not having to negotiate at all on comfort sharks I want to get these in the hands of every stylish parent out there now they're gonna help us hand out some samples can you hand him the top one there we go thank you Laurie don't get him on the stand going don't get too close to mr. O'Leary thank you there you go okay and now our friend a thank you and then what what's up Chloe thank you so Rachel I have a burning question yes that would a child have a Pippi in one of these you know what we get asked this question all of the time they literally slide down and up and it's no hassle parents love the fact they're super easy so this all the way yeah the neck is reinforced with elastic Rachel that's the unique part yeah what age does this go to usually the biggest sellers are infant toddler area but we have had like a five and six year old child Mary knows and how many colors and styles that's the unique thing about our brand is we're constantly coming out with limited edition so we have been able to drive people to our website all of the time Rachel why have you sold it's been a little over a year and our cells are 790 mm well you from from zero firm zero start yeah I started this because my husband was in grad school we were broke as a joke and I decided you know what like I need to do something here I have three sons I pulled off the hand-me-down clothing I came up with an instagram name rags to riches and I started selling my kids hanging on clothing I was noticing that the quickest things that were selling or the stuff that I made for them so I cut a romper out of my husband's t-shirt and I was like this is awesome so I have the seven hundred ninety two thousand is it all rompers no majority is though I would probably say 95% as rompers are all your sales online actually twelve percent of our sales our wholesale about 88% r6n are going to retailer at stores oh I have stuck with like little boutiques because I'm so afraid of like I don't want this for you totally I don't want to be handcuffed by my retailers I love the online business because that's where the money dies wait okay you've gotta be killing it Rachel if you did seven or some thousand dollars in sales you've got to have made a half a million dollars issue yeah we're predicted to do I'm simili and like we don't know what's your profit profit we're doing it's like two hundred and eighty thousand why are you making more our costs like we need to get our cost of where your margins so the cost to get those made is between seven and ten dollars we're selling them for 37 to 50 bucks why is it your profit way higher where's the rest of the money go we are like obviously that's kind of where I need your guys's help a lot of my profits have sucked up into material it's your inventory yeah yeah my inventory Rachel you worried when somebody sees this they could simply knock it off at a much lower price yeah I'm so glad you asked that because we are we've run into people trying to knock off rags what's what stop so what happened coolest part is I honestly feel like we've established a brand people love rags they love the uniqueness of it I feel like I pour a little bit of me to the brand and they've become a fan of not only my brand but me I put a face on it and they love that well let's tap into our resident clothing expert here what do you think of that state you came that is protectable but they don't protect her I don't know I think that she has a great following but up another maker and they will copy it puts it out there this is a big world you know they just wouldn't you know they sell it for she's a fifty bucks what would they sell it all depends on the chain so if this was going into the mass market it would probably be nineteen they have the most yet the most so Rachel you're asking for mm yeah you make two hundred a thousand and profits yeah how much of that do you still have left I have almost all that so you're asking for less than you have in Captain all right I think I have two hundred and fifteen thousand sitting in my baking right now so what is the cash gonna do to for you tomorrow you've already got to Ana anymore imager by hand do you want more inventory to go to wholesale is that what this is my point all the retailers that we have approved to put in their stores they all sold out of their product and they're coming to us and we have to say no we can't give that to you we don't have that so this is just a retailer side that you want to greet that for it yeah you know are you sure are you sure you want I'm not sure so Rachel what's the direction like I hear talking about I'm an exclusive brand they're here talking about more cash for retail I'm so glad you mentioned that what's the strategy I really wouldn't mind branching out here's the deal I going into retail if I go into retail I don't want to be competing with myself online so me what we've done is we've created a totally exclusive wine for our retailers I wonder if that's gonna work because the difference in margins to you is material the retail sale is half the profit that you're making selling direct yeah I'm just wondering why I mean it's working so well for you why not keep driving it online maybe we will here's what I see I agree with these guys for the first time you're killing it you may be healing it you may be the most profitable from a sales to net profit company that we've had on here in a long time why screw it up you know what that's like I totally agree with you though right because on one hand totally awesome it's great I agree with you mark but then on the other hand it's oh yeah retail stores right totally yeah awesome we do it cheers that little nuts I would go here's the deal mark I am not sure if I want to go that route trying to play a whole nother game and you don't know if you should play you've seen other people play so maybe I should play because other companies are bigger you were great at designing yeah getting people to trust you and selling them a great product online and huge margins that's profitable to you I love it but you did all of a sudden someone else talks to you right yeah cuz I don't know who's the deal here's the deal right Rachel you've exceeded my here's the deal Rhoda you can't make up your mind about making up your mind so for those reasons I'm out thanks mark thank you Rachel your product is not defensible yeah your brand is absolutely my challenge is what do you want it - I want to make money I want to be mrs. wonderful I love that Rachel you're authentic and you're selling something that you would use it's a very authentic and that's where Robin is we're gonna make her an offer yeah I'm gonna make an offer all right I'll give you a two hundred thousand for 20% thank you your honor okay you know Rachel I've got multiple companies now involved with young families around weddings engagements hundreds of thousands of users it's called the something wonderful platform we push customers at a zero cost base to each other I think you could fit nicely then because so many of those people have children so I like it for my portfolio but I don't like the retail business very much oh and so I have a platform for you I've got logistics for you I don't have an offer for her all right I'll make you an offer I'll give you the two hundred thousand for twenty percent cuz I think is exactly what Robert offered you species basically worth one time sales I think you're gonna get to a million in sales yeah we should get to a million for sure by December I don't doubt that at all speaking of portfolio companies we have a company called tipsy elves great guys that were doing six hundred thousand a year I can't tell you how many conversations we've had over three years about going this way about going that way three years later you know what we are we're an online company I don't do over 15 million this year we've expanded the product line but always stay true to but that's it you're slowing down Kevin's or something you're under very wide forum as half a billion in sales five hundred million dollars through it this is nothing bloody squabble I'm interested I like this one shark is out rachel has two offers on the table for her children's clothing brand rags-to-riches but Damon also seems interested I'm interested I like this I kind of disagree with other guys about the retail strategy I believe you need to take that competitor out of the market by licensing mass-market different level goods to that competitors so they can then not knock you off it knows your brand they can protect you so you can do the higher-end online sales and they do the mass-market so that now you've got both covered you're getting a piece a little piece of this and a lot of that so you're basically saying knockoff myself basically knockoff yourself you're in business she's gonna start another what why I'm gonna take you to is gonna have 80 licenses that go on there immediately and then you make my so let's hope that they get up to 50 million a year and then you know we're making ten percent off that 50 million so I'm gonna offer you the same with an intention to go license a supper and $200,000 for 20 percent well you've got three offers on the table yeah here's the deal like Robert tipsy elves I've followed that and I've seen the growth and I love that they are on my seems simple but at the same time I know that people are gonna come in and want a copy I'd rather copy myself you're gonna crank out no matter what so either we're gonna make money off them cranking it out or not anybody can always knock off anything right you don't have something proprietary when you create the brand that you can and you get to 20 million in 50 million you can just slice this your name you're not there today Robert they're not they're not putting the name or is not putting rags why but what are you gonna my son hit on a jumper with their elastic band if somebody won the big boys and girls doing that now we'll see make money off of that listen I've done this with 30 different apparel companies they're gonna work that there's limited understanding because they did one or two glory are we gonna hear from you or not well we're still young Lori you don't offer I would offer you something that's just the same as Damon but Damon's great at doing that that's why I'm not going to make you an offer I wish you good luck Thank You Lori oK you've got three sharks interested the offers are identical you have to make a decision Robert are you willing to go down 15% for 2000 do we have a deal if I do what are you gonna continue negotiating your whole business will work the difference of 5% doesn't we have the partner is worth who doesn't really make that big a difference 5% maybe not Rachel here's my question if I go down to 15% do we have a deal do you want a partner who is not that best at it robber we have a deal can't even believe that I started totally broke selling my kids hand-me-downs and a little over a year and I'm here as a mom with three young boys and I made this work and I made my company a success