12x14 - Episode 14

[bunniefuu]

Narrator: Tonight on
"Shark t*nk," Kendra Scott,

the founder of powerhouse
jewelry brand Kendra Scott,

returns to the t*nk.

I'm sitting in front of you,

somebody who built
a billion-dollar brand

out of their extra bedroom
of their house.

I have just enough cash
in the bank to make it 30 days,

or we're out of business.

Oh. You have picked a sector

that it's almost impossible
to make money in.

I want 20% of the company.

What a savage.

I am going to offer you
my golden ticket.

-Whoo! -Oh!

Find a nice barn,
and just go sh**t it.

I always love it when somebody
tells me I can't do something.

So take that and use it as fire.

♪♪

Narrator: First into the t*nk
is a comfortable version

of a fashion staple.

♪♪

♪♪

Hi, Sharks.
My name is Haley Pavone,

and I'm from
San Luis Obispo, California.

Today, I'm seeking
a $500,000 investment

in exchange for 5%
of my game-changing company,

Pashion Footwear.

It's a tale as old as time.

A woman puts on
her favorite pair of heels

and heads out to work, out to
a wedding, or out for the night.

She is absolutely
crushing her commute,

tearing up that dance floor,
and looking her absolute best...

for exactly 45 minutes.

Suddenly, her feet are on fire,

and she is regretting everything
about her shoe choice.

So I invented the ultimate
solution to high-heel pain

and inconvenience --

the world's first
fully convertible high heels.

Now, not that I'm not
totally crushing this outfit,

but let me slip into something
just a little more comfortable.

With a quick twist of the wrist,

our stylish high heels
turn into comfortable

and practical flats
just like that.

Corcoran: Wow.
Want to see me do it again?

Yes, we do. That's impressive.

Whew!
That is so much more comfy.

Here at Pashion,
we are determined

to make traditional high heels,

and all their ridiculous
problems, a thing of the past.

Now, Sharks,
who's ready to majorly disrupt

the massive women's
footwear market

and take the next step
of this journey

in some awesome
convertible high heels?

That's remarkable.
Now, I actually do have samples
for each of you.

They're in your size. Oh, good.

You know
I love a good nude heel.

Way to go, Haley.
There we go. Fantastic.

Part of our key innovation

is we use completely
different materials

from any other high heel
in our midsole.

They're totally flexible.

When you have no body weight,
it looks like it has an arch,

but the second you step down,
goes completely flat.

So, I pop the heel off.

Okay, now, am I supposed to
also remove something

from right here?
Yes, you're removing
this sole-support portion.

Just grab it, turn,
and then pull out.

There you go.
Ah, okay,
the whole piece is off.

Yes. And that part
that you took out just there,

that's the removable
sole support.

That's really
the essence of our I. P.

There have been
removable heels before...
Yes.

...but no one's ever innovated
on a removable sole.

So I'm going
to stand up on this.

Ooh, wow. It's, like, bouncy.

Yeah, so to put them back on,
you just hook this bit here,

pop it back in, give it a twist,

it'll click, and you're locked
back into place.

Gotcha. So I am assuming

that you have sold
quite a few of these.
We have, yes.

So, it's been a year
and some change,

and we've done a little over
$800,000 in sales.

Wow. Now, that's impressive.

What about returns?
And what are
the returns like?

Yep.
So our return
and exchange percentage is 24%.


Yes, the footwear average,
though, is 20%

just because the sizing
for footwear is so difficult

to make perfect online.
And your sales are net sales
after all returns?

No, net sales -- $500,000.
$500,000. Okay, so --

Every woman I know
hates her high heels,

every one of them,
and can't walk in them

for more than
three or four hours.

Why was it you who said,

"Let me do something
about this"?

So, in my sophomore year
of college,

I was out at
a sorority spring formal,

and I'd worn six-inch high
heels, as college girls do.

But high heels
when you're trying to dance

are not comfortable.

It's really more of a wobble,
and I wanted to bust a move.

So I ditched my high heels...
[ Laughs ]

...and took to
the dance floor barefoot.

Unfortunately,
tragedy and inspiration

quite literally struck.

One of the other young women
accidentally stomped

her stiletto through my foot...

Oh.
...and impaled me
through the toe.

Oh, my God.
O'Leary: Through the --
Are you kidding?

Through the toe, yes.
Like, right through?

Like, clean through.
This is a terrible story.

And as I'm sitting on the side
of the dance floor,

it struck me as odd that there
is this societal expectation

for women to wear high heels to
formal or professional events.

Everyone knows they hurt
and that they're inconvenient,

and yet there is no solution.

So, Haley, how have you gotten
your $500,000 in net sales?

We are all online,
and we've been able to sell

through digital marketing, P. R.,
and then also word of mouth.

Haley,
you are super impressive.
Thank you.

I want to hear your background
a little bit.

Yes, absolutely.
So, when I was in college,

I already was very much
in the headspace of,

when I graduate,
I want to be working for myself.

And so after
that impalement incident...
[ Chuckles ]

...I dove in headfirst, started
pitching at different events,

and actually raised
the first $26,500,

and I actually got the first
working salesman samples

the day before
my college graduation.

-Wow! -Wow! That's great.

So they got
their first break-in.

Were you wearing your shoes
in that graduation picture?

Yes, absolutely. And luckily,

I'd actually built the company
up enough at this point

that when I graduated,
I was able to come on full-time.

I brought on
a footwear-development team,

hired on a COO,

brought on a lot
of student volunteers, actually.

All with $26,000?
Wow.
Yes. Initially.

We have raised more since then.

Who owns your company now?
What's your cap table look like?

I own my company right now.

So, we've raised a total
of $2.5 million to date.

Oh! Scott: Wow!

Corcoran: How much? Whoa!

$2.5 million,
all on convertible notes.

So right now, I own


But after they convert?

It depends, obviously,
on valuation.

But for instance, if you were
to take my deal today,

I would be at 45%.

Oh, and you know that we're
going to have to negotiate,

and so you're going to
end up owning,

if you get a deal,
less than 45%.

But I'm going to own a little
less of a much larger company

with the help of a fabulous
Shark, right?
Which I'm always
a fan of,

but how much cash
do you have left in the bank?

Right now,
we have about $250,000.

Ooh! Yes.

How much inventory do you have?

Right now, I have $150,000
worth of inventory at cost.

What's your monthly burn?

Our monthly burn right now is
about $90,000 before marketing.

Ouch.

Your burn is
$90,000 a month?
Yes.

So you have
three months...
Mm-hmm.

...of cash left? Yes.

But, that being said, I've been
in this situation before,

and I did get out of it.

Something you should know
about me

is I'm one of the most resilient
people you'll ever meet.

Back in 2019,
we were in a situation

where I found us $80,000 in debt
and I realized,

"Okay, I have just enough cash
in the bank

to make it 30 days,
or we're out of business."

And so I hit the ground running.

I pitched every single person
that would listen,

and I closed a million-dollar
deal on the 30th day.

And that's why we're still
in business today.

So, yes, it's a scary situation,
but I believe in this too much

to ever let it fail,
and I will get out of it.

You don't really want to give up
more than 5% here.

I mean, I appreciate the value

that a Shark brings
to the table.

Alright, look, I would make you
an offer that looks like this.

I give you the $500,000 for 5%.

However, I get paid a royalty

till I recoup a million bucks,
and then that royalty goes away.

And then the only negotiation
we have to have

is how much
that royalty should be.

I would like it to be $5 a unit.

I'm not super interested
in a royalty...
You don't know yet.

...only because I want
every single dollar...
You don't know yet.

...to go into growing this.
Wait.
Here's what's ridiculous.

We don't even know
what they cost,

and we don't know
what they cost to make, Kevin.

Right now,
the product cost is $36,

and then the landed cost is $47,

and we sell them for between
$150 and $190.

You have plenty of room
for a $5 royalty.

That's not a problem.

I do, but I'd rather have
that $5

go towards
growing the business.
You don't know yet,
Haley.

Why don't you wait to see
how many other offers you get?
Okay.

Corcoran: Haley, let me get
the ball going here.

I think you're
the type of person --

you don't know
what you don't know.
Sure.

The most important part
of building a business

is keeping it in line,

and you stretch every buck
nine different ways

to see what you can get
out of it.

And I feel like
we are doing that.

I mean, I know we have
a high burn...
I don't know.

...but as I mentioned,
I don't have excessive overhead.

You do have excessive overhead.

You're burning $90,000 a month,

you raised $2.5 million,

and you have three months left

before you're out of business.

I would say that's important.

I can't take a chance
on your business,

climbing those mountains
with you.

So I'm sorry. I'm out.

Okay. Thank you.

Yeah, Haley, you have
$150,000 worth of inventory.

That's about $500,000
worth of revenue.

That's another five-and-a-half
months of survival,

which then allows you
to create more cash flow

to bring in more inventory.

If you told me,
"This is where we're at.

I'm going to sell these shoes

because I need to focus
my attention to these things

to sell those shoes,"
it'd be a different story,

but that's not where you're at.

So for those reasons, I'm out.

Okay. Thank you for your time.

Haley, you are
a remarkable young woman,

but the product
is worrying me a little bit.

It felt very strange to walk on.

So I don't know,
if I was walking

several blocks in New York City,
for example,

in between meetings,

if that really
would be something

that would be
comfortable for me.

I know you are going to be
a success in life,

but this, I'm not 100% sold on.

I wish you the best of luck,
but I'm out.

Thank you. I appreciate that.

So, Haley, I --
I think it's clever.

It's a good idea.

It's great for QVC.

I think you -- Maybe.
[ Chuckles ]

I think it's good quality,
but $500,000 for 5%,

it's just not enough for me.

And I don't think $500,000's

going to be enough money
for you.
I mean,
I'm open to negotiating.

But as an investment,

it doesn't make sense
for me right now.

So I'm sorry. I'm out.

Okay, thank you.

Well...

[ Chuckles ]

...all roads lead back
to Mr. Wonderful.

♪♪

♪♪

Narrator: Four Sharks are out.

Kevin is Haley's last chance
for a deal

for her convertible high-heel
company, Pashion Footwear.

All roads lead back
to Mr. Wonderful.

I bet you, Haley,
if you could go back

and if you could've
done things differently,

you would've.

And now you are 90 days
away from oblivion.

Your problem is sales.

That's the only thing
that's going to save you.

But the more you sell,

the more capital
you tie up in inventory.

That's the curse
of the shoe industry.

You need money. I have it.

But I'm going to put myself
in a preference position.

I really don't want to do
a royalty, as I mentioned.

To me, a royalty is just going
to be very counterproductive

to funding growth
for this business.
No, it isn't.

It puts me
in a preference position

so I don't get diluted
into oblivion.

I'd like to counter
with $500,000 for...



No.

If there's no royalty in here
to reclaim my capital --

Haley, a royalty
doesn't k*ll you

if you turn
your inventory quickly.

Listen, Mark, I don't see you
writing a check.

I'm encouraging her
to consider a royalty.

This is the only deal
out there right now,

and I don't think it's half-bad.

See, Haley,
the way I look at it --
What about a $1 royalty?

No, no.

You know, I would probably
be wearing these heels

in heaven before I got
my $500,000 back.

How about we do a royalty
at $2.50...

No.
...until you get
your $500,000?

Yes, don't be such
a "Bah, humbug."
No. No.

Look, I care about $500,000.

That's not chump change.

Are you open to any
kind of counter, though?

You can counter all you want.
I'm not --

But I've countered, and...

Come on, you said that
you have changed this year

and all of a sudden a heart
transplanted into your body.

I really appreciate you helping
me with this deal, Lori.

So, to you,
I say, "No."
[ Chuckles ]

My offer's very simple.

It's $5 a unit
till I recoup $1 million,

and I want the 5% equity.

And I'm the only Shark
that's making you an offer.

Are you open
to a larger investment?

No. $500,000's plenty.

That'll keep you going for
about another six months.

And you're not open to
a different royalty structure?

No, no.
If you had five offers here,

mine wouldn't be the one
you'd choose, but you don't.

Would you do the $500,000 at 5%

with a $3 royalty
paid back to the million?

No. No.

With all due respect,

I don't think we're going to
make a deal today.

I get that sense,
Haley.
Good for you, Haley.
Good for you.

Greiner: Good job.
You did a good job
here today.

I really appreciate
all your time and the feedback.

Thank you. Good luck, Haley.

♪♪

[ Voice breaking ]
This is my baby.

I put every single bit
of myself into this

for the last four years.

And I'll keep doing that
every day until we get to

where I know we can go.

Any investor she sees is going
to look at this and say,

"Wait a second. You're 90 days
away from oblivion."

You know,
she might surprise you.

I think what we'll see --


[ Laughter ] [ Laughing ] Kevin.

♪♪

Narrator: In Season 8,
army veteran Dale King

and his partner, Renee Wallace,

made a deal with Robert Herjavec

for their first-aid ointment
company, Doc Spartan.

Let's do it! Deal.

Let's see
what they're up to now.

King: After returning home

as an army-intelligence officer
with two deployments to Iraq,

I was completely floored
by the condition my town was in.

This area has one of
the highest addiction

and overdose rates
in the country.

I wanted to start something
that would be able

to give back to my hometown.

Wallace: We have now grown
into 30 different products,

and we are a complete
grooming and skin-care line.

When we pitched to the Sharks,

we had only done
$56,000 in sales.

Now, less than
three years later,

we're totaling $1.7 million
in sales.

Everything going alright?
Going great.

One of the most difficult things
for people in recovery

is finding employment
after treatment.

We began to hire people
who had completed treatment,

and then we began
to notice incredible

positive changes in their lives.

Now they're getting apartments,

they're regaining custody
of their children.

It's just an amazingly
beautiful thing to be a part of.

We made the commitment
that our entire labor force

will be made of people
in recovery.

I think people want to be
part of something,

especially if the mission is
solid and they believe in it.

I know you're going to bleed
for this to help the people

that depend on you guys,
and I love that.

Herjavec: Doc Spartan started
in a small town in Ohio,

doing everything themselves,

and still doing it themselves
in a small town in-house.

You can start from nothing,

and you can create
any kind of a business.

Along with the success
of our business,

it's just amazing
how far our town has come.

King: We've seen over 10 new
businesses open up downtown.

If we can do it here,

other people can do it
within their own communities.

One of the biggest lessons
the m*llitary teaches you is

to leave it better
than you found it.

And it's been
that guiding principle

that's helped us here
in our hometown.

Whoo!

This is our mission
and our legacy.

I've never been more proud
of Portsmouth,

but I'm really excited
for what the future brings.

♪♪

♪♪

Narrator: Next up is a better
way to store your leftovers.

♪♪

Hi, Sharks. I'm Jake Sendowski,

and this is my beautiful wife,
Michelle.

We're from
Los Angeles, California,

and we're here seeking $400,000
for 5% in our company.

Sharks,
this is our friend Jerry,

and, like us,
Jerry loves whipping up

some delicious
home-cooked meals.

Tonight, he's making a big batch

of his grandma's
famous chili recipe.

But let's face it, Sharks.

There's no way Jerry
is going to eat all that chili

in just one sitting.

So what's he going to do?
He freezes some for later.

But what does he freeze it in?

We all know that freezing
in plastic bags is a mess.

Greiner: [ Chuckles ]
Corcoran:
No, don't do it.

And storing food in glassware
that can break in the freezer

is a nightmare
waiting to happen.

What if he only wants
to defrost a little bit,

but he froze it
in a gigantic container?

It's impossible.

Don't worry, Jerry,
we got you covered.

Introducing
Souper Cubes...
Souper Cubes.

...the best way to freeze food
in perfect portions.

Our silicone trays come in
four different sizes

so you can freeze


or even 2-tablespoon portions.

Souper Cubes has
the right container for you.

Just pour the food
into each compartment

up to the fill line,

pop on the snug-fitting lid,

and stack them
on top of each other

to store in the freezer.

The next time you're ready
for some of that chili again,

pop off the lid,

pop out a perfectly
portioned cube...

Pretty cool... heat it up,

and your food is ready to go.

With Souper Cubes,

we're helping any home chef
reduce their food waste,

step up their meal-prep game,

and store their food
efficiently in the freezer.

Sharks, who's super excited
to partner with us

and freeze out the competition?

Sharks, in front of you guys,
you have examples

of some of our trays.

Souper Cubes! Greiner: Whoo!

[ Laughs ] I love the name.

Very excited about the name.

Souper Cubes! [ Laughs ]

Jake: Jerry's gonna take off
and go have some of that chili.

Yeah, we got to get rid
of him.
Michelle: Thanks, Jerry.

So, if you look at them,
there's a sturdy rim,

and so in each rim
there is steel

so you have confidence
walking to the freezer.

Right, you fill it up
with your food,

and then there's no way
the tray is going to fold

or collapse on you
when you take it to the freezer.

The plastic lid that you
put on top is very firm.

And so you can actually
stack them

even before they're frozen
in the freezer.

Do you have a patent
on the product?

Yeah, so we have a design patent

that's been issued
on the original 1-cup tray,

and there's patents pending
on everything else.

Well, here's the question.

What are your sales? Exactly.

In 2019,
which is the first full year

that we had
to sell Souper Cubes,

we ended the year at $940,000.

Wow. Wow. Wow. Wow.

You got to hear about
this year.
Greiner: Okay.

So, this year, we've already
sold $1.6 million.

Yeah, Souper Cubes!
That's what
I'm talking about.

And we're on track
to make $3.3 million.
Greiner: Wow.

Ay, Chihuahua, caramba!
Souper Cubes!

Last month, we sold
$330,000 worth of Souper Cubes.

Wow. So tell us how.

So, it's a combination
of things.

We really benefited from
word of mouth of our customers,

and our customers love
sharing about Souper Cubes

on Instagram, Facebook, Twitter,

and they are really
passionate advocates for us.

What do they cost to make?

Sure. So, the individual trays
sell for $19.95 retail.

Our cost, landed,
is around $3.80 per tray.

Scott: Okay. Greiner: Nice.

Wow. I like that margin.

What's the sales distribution
look like?

Is it all
direct-to-customer online?

So, about 78% of our sales
come from Amazon,


come from our own website,

and then 14% of our sales
come from our retail partners.

We're in every single
Sur La Table store

in the United States.
Scott: Oh, nice.

We're also in every single
Williams Sonoma store

in the United States.

I built my business that way.
I mean, I got into Nordstrom.

I had no money for marketing.

Nordstrom said
they liked Kendra Scott,

and that immediately gave me,

you know, something to stand on,
because if they believed in me,

one of the top retailers
in the world,

it was able to allow me
to build my business,

and that business
fed to my online,

which is, like, the best,
so I think that's really smart

to still have some
very key wholesale partners.

Corcoran:
Why do you even need a Shark?

You seem to merrily be
rolling along.

We're looking for mentorship
from the Sharks.

I think some of the things that
we've realized as we've grown

is there are kind of
some bigger decisions

that we struggle
to make decisions on.

So, there was an opportunity
to potentially sell

to a very large retailer,

but it would totally change

the price point
for Souper Cubes.

And so we had a really
hard time thinking,

"Well, what would our
other retailers think?"
Cuban: Yeah.

"And is this better
long-term?"
Scott:
Smart. Very smart.

And I think
that kind of mentorship...

I mean, as a mom, I love this.

And I -- With my 7-year-old,
I made baby food for him,

and I would put it in these
little, tiny ice-cube trays

that were just plastic,
where I'm trying to get --

I only need one
because he's a baby,

and I wanted to thaw
that one out,

and it was like -- I had squash,

frozen squash,
all over my kitchen.

So I love this product.

I think you've really come up
with something brilliant.
Thank you so much.

Thank you. I've heard enough.

I'd like to make an offer
and get the game going here.

♪♪

♪♪

Narrator:
All Sharks are still in,

and Kevin is interested
in Jake and Michelle's

food-storage product,
Souper Cubes.

I've heard enough.

I'd like to make an offer
and get the game going here.

I'd like to get behind this
as Chef Wonderful...
Michelle: Okay.

...with one specific goal
with you guys.

I'd like to get
direct-to-consumer sales

up to 30%.

I have many other food products
in my universe of companies,

and we try and share data

so we can reduce
our customer-acquisition costs.

I'm going to make an offer
in two directions

'cause I don't know how much
you care about your equity

versus another structure
I'm gonna offer you.
Okay.

I'll give you the $400,000.

Structure one is, I get
a $0.40 royalty on every unit,

but I only take 3% equity.

That's offer one.

The second offer --
I'll do the $400,000 for 15%,

no royalty,
and I'll get behind it.

But those are two different ways
to go at it.
Yeah.

You know what?
I'm going to make an offer.
Okay.

I'll give you two offers,

but nothing fancy like Kevin
with the royalty, et cetera.

Just two straight-out offers.

I'll give you $400,000 for 10%,

or I'll give you $800,000
for 20%.

That's so greedy.



It's a lot of money.
I think --
It's a lot of money.

I'll just be hon--


than we anticipated
coming here today to give up,

and it's more than we discussed
with our partners.

So I think the first offer
of $400,000

would probably be a little bit
more appealing to us.

O'Leary: Why don't you like
my royalty deal,

which is only 3% equity?

Well, perpetual royalty
is the same as equity.

Perpetual royalty
is a bit --
Yeah, it's the same
as equity, effectively.

What if I cap the royalty
on some return?

Say I left it at $0.40,
and after I get a million,

it goes away forever?

That's it. It's gone.
But I keep my 3%.
Guys,
let me clear things out.

Look, what you've accomplished
is great.

I love your name.
Best name we've ever had.

Oh, thank you so much.
Souper Cubes!

But it's just not
a fit for me.
Yeah.

Okay.
I mean, I think what you guys
have accomplished is incredible,

but for those reasons, I'm out.

Thanks, though.
Thanks so much, Mark.
Thank you.
We really appreciate that.

Alright, well, I'm going to
tell you what I'm going to do.
Okay.

There's not one thing --
I was sitting here

trying to think,
what could I find fault with?

Like, is there anything
that I could find fault with?

And it was --

everything was a check, check,
check, check, check.

Like, love you,
love the product,

you did everything right,
you have great sales,

so guess what?

I am going to offer you
my golden ticket.
Okay.

I only do it once --
I saw that one time.

I only do it once a season.

It is really gold.
You guys know what it is,

because I've now done it
for at least three years.

So what it means is,
is that you're the hero item

that I've seen this season
thus far.

Wow. It's actually really gold.

And I will give you
the $400,000 for 5%.

That's what the winner
of the golden ticket gets.

I can't b*at that offer.
I can't b*at that offer.

I'm out. That's amazing.

♪♪

You've got a deal!
Alright, you got a deal.

Whoo! Yay!

We're gonna just do -- here,
I'll mail you the golden ticket.

Okay, okay. Okay.

Whoo! Thank you, thank you.

Oh, my gosh.
Love you guys, really.

I honestly thought,

"If we can get a deal with Lori,
she is the golden ticket."

[ Both chuckle ]
Did that just happen?

But the fact
that she gave it to us

shows us that she really
believes in our product

and she believes in us,

and that means everything
to us and more.

♪♪

♪♪

Narrator: Next up is a solution

for a common frustration
for women.

♪♪

Hi, Sharks.
My name is Elyce Billany.

I'm Nathan Billany,
and we're seeking $50,000

for 30% of our company, Byoót.

Now, Sharks,

we want to take you
on a little trip

to Jamaica,
where a couple of years ago,

the idea for Byoót
was conceived.

♪♪

Nate, I'm pregnant.

What?! [ Scoffs ]

More tropical drinks
for me, then.

Looks like I'll be spending
most of my vacay

in the bathroom.

[ Grunting ] Oh, geez.

Now, Sharks, as we can see,

Elyce over there
is struggling.
Ah!

One-piece swimsuits
are great and all,

but a dip in the pool
and using the loo right after --

it's a disaster
waiting to happen.

[ Grunting ] [ Laughter ]

Taking it off and pulling it
all the way back up again.

Aw, geez! It's hot, it's sticky,

and you're definitely
going to end up

with a burrito roll
for a swimsuit.

The ladies know exactly
what I'm talking about.

Nate, this is the worst!

And it was in that moment,

in that hot, sweaty
Jamaican bathroom,

that the idea popped
into Elyce's brain.

And, voilà,
the light bulb went off.

[ Chuckles ]

Introducing the Byoót suit,

a fashionable and revolutionary

one-piece swimsuit

that makes
going to the ladies' room

easier and more convenient
than ever before.

With just a couple
of cute buttons on each hip,

simply unbutton the sides

and get straight
down to business.

Sharks, our swimsuit
gives ladies the freedom

to confidently
strut their stuff,

all without the unspeakable
struggles of swimsuit removal.

Now, Sharks, who wants to join
our Byoót-iful business

and put an end to the world's
most annoying fashion problems?

And, Sharks,
we've set some samples

for you
to take a look at.
Thank you.

You are so brave
to be out here in a swimsuit,

and you look fabulous.

Well, thank you
very much.
Fabulous!

So, this is not just
for pregnant women --

this is for any women.

Greiner:
Yeah. It doesn't really have
to do with the pregnancy bit.

It's wet and it's so hard
to get on and off.

Right.
Scott:
It is a real problem.

As a designer,
I'm really impressed

because you have
that sheer panel,

and it's kind of got
a retro vibe to it.

I mean, this is a gorgeous,
quality swimsuit.

Thank you. [ Laughs ]

Elyce, how long did it take you

to get the business
up and running?

So, from the idea, I started
sketching on our Jamaica trip,

while he had
coconut drinks.
Literally right there.

But, remember, we live in the
swimsuit capital of the world,

in eastern Iowa. Yeah, Iowa.

Yeah. [ Laughter ]

And did you have
some background in sketching

and designing anything? No.

No, nothing. Wow.

I grew up in a really
small town in Iowa,

didn't even really know that
business was an option for me.

But actually,
it was really when I met Nate --

we had our first business,

we had a skincare company
that we were making soaps

in our basement --

that I was like...
Literally,
in the basement.

I'm just like, "I can't do
anything else with my life

other than, like, create things
and run a business."

Be your own boss.
Scott: I love that.

I grew up in a little town
in Wisconsin.

Same thing.

I didn't see anyone that
I could role-model myself after.

So kudos to you. Thank you.

Have you sold any yet?

Yes. 10,000, give or take.

$10,000? $10,000.

I want to set the stage for you.

You were talking about how you
liked the mesh panel so much.

Well, when I first received
the bulk order...

So, I started sending them out,
but I quickly realized

that the suits didn't fit
as universally

as I had hoped that they would.

And so I had to figure out
what to do.

So, when I got them,

we found out that the torsos
were just a little too short.

So, actually,
they didn't come with the mesh.

-Oh, wow! -Whoa!

Yeah, there you go.

Problem, solution.

So, at that point,
when I found out

that I needed to do
something different,

I did halt on any launch,
any sales.

So, we had about
$6,000 in preorders

and then about another $4,000

of just people
that just found us randomly.

And I'll be honest,
at the beginning,

I would send them out

and I would get
quite a few returns.

But the cool thing about that
is I found out

that there's other ways
to sell online.

So, I did a virtual fitting
where they will set their time

and whether they want to do it
on the phone or Zoom.

I get on and I'm like,
"Hey, do you like more coverage

on the bust?
What do you think
about the back?"

Do you have a sense
of what your demographic is?

How old are those women?

Yes. So, I really think
our demographic

is more the 40-plus.

And I didn't know that
when I designed it.

The reason I ask that
is I invest in a business

called Raising Wild,

and I've learned quite a bit
about bathing suits.

It's one of the toughest
darn businesses in the world --
It is. 100%.

...because there are so many
different length trunks

in a one-piece space. Mm-hmm.

And I also found that
they could never guess right

how many of each SKU
for each size.

So they always were stuck
with doing limited runs,

which costs the fabric
much more.

So, from all of that experience,

I learned that it's a tough,
tough business.
It's a tough business.

I feel like it's not the kind
of business that has room

for a third partner anyway.

And for those reasons, I'm out.

So, what does it cost you
to create this suit?

And what are you
selling it for?
Yep.

So, they cost between --

Originally, they cost
between $29 and $35.

To make? To make.

To make?
And we've experimented
with the retail price.

Small batch.
Very small batch.
Scott: Right.

We'd like to get the cost
of goods down somewhere

in that ballpark
of 16 to 20 bucks.

Okay, and you sell it for...?

We sell it for --
So, this is the other thing.

This last year,
I've been testing prices.

So, I did start --
we did like $59 to $120.

Just to dabble
and see what hits.
And what I found out

was the younger women would
gear more towards that $59,

and then the older demographic,
the 40-plus,

that demographic
is willing to pay.

It's adorable,
and you're fabulous,

but I don't think it's the right
investment for me.

So, I'm sorry. I'm out.

Okay. We really appreciate it.

Guys, look, I'm not the one

to speak to the buttons
or not buttons,

but what I can speak to is,
in this environment,

where people
are staying at home,

people want to be interactive
and have that personal touch

and be guided through
a selection,

particularly like this.

Absolutely.
That's your grand slam.

Yep. Right?

Because you don't have to sink
all your money

into all that inventory

if you can just brag,
"I'm the swimsuit whisperer.

Let me get online with you
on a Zoom call,

on a personal call."
And then once you get

a base of customers
who can refer other customers,

then someone is gonna come
to you and say, "You know what?

We'd like to put it
on our website.

We'd like to work with you."

That's how you build a brand
like Kendra has done,

but it's not a fit for me.

And so for those reasons,
I'm out.

You have picked a sector

that it's almost impossible
to make money in,

for all the reasons
you've heard here.

Luckily, there's a lot
of barns in Iowa.

Find a nice barn,
and just go sh**t it.

I'm out.

Do you know how many people
told me that I couldn't do this?

Do you know how many people
said, you know,

"There's thousands of jewelry
designers out there --

What makes you special?"

I always love it when somebody
tells me I can't do something.

So take that and use it as fire.

You need to be able to take
a 360 approach, though.

My first business
was a hat company,

and I thought the whole world
was gonna wear hats again

like it was 1940.
That didn't happen.

After five years of trying
to make this business work,

I had to close it.
I failed. Right?

And the thing that was working,

I was making jewelry
in this little hat shop,

and that's what
was selling every day.

My answer to my future
was in front of me,

but I was so laser-focused --

Is this a nice way of saying
take it behind the barn?

No, I'm saying, look,
you've got to start somewhere.

And this is a beautiful product,

but I think you need
a little bit more time.

I think you're gonna need
a little bit more sales.

But I want to be able
to help you,

so here's what I'm gonna do.

I don't want to take
a bunch of equity,

so I'm gonna give you a loan.

I'm gonna do
a three-year note, okay?

$50,000. I'd like 10% interest.

And I still want
a 5% equity position for that --

What a savage.

...for my advice.
Alright? Kendra Scott.

What a savage.
Corcoran:
That's more than fair.

And you have Kendra Scott
as your...
That's not very Shark-y.

I've never seen such
bathing suit greed before.

No, I mean, you should just
say yes right away,

'cause that's a gift.
I learned from the best!

That's a gift. If you even
hesitate -- Just say yes.

Don't say yes. That's debt.

♪♪

You have a deal.

There you go. Corcoran: Done.

Congratulations.
I'm excited for you.

We can't wait
to work with you.
Ugh!

Thank you.
Lovely to meet you.
Bye. Thanks, everyone.

Bye!

♪♪

Elyce: So, Kendra's from
Wisconsin, I'm from Iowa.

It's just the perfect
connection.

I am so amazed
by what she has built,

and we could not be
more grateful and more excited

to have Kendra Scott
as our partner.

I loved them. It is impossible

to make money with
what they're doing.

You know what? I got a loan.
They're gonna pay me back.

I couldn't take


That's just wrong.
No, you should've
taken 80%.

Yes!
I couldn't do it.
I couldn't do it, y'all.

I can't. This is what you did.

They're from Iowa.
♪ Ah, ah, ah, ah ♪

No, no.
Just think about,
every day,

they're just b*ating themselves
up with these buttons.

[ Laughter ]

♪♪

♪♪

Narrator: Next into the t*nk
is a family

that wants to spice up
your life.

♪♪

Hi, Sharks.
My name is Tyla-Simone Crayton.

And I'm her mother,
Monique Crayton,

and we're from Houston, Texas.

Ooh!

Sharks, we have a secret.

[ Chuckles ]

Together: Sauce!

Introducing the award-winning
Sienna Sauce.

It's delicious. So good,

it was even featured at
the World Food Championships.

Sharks, when I was 8 years old,
my favorite wing place closed.

And I loved their sauce so much,

I couldn't imagine life
without it.

So I tried to re-create it,

but ended up coming up
with something even better.

Sienna Sauce was created
in my kitchen,

has grown into a line
of three flavors --

tangy, lemon pepper, and spicy.

It's gluten-free,
has no high-fructose corn syrup,

and can be used
as a marinade, dip, glaze...

...or even your favorite new...

...put-that-on-everything sauce.

And, Sharks,
that's just the beginning.

We're seeking $100,000
for 10% of our company,

and we'd love your help.

But first,
let us sauce up your life.

We're gonna ask you to start,
from left to right,

with our famous Sienna wings.

That's where we got started
in our kitchen in 2017.
Corcoran: Mmm.

Then we will have
our French toast bacon jam.
Wow.

So, the great thing
about our sauce,

it's also an ingredient. Yeah.

So we use our tangy
to create a bacon jam.

Wow. I love the bacon jam.

I'm still on the tangy,
but it's sweet

and it's got a little kick.

Yeah. Yes, yes.

Mmm! It's so good.

Next, you'll have
the roasted lemon pepper

with Brussels sprouts
and potatoes.

That's our most
popular flavor.
Mmm!

Then next, you're gonna go
to the smoke sauce.
Mmm!

That's our new sauce
that we're introducing.

For her birthday next month,
we're introducing the --

Happy birthday.
Yes, for her smoke sauce.

How old are you? I'm 16.

Oh, my goodness!
So smoky and delicious.

Oh, good. Thank you. Mmm!

And then, last, you have
your shrimp cocktail.

And we saved the spicy for last

because we didn't want you
to mess up your palate

before you get to that spice.

Whoa! Ah, ah! Whew!
O'Leary: Oh, that has a kick.

That's hot. That's hot. Yes.

It's delish. I like it, though.

Corcoran: Wow, you need
a hose on that one.

[ Laughing ] Yeah.

They're not from Texas.
They can't handle it.

Whoo!

Where are you selling
your product now?

So, right now,
we're in 68 stores.

-Wow. -Wow.

People buy it online, and
we ship all over the country.



and 30% of our sales
are in stores.

Wow. And what are your sales?

So, lifetime sales are $255,000.

Mm-hmm. Greiner: Wow.

Last year, we did $171,000,

and this year so far,
we've done $84,000.

That's a lot of sauce.
[ Laughing ] Yes.

Where are you manufacturing?
What are we looking at

from your cost of goods
to where you're selling it?

Yes. So, currently, we
are manufacturing in Houston.

Our retail price for our product

is $9.95 online.

Greiner: Now, I have to go back
for a minute.

You said you were 16 years old?

Yes, I created the sauce
when I was 8.

So, finally, my mom said
I could bottle it.

So I initially started
the company when I was 14,

and we started
with a wing place.

So we sold wings
out of our house

for a whole year,

and we made $50,000

selling the wings
out of our house.

That's what's up!
That's awesome.

That is incredible.

And then end of 2018
is when we actually started

selling the sauce.

And so, with that,
we stopped the wing place

and we were like,

"Since you guys love
our wings so much,

you buy our sauce
and you make it yourself.

And not only is it good
for wings, but you can use it

on all of these
amazing foods, as well."

Corcoran: I don't get
why you stopped it, though.

Why stop it if it was dragging
customers in to try your sauce?

So, when she was ready
to bring the sauce to market,

the smarter thing for us to do
in our business model

was to bottle the sauce first.

It was the best way
to get her started,

because we couldn't afford
at the time

to put the money
into a brick-and-mortar

or food trucks.
But we still have that base.

We still have
that customer base,

and they still love us.

You said 68 stores. Yes.

So, currently,
we are in Wegmans.
Yeah.

Okay. Greiner: Oh, wow.

That's a big accomplishment.

Yes, so we're in 10 stores
on the East Coast in Wegmans.

We're a test market with the --

Tyla, you're amazing. Thank you.

How are you 16?
This is incredible.

Were you at 8 years old going,
"I want to make products"?

So, it kind of came from me
watching this show.

And when I was 8 years old,
me and my mom,

we had just came
from being homeless.

And we moved into
this one-bedroom apartment,

and I started watching
"Shark t*nk."

And that's when I started

seeing entrepreneurship
as an option.

And as I got older and was
finding out more about myself,

I decided that entrepreneurship
should be the route for me,

and I started
my business.
That's awesome.

And through our company,
we actually give back a lot.

I knew that me selling sauce

would be an inspiration
to the youth.

And that's why I speak
almost four times,

three times a month,
speaking to the youth

and telling them that
entrepreneurship is an option.

Corcoran: Amazing. Greiner: Wow.

I mean, Monique, you must be
beaming with pride.

Good for you.
That's awesome.
Monique:
I am beyond proud.

She inspires me
every day.
Corcoran: Of course.

And I'm just always
in awe with her.

So, yes.

When you went homeless
for a period of time,

how did that happen?

So, we were actually living
in a very nice brownstone.

And the woman who was
renting it to us,

her son was coming home.

She wanted the house for him.

And so we had to leave,
and at that time,

my mom, she didn't have a job.

And she made a promise
to me, like,

that we would never
be homeless again.

And that just really taught me
about her hustle,

because she sold baskets
for baby showers,

anything that she could
possibly do.

Way to go.
And then when we got
the apartment,

she got a waiter job
right by my school.

So every day she could come
pick me up from school,

and I would sit there and wait

until she got off of work
and do my homework.

And that's how we were able
to keep the apartment.

-That's unbelievable.
-Wow. What an amazing mom.

Thank you. Yes. Thank you.

O'Leary: So, the great news
about this sector

is the condiments
and the sauce business

is in the billions of dollars.

The bad news is
it's really competitive.

Right.
And so to get
national rollout,

you have to be working with
a distributor in this category.

That's why we're here.
We're here for a Shark.
Yeah.

Because we know that if you make
the call, it's gonna happen.

I am your Shark.
I am the Shark for you.

And I'm gonna tell you why.

One, I'm a Texas girl.

Two, my first employee
was my mom.

And my mom and I sat
and ticketed and carded jewelry

on my dining room table,

and we put every dollar we made
back into that business.

I'm sitting in front of you,
somebody who built

a billion-dollar brand
out of their --

literally, an extra bedroom
of their house, okay?

And I think you have
an amazing, amazing product.

But I'm a little concerned
where we are with the valuation.

$100,000 for 10% --

I don't think you guys
are quite there yet.

Right? But you need me.

So I'm gonna give you
your $100,000,

but I want 20% of the company.

Greedy.

Just say yes.

And I can help you
with the distributors,

I can help you
with the shelf space.

I can help you
with all those things

because it is
in my wheelhouse.
Hey, guys --

And the most important thing

is I know I can help you
build this brand.

Hey, guys, I'm out.

Barbara,
are you in?
I'm out, too.

Lori? I'm out.

Kevin?

I want to talk about valuation.

Ohh, Kevin!
No, Kevin!
Oh, my gosh.

O'Leary: She just offered you
a half-a-million valuation.

I wouldn't offer you that.

I'm not sure yet
what you're worth,

because you don't have enough
sell-through data.

You don't have
much distribution yet.

And let me make it easy for you.

I'm out.

I would love to counter you.

Um, would you be willing --

There's no other Shark,
and you're gonna counter her?

You're gonna counter me?

I mean, my 10%
that I'm gonna give

on top of the 10%
you're asking for

is, one, you got a Texas woman.

I mean, this is Mr. Wonderful --

you got Wonder Woman
on your team, alright?

And I love your product, and I
can help you make this happen.

And also, because
I went through this,

so I'm gonna save you
so much money and time.

♪♪

You have a deal.

[ Cheering ]

Yes! I'm excited!

I'm so excited
to be your partner!
Thank you.

-Congratulations, guys.
-Thank you. Thank you.

Yeah! Let's sell some sauce!

Congratulations, guys.
Well done.

Thank you.

♪♪

Yes!

Tyla-Simone: It's amazing.
I mean, we were homeless,

and now we have a deal
with a Shark.

And this is gonna take our
company to a whole nother level,

and the future is endless.

♪♪

♪♪

♪♪