Red Dress Boutique Gets $1.2 Million on Shark Tank
Shark Tank Season 6, Episode 5 started with Rachel and Steve McMurtrey presenting Jungle Jumparoo. They came in asking for a $100,000 in exchange for 20% equity in their kids bouncy toy company. The Jungle Jumparoo is essentially a large innertube with tall sturdy poles on the interior of the tube for kids to hold onto while they bounce. In a year of business, Jungle Jumparoo has sold about 1200 units, at $399 apiece for the large toy, and $249 for the smaller version. They have design and utility patents pending, and the kids in the tank appear to love the bouncy toy. The Sharks, however, are not so convinced. Mainly, they’re concerned that retailers won’t want to carry the Jungle Jumparoo because of it’s large shelving space required. While the McMurtreys are hoping a Shark can help them fulfill their 11,000 unit order from Sam’s Club, the Sharks just have too many concerns about the merchandising, scalability, and the safety of the Jumperoo. With this development all sharks are out.
Second presenter that night is Megan Tarmey pitching her company, The Caddy Girls. Megan is looking for a $100,000 in exchange for 20% equity in her all-female caddy company. The Caddy Girls can handle anything from providing caddies for everyday golf outings to staffing large corporate or charity golf tournaments. The Sharks are surprised (and impressed!) to learn that The Caddy Girls did $148,000 in sales in 2013, based on a rate of $149/caddy for 18 holes (the caddies each earn $100). Megan explains that they’re hot girls that know about golf, and that she maintains strict standards of conduct among her fleet of caddies. The Sharks are stuck on her high valuation, but she defends the half-million dollar valuation bu saying that the lifetime value of her customers is high, and that getting a sponsorship at the PGA tournament would hugely kickstart her growth and expansion. Unfortunately while the Sharks are impressed with Megan’s business sense and presentation, the Sharks are out for a few reasons; Mark hates golf, and Lori just can’t get behind this kind of company. Still, Kevin makes and offer of $100,000 for 50%, but Megan doesn't want to give away half of her company. No deal is done.
Third into tank are Josh and Diana Harbour, the couple behind the Red Dress Boutique, seeking an investment of $600,000 in exchange for 5% equity in their company. Red Dress Boutique is an online women’s retailer that updates its collections daily and custom curates clothing and accessory pairings for its shoppers. The Sharks are loving the low price point on the clothes (80% of items are less than $50), and loving even more that Red Dress Boutique had $8 million in sales last year and is projecting $12-15 million this year. The couple has a dream Shark Tank success story: they quit their cubicle jobs and took out a huge loan to start Red Dress Boutique, even sleeping on an air mattress in a friend’s house to get their business off the ground. Now, they’re doing $1 million a month in business, primarily relying on social media to help them curate the items that appear in their boutique. Unfortunately, Lori and Daymond are both worried they won’t be able to bring very much to the table, so they’re out. Robert makes an offer of $600,000 for 15%, reasoning that he can help them with the back end data collection that they struggle with. The equity is too high though, so they decline. Mark then throws the ball in their court, asking the Harbours to make him a better offer. They come back at $600,000 for 10%, which Robert offers to split, but Mark still doesn’t think that’s enough skin in the game. Robert counters with $1.2 million for 20% for both him and Mark. Without a hesitation, the deal is done!
Last presenters that night were H2W’s David Levich, Eric Liberman and Dan Gershon, representing their company Sun-Staches. The guys are seeking a $300,000 investment in exchange for 5% equity in their novelty sunglasses company. The sunglasses cater to a variety of characters from pirates to cats, and everything in between. Clearly the public loves Sun-Staches, as they did $5.7 million in sales last year, and are on track to hit $6.4 million this year, which will leave them with a $750,000 profit. Sadly, Kevin tells them that they’re not worth their $6 million valuation, and that he says even $2.5 million is generous. The guys are hoping a Shark can help them explore the licensing route with major sports teams and comic companies like DC and Marvel. In standard form, Mark asks them for their best offer for $300,000, and Kevin tells them the right answer is 20%. The guys counter back at 10%. Things are going downhill with Kevin and Mark, and then Daymond offers $300,000 for 25%, including manufacturing costs. The guys counter Daymond and ask if he’ll go in with Mark for $300,000 for 12.5%, but neither Shark is interested. They counter Daymond again at 15%, and Daymond is only willing to go to 20%. They counter again at 17% but Daymond stands firm at 20% and entrepreneurs accept his offer.