S16.E03: Yardsale Magnetic Ski Poles; Kobee’s Lip Baum; Sugardoh Hair Removal; Doatnut Gluten-Free Doughnuts

[CrazyInAlabama]

New, 11/1/2024

Sharks- Mark,  Kevin, Lori, Daymond, Guest Shark: Kendra Scott

Yardsale Magnetic Ski Poles-Customizable ski poles. Seeking $200,000 for 10%.  Innovative ski poles in five colors, magnetic so handles and baskets stick together, they come in five sizes. Kids poles are adjustable. They’re the only ones selling these.  (A Yardsale is when a skier wipes out, and everything goes everywhere).  Expect $2.1 million this year.  Great margins.   Lori wants to change the name, and she’s out.  Daymond loves the name, not a skier, and he’s out.   Mark is out, not a skier either.   Kendra They offer Kevin a royalty, he offers $200,000 for 15%.   Kendra says 20%, $3 royalty until she gets her money back.   Kevin offers $5 royalty, $200,000 for 10%.   Kendra wants 10% for $200,000, with royalty until she gets $300,000 back.

Kendra makes the deal.   (She’s the only skier on the panel).

 

 Kobee’s Lip Balm-all-natural lip balms. Seeking $300,000 for 6%.  Made from natural ingredients beeswax, oils, butters.   10 flavors.  Compostable packaging.  All direct to consumer, and on Amazon.   He makes it all himself.   Sales are almost 1.5 million this year.  Margins are great, sales are increasing.  Kobe needs a mentor.  He started this at college, and has been selling ever since.  Kendra is out.   Lori is out.  Mark is out.  Daymond loves the product, but not in this business, and he’s out.  Kevin says getting point of sale shelf space will be tough, but offers $300,000 for 20%.   Kevin next offers $300,000 for 15%.

Kobe turns down the deal.

 

Sugardoh Hair Removal- at-home sugaring hair removal kits.  Seeking $500,000 for 5%.  Made of sugar, water, and scent.  Kendra will sugar a man’s hair off.  You put the sugar on, let it heat up from body heat, and pull the applicator off.   $10 million valuation.   Ancient technique updated to the current time for home use.   Process is the patent.  Sales started in 2020.  2021 $2.6 million, 2023 $5.6 million.  They’re on Amazon, Ulta.  Their margins are 80% now.  $1.5 million in debt, and $1 million in inventory.  Debt is 20% interest.   Mark is out.   Kevin doesn’t like the valuation, or the money asked, and he’s out.  Daymond is out.   Kendra is out.   No shark likes the money she’s asking for.  Lori says market is too competitive.

No deal. 

 

Doatnut Gluten Free Doughnuts-a line of oat-based doughnuts. Seeking $100,000 for 10%.  Doughnuts using oats, gluten free. A healthy version of a guilty pleasure, no dairy, no gluten, miniscule amount of sugar sweetened with Monk fruit, oats, baking powder.  90 calories per doughnut.   A farm to finger experience.  Flavors are  Churro,   Sales are from one store, margins are good, but Sharks say too cheap.  She wants to scale with a Sharks help.  All are shipped fresh.   $50,000 in sales this year.  $350,000 in sales since 2020.  No one likes the valuation.     Sales are low for the valuation.     Kevin is out.  Daymond is out, not his type of business.  Kendra asks about the dream for the company, and Kimy wants to expand, but Kendra is out.   Mark and Lori are talking about a deal.  Lori and Mark offer $150,000 for 30%, 15% each.     

Mark and Lori make the deal $200,000 for 30%.  

Update: Glove Wrap, deal was with Mark Cuban and Michael Rubin, a guest shark.  Sales have gone up to $200,000.  And sell at Dick’s Sporting Goods. 

Edited November 2 by CrazyInAlabama

[bilgistic]

I've seen the lip balm guy on Instagram and have been very tempted to buy, but I have more than enough lip balm.

I love donuts, but there are only two flavors on the Doatnut website right now, and they are $27 for a half dozen!!!

[tired and hungry]

Did anyone else think the Lip Balm guy seemed a bit too arrogant? Why he was acting so smug? The start of his pitch seemed fine but towards the end I didn't really like his attitude.

All the reactions from Kendra and not a single smile line or wrinkle visible on her face!! Kudos to her doctor I guess..😬

(Sorry for my petty rants. I don't know why I even watch this show at this point...😪)

[Shrek]

Haven't watched it yet & might not even bother with these ridiculous amounts people are asking for. $500,000 for 5% & $300,000 for 6% are just stupid amounts. At this point just stop the insanity & put this show out of its misery.

[CrazyInAlabama]

7 hours ago, bilgistic said:

I've seen the lip balm guy on Instagram and have been very tempted to buy, but I have more than enough lip balm.

I love donuts, but there are only two flavors on the Doatnut website right now, and they are $27 for a half dozen!!!

That's half the price of the fried chicken ice cream last week. 9 piece family bucket for $110.

I liked the idea of the doatnuts, but not at that price.  

Kobee's lip balm is on Amazon.  He also sells hand salve, lip scrub, lip cure, lip moisturizer, cuticle butter. 

Ski poles look like a good idea, but I don't ski.   

Sugardoh looked interesting, but I'm not buying it either.  

Edited November 2 by CrazyInAlabama

[aemom]

On 11/2/2024 at 11:34 AM, bilgistic said:

I've seen the lip balm guy on Instagram and have been very tempted to buy, but I have more than enough lip balm.

I love donuts, but there are only two flavors on the Doatnut website right now, and they are $27 for a half dozen!!!

Kevin told her to jack up the price, so I guess she did.  I suspect that she'll do well with Lori and Mark.

[Quickbeam]

I’ve used the Kobee lip balm and hand salve. I like them both. They are free of tocopherol (vitamin E) which most people like but gives me dermatitis. I’d keep buying them, they are not priced beyond what I’d pay. 
 

[eel2178]

On 11/2/2024 at 2:52 PM, CrazyInAlabama said:

Ski poles look like a good idea   

I don't want those magnets anywhere near my pacemaker. I also wonder what kind of tangled mess you get when you throw a bunch of those magnetic poles in the back of your car.

[Sir RaiderDuck OMS]

On 11/2/2024 at 9:00 AM, Shrek said:

Haven't watched it yet & might not even bother with these ridiculous amounts people are asking for. $500,000 for 5% & $300,000 for 6% are just stupid amounts. At this point just stop the insanity & put this show out of its misery.

Remember that the one big Shark Tank rule is you're not allowed to take a deal for less money than your initial ask. So asking for a lot of money for a small percentage and allowing yourself to be talked into giving up a bigger chunk is an acceptable gambit as long as the sharks aren't turned off by your initial valuation.

The lip balm guy made a mistake. Retail is where the big money is at in stuff like lip balm which most people never think about until they need it, but when they do need it, they're not going to wait days to get it from Amazon. They want it right now. Kevin's deal would have helped him get into retail. CVS, Walgreen's, and Safeway won't return Lip Balm Guy's calls. They will return Kevin O'Leary's calls.

The sharks liked Sugardoh, but if you gross $5.6 million and still run a $400K deficit, there's something fundamentally wrong with your business model. The sharks know a money pit when they see one.

I went to the Doatnuts website last night. New orders won't ship for 4-6 weeks. Didn't go further than that.