ENTREPRENEUR: Susie and Steve Taylor
ASKING FOR: $40k for a 14% stake
BEST PART OF THE PITCH: The Taylors were tired of buying bibs that didn't work for their messy baby boys. So they created a bib that slips over a child's head and has slots for the arms. The design of the product allows you to cover the baby's entire body. The bib never stains thanks to their patented fabric. It costs $15 to make, so the profit margin isn't great. But Susie and Steve say their bib will last for years unlike others on the market. They have about $17,000 in sales over the last 12 months. Susie gets emotional when she talks about how she's just a mom trying her best to raise her kids the right way.
DO THE SHARKS BITE? Mark likes the product and doesn't believe they need to sell it retail. He thinks they need to find a better salesperson to run their company. He's out. Barbara believes that they could get a legion of moms to help sell their product, but her instincts tell her that she can't invest. Kevin feels their product is a hobby, not a business. The margins are just too high. He believes it's time to take the bib behind the barn and shoot it. He's out. Daymond can't help educate people about the bib. He's out. Robert doesn't believe they have a clear plan on how to make the bib successful. He's out, too. Susie says she won't give up. Moms need better products and she's going to give it to them.
LEARN MORE: Visit http://www.bibbitec.com
ENTREPRENEURS: Rabbi Moshe Weiss
ASKING FOR: $54k for a 26% stake
BEST PART OF THE PITCH: As a rabbi, Moshe is always looking for ways to help others make their "oy vey" go away. He's created a magnetic, power-free sound amplifier for the iPad. It costs about a dollar to make without packaging. He sells it for $12.99. Moshe has sold 7,000 units online over the past six months. He has high interest from Walgreens.
DO THE SHARKS BITE? Kevin wonders if he'd be interested to license the product so they can produce it even cheaper in foreign lands. The rabbi is not willing to do that, so Kevin is out. Mark believes it's a nice business, but doesn't see it getting all that big. He's out. Barbara wants guarantee that she'll get her money back, but the rabbi isn't willing to go the royalty route. She's out. Daymond wants 40% of the company but it is contingent on the Walgreens deal. Robert fears this will take up too much of his time, but still makes the same offer as Daymond, but without the Walgreens contingency.
THE RESULT: Moshe considers both offers, but opts to partner with Daymond. He believes this particular shark is a marketing genius. With SoundBender, they hope to make beautiful music together. Lots of money, too.LEARN MORE: Visit http://www.theSoundBender.com
UPDATE: Cousins Maine Lobster
Jim Tselikis & Sabin Lomac struck a deal with Barbara regarding their lobster food truck company. Since their appearance in the tank, they open up a huge distribution center to ship fresh Maine products all over the country overnight. They've done $700k in sales in just a few months. Barbara joins the guys for a visit to the governor's home in Maine to receive a certificate recognizing their accomplishments in creating jobs and helping the local economy.
ENTREPRENEUR: Mike Robinson
ASKING FOR: $400k for a 20% stake
BEST PART OF THE PITCH: Mike's career has taken him on the road a lot over the years. That means he's been away from his seven beautiful children for large chunks of time. It takes a toll on the relationships. Mike created a stuffed bear with technology that allows you to send your recorded voice to your child from anywhere at any time. He's spent about half million bucks in development.
DO THE SHARKS BITE? The sharks get uncomfortable when Mike doesn't answer the question about his sales numbers right away. Barbara has a bad memory of her dad having recorded his voice for her family when she was young. It actually made her sad because he wasn't there. She's out. Mark doesn't see anything unique with this product. He's out. Robert follows his lead, as does Daymond. Kevin can't give Mike the money he wants for a business he doesn't think is worth it. He's out, too. Looks like Mike will have to cuddle up with another partner.
LEARN MORE: Visit http://www.cuddletunes.com
ENTREPRENEUR: Lena Phoenix & Steven Sashen
PITCH: Xero Shoes
ASKING FOR: $400k for an 8% stake
BEST PART OF THE PITCH: Xero Shoes is described as "Original Barefootware." It's a high-tech shoe that is biomechanically identical to being barefoot while containing an added layer of protection. Robert is the only shark who is a runner, so he tries out the product. He thinks the shoes feel great. They've sold over $650,000 in shoes over the past two and a half years. They are on track for $1.2 million in sales for the year.
DO THE SHARKS BITE? Daymond believes a competitor will come along soon and do what Lena and Steven have done, which is basically put some string on a piece of rubber. He's out. Kevin thinks the business is a crapshoot, but he's willing to give them $400k for 50% of the company. Barbara isn't crazy about the product. She's out. Robert can't get on board with the evaluation of the company. He's out. Mark is out, but he says Lena and Steven should take Kevin's deal before the bubble on their business bursts.
THE RESULT: The only offer Lena and Steven have on the table is from Kevin for 50% of their company. They are not willing to give up that much equity at this time, so they decline the offer. Mr. Wonderful says they are dead to him. That just makes Lena and Steven want to prove to that he made the wrong decision.
LEARN MORE: Visit http://www.XeroShoes.com