'Shark Tank' contestants change Mark Cuban's mind and get a $300,000 deal after he pulled out
Investors on "Shark Tank" are known for their sharp business acumen, and they don't entertain a venture until they see potential. But there are occasions when the judges have second thoughts due to various personal and financial reasons. Mark Cuban did something similar when the founders of Dude Wipes arrived on the show. He initially pulled out but then changed his mind and closed a game-changing deal with the entrepreneurs.
The entrepreneurs wanted $300,000 for a 10% stake in their company, placing a valuation of $3 million. However, they only had $300,000 in sales year to date. They projected total sales of $1.5 million by the end of the year at the time of taping.
This was because the entrepreneurs had, at the time, just cut a deal with a nationwide retailer, which was worth millions of dollars. But Cuban did not see himself as a shark who would be successful in promoting a product that people would use to clean themselves.
Despite this, the entrepreneurs did get a couple of offers, but they did not seem very happy about those. Kevin O’Leary and Robert Herjavec had both offered $300,000 but wanted 25% of the company. Barbara Corcoran and Lori Greiner were not interested. Mr. Wonderful called it a “fair price,” but Cuban believed that he was trying to wipe the entrepreneurs out. At that point, the owners of the company faced a dilemma.
Some entrepreneurs have a preferred shark when they come on the show. They would not mind giving up a larger share of their company than expected if it were that particular shark. Cuban could have very well been that person in this scenario. After seeing the entrepreneurs hesitate to take a deal, he saw an opportunity and offered $300,000 for 25%.
The entrepreneurs accepted the deal in an instant. They were not willing to do so with O’Leary or Herjavec. Well, it turned out that Cuban was the perfect business partner because today, Dude Wipes is massive. They appeared on “Shark Tank” in 2015 with sales of $300,000. By 2020, that number was a whopping $40 million. Part of it was due to the COVID pandemic, as people stocked up on toilet paper.
Dude Wipes was a product that was to be used for the same purpose, so it is no surprise that their sales skyrocketed. Today, the company is as successful as it has ever been, bagging sponsorship deals with major sports and entertainment bodies like NASCAR and WWE, as per a Marketing Dive report.
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