'Shark Tank' contestant was offered $350,000 by three judges and he knew exactly whom to pick
"Shark Tank" judges can be hard to please, and even though they're impressed by a pitch that stands out, these investors are ruthless negotiators. The founder of 'Permaplug', Zak Jones, convinced not one but three sharks to offer him deals each worth $350,000 for his permanent plug-in charger. In the end, he revealed that he had also done his own research, which made him choose Lori Greiner as his partner.
Jones entered the Tank seeking $350,000 for 15% equity in his company. During his pitch, Jones explained how big the problem of missing chargers was, as people often misplaced their much-needed devices. Thus, to solve the problem, he came up with the Permaplug, a patented charger lock that keeps chargers secured and plugged in at one place, at all times. He explained how the product kept the chargers safe, especially in homes with kids, roommates, or guests. He demonstrated how easy the Permaplug is to install and how users can do it with just a screwdriver.
After his pitch, guest judge Daniel Lubetsky asked if the product solved the problem for people on the go. Jones admitted that while the product worked great in a home setting, it wouldn't work for people who need to travel around and stay at hotels. O'Leary then jumped in, asking Jones to reveal the numbers. The entrepreneur shared that his company had done $456,000 in year-to-date sales and $665,000 in the past 12 months.
Robert Herjavec asked how Jones generated those numbers, and he explained that all sales were direct-to-consumer, boosted through social media, organic marketing, and SEO tools. He shared that most sales came from Amazon, but he pushes traffic through his website as well by offering better pricing. Jones added that he had a profit margin of 58%, with an average order value of $58 and a customer acquisition cost of under $15.
Greiner then asked about ownership, and Jones revealed that he was the 100% owner of the business with no debt. He explained that he ran the company with his wife, and he handled everything from packing to shipping while raising two young children. He added that he doesn't draw a salary yet, but plans to soon make money. With everything out in the open, O'Leary made the first move. He offered $350,000 for 15% equity but with a $2 royalty per unit forever. Lubetsky then jumped in to offer the same amount for 25% but no royalty. After Herjavec and Mark Cuban dropped out, Greiner offered $350,000 for 20% equity, with a $1 royalty per unit until she got back her money.
Jones noted that Greiner had the best offer for him, but was cut off by O'Leary, who said, "Well, no, she's not Mr wonderful". However, Jones had the perfect response as he said, "I grew up not caring about being an athlete. I didn't look up to any athletes, I didn't look up to any actors or anything, I looked up to people like you guys. So, I know everything about all of you, and I know what you've done with companies." He then reiterated that Greiner's offer was the best for him, and he accepted the deal.
The investment turned out to be fruitful as Permaplug continues to be a successful company. Jones expanded the product's reach to Canada and Mexico, and the company is worth $1.75 million as of 2025, according to "Shark Tank Blog."
