'Shark Tank' offers a life-changing deal to founder whose pitch involved taking a shower on the set
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"Shark Tank" judges can turn entrepreneurial dreams into reality but they also tend to be very harsh in their criticism. While some ideas get sweeping approval from the panel of celebrity investors, some divide the room. This is what happened when Mark Cuban invested $80,000 in a product that Kevin O’Leary described as “a garbage bag with a string on it”.
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In an episode from Season 10 of the show, Kressa Peterson pitched her innovative outdoor shower accessory called the "Shower Toga", with an ask of $80,000 for 33% of her company. Peterson who brought her husband, son, and daughter along, explained that their family loves to do obstacle courses in the wild, where they go through mud, dust, and dirt.
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However, after finishing the course, the organizers often fail to provide a private compartment for them to shower and clean up. Thus, she invented the "Shower Toga" a private accessory that can be worn in outdoor showers to maintain privacy. After her family demonstrated how the product functions, Peterson told the Sharks that Shower Toga is not just good for obstacle courses, but it can also be used by people who surf, hike, or go to music festivals. Peterson shared that her lifetime sales have hit $80,000, and most of that came from regional obstacle racing tournaments. She explained that the company had good margins as the products cost $3 to make and can be sold for $35 per unit.
While Robert Herjavec and Lori Greiner appreciated the idea during the demonstration, Kevin O’Leary wasn’t convinced. As soon as the presentation was over, O'Leary asked: "Isn’t your competition a garbage bag?” The entrepreneur disagreed, saying, “That’s like saying a balloon is the same thing as a condom.” She further argued that a garbage bag isn't designed to do the job that her product can since it would tear from the bottom and the slits on the side will hamper privacy. "Plus a garbage bag leaks!" Greiner chimed in.
However, O'Leary wasn't convinced and argued that garbage bags are much cheaper and people can easily use them. “I love your energy, You are really aggressive. It’s fantastic. But I don’t like to invest in products where the competition is a garbage bag that costs 99 cents," O'Leary said before dropping out.
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After O'Leary Herjavec was the next shark to drop out of a deal. Herjavec praised Peterson's energy and said if anyone could make the business a success, it was her. However, as an investor, he thought the business just wasn't there yet. Griener was the next to make a move. She too believed that Peterson was doing great on her own and felt like it wasn't the right time for her to get an investor on board.
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Nevertheless, two sharks, Mark Cuban and guest judge Alli Webb were still in.
While Cuban praised Peterson for the idea, he mentioned that the product name may need to change in the future to convey the product's purpose more clearly to the customers. Webb added that Peterson knew exactly what she was doing and she saw a reflection of herself in the entrepreneur. "You're clearly not taking no for an answer you're not afraid to stand up to these guys like I feel like and and put them in their place," Webb said.
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Thus, the two sharks joined forced to make an offer of $80,000 for 40% of the company. While it was more than what Peterson was willing to give up, she considered it to be a good deal as she got two investors on board and accepted the deal.
While Peterson left the tank teary-eyed, O’Leary remained doubtful. “Now that she’s gone, you’ve bought a garbage bag with a string on it," he told Cuban and Webb.