'Shark Tank' offers a life-changing deal to teenager after an intense negotiation with Mark Cuban

Even experienced entrepreneurs are left speechless and shattered when investors on "Shark Tank" unleash ruthless criticism on them. But one 'kidtrepreneur' was able to deal with it effortlessly. The founder of 'Simple Sugars,' Lani Lazzari, pitched her line of sugar-based scrubs to the sharks and left everyone impressed with her story. In the end, while some questioned her business, Mark Cuban put his faith and money in the young entrepreneur to close a $100,000 deal.

In the episode, Lazzari shared the story of how she came up with her revolutionary products at just 11 years old. "Since infancy, I've suffered from horrible eczema, and I couldn't find a single product that I could safely use on my sensitive skin, let alone one that actually smelled," she said. Thus, as a determined kid, she shared that she did a lot of research to come up with a product that would work. Eventually, she developed sugar-based scrubs made with high-quality ingredients that helped exfoliate her skin while essential oils. 

Soon, her friends and family started showing interest in her products, and she turned Simple Sugars into a business. She joined the Powerlink Protégé program at Pitt’s Institute for Entrepreneurial Excellence in 2008, and her company soon did $80,00 in sales. The sharks were very impressed by the kidtrepreneur's story, and Lori Griener liked her samples and confirmed that the scrub worked well. The Sharks then got down to business, asking for the numbers. Lazzari shared that 60% of her sales were through the company website, and the rest were sold through wholesalers.

Robert Herjavec asked about sales, and the entrepreneur shared that the company grossed $55,000 in the current year. Kevin O’Leary asked how much she projected, and she shared that she was looking to end the year with $100,000, 75% to 80% of which would be profit. Daymond John, what Lazzari planned to do with the investment, and she said she planned to use $50,000 to hire two full-time salespeople to manage the current accounts, as she needed time and space to seek larger accounts and grow the business.

While the numbers were impressive, some of the Sharks weren't convinced. John made the first move, saying he believed it wouldn't be counterproductive for Lazzari and a Shark to work together as she was doing well on her own. Next was O'Leary, who refused to accept that Simple Sugars was worth $1 million. "What really strikes me is that you think it's worth a million dollars. Not a chance in hell! No matter how wonderful your story is, I'm not interested. I'm out!" he said.

Greiner spoke next, telling Lani that she did love her energy and abilities, but the skin care industry was very competitive, and she wasn’t sure if Simple Sugars would be able to stand out. Thus, she was out too. Robert Herjavec followed suit as well, saying it would be “inequitable” for either party to make a deal. With four sharks out, Lazzari had only Cuban to look forward to. After asking her a few questions, Cuban complimented her, saying she was "darn good." He asked her to name her biggest competitor, and Lazzari said it was “Fresh" as it had a comparable but expensive product. She shared that her large-size scrub cost $15.95 compared to Fresh’s $74. Satisfied with the answers, Cuban offered $100,000, but for 33% equity. He reasoned that it would take time, and he really values his time.

This led to a showdown with Lazzari countering with an offer of 25% equity. Cuban outright rejected the counter as it would not be enough for his time. The entrepreneur asked if he would go even 1% lower, and Cuban said no. Thus, she gave in and accepted the deal.

It turned out to be a great decision for both Lazzari and Cuban as Simple Sugars went on to make millions. As per Shark Tank Recap, as of 2023, Simple Sugars was grossing $5 million annually, and the company's lifetime sales exceeded $35 million.