'Shark Tank' founders leave empty-handed simply because they didn't want to reveal one detail
Having a creative pitch and packaging a product well only gets entrepreneurs halfway through on "Shark Tank," but even the best branding falls apart when sharks start tearing into the business model and examining the numbers. The founders of "The Scrubbie" learned this the hard way after they failed to get a deal for hiding their sales numbers. The three entrepreneurs, Tyler Kessler, Jeff Dakin, and Matt Hosey, were slammed for making the sharks beg for the basic numbers as well.
In the episode, the founders entered the show seeking $100,000 for 10% of their company. They pitched their product, "The Scrubbie," as a versatile cleaning tool designed to be attached to faucets and garden hoses. The innovative product features a sponge that enables efficient scrubbing and rinsing simultaneously. Dakin shared that the idea of the product came to him while he was doing the dishes and envisioned a sprayer with an integrated sponge.
While the demo went well, one Shark, Lori Greiner, did not look happy at all. Greiner, who famously invested in "Scrub Daddy," looked upset to have come across a very similar product that sort of mimicked her partner's marketing. As the Sharks examined the samples, the co-founders shared that their product sells for $14.99, and the cost of manufacturing is $3.60. They also sold a 3-pack of replacement sponges is $9.99, and the company also offered a subscription service, which the Sharks found unusual. However, the big issue was that the entrepreneurs avoided quoting any numbers throughout their pitch.
"You describe the amazing product. It's one of a kind, it's the first of its kind, and all the adjectives, but there are no numbers right," Kevin O'Leary remarked. While the question was direct, the entrepreneurs kept beating around the bush without sharing any sales data. As they were talking about a trade show, O'Leary cut them off, saying, "No, just give me 2019 sales. I've asked you five times."
The clever founders tried to sway the judges again by claiming that their sales projection for the year was $32,000. "Yeah, so they're just guessing. There's no real number there. That's the problem," Mark Cuban remarked. Still, entrepreneurs kept deflecting the questions, pushing O'Leary to the edge. "I'm working on anger management this season. I can't take it anymore. I'm begging for lifetime sales," he said. The three co-founders finally revealed that the company's lifetime sales were only $13,000. Although they tried to convince the Sharks that they had many offers waiting, the panel wasn't intrigued by the numbers. "It's just another excuse right look I've heard every eenie meenie miney moe excuse," Cuban said before dropping out.
An equally pressing issue came to light when Greiner pointed out that the logo of "The Scrubbie" was disturbingly similar to Scrub Daddy. "Your logo is so close to Scrub Daddy's. You use the same font right," she said. "I don't like that, and I don't want confusion on the market. I'm out," she concluded. The other Sharks, Daniel Lubetzky, Robert Herjavec, and O'Leary, followed suit and dropped out as well, forcing the three entrepreneurs to walk out empty-handed.
Despite the setback, the trio remained positive about their efforts on the show. They promised the Sharks that they would keep improving their product and return to make a successful pitch.
