Posture Now on the Shark Tank
Mike Lane & Matt Franklin came into the Shark Tank seeking $100k for a 15% equity stake in the Posture Now Business. They opened up their presentation with some dancers from "Dancing With The Stars" wearing the Posture Brace which clearly seemed to make a difference . Personally I think it looks a little uncomfortable but if it straightens out your posture then it might be worth the trouble of wearing it. Mike claims He invented this product to get rid of his beer belly by helping him stand up straighter and in a more correct posture.
Getting Down To Business in the Shark Tank
To date Mike and Matt have sold approx. $330k worth of the Posture Now Braces . They retail for $39.95 and cost around $5.00 to manufacture. In quantity the product wholesales for $19.95. 100% of the product is currently being sold online on their website. Fact - over 1,000,000 searches done on Google for the term "posture".
Daymond John confirms that they are valuing this new business at $700k. They agree based on the numbers they started with but may have a hard time justifying this seemingly high valuation. Mark Cuban asks how much money has Mike and Matt put into this venture. They have put a total of $5k into the PostureNow product which gives John a good laugh.
Kevin O'Leary responds "Only in the Shark Tank can you create that kind of wealth". Barbara Corcoran asks about a patent on this technology. Yes they do but it's only patent pending at this time. Cuban wants to get down to business and determines by these numbers that they made around $130k profit so far. Both Lane and Franklin agree that that's about right.
What happened to all the money? They split it up as it was being made. Mike and Matt have not re-invested any of the profits because this is more of a part time hobby right now. Matt says he wants to be the first person on National Television to quit his job if they can make a deal with the Sharks.
Kevin O'Leary opens up negotiations for $100k and wants 50% of the company when Matt rudely interrupts Kevin and says "It's not going to happen". O'Leary says he's not done, He also wants a 10% royalty tacked on. Mike gives him a flat out NO.
The Sharks are stunned. Someone is putting O'Leary in his place? We'll ah, yes He did. They go on an argument spree back and forth as O'Leary seems to be really heating up. Daymond gives these guys a lecture on the Shark Tank that this is for people who need deals done and they shouldn't even be on the show. They are taking an opportunity away from someone else that could be on the Shark Tank. Matt responds with"I'm not begging for something, I'm offering something". Can you treat the Shark's like this and still walk away with a deal?
It Gets Better. Daymond says He's Out! He then explains he has already tried the product and was waiting to jump in but they just blew any deal with him because of their attitudes. Matt now is starting to understand he is in The Shark Tank Den and it's not a good idea to ruffle to many fins, sor-ta-speak.
Robert Herjevic finally offers them $100k for a 40% stake with no royalty fee connected. Mike & Matt kind of go "we'll O.K., Mark what about you"? In my opinion this completely disrespected Robert and the $100 grand he just offered them. Robert asks "what am I chopped liver"? They realise they are again giving the Sharks a bad impression and do some fast back paddling. Robert about as disgusted as I have ever seen him with drawls his offer for being treated by chopped liver.(His words, not mine :)
Mark Cuban finally steps in and seems happy that Robert is out now. Cuban starts to talk and gets interrupted AGAIN. The other Sharks have them both trained real we'll when it's their turn to talk and they both decide it's time to listen. Cuban offers them 35% each which leaves him the remainder 30% of the company. He also wants a $5 royalty until he gets all his money back. Mike must also quit his job right now and devote full time to the PostureNow Brand. Knowing this is their last chance to make a deal on the shark Tank, they immediately agree to Marks terms.
DEAL Mark Cuban for $100k and 30% with limited royalty fees until paid back.
Order Posture Now Braces