Oh my gosh this is gonna be so much fun I know five four three two First into the tank is a duo with an Accessory to make high heels more Functional and comfortable [Music] Hi I'm Monica Ferguson and I'm Becca Brown and we're here today to tell you About our company soulmates we're Seeking five hundred thousand dollars in Exchange for a 10 Equity stake in our Business We have a product that's changing the World for women women have a special Relationship with shoes especially high Heels high heels make us taller longer And leaner but these benefits come at a High cost and we've all been there You're at an outdoor wedding dress to The nines when all of a sudden your heel Sinks into the grass or you're walking Down a city street in your favorite Stilettos when your heel gets stuck in a Sidewalk crack or a Subway great it's so Annoying completely embarrassing and not To mention ridiculously expensive Ruining all those shoes the soulmate Thai healer is a heel cap that prevents High heels from sinking into grass and Getting stuck in tracks it works by Increasing the surface area on the base Of the heel which dissipates the Pressure and prevents the heel from Sinking or getting stuck wearing soul
Mates liberates women to walk across any Surface looking and feeling her absolute Best So sharks which one of you will be our Soulmate Are you wearing them we both are both Wearing them and we also have samples to Give you so you're wearing dark to match Your dark heel yeah but you can snap on A clear one absolutely they come in Clear black silver and gold Kevin thank You thank you how much do they cost each Pair retails for ten dollars the box That you're holding has three pairs in It for three different sizes and that's 30. 30 for this I'm just curious your Margins must be incredible before we Jump into a lot of the specifics we'd Love for you to try out the product First hand so Lori we actually have a Pair of heels for you Why not to exclude the gentleman we Invite you to come up as well yeah do You have shoes my size absolutely get up There well we have a pair for you oh It's gonna happen That one so Damon no actually this is Mark's size [Laughter] This is not a good thing for you this is Not a good look I'm not sure that helped your product What's your background Beck and I met Actually working at Goldman Sachs right
Out of college we were there for several Years in different roles what happened It was a great experience we learned a Lot genuinely one of the reasons that We're here today is because one of the First things we were taught there was You're not expected to know everything But you are expected to know who to go To for everything and in this case we're Here because you are who to go to I'm Getting really excited because you're in My space you're in banking you know I Mean high heels ETFs but I'm waiting to hear how you're Going to take me across into the Valuation metrics of this business which You're reputing a five million dollar Valuation on Bring it on girls So last year we did 1.1 million in Revenues we're on track using 1.3 to 1.5 This year we've been in business five Years yes how did you do one point where Are you seeing my wildest dreams I Didn't think you had done a million Dollars we're sold in about 3 000 retail Doors in this country including Nordstrom DSW David's Bridal this is a Product that women a lot of times don't Know they need until they're sinking Into the grass and experiencing it Firsthand and when a woman finds out That this product exists she has to have It she has a lifetime customer the nice Benefit we have is that we are highly
Correlated to the wedding industry and The women's shoe industry we sit right In the middle and when women see other Women wearing soul mates in the grass They say what is that and then they will Order them for their next wedding or Party but you're not making any cash Flow yet are you we're not because we've Broken even so our gross profit margins Are really paying yourself something yes 65 gross profit margins how much have You guys invested so we together Invested a hundred thousand dollars when We quit our jobs at Goldman to start This and you've raised to date we've Raised just under a million dollars whoa How did you raise it Angels friends how Many partners are there in the business Monica and I both come together own 80 40. fantastic product thank you the Challenge is your sales really go boom The more convenient the product is to Buy yes so if you sell it to who the Hotel everywhere You sell to venues we sell to hotels Right now you have to find a distributor That sells that stuff or you just need To hire a team of people bandwidth it's A bandwidth issue it's the two of us and We have one full-time person and what is The full-time person she's our Operations manager office manager guys Something's not adding up for me though You've got
Um 65 margins against a million in sales So you've got 650 000 in gross margin Dollars there's only three of you Where's it going we work with Third-party employers so we have our Graphics designer photographers web Developers what was your net profit Thirty thousand dollars To me the problem is it's not something That people need or need badly I don't Know because when you well you don't Wear high heels it does now Um there's only a certain amount of Women that wear spiky high heels and There are a lot that will only wear Flats wedges Etc because they are more Comfortable and they're more stable but There are occasions when you want to Wear a horse and the product acts like An insurance policy on that shoe if You're spending a hundred dollars on a Pair of shoes or a thousand dollars on a Pair of shoes you don't want to ruin Them I'm not saying it's not a problem I'm just wondering how big a problem for Women is it For me this isn't the right investment Yeah it's my mouth [Music] Okay the numbers don't add up for me and That's part of the problem Five million valuation 10 right 500 000 In order for me to get that back you've Got to make five million dollars in
Profits right I don't see how you guys Are going to get to 50 million in sales That's my problem S thank you appreciate that We believe in this business we are Committed to it we would never have quit Our jobs if we were not while we're Doing just over a million in sales we Know we can do 20 30 40 50 million in Sales so so let's say you're going to go Up to 50 million in sales uh the Net's Not going to be the same there's going To be a lot of r d there's going to be a Lot of expansion in there and you're Gonna have to put a lot of money back in The business you literally would have to Do five million dollars a year 10 years And then maybe I would uh make back just My investment no profit I don't even Think we're going to have grass at that Time so uh for that reason I'm out Ladies I think women may not have been Built to wear stilettos but any product That makes a man or a woman look good And as comfortable is a home run I mean To me you're creating a brand new Category it it's kind of like a Spanx it Didn't exist I know it's a wider Category but I love the idea and your Sales prove themselves you need a team You need more people your costs are Actually going to rise I mean it's a Long preamble to tell you I'm going to Give you an offer that you may not like
But that's okay because I like it I Believe in the two of you by 500 000 for 10 is just nuts I'll give you 500 000 for 25 percent You're either going to get acquired You're going to create a brand new Category and the only way I'm ever going To get the 500 000 back is to help you Scale this thing to a substantial size So there's only one person left yeah What are you doing I'm probably I sell a Lot of products to women I saw a lot of Products in the celebration times we do Everything I'm really struggling with This and I like it I like it all right I Can actually say two dollars you're Writing another little bit because oh my God here we go wait for it the equity Royalty let me finish silence while I Bring out the genius of my offer I Learned something from it this is Important I'll give you 100K for ten percent and I'll loan the business 400 000 because I Think that this is only worth a million Bucks right now you're saying that this Is only worth a million dollars today That's what I just said that's what I Think it's worth with all due respect Kevin's offers crazy when you're this Small to take on that amount of debt and Try to service it it Robert would you be willing to go to 20 Percent
Really five percent is going to make a Difference it does make a difference to Us why explain to me why I don't in Order for us to maintain a slight Majority right cumulatively 20 would be More meaningful because they only own 80 Right now Got it Okay I'll make it more interesting I'll Do that deal before you go let me throw One out Just before you agree 500 [Applause] 000 for 20 percent [Music] Yes [Laughter] You did a good job thank you we were Curious I just I just turned your volume off You're dead to us thank you ladies Okay congrats good luck Something that um Robert said which I Think really hit home with me was when He said you have created a category and That is something we often say ourselves And it's true we have created the Category this did not exist we got it And for him to pick up on that meant a Lot for us I think it's a lot I think It's a lot this business isn't worth More than a million bucks yeah I would Have won yeah but listen good luck Kevin You're turning green with anything not
Really I would have done the dead dude Before you go don't forget to subscribe To the Shark Tank Youtube channel and Ring the notification Bell to keep up With everything that's bubbling in the Tank
