The Sharks Are Shocked At $5M Valuation Of Goat Pet Products | Shark Tank US | Shark Tank Global

Next up is a product that gives voice to The voiceless [Music] Hi sharks my name is Princess Michelle Winowicz from Bloomfield Hills Michigan I am the proud founder of goat pet Products we're here today seeking a goat Partner to invest 499 thousand dollars In exchange for nine percent equity in Our company Pet lovers have all shared the dream of Wishing their pets could talk just like In fairy tale now what if I told you That I had the power to give your pet a Voice meet Axel a retired canine hero That can speak Isn't that right axel That's right princess Michelle Reporting for Duty What sharks I'm not really a princess an Axel here isn't really a magical talking Dog He's the proud owner of our goat pet Speaker and our one-of-a-kind app that Gives you the ability to interact with Your pet like never before You're so right Michelle but in addition To giving me a voice the goat that Speaker does so much more like I'll take It from here Axel but thank you not only Does the goat pet speaker give your pet A voice you can also stream your Favorite Tunes out on walks what [Music]

To help relieve pet anxiety you can Stream calming soothing classical music Oh [Music] And with the built-in selfie remote Button right on the bottom of the Speaker Now you can be in the picture with your Best friend See cheese [Music] As you can see sharks goat pet products Is on track to be the greatest of all Time in the pet industry but I'm here Because I need your partnership to make My fairy tale A reality Michelle before I figure out If you're on a sabbatical from Bellevue Um Why are you dressed like Snow White Snow White always talk to animals and They never had the ability to talk back Have you talked to Snow White for the Animals to find out it's in the fairy Tale it's in the fairy detail Michelle Is there a reason you would have spent Time making this product what's the what What made you so can I pass out some Samples Wow what a beautiful dog Fairy Tail packaging thank you is I did Bring an extra treat for Mr Wonderful He's not going to rip us to shreds if we Don't do a deal is he well we do have a

Secret command for that so thank you Thank you they're very cute looking I'm Still not quite sure what they do okay They look cute So basically the app lets me record Things I want my dog to say to me Correct so I could I could create a diet I love you Kevin I know it could be yes Pick it up yourself or it could be I'm Going to pee on a fire hydrant now Well Michelle you have a five million Dollar valuation no problem there Robert No no no this thing makes dogs talk That's cheap rubber Especially if you have a 5 million Valuation you've sold a lot of talking Dog units the goat pet speaker why goat Greatest of all time and your sales are We've had over two million dollars in Sales in less than six months old you Sold two million dollars of this crap You look amazing that in that outfit now Thank you how my my experience is from The pet industry I've launched many Brands as a brand manager as a national Sales manager I did a great job making a Hundred thousand dollars a year and full Of ideas for new products but I came Home one night and I told my husband About this idea that I was going to tell My boss the next day and he's like why Do we keep paying for everybody else's Kids to go to college like just Save these ideas like stop and so I did

And a family friend offered to partner Basically as an investor So I immediately put in my notice I quit My job wait a minute I'm curious like I Don't think I understand why it was such A big hit when I went to Global Pet Expo To launch this people literally without Exaggerating were lining up to see I I've been to these trades get orders There I did I wrote more orders that I Have in 10 years on my first day okay And then you'll fulfill those orders no You know because because then I saw PetSmart and they said that they were Extremely interested But they like exclusivity for how long Were they going to be exclusive six Months did you give them that yes They bought over two million dollars Worth Wow it's incredible and the two million It's the two million that is going to Hit the store and then you're gonna need To see the sell through but that's the Initial order correct we don't know if They're going to sell through do you Have to take returns there is no returns They can't return anything no that was Part of the negotiations for me to give Up exclusivity Okay how much are they what do you sell These for 24.99 24.99 right your cost to Make is Um my cost to make is under five dollars

And that's the landed cost including Packaging everything okay so how much Money did you raise from your silent Partner to date 260 000 and how much Equity did he get for that 50 percent 50 50. yes but I needed a million Dollars in inventory quick all right Look it's the scariest place where you Are right now if it doesn't start Selling right away at this price point Right you are screwed but I'm not and I'll tell you why because she's getting Paid no but that's no good you'll never Sell again whatever it is that I need to Support it I would if I'm educating I Need to Value you at 5.5 million dollars And give you the 499 thousand dollars And I have no data as to whether or not This will sell I just and you can't give It to me I'm trying to figure out how to Invest in something like this with a Pragmatic Financial discipline because You're not worth 5.5 million dollars Until you can show me it sells through And they give you three more orders like That and maybe that'll happen but There's no way for me to find out There's no infrastructure behind it Because I think you're missing you're Missing this point with your orders You're creating with 200 000 units You're creating one million dollars in Gross margin dollars right for this one Sale which is great right but you're

Valuing the company is that that's going To be repeating on an ongoing basis Right yes and that's what we don't know Yet But here's the other part I hate the pet industry I don't have a feel for what's going to Last and what's not going to last I just Don't get that industry for those Reasons I'm out Okay then let me just say I'm out Michelle I am shocked that they gave an Order that big because it's an enormous Risk for them on something that is not Tested approved this is not something That I could invest in and at that Valuation it's even further Beyond I'm Sorry I'm out Okay now you created this company for What reason because you were tired of Making everybody else rich You gave away 50 of your company at a Very early stage that means for me to Give you anything I'm gonna have to give You a very aggressive offer which I'm Not ready to do because I don't want you To go back to the situation that you Left so I'm out Thank you What are you going to do well there's Only one shark left and it's you in nine Years I've patted dogs I've eaten dog Food I've watched every time I've licked

Cats I even dropped the dog once but You've done something no one's ever done That's come out here you got a single Order for two million dollars it's Incredible we don't really know where It's gonna go but I love it and I love This industry And I'm gonna make you an aggressive Offer I'll give you the 499 000 for one third I understand you have orders and they're Fantastic but we don't really know it's Going to sell through So you were at nine percent correct and He wants 33 correct so obviously I came Here to negotiate that just to be I Don't want to negotiate I don't want to Waste your time because I know you have To go back to the dwarfs you can choose To accept it or Or not So you're not open for negotiations you Wouldn't consider 20 percent It's one-third 499 000 for 33 percent For 33 one-third One-third I just want to negotiate You're not letting me So you've been consider not even 25 Percent you know Michelle you could you Could counter I'm going to say no I'm Going to tell you that right now 500 000 Is a lot of money and so I want to have The level of risk I feel comfortable With that best sure I'm not going to

Change my offer we have a profit margin Of 89 okay 499 000 that's a lot of money You have to decide what do you want to Do you're going to give up 33 and a Third percent of your company that's One-third or not he's not flexible Are you it's called the shark tank for a Reason what do you want to do To me the natural next step is to Partner with you So I would absolutely love to take your Offer Done great yeah perfect thank you thank You so much Cheers thank you You guys thank you very much Congratulations [Music] It's a lot of late nights at some All-nighters and it's it was to get me To this point to be able to say that Robert is my partner so that is beyond a Dream come true Robert if it's a bust You never get your 4.99 back ever we'll Find out and I think that dog wanted to Eat you I've programmed it right now It's swearing at her out there selling a Third of the company

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