The Sharks Cannot Wrap Their Heads Around Swag Australia’s $3M Valuation | Shark Tank AUS

Next into the tank is Peter with a fresh Take on reducing household waste my Product is going to revolutionize the Homes of Australian families because This product is actually saving people a Lot of money I absolutely love this product And I hope the Sharks will love it as Much as I do [Music] Hello sharks my name's Peter and I'm Here today to ask you for three hundred Thousand dollars for 10 of my company Swag Australia Like millions of Australians and Billions of people all around the world I was sick and tired of throwing out Rotting fruit and veggies Plastic bags and containers are not only Toxic to the human body but they're Having a horrendous impact on the Environment And they kill our fresh produce a lot Quicker and is actually necessary I knew in my heart that there had to be A safer better natural solution to this Worldwide problem and I set out and I Invented the swag The swag is 100 natural reusable bag That enables your fresh produce to stay Alive and nutrient-rich two to four Times longer in the crisper of the Fridge Basically grab your swag

Scrunch it up put it onto the tap the Central layer is a thick absorbent layer So you massage the water into that Central layer open it up put all your Fresh produce in pop it into the crisper Of your fridge our customers tell us on Average they'll get two weeks of life Out of their fresh produce So it saves you money and it's saving The planet as well oh well done Peter Well done So that was Peter Peter and you're Looking for three hundred thousand for Ten percent so you're valuing your Business at three million correct It's a little cheeky having a valuation Of three million I got it independently valued and people Those two companies came back and said That's fair Did they put their money in Did they write a check No no yeah why do you think it's worth Three million Well what did those independent people Say stand on your evaluation IP and the Trademarks the paintings the trademarks The systems the processes manufacturing Um Peter when you talk to an investor The annual answer here right is the fact It's worth three million today because It's worth six million dollars in two Years That's how you defend an evaluation yeah

And so I'd like to dig into that Financial straight away and understand Why you think it's worth it okay so in We launched at the end of 2016 so it Wasn't a full thin year but in the 2017 Fin year with Um our Revenue was 320 000 with the 62 Gross profit and a 26 net profit And how many months mate 10 months in The first 10 years 13 months she made About 83 000 bucks did yep And what do they sell for please so the Starter pack is if I show you yeah yeah Please this is our starter pack so this Is our best seller so what's in the Starter pack in the starter pack there's Two small swags one long and one large Walk us through an individual product The cost to make it wholesale price and Recommended retail so the cost landed in Australia is 17 17 for the kit yep Um and we're wholesaling this for forty Dollars and it retails for 72.95 I'm selling via wholesale as well as Direct online Go to market strategy Peter or just Ignore me listen to her anyway so that's All good So you've got direct customers who are Buying from you online yep you've also Got wholesalers so what is your retail Strategy look like I haven't obviously Focused on it yet it's just been growing Organically through retailers reaching

Out to us and we've got 100 retailers Now But obviously this is a product that a Lot of people don't know exists And when They see it in store there's a really Good uptake for the product and a lot of Stores we become their best seller why Do you need a shark now since you're off And away I certainly want access to the US and to secure a distributor in the US Getting the brand out there on a bigger Scale I really want to see this in every Fridge and every household of Australia Peter I know where I'm at I mean I think The product is great and I think you're Terrific you've clearly got your act Together I just can't get over that Valuation So I wish you luck but I won't be an Investor on this journey I'm out okay Thanks Andrew Peter there's a lot of executional risk Around where you're up to It's too early stage in the sense of That your valuation is really Unrealistic For this investment I'm out thank you Cheers And we deal with a lot of factories Across India and China and we're selling The the US with some of some of my Businesses I'm involved with so I get The space so are you interested or not Yeah I am

But not not at um three mil valuation Okay so what what what's your offer 150k 25 percent 150k working capital loan so When you don't need it you won't be Using it when you want to put some Orders in it's there to dip into and Come out of thank you I've got a calculator out mate be Careful she's actually even tapping the Right buttons as well it's pretty scary In my opinion you've been ill-advised on The valuation dramatically In some respects it's insulting Difficult one for me because I do like The product I think it's really good But I can't make the 300 000 working Without taking 60 of your business and I'm not going to do that But I can do this I'll give you Um a hundred thousand dollars for equity Two hundred thousand dollars loan but It's going to be repaid on a five Percent of sales every year and I want 25 percent Check that 25 for 100k okay They're both pretty poor offers so I Wouldn't take either of them you've got One more shark Peter I look you've done Fantastically well it's a great product I can't see how I can add any value here

Other than money so I wish you all the Best I'm going to look you up and buy One but I'm out Glenn's offered you 150 000 of equity For 25 no strings attached Janine's Offered you a hundred thousand dollars For 25 equity and a two hundred thousand Dollar loan repaid by virtue of five Percent of gross sales each year correct Correct what are you going to do I wanted to find out a little bit more About what you both think that you can Bring in Like it Yeah business hasn't beaten you down yet Right so you're still in that blue sky Period yes so what you need to do is go Back to the fundamentals get your Foundations right and so we can grow Yeah if you said to me that I'm going to Go to Europe and I'm going to go to Germany I'm going to do that I'm not the Partner for you because I'll be saying Don't do it okay I wasn't sold For you No that's because I'm being real she's Done being realistic you can be the Fluffy stuff if you like but that's real All right let's get into the real I'm an Investor in flanneries my brother-in-law Has deep relationships into woolies and Coles my job is to go Global with you And to open up some of my contacts to

Make your journey a little bit easier Okay So what's your answer going to be Peter [Music] I'm going with you Glenn because of the Retail experience correct sorry No worries well actually well done thank You very much have a good day That's the first time I've heard Somebody just apologize That's because you wanted me I'm happy With the outcome that I could really do With the mentoring of um of Glenn so Yeah I'm stoked absolutely stoked

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