Foreign [Music] Tank are Sarah Pond and Mike Hardwick Who believe they're on the cusp of the Next big Fitness craze Hi sharks I'm Mike Harwick and I'm Sarah Pond we're here to present our company Surfset Fitness we are seeking 150 000 For 10 equity in our company Surfside Fitness is surf inspired Exercise equipment and group fitness Classes this is the ripster for X it's The world's first total body surf Trainer we've designed it to mimic the Instability of a surfboard on water and We have here with us Lakey Peterson She's one of the top 10 female Surfers In the world and she's here to show you A few of her moves so Lakey's gonna walk Through the pop-up this is one of our Moves in Surfside it's extremely Challenging it's an athletic move she's Going to use her arms her Core Balance Stability you can see she's rocking side To side all about the imbalance now She's going to show you how a surfer Would dive under a wave this is called a Duck dive you can see she's engaging her Triceps her chest really working the Arms the core and we're going to finish With what we call a water Walker so it's Similar to a one-legged squat you can See she's trembling a little bit she's Engaging every muscle in her core her
Legs so we're here today sharks because We have more interest in orders than we Can handle and we need your help That looks like it's very hard for the Average person to do any of those Exercises that's quite complex it's very Difficult to stay stabilized let's take An average Bozo like Robert absolutely The only thing we'd ask is your shoes Off get the full experience if you can She made it look pretty easy it didn't Look that hard I got to be honest so she So she had some experience so we get up One foot at a time all right I'll step Back there we go and then bend the knees Get into your carve in your surfing Motion look at Whoa What was the really hard move was the One foot yeah go one leg and then you Just go like that as if you're like Stroking through the water with you like Skateboards a little harder yeah It gets a little shaky on that one there You go Oh you're not Robert that was good Thanks how do you change the the levels Changed it really quickly so you want to Make this hard to snap these off and it Goes just like that that makes it harder You can take all three off and are those On both sides yes what happens if you Weigh 300 pounds can you still use it 450. oh I gotta tell you I'm a little
Tired see yeah how'd you come up with The idea This guy will talk so I was a Professional hockey player and I've been A lifelong Surfer as I was getting Towards the end of my career I decided You know I want to surf a little bit More and every time that I spent more Time in the ocean I was I felt better on My skates I performed better I had Better seasons and I really found right Then that there is a tie between Fitness And surfing we made 150 000 in four Months running classes So we took it to New York our 11 Machines we set up in a very large gym There believe it or not it Just You win for we've had more celebrities On the board Good morning America this Is Hollywood we had people paying 35 a Class sold out classes for the entire Four months I'm getting more interested How much is this unit retailing for 400 And your cost 150. you're gonna have to Get this down to a hundred dollars for It to retail at 400. uh it's not a Problem Who's running the show here on the Business side that's a good question so Um when I went to Europe I got my MBA Tried it in finance for a little bit you Tried Finance you said yeah it was in Finance so do you think there's anything Odd about valuing this company at 1.5
Million dollars Um no we've also had 200 inquiries for Franchising to open private studio so You're coming here for not only our Money but our strategic assistance but They're only offering US 10 why would You offer us so little it might be Little right now but that 10 percent of A large company it's got a company that We have to work for Is we don't want you guys to work for us We want to work for for you in a sense We want you to be able to make a phone Call and we want to show up how much do You think those phone calls cost a lot It took me 20 years of kissing a lot of Butts to get some of those people that's Why we value it to a highly I'm gonna make you an offer Because I think that this is a great Idea you could actually go out there and Hire professional Surfers to be your Certifiers and trainers which would give You a lot of authentication because of That I think you're going to need more Than 150 000 in cash to do it right and In order to make an investment in this I Have to have enough skin in the game so What I'm going to do is offer you three Hundred thousand dollars For 33 percent So what what just happened there is he Knocked the value down from a million And a half
To nine hundred thousand but I put in You a position to get out there and not Have to stress about how much cash you Have for inventory and to not stress About hearing these guys nip one time You got nickel and dime for 33 just now It's an interesting offer Mike I see the Business a little bit differently I Think you don't need the professional Surfer guys I think they're great but I Think that can be intimidating to a lot Of people the trainers need to be bubbly Energetic I'll give you the 150 000 Because I don't think you should give up That much Equity it's going to go big For 20 percent [Music] So a lower valuation is basically what You're saying I'm saying keep more Equity nobody starts a company out of Their basement and works their butt off To give up one third of it at this stage Don't gamble your future until you know What you have lower evaluation for Less Finally every time I say something I Hear somebody else talking It always so that's always happening It's like a mini me I have a an offer as Well I own many uh CrossFit Gyms so I Understand that lifestyle and the Culture I'm willing to give 150 but unlimited manufacturing of the
Boards 25 for free you're gonna give Them the boys for free But I just give you the cash right so You have you're a finance guy that's why I'm not messing around yeah but when you Go through that cat when you go to that Cash you still have to put it back in You have to put it back in I'm giving You cash and now manufacture the boys [Music] Sarah Mike what are you gonna do thank You Keep an eye on one thing here as these Offers come in because it matters You started with a million and a half Asking the value of what you've created Here Mark knocked you down 33 to 900 000. these two very greedy sharks have Knocked you down to half of what you Asked for So manufacturing is is a plus yes it Matters factoring it's just factoring Mike you're gonna have the money anyway It's not just factoring it's not at all You're going to want to do apparel You're going to want to do board shorts You're going to want to do a bunch of Things no you're not no you're not Vitamin then they're already selling a Lifestyle Robert no no but not the Beginning the way they're going to fail Is by doing too many things at once but They don't need to do too many things at Once if they have me on that side
You know what I like Damon's better I Like the apparel thing I think I want a Piece of your deal I want to stop you Right I like it better than Marx I just Want to give you a word of caution The best guy for you on this deal is Mark Cuban Smart lady what that's ridiculous why You're honest you say it like it is and You are crazy no you just be quiet Please Mark's that way he's much richer Than you but he's cut out of the same Cloth right now what I'm going to offer You is To take half of Mark's position Barbara why don't you suck up to Everybody up here and it's totally up to Mark the reason you should listen is Nobody builds up faster more well-run Sales network than I do I oh that is Absolute crap Oh come on Mike I started a company nine Years ago three guys were 160 people Today and 100 million in sales we need 52 million last quarter this is what This is you've got a great plan you got To execute I wrote out six CrossFit gyms In the last four months as well as a big Training program and if you know Anything about CrossFit it's very hard To get certified yes but he's a short Man and that doesn't fit your image at All Barbara
So Mark are you in or are you out with Barbara Sorry Barbara I don't need you on this One I'm going alone Okay in that case I'm out [Music] If you want more money than 150 000 Today I think that we could that we could Benefit from our money right now if we Had more we could do it faster if you Have a manufacturing pipeline you don't Need more money when a business is on The fast track one of the biggest Challenges they have is to keep up with Success because they don't have enough Cash available to them to meet demand And then somebody else steps in to meet That demand and the quicker you get to The point you need to preempt those Competitors the more successful you're Going to be let me throw in here for a Second because I'm listening to all this And I'm saying to myself you're either Going to execute and make this huge Because I believe you have the potential And brand is a big part of it for real Lasting value it's not just that device It's the brand you're going to create The number one guy to build a brand here Is this guy So I want to tack on his deal I'll bring You in on the deal yeah I'd like to do That
Because they have to yeah And this is where my 24 second shot Clock comes in because I need a decision Three hundred thousand dollars in cash For a third What partner should you need more Because business just explodes there's More money there I don't think you need To give up one third of your business Today I think that would be foolish and I don't think you guys are foolish That's way too much so Mike I'm giving You 150 000 for 20 Barbers out Damon and Kevin are 150 000 for 25 And they're giving and Manufacturing Mark Cuban is in a 300 000 but he's Stealing one third of your company today Brand is very important Sarah Mike what are you gonna do [Music] Come down on any of that little talk to Me yeah a little bit a little bit on the Uh ownership I'll come down to 30 if you say yes Right now No don't do it a designer alone is gonna Cost you 150. [Music] Bush Sarah you know the right thing to Do here [Music] Mark we're gonna accept your offer Yes horrible deal
Congratulations [Music] You just made yourself millionaires Absolutely [Music] You know Mark you stole their souls These guys are so full of crap you're a Thief So excited there were so many offers Coming out I'm confident we made the Right decision and looking forward to Getting started I'm so excited this is Exactly what we wanted First into the tank is a way to work out Like a hero [Music] Hey sharks my name is Sarah apgar I'm From Baltimore Maryland and I'm the Founder and CEO of fit fighter I'm Seeking 250 000 for 15 equity in the company I'm in Iraq war veteran women's rugby All-American from Princeton Volunteer firefighter Spouse of a West Point grad and fellow Army vet And Mom of two gorgeous little girls And I invite you to train like a hero Like our nation's bravest with the most Versatile and durable Fitness product on The market The fit fighter steel hose Made in the USA from real fire hose Recycled steel shot and Brass grommets
The steel hose is both a free weight and A resistance tool with countless grips On the hose itself under over mix grip And single arm and eight ways to layer On the body at the neck Chest elbow shoulder side hip back and Ankle I know the steel hose system is a Complete full body strength power and Conditioning program we can work basic Strength for your everyday Mission Hauling gear and kids Train for rotational Sports And finally grip strength for claiming Your golf swing Robert or the mayonnaise Jar All that without switching our tool And safe for our floors Toddlers and Toes Wow sharks with your help this product And training system will bring the Strength and spirit of Public Service to Households training centers and athletic Fields Nationwide and turn every American watching into the next fit Fighter Yeah fabulous so the question is are you Ready too because I need a team so it's Your turn if you'll stand up on your Feet and join me sharks awesome so you Each have a steel host set in front of You I recommend my favorite hose is the One I worked with the 15 the 15. Mark's Just bragging [Applause]
So what I want you to do is just stand Strong and tall for me and I want you to Lift out above your head it's going to Feel a little different than weights You're used to put your arm out to the Side it does feel different all I want You to do is come down to your shoulder And squat as you do that press Everything back up okay optional you can Come down up and over your head and get A sense Excellent let's bring it out front So you're gonna come side to side okay That one's gonna be hard with the 35 Okay and then final move optional Underhand and you're gonna just give it A flip There you go Awesome job sharks your first steel host Moves ever thank you so much Love to talk oh geez I broke the table Did you really I did so Robert why is Experience so positive because it does Feel much more enjoyable than the Weights why why why is that that was so Hard as I mentioned it's made from real Fire hose and the original intent was to Mimic a fire hose charged with water When I joined my volunteer fire Department I noticed there was a gap Between the Fitness training and the gym And what really happened out there on The fire ground the obvious place to Start was how to mimic charged hose
Without pulling hose off the trucks Charging it on the hydrant with water Once we had prototyped this in the Firehouse I then went to the FDNY Training Academy the premier Institution For training in the world for Firefighters and I walked into the Fitness director's office I said I've Got something special for you to see and There was a moment of magic he Immediately agreed and the FDNY was my First major client on our fire service I want to understand two things one what Did you do in the military and number Two why did you join to be a volunteer Firefighter when I was looking at College the ROTC scholarship was an Option to pay tuition to Princeton and So I left college and went straight into The military as a second lieutenant And after nine months of training was on A charter aircraft to mosul to support The 101st Airborne divisions Reconstruction of Northern Iraq So I was a 23 year old platoon leader and My youngest Soldier I lost my youngest Soldier under my Command he was 19 at the time And I remember that night Huddling my platoon up around me and Kneeling down in the center And I just thought This is this is the moment this is one
Of the most important moments of my life That leadership moment to get us through So when I left the service I really there was something really Powerful about that community in Camaraderie That I missed and I vowed that I would Always work to honor the memory of that Soldier that I lost And so I did my MBA and I was Um also pregnant with my first baby girl And I was feeling like this desire to Have the camaraderie back I thought that joining local fire Volunteer fire department would be a Great way to just keep that threat of Public Service in my life where did you Find time to spend two years doing an MBA so I did my MBA tuck School of Business at Dartmouth you are such an Underachiever you're still winning proud How much have you raised I launched the Company with 210 000 in friends and Family funding okay and that's 50k of my Own money also importantly in terms of The scalability of our business I Launched a production partnership with Sorenex exercise equipment in May Sorenex is one of the largest and most Well respected exercise equipment Manufacturers in the country and is a Contract for the United States Army to Provide the equipment for the new Army Combat fitness test we have the perfect
Tool to train soldiers so I intend to Generate the Enterprise Value in this Company by selling institutionally to The military to the fire service let's Get into the business about what your Distribution strategy is we had forty Five thousand dollars in sales proving The concept in the B2B market so did you Sell that to last year trainers coaches And small boutiquesians you're talking About a variety of different markets There so your forty five thousand Dollars was for what period that was From July through the end of 2019. That's all your sales all in that was 45 Correct okay so here we are so here we Are January 1st I was lining up the Sorenex partnership so that we could be Ready to scale to the Future and during This pandemic that B2B Market was Effectively shut down completely we Decided Well what looks to be the way That we can scale the company forward is To Pivot and to build a home direct to Consumer brand what are your sales since You made that pivot we immediately in April and May time frame had forty Thousand dollars in sales wow so in in Just those 10 weeks That's great and how did you get those Customers what are you doing digitally Did you start trying different ads on Facebook we did and when we did that we Launched an IOS app that has 150 plus
Movement Library that's developed by my Training Partners who are the best in The business we launched also a live Online training platform program I'm watching you I'm in my home I'm Watching my video and it's you doing it With me and what do I pay for that right So the app model is that it's a free Download it's free so if I'm Understanding correctly the app is Designed to create demand and then you Want people to download it for free so That they can order these for right and Then we do have a 19 a month option Where you can also then have how many Subscribers do you have for that Complete workouts we have 302 So let's walk through because there's a Lot of bouncing around here yes right And I understand that together here with Covid right everybody's reacting and Trying to be agile so I get that that's Yeah but Sarah you're all over the map And you're not helping yourself with That okay you're drowning an opportunity It's hard to be in a business and do one Thing well it's harder to be in a Business and try to do multiple things You know one minute you say you want to Sell to firefighters in the Department Of Defense the next minute you have you Know live online and you're building Your community the next second you want To work through your trainers and
Everybody's working this together and You want to direct to Consumer you can't Take on 15 battles and expect to succeed In any of them hopefully you'll get a Deal because you need help Just going on the path that you're going You're going to fail at this right so For those Reasons I'm out Okay I'm in this space with PRX we had to go Through the same pivot yeah the digital Pivot works yeah and our sales are up 400 percent selling direct to Consumers But for me I'm not going to invest Because I'd be competing with myself in Customer acquisition I'm Adam Look you're one of the most impressive Human beings we've ever seen But the Business side of it falls apart a little When you came out I said oh my God She is killing it she's selling Subscription classes online And this is nothing I'm paying for a Subscription but yet your model seems to Be puts a lot of these and use the Subscription to somehow promote it what I've learned in this industry is you got To move really fast and if you haven't Moved online already I don't know if you can make that Transition at this point I'm out Sarah listen to me okay everything they
Said is actually true you're Ridiculously impressive you need to Focus more but I think you have Incredible potential I think your Presentation can become something that Inspires people I think you can do Something really really big and it's Going to take a lot of work and a lot of Focus I'm willing to take that Journey With you because I'm just so inspired by Your story so I'm gonna give you one of Two offers depending on whether Lori Wants to join me okay um If she wants to join me you get two Sharks 30 for 250 000 what would you Offer her if it was just you alone 25 Myself Sarah I'm not going to join Daniel on The offer I feel that he's a partner That can bring a lot to the table for You I think it's a better deal for you Okay I'm sorry I'm out Okay Okay 25 for 250 000 I think that's a Generous number given where you're at in Terms of dollars but it's knowing where You're gonna head yeah Um I'm super grateful so I'd like to Counter at 250 000 for 20 and it's a Done deal and Respect the toughness of your counter But the answer is no because I'm already Stretching myself to 25 percent that
Already Factor the leadership she's a Great partner potential Co-captain Daniel abetsky [Applause] Me too let me just yeah with a partner Like Daniel we can build a strategy for The future as a woman-owned Veteran-owned company young girls and Women will look up to us and they will Know what's possible [Applause] Tag is a product that proves the old Adage practice makes perfect [Music] Hey sharks my name is Thomas Fields and I'm the founder and CEO of grind today I'm seeking 250 000 in exchange for five Percent stake in my company now millions Of kids each year dream of playing in The NBA Mark I'm sure you were one of Them I was but whenever you get to High School coaches usually expect you to Shoot up to 500 shots every day but Usually this takes about six hours at a Time and good luck trying to find Somebody to chase down your rebounds Mr Wonderful it's not gonna happen that's Why we created The Grind machine the World's first portable shooting machine That captures your made and missed shots Automatically passes the ball back out To you and collapses down into the size Of a duffel bag it's in 90 seconds Simply set up our shooting machine under
Any basketball goal And Pam you're ready to lock in our Shooting machine rotates 190 degrees Manually pass into five positions on the Court so you can train like a great Athlete from anywhere along the arc Unlike professional machines that are Sold to the Mavericks grind is made for The consumer being the lowest cost Machine on the market today So sharks who's ready to help grind Develop interactive game-changing Products one sport at a time Mark you want to try yeah love too Now it's uh it's powered by pneumatics Right so this is a completely new way of Passing the ball out So if you stand like right there that's About right [Music] Oh oh he sucks [Music] What is up with that rip I hope the League doesn't see this wow he does suck [Music] Thomas what does it retail for we retail Right now for 14.95 1495 1495 okay so Thomas tell me a little bit About your back story you wanted to be An NBA player yeah absolutely so I grew Up always wanted to be an NBA player and Ultimately get my family to a better Means right growing up I saw my mom and
My dad always you know working 5 a.m Jobs night shift jobs so my goal was to Get a D1 scholarship right and go to the NBA just like all the other kids well I Blew out my ACL four times before Graduating high school wow and wow I Soon realized that that dream of getting To that next level was not gonna happen And throughout this whole process Um I realized that I was knocking on the Door at the gym at five o'clock in the Morning trying to use the shooting Machine that my school purchased that Was six thousand dollars right and 400 Pounds and I couldn't get in the gym it Wasn't accessible to me at the time Right I tried to buy one for our house And it was like five six grand so there Was no way my family was purchasing one And at that point I realized that these Companies are really overlooking the Market so we came into the market for 14.95 and we're the first company that Started payment plan solutions for for Individuals how much money did you put Into it to get it up off the ground Fifteen thousand dollars and how did you Earn that fifteen thousand times YMCA Shoveling mud everything that you can Think of like I was I was putting it all All in Thomas what are your sales uh we Launched March 1st of 2020 so in five Months we uh pre-sold 215 000 worth of Units so that was on a Kickstarter no so
We actually launched pure e-commerce on Our website so what were you doing to Get people to know about your products We started completely word of mouth and As you know in in basketball it's a Community where if somebody says Something or there's a video out about It it goes pretty viral right right so All the kids on Instagram who are Shooting right they put this into an Instagram video to show how they're Working out all the kids that watch that Think okay if they're using it then it's Cool for me exactly I'm not clear have They actually been shipped and are being Used or is this pre-order stuff this is Pre-orders so everybody has paid us up Front Okay we're delivering how many Units 125 units and not one has been delivered Yet right this is our testing unit we've Gotten here with 215 000 in sales Through a pandemic with no working Capital all with one unit would it cost You to make a unit 977 dollars oh wow wow right so we have Roughly 35 margins we think that at Scale we could bring that margin down And what about power if I take it to the The Park yeah I just want to shoot what About power so how long does the power Last it does need to be plugged in but Version two that's exactly what it is so That's a challenge right yeah you know
That makes it more for the backyard or The bucket you have in your driveway yep Right and it really doesn't help you in Terms of going to the park some some Parks actually do have Outdoors yeah Yeah you'd be surprised how many do look I go out and I still shoot right because Quarantine right that's how I clear my Head sure it didn't show and shooting Those baskets yeah trust me that's a Clutter your head I can shoot but you Know there are other options that are Low cost right so there's there's just The metal rack that just yeah you know If you're just shooting and it just Rolls right back down that costs a lot Less now every basketball player will Tell you they hate that well yeah but I Like 1500 Mark what do you guys have with the Mavericks do you have something oh yeah So let me give you the comparison right So if you're outside shooting by Yourself it's going to take about six Hours to get up to 500 shots in right in Right versus our machine you can do that Within an hour but Thomas let me take a Stab at this when I you know first saw The pitch and watched Mark Miss basket After basket I thought to myself you Know this is a crazy idea without any Merit but the more I heard the story and The fact that you actually sold over two Hundred thousand dollars worth of them
That is more impressive this isn't a Product for me though I mean but we do Have a token MBA owner we keep on the Side here with shark tank but I applaud You it's a cool product it means a lot Of time but I'm out Um listen Thomas I think it's a great Idea I think it's very useful I'm just Not a sporty girl you know so as an Investment it's not the right one for me So for that reason I'm out thank you Thomas I I got to tell you I love your Story and it's so inspiring it reminds Me of when I grew up a kid from the Boys And Girls Club I think is fantastic I Love the name grind I love your grit Um for me I'm having a problem with Those margins and the price For those Reasons I'm out thank you look The challenges right now won the Valuation okay right yeah to your Margins and how many you can actually Make and how many you can actually sell Yeah I love that you know just grinding All your life that's who you are and I Respect that what you've been able to Accomplish is awesome Um I'm just Yeah let's negotiate Mark let's let's Figure this out because I think this can Easily go to a five to ten million Dollar company I'm not sure that's the Question I'm not sure of that right I Know what I'm
It's kind of scary to sit next to him And he's not sure and he's not buying And I'm wondering let me just tell you The minute you walk out that door with Or without a deal I'm gonna buy one for My backyard he's not here [Music] Foreign Sharks are out and Mark is undecided About Thomas's basketball shooting Aid Grind look the minute you walk out that Door with or without a deal I'm gonna Buy one for my backyard he's not here Are you gonna make an offer because I Would like to address such a good item Mark yeah Thomas I think your price Point is too high I think your product Is too ugly All right if my neighbor put that in Their driveway I'd kill them that's the Truth so I don't know what you can do to Make it look better but I think it's got To look better we're going for a very Mechanical well yeah straightforward it Looks mechanical but I'll tell you um I Think you're a phenomenal entrepreneur You got the whole package I would like To make an offer but I don't want to go In without one of these Sports guys okay One because I want to use their money And two because they know what they do In the sports field and I don't so I'm Anxious to see if what do you have in Mind Barbara so I'm thinking I would
Offer 250 for 20 percent [Music] It's not enough you don't think that's Yeah well then I'll I agree with my Partner here Mark he's going to ask you For more What do you think of Mark so if there's Two of us 30 okay I'll go with you two Of us because let me just tell you and I Know you think it's a lot You know but it's not Period end of story right because Barbara's skill set is her people skills And her ability with the marketing and Packaging are better than mine I'm gonna Make it pretty yeah she'll make it Pretty so 250k for 30 percent [Music] I have a I have a cap on myself right so It's up to you Because it's non-negotiable it's Non-negotiable Thomas before you decide you have one of The greatest owners of the NBA I mean This is a dream offer Let's do let's do 25 for 300 I think the Valuation is is great for you guys right I'm gonna take it to a 10 million dollar Company easily in two years right you Think I'll work my tail off right let's Get it Give him a sweeter deal Because I have to be a shark 250k for The 25 let's get some 250 rooms I just
Did right I just did 250k for 25 be Careful now if you're if you're worrying About 50k then you're not valuing us Thomas what are you gonna do Oh If you have to think about it Thomas Yeah let's do it of course all right Whoa I thought you're gonna walk away Yay thank you guys Love it good job all right thanks guys Well done Man I'm excited about having Mark and Barbara I think we're going to change The world if you have a dream and you See me up here making deals like you can Go do it no matter where you're from
