Quikflip Apparel's Hilarious Pitch Has The Sharks Howling | Shark Tank US | Shark Tank Global – YouTube Dictation Transcript & Vocabulary

1.first into the tank is a dual-purpose product with convenience in [Music] mind greetings sharks I'm Henry Gracie and I'm seeking a $500,000 investment in exchange for a 5% Equity sake in my apparel company quick flip it was a cold December morning and my son wanted to go to the park so I threw on my favorite hoodie and off we went after about 30 minutes of chasing this guy around the park the sun began peeking through the clouds and I started to sweat at that point I had no choice but to take off my hoodie you can probably guess what my options were we have the fanny pack we have the European Yacht Club I see you Robert and then we have and then we have the want toe cool guy this is the option I stuck with but when I finally caught up to little man I bent over to pick him up and the hoodie slipped off my shoulder on to the wet grass oh no there has to be a better way sharks that was it quick flip was born check this out flip it tuck it shake it and voila in a matter of seconds using our proprietary conversion technology we can turn any outerwear garment into a fully functional backpack in a Flash with our slide and bite technology you can adjust the pack to keep it safe and secure during literally any activity even Jiu-Jitsu with your [Laughter] brother but wait there's more you can store anything you want inside the backpack and when the temperature drops simply reach in take out your stuff with one hand sharks count to three too late we're already back to full hoody functionality in a matter of seconds do you want us to leave we can yeah all I need are my black belt business partners to help me submit the out to help me submit the outware industry and flip your investments into black belt profits who's with me W that was exhausting and my brother hon Gracie thank you for being here brother we'll see you soon bye brother hen can we see it now you can see your samples thank you ah Mark you're right here yes sir appreciate it h thank you check it out you guys thank you no worries thank you thank you very much very nice everyone stand up please it's a conversion race put your stuff down so here's the deal guys all you do is you reach in grab the entire hoodie and pull it through and then just start shoving the rest of it on the Inside Yes reach in grab and pull all everything through just grab and Pull and then tuck it through the inside and then bam winner winner over there I'm last at that so you flip it on and then you grab the rope and you literally slide and bite at any height look look look look look inv slide up to any height and to loosen it watch you just VI this little it comes right off is this your first product yeah have a seat you guys let's talk so here's the deal tell us about you your background my grandfather to kind of give you a starting point was the co-creator of the art of Brazilian jiu-jitsu the now famous all over the world fast growing martial art my father came to America and started teaching out of his garage in 1978 it was my uncle Hoy my dad's brother who went in UFC the early UFC's went in there and beat these Giants put us on the map and so the clothing brand also came into fruition and we're selling T-shirts hoodies uniforms and Martial Arts Apparel so we learned a lot of things during this scaling of jujitsu a supply chain was a critical Factor there it's been incredibly helpful to have those and what is one of these cost we make them for between 13 and $15 we sell them for between $40 and $50 hen how are you selling them all of this has been directly online we did like a pilot test we ordered 5,000 units put it out see how the people are going to respond to this and then in 2 and a half months we sold out so you sold $200,000 with give or take yeah give or take but we started losing we started selling out of our top SKS like within you know 60 days okay I get all that I want to hear about sales I to hear about sales so just real quick it went from a hoodie from a product as we you know we know this so then my wife's mother says hen I don't wear hooded garments guess what we came out with convertible crew necks fully convertible then parents called in and said hey my kids always tell me to carry their stuff wait wait turn the crew neck around yeah oh you have an entire product you guys this is not a product it's a company we're here to talk business this isn't that what you guys like I've watched enough episodes so hold on I went to Disneyland you guys and I saw one dad carrying six hoodies jackets sweaters for all his daughters and I was like no this doesn't need to be the case you guys so then we came out with kids variations as well and then Costa Rica Hawaii Miami and Seattle called and guess what they wanted waterproof you know outer wear a little more durable we came up with the first dry flip technology I got to see this I got see the first drrive flip technology you guys you're out there it's rainy and Kevin if you don't mind you're out there you're raining doing your thing you're running you're boom you're boom you're boom you're boom you're boom you're boom you're rain I'm 100% dry in here no problem look this comes off look look at this you guys Costa Rica called Costa Rica shake it off and not only does it dry 100% on the inside but it turns into a waterproof backpack full dry flip technology I got a question yes sir will we be able to talk at all during the pitch yes I'm just trying to get there hen $500,000 for 5% imputes a 10 million value I feel you Kevin so give me some numbers guys it's so comfortable it's so comfortable that I want to wear it h it's going to end badly if you don't give me some numbers so here's the deal we did a little pilot launch it was great we sold out in 40 days in the middle of the summer we do $279,000 got it and then in August alone we did $25,000 in sales so your total sales $500,000 yeah $577 make what did you make on that $220,000 profit 38% all online direct to consumer is there any way that you can justify the $10 million valuation $500,000 in sales so the way I look at quick flip is a potential four-legged monster leg one direct to Consumer which we love step two the promotional products industry step three is going to be the licensing of the technology to apparel companies and step four potentially retail I'm not dead set on it but with your guys' expertise do you have a propri is this proprietary yes so we have four patents uh two utility and two design patents pending domestically and internationally Daman will he get a patent for this he can but I've have 50 patents that I cannot protect and or they'll go so your point he can get a patent someone will knock it off anyway yeah you know what in reality and then you'll just have to fight it which is expensive yeah we can speculate all day but one thing is for sure we can we can do a deal if we do one on the on the protection of the patent and the intellectual property being issued Henner you're you're crushing it right now why do you need money the way we've been growing the inventory purchase uh volume has doubled every time we've ordered okay so here's my first thought hter yes I would just take a back pack with me if this was the case Mark I appreciate that I think if this were the case for everybody I wouldn't have went to Disneyland and saw 60 hoodies in a period of 3 hours Ty hen it's not a question whether or not it's valid right it is your sales prove it I just don't see the connection that we would create or even any of the Sharks right cuz you drive it yourself for those Reasons I'm you know I think it's great what you're doing but a lot of these roads are not going to be successful for you and when you send it to retail they can't tell what it is it's just another hoodie valuation is way too high for me to take that road with you so I'm out thank you um Henri everybody agrees the product probably has a market and you you're a force of nature no question you're asking me to pay 20 times sales forget about profits it's crazy classic deal where you ask for too much money at too early a Time 500k for this you'd have to have 50% maybe more I'm out the power of this brand is really it's a great idea but it's you I mean you are killing I want to be in business with you but I give you 500,000 what do I do I do I submit you to 10% that's you know definitely a conversation we can absolutely I'm here to talk and I would love to have a partner so I talk about that I can't structure the deal it's 10% good now let me just say about projections Robert real quick before you answer uh so this year we're on set to do 1.2 million before the end of the year next year we're estimated to do 5.5 million the 500,000 is the problem I'll make you an offer I'll come back in hear me on this I'm structuring it I'll give you $100,000 for 25% and $400,000 as a line of credit so it's Deb so half of his profits for a quarter of his company I'll simplify Kevin's deal he'll give you 500,000 for 25% forget how he's structuring it are you interested in that deal if we were pre-revenue I would consider 25% but because we have sales it would be unwise of me to entertain 25% unknown what that's worth you know I sit here and I always think I have to do what's right for me I think what's right for me [Music] here is to make you an offer I'm going to offer you 500,000 contingent on you're getting one of your patents and I'm going to do it for 15% this is beautiful yeah before we make a deal are there anybody else who would like to entertain some possib she actually got you to stop talking take that off oh no I'm thinking trust me I'm thinking you just need the right focus and you need my years of experience and connections so let me tell you something instead of pushing for the p a lot of weight might disappear I'll do the deal for the 15% without the contingencies of patents I don't care about your patents Lor I have a question for you if we went around the 10% mark But in your investment we did maybe 300,000 uh cash and we did 200,000 in the line of credit we're getting closer to where said 300 200,000 in a line of credit yeah so I'm I'm willing to split that up so that you're not giving so much cash out the gate you're doing maybe 250 and 250 right but you want 10% 10% Equity 10% Equity is where I'm at 250 and 250 and I'll do it me you got to take it out a little I like this a lot if you're considering between me and Kevin I'm not talking to Kevin right now I'm talking to you L very good one you made an offer she said yes to it yeah I like that I I like it I love it and um would you be interested in having someone else with you on the deal at all or jumping in no no need I love it we got I could put some pressure there you go I found my black belt business shark a thank you congratulations good so congratulations thanks so much you guys have a good one I went out there I turned on the henery and once I do there's no stopping it you can't turn it off they couldn't get a word in but they told me to own the stage and guess what I did that guy was a ball fire man now that he's gone we can finally talk to each other for