Shark Tank US | Sharks Are Shocked at 13-Year-Old Entrepreneur's Negotiating Skills

Summary

In this Shark Tank pitch, 13-year-old Sophie Overton from Bentonville, Arkansas, presents her company, Wise Pocket Products. She seeks $30,000 for 15% equity, introducing her innovative line of socks and leggings with built-in pockets designed to securely hold kids' important items like phones. Sophie explains her inspiration, her business journey, and her $116,000 in sales. After a series of negotiations, Sophie accepts a $35,000 offer for 25% equity from sharks Lori Greiner and Daymond John. Her ambition and negotiating skills impress the sharks, sealing a promising deal for her business.

Takeaways

• 😀 Sophie Overton, a 13-year-old entrepreneur from Bentonville, Arkansas, presents her company Wise Pocket Products.
• 🧦 Sophie created a line of innovative socks and leggings with built-in pockets designed to hold essential items like phones.
• 💡 The idea was inspired by her cousin who struggled to keep her phone in her boot, which led Sophie to create a functional prototype.
• 💸 Sophie has invested $10,000 of her own money and has earned around $16,000 in sales before pitching on Shark Tank.
• 🧵 The cost to manufacture each sock is $5.47, while the retail price is $15, and the wholesale price is $11.
• 👗 The product addresses the lack of pockets in kids' and women’s clothing, solving a common problem.
• 👩‍🎓 Sophie refers to herself as having a 'PhD in sockology,' showing her deep knowledge about thread counts and sock design.
• 👟 For every pair of socks sold, Sophie donates a pair to children in need, emphasizing her commitment to social impact.
• 🦈 Sharks Daymond John and Lori Greiner teamed up and accepted Sophie’s counteroffer of $35,000 for 25% of her company.
• 🎉 Sophie is thrilled and overwhelmed by her deal with the Sharks, viewing it as a major achievement in her young entrepreneurial journey.

Q & A

Who is the presenter and what is her business?

The presenter is Sophie Overton, a 13-year-old entrepreneur from Bentonville, Arkansas. Her business is called Wise Pocket Products, which offers innovative socks and leggings with pockets designed to hold items like phones.

What is Sophie asking for in terms of investment?

Sophie is asking for $30,000 in exchange for 15% equity in her company, Wise Pocket Products.

How did Sophie come up with the idea for Wise Pocket Products?

Sophie came up with the idea when she noticed her cousin putting her phone in her boot because kids’ and women's clothing often lacks pockets. She found it uncomfortable and saw an opportunity to create a solution.

How did Sophie fund her business initially?

Sophie saved $5,000 and earned an additional $5,000 by winning business pitch competitions, bringing her total personal investment in the business to $10,000.

How much in sales has Sophie made so far?

Sophie has made a little under $16,000 in sales.

What are the production costs and retail price of her product?

It costs $5.47 to produce each pair of socks, and Sophie sells them for $15 at retail and $11 wholesale.

What is Sophie’s main goal for the investment?

Sophie's main goal is to streamline production, as she is currently limited to producing about 100 units per month due to the manual labor involved.

What were some of the reasons why certain Sharks declined to invest?

Some Sharks declined to invest because they didn’t have experience in the sock industry or didn’t see a sock company as a good fit for their portfolios.

Which Sharks offered Sophie a deal and what was the offer?

Lori Greiner and Daymond John offered Sophie a deal: $30,000 for a third of the company. Their goal is to find a licensing partner for the product.

Did Sophie negotiate the initial offer? If so, what was the outcome?

Yes, Sophie negotiated the offer and countered with $35,000 for 25% equity. Lori and Daymond accepted her counteroffer.