The Sharks Are Amazed When Ketchup Rolls Right Off Of Baobab's White Shirts | Shark Tank Global

Summary

Two entrepreneurs, Brandon and Marcelis, pitch their company, Baobab, seeking $150,000 for 10% equity. They introduce their innovative polo shirt, made from Peruvian cotton with a proprietary fabric treatment called 'Beotch,' designed to resist stains and prevent 'bacon collar.' The polo features a hidden microfiber cloth for cleaning glasses. Despite a polished presentation, including their expertise in digital marketing, the sharks are skeptical due to low sales and a high valuation. Ultimately, the entrepreneurs leave without a deal, reflecting on what they believed was a 'perfect pitch.'

Takeaways

• 🧑‍💼 The presenters, Brandon and Marcelis, are asking for $150,000 in exchange for 10% equity in their company, Baobab.
• 👕 They created a polo shirt that addresses common issues like fading, shrinking, and 'bacon collar' after washing.
• 🧵 The polo shirt is made from 98% Peruvian Pima cotton with 2% stretch, featuring a special stain-resistant treatment called 'BoTech.'
• 📏 The shirt features a 'stay-flat' collar, and they have a provisional patent on this collar technology.
• 💵 The company has done $85,000 in gross revenue but has a projected valuation of $1.5 million, which the sharks questioned.
• 💻 They primarily sell online, using Facebook ads and digital marketing for customer acquisition.
• 📈 Their cost per acquisition is $38, and they have a repeat customer rate of around 25%.
• 👗 The Baobab shirt competes in a highly competitive men's fashion market, which made the sharks skeptical about differentiation.
• 📊 The sharks pointed out the discrepancy between their projected $400,000 end-of-year sales and their current revenue.
• 🚫 None of the sharks decided to invest, citing concerns about valuation, competition, and uncertainty around the founders' digital marketing expertise.

Q & A

What product are Brandon and Marcelis presenting to the sharks?

They are presenting the Baobab polo shirt, which they describe as the perfect polo shirt designed to solve common issues like fading, shrinking, and 'bacon collars'.

What makes the Baobab polo shirt different from traditional polo shirts?

The Baobab polo shirt is made from Peruvian Pima cotton and features a proprietary treatment called 'Beotch,' making it stain-resistant and durable. It also includes a 'stay-flat' collar to prevent the collar from curling.

What is the price point of the Baobab polo shirt?

The Baobab polo shirt is sold for $98.

What is the background of the founders, Brandon and Marcelis?

Brandon previously worked at companies like American Express, managing their mobile app, while Marcelis worked in media partnerships at companies like Hurst Media and Travelzoo.

How did Brandon and Marcelis fund the development of their product?

They raised $32,000 through a crowdfunding campaign in 2017, which they used to fund research and development for the Baobab polo shirt.

What are the sales figures for Baobab Polo so far?

They have made $85,000 in gross revenue and are projecting to close the year with $400,000 in sales.

Why did the sharks feel hesitant about the company’s valuation?

The sharks felt the $1.5 million valuation was too high, given their current sales figures of only $85,000. They were also unconvinced by the lack of unique proprietary technology.

What marketing strategy is the company using to sell their products?

Baobab primarily uses Facebook ads and online marketing, with a focus on building a community and staying connected to their customers through feedback and email communication.

What did the sharks think about the Baobab product and its potential?

The sharks thought the product was well-made and innovative, particularly with features like stain resistance and the stay-flat collar, but they were concerned about the highly competitive market for polo shirts and the founders’ ability to scale the business.

Why did the sharks ultimately decide not to invest?

The sharks were concerned about the company's valuation, low sales figures, and the founders’ ability to differentiate their product in a competitive market. They also felt that the digital marketing strategy wasn't sufficiently explained to justify an investment.