The Sharks Think Life Lift Systems Pricing Is Too LOW | Shark Tank US | Shark Tank Global

Summary

Levi Wilson and Tim Todd from Oklahoma pitch their product, the Vortex Vault Telescoping Tornado Shelter, on Shark Tank. It's a unique tornado shelter that fits under a mattress and deploys in 60 seconds. The shelter is space-efficient and designed to withstand an EF5 tornado. They seek $550,000 for 15% of their company. Sharks appreciate the innovation, but the margins raise concerns. In the end, Mark Cuban offers the $550,000 for 25%, and the entrepreneurs accept, believing this partnership will help their business grow significantly.

Takeaways

• 🌪️ Levi Wilson and Tim Todd from Oklahoma are presenting their company, Liift Systems, seeking $550,000 for 15% equity.
• 🛏️ Their product, Vortex Vault, is a telescoping tornado shelter that fits under a mattress and takes 60 seconds to deploy.
• 🏠 The shelter is designed for home use and can withstand EF5 tornadoes, including debris like 4,000 lb cars.
• 🔧 They also plan to expand the concept to include a pool table, kitchen island, and garage workbench versions of the shelter.
• 💵 The retail price of the queen/king-sized shelter is around $6,000, comparable to existing tornado shelters but with more convenience.
• 📊 They’ve sold 119 units in 3-4 months, generating $550,000 in sales, mostly via social media marketing.
• 🔨 The manufacturing cost is around $3,600 per unit, with a current wholesale price of $4,850, yielding a $1,000 net profit per unit.
• 🛠️ The company has invested $250,000 into the project so far, and they are working on expanding their dealer network.
• 📈 The Sharks raise concerns about the company's margins and suggest increasing prices for sustainability.
• 🤝 Mark Cuban ultimately offers $550,000 for 25% equity, with an additional commitment to finance purchase orders, which the entrepreneurs accept.

Q & A

What product are Levi Wilson and Tim Todd pitching to the sharks?

Levi Wilson and Tim Todd are pitching the Vortex Vault, a telescoping tornado shelter that can be installed under a mattress. It raises in approximately 60 seconds and is designed to withstand EF5 tornadoes.

What problem does the Vortex Vault aim to solve?

The Vortex Vault aims to solve the issue of limited space and accessibility in traditional tornado shelters. Unlike above-ground shelters that take up floor space or below-ground shelters that can be hard to access, this shelter can be conveniently installed in homes, specifically under a bed.

How many tornadoes does Oklahoma experience on average each year?

Oklahoma experiences an average of around 60 tornadoes each year.

How is the Vortex Vault installed, and what does it require?

The Vortex Vault is bolted to a concrete foundation in homes. It is brought in piece by piece and bolted together, allowing it to be installed in any room of the house with a cement slab.

What are the key safety features of the Vortex Vault?

The Vortex Vault is designed to withstand EF5 tornadoes, including 250 mph winds and heavy debris such as a 4,000-pound car. It also includes air circulation vents and a battery shut-off switch for safety.

How much does the Vortex Vault cost?

The retail price of the Vortex Vault is in the $6,000 range for queen and king-size models, including installation.

What is the current sales performance of the Vortex Vault?

In three and a half to four months, the company has sold about 119 units, generating approximately $550,000 in sales.

What margin does the company make on each Vortex Vault sale?

The cost to produce the unit is around $3,600, and they wholesale it for approximately $4,850. The company's goal is to achieve around $1,000 net profit per unit.

What challenges do the sharks identify in the business model?

The sharks identify that the profit margin is too low, especially considering the cost of installation and customization. They suggest that the company should increase its pricing and focus on improving margins for scalability.

What offers do the sharks make to Levi and Tim?

Mark Cuban offers $550,000 for 25% equity and financing for purchase orders, along with connections to home builders. Lori Greiner matches the offer of $550,000 for 25% equity but suggests potential for selling on platforms like QVC.