Exfolimate's Entrepreneur's HUGE Initial Offer | Shark Tank Australia | Shark Tank Global

Summary

Roberto Derso pitches his innovative smooth edge micro groove technology to the Sharks, offering 50% ownership in exchange for a $1.1 million investment to take the product global. The product cleans dead skin, dirt, and impurities quickly in the shower. Despite achieving success with 500,000 units sold and securing placement in Walmart, the business faces cash flow challenges. The Sharks praise the product but express concerns over the management and valuation, leading to them ultimately passing on the deal. Roberto’s entrepreneurial drive is evident, but the Sharks feel the business needs more focus and better financial management.

Takeaways

• 😀 Roberto Derso introduces his patented smooth edge micro groove technology, which helps remove dead skin, dirt, and makeup, leaving the skin smoother and healthier.
• 😀 He offers 1.1 million dollars for a 50% partnership with the Sharks to expand the product's market reach.
• 😀 The tool is easy to use in the shower and works by gliding it over the skin at a 90° angle to clear away dead skin and dirt.
• 😀 The product can be used on different parts of the body, not just the face, and helps with smoothing out bumps.
• 😀 The tool is designed for practical use, including being easy to store or hang on a tap to avoid things falling off a bathroom shelf.
• 😀 The micro grooves in the tool are visible under the light and effectively clear dead skin without moving parts.
• 😀 Roberto's motivation for creating the product stemmed from his own shaving rash problem, which led to the invention of the tool in 1998.
• 😀 The tool retails for $19-$29, with a production cost of $135, and has already reached Walmart online in the US.
• 😀 Roberto has sold nearly 500,000 units globally, contributing to over $1.5 million in revenue, and invested $2.5 million of his own money into the business.
• 😀 Despite the growth, the business has struggled with managing cash flow and profits, with gross profits of about $200,000 and net profits of $45,000 over the past two years.
• 😀 The Sharks are not willing to invest, citing concerns about the business’s financial management, with all investors ultimately deciding to pass on the offer.

Q & A

What is the product that Roberto Derso is presenting to the Sharks?

Roberto Derso is presenting a smooth edge tool with micro grooves designed to clean away dead skin, dirt, and makeup during a shower. It promises smoother, clearer, and healthier skin.

What is the investment offer that Roberto is making to the Sharks?

Roberto is offering 1.1 million dollars for 50% ownership in a partnership to take the product to the world.

What is the product's manufacturing cost and retail price range?

The product costs $135 to manufacture, and it retails for $19 to $29, depending on the market.

How does the product work?

The tool works by being placed on the skin during a shower. After the normal wash, the user places the tool at a 90° angle to scrape away dead skin, dirt, and makeup, leaving the skin smoother and healthier.

Why did Roberto create this product?

Roberto created the product after experiencing his own shaving rash problem. He identified the cause and developed the tool to address this issue, starting the process in 1998.

What progress has been made with the product's distribution?

The product is already available on Walmart's online platform in the U.S. but not yet in physical stores. Roberto has a deal with Walmart, but needs a second product to complete the agreement.

How many units of the product are already in circulation?

Roberto has already sold nearly 500,000 units globally.

What is the reason Roberto needs additional investment?

Roberto needs additional investment to create an electric version of the product, which is a prototype. He requires funds to make this version and expand the product's presence in Walmart.

What were Roberto's sales and profits over the last two years?

Over the last two years, Roberto's business generated approximately $1.5 million in revenue, with a gross profit of $200,000 and a net profit of $45,000.

Why are the Sharks skeptical about investing in Roberto's business?

The Sharks are skeptical because they believe Roberto has not managed the business well, particularly in terms of cash flow and business focus. They also feel that he is valuing the business based on his funding needs rather than its actual value.