Night Runner 270's Entrepreneur Sells Two Products In One Pitch | Shark Tank US | Shark Tank Global

Summary

Rada and Doug Store, a married couple from Orlando, Florida, pitch their innovative product, Nightrunner 270 Sho Lights, to the sharks on Shark Tank. After a successful demonstration, they seek $250,000 for a 10% stake in their company. The product offers 270° visibility for runners and workers, improving safety during nighttime activities. Despite initial skepticism, the sharks are intrigued by the product's potential in both the athletic and occupational safety markets. After a series of negotiations and competing offers, they ultimately secure a deal with Robert Herjavec for $250,000 for 15% equity.

Takeaways

• 😀 The Nightrunner 270 Sho lights provide 270° of visibility for runners and workers, ensuring safety during night activities.
• 😀 The product was created after an injury sustained during a marathon training session, leading to the idea of headlights for shoes.
• 😀 The Nightrunner lights are weather-resistant, designed to endure rain and uneven terrain, offering a solution for outdoor enthusiasts and workers.
• 😀 The lights retail for $59.95, with a wholesale price of $30, and cost $15.50 to manufacture and ship.
• 😀 The company has made $260,000 in sales within just 8 months of operation and aims for $760,000 in sales in the next year with investment.
• 😀 The company faces inventory challenges and has only $15,000 left in stock, limiting its growth potential without additional funding.
• 😀 Sharks are divided on the potential of the product, with concerns about the market size for runners at night but interest in occupational safety applications.
• 😀 A new model, the 'Night Shift,' was introduced for workers like construction workers and road workers, with improved battery life for extended use.
• 😀 Offers from the sharks varied, with Kevin proposing a $250,000 investment for 15%, Lori offering $300,000 for 20%, and Mark offering $250,000 for 30% with unlimited financing.
• 😀 The founders ultimately accepted an offer of $250,000 for 15% from Kevin, with additional support for marketing and growth, valuing the team's input over the other offers.

Q & A

What was the origin of the idea behind Nightrunner 270 Sho lights?

The idea originated when Doug, while training for a marathon, tripped over a pothole during an early morning run. He realized there was a need for headlights for sneakers, which led to the creation of Nightrunner 270 Sho lights.

What key features make the Nightrunner 270 Sho lights suitable for runners and outdoor enthusiasts?

The Nightrunner 270 Sho lights provide 270° visibility, a 150-lumen light beam with a 30ft distance to identify trip hazards. They are weather-resistant and designed to work in all outdoor conditions, ensuring safety during night runs or activities.

What was the initial market for Nightrunner 270 Sho lights?

The initial market was primarily focused on runners who engage in night-time activities. However, the product also has potential in the occupational safety market, such as for construction workers or people working in low-light conditions.

What was the business's sales performance like at the time of the pitch?

At the time of the pitch, the business had sold 6,000 units, generating $260,000 in revenue in just 8 months. With investment, they projected sales of $760,000 for the current year.

What are the production costs for Nightrunner 270 Sho lights?

The Nightrunner 270 Sho lights cost $15.50 to produce and land, and they are sold at $59.95, with a wholesale price of $30.

What challenges did the entrepreneurs face regarding inventory?

The entrepreneurs mentioned that they were running low on inventory and only had $15,000 worth of stock left. They needed additional funds to buy more inventory to scale their sales.

What did the entrepreneurs identify as a major opportunity in the market for their product?

They identified a significant opportunity in the occupational safety market, where people working at night, such as construction and road workers, could benefit from the product's safety features.

Why did the entrepreneurs plan to rename the product to 'Night Shift'?

The product was to be renamed 'Night Shift' to target the occupational safety market, including workers who need extended battery life and durability for working long shifts in dark conditions.

What are the key differences between the Nightrunner lights and the new 'Night Shift' product?

The primary difference is that the Nightrunner lights are designed for short-duration use (e.g., for runners), whereas the 'Night Shift' model will offer longer battery life, making it suitable for workers who need the lights to last 8-10 hours during their shifts.

What was the final deal the entrepreneurs accepted, and from which sharks?

The entrepreneurs accepted an offer from Robert, who agreed to invest $250,000 for 15% equity in the company. They also received a loan of $150,000 for inventory, making the total offer $350,000.