Shark Tank Season 6 Recap: Kevin O’Leary Offers the Biggest Investment Yet
The most powerful “sharks” in the business are ready for more fresh ideas in the new episode of “Shark Tank” Season 6 Episode 11 “Biaggi,” which aired last Dec. 5, 2014 at 9:00 p.m. on ABC. In this episode, be amazed with innovation on luggage bags, men’s grooming, sportswear and wine and know the biggest investment yet of Kevin O’Leary in the show. Read on to know more about these interesting business proposals.
The first businessman to propose is Stephen Hersh from Brooklyn, New York. His father started a handbag company when he was younger. It became successful and was launched in major department stores.
However, his father decided to sell the company. Father and son started a new company in the same industry. They made the wrong first step because they spent a ton of inventory and manpower way before they started making profit.
Stephen’s family business stopped manufacturing and planned to relaunch the company. They learned from their mistakes. Stephen is currently seeking financial help to start again. He believes a partnership with the right shark can make his business be as successful as his father’s before.
Stephen starts in his business presentation. His company is called Biaggi. He is seeking $500,000 for a 30 percent stake. Biaggi luggage is a perfect storage solution. Every luggage bag can be folded flat. The folded suitcases use henge-lock technology that makes them sturdy while in use and easy to store. They also sell lightweight ZipSack pouches that can transform into four-wheel spinners. He proves the benefits of his products by showing a closet filled with eleven pieces of folded luggage bags.
Kevin asks how much is the company’s sales. Biaggi generated $2.5 million in two years. The first year was a full year of selling. The second and last year sold for six months but hit pause on manufacturing. Stephen admits he learned some things that are not making his business progress.
Mark Cuban asks what Stephen learned. Stephen answers his biggest challenge is consumer education. He shares he invested $3.5 million that surprises the sharks for it is a huge sum of money. The investment was taken from the $162 million his father received from selling his first business.
Lori Greiner asks how much the pink luggage bag is. Stephen answers it is $62. Kevin thinks it is expensive. Stephen continues sharing the price ranges of wholesale, which is $124 and retail with $269 for the largest size. He tells the sharks his business had orders from a larger department store that put two of his company’s lines in 100 stores.
Kevin assumes the sales people do not know the bags can be folded. Stephen agrees by sharing that one store did not display that the folded luggage bags can be put inside a pouch.
Mark thinks Stephen’s products are too simple. The luggage bags only have one extra feature. He is out. Robert Herjavec says consumer education is a big challenge, and there are a lot of competitors. He is out as well. Kevin is out because starting the business all over again is tough for it requires demonstration on TV, online and infomercials.
Daymond John is concerned with strategy unless the company has its own store. His offer is $500,000 for 33 percent stake. He demands for an immediate response from Stephen after 20 seconds.
Lori shares she had been in the luggage business and was able to sell 100,000 pieces of bags. She thinks Biaggi products are appealing to her because she knows the right customers. She has the same offer as Daymond and already has a new name and packaging in mind.
Daymond lures Stephen by saying he also lives in New York. He can talk with Stephen all the time. Lori boasts she works at lightning speed and assures Biaggi will be in QVC for four months.
Stephen asks for help from his father via phone. His father says he must choose who is the most interested.
Lori jokes Daymond will be the one because he lives in New York. Daymond asks her how many years was she in the luggage business. Lori tells him for the last decade, she sold $100 million worth of bags.
When Stephen returns, Daymond finds it difficult, but he withdraws his offer. He thinks Lori will be a better partner for him. Lori thanks Daymond sweetly, but he just ignores her playfully.
The second entrepreneur, Lydia Evans, makes homemade soaps for men suffering from razor burn and folliculitis. Her business is called S.W.A.G. Essentials. Its soaps have 3-in-1 versatility that cleans, exfoliates and disinfects men’s skin. She proposes $125,000 investment from the sharks with 20 percent equity.
No one from the sharks make an offer for Lydia because all of them think there is still a long list for things to do to put the business in a larger scale. However, Daymond gives his phone number to Lydia.
Shawnna and Kurt Feddersen is a couple from Oklahoma who created Gameday Couture. Their target market is women who like to watch sports events. There is no exact sports attire for women especially off-court so they provide the solution. They propose $500,000 investment for the sharks with 20 percent stake.
Kevin, Daymond and Robert are out because even though the couple generates big sales, they overpay for their license fee in schools that makes their actual income less. Before Lori can even speak, Mark offers $500,000 for 30 percent stake and has a caveat. After the couple says yes, the caveat is they will get to design apparel for The Mets. The couple is happy and Shawnna even declares she already has the design.
The last entrepreneur, Andrew McMurray, provides a better solution of drinking wine on-the-go. His company, Zipz Inc., asks for a $2.5 million investment for 10 percent equity stake. Zipz Inc. is all about licensing and packaging. Andrew thinks the innovation will make the small bottles and plastic cups in planes obsolete.
The company provides single-serve wine that comes with a wine glass that is so strong that Andrew even managed to step on it without breaking. To drink, just unzip the outer clean wrap that acts as UV-protection to prolong shelf life. The lid can be attached to the bottom after unscrewing it. Lift the peel to drink and the lid can be used again without any spills.
Lori, Robert, Daymond and Mark are out because Andrew already has too many investors and the price range is too expensive. Kevin insists Costco is the largest buyer of wine and he can introduce Andrew’s company to it. The condition first is Andrew must lower the price per glass from $2.99 to $1.49.
Kevin’s offers are $2.5 million with 10 percent stake and another $2.5 million at exactly $25 million valuation in event of an exit. This means, if Andrew will sell the company at $50 million, for example, Kevin will still get his $25 million for security.
Before Andrew confirms, he calls J. Henry Scott, the CEO of Zipz Inc. Lori whispers to Kevin that she knows it is Kevin’s way of making Cisco notice him and finally supports him in his proposed wine business. After Andrew’s phone conversation, Kevin is on-board.
There you have it for the recap on “Shark Tank” Season 6 Episode 11 “Biaggi,” which aired last Dec. 5, 2014, 9:00 p.m., on ABC. Catch the next episode on Dec. 12, 2014. For more updates about this show, including spoilers and recaps, follow Movie News Guide (MNG).
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