Mark Isn't Convinced by This Product’s Name | Shark Tank US | Shark Tank Global

Yard Sale: Innovative Ski Poles

Introduction to Yard Sale

• Kelly and Christina from San Francisco present their company, Yard Sale, seeking $200,000 for 10% equity.

• They highlight the common frustrations with traditional ski poles, describing them as clunky and unattractive.

Unique Features of Yard Sale Ski Poles

• The ski poles feature hidden magnets in the handles and baskets for easy transport and convenience.

• Customers can customize their poles by mixing and matching from five vibrant colors, promoting a lifestyle brand for recreational skiers.

Origin Story of the Idea

• The term "yard sale" refers to losing gear while skiing; Christina's personal experience inspired the product's design.

• Kelly shares his background in mechanical engineering from MIT and experience at Apple, while Christina has a marketing background in venture capital.

Market Positioning and Sales Performance

• Over 60% of customers customize their poles online, indicating strong market engagement.

• The production cost is about $30; they retail at $139 with a 75% margin. They are positioned between low-end ($50-$60) and high-end ski poles.

Sales Growth and Future Plans

• In their first month before holidays, they achieved $100,000 in sales; total sales reached $220,000 year-to-date with forecasts of $300,000 by September.

• Plans to expand into retail include partnerships with REI and Backcountry. Adjustable pole sizes will cater to growing children.

Feedback on Branding

• Some sharks express concerns about the name "Yard Sale," associating it negatively with quality perception.

• Lori expresses her disinterest due to not being a skier but appreciates the passion behind the product.

Skiing vs. Snowboarding: A Personal Perspective

Diverging Opinions on Skiing and Snowboarding

• The speaker expresses a strong dislike for skiing, identifying as part of the snowboarding community, which leads to a humorous yet firm dismissal of skiing.

• Despite acknowledging the brand's catchy name and innovation, the speaker highlights concerns about the high valuation of $2 million for a business that is only six months old.

Investment Offers and Negotiations

Initial Investment Proposal

• The company proposes an investment of $200,000 for 10% equity but mentions having a secondary offer involving a royalty structure aimed at recouping initial investments.

Unique Royalty Offer

• Kevin (Mr. Wonderful) notes this is the first time he has been offered a royalty in such negotiations, indicating its uniqueness in their discussions.

Equity and Royalty Discussions

Counteroffers from Investors

• Kendra Scott offers to invest $200,000 for 20% equity while also seeking a royalty until her investment is recouped.

• Another investor suggests dropping equity to 15% but increasing the royalty amount until they recover $400,000.

Finalizing Terms

Adjustments in Equity and Royalties

• An investor proposes terms that include an 8% equity stake with a higher unit royalty until reaching $300,000 back.

Agreement on Terms

• After some negotiation over royalties and upfront cash requirements, there’s movement towards finalizing an agreement at 10% equity with specific conditions on royalties.