Danh Tran and Gary Falkenburg entered
Shark Tank Butter Cloth Update
- Entrepreneurs: Danh Tran and Gary Falkenburg
- Business: Clothing shirts for men
- Ask: $250,000 for 10% equity
- Result: $250,000 for 25% equity
- Shark Robert Herjavec
After passing out samples to each of the sharks, the duo started answering questions about the shirt’s design materials and logistical aspects of the brand. Dahn discussed the price points for his shirts, mostly selling them for around $100, exclusively online. The sharks seemed pleased to hear that it only costs $20 to make one of these high-quality shirts, allowing for them to have reasonable margins. After only selling the shirts for seven months, they had already sold more than $500,000 and claimed that they were projected to continue expanding and growing.
Due to excessive customer acquisition costs that are taking up most of their profit margin, Kevin O’Leary decided to drop out. Mark Cuban and Lori Greiner also decided to drop out instead of making them an offer, leaving only two sharks to negotiate with to try and strike a deal. Guest shark Charles Barkley was quick to drop out, but Robert Herjavec decided to make them an offer of $250,000 for 25% equity in the company.
Danh decided to accept Robert’s offer and seemed happy to do so. Let’s now take a look at the Butter Cloth update and truly see how the company is doing after
They are currently estimated to be bringing in more than $5 million per year and have been adding new products to the line, including shirts with softer fabrics and underwear too. The company seems poised to stay in business for a very long time with expanding potential as the months continue to pass. Their online presence also remains strong as they continue to sell their high-quality shirts and underwear.
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