Texans Rick and Melissa Hinnant’s embellished boot socks have buyers hot on the couple’s heels, and they think there’s enough demand to sustain a business. Will they earn a deal on
Shark Tank Grace and Lace Update
- Entrepreneurs: Rick and Melissa Hinnant
- Business: Boot socks for women
- Ask: $175,000 in exchange for 10% equity
- Result: $175,000 in exchange for 10% equity, with half of the sum being a line of credit
- Sharks: Barbara Corcoran
Rick and Melissa brought their fashion boot socks to the tank. Melissa accidentally stumbled upon her money-making idea when she dressed up a pair of boot socks for herself by sewing on a little lace trim and adding a few old-timey buttons. The socks peeked out above the top of her boots, giving her outfit a dash of style. When her socks began gaining popularity, their company Grace and Lace was born.
Melissa and Rick’s numbers were very impressive. In their first year of sales in 2012, they made $800,000. Twelve months prior to their appearance on the show, their sales reached $1.125 million. Their success was due, in part, to having a big profit margin and little overhead. A pair of socks sold for around $34, and cost just $5 to make.
90% of the company’s sales were online. Melissa said they never paid a $1 for marketing– their publicity was all word-of-mouth, mainly through social media. An image of Melissa’s legs, clad in her special socks, became one of the most pinned items on Pinterest, and the rest was history.
Lori Greiner was the first shark out, saying she was shocked at the company’s success, and that she couldn’t relate to the socks. Robert Herjavec asked the two why they needed $175,000, and Rick confessed that they really needed a strategic partner. Melissa said Nordstrom asked her for 50,000 pairs of socks, but she didn’t know how to make it happen. They wanted guidance from the sharks.
Barbara Corcoran offered $87,500 in exchange for 5% of their business– if they could get another shark to partner with her. Kevin O’Leary offered $175,000 in exchange for 20%, which would drop to 10% upon repayment of the capital.
Robert offered $175,000 for 10%. He was offended when they didn’t accept his offer right away, given it was exactly the offer they had asked for. Rick explained that they wanted to hear all offers before accepting. The sock company’s deal came apart at the seams when, after some intense back-and-forth, Robert withdrew his offer.
Mark was next, and he gave the same offer as Robert, $175,000 for 10%, and he needed to know immediately. Mark grew frustrated when Rick asked to discuss the offer with Melissa in private, and he accused them of being indecisive.
Barbara then stepped in saying she wanted to revise her offer to $175,000 in exchange for 10%, with the stipulation that half of the ask would be in the form of a line of credit. Melissa and Rick accepted the deal, but what happened next for their company? Keep reading our Grace and Lace update to find out!
Our Grace and Lace update finds the company is still kicking! Not only have they continued selling socks, but the company has expanded into other apparel items as well. The company reportedly had over $1 million in sales within five days following their 2013
Would you like to learn about the other companies featured on Season 5 Episode 10? Follow the links below for our other company updates from the episode.
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Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!