Mike Barzman and Brian O’Connell have created wood-like surge protectors that they feel blend in better than the common black, white and beige ones on the market. Will they spark up a deal on
- Entrepreneurs: Mike Barzman, Brian O’Connell
- Business: Wood grain surge protectors
- Ask: $125,000 in exchange for 10% equity
- Result: $125,000 in exchange for 10%, with $1 royalty per unit sold until loan is repaid, then $0.25 royalty per unit in perpetuity
- Sharks: Lori Grenier
Mike and Brian brought their Invisiplug power strips to the tank. Their product features a wood-grain look in 3 different shades; light, medium and dark.
The power strips retailed for $14.99. They had only been selling the product for about six weeks prior to filming, and had 1,500 units sold, with gross sales of $10,000. They’re needing an investment to help them fill inventory.
Mark Cuban didn’t think the guys had a real business at all. Robert Herjavec said that the product was still conspicuous, despite attempts to blend in. Barbara Corcoran agreed with Kevin’s assessment that the company was grossly overvalued. Four sharks were out. What left Lori Greiner, who wanted to know what they would do with an investment.
Mike and Brian revealed that they needed to ramp up production because their sales were about to blow up. Their product was soon to be featured in Oprah Winfrey’s O magazine as a hot new must-have item. A few of the sharks had looks of rejector’s remorse after hearing that. Brian added that they had created a buzz with many big box retailers, and Costco had just approved their product for a trial run with the potential for much bigger orders.
Seizing the opportunity, Lori offered $125,000 in exchange for 10%, plus $1 per unit sold until the loan was recovered, then $0.50 per unit sold in perpetuity. The guys countered, asking her to change to $0.25 per unit sold until the loan was repaid, and possibly a $0.05-$0.10 per unit sold royalty in perpetuity.
Lori then came down to a royalty of $0.25 per unit sold in perpetuity, once the loan was repaid as in her original terms. Robert got back in and made an offer of $125,000 in exchange for 25% equity. They countered, asking Robert to bring his equity down to 20%. Robert declined, and went out.
They tried one last time to get Lori to reduce her royalties, but she refused, saying she was taking a risk and the compensation was fair. They accepted Lori’s offer and left with a deal, but what happened next for their company? Keep reading our Invisiplug update to find out!
We have pretty shocking news to share. Initially, the product had great sales, with a run on QVC and it also retailed in Target, Staples, and on Amazon. Sadly, things took a bad turn for the company in 2016. Mike threatened someone outside of his home with a semi-automatic handgun, and was charged with assault, and the company went under shortly thereafter. This will be our final Invisiplug update.
Would you like to learn about the other companies featured on Season 5 Episode 14? 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!