Zorpads
Zorpads is a product by a company that wants to solve, forever, the problem of shoe odor with space-age technology. Founded by entrepreneurs from Venice, CA and New York, NY, they demonstrate their "NASA tested" technology with garlic. When the garlic is covered by the Zorpad, it more or less blocks the smell.
The entrepreneurs told the sharks that the original product was developed by NASA for use on the International Space Station. They claim that it absorbs eight-times the odor of any competitors and is good for two months or 60 wearings.
The Zorpad costs $1.65 per unit to manufacture though they claim that, at scale, they can reduce this cost to just $0.8. The product retails for $5 per four pad unit. Since July 2017, when the company was founded, they have made $103,000 in sales.
While the founders have a provisional patent on the packaging a structure of the Zorpad, the actual material is produced by a third-party that they buy from.
The California based founder had previously worked at Clorox and had earned five patents for the company. After leaving Clorox, the entrepreneur worked on environmental control at SpaceX. The New York City based found was proficient in logistics.
The two entrepreneurs met each other at the Havard Business School.
The entrepreneurs tell the sharks that they want the money for branding. They think that with the right brand and awareness of what the product can do, they won't have to pay for placement on store shelves because 40% more people will walk down the same aisle in search of an effective odor solving product.
This deal aired on Episode 10.13.
Making A Deal
When the entrepreneurs mention that their odor solving will make 40% more people walk down the aisle and that the product practically sells itself, Mark calls bullshit on them and says that their Harvard Business School education has ruined them and, therefore, he was out.
Lori on the other hand, offers Zorpads a deal for the $150,000 that they were looking for in return for 30% equity almost quadrupling the 8% that the entrepreneurs had been looking for, contingent on the idea that guest shark Charles Barkley comes in on the deal and that he works with them to prove their claims.
Mr. Wonderful mentions his selling of Benjilock product on QVC and says that he'll merely take 20% for the $150,000 ask. Robert, likewise, offers 20% for the same $150,000.
The founders reply by asking Lori and Mr. Barkley to respond, hopefully with an offer that is better than the 20% already offered. Charles Barkley responds that he is more than worth the $150,000 that they're looking for alone so the entrepreneurs try to single out Lori and bring her down to under 20%. She refuses to go lower than 22.5%.
The founder waffle and almost lose the deal as Charles Barkley and Lori begin to feel insulted by the low valuation of their talents. Finally the entrepreneurs get out of their own way and make a deal.