Levi Wilson and Tim Todd of Oklahoma came to the Shark Tank in hopes of securing $550,000 for a 15% share of their company, Life Lift. Their signature product is an in-home telescoping storm shelter to help protect families from sudden storms and tornados. Their patent-pending first product, a telescoping bed, raises and secures into place in 60 seconds. Once securely in place, the space below the bed becomes a shelter capable of taking a direct hit from an EF5 tornado and the accompanying 250MPH winds. Levi and Tim would like to expand their line of products to include other household items such as kitchen islands and workbenches.
Life Lift is an appealing option for families as the US typically sees, on average, 1200 tornados per year and the current storm shelter options are limited. This space-saving design makes it easier for families to find the room for indoor and above ground shelters in the event of an emergency. Life Lift is mounted into the concrete foundation, ensuring that even if the house takes a direct hit, the Life Lift will still be standing. The product is priced comparably to other indoor shelter options, around the $6,000 mark fully installed.
Will this company rise to the occasion? #SharkTank
— Shark Tank (@ABCSharkTank) January 28, 2019
As the company is very new, they have sold 119 units and brought in $550,000 in sales over a 3-month time span. They are currently in the process of setting up installers and dealers for their product, although the Sharks are concerned that they are not turning a big enough net profit from their product considering how much of their time and manpower goes into each product. They would like to see them be able to outsource more of the work and increase their costs to have larger profit margins.
Mark Cuban extends Life Lift an offer for $550,000 in exchange of a 25% share of the company. As they grow he will finance purchase orders and will introduce them to home builders. Lori Greiner also makes them an offer for $550,000 for a 25% share. Levi and Tim ask the Sharks if they would be open to a royalty agreement rather than an increased share of equity. Both Mark and Lori said they would drop to 20% for a $100 royalty per unit, but Mark advises them that a royalty agreement actually wouldn’t be in their best interest financially. Life Lift decides to accept Mark Cuban’s original offer of $550,000 in exchange for 25% equity.
All smiles here with @mcuban after his deal with #lifeliftsystems ! #SharkTank pic.twitter.com/QVWlczVizr
— Shark Tank (@ABCSharkTank) January 28, 2019
What do you think of Mark’s investment in Life Lift? Would you purchase this product? Sound off in the comments below!
For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 9:00 PM EST.
Read More: How Was the Killer US Tornado Born and Raised?
This article was written for Business 2 Community by James Spillane.
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