Next into the tank are NYC-based Laura and Michael Dweck of Basic Outfitters, seeking $125,000 for 10 percent equity.
Key Takeaways: Basic Outfitters on Shark Tank
- Investment: Basic Outfitters sought $125,000 for 10% equity.
- Product: “Create a Drawer” services that bundle men’s essentials like socks, underwear, and tees into a curated package, offering convenience and affordability.
- Sales and Ownership: Despite an impressive product concept, the founders had already sold 75% of their business, which concerned the Sharks.
- Outcome: Mark Cuban and Robert Herjavec opted out due to concerns over execution and prior equity dilution. Kevin O’Leary and Lori Greiner made offers but withdrew after realizing the equity was too fragmented. The company left the tank without a deal.
What is Basic Outfitters? A Quick Overview
Basic Outfitters offers “Create a Drawer” services that send supplies of socks, underwear, tees and more.
After seeking to fulfill the need for high-quality, affordable men’s essentials, they were inspired to create a new, curated collection of basics. According to their website, the founders “recognized the overwhelming need for superior and affordable men’s essentials offered to customers in a convenient, easy-to-use way. And thus, Basic Outfitters was born.” The “basic” drawer consists of up to 17 products and costs $60.
Single items can also be purchased starting at $15.
What Did the Sharks Think of the Company’s Pitch?
The sharks are amazed by both the quality and price of the clothing.
Daymond John, however, wonders if men would actually use the service. They are estimating $500,000 in sales for the year, however, the sharks become discouraged when they learn they sold 75 percent of their business.
Mark Cuban likes their vision but hates their execution so goes out. Robert Herjavec also doesn’t like the fact they already gave away so much equity away so goes out, followed by John. Kevin O’Leary offers $125,000 for 25 percent, contingent on the percentage coming from the other investors. Lori Greiner then makes the same offer.
They counter 15 percent equity, which makes O’Leary realize they just don’t own enough so goes out. Greiner counters back at 20 percent, however, given their uncertainty regarding the other investors, goes out.
Social Media Reacts to Basic Outfitters’ Appearance on “Shark Tank”
how can #basicoutfitters come to @ABCSharkTank but not have control of the company? How does that work? #SharkTank @mcuban
— momlife (@SpunkyNess) January 7, 2017
Watching @ABCSharkTank and I am likely to become a customer of @basicoutfitters. Great concept & price point! #SharkTank #ecommerce
— Career Navigator (@SteveCannatello) January 7, 2017
"You screwed yourself." I feel @mcuban 's frustration on this one. #sharktank
— ♀️Mom The Builder (@reallifecamille) January 7, 2017
Can't enter the tank with only a quarter of your business left ♂️ #BasicOutfitters #SharkTank
— Henry (@GentleHenry) January 7, 2017
Ouch #basicoutfitters you screwed yourself you should have known what your investors would give up #SharkTank
— Jacqueline E (@businesspipelin) January 7, 2017
Wrapping Up
Each week on “Shark Tank,” budding entrepreneurs have the opportunity to pitch their emerging business to six multi-millionaire and billionaire investors, known as sharks:
- Mark Cuban, owner of the Dallas Mavericks;
- Daymond John, fashion mogul and founder of FUBU;
- Kevin O’Leary, self-proclaimed Mr. Wonderful and founder of O’Leary Financial Group;
- Barbara Corcoran, real estate maven; Lori Greiner, queen of QVC;
- Robert Herjavec, technology guru and founder/CEO of the Herjavec Group;
- Venture capitalist Chris Sacca is also slated to appear as a guest shark this season.
“Shark Tank,” which is based on “Dragons’ Den,” is produced by Mark Burnett and first debuted in 2009. To date, the sharks have invested more than $87 million in various companies after engaging in numerous bidding wars and shark fights. A new episode airs each Friday at 9 p.m. on ABC.
Latest Update: Where Is Basic Outfitters Now?
Since their appearance on Shark Tank, Basic Outfitters has continued to serve customers online, selling their curated men’s essentials.
While they didn’t secure a deal on the show, the exposure led to increased brand visibility. They continue to focus on their “Create a Drawer” service, providing men with a convenient way to replenish their wardrobe basics.
Would you try out Basic Outfitters? Sound off in the comments section below!