Yardsale Founders React to Sharks’ Comments On Shark Tank Season 16
Highlights
- Shark Tank Season 16 has been going strong with fresh and distinct business ideas in every episode.
- Yardsale, a business offering ski gear, appeared on the third episode of the season.
- After facing criticism over its name, the entrepreneurs managed to receive offers from two Sharks.
The countless Shark Tank episodes differ from each other due to their unique highlight point for the day. One such highlight during the Yardsale pitch of Shark Tank Season 16 was a strong comment from Lori Greiner.
Having appeared as a regular Shark investor since its fourth season, Lori has prominently emerged as a headstrong personality who does not shy away from voicing her opinions. If she likes a product, she invests without a doubt. Whereas if she feels otherwise, she asserts her viewpoints.
Below is a detailed discussion of Lori’s comments on Yardsale, which appeared in the third episode of Shark Tank Season 16.
Why Does Lori Think ‘Yardsale’ Business Name is Too Negative?
The entrepreneur duo of Kelly McGee and Cristina Asbaugh made their way to the Shark investors, seeking $200K for 10% equity. Their offering was Yardsale, a company that provides magnetic ski poles harnessed with modernized features, especially for the needs of recreational skiers.
Launched six months ago, the poles are made for $30 and have a landing cost of $42. They are then sold for $139. The margins are 75%. After being asked about the sales figures, the entrepreneurs revealed that right before the holidays this year, Yardsale’s first month saw $100K in sales.
Further, the fiscal year to date saw $220K in sales. By the end of September, they are forecasting $300K. Additionally, the Yardsale founders project $2.1 million in sales in 2025.
Once Kelly and Cristina completed their pitch presentation, the investors geared up to share their views on the business and make deals based on the same. Lori Greiner was the first Shark who gave her comments on Yardsale. She asserted her dislike for the name of the business.
As per Lori, ‘Yardsale’ seemed to offer a ‘negative’ and ‘incorrect’ connotation, even though the founders wanted to project its products as ‘premium-quality, innovative items.’
Additionally, the literal meaning of Yardsale is related to the world of skiing and implies when someone loses everything and their skis and poles come off. This made Lori feel that the brand name sounded like a ‘disaster.’
She felt the name did not convey the right meaning of the brand. Instead, it might stop potential buyers from purchasing a Yardsale product.
Citing the above-mentioned reasons, Lori stepped her way out of the first deal in the third episode of Shark Tank Season 16. To support her decision, she also stated that she is not a skier and does not feel any personal connection with it.
Lori’s comments drew strong reactions from her fellow Sharks, who held a view opposite to hers. After her, some other panelists, starting with Daymond John, also walked out of the deal.
Daymond said he loved the name ‘Yardsale.’ In response to Lori’s comments, he said he did not feel anything was wrong with the business name. The situation reminded him of his experience with ‘FUBU,’ when many questioned the unique name.
After Daymond, Mark Cuban, too, exited the deal, saying he never tried skiing before and had no intention of trying it in the future.
Next was Guest Shark Kendra Scott, who loved the name ‘Yardsale’ but was apprehensive about making an investment as it was in its early stages and the valuation was high. So, she stepped out of the deal.
Yardsale Final Deal: Shark Tank Season 16
With no offers in hand, Kelly proposed a royalty deal to Kevin O’Leary. The deal was $200K for 5% equity with a $3 royalty till he recouped the invested amount. Kevin countered it with $200K for 20% equity and wanted to distribute the products.
While the negotiations between the two were ongoing, Kendra got back in the deal, saying the founders’ target area should be wholesale. She then proposed $200K for 20% equity along with a $3 royalty. Kevin then reduced his equity ask to 15% but wanted the $3 royalty.
Kelly countered Kevin with $200K for 8% equity at a $5 royalty per unit. Kevin said he would do it for a 10% equity. Replying to his counteroffer, Kelly claimed that through the $5 royalty, they could help him get his $300K back.
When they failed to reach an agreeable deal, Kelly proposed to Kendra $200K for 8% equity with a $5 royalty until she gets back her $300K. She liked the offer but wanted 10% equity.
After intense discussions, the final deal was done with Kendra for $250K for 10% equity at a $5 royalty till she recouped $300K.
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Conclusion
Yardsale on Shark Tank Season 16 presented the viewers with a unique business idea that blended stylish, customizable, and magnetic ski poles with a D2C model. However, the key highlight of its Shark Tank appearance was mixed feedback from the investors regarding its name.
Lori Greiner felt the name was negative and stepped away from the deal. Others, like Daymond John and Kendra Scott, expressed their liking for the name ‘Yardsale.’ Despite the discussion over its name, the founders smartly managed to secure a deal.
Entrepreneur, auteur, raconteur. Rob Merlino is a blogger and writer who enjoys the Shark Tank TV show and Hot Dogs. A father of five who freelances in a variety of publications, Rob has a stable of websites including Shark Tank Blog, Hot Dog Stories, Rob Merlino.com and more.
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