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Chalkless founders land whopping six-figure deal on 'Shark Tank' even after major business faux pas

The Chalkless founders refused to disclose their cost price, forcing the 'Shark Tank' investors to do the math themselves

Many athletes and sports enthusiasts struggle to maintain a strong grasp on particular pieces of sports and weightlifting equipment. In order to address this issue, Greg Pope and James Pidhurney developed an excellent solution—Chalkless—which they proudly presented to the Sharks in Episode 5 of ABC's 'Shark Tank' Season 16.

Hoping to get at least one of the Sharks on board, both of them pitched their startup brand and discussed the possibility of investing in their company. The founders entered the Tank seeking $400K for 4% equity and walked out with a 2-Shark deal, all without even revealing their costs.

Chalkless hides cost, throwing off Sharks in weird pitch

This product helps athletes improve their grip. The idea for the invention was conceived by two developers during the pandemic to support players in racquet sports. A substance that neatly massages into your hands, eliminates problematic oils and keeps moisture off your skin is the remedy. According to the developers, it helps in baseball and golf, among other sports.

The creators piqued the Sharks' interest with their sales figures, claiming that they made $740,000 this year. With such a large market to play in, they predict that the numbers will only increase. However, when the Sharks inquired about the cost of making the items, the creators kept quiet. The headline product, the tiny and easy-to-carry Chalkless bottle (8gm), costs $24.99.

If you're already a fan and want a larger packet, the 75 gm bulk pack retails for $84.99 and comes in a resealable bag. The Chalkless Dispensers, priced at $389.99, pour comparable volumes of Chalkless via an outlet when you pull the tab until you hear a click, ensuring even distribution and no product waste.

The firm also offers a dispenser stand for $100. For $459.99, you will receive a Dispenser Bundle that includes one Chalkless Dispenser and two bulk packets. The entrepreneurs revealed that their blended margin is 67%. This was a smart method to avoid disclosing the numbers and let the Sharks do the math. It was absolutely hilarious! We’d love to see the unedited version of that pitch. You just can’t walk into the Tank and refuse to disclose your costs — that’s a huge red flag!

Chalkless' undisclosed pitch fails to impress the Sharks

Mark Cuban wasn’t too keen on encouraging the entrepreneurs after they refused to disclose their costs. Lori Greiner and Barbara Corcoran both refused to make an offer, given they wouldn't be able to contribute to the vision of the company.

Kevin O'Leary, however, saw potential in the business and predicted a bright future with his distribution expertise. He offered $400K for 4%. But of course, Mr. Wonderful wouldn’t be Mr. Wonderful without a royalty. He proposed a $2.50 royalty per unit sold until $4M was paid off, after which the royalty would drop to 25 cents per unit indefinitely.

Sharks pull their celebrity plug to seal the deal with Chalkless

Rashaun Williams wanted a slice of that good pie as well, eager to join Kevin's offer and get in on the deal. He felt he could help the company with marketing and collaboration with big players who wouldn't mind promoting the company in the future against some equity.

One might think the Chalkless founders were crazy to give away so much equity, but who knows? The company could be in debt, and they might have been desperate for cash. In the end, the duo accepted Rashaun and Kevin's very Sharky offer.

'Shark Tank' Season 16 airs on Fridays on ABC at 8 PM ET.

For those who miss the episode, it will be available on demand the following day and on Hulu. Additionally, viewers can explore past seasons and episodes on Amazon Prime Video and iTunes.