Daymond John drops Pepper Pong deal after Todd Graves makes a play on 'Shark Tank'
The Denver-born innovation Pepper Pong, which has the potential to become the pickleball of table tennis, was introduced to the Sharks. The game has been around for a little more than a year, but on Friday, November 22, fans tuned in to watch founder Tom Filippini try to persuade the mega-investors to part with money for the ping-pong-like equipment on ABC's 'Shark Tank'.
Tom walked into the Tank seeking $150K for 10% and had a very shaky start to his pitch. Professional athletes use it in their agility and accuracy training, demonstrating that its appeal goes beyond casual users.
Pepper Pong's pitch had a rough start
Each Pepper Pong set is priced at $99.99, though occasional sales bring the price down to as low as $69.99. Tom disclosed that the product has already generated $260,000 in sales over the past few years.
However, with a production cost of around $60 per product and a selling price of just $70, the Sharks weren’t impressed. Adding to the concern, his customer acquisition cost of $21–$22 made the situation even less appealing.
Tom further revealed how he has put $500K of his own money into the business, making it a very personal project for him. A major part of the money has gone into perfecting the multi-cavity mold. Despite doing $160K in net sales last year, which was his first year in the business, he sought money to make more molds and more variations for his product.
Todd Graves flaunts Post Malone connection to seal deal with Pepper Pong
Lori Greiner appreciated the business idea but felt it was not the right fit for her, ultimately deciding not to make an offer. Similarly, Kevin O'Leary loved that the company was getting some traction, which made him consider making a deal. However, when he figured he wouldn't be able to take royalty, he chose to step away as well.
Mark Cuban believed the company didn't need an investor right away, and Tom should be fine carrying on the business on his own, leading him to opt-out. Daymond John however felt he could add value to the company as well as help Tom figure out the retail aspect of it. However, he only agreed to offer $150K against a 30% equity stake in the company. Guest Shark Todd Graves felt this could become the next Pickleball. He tried to undercut Daymond by offering the same amount but for 25%.
Todd assured Tom that he would help him master the social media game, drawing parallels to the success of Raising Cane’s Chicken Fingers. He highlighted his expertise by sharing the story of his high-profile collaboration with Post Malone, which significantly boosted his restaurant’s sales and visibility.
Daymond John pulls out on his offer to Pepper Pong
Knowing Daymond could help Tom in retail, the founder got straight with the Shark. He clarified that while he sees the potential for retail expansion in the future, he doesn't plan to pursue it immediately. Daymond, respecting Tom's wishes, decided to withdraw his offer. With Daymond out, Tom turned to Todd and successfully negotiated the deal down to 17.5% equity.
Todd initially asked for 20% equity, but Tom pushed back, attempting to lower it to 19%. After some negotiation, Todd agreed, and the deal was sealed. Now, all that’s left is hoping they don’t see a knock-off on Amazon for $25 next week—though it could happen even sooner, likely marketed as "indoor portable pickleball" sets.
There have been other comparable items throughout the years, but we enjoy how with Pepper Pong, each ball serves a unique role. Given Tom's nervousness and the rocky start to his pitch, we hope that this deal goes through quickly.
'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.