'Shark Tank' contestant turns down $1.5M offer from Mark Cuban and still walks away with life-changing deal
It takes guts to turn down a deal offered by 'Shark Tank' investors, but some contestants stand their ground even in front of the panel, which consists of some renowned business tycoons. During the first episode of 'Shark Tank' Season 14, which was released in September 2022, Tate Koenig pitched his company Pizza Pack, which sells a collapsible, pizza-shaped container that saves storage and keeps the slices fresh, before the esteemed Sharks Mark Cuban, Kevin O'Leary, Lori Greiner, Daymond John, Barbara Corcoran, and Robert Herjavec. In the episode, Koenig was seeking $100,000 in exchange for 10% of his company.
During his pitch, Koenig said, "Sharks, when it comes to leftover pizza, we've all tried to cram that big, bulky pizza box in the fridge even though there are a few slices left in it. It takes over the whole shelf and knocks over everything in the process, so I decided to think outside the box. Sharks, meet the Pizza Pack, the expandable and collapsible pizza storage container that can store a single slice or an entire pie. Each Pizza Pack comes with five divider trays that not only keep your slices separate during storage but also double as perfect pizza plates when you want to microwave and reheat, and each pizza pack comes with a pop-top air vent to keep you safe from the dreaded soggy slice syndrome, even when reheating the entire pack at once. Sharks, crust me, it's time to cheese the day, we are just preheating the oven on this legendary product."
When asked about the sales, Koenig shared, "We just started selling this in April. Since April, we've done over $250,000 in sales. In the first two months, we're pretty much out of inventory. We are on our website, the perfect Pizza Pack, and then also on Amazon and Walmart." Soon after, Koenig shared that the manufacturing cost of one Pizza Pack was $4, and the product retailed for $24.99.
Soon after, the Sharks came down to business, with Corcoran being the first one to back out. "I don't get this product, I really don't, and I had an Italian boyfriend in high school, and I ate pizza every night with his family, they never saved a piece, they ate it all up," Corcoran said, according to Market Realist. Following that, Herjavec also dropped out, as he didn't want to invest his millions in a single-product company.
On the other hand, O'Leary saw the potential in Pizza Pack and told Koenig, "I'm going to make you an offer. I'm going to give you $100,000 for 10% because I'm not greedy and I'm Mr. Wonderful. I'm willing to put a very small royalty of $2 a year until I get my $100,000 back, and then it drops to 50 cents in perpetuity. Take the deal and eat the pie." Shortly afterward, Greiner made an offer of $100,000 for 20% equity, and John matched that offer. At last, Cuban offered $1.5 million for a 100% stake, which Koenig declined by saying, "Mark, I really appreciate that offer. That's a ton of money, and that's fantastic, but I think I can make a ton of money with Lori."
