‘Shark Tank’ duo stuns panel by rejecting $1M offer to buy their entire plush toy company
Million-dollar deals are a rare sight on 'Shark Tank,' and when an entrepreneur lands one, they usually accept it. However, some contestants are crystal-clear about what they are seeking from the Sharks and stand their ground no matter what. In a Season 6 episode of 'Shark Tank,' Ray Phillips and Alvin Uy presented their children’s toy company, SoapSox, to the Sharks, Mark Cuban, Kevin O'Leary, Lori Greiner, Daymond John, and Robert Herjavec. In the end, the founders of SoapSox declined a $1 million offer for their soft toy business.
In the episode, Phillips and Uy sought $260,000 in exchange for 10% of their company, SoapSox. During their pitch, Phillips said, "Sharks, meet SoapSox, the next generation of washcloths for kids. Sharks as parents, maybe you struggle with this, you come home after a long day of work, and you start the evening routine of homework, dinner routine, then, bath time. How do I get my kid to bathe without the screaming and crying?" Uy added, "Sharks, we have the solution. What we came up with is an adorable new line of plush toys that kids can take from playtime to bath time."
As per Market Realist, the duo revealed that each SoapSox toy cost $3.66 to make and sold for $19.99. They also claimed their company would hit $600,000 in sales by the end of the calendar year. Soon after, the Sharks voiced out their concerns about the product, with O'Leary saying, "Every other plush toy in the store that looks like this is $4.99, $5.99. This is a really premium plush toy, like the first one in my life I've ever received for twenty dollars."
Following that, Cuban backed out and said, "I think you guys have got a nice business, you're killing it on margins, but it's not a business that gets me lathered up. I don't know that I can help, so for those reasons, I'm out." While talking about the pricing, O'Leary went on to say, "Guys, the price is too high. I can't even see this ever being long-term for more than $12.99. It should be $9.99 and you're not worth $2.6 million. I'm out." Herjavec dropped out shortly after due to similar reasons. Later, John offered Phillips and Uy $260,000 in exchange for 33% of the company. After hearing that offer, Phillips shared, "We don't mind doing the hard work. That percentage is 10% higher than what we'd want to give away."
In a surprise move, Greiner and Herjavec teamed up and offered to buy Phillips and Uy's entire company for a whopping $1 million. Then, the duo turned down Greiner and Herjavec's offer and explained, "We aren't afraid of the hard work and building it into something bigger. For us, it's not about the money. I've been designing products for bigger companies. I know I'm good, but this is the first time where I feel like, you know, I'm finally doing something for myself. We own this. We're dream chasers right now, so we don't want to give it away." Ultimately, Phillips and Uy rejected both offers and walked out from the show.