‘Shark Tank’ contestants turned $12 ugly sweaters into $20M empire — then landed a spot in Seth Rogen movie
‘Shark Tank’ Season 5 was one of the most massively hit outings in the history of the globally acclaimed series. One of the reasons was surely Tipsy Elves, a holiday sweater brand that was introduced by entrepreneurs Evan Mendelsohn and Nick Morton. The contestants making an appearance on the show explained that their company had a variety of holiday sweaters. Without a doubt, the product that was brought on the show had some unique designs.
Sure, the company grabbed a massive deal, but the development of the success is way more interesting. The entrepreneurs of Tipsy Elves had stepped onto the podium of ‘Shark Tank’ seeking $100,000 in exchange for 5% equity. Explaining their story, the two contestants stated that they were tired of searching for the perfect ugly Christmas sweater at thrift stores. Being frustrated, in 2011, they finally decided to come up with a line of ugly sweaters, designing it as well as manufacturing the line by themselves. Talking about their sales figures, Mendelsohn and Morton explained that their sales for 2012 were $862,000, giving them a total of $1.35 million in sales. According to Shark Tank Recap, this was the sale they had within the two years from when they began their firm. The contestants also explained, each sweater cost about $12 to make and had a retail price of $65. The duo claimed that the ugly sweaters were hot sellers.
Spilling the tea, Mendelsohn and Morton stated that most of the sales were made online. They had recently gotten some wholesale orders from retailers, which they wanted a lot more of, the outlet reports. However, Mark Cuban cautioned the entrepreneurs about branching out into the wholesale retail markets. This was also when he stepped out of making any deal with the guys.
For Lori Greiner, the sweaters were not unique, deciding the same as the former Shark on the show.
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Kevin O’Leary entered with an offer of $100,000 in exchange for $2 per sale, per unit, until his money was recovered. Mr. Wonderful also added that after recovering the amount, he would get $1 per sale, per unit, in perpetuity, and that he would take no equity. Robert Herjavec was the next Shark with an offer of $100,000 in exchange for 10%. When it came to Daymond John, he went out, agreeing with what Cuban had in mind.
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With two great offers in hand, Mendelsohn and Morton accepted Herjavec’s offer, shaking hands for a better future. Since their appearance on the show, the company has become wildly successful, making a net worth of over $20 million, according to Shark Tank Blog. Today, the line not only produces cool sweaters for Christmas but has been successfully selling apparel for nearly every theme imaginable, with also introduced a pet line with PetSmart. The outlet also reports that the sweaters from Tipsy Elves were featured in the Christmas comedy movie, ‘The Night Before’. In case you don’t know, the film in question stars a grand cast including Joseph Gordon Levit, Seth Rogen, Anthony Mackie, Lizzy Caplan, and even James Franco.