Because as an entrepreneur, he knows that perfect competition and competitive advantage is the best thing in consumer market. Even if he isn't investing, he wants to see small business blow up in their respective industries
15 not fair. Robert was being too generous. they had no intentions of accepting any offers. they were happier when they left than when they came in. they did this whole pitch for free advertisement
Key tip: If you ever want to reduce the equity, counter with a royalty deal. If you want to protect the valuation of the company, offer advisor shares.
But their current valuation was way off, so it wasn't going to happen anyway. Advisor shares on an 8 million valuation is still very steep, especially when Robert's offer implicitly values the company at 2 million. If they can't agree on the valuation, advisor shares are pretty much a moot issue. Does Robert do royalty deals? I always thought that was more Kevin's wheelhouse.
@@emilianosiqueiros3275 I saw that video when she called the doctor chauvinist for no reason but she was actually pissed with her fellow sharks who were cutting her a lot and not letting her complete the sentence. The doctor was flustered with Mark's nonsense and it made the pitch completely derail its tone. In that episode I felt Mark and Lori made mole out of the mountain despite doctor saying sorry to her while delivering the pitch and afterwards when he was interviewed.
she is very childish when a deal is not going in her favor. she talks over everyone and always faults back to "i can put you in any store, everywhere" well most of the other sharks have just as many contacts so get over yaself. and qvc is a joke in and of itself.
Those people weren't there for a deal. Shame on them! I can pretty much guarantee that they were lying about their profit margins, its most likely at least 100% profit or more, because those materials are cheap. Such shady people! They're whole dtc ain't gonna work. They're over their heads. Oh well, let them learn the hard way.
@@DavinaMealoha I pray that they experience a financial burden to the point that they become depressed and contemplate suicide. Hate people like them that try to take the easy route of only wanting free publicity
@@yuyu12381 It's because they're 100% evil and greedy. Just went on shark tank for promotion. They for sure wasn't there to make a deal. Those type of people shouldn't be able to appear on Shark Tank.
Barbara is not there. Don't bad mouth my Barbara. Barbara is quicker in making decisions. So she'll go out early instead of wasting people's time. Also she has made more deals than Robert and Daymond. So this joke is stale on delivery. I am going to have another dream about her tonight though. ❤
Robert’s offer was really generous, the valuation was laughably high for a pillow company with hundreds of competitors with no unique model, and a five person team.
6:33 - Cuban is correct, the entire point of machine learning is to predict behavior. You want to accurately predict how much inventory you'll need to be ahead of the purchase order.
They were not even implementing Machine Learning. It was data analysis. Just scan through the data and make a prediction about the customer. Basic pie chart stuff. The only differentiating factor in their product is their quality. Haven't seen customized pillows like these before.
@@yiwanye1221 I think so too. Mark was right. Maybe simple linear model will do the pillow recommendation, but they should be using the machine learning for inventory prediction. After all they did mention their margin could go low if they solved the inventory problem
@@revenant8061 No, as per the pitch, their software takes data from consumers. With those data, their software tries to predict the best possible variation of their potentially-preferred pillow. That's not simply data analysis because the blood and veins of data analysis is prediction coming from back-cast data. Whereas machine learning is providing a suggestive prediction based in the current data (customer input), clustered variety (stored data), and machine criterions. By the way, machine criterions produce another variation of criteria only when a current data is not compatible to the clustered variety.
That is not correct. First off, ML (or data analysis or data mining or the now trendy term AI -- all the same thing) generally covers two big groups of algorithms - descriptive and predictive, so prediction is not the sole purpose of ML. Second, their attributing new customers to specific pillows _is_ predictive classification - they don't know which pillow is best for the customer but they predict he'll like this or that based on the data they supply.
I get the feeling a lot of people come on the show with ridiculous valuations because they don't want the Sharks to bid on their companies. They want them all to pass on their offers, then they get free advertising for their product. Then in the weeks after their appearance, sales of their product soar. A smart way to get free advertising.
I remember you had to give up very little equity to be on the show to the producer. (like paying a fee to be on the show) but that was early stage of this show. I don't know if they are still doing that.
The valuation reflects the fact that they mainly wanted the Shark Tank exposure. Their sales will have a major increase with the free exposure. I sense that they feel confident that they can get there on their own, without a shark. They said "We've already done all the hard work" which shows they think that scaling the company will be easier than what's already been done. Maybe it will be. Since they are profitable, they can hire a CEO and have expertise all day every day working on their behalf. Either use the sales bump money or get a non-shark investor or bank loan to acquire the funds for an experienced CEO for $200k per year or $100k per year plus profit sharing. They might also be able to find a mentor through local SBA.
Good expert costs bif money and they are chinese... very sneaky , they will never pay big bucks for an expert. They also needed Roberts contacts, he could help them to sky rocket this comapany. 500k is a good hobby company .
@@switchunboxing They wanted free advertising, but I am sure that having Robert on board would be more beneficial for them than just being aired on shark tank
That’s an amazing offer . 400k for 20% and he would invest his time and expertise.. And over pay for his shares.. There is no way it’s a 2 M Company at the current moment.. And he could of helped turn it into 100M or more company
I guess time will tell...but I think the idea will fall flat without proper investment. Their cost of goods was just way off, combined with a nutty valuation (they just hired 2 people to make the pillows? Cmon...that's practically a family home business).
They must have some other investors, they only had 400k in sales so asking for 20x sales lol... Insane. Roberts 2M is 5x sales and 10x earnings for a startup is super fair. They prob didn't want to dilute other investors or will just get a bank loan at low interest
Why is it insane? Tesla has a price to earnings ratio of 330 to 1. They are making a few billion in profit every quarter but have a trillion dollar valuation. Growth.
@@wittenberg5 Because a company like Tesla is the future of the automobile industry. They wiill be minting money once countries around the world commit to greener fuel sources. If this pillow company takes off, from a technology perspective, any other developers can build an algorithm of their own to sell pillows.
Exactly... Tsla revenue is 47B TTM so 1T cap is 20x sales. World changing Tsla is 18 years old, pillow company 3yrs old. These guys are pricing a pillow company like its Tesla lol. And i like the business too but cmon lol
20 x sales... nad such a low margin + (it should be minus) 18 bucks for shipping and there is nothing new about those pillows,similar can be found at thousends of shops, IKEA, Wall Mart, Bed and Byond and biggest problem is that you can not touch those pillows. I would never buy a pillow at the internet. I must feel pillows.
I forgot that those pillows cost 95 bucks... haha, it must be with happy ending included. This is not rocket sience. 95 bucks + 18 shipping , crazy bussiness model.
Let's be real. The algorithm talk was plain bs. They only have 35 combinations of pillows. And they claim their return percent is like 4% less? That's nothing.
Uh I’m not an expert at this stuff but I do gotta say tho, those guys most likely just came there for the exposure and weren’t interested with working with the sharks, even when she didn’t get a deal she walked out of that door smiling like she won the lottery
I’m a developer, that algorithm 1.5 data points is BS. The questions will be answered and it will always point out to a certain path. Cuban called them out on it, IT IS A LINEAR PATH, there’s no machine learning implemented and they tried to lie about it.
Since their appearance on “Shark Tank,” they’ve experienced significant growth and are now valued at around $13 million. They generate approximately $5 million in annual revenue.
Exactly what I was thinking. They didn’t even try to back up that evaluation which makes me think they were going for the free exposure. And if they got a shark at their price then that would be a nice plus
I loved the feedback. those contestants are more excited about their success and product than they are efficient business modeling. theyre so young too so it makes sense, these judges are really passing on experience and wisdom. I hope they realized that.
Robert's valuation is $2 million which is actually very generous when you compare it to their sales. Robert was also open to putting in more money. They are too greedy and missed a great offer because they weren't ready and thought their system alone was worth millions as is. Custom mattresses and pillows aren't new. Any major company that wants to change its customization feature slightly could bury them easily.
Robert should have said: 400K for 20%, with an option to buy back 10% of your equity, for 2x valuation. Meaning if they pay Robert back 400K Robert is left with 10% and they get their 10% back.
I ordered a pillow with this company couple of months ago. They allow you to send the pillow back and adjust it as often as you need. It's a very nice pillow, but my neck is incredibly picky so wasn't for me.
@@mrperfecttt001007 one is capable of acknowledging when something is of good quality and build, but isn’t their preference. Jennifer Aniston is not beautiful to me, but I know she is beautiful to others - I don’t go around saying she’s ugly just because I personally don’t prefer her look. Same for this pillow.
"This company has $100 trillion in the bank and sees that money increased by 20% every day, at no effort at all. There is literally no risk and..." Barbara: "Can't do it, guys, I'm out."
Entrepreneur: my business is this amazing idea that will allow people getting out Barbara: love it, finally an idea that is for me, and for that reason I'm out
The difference between "Obstacle and an Opportunity is our attitude towards it. Every Opportunity has a difficulty, and every difficulty has an Opportunity.
If i was wise enough to doubt Mr. Adam and avoid becoming another fraud victim i would be the most foolish at this moment, i felt guilt and happiness when i got my first payment, I owe this great Man my life savings.. Thank you very much Mr. Adam 🙏🙏
Exactly. The algorithm is linear, as Mark said. It's just adjusting the data points to get slightly more accuracy. They need sales and high volume to figure out how to decrease costs, as Robert said.
They weren't serious. They value themselves at $8 million when they're not worth anywhere near that much. Mark and the other guy were the only ones to point out the algorithm isn't what they think it's worth.
@@aircom3073 Rob would never drop to 15%.... His made his money from nickle and diming desperate entrepreneurs. He also never gives what the entrepreneurs what there looking for, and nearly never drops even 1% from his offer. He attacks when the other sharks are out, and when they jump in. He gets angry and crys to the entrepreneurs for listening to other sharks. These Entrepreneurs were stupid, Rob brings nothing to the table, if this was Mark or Lori, they would of asked about 15%, they just didnt care about Rob to negotiate to 15%, in the odd case he takes it. than there stuck with a shark that brings nothing....
I'm normally quite down on the sharks' offers believing they are low-balling. These guys came in very aggressively with a $400k valuation for 5% with good but still modest sales volumes. Robert's offer for a $2M valuation is on the higher side of most shark offers on this show. I don't think these two came in looking for a deal to be honest.
While the sharks may give offers that are less, they have the ability to blow up the product. The real issue is the entrepreneurs are realizing they don’t need them and just being on the show is going to blow them up. What I think they fail to realize is that only for a blip in time, and a deal with the shark is forever and a shark can mention the product for years to come.
Totally agree when they were making 3x year in year they never came in for an investment they came in to get eyeballs and if by any chance they got the offer between 5 to 10% it would just have been a benefit to then but even then I think after the show they would have walked away
I doubt it. Robert's offer valued their company at a quarter of what they asked. They halved their value to try to strike a deal and Robert still didn't bite.
I feel that before Robert's offer, no one wanted them at all. No sharks asked about their debt, other investors, their prices compared to their competitors, and their percentage on the market. They were really lucky to get an offer from Robert.
I believe those were their sales, so they only made a quarter of a million in their most profitable year from the three years they've been in business.
Their problem was they didn't know what they didn't know. If they did and they recognized how it was going as sharks dropped out, they could've come back by saying, "Robert, as you were making your offer, I was considering offering you 10% for the same amount, so would you consider $500000 for 15%?" Maybe that would have been close enough to set up something like where they're also paying interest on it a la Kevin's offers.
I thought the evaluation was high, the market is very competitive and scaling will be a hassle unless the goal is to exit to a bigger company, Roberts deal actually wasn’t too bad.
Average consumer doesn't really know how to answer the online questionnaires correctly. They might think it's medium or soft but it's hard to get it correct because it's relative to what they think soft/medium/firm feels. Return rate MIGHT be low but in that price point most people will go on to the next product and not fight the back and forth to get it correct.
There are also restocking fees in online only businesses. Maybe even no free return shipping too. You pay $100 for a pillow and you decide you don't want it but then you see it's $12 to ship back and they will refund $85 for it, and you decide maybe you'll keep the custom pillow after all rather than lose $27 and some time.
Another pillow company... They're not smart for refusing the offer. They overvalued their business anyway. Investors today, don't pay for tomorrow's valuation... Otherwise they would have no reason to invest.
Investors pay for tomorrow's revenue all the time, google price to earnings ratio. In fact that is how a valuation is done, you discount expected earnings back to the present.
@@wittenberg5 of course you pay for tomorrows revenue, but the riskiness of those expected cash flows have to be taken into account. Investors pay for those cash flows at their current risk levels, not hypothetical future risk levels. They overvalued this business
@@AbdulRaheem-so2xf Tesla, although, has a competitive market is stronghold. Everyone will buy cars and would want something from a variety of choices. Pillows, on the other hand, you can just find it anywhere meaning tons of competition with lower chances of getting high valued.
@@intelcore5409 If they only wanted advertising they wouldn't have dropped their valuation. They had other investors and giving Robert such an offer would have angered a lot of their investors and it could have affected their ability to raise money in future. Thankfully they saw it was a bad deal and pulled out.
It’s too expensive and the market is too saturated. I could spend the same money at one of the top tier pillow manufacturers get four different pillows and in all likelihood have one that works.
I ordered their KING SIZE pillow and it was nice, but my description during the online information on Pluto, I didn't account for my wide shoulders. I got in touch with Pluto customer service and they IMMEDIATELY got back in touch with me; both via text message and email. They gave me a couple options to try and they sent me an inner core to make my pillow thicker. It worked like a charm! It is absolutely perfect! The pillow is worth the investment and their customer service is seriously the best I have ever dealt with from a company. I HIGHLY recommend this pillow and this business. Overly impressed for sure!!! 🛏️😴
Their crazy , he wanted 20% and willing to go slightly lower they were willing to part with 10% , Counter offer 15% doesn’t sound bad they didn’t even ask .
If someone from India is watching this, the TVF series "Pitchers" had a similar idea in it where the guy was pitching "Flipkart but only for Pillows" as a parody.
Tricky part is that 400k is not just about the valuation of the company but what else Robert could bring to them. If Robert can help grow this company to 20-30mil in a year or two, then losing 20% is worth it
Wow, I just found out Pluto was on Shark Tank in October 2020. I have been using the same Pluto pillow exclusively since April 2020 - almost 2 full years! - and it's by far my favorite pillow. And I take pillows seriously - I've spent thousands of dollars in the last 5 years searching for the perfect one, and have tried nearly 30 different pillows... lol.
@@sylviajacobs31 you can literally find your own pill preference and buy one for 1/3 of the price. These pillows are now thing more than for fun of answering questions.
@@tsooraz_jr I have no clue, I'm just saying what I believe are their intentions or strategy. Even the 9% counter seems to suggest that they wanted to give up that amount of equity, perhaps forcing Robert to accept a 10% (nice whole number). Obviously the sharks thought otherwise, and the entrepreneurs played their cards wrong. They are like most other companies in the shark tank, coming in with ridiculous asks forcing the shark to ask for way more equity than they are ready to give up.
I'm old and have always been wanting for a decent cluster of supportive yet soft, firm yet comforting pillows. I found absolutely perfect pillows on Amazon last year, I'm ashamed to say as I hate contributing, but alas, they are perfect. I think that something like this is SO personalized, you have to assume that you can't really market to everyone. There's nothing about a pillow that would make me change mine, for instance.
I hate business owners like them “I feel like we are worth way more” okay good that you have feelings but in reality with your numbers being at 400K and your bringing in about half of that so 200k even if they do grow at the rate they say they do not worth anywhere near 8M…
@@ItsKristiannn 8 million... chinese think he sold for 500k and soon he will sell for 5 and 10 millions, but that is a different ball game. You need to gave good customer service, order those pillow just in time to not have a big stock and hundreds other problems.
I always think the reason you go to Shark Tank is to reel in a Shark. Regardless of the equity, having a Shark in your biz opens a lot of possibilities for other biz opprtunities. So i hate it when people pass on that opportunity.
@@joelkoo2550 then it ain’t for you. But those five dollar Walmart pillows ain’t nothing compared to Pluto pillows. I hope you know that there are no bad reviews on the product, the only thing that people complain about in this comment section is the price. But not one person has said that it wasn’t worth the price when they bought it. But that doesn’t mean it’s not a good product with it being $95. It includes shipping so it’s free, and they pay a lot and they’re shipping like 12$and then it takes to make the product is like $45, I don’t know how much they spend on packing the product but that’s probably about $55
One more thing, this business would have no repeat customers, their algo (which they are clearly overvaluing) will select a pillow and case and send to customer. Now the customer knows what type of pillow and case to buy for a their best comfort they'll never overpay again for a *jigsaw* solution
Yeah, they often seem to compete with each other. On one clip Robert even called Mark arrogant, not letting the people give their sales pitch, sticking his nose in and taking all the attention.
Who caught themselves saying “don’t do it” to the deal they were offered. This will blow up and they will find other successful investors down the road.
@@tpl608 Ok, so let me tell you why what you said is stupid. Mark: Your data isn't anywhere near where it needs to be, your valuation is out of whack, your vision isn't what it needs to be to succeed, you're going in the wrong direction You: If mark knows all of this they will go through, he should show his worth and make an offer Why would he *pay them* to be their mentor in a company he doesn't believe in? That makes no damned sense.
Barbara: "Pluto isn't a real planet anymore, and for that reason, I'm out."
🤣 this comment
LMFAO
nice
OMFG🤣😆😭
Hahahaha
I like the fact that - even when Mark is out - he speaks out so many important pointers to learn / follow for the entrepreneurs
Marks a Bully
@@thebluebooklife mind ellaboratin? Im new to this
@@jz2527 hes not, but it does piss me off how people suck him off so much. he could be breathing and they would ride him.
Robert was so giving that only can daymond john would compare to him. If i were them i would go even 50 percent 😁
Because as an entrepreneur, he knows that perfect competition and competitive advantage is the best thing in consumer market. Even if he isn't investing, he wants to see small business blow up in their respective industries
I love how Sony posts full clips
Anything for a couple extra pennies of revenue in their pockets.
Why is it not on Netflix anymore
Not often
True
Huge W
8 million for pillow company with literally 5 people in it?
Robert actually had good offer
I would go with 15% too. I think 15% is fair.
15 not fair. Robert was being too generous. they had no intentions of accepting any offers. they were happier when they left than when they came in. they did this whole pitch for free advertisement
No one ever wants to make a deal with Robert, even when he's the only one left. What's up with that?
They really didn't need to the money, it felt like a ploy to get on show. They will sell 1.2 million within the year. That was the pace.
I mean they went from 100k to 400k to a projected 1.2m so a valuation at 4m which is what they were willing to go up to is not a crazy price
Key tip: If you ever want to reduce the equity, counter with a royalty deal. If you want to protect the valuation of the company, offer advisor shares.
But their current valuation was way off, so it wasn't going to happen anyway. Advisor shares on an 8 million valuation is still very steep, especially when Robert's offer implicitly values the company at 2 million. If they can't agree on the valuation, advisor shares are pretty much a moot issue. Does Robert do royalty deals? I always thought that was more Kevin's wheelhouse.
Thats what I was thinking. They should've countered with something like:
400K for 10% and $1 royalty per pillow until 500K is recouped...
Lol a royalty deal when your margins aren't good Kevin will start pelting stones man😂😂
@@AskAir ummmmmm, man did you try to even do the math before suggesting $1 a pillow? If they offered that to sharks they'll be toast within minutes
@@AskAir You mean 20 bucks.
I really like how Lori responds when she is interested or not interested she is so encouraging. Love u Lori
True
Watch the vid of ezc with the physican, lost all my respect for her, I don’t even wanna talk about it
@@emilianosiqueiros3275 I saw that video when she called the doctor chauvinist for no reason but she was actually pissed with her fellow sharks who were cutting her a lot and not letting her complete the sentence. The doctor was flustered with Mark's nonsense and it made the pitch completely derail its tone. In that episode I felt Mark and Lori made mole out of the mountain despite doctor saying sorry to her while delivering the pitch and afterwards when he was interviewed.
she is very childish when a deal is not going in her favor. she talks over everyone and always faults back to "i can put you in any store, everywhere" well most of the other sharks have just as many contacts so get over yaself. and qvc is a joke in and of itself.
@@dazem8 damn some harsh truth, QVC is so 1990s to me. Means nothing.
Insane, greedy valuation. Robert's offer was extremely generous
I hope you realize that valuation was just free advertising, it happens all the time
Those people weren't there for a deal. Shame on them! I can pretty much guarantee that they were lying about their profit margins, its most likely at least 100% profit or more, because those materials are cheap. Such shady people! They're whole dtc ain't gonna work. They're over their heads. Oh well, let them learn the hard way.
@@DavinaMealoha I pray that they experience a financial burden to the point that they become depressed and contemplate suicide. Hate people like them that try to take the easy route of only wanting free publicity
@@Ghostmanetx Ayo chill out fam lmao
@@yuyu12381 It's because they're 100% evil and greedy. Just went on shark tank for promotion. They for sure wasn't there to make a deal. Those type of people shouldn't be able to appear on Shark Tank.
Barbara:"I don't usually sleep..for that reason alone...I'm out"
LMAO.... You guys need to leave Bab's alone... lol lol lol
Barbara is not there. Don't bad mouth my Barbara. Barbara is quicker in making decisions. So she'll go out early instead of wasting people's time. Also she has made more deals than Robert and Daymond. So this joke is stale on delivery. I am going to have another dream about her tonight though. ❤
@@tj.espygil4544 LEAVE BRITTANY ALONE!
@@Gunnysunny Who is Brittany?
Lol never mind if you don’t get the joke.
Robert’s offer was really generous, the valuation was laughably high for a pillow company with hundreds of competitors with no unique model, and a five person team.
Check out their new travel pillow… it’s really a game changer.
No unique model? They literally said their method is patent pending.
Barbara:" I had a nightmare that I was in Shark Tank and invested 400 000 dollars".
“And for that reason I’m out.” 😂
@@ingrid8994 😂😂😂🤣
What did you invest in ?
Chinese people always trying to take the easy route
@@Ghostmanetx ?
6:33 - Cuban is correct, the entire point of machine learning is to predict behavior. You want to accurately predict how much inventory you'll need to be ahead of the purchase order.
They were not even implementing Machine Learning. It was data analysis. Just scan through the data and make a prediction about the customer. Basic pie chart stuff. The only differentiating factor in their product is their quality. Haven't seen customized pillows like these before.
@@revenant8061 I think their "Machine Learning" algorithm is just a linear regression based on if pillows are returned and customer feedback
@@yiwanye1221 I think so too. Mark was right. Maybe simple linear model will do the pillow recommendation, but they should be using the machine learning for inventory prediction. After all they did mention their margin could go low if they solved the inventory problem
@@revenant8061 No, as per the pitch, their software takes data from consumers. With those data, their software tries to predict the best possible variation of their potentially-preferred pillow. That's not simply data analysis because the blood and veins of data analysis is prediction coming from back-cast data. Whereas machine learning is providing a suggestive prediction based in the current data (customer input), clustered variety (stored data), and machine criterions. By the way, machine criterions produce another variation of criteria only when a current data is not compatible to the clustered variety.
That is not correct. First off, ML (or data analysis or data mining or the now trendy term AI -- all the same thing) generally covers two big groups of algorithms - descriptive and predictive, so prediction is not the sole purpose of ML. Second, their attributing new customers to specific pillows _is_ predictive classification - they don't know which pillow is best for the customer but they predict he'll like this or that based on the data they supply.
Nobody:
Kevin: “Ichy-wawa-karramba”
Hahahaha I laugh at that but every time I watch this video
Seeing the Barbara memes still going strong 😂
Lolll I’m glad
I'm personally tired
Those memes are older than my underwear.
@@tj.espygil4544 there older than Barbara
It's always most appropriate in the presentations where she's not even a shark...then she's REALLY out :-P
got to say, mark and robert always show appreciation the effort for the entrepreneurs..
I get the feeling a lot of people come on the show with ridiculous valuations because they don't want the Sharks to bid on their companies. They want them all to pass on their offers, then they get free advertising for their product. Then in the weeks after their appearance, sales of their product soar. A smart way to get free advertising.
You forget the part where most of the companies don’t have the money for inventory and marketing which is why you never hear from them years later
Another idea would be anchoring. Say 5% so that you can "come up to 10%" and still have it be a good deal for you. Classic negotiating.
But not everyone makes the final cuts for TV
I remember you had to give up very little equity to be on the show to the producer. (like paying a fee to be on the show) but that was early stage of this show. I don't know if they are still doing that.
Not only that, they are also hoping for some other businessman to come and then giving a better deal than these sharks.
The valuation reflects the fact that they mainly wanted the Shark Tank exposure. Their sales will have a major increase with the free exposure. I sense that they feel confident that they can get there on their own, without a shark. They said "We've already done all the hard work" which shows they think that scaling the company will be easier than what's already been done. Maybe it will be. Since they are profitable, they can hire a CEO and have expertise all day every day working on their behalf. Either use the sales bump money or get a non-shark investor or bank loan to acquire the funds for an experienced CEO for $200k per year or $100k per year plus profit sharing. They might also be able to find a mentor through local SBA.
Good expert costs bif money and they are chinese... very sneaky , they will never pay big bucks for an expert. They also needed Roberts contacts, he could help them to sky rocket this comapany. 500k is a good hobby company .
@@alfonsgrizzly5558 Yikes on the racism. Dont be a dick
@@AR-qo4zz dont be a snowflake
They were fools to pass that offer up
Wait, you want them to get a loan to hire someone? No, way dude.
i like how Kevin always comes up with different sounds when a sharky offer is made
06:20
Pluto: “We did all the hard work already.”
Mark: “You actually haven’t…you actually have
kind of dropped the ball…”
Pluto: 👀
They got a great offer, they will live to regret it. Robert was heavily interested and knows how to grow this type of company
Exactly
they just wanted the publicity. i would NEVER pay $95 for a damn pillow. wtf
These people are sharp. Sounds like they knew their bottom line already. They know they don’t need him. I respect that.
@@switchunboxing They wanted free advertising, but I am sure that having Robert on board would be more beneficial for them than just being aired on shark tank
Can't regret something when you are only there for free publicity.
That’s an amazing offer . 400k for 20% and he would invest his time and expertise.. And over pay for his shares.. There is no way it’s a 2 M Company at the current moment..
And he could of helped turn it into 100M or more company
I guess time will tell...but I think the idea will fall flat without proper investment. Their cost of goods was just way off, combined with a nutty valuation (they just hired 2 people to make the pillows? Cmon...that's practically a family home business).
they're crushing it
he could help turn it into $100m company? come on dude
They must have some other investors, they only had 400k in sales so asking for 20x sales lol... Insane. Roberts 2M is 5x sales and 10x earnings for a startup is super fair. They prob didn't want to dilute other investors or will just get a bank loan at low interest
Why is it insane? Tesla has a price to earnings ratio of 330 to 1. They are making a few billion in profit every quarter but have a trillion dollar valuation. Growth.
@@wittenberg5 Because a company like Tesla is the future of the automobile industry. They wiill be minting money once countries around the world commit to greener fuel sources. If this pillow company takes off, from a technology perspective, any other developers can build an algorithm of their own to sell pillows.
Exactly... Tsla revenue is 47B TTM so 1T cap is 20x sales. World changing Tsla is 18 years old, pillow company 3yrs old. These guys are pricing a pillow company like its Tesla lol. And i like the business too but cmon lol
20 x sales... nad such a low margin + (it should be minus) 18 bucks for shipping and there is nothing new about those pillows,similar can be found at thousends of shops, IKEA, Wall Mart, Bed and Byond and biggest problem is that you can not touch those pillows. I would never buy a pillow at the internet. I must feel pillows.
I forgot that those pillows cost 95 bucks... haha, it must be with happy ending included. This is not rocket sience. 95 bucks + 18 shipping , crazy bussiness model.
so grateful for these successful business experts in the comment section telling us what these entrepreneurs should have done
Let's be real. The algorithm talk was plain bs. They only have 35 combinations of pillows. And they claim their return percent is like 4% less? That's nothing.
Uh I’m not an expert at this stuff but I do gotta say tho, those guys most likely just came there for the exposure and weren’t interested with working with the sharks, even when she didn’t get a deal she walked out of that door smiling like she won the lottery
I’m a developer, that algorithm 1.5 data points is BS. The questions will be answered and it will always point out to a certain path. Cuban called them out on it, IT IS A LINEAR PATH, there’s no machine learning implemented and they tried to lie about it.
That girl had a big smile every time a shark went out. And when Robert said “you sold me,” she seemed concerned.
Since their appearance on “Shark Tank,” they’ve experienced significant growth and are now valued at around $13 million. They generate approximately $5 million in annual revenue.
They should have said, "We will do it at 10% and we'll provide you with all the pillows you would ever need to sleep at night."
Their evaluation was insane and their negation skills were poor. They could’ve easily walked away with 400k for 15 % if they were smart
Exactly what I was thinking. They didn’t even try to back up that evaluation which makes me think they were going for the free exposure. And if they got a shark at their price then that would be a nice plus
Presumably they're smart enough to know the differences between evaluation, valuation, negotiation and negation.
@@prime8nate it’s UA-cam comments. Typos happen. Presumably you’d be smart enough to read between the lines
@@pokerbuddy62 presumably…
they didnt want a deal.
I loved the feedback. those contestants are more excited about their success and product than they are efficient business modeling. theyre so young too so it makes sense, these judges are really passing on experience and wisdom. I hope they realized that.
Robert's valuation is $2 million which is actually very generous when you compare it to their sales. Robert was also open to putting in more money. They are too greedy and missed a great offer because they weren't ready and thought their system alone was worth millions as is. Custom mattresses and pillows aren't new. Any major company that wants to change its customization feature slightly could bury them easily.
Ok but their net worth is 8 million
@@sylviajacobs31 lol no
@@whyisblue923taken lol yes look it up September 2021 that is their net worth
He likely would have done it for 15%, and 400k is a lot of cash.
@@mtngrl5859 they also have other investors take that i to account
I’m surprised the sharks didn’t get more shocked by their valuation!!
Mark seems like the nicest bloke, very intelligent and such a gentleman.
Robert should have said: 400K for 20%, with an option to buy back 10% of your equity, for 2x valuation. Meaning if they pay Robert back 400K Robert is left with 10% and they get their 10% back.
lmfao you been watching too much shark tank LOOOOOOOL
@@bellanamii 😂
Sharky deal I like
Same thoughts
@@bellanamii LMAO
When Suzanne mentioned the neck to shoulder end ratio you know things have been thought through regarding comfort in design.
I ordered a pillow with this company couple of months ago. They allow you to send the pillow back and adjust it as often as you need. It's a very nice pillow, but my neck is incredibly picky so wasn't for me.
You say it’s a nice pillow but not for you lol. That’s like saying it’s junk I know someone who bought one they returned the junk
@@mrperfecttt001007 one is capable of acknowledging when something is of good quality and build, but isn’t their preference. Jennifer Aniston is not beautiful to me, but I know she is beautiful to others - I don’t go around saying she’s ugly just because I personally don’t prefer her look. Same for this pillow.
@@UdoADHD How do you know others like this pillow?
@@revenant8061 because others have said they like it…
So it's not any more convenient than going to the department store. I'll pass.
"This company has $100 trillion in the bank and sees that money increased by 20% every day, at no effort at all. There is literally no risk and..."
Barbara: "Can't do it, guys, I'm out."
?
Entrepreneur: my business is this amazing idea that will allow people getting out
Barbara: love it, finally an idea that is for me, and for that reason I'm out
The difference between "Obstacle and an Opportunity is our attitude towards it.
Every Opportunity has a difficulty, and every difficulty has an Opportunity.
Life Opens up Opportunities to you, and you either take them or stay afraid of taking them.
If you refuse to embrace a unique opportunity, you loose the prize as surely as if you had tried and failed.
*After* *having* *some* *doubts* *and* *anxiety,* *I* *feel* *so* *ecstatic* *now* *on* *my* *first* *profit* *withdrawal* *of* *$16,200* *from* *my* *$3,400* *investment.*
If i was wise enough to doubt Mr. Adam and avoid becoming another fraud victim i would be the most foolish at this moment, i felt guilt and happiness when i got my first payment,
I owe this great Man my life savings..
Thank you very much Mr. Adam 🙏🙏
please how do I contact expert Adam?
Barbara : You didn't make a pillow for me, and for that reason, i'm out
I love pillows but I’m not spending $95 for one i’ll wait on Macy’s when it’s on sale I’ll get it for like $25 $30 dollars
That just means you're poor like the rest of us
@@harrypot3381 😂 there’s 5 of us I got 3 kids $95 x 5 = $475 for pillows I’ll pass
@@Showstopper108 touche 😅
I still like the $5 Walmart pillows. My neck is fine :p
@@Showstopper108 Like Kevin would say, you can either buy them pillows or put them through college.
I really hope that this 20x revenue valuation bull shit stops . Seriously, it’s a pillow company , saying “data points” doesn’t make u a tech firm .
Exactly. The algorithm is linear, as Mark said. It's just adjusting the data points to get slightly more accuracy. They need sales and high volume to figure out how to decrease costs, as Robert said.
Barbara: "I already own a pillow so for that reason, I'm out."
Daymon: I had a dream that they will come with a normal valuation.
Just bought a $5 pillow from Bed Bath Beyond and it's perfect. He said "Those really cool boxes" are the pillows shipped in tempreture control box?
should have went for 15% at 400k, and if not then walk. either way u would have to walk cause they wouldnt go to 15%.
They weren't serious. They value themselves at $8 million when they're not worth anywhere near that much. Mark and the other guy were the only ones to point out the algorithm isn't what they think it's worth.
They should've at least tried asking for 15%
@@aircom3073 Rob would never drop to 15%.... His made his money from nickle and diming desperate entrepreneurs. He also never gives what the entrepreneurs what there looking for, and nearly never drops even 1% from his offer. He attacks when the other sharks are out, and when they jump in. He gets angry and crys to the entrepreneurs for listening to other sharks. These Entrepreneurs were stupid, Rob brings nothing to the table, if this was Mark or Lori, they would of asked about 15%, they just didnt care about Rob to negotiate to 15%, in the odd case he takes it. than there stuck with a shark that brings nothing....
3:25 Mark coolin bruh. 😂😂😂💀
Insanely high valuation!
Kevin has become nice? He didn't roast them XD
How their net worth is 8 million
did some research, they are now worth around 8m as of mid 2021, so safe to say they actually are doing fine.
They will go out of business soon wait and see
Imagine if they had Robert on their team…
Fake
Where did you see that?
I'm normally quite down on the sharks' offers believing they are low-balling. These guys came in very aggressively with a $400k valuation for 5% with good but still modest sales volumes. Robert's offer for a $2M valuation is on the higher side of most shark offers on this show. I don't think these two came in looking for a deal to be honest.
They didn’t. They’re dishonest scumbags
While the sharks may give offers that are less, they have the ability to blow up the product. The real issue is the entrepreneurs are realizing they don’t need them and just being on the show is going to blow them up. What I think they fail to realize is that only for a blip in time, and a deal with the shark is forever and a shark can mention the product for years to come.
You can tell right away they just wanted exposure. Lol
they are just there for the exposure
Totally agree when they were making 3x year in year they never came in for an investment they came in to get eyeballs and if by any chance they got the offer between 5 to 10% it would just have been a benefit to then but even then I think after the show they would have walked away
@@jonnyclarke2400 How you know they're Chinese? Please answer with an educated manner not ignorant.
How are they there just for exposure when 4 sharks went out without making any deals
@@purpstatus no they don’t, that a legal battle waiting to happen and mark cuban saw it. He refused to come back until they stopped doing that.
I doubt it. Robert's offer valued their company at a quarter of what they asked. They halved their value to try to strike a deal and Robert still didn't bite.
8:57 when you hit your toe on the coffee table
This valuation was insane! These two fell too much for their own publicity! Frankly I was shocked that he´d even value this business at that level.
might wanna revisit your comment
@@awc723 why?
2:51 when the sloppy toppy is out of this world🤤😩😮🤯
They should've made a machine learning algorithm that would tell them if and when their business would be cash flow positive.
that entry music is just..too good, welldone, whoever made it.
I feel that before Robert's offer, no one wanted them at all. No sharks asked about their debt, other investors, their prices compared to their competitors, and their percentage on the market. They were really lucky to get an offer from Robert.
That company was not worth 8 million. You're not worth 8 million when your annual turnover is under 500k, period
I believe those were their sales, so they only made a quarter of a million in their most profitable year from the three years they've been in business.
That is their net worth. Their net worth is 8 million
Barbara: I just bought new pillows and for that reason I’m out
😭😭😭
Their problem was they didn't know what they didn't know. If they did and they recognized how it was going as sharks dropped out, they could've come back by saying, "Robert, as you were making your offer, I was considering offering you 10% for the same amount, so would you consider $500000 for 15%?" Maybe that would have been close enough to set up something like where they're also paying interest on it a la Kevin's offers.
20% was a no brainer.
Its attempted robbery lol their met worth is 8 million
@@sylviajacobs31 no it’s not
Get me a comfortable pillow and imitates a cat purring and I’ll be in.
I thought the evaluation was high, the market is very competitive and scaling will be a hassle unless the goal is to exit to a bigger company, Roberts deal actually wasn’t too bad.
8 million net worth
Every time I watch shark tank I find something I don’t need but at the same time need and somehow every thing I want is sleep related
Average consumer doesn't really know how to answer the online questionnaires correctly. They might think it's medium or soft but it's hard to get it correct because it's relative to what they think soft/medium/firm feels. Return rate MIGHT be low but in that price point most people will go on to the next product and not fight the back and forth to get it correct.
There are also restocking fees in online only businesses. Maybe even no free return shipping too. You pay $100 for a pillow and you decide you don't want it but then you see it's $12 to ship back and they will refund $85 for it, and you decide maybe you'll keep the custom pillow after all rather than lose $27 and some time.
I do agree lol
Getting a Shark is a life hedge
You make slightly less when you kill it, but you don’t fail as often
Another pillow company... They're not smart for refusing the offer. They overvalued their business anyway. Investors today, don't pay for tomorrow's valuation... Otherwise they would have no reason to invest.
Investors pay for tomorrow's revenue all the time, google price to earnings ratio. In fact that is how a valuation is done, you discount expected earnings back to the present.
@@wittenberg5 of course you pay for tomorrows revenue, but the riskiness of those expected cash flows have to be taken into account. Investors pay for those cash flows at their current risk levels, not hypothetical future risk levels. They overvalued this business
It's overvalued and the product is overpriced too
Heard about Tesla and it's evaluation?
@@AbdulRaheem-so2xf Tesla, although, has a competitive market is stronghold. Everyone will buy cars and would want something from a variety of choices. Pillows, on the other hand, you can just find it anywhere meaning tons of competition with lower chances of getting high valued.
i just ordered one for myself, took a couple minutes is all. Can't wait to get this. Thanks and good luck to you both.
Post again when you receive and try it, please.
how is it?
We are waiting for your answer
@@harrywang6792 got mine and is amazing
@@michelemoneywell8765 the pillow is amazing
This is the BEST pillow i ever tried and trust me i tried countless pillows and none of them work as best as these pillows
Rubbish. See my other comment.
Did he say “It’s aggressive but your ass was very aggressive” at 9:01? 😂
ask 🤣
@@sai994oer LMAOOO turn on the captions!!!
“I wasn’t even in this episode, so for that reason I’m out”
-Barbara
These guys are tripping, 400k for 20%, is amazing
The guy was really like wtf at the end 😂
Robert gave an amazing offer, I wish Pluto success!
what! they didn't even come their to sell their company it was just for free advertising
@@intelcore5409 If they only wanted advertising they wouldn't have dropped their valuation. They had other investors and giving Robert such an offer would have angered a lot of their investors and it could have affected their ability to raise money in future. Thankfully they saw it was a bad deal and pulled out.
Lmao Kevin is too funny 😂
Why didn’t anyone suggest 15%?
because they were there for free exposure, never to really aim for any offer over 10%
Exactly
Mark is like, am out but am keeping the pillow.
It’s too expensive and the market is too saturated. I could spend the same money at one of the top tier pillow manufacturers get four different pillows and in all likelihood have one that works.
Did your hear their numbers it cost about $48 not including their packaging. Thats for the cost plus shipping.
I ordered their KING SIZE pillow and it was nice, but my description during the online information on Pluto, I didn't account for my wide shoulders. I got in touch with Pluto customer service and they IMMEDIATELY got back in touch with me; both via text message and email. They gave me a couple options to try and they sent me an inner core to make my pillow thicker. It worked like a charm! It is absolutely perfect! The pillow is worth the investment and their customer service is seriously the best I have ever dealt with from a company.
I HIGHLY recommend this pillow and this business. Overly impressed for sure!!! 🛏️😴
Their crazy , he wanted 20% and willing to go slightly lower they were willing to part with 10% , Counter offer 15% doesn’t sound bad they didn’t even ask .
If someone from India is watching this, the TVF series "Pitchers" had a similar idea in it where the guy was pitching "Flipkart but only for Pillows" as a parody.
Tricky part is that 400k is not just about the valuation of the company but what else Robert could bring to them. If Robert can help grow this company to 20-30mil in a year or two, then losing 20% is worth it
Great presentation
Wow, I just found out Pluto was on Shark Tank in October 2020. I have been using the same Pluto pillow exclusively since April 2020 - almost 2 full years! - and it's by far my favorite pillow. And I take pillows seriously - I've spent thousands of dollars in the last 5 years searching for the perfect one, and have tried nearly 30 different pillows... lol.
you’ve spent THOUSANDS of dollars on only 30 different pillows?
Nobody :
Literally nobody :
Kevin : icchiwawakaramba
Who actually spends THAT MUCH time thinking about a pillow???? 🤔🤔🤔🤔🤔🤔🤔
Me
Me
@@sylviajacobs31 you can literally find your own pill preference and buy one for 1/3 of the price. These pillows are now thing more than for fun of answering questions.
@@blowc1612 these pillows are really nice and goodfor the price
That girl spoke with all th determination she can get in the world saying the numbers
Can someone explain why it's worth 8m. Sounds like they didn't want a deal at the start
It may have been their bargaining strategy, look up anchoring bias. They were probably looking for 400k at 10% to deal
@@droicut ok, now tell me, why are they worth 4m!! 😅🤦♂️🤷♂️
i agree why would they ask for only 5 percent like they are bigshots then counter not even 10 percent offered just 9 not even double
Exactly. If they were looking for a real offer, they would have started at $400,000 for 15% and negotiated there.
@@tsooraz_jr I have no clue, I'm just saying what I believe are their intentions or strategy. Even the 9% counter seems to suggest that they wanted to give up that amount of equity, perhaps forcing Robert to accept a 10% (nice whole number). Obviously the sharks thought otherwise, and the entrepreneurs played their cards wrong.
They are like most other companies in the shark tank, coming in with ridiculous asks forcing the shark to ask for way more equity than they are ready to give up.
I'm old and have always been wanting for a decent cluster of supportive yet soft, firm yet comforting pillows.
I found absolutely perfect pillows on Amazon last year, I'm ashamed to say as I hate contributing, but alas, they are perfect.
I think that something like this is SO personalized, you have to assume that you can't really market to everyone. There's nothing about a pillow
that would make me change mine, for instance.
Everyone wants to value their company like it's a silicon valley start-up
They valued their company at 8 million because thats what it literally is if you look it up their net worth is 8 million
9:00 Sounds like he said "Your Ass Was Very Aggressive". LOL
I hate business owners like them “I feel like we are worth way more” okay good that you have feelings but in reality with your numbers being at 400K and your bringing in about half of that so 200k even if they do grow at the rate they say they do not worth anywhere near 8M…
But Robert said they are worth 1/4
@@bethankfultohaveinternet3292 I can live with a 2 million dollar valuation taking into consideration their patent but a 8 million is insane
actually, if you do a 5 years DCF and EV valuation, they are worth around that number...
@@ItsKristiannn 8 million... chinese think he sold for 500k and soon he will sell for 5 and 10 millions, but that is a different ball game. You need to gave good customer service, order those pillow just in time to not have a big stock and hundreds other problems.
Because they are their net worth is 8 million
Great Video Man. Great Work.
I always think the reason you go to Shark Tank is to reel in a Shark. Regardless of the equity, having a Shark in your biz opens a lot of possibilities for other biz opprtunities. So i hate it when people pass on that opportunity.
8:56 ichi wo co rumbbbba 🤣🤣🤣 mr. Wonderful knows his chinese very well 💀💀
$95 for a pillow you get them from Walmart for five bucks lol😂
A bad Walmart pillow
@@peauntbutterxboy93 you are right I buy one every 6 mouths lol
Not really
$95 is sooo much.
But you cannot compare $5 walmart pillows!
@@joelkoo2550 then it ain’t for you. But those five dollar Walmart pillows ain’t nothing compared to Pluto pillows. I hope you know that there are no bad reviews on the product, the only thing that people complain about in this comment section is the price. But not one person has said that it wasn’t worth the price when they bought it. But that doesn’t mean it’s not a good product with it being $95. It includes shipping so it’s free, and they pay a lot and they’re shipping like 12$and then it takes to make the product is like $45, I don’t know how much they spend on packing the product but that’s probably about $55
One more thing, this business would have no repeat customers, their algo (which they are clearly overvaluing) will select a pillow and case and send to customer. Now the customer knows what type of pillow and case to buy for a their best comfort they'll never overpay again for a *jigsaw* solution
Does Mark have beef with Robert or what? I feel like every time Robert tries to negotiate a deal, Mark chimes in on the companies side.
Yeah, they often seem to compete with each other. On one clip Robert even called Mark arrogant, not letting the people give their sales pitch, sticking his nose in and taking all the attention.
Barbara "Pluto is outer space for those reasons i'm out"
I'm surprised Kevin didn't ask for $8 a pillow royalty in perpetuity.
Who caught themselves saying “don’t do it” to the deal they were offered. This will blow up and they will find other successful investors down the road.
If mark knows all of this they will go through, he should show his worth and make an offer
Whats in it for him? 5% isnt worth anything
.....That makes no sense.
@@Hotobu more sense than your comment
@@hajimesaito4997 if not much work, then less money is needed. Money incoming is still money
@@tpl608 Ok, so let me tell you why what you said is stupid.
Mark: Your data isn't anywhere near where it needs to be, your valuation is out of whack, your vision isn't what it needs to be to succeed, you're going in the wrong direction
You: If mark knows all of this they will go through, he should show his worth and make an offer
Why would he *pay them* to be their mentor in a company he doesn't believe in? That makes no damned sense.