Basic Outfitters Shark Tank Pitch

Basic Outfitters founders Laura and Micheal Dweck tell the Sharks that men keep their underwear seven years on average. Laura would not put up with Micheal's underwear and socks so she disposed of them. Micheal wanted a solution to get high quality underwear and socks at an affordable price. They have packaged ten pairs of socks, three pairs of underwear,  three pairs of undershirts, and jogger sweat pants for $60. That is 17 basic items.

Lori thinks that their stuff is the softest sock she has ever felt, and Daymond comments on the quality being really good for Basic Outfitters.

The average cost is $25.90 to make a drawer and estimating $500,000 for the the year. They generated $350,000 in the first 10 months and have $395,000 inventory. They raised $795,000 in capital and retain only 25% equity in this company.

 

Basic Outfitters Episode Data

 

What do the Shark Tank Investors say about Basic Outfitters?

  • Mark Cuban – says market research is never right, and Micheal says they were spot on because they wanted to have inventory. Mark is out because the vision is good, the product is good, and the execution is horrible. They have the worst ever capital management and he feels bad for them.
  • Daymond John – though this is going to be a great deal, and wanted to put product in the box, but because you don't own anything, I am out.
  • Kevin O'Leary – offers $125,000 for a 25% stake, contingent on the equity coming from the other investors. Kevin realizes listening to her that she cannot make this deal. He is out.
  • Lori Greiner – loves to copy Mr. Wonderful and she offers the same offer. Laura counters, asking them to come down to 15%. Lori says she will go 20% with the investors blessing to do the deal with Lori. Laura tries to get Lori to come down, but Lori goes out.
  • Robert Herjavec – says great business, great idea, but I'm not talking to the owner, I'm talking to the hired help. I'm out.

 

Basic Outfitters after Shark Tank

Laura and Micheal did not get a deal on Shark Tank, but they watched their sales skyrocket by 1,000 percent month over month. They have a great concept, and it works, but I agree with the Sharks, they gave up way too much equity, and are missing an even bigger boat.