Miles Penn pitches MTailor in Shark Tank Season 7 and uses the MTailor app on your phone to measure you with a picture.
MTailor has tucked and untucked options that you won't find on a FUBU shirt in stores. Daymond didn't like that answer.
MTailor shirt measurements are 20% more accurate
Miles demonstrates MTailor in front of the Sharks which is 20% more accurate than a custom measurement in person.
They can sell their shirts for less because they cut out the time of an in-person measurement, they can sell a shirt costing $125, for $69.
There are over 14 measurements for each shirt. There net return including remakes is fifteen percent and a typical online store twenty-five to thirty percent return.
Miles says he will discuss valuation if that is where the Sharks want to go. They will do $1.1 million on a projected $2.5 million because of supply chain problems that they need to correct. They have $1.4 million in the bank currently.
Their pricing is the same as it was when it was two shirts a day and they are now selling thousands of shirts.
Daymond could help him individually to solve his supply chain.
The Sharks think he needs to start his valuation at ten million dollar valuation instead of twenty-five million. He raised last at ten million dollars.
Entrepreneur: Miles Penn
Ask: $2,500,000 for 10% equity
Companies in this episode: SmartPlate, Bee Free Honee, Float Baby
Season: Season 7 Episode 717
Sharks: Mark Cuban, Daymond John, Kevin O'Leary, Barbara Corcoran, Chris Sacca
First Aired: 02/12/2016
Deal: No Deal despite all kinds of offers for an arrogant entrepreneur.
What do the Shark Tank Investors say about MTailor
Mark Cuban has a problem with his arrogance because he is the one that has to go to China, and he doesn't have the skillset yet to accelerate this. He is out.
Daymond John offers $2.5 million for 17.5%, and he wants to license the app. Daymond doesn't like the guy, but he loves the company. Miles counters for $2.5 million for 11.11% equity. Daymond pushes the objective to license it, and Miles tells Daymond that he can find a similar software.
Kevin O'Leary said he is interested in him, but he doesn't want him to go to China. He wants to give him $2.5 million in debt for 7.5% interest over 36 months and 2.5% equity. He turns down Kevin's offer because he wants only equity partners.
Barbara Corcoran thinks Miles has no shame factor and for that reason alone he is out. Miles came back and said he couldn't please everyone.
Chris Sacca believes he needs to license the technology instead of becoming a clothing company, and he is having problems with the retail side. Chris asks if his current investors are willing to invest at twenty-five million, or is he trying to take advantage of the Sharks? Chris can't pay for a perfect price for a company that is not perfect; he is out.
MTailor after Shark Tank
Miles Penn is getting all kinds of press for his Arrogance, and for his application. The company is continuing to operate as a custom online clothier today.