Investivate
Share this

Basic Outfitters Shark Tank Pitch by Michael and Laura Dweck

Basic Outfitters offers a solution for men looking to refill their underwear drawer in a cheap, quick, and efficient way. With a profit after 10 months and a high-quality product, this seems like a dream investment. But will the sharks take the bait for $125,000 for 10% stake, or will there be any set backs in this deal?

Basic Outfitters Shark Tank

photo credit: ABC/Michael Desmond

The Story

Lauren and Michael Dweck are a couple from New York City and the founders of basic Outfitters, currently seeking an investment of $125,000 in exchange for 10% of their company.

They first had the idea for this business when Lauren and Michael got married. Looking to free some space in their apartment, Lauren challenged Michael to throw out anything that he hadn’t worn in the last 3 months. He just wanted a quick and easy way to refill his drawers. Without having to spend a lot of money. After seeing this need in the market, they came up with a solution: Basic Outfitters.

What is Basic Outfitters? It‘s an online destination where men can refill their drawers with high-quality basics at affordable prices. You can choose up to 10 pairs of socks, 3 pairs of underwear, 3 undershirts, and a pair of jogger sweatpants for just $60! And there’s no need for a subscription, all you have to do is go online and find the pack that best fits you and your style.

What is Basic Outfitters? It‘s an online destination where men can refill their drawers with high-quality basics at affordable prices. You can choose up to 10 pairs of socks, 3 pairs of underwear, 3 undershirts, and a pair of jogger sweatpants for just $60! And there’s no need for a subscription, all you have to do is go online and find the pack that best fits you and your style.

After doing some market research, they figured out what was that sweet spot price that would wow customers: sixty dollars for 17 items. From then on, they ended up working with a buying agency, which found right factory for the job. While the price per drawer is just $60, the production cost is on average $25.95.

After just 10 months in business, the company has made $351,000 and is estimated to make about $500,000 in sales by the end of their first year. On top of that, they also currently have $397,000 in inventory.

The young couple has personally invested $250,000 of into the business and $750,000 in capital from outside investors who really loved the idea.

The downside to Basic Outfitters? Although Michael and Lauren just started the business 10 months ago, they have already sold the majority of the company to outside investors and currently have only 25% stake in the company.

The Shark’s offers

After hearing the low equity the couple currently has, Mark, Robert, and Daymond quickly backed out of the deal.

Mark was the first shark to back out of the deal, claiming that although “the vision is good, the product is good, the execution is ridiculous. Worst I’ve ever seen”

Robert was the second shark to decline a chance of investment, using the same logic. As the entrepreneurs own only 25% of the company, the company isn’t really theirs to sell.

Daymond was also amazed by the low equity and therefore felt like there was no place for him and his expertise in this company.

After a wave of “Nos”, it was time for Mr. Wonderful to make his proposal: $125,000 for 25% of the company, as long as that equity would be taken from the other outside investors. Seeing a good opportunity, Lori copied Kevin’s proposal with the same contingency.

The entrepreneurs tried to reduce the amount of equity sold to 15%, which was enough for Kevin to drop out of the deal.

After a long battle with Lori where equity and propriety were discussed, Lori also backed out.

Although the product was excellently made and the idea was great, the young couple was trying to sell equity that didn’t even belong to them, and therefore, no deal could be made. Unfortunately, it was just too late and too damage done for the sharks to invest in this deal.

What happened to Basic Outfitters after Shark Tank?

After one of the most heated negotiations in “Shark Tank” history, we are happy to see Basic Outfitters is thriving. In fact, they have just made the Forbes 30 Under 30 Class of 2017. You can find out more about the company by visiting their website www.basicoutfitters.com or following them on social media.

Quick Summary

Season: 8

Episode: 12

Original Air Date: January 6, 2017

Entrepreneurs: Michael and Laura Dweck

Company/Product: Basic Outfitters

Proposal: $125,000 for 10% stake

Success: NO

Investor: NA

Final Deal: NA

About the Author Investivate.com

At Investivate.com, we cover a wide range of topics including business, finance, entrepreneurship, success, personal development and much much more. If these are the areas of your expertise and you'd like to share your knowledge with our readers, feel free to contact us today for content contribution opportunities.

follow me on:
Shares