Terra-Core – Home Gym Equipment
DEAL
EPISODE SUMMARY
🕓 Air Date: November 17, 2019
Asking For:
$300,000 for 15%
Investor:
Lori Greiner
Deal:
$300,000 for %
PRODUCT SUMMARY
Terra-Core is a versatile fitness equipment with a patented air-filled surface designed for a wide range of exercises, providing a fun and effective workout experience.
WATCH HERE
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Background Story
Greg Nigro, known humorously as the “Sultan of Sweat,” presented Terra-Core Fitness on Shark Tank. He highlighted the evolving fitness trends and the demand for interactive, versatile, and easy-to-use equipment. Greg, with 20 years in the fitness industry, was the former vice president of franchising for Gold’s Gym. The Terra-Core journey began in 2016 with a Kickstarter campaign, followed by product sales in 2017, accumulating $2.1 million in lifetime sales by the time of the pitch.
The Product
The Terra-Core is a compact, 28-pound fitness tool, measuring 46 inches, featuring a patented dynamic air-filled surface. This surface is comfortable, reactive, and activates four times the muscle tissue. Demonstrated exercises included bench presses, squats, balance exercises, and agility training.
The product’s versatility extends to both commercial and consumer markets, offering gyms and individuals an engaging and effective workout. Flip the Terra-Core over, and it becomes a platform for various push, pull, and rotational movements, enhancing its utility.
How It Went
The company’s position before Shark Tank
Terra-Core Fitness had achieved lifetime sales of $2.1 million, with a significant portion coming from a Kickstarter campaign that raised $95,000. Their sales distribution included 38% in the commercial market, 38% direct-to-consumer, and the remainder in international and domestic distribution.
The cost structure involved selling the product at $279, with a manufacturing cost of $73, including tariffs. Facing inventory challenges due to limited cash flow, the company was projected to break even in the current year with $850,000 in sales and aimed for a $1.4 million revenue in the following year.
The Negotiations:
The negotiation phase saw offers from multiple sharks. Lori Greiner ultimately secured a deal with Greg, offering $300,000 for 22.5% equity. Initially seeking 15%, Greg adjusted his terms during negotiations. Other offers included Daymond John’s $300,000 for 40%, Kevin O’Leary’s $300,000 for 15% with a $20 per unit royalty until hitting $1 million, and Anne Wojcicki’s $300,000 for 17% with a $10 per unit royalty in perpetuity.
Lori’s offer, while higher in equity, lacked a royalty component, making it an attractive proposition for Greg. He accepted Lori’s deal, expressing excitement about the partnership and the potential for growth with her guidance.
