The Original Stretchlace Elastic Shoe Laces
DEAL
EPISODE SUMMARY
🕓 Air Date: May 14, 2021
Asking For:
$100,000 for 15%
Investor:
Robert Herjavec
Deal:
$100,000 for 30%
PRODUCT SUMMARY
The Original Stretchlace is a stretchy lace that transforms tie shoes into slip-ons, enhancing fit, function, and fashion.
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Background Story
Jamie and David Montz, a husband-and-wife team from Boise, Idaho, created The Original Stretchlace to address the daily hassle of tying shoes for their three children. Jamie, with over 20 years of e-commerce experience, recognized a gap in the market for a practical, durable, and easy-to-use shoelace solution.
Frustrated with existing options that involved locks or clips that could be easily broken or lost by active kids, Jamie decided to develop stretchy laces that could be tied like regular laces but allowed for effortless slip-on functionality.
The Product
The Original Stretchlace is a stretchable shoelace made from a unique material that combines comfort and functionality. The key benefit is that these laces are stretchy, allowing the wearer to easily slip their shoes on and off without the need for constant tying and untying.
The product’s features include a slight texture to keep the shoelaces securely tied while providing a comfortable grip on the feet. The laces are durable, making them suitable for active individuals, including children. They are available in various colors and are compatible with a wide range of shoe types and sizes.
Customers can purchase The Original Stretchlace online through the largest e-tailer, Amazon, and the company’s website, where prices range from $9.99 to $13.99, offering a substantial profit margin. The laces are also competitively priced to appeal to a broad consumer base.
How It Went
The company’s position before Shark Tank
The Original Stretchlace had a promising start, with sales reaching $221,000 in the previous year. However, their revenue for the current year had dipped to $165,000 due to disruptions caused by the COVID-19 pandemic. The company primarily relies on online sales through Amazon and its website, with a deliberate focus on the e-commerce market. They have not pursued retail distribution.
Jamie Montz, with her extensive background in e-commerce, had managed a $35 million Amazon business in the health and beauty category for her previous employer. Despite facing challenges, they managed to secure a significant market share on Amazon, competing successfully against established brands.
The company’s funding primarily comes from its founders, and they have not mentioned any external investors or partners. Although they had seen a decrease in revenue, they were confident in the product’s potential and their ability to grow it further. The company is structured as a family-run business, with Jamie and David Montz as the sole proprietors.
The Negotiations:
The Sharks were initially skeptical about investing in a shoelace business, with Kevin O’Leary humorously referring to them as “shoelace cockroaches.” One by one, the Sharks dropped out of the deal, citing concerns about the product’s scalability and the founders’ ability to expand beyond shoelaces.
However, Robert Herjavec had a change of heart and made an offer of $100,000 for 33% equity, seeing untapped potential in Jamie as an entrepreneur. After some negotiation, they settled on a deal for $100,000 for 30% equity, with Robert Herjavec as their partner. Jamie and David were initially hesitant but ultimately accepted the offer, expressing excitement about working with Robert and expanding their business.
