Extreme Sandbox – Heavy Equipment Adventures
DEAL
EPISODE SUMMARY
🕓 Air Date: January 5, 2016
Asking For:
$150,000 for 15%
Investor:
Kevin O'Leary, Mark Cuban (50/50)
Deal:
$150,000 for 20%
PRODUCT SUMMARY
Extreme Sandbox is a heavy-equipment adventure company that offers clients a unique and exhilarating experience of playing on construction equipment in a supersized 10-acre sandbox.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Randy Stenger, the founder and CEO of Extreme Sandbox, hails from Hastings, Minnesota. A former police officer in Colorado, Randy wanted a more stable career for his growing family and moved back to the Midwest. Inspired by the fond memories of playing in a sandbox during childhood, Randy created Extreme Sandbox, a company that allows customers to operate heavy construction equipment for fun.
The company started small, leasing 10 acres of land and construction equipment to test the concept. As the business gained traction, Randy bought the land and expanded the facility. Despite having no background in construction, Randy aimed to redefine entertainment experiences and turn each location into a million-dollar venture.
The Product
Extreme Sandbox offers a once-in-a-lifetime experience for customers to operate heavy construction equipment, including excavators and bulldozers, in a 10-acre sandbox. The Destruction Zone allows participants to crush cars for an added adrenaline rush.
The average cost for this unique adventure is around $300, with car crushing priced at $400. The company, which leases all its equipment, has seen a steady increase in sales over the years, reaching $1 million in three years.
The goal is to make every location a million-dollar venture, and Randy envisions expanding to multiple metro areas across the U.S. The business model focuses on centralized front-end processes, enabling efficient management of reservations, client calls, and social media from the Twin Cities for multiple locations.
How It Went
The company’s position before Shark Tank
Extreme Sandbox has experienced steady growth, starting with $140,000 in sales during its first part-time year, followed by $280,000 in the first full-time year and $400,000 the subsequent year. The current year is on track to exceed $500,000 in sales. Despite being located in Hastings, Minnesota, considered by some as the middle of nowhere, the company has found success.
The challenge initially was finding a suitable site, but Randy leased land to test the concept before eventually purchasing it. The startup costs were kept low as equipment was leased, allowing for a scalable and flexible business model. The plan is to use the $150,000 investment to accelerate growth, and open new locations, with Dallas being a potential market. Extreme Sandbox aims to centralize front-end processes to streamline operations for multiple locations.
The Negotiations:
The Sharks were intrigued by the unique concept of Extreme Sandbox. Lori Greiner and Daymond John both expressed interest in the idea but eventually opted out, citing concerns about scalability and the inability to add significant value. Mark Cuban, impressed by the concept’s appeal and having land available, made an offer of $150,000 for 20%. Kevin O’Leary, seeing potential and desiring to be a part of the heavy-equipment space, joined Mark’s offer.
Robert Herjavec, on the other hand, expressed concerns about the business model and scalability and decided not to invest. The founder accepted Kevin and Mark’s offer and the deal was made at $150,000 for a combined 20%. The negotiation highlighted the Sharks’ varied perspectives on the business, with Mark and Kevin seeing the potential for growth and fun.
