Firefighter Turnout Bags
DEAL
EPISODE SUMMARY
🕓 Air Date: February 10, 2017
Asking For:
$250,000 for 33%
Investor:
Lori Greiner
Deal:
$250,000 for 50%
PRODUCT SUMMARY
The Fire Fighter Turn-Out Bags repurpose retired firefighter gear into a diverse range of stylish bags, offering a unique and authentic connection to the firefighting profession.
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Background Story
Niki Rasor and Matt Rasor, the founders of Fire Fighter Turn-Out Bags, bring a compelling background to their venture. Niki, a seasoned firefighter with 13 years of experience, wears turnout gear on every shift to shield herself from the hazards of her profession. The genesis of the Fire Fighter Turn-Out Bags can be traced back to the unique challenge posed by the disposal of old firefighting gear. The idea took shape when Matt, Niki’s partner, brought home his turnout coat and requested Niki to repurpose it by removing a pocket.
Intrigued by the concept, Niki crafted a stylish bag from the pocket, a creation that instantly garnered attention whenever she carried it. This spark of innovation led to the birth of Fire Fighter Turn-Out Bags. The couple recognized the broader issue facing fire departments — the dilemma of dealing with a surplus of old gear that couldn’t simply be discarded. Operating from their basement, the initial stages of the business proved challenging for Niki and Matt. Attempting to scale up, they faced obstacles in managing manufacturing processes and navigating the complexities of running a business.
Despite initial setbacks and a move away from a factory setting, their commitment to repurposing firefighting gear into fashionable bags persisted.The company’s location, rooted in the Rasors’ basement, symbolizes the grassroots origins of their venture. Niki’s firsthand experience as a firefighter infuses authenticity into the brand, resonating with customers who appreciate the genuine connection to the firefighting profession.
The Product
Fire Fighter Turn-Out Bags ingeniously repurpose retired firefighter gear into a diverse collection of stylish and functional bags. These bags are a tangible testament to the rich history of firefighting, offering a unique blend of authenticity and fashion.
Crafted with precision, the bags showcase the distinctive features of turnout gear, such as pockets, straps, and reflective elements, transforming them into fashion-forward accessories. The process involves meticulous design to ensure each bag retains the genuine look and feel of the original gear, allowing customers to carry a piece of firefighting history.
These bags serve various purposes, ranging from trendy everyday totes to durable duffel bags, accommodating diverse lifestyles. The product appeals not only to fashion enthusiasts but also to those who appreciate the resilience and durability inherent in firefighter gear. The unique blend of utility and style sets Fire Fighter Turn-Out Bags apart.
Customers can purchase these bags directly from the company’s offerings, with prices ranging from $130 for standard models to $350 for premium duffel bags. The average cost of production is $60 per bag, highlighting the dedication to affordability and accessibility. The authenticity of using actual firefighter fabric resonates with consumers, making these bags a symbol of support for firefighters and a sustainable fashion choice.
How It Went
The company’s position before Shark Tank
As of the latest available information, Fire Fighter Turn-Out Bags has demonstrated a commendable performance in the market. The company, operating from the founders’ basement, has showcased resilience and ingenuity in repurposing firefighter gear into sought-after fashion items. Their gross revenue for the previous year amounted to $194,000, with a net profit of $70,000, a testament to their ability to generate revenue and manage costs effectively.
Fire Fighter Turn-Out Bags has not relied on personal investments from the founders, illustrating a strategic approach to funding the business. Instead, they have leveraged sweat equity, emphasizing the value of their commitment and hard work in building the company.The company’s business model seems to be primarily direct-to-consumer, selling their unique products directly to end-users. This approach aligns with the authentic and personalized nature of their brand, allowing customers to connect directly with the narrative behind each bag.
The founders faced financial challenges, as indicated by a $40,000 high-interest loan taken to facilitate recent business expansions. This move reflects a commitment to growth, though it also underscores the need for additional capital to support their endeavors. The company’s current structure appears to be relatively small, with operations situated in the founders’ basement. Navigating the transition from a home-based business to a more scalable operation presents both opportunities and challenges for Fire Fighter Turn-Out Bags.
The Negotiations:
The negotiations for Fire Fighter Turn-Out Bags on “Shark Tank” were a rollercoaster of offers, considerations, and emotional moments. Niki and Matt Rasor initially sought a $250,000 investment for a 33% equity stake in their business. However, Mark Cuban and Kevin O’Leary opted out early, expressing concerns about the company’s structure and readiness for investment. Lori Greiner and Robert Herjavec remained interested in the venture. Lori offered a 50-50 partnership, proposing a $250,000 investment to help scale the business.
She envisioned Niki remaining the designer while her team managed manufacturing, charity donations, and other business aspects. Robert, on the other hand, surprised everyone with a bold move—he offered to buy the entire company for $500,000, twice the amount the Rasors were seeking. The negotiation reached a pivotal moment when Lori and Robert presented their offers. Lori’s proposition emphasized a partnership that retained Niki’s role but allowed the Sharks to take over operational aspects. Robert, however, aimed to acquire the entire company, expressing his deep passion for the business and a desire to take it to the next level.
After careful consideration, Niki tearfully accepted Lori’s offer, valuing the partnership and shared vision for the company. This decision aligned with Niki’s commitment to the brand and her reluctance to disappoint the community she served. The negotiation showcased the challenging decision entrepreneurs face when choosing between investment structures and highlighted the emotional attachment Niki had to her business. In the end, Fire Fighter Turn-Out Bags secured a partnership with Lori Greiner, paving the way for potential growth and development under her guidance.
