Hugo’s Amazing Tape
DEAL
EPISODE SUMMARY
🕓 Air Date: February 18, 2018
Asking For:
$50,000 for 50%
Investor:
Mark Cuban, Lori Greiner (50/50)
Deal:
$100,000 for 100%
PRODUCT SUMMARY
Hugo's Amazing Tape is a versatile, adhesive-free tape that sticks only to itself, solving various sticky situations with applications ranging from organizing cables to preserving wrapping paper.
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Background Story
Hugo’s Amazing Tape is a creation of sisters Katherine Saltzberg and Lauri Fraser, who aim to continue their late father Hugo’s legacy. Hugo, a creative individual, discovered this unique tape about 20 years ago when someone shipped it to him. Recognizing its potential, he developed various uses for it. Although he didn’t invent the material, he found innovative applications for it. The patent for the tape expired with Hugo’s passing, and the sisters now seek to honor their father’s memory by bringing his creation to a broader audience.
The Product
Hugo’s Amazing Tape is an adhesive-free tape that adheres only to itself. It is remarkably strong and leaves no sticky residue, making it reusable. Available in 1/2-inch, 1-inch, and 2-inch rolls, the tape has a wide range of applications, from organizing cables to preserving wrapping paper.
It can withstand freezing and microwaving, making it suitable for various scenarios. The product is sold online and at various locations, including swap meets, with prices ranging from $1.27 for a 3-foot roll to $12.99 for larger rolls. The manufacturing is done in Taiwan.
How It Went
The company’s position before Shark Tank
Since 2011, the company has generated approximately $500,000 in sales. However, the financial performance in the last 12 months has seen a decline, with only $27,500 in sales. The uncertainty in the sales figures raises questions about the sustainability of the business. The product is manufactured in Taiwan, contributing to concerns about potential knock-offs.
The sisters mention selling the product online and at swap meets, emphasizing their commitment to the venture despite both having other businesses. Their diverse professional backgrounds include acting, parenting coaching, voiceover artistry, and hairdressing. The sisters convey the challenges of managing the business alongside their various roles.
The Negotiations:
The sisters entered the tank seeking $50,000 for 50% equity, but Mark Cuban and Lori Greiner surprised them by offering $100,000 for the entire company, expressing a belief in its potential. The sisters were initially shocked and had to take a moment to consider the offer. After some suspense, they enthusiastically accepted the deal, with Lauri expressing gratitude and mentioning that it was a tribute to their father’s legacy.
Kevin O’Leary had bowed out earlier, citing concerns about the business’s viability, but Mark Cuban saw potential in being first to market and was willing to invest in the entire company. Lori Greiner, known for her expertise in QVC and product development, also saw an opportunity in the product. The negotiations concluded with the sisters leaving the tank with a deal that would help them carry forward their father’s legacy.
