ISlide Customizable Sandals
NO DEAL
EPISODE SUMMARY
🕓 Air Date: September 23, 2016
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
ISlide is the only premium customizable slide in the industry, allowing individuals to stand in what they stand for with personalized designs.
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Background Story
Justin Kittredge, a Boston native and the founder and CEO of ISlide, brought a unique blend of experience and passion to the world of customizable slides. With a background deeply rooted in the footwear industry, Justin’s journey began at Reebok, where he honed his skills and gained valuable insights into the world of athletic apparel. After working at Reebok, Justin ventured into entrepreneurship, drawing from his industry knowledge to embark on a mission to create a product that blended comfort with personal expression.
ISlide, based in Boston, Massachusetts, was born out of Justin’s vision to offer a premium customizable slide, making a bold statement in the world of self-expression through footwear. The idea behind ISlide is encapsulated in the company’s motto: “Stand in what you stand for.” Justin envisioned a product that went beyond mere functionality, transforming slides into a canvas for personal identity. This vision became the driving force behind ISlide, where customers could bring their individuality to life through customized designs on comfortable, high-quality slides.
The journey wasn’t without its challenges, as Justin spent three years building ISlide into the only company in the world that allowed individuals to truly stand in what they stand for. The brand gained significant traction, attracting attention from celebrities such as LeBron James, Justin Bieber, and D.J. Khaled, who embraced ISlide as a means of showcasing their unique style and personal mantras. Justin’s experience in the footwear industry, coupled with his entrepreneurial spirit, culminated in the creation of ISlide, a brand that not only offered a product but also provided a platform for self-expression through customizable slides.
The Product
ISlide offers a revolutionary product that transcends the traditional concept of slides, providing a platform for self-expression and personalization. Priced at $50, the premium customizable slides are available for purchase through various channels. The customization process is straightforward, allowing customers to bring their unique vision to life. Individuals can visit the ISlide website, where they have the freedom to choose from a variety of design elements.
This includes selecting colors, patterns, and even adding personalized text or images, reflecting their individual style and preferences. The result is a pair of slides that stands as a true extension of the wearer’s personality. ISlide’s slides go beyond mere aesthetics; they prioritize comfort, making them suitable for everyday wear. The product boasts high-quality materials, ensuring durability and providing a comfortable fit for users. With a commitment to delivering personalized and comfortable footwear, ISlide caters to a diverse customer base, including teens, brands, corporations, and individuals.
The slides are versatile in their use, appealing to high school, college, and professional sports teams, as well as celebrities like LeBron James, Justin Bieber, and D.J. Khaled. The product’s popularity is not just limited to its visual appeal; its comfort and personalization options make it a sought-after choice for those looking to make a statement with their footwear. Customers can purchase ISlide directly from the company’s website, where they can customize their slides, place orders, and experience a swift turnaround time of under a week for shipping.
How It Went
The company’s position before Shark Tank
ISlide, a company founded by Justin Kittredge, has demonstrated notable success and growth in its nearly three years of operation. The company’s financial health and position were presented during the “Shark Tank” pitch, shedding light on various aspects of its performance. ISlide reported $1.5 million in sales, a significant accomplishment within the span of three years. However, during the pitch, Justin faced skepticism from the Sharks regarding the company’s valuation, set at $10 million. The valuation was based on the anticipation of future trends, such as mass customization on an individual scale.
ISlide utilizes four distribution channels. The first involves direct sales to individuals through the company’s website, representing about 15% of total sales. Team orders and a drop-shipping model are the other primary channels. Notably, the drop-shipping model involves partnerships with influencers like D.J. Khaled, who collaborates with ISlide to create personalized slides with his own sayings, resulting in a substantial number of orders. ISlide’s partnerships extend beyond influencers to collaborations with sports teams and celebrities like LeBron James, Justin Bieber, and Madonna. These collaborations contribute to the brand’s visibility and success in attracting diverse customers, including high school, college, and professional sports teams.
The company reported a net profit of $75,000, taking into account all costs, including production and shipping. This profit was scrutinized by the Sharks, who expressed concerns about the $10 million valuation and the company’s ability to sustain a 10x revenue multiple. The current structure of ISlide involves a team that has successfully navigated challenges, expanding from concept to market within six months. The company’s ability to secure collaborations with elite athletes and influencers highlights its strategic approach to brand building.
The Negotiations:
The negotiations for ISlide on “Shark Tank” were dynamic and intense, with all six Sharks expressing interest in the customizable slide company. However, the primary point of contention was the company’s $10 million valuation, which led to a series of offers and counteroffers. Kevin O’Leary, acknowledging the high valuation, offered $500,000 for a 5% equity stake, valuing ISlide at $10 million. O’Leary’s offer set the tone for the negotiations, with other Sharks probing into ISlide’s business model, sales channels, and profitability.
Mark Cuban, recognizing the potential in the personalization trend, made a counteroffer of $500,000 for a 20% stake. This offer reflected Cuban’s belief in the business but addressed the concern over the steep valuation. Despite encouragement and multiple offers on the table, Justin Kittredge, the CEO of ISlide, ultimately declined all offers, including Robert Herjavec’s proposition of $500,000 for 10%. Justin held firm on the $10 million valuation, expressing confidence in the company’s future prospects and the growing trend of mass customization.
The presence of NFL player Antonio Brown, who endorsed ISlide and shared his positive experience, added credibility to the brand. However, concerns raised by the Sharks about the scalability of the business and the ability to maintain a 10x revenue multiple influenced the negotiation dynamics. In the end, Justin left the Tank without securing a deal, showcasing the challenges of justifying a high valuation in a competitive market. The negotiation highlighted the delicate balance between an entrepreneur’s optimism and investors’ cautious evaluation of a company’s financial health and future potential
