Mission Belt – Ratcheting Belt
DEAL
EPISODE SUMMARY
🕓 Air Date: April 26, 2013
Asking For:
$50,000 for 20%
Investor:
Daymond Johnn
Deal:
$50,000 for 37.5%
PRODUCT SUMMARY
The Mission Belt is a men's accessory that features a unique ratchet system instead of traditional holes, providing a perfect fit every time without wear and tear.
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Background Story
The founder, Nate Holdsaffle, identified a common problem with traditional belts – the holes wear out quickly and don’t offer precise adjustments. He embarked on a mission to improve this everyday accessory and created the Mission Belt. With a background in sales, Holdsaffle utilized his skills to introduce the belt through small local retailers and even sold them door-to-door. His dedication and innovative product caught the attention of the Sharks on “Shark Tank.”
The Product
The Mission Belt features a ratchet system that allows for precise adjustments, eliminating the need for traditional holes and providing a perfect fit every time. It is available in various sizes and designs, catering to different preferences.
The belts are manufactured with high-quality materials and are priced at $35 retail and $15 wholesale. Nate’s personal approach to sales involves demonstrating the product’s unique features to potential customers, ensuring its effectiveness. Â
How It Went
The company’s position before Shark Tank
Despite being in business for only three months, the Mission Belt Company has generated $39,000 in sales. Nate primarily sells through small, local retailers and has experienced increasing demand, with some locations selling up to 250 belts per month.
The company’s margins are healthy, with production costs ranging from $5.50 to $6 per belt. Nate’s biggest challenge lies in expanding distribution to larger retailers. The company currently operates with a lean structure, with Nate handling sales and manufacturing through a contracted factory. Â
The Negotiations:
After receiving offers from multiple Sharks, Nate ultimately strikes a deal with Daymond John, who offers $50,000 for 37.5% equity. Daymond’s offer includes partnering with a licensee for manufacturing and product development while Nate leads the sales team. Despite initial hesitation, Nate accepts Daymond’s offer, excited about the opportunity to work with such an experienced partner.
