Reviver – Removes Odor from Clothing
DEAL
EPISODE SUMMARY
🕓 Air Date: October 10, 2014
Asking For:
$150,000 for 5%
Investor:
Lori Greiner
Deal:
$150,000 for 15%
PRODUCT SUMMARY
Reviver Clothing Swipes, a revolutionary technology for on-the-go clothing freshness. It involves swiping a dry layer of odor-fighting formulation onto clothes to keep them fresh between washes.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Reviver, a clothing freshness solution, was introduced to the “Shark Tank” by brothers Ben and Eric Kusin. The duo sought $150,000 for a 5% stake in their company. The product, Reviver Clothing Swipes, was born out of a practical need that Eric experienced. After indulging in a cigarette before a crucial meeting, he realized that his clothes carried an undesirable odor. Struck by the absence of products addressing clothing odors, especially in comparison to the multitude available for breath freshness, Eric conceptualized Reviver.
The Kusin brothers, hailing from an entrepreneurial family, invested significant time and resources into developing this innovative solution. Their father, a self-made entrepreneur known for his association with the successful retail giant GameStop, played a key role by contributing $2 million to the venture. The brothers emphasized that this financial support was provided by a family investor, their father, who also became an equity partner in the business.
The idea for Reviver was not just a personal solution for the founders but an opportunity to fill a gap in the market. Their pitch highlighted the absence of alternatives for refreshing clothes on the go, particularly in situations where returning home for a change was impractical. The brothers were seeking not only financial backing but also a strategic partner to propel Reviver into larger markets. The backdrop of their familial entrepreneurship and the success of their father added an interesting layer to the pitch, underscoring their commitment to making Reviver a household name in the world of clothing freshness.
The Product
Reviver Clothing Swipes, by Ben and Eric Kusin, is a pioneering solution for on-the-go clothing freshness. The product offers an innovative and convenient way to combat unwanted odors lingering on clothes, providing users with a quick and efficient alternative to changing outfits.
The swipes utilize a revolutionary technology that involves a dry layer of odor-fighting formulation. To use Reviver, one simply swipes the clear layer onto their clothes, effectively neutralizing and eliminating odors. The product is designed to be versatile, with applications beyond just clothing — it can also freshen hair, making it a comprehensive solution for maintaining personal freshness.
Reviver Clothing Swipes are reusable, adding an eco-friendly aspect to their appeal. During the “Shark Tank” pitch, a demonstration showcased its efficacy in refreshing a shirt marinated in various food odors. The clear layer of formulation ensures that users can enjoy the benefits of the product without leaving any visible residue on their clothes.
The product is available for purchase at a retail price of $2.99 per unit, making it an affordable and accessible solution for consumers. With its practicality and ease of use, Reviver addresses a common challenge faced by many individuals — maintaining freshness on the go — and positions itself as a must-have in the daily lives of those who value convenience and cleanliness.
How It Went
The company’s position before Shark Tank
Reviver, as presented on “Shark Tank,” has demonstrated robust performance and strategic positioning in the market. In under 10 months, the company has achieved a commendable $510,000 in sales, showcasing a promising trajectory. One notable partner mentioned during the pitch is Petco, where Reviver has successfully placed its product in all 1,200 locations across the country, accounting for almost half of their business. The choice of Petco as a partner aligns with the product’s versatility, given its potential applications beyond clothing, possibly extending to pet-related odor issues. The founders highlighted that their first buyer was from Petco, underscoring the significance of securing partnerships with major retailers.
Reviver’s retail strategy includes a unit cost of 55 cents, with each swipe retailing for $2.99. The founders emphasized the reusability of the product, making it an economical choice for consumers. With projected sales of $4 million for the next 12 months, the company has ambitious yet well-founded financial goals. Funding for Reviver has predominantly come from a family investor, with their father contributing a substantial $2 million to the company. This familial investment has positioned Reviver with a solid financial foundation.
The company’s current structure includes the Kusin brothers, Ben and Eric, as the founders and equity partners. Their father’s involvement as both an equity partner and a significant investor adds a familial dimension to the company. With an imminent meeting with Walmart, the world’s largest retailer, Reviver is poised for further growth, and the founders are seeking additional support from the Sharks to navigate this critical juncture. Overall, Reviver presents a promising venture with a compelling product, strategic partnerships, and a solid financial foundation.
The Negotiations:
The negotiation for Reviver on “Shark Tank” unfolded with an initial ask of $150,000 for a 5% stake in the company. Lori Greiner and Robert Herjavec were quick to express interest, with Lori offering $150,000 for a higher equity share of 15%. Meanwhile, Robert countered with a $150,000 offer for a 10% stake. Mark Cuban, however, took issue with how the founders characterized Reviver as a technology. He dropped out, emphasizing that the product was more of a formulation and machinery rather than a true technology.
Barbara Corcoran also opted out, citing a personal bias against investing in what she labeled as “rich kids’ businesses,” despite the product’s evident success. The negotiation took an unexpected turn when the Kusin brothers opted for Lori’s offer, even though Robert’s offer carried a lower equity percentage. They justified their decision by emphasizing the need for a strategic partner and connections, emphasizing that Lori’s QVC connections and retail expertise aligned better with their goals.
This decision sparked some tension among the Sharks, particularly with Barbara and Mark. Barbara expressed concern about Lori’s valuation, and Mark criticized the characterization of Reviver as a technology. Despite the disagreement, the Kusin brothers were firm in their choice, highlighting the importance of strategic partnerships in addition to financial backing for Reviver’s future success. The deal concluded with Lori securing a 15% stake in Reviver for her $150,000 investment.
