SockTabs
DEAL
EPISODE SUMMARY
🕓 Air Date: November 20, 2015
Asking For:
$50,000 for 20%
Investor:
Daymond John
Deal:
$50,000 for 30%
PRODUCT SUMMARY
SockTabs is a solution to prevent losing sock pairs during laundry, with the added feature of being a customizable fashion accessory for socks.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Tracie Burress and Glen Burress, founders of SockTabs, presented their product on Shark Tank with a heartfelt story about Sal and Sally Tubesock, emphasizing the common problem of losing sock pairs in the laundry. Tracie, a successful pharmaceutical sales representative, and Glen, a practicing doctor with 19 years of experience, shared their backgrounds as individuals who overcame challenges. Tracie, raised in the inner city of Chicago, was the first in her extended family to graduate from college. Glen, from the South Side, had his mother working two jobs to support him and his sister through school.
The idea for SockTabs was born out of a personal experience where a sock pair named Sal and Sally went into the washer and dryer together, but only Sal came out. This led to the creation of SockTabs, a product designed to keep socks paired throughout the laundry process. Tracie’s passionate pitch highlighted the dual purpose of SockTabs as a functional solution to sock loss and a customizable fashion accessory. The founders emphasized their hustle and determination, mentioning their early success in selling over $20,000 worth of SockTabs in just six months, primarily through retailers in Rockford, Illinois, and online sales.
The Product
SockTabs are small, wing-shaped accessories that are attached to socks to keep them paired throughout the laundry process. The product aims to solve the common problem of losing sock pairs during washing and drying. Each SockTab stays on one sock at all times, and at the end of the day, users can pinch the wings, tab it through its mate, and place the paired socks in the hamper, washer, and dryer together. The product is designed to be discreet, with users not feeling the SockTab once it’s attached to the sock.
The founders shared that a package of 24 SockTabs costs approximately $1.25 to produce, and they sell it to wholesalers at $4.99. SockTabs are positioned as an affordable solution with a dual purpose – not only preventing sock loss but also serving as a customizable fashion accessory. The founders mentioned the potential for team colors, logos, and customization, making SockTabs appealing to a broader audience.
SockTabs have been sold through various channels, including traditional retailers in Rockford, Illinois, and online sales, with approximately 60% of sales from retail and 40% from online channels. The pitch highlighted the early-revenue situation, with over $20,000 in sales within the first six months.
How It Went
The company’s position before Shark Tank
SockTabs demonstrated early success with sales exceeding $20,000 within the first six months. The product had been embraced by retailers in Rockford, Illinois, and also gained traction through online channels. Tracie and Glen, the founders, shared their backgrounds as accomplished individuals, with Tracie being a pharmaceutical sales representative and Glen having 19 years of experience as a practicing doctor.
The founders indicated that SockTabs had been sold to retailers in Rockford, and online sales contributed to 40% of their overall sales. The pitch suggested that SockTabs had already established partnerships with wholesalers, and the founders expressed confidence in the product’s market presence. Tracie’s passionate pitch showcased her commitment to the product, emphasizing their hustle in getting SockTabs into various retail outlets.
The Negotiations:
The negotiations for SockTabs on Shark Tank saw a mix of enthusiasm and skepticism from the Sharks. Tracie and Glen entered the tank seeking $50,000 for a 20% equity stake in their company. The pitch began with a creative and engaging story about Sal and Sally Tubesock, setting the stage for the problem SockTabs aimed to solve.
Lori Greiner expressed concern about existing competitors in the market, but the founders clarified that SockTabs had a unique selling point – a dual purpose as a functional solution and a customizable fashion accessory for socks. Despite some reservations from the Sharks, Daymond John recognized the potential and offered $50,000 for a higher equity stake of 30%. The deal was accepted, marking a successful negotiation for SockTabs.
The negotiation highlighted Tracie’s resilience and determination to secure a deal for her product. Daymond John’s offer aligned with the founders’ vision, and the acceptance of the deal brought a positive conclusion to their Shark Tank appearance. Tracie and Glen expressed gratitude for the opportunity and their excitement about working with Daymond to further grow SockTabs.
