SPERGO Apparel
DEAL
EPISODE SUMMARY
đź•“ Air Date: November 5, 2021
Asking For:
$300,000 for 10%
Investor:
Daymond John
Deal:
$300,000 for 20%
PRODUCT SUMMARY
SPERGO is a designer lifestyle apparel brand that combines fashion and comfort to inspire people to chase their dreams in style.
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Background Story
Trey Brown’s journey as an entrepreneur is nothing short of remarkable. At just 12 years old, he kickstarted his entrepreneurial career with a mere $178, a birthday gift. With this modest sum, he purchased 16 T-shirts, which astonishingly sold out almost immediately. This early success laid the foundation for what would become SPERGO, a designer lifestyle apparel brand.
Beyond the numbers, Trey’s vision for SPERGO is deeply rooted in inspiring and motivating youth. Growing up in a challenging environment in Philadelphia, he witnessed the hardships many young people faced, including violence and drugs. Determined to be a positive force, Trey wanted to show that dreams could be pursued without resorting to negativity.
One of his most significant accomplishments was retiring his mother, who became his first full-time employee. Trey’s dedication and work ethic were apparent from an early age, as he tirelessly sold T-shirts and reinvested his earnings into the business. His passion for SPERGO goes beyond clothing; it’s about creating a feeling and serving as a beacon of hope for young individuals, proving that with determination and hard work, they too can chase their dreams and create a brighter future.
The Product
SPERGO prides itself on delivering premium, high-quality clothing that blends style and comfort seamlessly. Their clothing is meticulously crafted with embroidered designs, emphasizing durability and aesthetics. The brand’s signature Leo sweat suit is a prime example, costing $21.50 to manufacture but retailing for $170. This price differential underscores SPERGO’s commitment to offering a luxurious and exclusive experience to its customers.
What sets SPERGO apart is not just its exceptional product quality but also its robust online presence. With Trey at the helm and his impressive social media following of over 89,000 Instagram followers, the brand has effectively leveraged digital platforms to connect with its target audience. This online engagement not only bolsters brand visibility but also fosters a community of like-minded individuals who resonate with SPERGO’s message of empowerment and ambition.
SPERGO’s use of bright and bold colors in their designs not only adds a distinctive flair to their clothing but also serves as a visual representation of the brand’s core values—motivation and determination. The combination of quality craftsmanship, striking aesthetics, and a powerful online presence positions SPERGO as a formidable player in the fashion industry, capturing the essence of chasing dreams in style.
How It Went
The company’s position before Shark Tank
SPERGO’s remarkable growth trajectory is a testament to Trey Brown’s entrepreneurial prowess. In just a few short years, the company has witnessed an impressive surge in sales. Starting at $40,000 in 2018, SPERGO’s revenues soared to an impressive $745,000 by 2020, showcasing its rapid ascent in the fashion industry. Even more striking is the fact that the company has already outpaced last year’s sales, boasting $938,000 year-to-date.
This steady upward trajectory underscores SPERGO’s resilience and adaptability, even in challenging economic climates.The company’s multi-faceted sales strategy is another key to its success. While they have a robust online presence, accounting for 30% of their sales, SPERGO also leverages physical stores, contributing to a significant 70% of their revenue. This dual approach allows them to tap into both digital and traditional markets effectively.
Looking forward, SPERGO’s plans for expansion signify their ambition to reach even greater heights. Their impressive performance thus far, coupled with their commitment to quality and empowerment, positions them as a brand to watch in the fashion industry. SPERGO’s story is not just one of financial success but also of a young entrepreneur’s unwavering determination to make a difference while achieving his dreams.
The Negotiations:
The negotiation phase of Trey Brown’s pitch on “Shark Tank” was marked by interest and offers from several Sharks, each bringing their unique perspective to the table. Daymond John, Mark Cuban, Robert Herjavec, and Lori Greiner were all captivated by SPERGO’s story and growth potential. Daymond John led the negotiation with an initial offer of $300,000 for a 25% equity stake in the company. This offer reflected his belief in Trey’s vision and the impact SPERGO could have.
Mark Cuban quickly matched Daymond’s offer, expressing his interest in supporting young entrepreneurs. Robert Herjavec and Lori Greiner, while impressed, ultimately felt that the clothing industry wasn’t their expertise and withdrew from the negotiation. Robert highlighted his concern about the heavy reliance on brick-and-mortar stores, which wasn’t aligned with his investment focus.
In a surprising turn, both Daymond and Mark increased their stake demands to 25%, effectively leaving Trey with a choice between the two. Trey, staying true to his vision and recognizing Daymond’s experience in the fashion industry, decided to go with Daymond’s offer. He accepted $300,000 for a 20% equity stake, forging a partnership that not only promised financial support but also mentorship and guidance. The negotiation showcased Trey’s poise and determination as he made a strategic decision that would help SPERGO continue its journey of empowering youth and inspiring dreams.
