Tailgate N Go – Portable Outdoor Kitchen
DEAL
EPISODE SUMMARY
đź•“ Air Date: October 27, 2019
Asking For:
$250,000 for 10%
Investor:
Matt Higgins
Deal:
$250,000 for 20% + $50/unit royalty until $250,000 is paid back
PRODUCT SUMMARY
Tailgate N Go is a portable, modular outdoor kitchen and dry box designed for camping, fishing, tailgating, and other outdoor adventures.
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Background Story
The founders, Taylor, Ron, and Kobe, were inspired to create Tailgate N Go during a frustrating camping experience where they struggled to find essential kitchen tools. Recognizing the need for an organized outdoor kitchen, they conceptualized and developed Tailgate N Go in Grand Junction, Colorado. Their journey began a year and a half ago when they took their camping inconvenience and transformed it into an innovative solution.
The trio leveraged their collective ingenuity to design a portable, modular outdoor kitchen with a patented system that allows for versatile and efficient use. The idea stemmed from the belief that there had to be a better way to manage outdoor cooking setups. The founders’ determination led them to create a product that not only addressed their own camping challenges but also filled a gap in the market.
The Product
Tailgate N Go is a modular outdoor kitchen and dry box that starts as a simple box and unfolds into a fully equipped kitchen with various attachments. The modular design enables users to arrange attachments in any of the 10 locations around the box, providing 360 degrees of function and versatility.
The product includes sinks, storage space, and other kitchen essentials, offering the convenience of a home kitchen in an outdoor setting. With three different models—full-sized, Overlander, and a new model—Tailgate N Go caters to different needs and price points, ranging from $1,000 to $1,500.
Manufactured entirely in Colorado, the product’s weight ranges from 55 to 75 pounds, with plans to introduce lighter options in the future. The company holds two provisional utility patents covering the unique design elements, including the aluminum railing and roto-mold plastic.
How It Went
The company’s position before Shark Tank
Tailgate N Go has achieved notable success with over a hundred units sold in just six trade shows. Despite being a relatively new entrant to the market, the company tripled its sales in the last six months, demonstrating significant potential. The founders have invested $250,000 of their savings in the business, emphasizing a cautious approach to financial management.
The manufacturing cost for the full-sized model is $748, with plans to reduce costs by using plastic for certain components, potentially bringing prices down to the $300-$200 range with scaling. Currently, the company operates exclusively in Colorado and aims to expand its reach with the Sharks’ support. Tailgate N Go has two provisional utility patents, securing its unique design elements.
The Negotiations:
The negotiation process unfolded with a $250,000 ask for 10%, and Kevin O’Leary proposed a $250,000 line of credit for 10% equity with a $100 royalty per unit sold. All Sharks except Kevin dropped out, and Matt Higgins stepped in with a counteroffer of $250,000 for 20% equity, along with a $50 royalty per unit until he receives a 1X return.
After some back-and-forth and a dramatic moment involving Kevin O’Leary, the founders accepted Matt Higgins’ offer. The negotiation highlighted concerns about the scalability and cost of capital for the business, with Matt emphasizing the need for a way to get his capital back. Ultimately, the deal was closed with Matt Higgins securing 20% equity for a $250,000 investment, along with the agreed-upon royalty terms.
