Tandm Surf Body Board For Two
DEAL
EPISODE SUMMARY
🕓 Air Date: March 12, 2021
Asking For:
$100,000 for 10%
Investor:
Robert Herjavec, Daniel Lubetzky (50/50)
Deal:
$100,000 for 35%
PRODUCT SUMMARY
Tandem Boogie is an inflatable and portable board designed for tandem surfing, offering a fun and accessible way for people of all ages to enjoy catching waves together.
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Background Story
The Clark family, hailing from the picturesque coastal town of San Clemente, California, is the driving force behind the creation of the Tandem Boogie. Their story is one rooted in a deep love for the beach, watersports, and the desire to share those experiences as a family unit. With a vision of making beach outings even more memorable, they embarked on a journey to design an innovative inflatable board that could accommodate multiple riders on the same wave.
John and Manya Clark, armed with their respective backgrounds in sales and manufacturing, saw an opportunity to turn their passion into a family business. John’s expertise in sales complemented Manya’s industrial engineering knowledge, making them a formidable team. Their shared enthusiasm for watersports and their desire to create shared experiences led to the birth of the Tandem Boogie. The initial spark for the Tandem Boogie came from their own family adventures, where they experimented with riding stand-up paddleboards together.
This family bonding experience ignited the idea to design a surfing board that would promote togetherness and foster adventure at the beach. Their close-knit family values served as the cornerstone of their entrepreneurial journey, driving them to create a product that encapsulates the joy of riding the waves as a group. The Tandem Boogie not only reflects their love for beach activities but also their commitment to bringing families and friends closer through unforgettable aquatic adventures.
The Product
Tandem Boogie is a versatile and inflatable surfing board designed for tandem surfing adventures. Its patent-pending dynamic air design allows it to be compactly stored in a bag and inflated at the beach.
The board features handles and a camera mount for capturing memorable moments while riding the waves. Tandem Boogie is suitable for a wide range of users, including children taking their first steps into the ocean, adults looking to conquer their fear of the waves, or teenagers seeking a unique experience.
It can be ridden front and back or side by side, accommodating two people. The product comes with an included pump, making it convenient to set up at the beach. The board’s ability to accommodate multiple riders on the same wave promotes bonding and creates lasting memories for families and friends.
How It Went
The company’s position before Shark Tank
Tandem Boogie, a family-operated business, has demonstrated a promising start in its journey. Their initial success stemmed from a well-executed Kickstarter campaign, which contributed $43,000 to their revenue within a month, with $31,000 originating from the Kickstarter platform. The founders have managed to secure partnerships with four retail stores, a significant achievement for a relatively new venture. Additionally, their shelving business, which generates approximately $1.5 million in annual sales, has provided a solid foundation for their entrepreneurial endeavors.
The Tandem Boogie faces the challenges of adapting to the online market due to the COVID-19 pandemic and expanding its distribution and marketing efforts. Despite these hurdles, the company maintains a favorable profit margin, with a manufacturing cost of $150 per board and a retail price of $459.
While details about the company’s current funding sources and financial specifics were not disclosed in the episode, it’s evident that the Clark family members have distinct roles within the organization. These roles span various crucial aspects of the business, including manufacturing, operations, marketing, sales, and community outreach. This organized structure reflects their commitment to making Tandem Boogie a success, leveraging their combined skills and experiences to propel their product into the market.
The Negotiations:
The negotiation with the Clark family and the Sharks was a dynamic and collaborative process. Initially seeking $100,000 for 10% equity, the Clarks received offers that required them to adjust their equity expectations. Robert Herjavec made the first offer, proposing a $100,000 investment but not disclosing the exact equity percentage he desired. This prompted the Clarks to consider a higher equity stake than they had initially planned.
However, the negotiation took an interesting turn when Daniel Lubetzky expressed his interest in joining the deal. Recognizing the potential of the Tandem Boogie product and appreciating the family’s unity and vision, he offered to invest alongside Robert Herjavec. Their joint offer was $100,000 for 35% equity in the company, which was a more substantial equity share than what the Clarks had originally intended to part with.
Ultimately, after a brief huddle, the Clark family decided to accept the joint offer from both Robert and Daniel. This partnership was seen as an opportunity to not only secure the necessary funding but also to bring in expertise and support to help grow their business. The negotiation concluded with a sense of excitement and anticipation for the journey ahead as Tandem Boogie welcomed Robert and Daniel into their close-knit family of surf enthusiasts.
