Touch Up Cup Paint Container
DEAL
EPISODE SUMMARY
🕓 Air Date: October 16, 2020
Asking For:
$150,000 for 10%
Investor:
Blake Mycoskie
Deal:
$200,000 for 20%
PRODUCT SUMMARY
TouchUp Cup is a patented paint storage solution that keeps paint fresh for over 10 years and allows for easy mixing and touch-up painting.
WATCH HERE
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Background Story
Carson Grill and his father Jason presented TouchUp Cup, a product they invented to solve the problem of rusted and clumped paint in gallon cans. The father-son duo shared their background as homeowners who frequently faced touch-up paint needs due to their three kids. Inspired by the messy and inefficient paint storage solutions, they came up with the patented TouchUp Cup.
The founders have an impressive background, with Carson being only 15 years old but already holding four patents, including one for the TouchUp Cup. He showcases some of his other creations, such as the Muffin, Bagel, and Doughnut Fresh, which help keep baked goods fresh for an extended period.
The Product
The TouchUp Cup is a paint storage container designed with extra threads and an airtight silicone seal to keep paint fresh for more than a decade. It features a stainless-steel blending sphere inside, making it easy to mix the paint with just a shake before use.
The product offers a convenient and mess-free solution for homeowners and professionals alike, ensuring that paint remains in perfect condition for touch-up projects. The company offers both individual cups and a three-pack, catering to different paint storage needs.
Price: $19.99
How It Went
The company’s position before Shark Tank
At the time of the pitch, TouchUp Cup had experienced substantial growth and success. They had secured a private label partnership with a well-known painter’s tape brand, and were already present in 4,000 locations. Their strategic partnership in Nashville, Tennessee, efficiently handled their picking, packing, and order entry processes.
TouchUp Cup had achieved $220,000 in sales over the last two years, with $150,000 of that in the past year and a half and $70,000 in the current year. They were on track to achieve $400,000 in sales for that year.
The Negotiations:
The negotiation started with Carson and Jason asking for $150,000 for 10% equity. Two Sharks, Lori Greiner and Mark Cuban, are quick to bow out of the deal, while Daymond John and Blake Mycoskie make offers. Blake offered $200,000 for 25% equity, and Daymond offered $150,000 for 20% equity.
The Grills were impressed with the offers but were hoping to give up less equity. They asked Blake if he would compromise and accept 17.5% equity for $200,000, but Blake stuck to his original offer of 25% equity for $200,000. Daymond also declined to change his offer. After some discussion and advice from the Sharks, the Grills decided to accept Blake’s offer of $200,000 for 25% equity.
The negotiation showcased Carson’s business acumen and passion for the product, while also highlighting the challenges of running the business part-time due to school and other commitments. In the end, they believed that having Blake on board as a partner would provide valuable guidance and resources to take TouchUp Cup to new heights.
