Tucky Elastic Band
DEAL
EPISODE SUMMARY
🕓 Air Date: May 19, 2023
Asking For:
$70,000 for 30%
Investor:
Daymond John
Deal:
$70,000 for 39%
PRODUCT SUMMARY
Tucky is an elastic band with silicone strips that turns any top into a secure and stylish crop, solving the problem of shirts slipping out when tucked.
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Background Story
Brooke Knaus, the founder of Tucky, created the product after her second child, struggled with postpartum body changes and the need to tuck her tops securely. Seeing no solution on the market, she invented Tucky, an innovative accessory to help women confidently wear crop tops and transform their wardrobes. Based in Charleston, South Carolina, Brooke’s personal experience and insight into the fashion needs of women led to the birth of Tucky, a product aimed at empowering women to style their clothes more effectively and comfortably.
The Product
Tucky is a simple yet effective solution for turning regular tops into stylish crops. It consists of an elastic band with two silicone strips on the inside. To use Tucky, you wrap it around your waist, securely fasten it, and tuck your shirts up and under the band.
The silicone strips prevent the shirts from slipping out, ensuring a lasting crop look. This product addresses the common problem faced by women who want to create a crop top effect with their regular clothing but struggle with keeping it securely tucked in.
Tucky eliminates the need for chopping shirts or using unreliable hacks, offering a comfortable and dependable solution. Tucky is versatile and suits a variety of outfits, making it a valuable addition to any wardrobe.
It’s especially popular with women between the ages of 17 and 25, with 15 million potential customers in the U.S. alone. Tucky is available for purchase online and in select boutiques, with a retail price of $30. The production cost is around $5, resulting in a healthy profit margin for the company.
How It Went
The company’s position before Shark Tank
Tucky had launched only six months before the Shark Tank pitch, and during that time, they had achieved $60,000 in gross sales. A significant portion of these sales, around 98%, came from online sales, highlighting the company’s ability to leverage e-commerce effectively. Additionally, Tucky had established partnerships with a few boutiques in Charleston, South Carolina, showcasing a hybrid sales strategy combining both online and physical retail.
The company’s healthy profit margin allowed them to generate $40,000 in net profit during their first six months of operation. Tucky’s primary target market consists of women between the ages of 17 and 25, a demographic with 15 million potential customers in the U.S. alone. The company had also gained significant traction on social media, especially on TikTok, where they went viral by demonstrating the product’s advantages and debunking existing hacks.
The company’s financial health and early success made it an attractive investment opportunity on Shark Tank. With the founders owning 100% of the business, they were seeking funding to expand and accelerate their growth.
The Negotiations:
In the Shark Tank, the Sharks had mixed reactions to Tucky. Kevin Cuban and Mark Cuban opted out of the deal, expressing concerns about the product’s longevity in a rapidly changing fashion market. Barbara Corcoran and Lori Greiner appreciated the product but felt it might not be the right fit for them. Both Kevin O’Leary and Daymond John made the same offer, $70,000 for 40% equity.
Daymond John, who had significant experience in the fashion industry, believed in the product and the potential to grow the brand. Brooke counter-offered $70,000 for 39% equity, and he accepted this counter, securing a partnership with Daymond. The negotiation ended with Brooke owning 61% of her company, with Daymond John holding a 39% stake.
While Brooke initially countered with just a 1% reduction in equity, she decided to accept Daymond’s offer, seeing the value he could bring to Tucky’s growth in the fashion market. Brooke Knaus expressed her excitement to work with Daymond John, recognizing his expertise in the fashion industry as a valuable asset to help Tucky expand and succeed.
