ZUP Watersports Board
NO DEAL
EPISODE SUMMARY
đź•“ Air Date: January 14, 2018
Asking For:
$300,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
ZUP boards offer a user-friendly approach to water skiing and wakeboarding, designed for all skill levels with innovative features.
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Background Story
The founders, Glen Duff, Nick Kierpiec, and Scott Parks, hail from Williamsburg, Virginia. The inspiration for ZUP came from their desire to make water sports more accessible. As parents with a passion for boating, they noticed that traditional water sports like water skiing and wakeboarding were often intimidating for beginners, especially kids.
Motivated to create a solution, they started innovating in their garage, leading to the development of ZUP boards. The journey began with a simple idea to enhance the water sports experience for everyone, and now, after four years, ZUP has become a recognized brand in the industry.
The Product
ZUP boards are designed to simplify the learning curve of water sports. Each board features two-foot straps, two side handles, and a double ZUP tow rope, providing users with multiple ways to ride. The unique design allows riders to start from a boogie board position, progress to a kneeboard, and eventually stand up for water skiing—all on a single board. Notably, the boards include a patented handle design to prevent finger pinching, ensuring safety during use.
ZUP boards cater to various skill levels and are described as stable and easy to maneuver, making them suitable for beginners and experienced riders alike. The foot straps serve multiple purposes, functioning as elbow and knee pads, contributing to the overall versatility of the boards.
The founders emphasize the confidence-building aspect of their product, noting that their system reduces the frustration associated with traditional water sports learning methods. The product is available for purchase online through their website and other channels, with Amazon being their primary direct-to-consumer outlet.
ZUP offers a range of boards at different price points, with the highest-priced model, the DoMore Board, at $429, the best-selling YouGotThis Board at $279, and the lowest-priced YouGo Board at $219.
How It Went
The company’s position before Shark Tank
ZUP has achieved $2.5 million in sales over the four years since its inception. In the current year, they aim for $1 million in sales and are on track to surpass that goal. The company has a diverse distribution network, with 180 retailers across the United States and additional retailers in Canada, the U.K., Japan, and Australia. They also sell directly to consumers through their website, with Amazon being their most significant direct-to-consumer outlet.
The founders report a 54% average margin across all products. Despite facing competition and knock-offs, ZUP has secured three granted utility patents for their board design, emphasizing the unique combination of foot straps, side handles, and tow rope. ZUP’s financial health includes $100,000 in the bank and over $200,000 in receivables. However, the company carries a substantial debt of $550,000, collateralized by inventory. The founders express optimism about a turning point in the business, anticipating a windfall in the current year.
The Negotiations:
The negotiation process reveals the challenges faced by ZUP. While seeking a $300,000 investment for a 10% equity stake, the sharks express concerns about the company’s financial situation. Lori Greiner questions the uniqueness of the product, specifically the patented features, leading to a discussion about the foot straps’ multi-use functionality. Despite the founders’ emotional connection to the product and their disruptive entry into the market, the sharks raise doubts about the company’s performance and ability to overcome financial hurdles.
Mark Cuban expresses skepticism about ZUP’s viability, stating they are a “50-50 chance away from zero” and advises the founders to monetize their inventory immediately. Ultimately, none of the sharks are convinced to invest, with Daymond John, Kevin O’Leary, Lori Greiner, and Mark Cuban all opting out. The founders leave the tank without a deal but express gratitude for the opportunity, confident in the potential success of their product despite the challenges.
