Season 5 | Episode 506 | EP506
In Season 5, Episode 6 of Shark Tank, Eric Child and Spencer Quinn approached the Sharks seeking an investment of $90,000 in exchange for 10% equity in ‘Fiber Fix’. The company is currently based in Provo, Utah.
FiberFix is a product that has been designed in very much the same way as Duct Tape. The huge difference between the two however is the fact that Fiber Fix is one hundred times stronger than duct tape. This means that it is able to accomplish a number of different tasks including the ability to fix leaking pipes and broken metal pieces. The repair tape is 100% waterproof and resistant to both heat and cold. The adhesive dries in minutes and forms an unbreakable bond.
The pair announced that they manufacture the product for $2.00 per roll. It is then sold wholesale for $4.00 before it is finally retails for $7.99. They currently have a deal with QVC (which of course intrigues Lori) and the product is likely to be in Home Depot stores in the near future. At the time of the pitch they had barely made any sales although the potential and the interest was there.
Kevin O’Leary: $90,000 with a 70% royalty on each unit sold until the initial investment is paid back. This will then be adjusted to a 20 cent royalty.
Robert Herjavec: $90,000 in exchange for 10% of the equity. He believed the duo should opt for his offer simply because he has friends in hardware distribution.
Lori Greiner: $250,000 for 18% equity in the company. As she is a key figure at QVC she believes that her offer would be more appealing to the pair. She promised to create an infomercial to push the duct tape alternative on the network.
Robert Herjavec: The initial offer plus a further $250,000 line of credit.
Lori Greiner: $120,000 in exchange for 12% equity in the company. This offer initially did not include a line of credit but she extended the offer to including funding of all purchase orders.
The pair eventually agreed to Lori Greiner’s offer. This was the only offer left on the table after Robert pulled out of proceedings when the pair made it clear that they would wish to target QVC and infomercials first. Robert believed that the product would likely sell significantly better if it went to retail first but the pair did not agree.
Lori Greiner has helped launch over 400 products with a 90% success rate on new items launched. Lori looks for products that solve a problem, can be sold at a reasonable price and are appealing to the mass market.