Season 5 | Episode 505 | EP505
In Season 5, Episode 5 of Shark Tank, Mark & Amber Schaub approached the Sharks seeking an investment of $600,000 in exchange for 7% equity in ‘Rufflebutts & Ruggedbutts’. The company is currently based in Dallas, Texas.
Rufflebutts & Ruggedbutts are actually two distinct clothing companies. One is dedicated to trendy clothing for young girls and the other one to young boys. They are run independently from one another with Mark Schaub controlling the male wing of the business and Amber Schaub dealing with the female clothing side. For the purposes of investment they have decided to bundle the two baby boutique businesses together.
At the time of the pitch the baby clothing lines could be found in Neiman Marcus, Hallmark, and Nordstrom. A number of baby boutiques around the globe, hundreds of them in fact, also stocked a small range of Rufflebutts and Ruggedbutts products. The pair had achieved annual sales of $3.7 million to date. They projected that this number would rise to $5 million over the following year. The company has zero debt. This was of course something that really intrigued the Sharks. It did lead them to question as to why investment was required however. The answer to this question was that the pair did not come strictly for the cash. They instead wanted the expertise of the Sharks working on their business.
The one slipping point for the pair was the fact that they had close to 2,000 products in their inventory. The Sharks believed that this was far too many and if they wanted to stand a chance of expanding quickly this would have to be scaled back drastically.
The pair was more than happy to Lori Greiner’s offer. This was in part down to the fact that she was a retail specialist and they believed that the expertise that Lori brought to the table would make it a great deal easier to penetrate new markets.
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.