Season 5 | Episode 513 | EP513
In Season 5, Episode 13 of Shark Tank, Jim Lewis approached the Sharks seeking an investment of $150,000 exchange for 10% equity in ‘Wall RX’. The company is currently based in Chester County, PA.
Wall RX is a product designed for those who want to repair holes in their dry wall without worrying about having to call a tradesman in to complete the job. This ‘easy to use’ kit allows a hole up to 4” wide to be patched up within minutes. The sheetrock repair kit makes repairing drywall a breeze.
Jim Lewis had already demonstrated ‘proof of concept’ before he entered the Shark Tank. The product had already been on sale for close to a year before he entered the Shark Tank. In this time he had managed to sell 90,000 units with a profit of close to $600,000. The high level of sales was in part down to a deal that he managed to make with Lowe’s. He stated that a large retailer had also inquired about stocking the product. All of this clearly demonstrated that market existed and that it was a pretty big one at that.
Jim Lewis stated that the product cost less than $2.50 to manufacture and retails for between $6.99 and $9.99 depending on the size of patch purchased. He was seeking investment in the hope of streamlining the manufacturing process and hopefully reducing the cost of the drywall patches considerably.
Daymond John: $300,000 in exchange for 15% equity in the company.
Kevin O’Leary: $150,000 in exchange for 15% equity in the company. This investment would be on the condition that that the product could be licensed out to another company.
Lori Greiner: $200,000 for a 20% equity stake in the company. With this offer she pledged to provide exposure on QVC. She also pledged to create an infomercial to push the product.
Robert Herjavec: $150,000 in exchange for the international rights to the product. He would also have the option of purchasing product at cost from Lewis to sell on the international market.
While Lewis initially wanted to opt to work with Lori Greiner due to her connections and the fact that she had been successful with similar products he eventually ended up with Robert Herjavec’s offer. The fact that he was able to maintain US Distribution rights to the product was most appealing. The Sharks believed that he should have opted for Lori’s deal as exposure on QVC for a product of this nature could result in huge sales.
Robert Herjavec tends to only invest in well executed businesses that have paying customers. If you want to capture Robert’s attention quickly, have a good story, be humble, know your numbers and understand good timing.