In episode 306, the Sharks meet Arlene Battishill and Desiree Estrada who come to the Shark Tank with GoGo Gear. The gear is designed to protect motorcycle riders in case of an accident. The reinforced pieces are designed as protective gear primarily for women riders (they have men's fashions too), but with a fashionable look. These are not your typical fringed-leather motorcycle jackets. The pieces have been created with fashion in mind, and can be worn either on or off the bike.
The safety features like reflective fabric are cleverly hidden when the wearer isn't riding, and the Kevlar reinforcements are sewn inside the lining, making it impossible to tell the GoGo Gear apart from fashionable pieces of apparel from an upscale European boutique. Will the Sharks invest in these intrepid entrepreneur's business, or will these motorcycle gals be taken for a ride?
GoGo Gear Shark Tank Recap
The ladies ride into the Shark Tank, seeking $300,000, in return for 15% equity in GoGo Gear. They come in wearing typical “biker gear,” and explain that, in 2008, when they lost their positions in corporate America, they decided to start a clothing line that would be better suited for professionals who enjoy riding motorcycles. The ladies then shed their biker jackets to reveal their stylish GoGo Gear protective outerwear, earning oohs and ahs from the Sharks.
Kevin O'Leary wants to know about sales. Battashill responds that they had $172,000 in sales in the past year. The GoGo Gear is in 25 retail specialty motorcycle and scooter stores. Mark Cuban wants to know what their plans are going forward. “Show me that I can trust you with my money,” he tells the ladies. “What are you going to do with the money?”
Battashill's answer, that they intend to take the line to the European market, brings derision from the Shark. Cuban tells them it's a “horrible” idea for them to go to Europe. He believes that they should concentrate on the US market, building the business in America before trying to go international.
Kevin O'Leary is out based on the valuation of the company, at $2 million. When the pair tries to argue about the valuation, the Sharks shout them down. Mark Cuban calls the pair “cockroaches” in comparison to the large companies within the industry and says that, without a “laser-focused” marketing plan, they'll be crushed. He's out. Barbara Corcoran believes the pair is far too optimistic about their company's value. She's out. Robert Herjavec agrees with Cuban. He's out
Only Daymond John remains. In order to entice John, the Estrada offers a higher equity. While the pair consult, Robert Herjavec talks John into letting him come into the deal, since he knows the motorcycle business and John knows the fashion business. The partners return and offer a 50% equity. John and Herjavec ask for a higher offer. Estrada offers 55%, and Herjavec refuses. John is willing to accept the 55%, but Herjavec stands firm. Batashill raises the equity stake to 65%. Even with the higher equity, Herjavec remains out. At the last-minute, John decides he's in. GoGoGear gets a Shark deal.
GoGo Gear Shark Tank Update
The ladies left the Shark Tank bleeding from the wounds Cuban and Herjavec inflicted with their harsh response to the valuation and marketing plan, but they got the deal they needed with Daymond John. With a downturn in the economy, the partners agreed mutually with John to reduce manufacturing and ride out the recession. Daymond never wrote a check, but acted as an adviser initially. With the market strengthening, they are once again manufacturing their GoGo Gear products, and expanding retail sales. The profits are go-going up, and John is a happy investor.
Posts about GoGo Gear on Shark Tank Blog
Arlene and Desiree participated in the short-lived “Shark Tank Hang,” a series of Google Hang outs featuring Shark Tank entrepreneurs. Here's the video:
Arlene Battishill Interview (A Shark Tank Blog Classic)