"I'm going to offer you $350,000"— Shark Tank's Lori Greiner shows interest in PermaPlug
Shark Tank season 16 returned to screens with a brand new episode after being on a 2-week-long break. The segment saw several entrepreneurs appeal to the sharks in hopes of receiving funding for their businesses. This included PermaPlug, founded by Zak.
The entrepreneur came seeking $350,000 for 15% equity in his company, PermaPlus Charger Lock. He explained how his product worked and said that it was a proprietary, fully patented, locking system that secured chargers and cables into place to ensure they don't get "moved, stolen," or "accidentally unplugged."
After a lengthy discussion with the sharks, Lori Greiner told Zak that she had good and bad news for him and asked him what he wanted to hear first. As the entrepreneur wanted the bad news first, she teased him about not being interested in the product, only to say that she was "back in" as part of the good news.
"So I'm going to offer you $350,000. I would like 20%. And I'd like a royalty of $1 until I get paid back my money," she said.
"She's not Mr. Wonderful"— Kevin O'Leary urges PermaPlug founder to consider all three offers in Shark Tank season 16 episode 18
In Shark Tank season 16 episode 18, Zak sought $350,000 in exchange for 15% equity in his company. He began his pitch by telling what his product did, and guest shark Daniel Lubetzky noted that PermaPlug only solved problems at home.
However, Zac countered by noting that the product would solve problems related to travel if hotels purchased the products as well. He said the hotels could provide their clients with chargers without worrying that they would be taken.
Kevin O'Leary asked him about his sales because he said it wouldn't be fair to rip the founder to "pieces" without that knowledge. Zac explained he had $2000 in sales so far.
"I have $4560,000 in sales year-to-date," he added.
The sharks caught on the joke and praised him for the comeback. Robert asked him how he earned so much, and Zac said he brought the sales in by himself. He added that he filed for the patent in 2019 and explained what inspired him to create PermaPlug. He said he grew up with cousins living on the same street and would steal each other's chargers.
He added that in 2019, he stayed at a friend's house and had his phone plugged into his charger. Zac added that it was superglued to the outlet, which served as a lightbulb moment for the Shark Tank season 16 entrepreneur.
"This is for anybody that has one child or more," Lori Greiner said.
Mark Cuban noted he had three teenagers and stated that they stole each other's chargers every minute. Robert further enquired about how he was selling the product and whether the number he had given earlier was a yearly number.
"I'm $665,000 lifetime which is 12 months. I launched last year," Zac said.
Zac also noted that he was "fully direct to consumer" and that his customers were all over the place and all through social media. He also noted that Amazon was a "huge channel" for him and that 60% of his revenue came from the marketplace.
When asked about his pricing, Zac revealed that he bought the product for $6.50 each and sold it for $35 on average. Kevin O'Leary was the first shark to offer the entrepreneur a deal.
"I'll do the $350,000, 15%. I want 2 bucks a unit in royalties, in perpetuity," he said.
In response, the Shark Tank season 16 business owner said that while he wasn't open to a perpetuity deal, he was open to giving royalties until their money was paid back, since he didn't like borrowing money. Daniel also offered him a deal and said that he would give him $350,000 for 25% equity.
Lori Greiner offered him $350,000 for 20% with a $1 royalty. The Shark Tank investor also said she believed they would make a wonderful team and be a powerhouse together. When asked who he was more inclined towards, the entrepreneur said he believed Lori's offer was the best out of the three.
"Well, no, she's not Mr. Wonderful," Kevin said.
Ultimately, Zac made a deal with Lori Greiner and walked away with $350,000 in exchange for 20% and a royalty of $1.
Episodes of Shark Tank season 16 are available to stream on ABC.
