On a cold December morning, Rener Gracie’s son wanted to go to the park. Rener put on his hoodie and left for the park. After the sun came out, he took off his hoodie but didn’t have anywhere to put it. This is when the idea for Quickflip Apparel was born. Using Quickflip’s proprietary conversion technology, their line of outwear options can quickly and easily convert into a drawstring backpack. The functional backpack design can hold various items and then can convert back to a garment when necessary. QuickFlip also offers additional garment options in addition to hoodies such as convertible crew neck sweatshirts and waterproof jackets.
After designing the product, Rener decided to pilot his outerwear line to see how the market would respond. Their initial order consisting of 5,000 units sold out in 2.5 months, generating $200,000. In order to help fund future inventory orders, Rener came to the Shark Tank seeking $500,000 for a 5% equity share in Quickflip Apparel. The patented product is selling directly to consumers online and is priced in a way that makes the margins attractive to potential investors, however, they are concerned about his valuation.
— Shark Tank (@ABCSharkTank) May 13, 2019
Rener has a four-step growth strategy in mind that will help to grow the company while reaching new markets:
- Step 1 – Direct to consumer (current reality)
- Step 2 – Promotional product industry
- Step 3 – Licensing of the technology
- Step 4 – Retail expansion
Although the Sharks are concerned that this product will get knocked off despite its patents, they love Rener’s spirit as well as the product. Multiple Sharks are interested in investing in Quikflip Apparel and extend offers. Kevin O’Leary offered Rener $100,000 for a 25% share, as well as a $400,000 line of credit. Robert Herjavec extended an offer for $500,000 for a 25% share as well. Renner felt that these are would be appropriate for a company that is pre-revenue but he is a revenue-generating company. Lori Greiner feels that he needs focus and she could assist him through her experience and connections. After extending him an offer and counteroffer for a $250,000 cash investment and a $250,000 line of credit in exchange for a 10% equity share. Rener accepts Lori’s offer.
Would you purchase one of Quikflip Apparel’s products? Do you think that Rener made a good decision about the Shark that he selected? Start the conversation in the comments below!