Transcript

00:00 What is happening well hello. There. Hey guys that's an entrance hey sharks hi hi. I'm Nikki Lynn I'm rusy newick. We're from Basalt Colorado and we're asking for $200,000 in exchange for 20% of our company Kitty Casas that's right sharks. We're just a couple of tattooed bikers that have a serious soft soft spot for the kitties.
00:35 We were so frustrated by the lack of quality pet products. There had to be something better out. There. There was nothing something cleanable nope stackable negative durable not even close and so Kitty Casas was born that's right Kitty Casas are a modular stackable Cube system. For your cat. You can use them individually or you can stack up multiple cubes in hundreds of different ways and they're super cute and modern and come in tons of different colors and they're virtually indestructible so who wants to help us claw our way to the top well done. So let's talk about Kitty sales how much have you sold of these things $600,000 over what period over what period year and a half two years we had a we had a hiccup in our second year when we had partnered with a Plastics Company. There wasn't a lot of sales what about last quarter last 3 months well last 3 months. We're at 200,000 look good few. How'd you guys get into this. We've run a no kill animal shelter for 20 years for thank you. After going through every product on the market that was ever made there was nothing. Like this we really made it for ourselves and then everyone who adopted a cat came in and said oh I want to buy one of those cute little things and then we put them on our shelter website and sold out.
01:55 Then we said just sort of Grew. From there this was really just a solution to cleaning the cat rooms. We can take these out side. We can put them in bleach we can power wash them uh and you just can't do that with carpet and cardboard. So like I'm a cat lover I've had a lot of cats yeah. They like it because it's a little enclosed space like they're always going into little tight. It's a whole new scene for the cats and why does it cost you to make a unit. We have three different prices. The bedroom is about 10 bucks.
02:24 The one with the scratchy post is 11 bucks and the third one. The little top bed is about five bucks okay and what do you sell those for $39 49 and $22.99 so you should be making money. You guys are making money. Then uh this year we've been the first quarter if you did $200,000 in sales mostly direct with the margins you have we're doing mostly mostly direct um. You said you had problems in your second year. I our second year we had we had a very big problem. We were doing these uh rotation molded cubes and we took them to a design show in Germany.
02:55 Um we had a very large Plastics Company approach us they are huge and they basically said we're going to take your product and we're going to turn it into an injection mold you're going to buy from us. You can use our distribution. Network in the US and we'll give you a royalty for European sales and they strung us along for a year and then basically stole all the intellectual property. They took it and gave you nothing yes. We had to walk away from the deal we had to spend the next year building our own own molds redesigning everything wait. A minute do you have a patent we do why haven't you done cease and assist we have and choices were you pursue this billion doll European plastic. I'd like to know what you want to do with the money um expand. It's Nikki and I and we have one it Guy and um the big box stores that we have done. It's Tricky and the logistics why do you have to go into big box stores because these margins you need. The money for support is that where you would deploy the money. Additional support and employees would absolutely be wonderful to help with expansion and sales that's probably our biggest biggest hurdle at and if you weren't going to go into the retail space. How would you use the money redo.
04:06 The website continue to build out our social media. I like to invest in people who are passionate about what they get involved in and clearly you're very passionate about cats. But I am allergic to cats. I don't have a cat. I don't know enough about the space. So I wish you guys the best. But I'm out thank you sir. When I look at the margins. You don't make a lot of money selling to to retail. That's the problem I don't like retail for this. I don't like the size of the product that's exactly why we went to that takes up a lot of floor space. But this thing is very interesting on a direct to Consumer basis. The numbers work look. I like it. I'll make you an offer. There's two of you I want to be the third partner I want 33 and a 3% and I'll give you 200k and I will help you blow this up direct to Consumer and you make a deal with the cat. Devil.
05:02 I love cats and by the way cats love me too I want to know what the cat lover thinks well when you go to ship them. They don't collapse at all. These do these do those do can you show us these fit in this retail box. What does it cost then for your shipping and handling shipping and handling is around $6 OR7 Lori. What are you doing I'm talking I'm asking questions. I'm just saying look you know one of the things I start to feel. I'm not loved and and when I don't feel loved we have to get she loves cats and if Lori wants to compete Bring It Forward I'm trying to help her move along well. She's debating whether she's going in or going out I'm going to drop out for one reason. Only I hate cats when I was very young. I found a cat in my bed. I had no idea how it got there. That was the freakiest thing that ever happened to me to have a cat right there I can't get over it. This isn't for me. I'm out okay I'm going to make you an offer. This is really exciting. This will be the first time a cat actually died waited so long okay well.
06:08 She's doing that guys my brother loves cats my brother posts 947 cat. Pictures. A day can we send your brother for example yes. But I hate the cat and pet business brutal business for those Reasons. I'm out understood Lori while we're still young please. Um. I think that potentially I could sell this while in QVC for one big reason. So many pet lovers. I'm going to make you an offer 200k for 33 and 13% just because he's such a cat hater. So I'm going to match exactly what he did you're not doing them. Any favors Laura would you 25 I I would like to be an equal partner with you you want to partner. It's going to be in the trenches with you. I feel really good about the 33 and the 3% so that we're all equal Partners. She has novity how about 30% Lori done y cat. Awesome thank you L yeah thank you. This means everything it's incredible 3 years ago. This was nothing and now we have a deal with loron Shark Tank I'm really heartbroken. I got to tell you you cannot do a deal with something where you hate the animal. No I love the animals you don't you just love money.