“Next year we’ll start international” – When Shark Tank entrepreneur Steven shared the vision of Pick Up Bricks

Shark Tank season 15 episode 8, aired on December 8, 2023, featuring Aurora and her brother-in-law Steven, who pitched their product, Pick Up Bricks. Seeking $200,000 for 10% equity, Steven introduced their product stating:

“Unlike a normal vacuum, our patented design separates the dirt and dust from the toys, leaving you with cleaner toys and a cleaner floor. Keep the dog hair and cookie crumbs out of your toy bin.”

The product separates dirt and dust from the toys, making cleanup more efficient. During the pitch, Steven outlined their growth strategy, stating,

“So the plan is next year, we will start international. We'll start with the UK and Germany. And then over the next year, and maybe with the help of a shark, the expertise, we'll get that manufacturing cost down to where there's margin that we can go to retail.”

After multiple offers from the Sharks, Aurora and Steven secured a deal with Mark Cuban and Lori Greiner for $200,000 in exchange for 16% equity.

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Pick Up Bricks' Shark Tank pitch

Aurora and Steven began their pitch with a demonstration. Steven, barefoot, stepped on scattered Lego pieces to highlight the familiar pain parents experience.

“Sharks, we're here to talk about pain,” Aurora said.

They then introduced Pick Up Bricks, emphasizing its functionality as a cordless, durable vacuum that separates dust from toys, making cleanup easier for children. The Sharks were given their own units to test, and Kevin O’Leary remarked:

“You know, just picking up the bricks is fun.”

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Cost, sales, and profit margins

The Shark Tank entrepreneurs revealed that Pick Up Bricks retailed for $99, with a manufacturing cost of $32.64 per unit. They sold directly to consumers, making about $57 per unit. Kevin questioned whether they had considered retail distribution, to which Steven replied, “Not yet.” He said:

"So you're not selling a lot of these in retail. You're selling them direct, right?"

He acknowledged that the current margins were insufficient for retail but planned to reduce manufacturing costs to make it viable.

Lori Greiner asked about their sales performance, and Aurora disclosed that they started selling in the summer of 2022. Their cost-per-acquisition (CPA) had dropped from $26 to $11, with a target of going below $10.

Mark Cuban noted that this meant they were making a profit with every sale and asked about their total sales. He said:

“And most of that was during Christmas?”

Steven reported they had sold 348,000 units, with 75% of their sales occurring during the holiday season.

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Investment and future plans

Barbara Corcoran inquired about their financial investment, and Aurora stated they had invested $495,000 into the company. They had no outstanding debt or credit lines but needed funding primarily for inventory to prepare for the holiday season.

Kevin O’Leary expressed concerns over the company's valuation. He explained that for his investment to be worthwhile, they would need to sell the company for $20 million, which he considered unrealistic due to their tight margins. He ultimately declined to invest.

Mark Cuban then asked about their vision for the future. Steven explained the plan to expand into the UK and Germany, with hopes of lowering production costs and eventually entering retail. He also stated that they aimed to sell one million units within three years, which would equate to $100 million in sales.

Daymond John suggested a licensing approach, where an established manufacturer could handle retail distribution while they continued direct sales. Steven confirmed they were open to the idea.

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The final deal in Shark Tank

Barbara offered a $400,000 credit line in exchange for 20% equity. Lori and Daymond both proposed $200,000 for 20% equity, with Lori mentioning she could extend credit if needed. Mark then made an offer of $200,000 for 12% equity.

Lori adjusted her proposal to $200,000 for 15%, stating, “I’m worth it.” Daymond matched her offer. Mark and Lori then teamed up in Shark Tank, offering $200,000 for 18% equity. Aurora countered with 16% equity, which Mark and Lori accepted.

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Shark Tank airs every Friday at 8 pm EST on ABC.