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Lisa Binderow's Shark Tank pitch for NicePipes Apparel sparked heated exchanges in season 8 episode 13. Seeking $100,000 for 10% equity, she presented yoga-inspired leg and arm warmers made from the same material as yoga pants. Her $1 million valuation against $80,000 in sales through 14 retail locations drew immediate criticism.
"There is no scenario on this planet where this is worth a million dollars. I’m out", Kevin O'Leary stated.
Following Kevin, all other four investors exited the offer as well. The company's 18-month track record included a $300,000 personal investment with $65,000 in inventory. Barbara Corcoran offered $100,000 for 40% equity with a Grace and Lace partnership requirement. Binderow declined the deal after her counter of 25% equity was rejected.
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Shark Tank season 8 saw Kevin O'Leary and Mark Cuban reject million-dollar valuation for $80k business
Binderow came armed with detailed business metrics during her Shark Tank presentation. Her yoga-inspired warmers showed promising cost reduction, with manufacturing expenses dropping from $10 to $7.50 per unit through production optimization. She had invested $300,000 of her own money into the business, with $65,000 specifically allocated to inventory management.
The product line featured strategic pricing tiers. Arm warmers retailed at $32, while knee-high leg warmers sold for $42. The premium thigh-high leg warmers commanded $46 per pair. Each product utilized Supplex material, offering moisture control and UV protection benefits that differentiated them from standard athletic wear.
Sharks' reactions
Shark Tank regular Robert Herjavec addressed the valuation head-on.
"You lose all credibility when you stand there and tell me you think this is worth a million dollars. It doesn't make me trust you," he stated before exiting the deal.
Robert continued,
“It's so incomprehensible…Well I just don't know how you'd make a valid decision to say it's worth a million dollars. I just don't get there. I can't take it seriously. I'm out.”
Mark Cuban focused his critique on the sales performance, questioning how 14 retail locations generated only $80,000 over 18 months of operations. He also advised Binderow to concentrate on selling her existing inventory before seeking additional investment.
Lori Greiner examined the products with interest but expressed concerns about the investment opportunity. She acknowledged the quality of the warmers while highlighting the challenging market dynamics. The discussion shifted from product potential to fundamental business metrics as each Shark evaluated the proposition against their investment criteria.
Barbara Corcoran broke from the pack with a concrete proposal. She offered the full $100,000 but demanded 40% equity, quadrupling Binderow's initial offer. The deal came with a strategic partnership requirement with Grace and Lace, another successful Shark Tank company.
Binderow attempted to negotiate, suggesting 25% equity instead. However, Corcoran maintained her position on the 40% stake, leading Binderow to walk away without a deal.
Post Shark Tank performance
Per Shark Tank Blog, despite leaving without a Shark partner, NicePipes showed initial growth after the episode aired. The company expanded its retail presence from 14 to 40 stores. However, this expansion proved challenging to sustain. By May 2018, signs of struggle emerged as the company's social media activity ceased and Amazon product availability decreased.
November 2018 marked a significant turning point when NicePipes halted operations. Yet the story took an unexpected turn. The company later resumed business operations, accumulating $4.2 million in lifetime revenue through subsequent years.
As per Lisa Binderow's official site, following the birth of her daughter, Binderow transitioned into a new career path. She obtained certification as an International Board Certified Lactation Consultant, establishing her own practice to support breastfeeding mothers and provide postpartum care services.
Fans can catch new Shark Tank pitches on the ABC network.
