DomeDock Shark Tank Final Deal – SE16EP13

Next up in episode 13th was another product, that we had no idea we’d want, but truly, if we look around, it can be one of those products that everyone would want in their home.

Key Highlights

• John Giles and Chelsea Giles came in asking for $100K for 5% of the share in their company – DomeDock.
• The founders valued their company at $2M, which shocked most of the sharks.
• The company has generated over $7.5M in sales since its inception in 2019.

Getting Started

It was rather a short pitch, or I might say, more direct, as Sharks heard the pitch, and without wandering off the topic, remained to the point. Well, cannot say for sure if I liked this approach or not.

Anyways, DomeDock specializes in creating a plastic hanger for your caps and to learn more about the product, click here. You know, my son loves caps and he might have a dozen of them, if not more. Although I never thought of it as a problem, but it was surely frustrating when he left them unattended anywhere he wanted.

Guess what, I’ll be the one going to their website and making a purchase after completing this write up.

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The Humongous Valuation

As Kevin defined this valuation by saying “Product is ingenious, but 2M net worth for a piece of plastic”? I felt that, but, as you might have read above, DomeDock has a lifetime sale of $7.5M. Now, tell me about a business selling a plastic hanger having this many sales. Not many, right?

And you know what, the retail price of this product is $24.99 and how much it costs to make? Just $2.91! Man, you got to be kidding me!

Anyway, in 2019, DomeDock just had a sale of $136M and moving on, in 2020 when they launched their website, they generated a sale of around $1M. After this, there as was no stopping as in 2021, they did $1.4M and in 2022, $2.1M.

Here Comes the Twist

In 2023, they did over $2.08M, a record for their company. But in 2024, their projected sales plummeted to $1.4M to $1.5M.

Know why?

Because knock-offs; people who copy the product come into the market. Unfortunately, good and bad people exist in this world and there is very little you can do about them. Now, let me tell you beforehand, it was something that truly knocked off the Sharks as well.

See the difference? Yes, that is how bad knockoffs are for your business. And even though the owners did have the patent and rights for the product, they could only bring down about 100 fake retailers selling their product in all these years. Not much, right?

Have They Got the Solution?

Apparently, yes, they got the solution. They want to enter the retail stores, most likely the sports shops to get rid of the knock offs. But can it help, surely it can as it would drastically increase their sales. But how would it stop the knock offs?

Simple; knock offs wouldn’t be able to get into the retail as they don’t own the product. They have simply copied the idea and started manufacturing the exact same product.

So, Did Sharks Buy This Idea?

Yes, and no. But most sharks, no, as they had already made up their mind not to become a part of this fuss. Mark initiated the ritual by saying that he didn’t think of this business as big as he thought it would be, and for this reason, he opted out.

Next up was Robert who questioned the company’s SKU. As you might know till now that DomeDock only sold a hanger to hang your caps, and to avoid cluttering them in your wardrobe. So, he wanted more which DomeDock wouldn’t provide and he opted out as well.

Lori just gave them good advice about hiring a company to take off the knockoff of the market. And as for them, she wanted them to fully commit to the retailing idea, but she wouldn’t invest.

Next, Kevin first opted out but in spite of Daymond who offered the amount for first 25% and then for 20%, Kevin said that he would do it for 15%.

Well, something is better than nothing and that is what Chelsea and John would’ve thought. So, they gladly accepted Kevin’s offer.

DomeDock Current and Estimated Revenue

The biggest problem DomeDock is facing right now is the knock-offs, simply call it the fake products. Despite that, their product has quite insane numbers, and using my accounting skills, I’ve done a ritual assessment below: