Lisa Binderow offered the Sharks 10% of Nicepipes in exchange for $100,000. She explained that she had phenomenal margins because she manufactured the warmers for $7.50 and sold them for $42. But she followed that up by disclosing that she had invested $300,000 of her money into the business and only garnered a sale of $80,000 since its start a year and a half ago.
The information made the Sharks question her valuation of $1 million, but she explained that she had seen the market potential in her classes. The answer didn’t impress Kevin O’Leary, who said the product wasn’t special because it was easy to duplicate. His dislike didn’t phase Binderow as she compared herself to Spanx creator Sara Blakely, who pursued her dreams despite criticisms. Mark Cuban asked Binderow her greatest business quality, and she answered that it was her entrepreneurial and management skills, which Cuban believed was too basic and didn’t point to anything specific. Throughout Binderow’s pitch, Lori Greiner and Barbara Corcoran encouraged her to stand up for herself as the male Sharks wore her down.
So, when Robert Herjavec, O’Leary, and Cuban bowed out, Binderow didn’t thank them for their time. Greiner encouraged Binderow to continue working on her business but didn’t find it investable, so she backed out but earned the entrepreneur’s thanks. Ultimately, Binderow admitted that she didn’t know how to value the business, and chose to go with a higher valuation for more wiggle room. Although Corcoran offered $100,000 for 40%, Binderow turned it down.
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