Duct tape is great, sure, but its biggest problem is water. Duct tape can easily be removed with some water. Meet FiberFix, which is a home-brewed remedy for sealing up any leaks or repairing any items. FiberFix is the next supposed major step towards an invention like duct tape, which we all know and love – and probably use a roll every so often to fix anything around your house. How is FiberFix posing a threat to duct tape? Read on to find out more…
FiberFix on Shark Tank
Spencer Quinn and Eric Child, of FiberFix, have just entered into the Shark Tank. They are looking for $90,000 for a 10% equity stake in their company.
FiberFix is the world’s strongest repair wrap. It is 100 times stronger than duct tape, and to prove it, Spencer and Eric have a presentation ready for the sharks. They have brought a simple hammer composed of two 2×2 boards, formed to make a simple hammer but then wrapped with the FiberFix. The FiberFix looks suspiciously similar to simple adhesive wrap. To demonstrate that FiberFix actually works, Spencer then drives the homemade hammer through two concrete blocks successfully after a few swings. Of course, the sharks are impressed by this – two concrete blocks were just split in half with only some wood and FiberFix; even Kevin demands to “stop the madness!” Some of the examples given that FiberFix can fix include a leaky pipe, any broken tool handles, cracked hockey stick, or even broken furniture. Eric pulls out a sleek looking stool, which he says broke in two places and was fixed with the Fiberfix – he then sanded it down and painted it to look renewed. Spencer then distributes some samples of FiberFix to the sharks, who find the pitch very amusing.
Robert asks how much have been sold over the past few months, to which Eric replies that they have sold over $100,000 worth of units. Robert points out that they are still brand new. Kevin asks how can FiberFix possibly be better than duct tape, and Spencer brings out the demo that the two from FiberFix had brought with them; a broken pole, fixed with duct tape. The pole still bends at horrible angles, meaning that eventually the tape would wear off or break down. The same pole has been fixed with FiberFix, and is a much stronger repair and seems much less wobbly than the duct tape counterpart. Robert asks to see the FiberFix pole, and remarks that he finds the fix incredible. Eric lets the sharks know that FiberFix is actually a specialized blend of resin along with industrial grade fibers.
Mark asks about the process of using FiberFix; after purchasing it, what comes next? To use FiberFix, remove the wrap from the pouch, dip it in water, which activates the resin, and after about 5 minutes FiberFix begins to harden on itself. The two from FiberFix point out that it is recommended to wear gloves, and each packet of FiberFix comes with gloves; Robert asks if you could work with the FiberFix without gloves, and Eric says that while it is possible, he would not recommend it due to the stickiness of the FiberFix. Robert asks what is the pricing for FiberFix, and Spencer says there are three different sizes; the 4 inch costs $9.99, the 2 inch costs $4.99, and the 1 inch costs $5.99. Mark asks about the cost for producing each FiberFix packet, which Spencer reveals to be around $2.99, but wholesales for $4. Lori asks about the progress of FiberFix, which Spencer says that so far in FiberFix’s limited existence, they have entered more than 400 independent retailers, but that they are now set up as a vendor for Home Depot, and they have a public offering coming to another 240 stores.
Kevin is the first to immediately make an offer; he will give them the $90,000 they are asking for in return for NO equity, and instead Kevin would receive $.70 per unit sold until he recoups his $90,000, at which that turns to $.20. Robert points out the thrift in the deal, and then says that he believes that he himself would be the single biggest customer for FiberFix since he uses so much duct tape on the weekends for his race cars. Robert offers the $90,000 for 10%, contrasting Kevin’s offer. Kevin then offers his input, saying that offering equity at the beginning of the founding of a company can be very expensive in the long run (which is very true). Robert says that one of his friends runs a $60 billion hardware company and says that when he visits this same friend’s house, duct tape is everywhere.
The FiberFix Packaging, which includes a pair of latex gloves
Lori asks how FiberFix can be removed, and Spencer admits that it is tough and he has never actually gotten FiberFix off of something. Robert asks for them to consider the deal, the two say that they would like to wait to hear the offers from all of the Sharks, and then says that there is actually one other development in the business. Spencer reveals that they recently received a purchase order from QVC, a home shopping network that Lori has a big hand in, which draws a reaction from her. Lori takes a look at the order, and says that QVC indeed placed a test order. Daymond says that if they have already committed to QVC, then he is out – Daymond actually has a deal with HSN, which is a rival shopping network. Lori offers her input, saying that if the two do make it onto QVC, QVC would make them very wealthy. Lori then offers $250,000 for 18%, with the reasoning that 1. She knows the power of QVC, but she knows the power of QVC when a Shark from Shark Tank is working with a new company, and 2. The power of the infomercial spot market. Lori has extensive experience with home shopping through QVC and infomercial programs, and as such has a large lead over the Sharks when it comes to home shopping. Lori says that she believes that FiberFix would benefit from having a partner like her, and Robert raises a point; which gender is going to buy the FiberFix more often, men or women? Both of them admit that they think men would be more willing to purchase the FiberFix, while Lori says that she actually thinks that both would buy it equally. Robert continues on, asking where do the two from FiberFix think that men shop – do they shop online, infomercials, or from hardware stores? Lori insists that Robert is wrong, while Kevin says that any Shark can get a contestant onto an infomercial.
Mark asks how the two are going to pay for commercials, saying that $90,000 or even $120,000 won’t get them the infomercial they need. Kevin says that, as usual, all roads lead back to him, since he does not require any equity, and reaffirms that his deal might be the best. Robert brings up the $60 billion hardware company again, saying that he has access to over 16,000 locations, and that the path of least resistance is not entering the infomercial market.
Robert says that he would like to revise his offer and add a condition, saying that he thinks the two could use more money to help develop their product and find better marketing, but also use that money for inventory. Robert offers $90,000 for 10%, and extends a $250,000 line of credit that can be used from the pair at any time. They ask for a minute to talk about the offers, and leave the Shark Tank to discuss amongst themselves.
Spencer and Eric then re-enter the Shark Tank, saying that they like the line of credit, but as a company that
is just starting out, they feel like they could use a bigger line of credit. They offer Lori $120,000 for 12% in the company, plus a $2,000,000 line of credit. This draws negative reactions from all five of the Sharks, who then say that they are getting close to blowing their chance. Mark points out that they did indeed undervalue their company, and that the two realized it as they were discussing. Mark folds out of the deal, saying that he thinks the two made a huge strategic mistake and that could cost him millions of dollars in the real world.
Robert asks the two to reconsider his offer, and the two insist that they could really use the line of credit. Robert asks about Kevin’s deal, and the two say that they actually did not even consider Kevin’s deal amongst themselves, which causes the Sharks to all laugh. Eric goes on to say that he thinks a type of deal like Kevin’s would be counterproductive, since cash would be moving out the back door – Kevin points out that if they did $100 million in sales, Kevin’s deal would be better due to maintaining that equity (the equity they had been asking for would be worth $10 million). Kevin points out that he is a financial advisor, and he does understand money; the pair from FiberFix don’t.
Lori says that she would do the $120,000 for the 12%, but would not offer a line of credit immediately. If FiberFix were doing well, then she would offer the capital to FiberFix to allow them to keep producing orders.
Robert is the next to exit. He asks if the two feel that the infomercial is the route to go, which the pair insist that they feel is the best way to go about the startup phases of their company. Robert says that without a product to advertise and a place to purchase it, they are hurting their sales, and exits the deal.
Lori restates her deal, asking if the two actually came today to close a deal; she says they are close, and that Lori has done a lot of good for a lot of products to come onto Shark Tank and then move to QVC. The two say that with the $2 million line of credit, they would be able to easily get onto television, but Lori says that she would not offer even her most trusted partners a $2 million line of credit. She simply would fund the purchase orders, and nothing more. Mark points out that the two are getting greedy.
Eventually, the pair from FiberFix settle upon Lori, receiving a $120,000 investment for 12%.
FiberFix Now in 2018 – After Shark Tank Update
FiberFix has absolutely exploded in popularity. Not only was I able to find it on Amazon, but I also had to make a trip to a local Walgreen’s (a pharmacy store) and I found it there. I was a little bit stunned. There is no question FiberFix is doing extremely well for itself following Lori’s investment, but unfortunately no specific numbers are available unlike those that were given on Shark Tank. The prices of FiberFix have gone down and also include a multi-pack, so it can be assumed that the costs of manufacturing have dropped after an investment from Shark Tank.
