Golfkicks Before Shark Tank
Golf is an old sport that traces its origins to the 15th century. Being so old, golf got a deep culture that golfers have had to adhere to if they wanted to be allowed onto the golf course such as strict dress codes. However, times have changed and golf courses are not as strict with their dress code as they used to be. The laxity in rules is only limited by what clothing works and golfing shoes have stayed consistent because that’s what works.
Tyler Stuart and John Krosky wanted to change golfing standards in fashion. You see the problem is that golfing shoes need cleats so that people don’t slip on the grass but shoes with cleats are very specific. Tyler and John knew that golfers’ options were limited when it came to shoe choices and they wanted to change that.
Tyler and John created cleats that could be screwed onto shoes making them usable on a golf course. Golfers could just buy the shoes that they wanted and then attach the cleats onto them letting them stay stylish as they played golf. They named their product and business Golfkicks.
Golfkicks started off well but had problems. Its product had been such a success that it had sold out and they needed to ensure that it was always available. They also wanted to change to making metal cleats which would need a completely different manufacturing process. They needed capital for this and so went to the Shark Tank to see if an investor would bite. They swam with the sharks on the 5th episode of the 11th season.
Golfkicks on Shark Tank
Tyler Stuart and John Krosky valued their company at 3,750,000 when they went to Shark Tank. Their pitch started with them telling the sharks about the way people were done with golf shoes. They then showed the sharks how they turned sneakers into trendy golf shoes. After that, they showed the sharks how even thousand-dollar sneakers could be turned into golf shoes. Even flip-flops could be turned into golf shoes.
They then gave the sharks some samples to feel. Lori said that she was a golfer and she found the shoes interesting. She asked them if she had to drill a hole into the sole. Tyler said that they had a version that had sold out and a person would have to drill holes that were at least an inch thick. He also said that the Golfkicks were put onto rubber shoes.
Matt Higgins asked what they were using to create the holes and Tyler said that they packed the device with the Golfkicks. However, there was a new version of Golfkicks that was going to be released and it would not need a pilot hole. Matt Higgins then asked them if they were stopping the problem of people not wanting to buy special golf shoes. Mark Cuban then explained that it was a fashion problem as well.
Tyler agreed with Mark that the cool factor was a major thing to consider. Lori asked if there were any restrictions on golf courses regarding dressing. Tyler said that there weren’t any restrictions. He knew that he had people who complained about dress codes and even cars that couldn’t be allowed but its anti-establishment tone is what made people love the product.
Kevin then asked them about their distribution because he had seen the distribution of golf products before and he knew that it was tricky. Tyler said that they had only had their product for 3 months and they had them on their website but they planned to move to Amazon and other retail stores. Tyler said that he was determined to get big-box retailers to stock his product.
Daymond said that he thought that the business was too new to have a valuation of more than $3,000,000. John said that they had sold products worth $120,000 in the 3 months that they had done business. The sharks thought that the amount was very impressive.
Tyler said that they hadn’t expected that they would have sold out but they did. They would be expecting $1,000,000 in revenue in their first year. Lori and Daymond asked them what their predictions were based on. Tyler said that unless they made a major mistake that would be the figure that they realized in sales.
Mark Cuban asked what the kit sold for and he was told that its retail price was $29 and it cost $5 to make. Kevin asked if they had counterfeiters competing with them. Tyler told him that there were none yet. Lori then asked if they had a patent. Tyler said that they had a provisional 2018 patent and a provisional 2019 patent.
Lori then asked if there was anyone else who had a patent for a product where a cleat was being anchored into a shoe. Tyler confirmed that no one else was doing it. Daymond then said that he hated golf. Lori said she thought it was relaxing but Daymond said that he did not find it that way.
Daymond then left. He thought that Tyler and John needed someone who enjoyed the business and he could not relate to it. Matt Higgins also left because he could not relate to the business. Tyler then said that they were planning to cross over to other sports. Mark Cuban asked Tyler to tell him more.
Tyler said that they were working on a version that could do pivots, and so they could enter sports such as soccer. They would also sell them to children because children’s shoes were always getting worn wearing out. Kevin then left the table. He said that they had more of a product than a business and the way the deal was structured it was hard for him to maneuver so he wasn’t making an offer.
With Kevin out, Mark Cuban then asked them what they needed. Tyler said that they were looking for mentorship which would be crucial as they went into the large-scale retailers. Lori offered them $300,000 as a loan to be paid back at 8% interest. For the loan, she also wanted 5% of the business and a $1 royalty for every unit sold.
Mark Cuban said that they hadn’t explained to him what they really needed because cash is not everything and from his perspective, it did not look like it should have been a business priority. He didn’t think that they had told him what they really needed for the business to take off. Tyler said that the cash would be helpful because they wanted to change components with metal screws. Lori then changed her offer and asked for a $2 royalty but the other aspects stayed the same.
Mark then offered $300,000 for 15% of the company. Tyler asked him if he could accept $300,000 for 12% of the company. Mark said that he could lower it to $300,000 for 13% of the business. Tyler accepted his offer. Tyler said that he was happy to have Mark Cuban who he was sure would boost their sales.
Golfkicks Now in 2023 – The After Shark Tank Update
Golfkicks looked like it was ready for a giant leap in sales before it partnered with Mark Cuban. Only a few distribution problems were holding it back. Those problems look like they have been solved. It is also now available in major retail stores such as Amazon. On Amazon, it has been given a 4.5 out of 5-stars rating.
Golfkicks has increased its line of products as it had originally intended to. It is now selling socks, hoodies, and even t-shirts. It managed to venture into other sports and now offers baseball traction kits but the original Golfkick Cleats are still available. It has amassed over 44,000 followers on Instagram.
Golfkicks has had 3 rounds of investment since its time on Shark Tank. It has raised $550,000 in its rounds of investment. The company was having great sales when it was on Shark Tank and so would have attracted other investors who wanted a share of their pie.
Golfkicks is located in Denver Colorado. It has been featured on Hypebeast, Golf Digest, and PGA Tour. The company has been valued at $2,100,000. It continues to generate revenue for the business owners as it lets people look stylish on the golf course. Hopefully, the trend spreads on.