4.6 • 12 Ratings
🗓️ 29 April 2025
⏱️ 5 minutes
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These small businesses were lucky enough to snag deals on Shark Tank. Tariffs will upend their businesses and suddenly they’re scrambling to survive.
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0:00.0 | Here's your Forbes Daily Briefing for Tuesday, April 29th. |
0:05.2 | Today on Forbes, 10 Shark Tank companies caught on the front lines of Trump's trade war. |
0:13.1 | Donnie McCall drove into Shark Tank in 2012 with a pickup truck and a dream. |
0:18.8 | He wanted $100,000 for 10% of Envisarack, a collapsible cargo rack aimed at |
0:24.9 | tradespeople. The sharks liked what they saw, but hated the high production costs that came |
0:29.9 | with McCall's decision to make his product in his hometown of Sparta, North Carolina. |
0:35.5 | McCall said his revenue was about $50,000 in the first year, |
0:39.2 | at a landed cost of $250 per unit. Kevin O'Leary pushed McCall to move manufacturing overseas, |
0:47.2 | saying it would cut expenses nearly in half and open the doors for working with distributors. |
0:52.7 | O'Leary suggested, quote, let's just say that a |
0:55.4 | manufacturer in Asia could make that for $150. That puts you in business right there, my friend. |
1:02.6 | McCall didn't budge. He was committed to creating jobs in the U.S. and believed customers would |
1:07.9 | pay more for American-made quality. The sharks weren't convinced. |
1:13.0 | None made an offer. |
1:14.7 | Barbara Corcoran said McCall was too resistant and close-minded to be a good partner. |
1:19.8 | O'Leary told him he wasn't willing to do what it takes. |
1:23.2 | Robert Hergevac, whose father worked in a factory, said he respected McCall's values, |
1:28.3 | but couldn't back a business that ignored global realities. |
1:31.8 | Even Mark Cuban, who admired the mission, said the numbers just didn't work without going offshore. |
1:38.6 | For years, the sharks, just like most private equity firms, advised entrepreneurs to move manufacturing overseas to save money. |
1:47.1 | It was good advice. |
1:48.6 | Lower costs overseas boosted profits and gave consumers cheaper goods. |
... |
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