Greg enters the Tank in exchange for $300,000 and a 15% stake in the company. He has sold the product since 2017 and reaped sales of $2.1 million over his lifetime.
The Sharks love his margins. He sells them for $199 while manufacturing them for $73. It is his goal to expand market penetration and consumer demand worldwide through a Shark.
After evaluating the goods, the Sharks are impressed, resulting in an intense bidding battle. Greg accepts Lori’s $300,000 for a 22.5 percent stake after Daymond, Kevin, Anne, and Lori all make bids.
What is Terra Core Fitness?
The Terra Core Fitness is the culmination of what we know about human-machine training and strengthening.
It’s a balancing trainer that also functions as a bench. It works perfectly with dumbbells, kettlebells, medicine balls, TRX, and many other exercise accessories.
The Terra Core Fitness is built to commercial standards and is durable enough for any at-home gym. It’s ideal for crunches and planks and strengthening the abdominal, shoulder, and leg muscles.
The bottom side features push-up handles and additional activities that aid in the development of balance and agility.
Terra Core Workout has invented revolutionary fitness equipment that fits in a space as small as three square feet but engages four times the muscle tissues.
It can be lifted, balanced, benched, used to perform burpees, or even jumped on and over like a step.
It resembles a step with a gel surface for comfort while lying on it and for stability while performing balance exercises and hand-holds along the sides and at either end.
Both Anne Wojcicki, the guest shark, and Lori agree that it’s rather comfortable to use.
|Product/Startup||Terra Core Fitness|
|Investment Seeking||$300,000 for 15% in Terra Core|
|Final Deal||$300,000 for 22.5% in Terra Core|
|Shark Who Invested||Lori Greiner|
|Episode Aired||SEASON 11 EPISODE 8|
|Business Status||In Business|
Terra Core Before Shark Tank
Greg Nigro refers to himself as the “Sultan of “Sweat” due to more than two decades in the fitness sector.
He was a Gold’s Gym franchisee for several years and worked as an equipment salesperson, trainer, and consultant.
He’s going to the Shark Tank to market his new fitness product that aims to increase the effectiveness of workouts.
The TERRA CORE is an air-filled device that can assist you in performing traditional exercises and movements more effectively.
Greg launched a successful Kickstarter campaign for his invention before appearing on Shark Tank, but he needs a shark to help him take his business to the next level.
How was the Shark Tank Pitch of Terra Core?
Greg approached the platform, flanked by two fitness demonstrations, looking as though he had just escaped from one of the Zoltar fortune-telling vending machines.
Greg brought up a crystal ball, which he claimed would reveal the future of fitness, after requesting $300,000 in exchange for 15% of his firm.
However, he promptly removed his disguise and stated that he did not require a crystal ball to recognize that fitness trends are shifting.
Today’s consumers desire interactive apps and live-streamed information, as well as versatile and easy-to-use equipment that delivers rapid results and a pleasurable experience.
Greg then removed the sheet that had been covering his Terra-Core product. This single piece of equipment weighed only 28 pounds and measured 46 inches in length, but it enabled you to perform hundreds of exercises within a 3-square-foot space.
The innovative, dynamic, air-filled surface of the Terra-Core was extremely pleasant and engaged four times the muscle tissue as conventional workout methods.
His two assistants then demonstrated how to use the Terra-Core for various exercises, including bench presses, deadlifts, bent-over rows, burpees, planks, squats, lunges, and balance exercises.
All of the sharks desired to give it a try. Lori and her guest shark, Anne Wojcicki, agreed that performing a plank on an air-filled surface was far more comfortable.
Anne inquired about Greg’s past, and he informed the sharks that he had spent over two decades in the fitness industry as a franchisee for Gold’s Gym.
When he ultimately decided to create what he believed would be a superior workout product, he launched a Kickstarter campaign in 2016 and began selling units in 2017.
His Kickstarter campaign garnered approximately $95,000, and he has earned $2.1 million in sales to date.
Lori inquired as to where he sells his wares. Greg informed her that 38% of his sales were commercial, 38% were direct-to-consumer, and 12% were international.
Mark was curious about the expenses – both the purchase price and the manufacturing costs. Greg stated that he was able to reduce the pricing to $199 from $279.
He’d discovered that sales were significantly higher when the price was less than $200. Each unit costs $73 to manufacture. All of the sharks indicated that they believed his costs were excessive.
Lori inquired as to whether it was manufactured in China. Greg said that it was and that tariffs had been factored into the price. He believed he could bring the price down to $40-$45.
Kevin inquired as to whether he had earned any money this year. Greg disclosed that he earned $850,000 in sales that year and broke even. He forecasted $1.4 million in sales and a profit of $200,000.
His business struggled with cash flow, which slowed its growth. Lori inquired as to the status of his patent.
Greg informed her that he was the owner of a design patent and that a pending utility patent.
Daymond made the initial approach. He would offer Greg $300,000 in exchange for 40%!
Kevin referred to that offer as “savage,” but Daymond noted that he had seen numerous entrepreneurs appear on the show without requesting all of the funding they required upfront.
Kevin then intended to make an offer, but Lori cut him off and inquired about Greg’s promotional marketing efforts on social media.
Greg stated that he would respond to her question but first desired to hear what Kevin had to say.
Kevin stated that he would offer $300,000 for a 15% stake in exchange for a royalty of $20 per unit.
Greg appeared immediately unhappy by Kevin’s royalty requirement, but Kevin assured Greg that the fee would be waived once he earned $1 million. That is when Mark referred to Kevin as a rapacious savage.
While he may be a greedy barbarian, doesn’t he look fantastic on the Terra-Core?
Daymond attempted to justify his offer once again, but Greg stopped him off. He believed 40% was far too high.
Daymond advised Greg that he could counter, but Daymond chuckled and felt insufficient movement when Greg returned with 20%.
Anne raised her voice. She expressed concern to Greg about the fitness industry’s tendency for fads to enter, grow in popularity, and then vanish. Was Greg planning to release an app or a subscription service?
Greg does have a fitness app that was built by his crew. However, there was a sizable community who desired to upload their routines.
He was developing premium material and hoped to transition to a subscription model eventually.
Daymond abruptly stated that he would reduce his offer from 40% to 30%. However, Greg was still defending his product from being labeled gimmicky.
Lori interjected to discuss her Simply Fit Board, which earned $100 million in its first year and $180 million to date. Some of the other sharks scoffed at her product, but she dismissed them.
Lori advised Greg that if he created an infomercial, he could be quite successful. Then she made a counter-offer: $300,000 in exchange for 22.5 percent.
Daymond repeated his counteroffer of $300,000 for 30%, unusual because it was a poorer deal than Lori had provided.
Then Anne stepped up with an offer: $300,000 for a 17.5% stake, but she demanded a perpetual fee of $10 per unit.
When Kevin learned of this, he attempted to contrast his offer with hers by claiming that his royalty would expire eventually.
However, Greg was not pleased with the idea of providing royalties and pointed out that two of the bids were pure stock deals.
Lori stated that she admired Greg and desired to strike a deal. She informed him that she believed her offer was reasonable. Greg nodded and agreed to Lori’s offer.
Final Agreement: $300,000 for a 22.5 percent stake in Terra Core.
What Happened To Terra Core After Shark Tank?
Terra-November Core’s 2019 episode aired. It’s a little early to gauge its long-term performance following the show’s likely sales boost.
Because it is a costly product, it adds to the pressure of rapid sales growth.
However, with over 50,000 Instagram followers, the brand is well-positioned to engage current and prospective customers.
The Terra-Core “Tribe” currently has slightly over 1,900 members and communicates via a private Facebook group.
If the company can offer premium content that entices users to pay for the app, it can boost growth without relying on an expensive product.
Perhaps Terra-Core could benefit from Lori’s QVC expertise or via an infomercial, as she proposed.
The Terra-Core Fitness “system” was formerly priced at $279 but will soon be reduced to $199 per gadget, a price point that the sharks enthusiastically endorse.
The actual cost of manufacturing in China is $73 per unit, including tariffs, but the entrepreneur believes he can reduce it to $45 per unit.
Terra-Core Fitness is expected to “profit” $850,000 this year but will just break even. The next year, the company anticipates revenue of $1,400,000 and profit of $200,000.