Shark Tank holiday episode 512 featured Tipsy Elves creators Evan Mendelsohn and Nicklaus Morton bringing the iconic and omnipresent Ugly Christmas sweater to the Shark Tank.
Once upon a time, a very long time ago, ugly sweaters were given and worn without irony or a derogatory name.
As children who got flashy and overly cheerful holiday gifts grew older, they began mocking an earlier fashion trend by donning ugly sweaters.
Evan Mendelson and Nick Morton are two buddies who capitalized on anti-holiday sentiments and utilized their particular abilities to develop and expand the lucrative firm Tipsy Elves.
At holiday events, Evan was delighted by his peers wearing hideous, bright Christmas sweaters.
He believed that capitalizing on a unique niche market that at the time appeared to be a word-of-mouth humorous fashion trend may be an excellent economic opportunity.
At the time, Evan was an attorney with freelance experience in Search Engine Optimization (SEO), the digital marketing strategy aimed to increase a company’s visibility on Google and other search engines.
He called Nick after discovering that Christmas sweaters were being looked for online at a significant rate prior to the holidays.
Tipsy Elves was launched by two friends from their college years at the University of California, San Diego.
Before they knew what they were doing, they reached out to old business school acquaintances, used Nick’s family connections to find an economical Chinese supplier, and invested $140,000 of their own money to launch the business.
Evan and Nick designed the sweaters using a combination of goofy, garish, and irreverent patterns using premium fabrics.
They sold them and donated a percentage of the revenues to Save the Children, an organization that provides desperately needed winter clothing to disadvantaged children.
The first year Tipsy Elves was in business, they sold $380,000 worth of ugly sweaters. The following year, they sold $900,000 worth of ugly sweaters.
The majority of orders originated from Amazon.com. Before entering the Shark Tank, both Evan and Nick had resigned their jobs and were working the firm full-time.
What Is Tipsy Elves?
Tipsy Elves is a firm that takes the traditional ugly Christmas sweater and gives it a completely modern twist.
Tipsy Elves provides whimsical and one-of-a-kind sweaters that stimulate interesting conversations among their wearers.
There are over 200 countries where these sweaters are available for $2.
|Company Name||Tipsy Elves|
|Entrepreneur||Evan Mendelsohn and Nick Morton|
|Product||A funny and quirky collection of Christmas sweaters|
|Investment Asking For||$100,000 For 5% equity in Tipsy Elves|
|Final Deal||$100,000 For 10% equity in Tipsy Elves|
|Episode||Season 5 Episode 12|
|Business Status||In Business|
Who Is The Founder Of Tipsy Elves?
Nicklaus Morton and Evan Mendelsohn founded Tipsy Elves. Evan graduated from law school and worked for a prominent law firm in California many years ago. Everything he wanted in life turned out to be the polar opposite of that.
The dentist Nicklaus Morton had a private practice. The two were dissatisfied with their careers and sought a unique and interesting opportunity.
Evan worked as a specialist in search engine optimization on the side during this time. The search for trending terms on Google led him to ‘ugly Christmas sweaters.
The remainder of the story is history. Nicklaus Morton, Evan’s fraternity brother, taught him how to use Adobe Photoshop to design ugly sweaters.
There is no question that the firm encountered a few obstacles on the way. It is a long-standing custom that dozens of companies have adopted to wear ugly Christmas sweaters.
Nicklaus and Evan took their concepts to the next level with absurdity, wackiness, and hilarity. The two created a website for their company in 2011 and, within a year, had generated revenue of $800,000.
Evan and Nicklaus have developed a collection of ugly Christmas sweater dresses, adult onesies, and pajamas, along with Christmas sweaters.
Tipsy Elves Before Shark Tank
The ugly Christmas sweater wasn’t always a rage. Before this Shark Tank episode, which aired during the 2013 holiday season, ugly Christmas sweaters were still making a comeback.
The ugly Christmas sweater is now worn by all-metal bands, wrestlers, universities, and even products.
Tipsy Elves probably broke the mold of ugly Christmas sweaters as the first brand to do so before numerous imitators followed suit.
How Was The Shark Tank Pitch Of Tipsy Elves?
Nick and Evan entered the Shark Tank seeking an investment of $100,000 for a 5% stake in the business.
The sweater models arrive dressed in various sweaters and distribute sweaters and hats to the Sharks.
Evan and Nick were ecstatic to make it onto Shark Tank against all chances, appearing on stage with a traditional ugly Christmas sweater and bomber caps.
The duo informs the judges that they are seeking $100,000 in exchange for a 5% stake in Tipsy Elves in order to expand their successful business.
The notion of Tipsy Elves is that the sweaters were created by Santa’s elves while they were slightly inebriated. Kevin referred to the product line as “horrible,” which is, of course, the goal.
Daymond stated that he could give the guys a run for their money in the ugly sweater category, given that he still owns the company that produced the sweaters made famous by Bill Cosby on The Cosby Show.
He stated that the company’s largest obstacle is its profit margin and inquired about the costs and prices of Tipsy Elves. The men reply that their sweaters cost approximately $11.40 to produce and sell for $65 each.
Mark believes that Evan and Nick are overcomplicating matters by wishing to wholesale their product line, which would introduce a host of additional issues and potentially reduce their profit margins and overall revenue.
He asks why Evan doesn’t simply continue working on the SEO aspect of marketing to improve sales.
Evan noted that he has nearly exhausted his SEO options, with all of his top keyword phrases including “Christmas Sweaters,” “Ugly Christmas sweaters,” and “Christmas party gear” ranking No. 1.
Evan and Nick have valued Tipsy Elves at $2 million. Mark explains to the two how much money they lost since they ran out of inventory over the holiday season.
He believes the corporation is trying to achieve too much at once and is therefore spread too thin. That, he adds, terrifies him, and he is leaving.
Lori does not find anything particularly distinctive about the Tipsy Elves’ hideous clothing, therefore she is also eliminated.
Kevin makes a one-of-a-kind offer of $100,000 in exchange for a perpetual royalty of $1 each sweater sold.
The buddies retain full ownership of Tipsy Elves. Robert counters with a proposal of $100,000 for a ten percent stake in the business.
Daymond is highly amazed by the work these two young businessmen have done to make Tipsy Elves a success.
Ultimately, he concludes that he has nothing to give them that they do not already possess, and he withdraws from the agreement.
Evan and Nick confer and, despite appreciating Kevin’s offer, decide to accept Robert’s offer of $100,000 for 10% of the business.
Robert then challenges Mr. Wonderful to develop as many variations on a royalty arrangement as possible!
Evans announced in the hallway, “we have achieved our Christmas wish.”
Final Deal: Robert Herjavec agreed to invest $100,000 for a 10% stake in Tipsy Elves.
What Happened To Tipsy Elves After Shark Tank?
Tipsy Elves’ sales have soared since striking a partnership with Robert. In Robert’s opinion, it’s one of the best deals he has ever made on the show.
Tipsy Elves announced they’re $8 million projected sales in episode 12 of season 6. They’ve broadened their product offerings to include a variety of different holidays.
The company has created roughly 50 jobs in the United States and announced that they would be donating a significant amount to Toys for Tots.
According to the two from Shark Tank, it was the finest thing that ever happened to Tipsy Elves.
Tipsy Elves Shark Tank Update
The sales of Tipsy Elves skyrocketed after its appearance on Shark Tank.
Tipsy Elves’ sales have increased to about $6 million since Robert’s transaction.
Tipsy Elves announced in the update that they are forecasting $8 million in sales. They’ve broadened their product offerings to include a variety of different holidays.
The company employs many employees, and they donate to Toys for Tots. The Tipsy Elves consider Shark Tank the best thing to ever happen to them.
Tipsy Elves sales have surpassed $20 million, and they currently employ 20 people. Additionally, they make sweaters for the Christmas comedy film The Night Before.
Tipsy Elves expanded their line over time. Among other items, they offer Hawaiian shirts, shorts, leggings, ski suits, and costumes for Halloween. They’ve evolved into a true clothing brand rather than a sweater company.
As of 2022, Tipsy Elves lifetime sales have exceeded $120 million, and their annual revenues have exceeded $6 million.
Is Tipsy Elves Still In Business?
Tipsy Elves is in business and thriving as of 2022. After winning a Shark Tank deal, the team expanded their product line to include holiday products.
Currently, Tipsy Elves and Amazon are the main outlets selling their sweaters. Ugly Christmas sweaters will never go out of style.
Sales of Tipsy Elves surged following Evan and Nick’s appearance on Shark Tank. Robert continues to call it one of the best transactions he has ever conducted. According to an update episode, Evan and Nick were expected $8 million in sales.
The two companies faced a snag when a fulfillment center in New Jersey failed to deliver upwards of 7,000 devices on time.
Tipsy Elves has received hundreds of complaints and harsh reviews online.
Nick and Evan traveled to New Jersey to inspect a facility that was being mismanaged. The company viewed the incident as a learning experience and immediately began to transfer the order fulfillment operations in-house.
In addition to holiday sweaters and accessories for Hanukkah, Valentine’s Day, St. Patrick’s Day, Independence Day, Halloween, and college football season, the product line now includes sweaters and accessories for Hanukkah.
Over 500 products are now available in the product line due to the recent addition of ski clothing.
There have been corporate sponsorships such as Sony Pictures’ product placement in Seth Rogan’s “The Night Before” and Uber’s marketing program.
As part of Tipsy Elves’ commitment to Toys for Tots, the company has created more than 50 jobs in the United States.
Tipsy Elves has become one of Shark Tank’s most successful deals, and the two old pals couldn’t be more pleased.
What Is the Net Worth of Tipsy Elves?
The valuation of Tipsy Elves was $2 million when it appeared on Shark Tank. The net worth of Tipsy Elves is above $6 million as of 2022.