Outer is an outdoor furniture company that features itself on Shark Tank. Dock furniture is all the rage in recent times, and more and more people are opting for outdoor furniture to be at one with nature.
Jiake Liu and Terry Lin are hoping that the sharks invest in their company, which they describe as a venture that would be one step closer to people having happier, healthier, and more full-filling lives. What sets the company apart is that both entrepreneurs have a range of expertise outside of selling outdoor furniture. Liu has worked as a computer engineer and has a history of working with many start-ups. Lin used to be a designer at pottery barn, which means he knows he’s the designer behind the who venture. It’s also important to note that Lin’s family owns a Chinese factory. It is the same place where Outer makes their furniture, so they have the supply-chain issues of their work figured out.
The sofa sets also come in 2-5, and you can assemble them any way you want, so it feels like you have a bigger room. They’re proper pieces, all resistant to wicker, and made from stain-resistant technology that you can apply whenever possible. Now that we know the company and the products, we can look at how the overall pitch went with the Sharks.
Terry and Jake are looking for $750,000 for 4% of their business. They shared all about their operations and how they came to be. They discussed how they could keep their costs relatively low as they don’t have showrooms to worry about. People who want to buy the sofas will order online, and if a customer wants to see something IRL, they will go and arrange an appointment with a neighbor’s showroom where they can look at the sofa set up close and personal.
The neighbor showroom is a unique concept that the company has introduced. It lets potential buyers go to the nearest people who already own Outer furniture and see the sofa sets there. There’s nothing like a commission fee, so the neighbors are less prone to lying about their experiences.
The duo then talks about the fact that they have been selling for 4 months and have managed to have $800,000 in sales. The Sharks seem incredibly impressed, but they have questions about the valuation the duo offers. The guys say that the valuation is based on market size. The Sharks seem apprehensive about what they’re hearing, and assuaging these worries, Jiake tells them that they have no overhead for inventory as that is something that Terry’s family covers using their company.
The company manages to get an offer from two sharks. Kevin offers them $750,000 for 20% of the business. However, Lori works to provide them with a better deal. She would give them a $750,000 loan for 5% equity, and they can have $30 per unit in royalty until she snags the $1 million back. They proceed with their deal with Lori.
Outer from Shark Tank is still active and doing very well on its own. They had $26 million in revenue in 2022 alone.
Our Review of Outer
There are all kinds of pros and cons to the companies and the products that walk in through the door. We have mentioned some of these below:
Pros of Outer
- They are versatile. You can use the sofasindoors and outdoors without worrying too much about how they look. If you need help shifting them from the inside to the outside, you can quickly move them around, and they would fit in with either aesthetic.
- They function outdoors. You would also find that these sofas are great for outdoor purposes. They are specifically built for outdoor pursuits, meaning you can leave them outdoors, and you will be fine.
- They are Eco-friendly. The material the company uses can be easily recyclable, which also means it’s good for the environment.
- They are ethically sourced. No one is harmed in making these materials, which means that no extra guiltgoes into the purchase.
- The cushions are soft and breathable. This means you won’t have to worry about the material blocking or to clogany of your pores as you take a seat in these.
Cons of Outer
- They are expensive, not entirely affordable. They are a bit pricey, making them less accessible than other patio sofas.
Who is Outer For?
If you think you deserve to have the best sofas in the world, then Outer is for you. If you’re also someone who’s looking for sofas that are comfortable and can withstand all sorts of impossible climates, then this is the perfect brand for you. Outer is also for those who are more conscious about the kind of sofas they want to invest in to create less waste in the future. Outer is environmentally healthy and ethically sourced, so it doesn’t cause as much harm to external forces.
Outer also has excellent quality, so if you want something sustainable that lasts for an extended period, then Outer is the best brand you could choose.
Are There Any Alternatives?
There are many sofas and couches out there that you could easily search for. However, they may not come with all of Outer’s work. Outer is sustainable and can last you for a while. It’s also something you can use as both an indoor and an outdoor sofa which is rare to come by. Thus, there may be alternatives to outer in looks, but in function, Outer is pretty unique.
Our Final Thoughts
There are many pros of buying outer as it is comfortable and weather resistant. It will also last you for a long time, and they have managed to bag a deal with the Sharks, which means that their success will only grow. However, it may be a little on the expensive side, which could potentially reduce their accessibility.