Outer Furniture is a company that has focused its investments and resources to build high-end outdoor furniture. The company offers a huge variety of premium outdoor furniture from wicker. The selection of their furniture includes coffee tables, sofas, and a lot more. It is believed to have a net worth of $18 billion.
Furthermore, Outer Furniture also has various care products and outdoor furniture accessories including throw pillows, rugs, and covers. This business was developed with the primary mission to reinvent outdoor furniture and how it is sold to various clients.
Outer Furniture Owner
Jiake Liu and Terry Lin are the owners of Outer Patio. Lin graduated from the Rhode Island School of Design and currently he is working as the Chief Design Officer for Outer Furniture. He also has extensive experience in retail sales, marketing, IT, and product design.
On the other hand, Jiake Liu is the CEO of Outer Patio which was launched in 2017, and made a living as an angel investor to several start-up businesses.
Why Is Outer Furniture Popular?
Outer Furniture has now reinvented the sector in terms of how they are currently selling their products. They maintain their competitive prices low by getting rid of the need for showrooms. It is possible to order the furniture online but in case you want to see the furniture, the company can arrange for a viewing session with a “neighborhood showroom” – which are real clients’ backyards.
Furthermore, Outer Furniture pays a fixed rate to their neighborhood showroom hosts which mitigates the pressure of bringing commission into the conversations. The company insists that their furniture is eco-friendly, and has a 100% ethical production.
Shark Tank Appearance
Terry and Jiake entered the Tank looking for $750,000 for 4% equity. They quickly impressed the Sharks with their numbers, making $800,000 in only four months. Nonetheless, the Sharks questioned the valuation of the firm. With all the facts supplied, Jiake and Terry reassured the sharks that the valuation is based on market size.
Furthermore, they also said that the firm has no overhead costs as Terry’s family covers the inventory costs from their factory. The business duo was offered a deal from two Sharks. Kevin was ready to give out $750,000 for 20% of the business. Lori countered that offer with a $750,000 load for 5% equity and a fixed $30 per unit royalty until $1 million gets paid back.
After some deliberation, Jiake and Terry accepted the deal that Lori offered.
Where Is The Company Today?
The deal with Lori is yet to close. However, the business continues to make a lot of money and at the close of 2021, Outer Furniture had a lifetime revenue of $45 million. Since their appearance in the Shark Tank episode, the firm has got a massive deal of attention. Mostly from the big businesses like GQ Entrepreneur, Forbes, and many others.
The Takeaway
Due to its durable, sleek, and versatile furniture, Outer Furniture has now become a major success and has expanded to more than 1000 showrooms.