Shark Tank US | Browndages Manage To Secure A Three Shark Deal

Summary

In this pitch, Rasheed and Intezar, founders of Brownages, present their inclusive line of flesh-tone bandages, designed to match a wide range of skin tones. Their mission is to offer representation through everyday products while inspiring children with character-themed bandages. Despite competition from large brands, their product gained rapid popularity, with sales spiking during a social movement. Seeking $75,000 for 7.5% equity, they aim to scale, focusing on distribution and expanding to schools and hospitals. The sharks see potential, and a deal is struck with Mark, Lori, and Damon for $100,000 and 30% equity.

Takeaways

• 😀 Rasheed and Intezar, a couple from Columbus, Ohio, created Brownages, a line of inclusive flesh-tone bandages designed to match diverse skin tones.
• 😀 They are seeking $75,000 for 7.5% equity in their company to scale their product and marketing efforts.
• 😀 The mission behind Brownages is to provide bandages that reflect the diversity of skin tones, with the goal of making people feel seen and represented.
• 😀 Their product line includes both flesh-tone bandages for adults and character bandages to inspire children.
• 😀 Brownages' bandages are priced competitively, with tins retailing at $4.99 and paper boxes at $3.99, both with significant markups over their cost of production.
• 😀 The company experienced a surge in sales during social unrest, with $130,000 in sales over just six days, and increased their social media followers from 10,000 to 75,000.
• 😀 Their sales have since leveled out to around $7,500 to $10,000 per month, mostly through direct-to-consumer sales via their website and social media marketing.
• 😀 They were approached by Dollar General but declined an exclusivity deal, preferring not to be locked into a single retailer.
• 😀 The couple faces challenges in distribution, with difficulty scaling in a highly competitive and mature bandage industry.
• 😀 Mark, Lori, and Damon made a collective offer of $100,000 for 30% equity, but Rasheed and Intezar countered with a request for 22.5% equity and a $75,000 credit line for inventory.
• 😀 The final deal was settled at $100,000 for 25% equity in the company and a credit line for inventory, which Rasheed and Intezar accepted.

Q & A

What is the main product being pitched in the script?

The main product being pitched is a line of flesh-tone bandages called 'Brownages,' which are designed to match different skin tones and hues, offering a more inclusive and personalized product for people with various skin colors.

What problem does the company aim to solve with their product?

The company aims to address the issue of bandages not matching the skin tones of people with darker or varied skin colors, which can make them feel less seen and represented. Their product is designed to match the individual shades of their customers' skin.

Why did the company decide to create character bandages?

The company created character bandages to inspire children to dream big and aspire to be whoever they want to be, all while also offering a fun, healing experience. The character bandages were specifically designed to include images that children could relate to and look up to.

What was the response when a larger competitor introduced a similar product?

When a larger competitor introduced a similar flesh-tone bandage product, the company's followers and supporters rallied behind them, supporting their brand. This support led to the company selling out their product and seeing a significant increase in social media followers, from 10,000 to 75,000 in just six days.

What was the company’s sales during the six-day period of high demand?

During the six-day period of high demand, the company made $130,000 in sales, which led to their inventory selling out completely.

How does the company currently sell its products?

The company sells its products exclusively online through their own website, relying primarily on word of mouth and social media for marketing and promotion.

What challenges did the company face in terms of inventory?

The company faced inventory issues, as their product sold out quickly during periods of high demand. They were out of stock for several months before they were able to replenish their inventory in November 2020.

What was the company's normal monthly sales before the large surge in demand?

Before the surge in demand, the company typically sold between $7,500 and $10,000 worth of products per month.

What type of deal did Dollar General offer to the company, and why did they decline it?

Dollar General reached out to the company with an offer to stock their products, but the company declined because the offer required them to sign an exclusivity deal, which they felt would limit their growth and options.

What was the investment proposal made by the sharks, and how did the founders respond?

The sharks made an investment proposal of $100,000 for a 30% stake in the business, with an option for additional support such as helping with distribution and marketing. The founders countered with an offer of 7.5% equity per shark for $100,000, which was ultimately agreed upon after further negotiations, including a $75,000 inventory credit line.