Can The Shark Shave A Deal With Manscaped? | Shark Tank US | Shark Tank Global

Summary

In this episode of Shark Tank, Steve and Josh King from Manscaped pitch their innovative male grooming products, seeking $500,000 for a 7% stake. They highlight the growing trend in manscaping, supported by humor and personal anecdotes that resonate with their target audience. The duo reveals impressive sales and market potential, despite facing initial challenges. After negotiations, Mark Cuban and Lori Greiner offer $500,000 for 25% equity, acknowledging the brand's appeal and the rising demand for male hygiene products. This deal showcases the intersection of clever marketing and evolving consumer trends in the grooming industry.

Takeaways

• 😀 Manscaped seeks $500,000 for a 7% equity stake in their grooming products.
• 🎯 The company emphasizes the importance of male grooming below the waist, targeting a growing market.
• 🧴 Manscaped offers a 'Perfect Package' kit, which includes a trimmer and hygiene products designed specifically for men's grooming.
• 📈 The manscaping market has seen significant growth, with participation increasing from 6% in 2008 to 73% today.
• 💼 Josh King, one of the founders, has a background in digital marketing and e-commerce, leveraging this experience to grow the business.
• 😂 The company initially struggled with messaging until they utilized humor in their marketing strategy, leading to a surge in sales.
• 📊 Manscaped reported $1.5 million in revenue in 2017 but incurred a loss of $133,000 due to high customer acquisition costs.
• 💸 Their customer acquisition cost is currently $16, while the profit margin on their kit is approximately $7.
• 🎁 Women are a significant customer segment, often purchasing products as gifts for men, especially during the holiday season.
• 🤝 Several sharks express interest, but negotiations center around equity stakes, with offers significantly higher than the original request.

Q & A

What is Manscaped seeking from the investors?

Manscaped is seeking $500,000 in exchange for a 7% equity stake in the company.

What unique product does Manscaped offer?

Manscaped offers the Lawn Mower 2.0, a trimmer designed specifically for male grooming below the waist.

What key statistic did Manscaped provide about the manscaping market?

Manscaped highlighted that the percentage of men engaging in manscaping has increased from 6% in 2008 to 73% today.

How did Manscaped initially struggle in the market?

Initially, Manscaped struggled to establish their brand and sales, nearly considering closing the business due to low performance.

What strategy did Manscaped adopt to improve their marketing?

Manscaped adopted a humorous approach in their marketing, using relatable stories that resonated with their target audience.

What was the average price and cost of the Manscaped kit?

The average price of the kit is $51, and it costs approximately $12 to make.

What was the customer acquisition cost for Manscaped?

The customer acquisition cost for Manscaped is $16.

How did the Sharks respond to Manscaped's valuation?

The Sharks expressed skepticism about the $7.1 million valuation and some indicated that the valuation was too high given the current business model.

What deal did Manscaped ultimately accept from the Sharks?

Manscaped accepted a deal for $500,000 in exchange for 25% equity in the company.

How did the Sharks perceive the target audience for Manscaped's products?

The Sharks noted that while the products are marketed towards men, a significant portion of sales comes from women purchasing these products as gifts for men.