Fur Oil
DEAL
EPISODE SUMMARY
🕓 Air Date: February 28, 2020
Asking For:
$500,000 for 2,50%
Investor:
Lori Greiner
Deal:
$500,000 for 8% + $50,000 to a body positivity charity
PRODUCT SUMMARY
Fur offers the first line of all-natural and effective skin and hair care, including Fur Oil, designed for body hair, aiming to break the taboo around pubic hair care.
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Background Story
Founders Laura Schubert and Lillian Tung, based in New York City, introduced Fur with a mission to eliminate the taboo surrounding pubic hair care. Laura, with a background in L’Oréal, spent years developing makeup and being part of the beauty industry, while Lillian had a decade-long career in corporate America.
The idea for Fur emerged in 2014 when Laura, seeking a solution for herself, recognized a gap in the market for upscale and effective pubic hair care. Both women invested their life savings, totaling $500,000, into the business, demonstrating their commitment and belief in the potential of Fur.
The Product
The flagship product, Fur Oil, gained recognition in 2017 when endorsed by major celebrity Emma Watson, leading to a complete sell-out of stock within three weeks. Fur offers an entire line of all-natural and effective skin and hair care products for various body areas.
During the pitch, samples of Fur Oil, Stubble Cream, Ingrown Concentrate, and Silk Scrub were presented to the Sharks. Fur Oil, the signature product, softens hair and reduces issues like razor burn and ingrown hairs, suitable for both men and women, even those who wax. The other products cater to different needs, such as aftershave care and ingrown hair treatment.
How It Went
The company’s position before Shark Tank
Fur demonstrated impressive sales, with a projected $5 million for the current year, and $3.5 million year-to-date, showcasing the brand’s market acceptance. The founders mentioned they put in $500,000 of their own money, with no debt and no other investors. Fur’s product line has achieved broad market appeal, with waxing salons and spas being among their best customers.
The product pricing and margins were revealed during the pitch, with Fur Oil priced at $46, costing $5.34 to make, showcasing healthy profit margins. The entire product line averages $37, with an average fully absorbed cost of $7.63, further highlighting the profitability of the business.
The Negotiations:
The founders initially sought $500,000 for 2.5%, valuing the company at $20 million. The Sharks were intrigued by the unique product in an untapped market but were critical of the high valuation. Daymond John made the first offer, proposing $500,000 for 15%, which was later reduced to 10%. Kevin O’Leary presented an alternative offer, providing the $500,000 with a $1 per bottle royalty until he recoups $1 million, coupled with a 2.5% equity stake.
Lori Greiner, recognizing the potential and mission-driven nature of the brand, offered $500,000 for 8% and an additional $50,000 towards a charitable component. The founders accepted Lori’s offer, securing a deal that aligned with their mission and provided valuable expertise and resources. Maria Sharapova and Mark Cuban both expressed interest in the product but did not make offers, while Kevin O’Leary withdrew his offer, and Daymond John reduced his equity stake offer.
In the end, Fur secured a deal with Lori Greiner, adding a charitable component to the partnership, aiming to further promote body positivity and acceptance. The founders expressed excitement about working with Lori and believed her involvement would help strengthen their mission and bring Fur to a broader audience.
