Rounderbum – Men’s Shapewear
DEAL
EPISODE SUMMARY
🕓 Air Date: January 21, 2018
Asking For:
$150,000 for 10%
Investor:
Kevin O'Leary
Deal:
$150,000 for 5% + $2/unit royalty until $300,000 is returned
PRODUCT SUMMARY
Rounderbum is a body-shaping underwear brand for men, using innovative technologies to enhance and boost confidence.
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Background Story
Jonathan Diersing, the founder of Rounderbum, launched the company with the aim of helping men feel more confident by offering innovative body-shaping underwear. Based in West Hollywood, California, Diersing comes from a background in neuroscience but found a passion for entrepreneurship and sales. The idea for Rounderbum stemmed from the realization that while women have long had options for enhancing their body shape, men have been limited.
Diersing wanted to change this and give men the opportunity to feel more confident in their appearance. The company started in 2015, and Diersing’s personal drive to make a difference in his life, coupled with a desire to create a product that could positively impact others, led to the creation of Rounderbum.
The Product
Rounderbum introduces a body-shaping technology that goes beyond traditional compression shapewear. The underwear is designed to enhance the shape of the body, providing more lift and volume in desired areas.
The product lineup includes padded trunks and muscle shirts, utilizing a zero-edge pad to ensure invisibility under clothing. Priced at $25, the products are competitively positioned in the market. The underwear is not just about aesthetics; it’s also crafted for comfort and discretion, ensuring a natural feel.
Rounderbum’s offerings cater to various occasions, from board meetings to dates or red-carpet events, aiming to boost confidence in men regardless of the situation. Available online through their retail store and on Amazon, Rounderbum is reaching customers effectively through strategic advertising, with a focus on platforms like Facebook.
How It Went
The company’s position before Shark Tank
Since its launch in May 2015, Rounderbum has achieved significant sales, surpassing $1 million. The last 12 months alone saw $700,000 in sales, with the company primarily operating through its online retail store and Amazon. With a net profit ranging from 25% to 35%, Rounderbum has been successful in converting sales into substantial returns. The founder, Jonathan Diersing, has taken a hands-on approach to the business but recognizes the need for additional support to scale further.
The recent establishment of a brick-and-mortar store in West Hollywood serves a dual purpose, providing a fulfillment center to optimize costs and offering customers a physical space to experience the product. The company is looking to expand its marketing efforts, especially through viral videos, and aims to capitalize on the success achieved online.
The Negotiations:
Jonathan Diersing entered the Shark Tank seeking $150,000 for 10% of Rounderbum. After a round of questions, offers, and considerations, Robert Herjavec bowed out, citing similarities to existing products in his portfolio. Lori Greiner admired Diersing’s efforts but decided not to invest, believing he was doing well on his own. Mark Cuban, while expressing interest, withdrew from the deal, stating the business was not in his wheelhouse.
Mr. Wonderful (Kevin O’Leary) made an offer of $150,000 for 5%, along with a royalty of $2 per unit until he recoups $300,000. Robert Herjavec made an offer of $150,000 for 20%, challenging Mr. Wonderful’s deal. Ultimately, Jonathan Diersing accepted Kevin O’Leary’s offer, valuing the partnership and the potential for growth in online sales.
O’Leary’s experience and commitment to making calls on behalf of the business played a significant role in sealing the deal. The negotiation was marked by humor and a unique approach, with the Sharks engaging in cheeky banter, particularly regarding the body-shaping nature of the product.
