Beardbrand – Beard Grooming Products
NO DEAL
EPISODE SUMMARY
🕓 Air Date: October 31, 2014
Asking For:
$400,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Beardbrand is a brand dedicated to the "Urban Beardsman" lifestyle, offering a range of beard care products including beard oil, trimmers, scissors, and combs.
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Background Story
Beardbrand, founded by Eric Bandholz, has its roots in Spokane, Washington. Eric, a devoted beardsman, made a significant career shift from being a financial advisor at a major bank to pursuing his passion for the bearded lifestyle. The catalyst for this transformation was the bank’s strict policy against facial hair, prompting Eric to leave his job and embrace the full-time pursuit of maintaining his impressive beard. The inspiration for Beardbrand struck Eric during a beard and mustache competition in 2012.
Observing a diverse community of beardsmen with unique styles and a shared passion for facial hair, he recognized an unexplored market niche—the “Urban Beardsman.” These were individuals who not only cherished their beards but also valued their style, careers, and independence. Motivated by this realization, Eric decided to create a brand that would unite and cater to this emerging community. In 2013, Beardbrand was born, with the mission of offering premium beard care products to redefine the perception of beardsmen in society.
Eric’s dedication to the bearded lifestyle and his desire to provide a unifying brand for the diverse community of Urban Beardsmen drove the inception of Beardbrand. The company’s journey began 17 months ago, and despite facing challenges, Beardbrand has grown organically through its profits. Eric’s decision to seek a $400,000 investment on “Shark Tank” reflects his ambition to accelerate the brand’s expansion, bring in crucial support for his family, and solidify Beardbrand’s position as a leading force in the facial-hair revolution.
The Product
Beardbrand’s flagship product is a meticulously crafted Beard Kit designed to cater to the discerning needs of the Urban Beardsman. The kit, priced for luxury between $20 to $30, includes an array of high-quality grooming essentials. Among them are trimmers, scissors, and a specially formulated Beard Oil.
The Beard Oil, a standout in Beardbrand’s offerings, serves as a multi-functional grooming elixir. Its purpose extends beyond mere styling, as it works to soften beards, eliminate flakiness, and imbue a delightful fragrance. Users can easily incorporate the oil into their daily routine by applying a few drops to their hands, rubbing it into the beard, and enjoying its moisturizing effects. The fragrance adds an extra touch, enhancing the overall grooming experience.
The emphasis on quality is evident in the kit’s design, featuring fine black-walnut components that add a touch of sophistication. The product lineup is not exclusively for those with extensive beards; Beardbrand caters to beards of all lengths, ensuring inclusivity in its customer base.
Customers can conveniently purchase Beardbrand products online through the company’s dedicated website, making the brand accessible to a broad audience of Urban Beardsmen seeking premium grooming solutions. The strategic pricing and high-margin business model reflect Beardbrand’s commitment to delivering exceptional value to its customers while maintaining a sustainable and profitable venture.
How It Went
The company’s position before Shark Tank
Beardbrand has exhibited robust performance in its 17-month journey, evolving from a startup to a substantial player in the beard care market. The company’s health and position are characterized by impressive sales growth, starting from $9,000 in the initial five months to a remarkable $600,000 in the most recent period. This substantial trajectory underscores the brand’s resonance with the growing community of Urban Beardsmen. As for partnerships, Beardbrand has strategically grown organically through its profits, indicating a self-sustaining business model.
The company has built a strong online presence, allowing it to reach a global audience directly through its website. In terms of distribution, Beardbrand’s approach involves selling directly to consumers online, eliminating the need for wholesalers. This direct-to-consumer model enables the company to maintain control over its brand image and enhance the customer experience. The primary customer base for Beardbrand is the diverse community of Urban Beardsmen, encompassing individuals passionate about their facial hair, style, careers, and independence. The brand’s appeal extends beyond specific demographics, catering to all beard lengths and styles.
The company has not sought external investment until its appearance on “Shark Tank,” where founder Eric Bandholz sought a $400,000 investment for further expansion. The profits and losses indicate a positive trend, with a net profit margin of 25%, showcasing the company’s financial stability. While specific details about available capital are not disclosed, the success in generating over $800,000 in sales indicates a healthy financial position. The company’s structure appears to be focused on a direct-to-consumer online model, empowering Beardbrand to maintain control over its brand narrative and product quality.
The Negotiations:
During the “Shark Tank” pitch, Eric Bandholz entered seeking a $400,000 investment in exchange for a 15% equity stake in Beardbrand. However, the negotiations took an unexpected turn, and none of the Sharks opted to strike a deal. Mark Cuban was the first to bow out, expressing concerns about the scalability of the business, especially given its focus on high-end products. Kevin O’Leary swiftly followed, asserting that the valuation of $2.6 million for the company was too ambitious.
Lori Greiner and Daymond John also decided not to invest, with Lori citing her personal aversion to beards, and Daymond expressing skepticism about the broad market appeal. The negotiations reached a critical point when Robert Herjavec questioned the company’s valuation, suggesting that Beardbrand was priced at about $500,000 to $600,000. He raised concerns about recouping the investment at such a valuation and humorously remarked that Eric would become his “beard slave.”
Ultimately, the negotiations concluded without a deal. While the Sharks acknowledged Beardbrand’s success in achieving over $800,000 in sales and recognized Eric’s passion for the brand, they were hesitant to invest at the proposed valuation. Despite the lack of a deal, the exposure from the show and the charismatic presentation by Eric Bandholz might contribute to increased brand recognition and potential growth opportunities for Beardbrand in the future.
