Beard Head – Beard Hats
NO DEAL
EPISODE SUMMARY
🕓 Air Date: December 11, 2015
Asking For:
$250,000 for 25%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Beard Head is a hat or beanie with a hand-knit, detachable beard face mask, offering a festive and fun way to keep warm in chilly weather.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Beard Head, presented by founder David Stankunas, entered the Shark Tank seeking $250,000 in exchange for a 25% stake in his company. Stankunas pitched the Beard Head as an essential winter accessory, particularly for those lacking a lush beard. With over 200 different designs, including outrageous styles like the Barbarian Roadie and a classic Santa option, the product aimed to cater to a wide audience.
The Product
Beard Head is a hat or beanie with a hand-knit, detachable beard face mask. The product offers a unique and festive way to stay warm in cold weather, with over 200 different designs, including styles like the Barbarian Roadie, Bushy Biker, and a kids’ collection. The detachable beards use Velcro for easy removal and come in various colors and combinations.
Beard Head’s appeal extends to different occasions, from skiing in the Swiss Alps to cheering at sports events. The product caters to a broad audience, featuring styles suitable for holiday celebrations, football or basketball games, and tailgating events. The founder highlighted the versatility and comfort of Beard Head, emphasizing its soft and warm qualities.
The product is primarily sold online, with prices ranging from $25 to $30. Beard Head has gained popularity through its unique designs and the practicality of a hat combined with a detachable beard face mask.
How It Went
The company’s position before Shark Tank
Beard Head, founded in 2009, has accumulated $5 million in total sales, with 250,000 units sold to date. The company faced challenges from copycats and imitators, resulting in a legal battle that cost $150,000. The product, with an average production cost of $4.50, is sold at $25 to $30, leading to profit margins between 25% and 35% net income margin.
Sales for the previous year amounted to $936,000, following a down year attributed to the legal battle. Despite the setback, the prior years saw sales of $1.3 million and $1 million. Beard Head has been primarily self-financed, with the founder emphasizing that the business was run out of his bedroom apartment for the first four years. The company has expanded its presence to 400 to 500 brick-and-mortar stores during the seasonal period. Beard Head is focused on the holiday market and aims to tap into the sports fan market for consistent sales.
The Negotiations:
The Sharks were intrigued by Beard Head’s unique concept and playful designs. While several Sharks expressed appreciation for the product, they raised concerns about market saturation, competition, and the company’s growth potential. Stankunas revealed that the company had experienced a legal battle with a competitor, resulting in a $150,000 expenditure. Despite strong profit margins and consistent sales, some Sharks were not convinced of the scalability of the business.
Robert Herjavec suggested that the growth might be hindered by competitors and questioned if Beard Head was running fast enough. Ultimately, none of the Sharks made an offer, with Mark Cuban and Robert Herjavec expressing reservations about the scalability and long-term potential of the business. The negotiation ended without a deal, but Stankunas remained optimistic about the growth potential of Beard Head, especially with a Shark’s involvement.
