Beard King – Beard Bib Apron
DEAL
EPISODE SUMMARY
🕓 Air Date: January 15, 2016
Asking For:
$100,000 for 20%
Investor:
Lori Greiner
Deal:
$100,000 for 45%
PRODUCT SUMMARY
Beard King offers the world's first and only grooming tool, the Beard Bib, designed to eliminate manual clean-up and make facial hair grooming a less messy task.
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Background Story
The founders, King Nicholas Galekovic and Queen Alessia Galekovic, are a married couple who came up with the idea due to the constant mess created by Nicholas’s facial hair grooming routine. Tired of the cleanup, they invented the Beard Bib as a solution. With Nicholas specializing in brand development, they utilized their strengths in marketing and branding to create viral content. The product gained traction after a video went viral on social media, leading to significant sales.
The Product
The Beard Bib is a grooming tool that simplifies the process of facial hair maintenance. Users attach the neck straps, stick the suction cups to the mirror, and begin their grooming routine. The bib catches the trimmed hair, and after grooming, users can dispose of the hair easily.
The product is patent-pending, costs $7 to manufacture, and is sold for $29. The founders envision expanding their product line to include disposable bibs, beard oils, combs, and apparel.
How It Went
The company’s position before Shark Tank
Beard King has generated $140,000 in sales within eight months, with $80,000 in sales in the last month alone. The product’s success is attributed to a viral video that garnered over 20 million views on social media. With a focus on online distribution, the company is currently managing brand development, content creation, and marketing in-house. They have recently scaled manufacturing to meet demand and aim to further increase margins with additional funding. The founders have been approached by wholesale and distributors but have opted to maintain a focus on online channels.
The Negotiations:
The initial ask was $100,000 for 20%. Other sharks, including Mark Cuban, Robert Herjavec, and Kevin O’Leary, opted out, expressing concerns about the single-product focus and the founders’ need for funding. Lori Greiner made an offer of $100,000 for 51%, emphasizing her expertise in QVC and direct-to-consumer products. The founders counteroffered with 45%, highlighting their marketing and branding strengths.
Lori accepted the counteroffer, securing a deal for $100,000 in exchange for 45% equity. The negotiation process involved discussions about the company’s future, scalability, and the founders’ ability to create viral content. Lori’s expertise in direct sales and QVC played a crucial role in the final deal. Ultimately, Lori’s offer was accepted, and Beard King secured a deal with her.
