CreaProducts – Hair-cutting Tools
DEAL
EPISODE SUMMARY
🕓 Air Date: May 6, 2016
Asking For:
$200,000 for 10%
Investor:
Lori Greiner
Deal:
$200,000 for 22.5%
PRODUCT SUMMARY
CreaProducts, led by founder Mai Lieu, offers innovative beauty products like CreaClip, a hair-cutting guide, designed to empower users to achieve salon-quality results at home.
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Background Story
Mai Lieu, born to Chinese parents in Vietnam, endured a challenging childhood as her family escaped the Vietnam War. Inspired by her hardworking parents, she entered the beauty industry and, after 20 years, launched CreaProducts. Her motivation was to create accessible solutions for families, driven by her own experiences of not affording salon visits. The company’s flagship product, CreaClip, addresses common home haircutting challenges.
The Product
The CreaClip is a hair-cutting guide that simplifies at-home haircuts, suitable for individuals of all ages. It allows users to achieve professional-looking results for various styles, including bangs and layers.
CreaClip is a versatile hair-cutting guide that allows users to achieve precise cuts at home. With features like a built-in level, it ensures balance, making it suitable for cutting kids’ hair, bangs, and layers. Mai Lieu expanded her product line to include CreaNails and CreaLash, offering a comprehensive range of beauty tools.
The product comes in different sizes and features a built-in level for balanced cuts. Customers can purchase the CreaClip, along with other beauty tools like CreaNails and CreaLash, online at prices ranging from $24.95 to $30.
How It Went
The company’s position before Shark Tank
CreaProducts has experienced significant success, with CreaClip alone generating $550,000 in sales within the last year. Mai Lieu’s instructional videos on YouTube, boasting 30,000 followers and 20 million views, play a crucial role in driving sales. Despite the recent introduction of new products like CreaNails and CreaLash, CreaClip remains the bestseller. The profit margin stands at an impressive 66%, resulting in a net profit of $155,000. The company’s success is attributed to Mai Lieu’s expertise, online presence, and the effectiveness of the products.
The Negotiations:
The negotiation process saw interest from multiple Sharks, each evaluating their fit with CreaProducts. Robert Herjavec and Mark Cuban bowed out early, citing misalignment with their focus areas. Kevin O’Leary, known for his pragmatic approach, also opted out due to his limited interest in hair products. The remaining Sharks, Lori Greiner, and Barbara Corcoran, expressed interest. However, Barbara felt she might not be the ideal partner and opted out.
Lori, recognizing the potential for the product on QVC, made a joint offer with Barbara’s terms – $200,000 for 25%. Despite Lori’s initial offer, she and Mai Lieu engaged in negotiations, with Lori eventually settling at 22.5%, a compromise between her initial offer and Mai Lieu’s counterproposal. Mai Lieu accepted the deal with excitement, expressing her gratitude and dreams coming true. The negotiation showcased Mai Lieu’s determination and Lori Greiner’s belief in the product’s potential success.
