RockBands Wristbands
DEAL
EPISODE SUMMARY
🕓 Air Date: September 28, 2012
Asking For:
$100,000 for 20%
Investor:
Daymond John, Mark Cuban (50/50)
Deal:
$100,000 for 40%
PRODUCT SUMMARY
RockBands Wristbands are fashionable wrist accessories made of healing stones, presented in backstage equipment cases, endorsed by celebrities.
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Background Story
Lee Dahlberg, the owner, designer, and creator of RockBands Wristbands, embarked on his entrepreneurial journey after realizing the demand for his unique wristbands among friends and acquaintances. Starting from personal use, the idea gained traction organically, leading Lee to invest significantly by selling his house to initiate the company. Facing the challenges of retail politics, Lee hustled his way into four major retailers, despite encountering setbacks.
The brand gained attention not only for its aesthetic appeal but also for its association with healing stones and individuality. With endorsements from celebrities like Bono, Johnny Depp, and Angelina Jolie, RockBands became a symbol of luxury and fashion in Hollywood. Lee’s dedication and passion for his product led him to the Shark Tank seeking investment to further grow his business.
The Product
RockBands Wristbands are hand-carved wrist accessories crafted from healing stones, housed in backstage equipment cases reminiscent of rock concerts. Each stone carries specific healing properties, adding a personalized touch to the wearer’s experience. The wristbands are meticulously carved by a family of artisans with generations of experience, ensuring high quality and authenticity.
The unique presentation in equipment cases adds to the allure, making the unboxing experience memorable and exciting. The product’s appeal lies not only in its fashionable design but also in its perceived holistic benefits, catering to consumers seeking both style and wellness. Available for wholesale at $50 per unit, the suggested retail price ranges from $99 to $150, offering a lucrative margin for retailers.
Despite modest monthly sales, the high retail price contributes to substantial revenue potential. Purchases can be made through various channels, including retail stores and potentially online platforms. The versatility of the product allows for potential expansion into different markets and collaborations with other brands, amplifying its reach and impact.
How It Went
The company’s position before Shark Tank
RockBands Wristbands has achieved $300,000 in sales over five and a half years, demonstrating steady but modest growth. Lee’s decision to license the brand to a well-known Italian company for U.S. sales has opened new revenue streams, with a 40% share of profits. However, challenges such as canceled purchase orders and trademark infringement have impacted the company’s stability.
Despite these setbacks, RockBands has secured partnerships with top retailers in America, showcasing its potential for success in the fashion industry. With a strong brand identity and endorsements from celebrities, RockBands has positioned itself as a luxury accessory brand synonymous with individuality and style. The company’s structure allows for flexibility in exploring licensing opportunities and expanding into new markets.
The Negotiations:
Lee Dahlberg initially sought $100,000 for 20% equity but faced scrutiny over the product’s healing claims and modest sales figures. Sharks expressed doubts about the company’s profitability and the viability of its business model. Offers were made, including Kevin’s proposal to buy the entire company with a 7% royalty on future commercialization and Barbara and Daymond’s joint offer, emphasizing licensing opportunities. Ultimately, Lee declined all offers, opting to retain control of his company despite missed opportunities for growth and expertise offered by the Sharks.
