Kisstixx Lip Balm
DEAL
EPISODE SUMMARY
🕓 Air Date: March 2, 2012
Asking For:
$200,000 for 20%
Investor:
Mark Cuban
Deal:
$200,000 for 40%
PRODUCT SUMMARY
Kisstixx is a high-quality lip balm packaged in two compatible flavors, designed to create a chemistry reaction bursting with flavors and aroma when kissing.
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Background Story
Dallas Robinson and Mike Buonomo, hailing from Salt Lake City, Utah, met in college and bonded over their entrepreneurial spirit. They were inspired to create Kisstixx after experiencing the discomfort of dry, chapped lips while trying to kiss, leading them to develop a lip balm that not only softened lips but also enhanced the kissing experience with compatible flavors.
Their strong moral background led them to create a product that aligns with their values while still being innovative. With the support of their wives, who took on additional jobs to support their venture, Dallas and Mike embarked on their entrepreneurial journey, determined to take their product to the next level.
The Product
Kisstixx lip balm comes in various flavor combinations, such as Strawberry Daiquiri and Piña Colada, Peaches and Cream, Raspberry and Lemonade, and their best-seller, Fire and Ice, designed to create a tingling sensation when combined.
Priced at $3 wholesale and $5.99 retail, the lip balm targets couples seeking a unique kissing experience. The product can be purchased online, in over 100 retail locations, and will soon be available in 485 Associated Food Stores.
How It Went
The company’s position before Shark Tank
Kisstixx has achieved significant milestones within its first year, reaching $80,000 in sales. They have secured a deal with a major drugstore chain, Walgreens, for a Valentine’s Day promotion in 7,500 stores, which is expected to generate $540,000 in orders. With a wholesale price of $3 per unit and a retail price of $5.99, they anticipate making a profit of $337,000 from the Walgreens order alone. Additionally, they have plans for further product development, including Kiss Mists (breath spray) and Kisstixx Gum.
The Negotiations:
The Sharks were initially hesitant due to the high valuation but were impressed by Kisstixx’s achievements, particularly securing a deal with Walgreens. Mark Cuban offered $200,000 for 40%, providing financing for future inventory without additional equity. Despite Kevin O’Leary’s reluctance and Daymond John’s exit, Dallas and Mike accepted Mark’s offer, excited to work with him and grateful for the opportunity.
