HairFin Haircut Guide
DEAL
EPISODE SUMMARY
🕓 Air Date: April 19, 2022
Asking For:
$25,000 for 20%
Investor:
Daymond John
Deal:
$25,000 for 30%
PRODUCT SUMMARY
The HairFin is a handheld hair-cutting tool that serves as a measuring guide for home hair cutters, ensuring even and accurate trims for longer hair lengths.
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Background Story
Tony, the founder of HairFin, hails from Derby, Connecticut. With a background in computer engineering and a notable career in research and development, he holds 12 utility patents for his work in advancing helicopter flight control systems. Despite his successful engineering career, Tony’s journey took a turn as he embraced a frugal lifestyle, eventually leading to his early retirement. During this time, he encountered the challenge of cutting his own long hair evenly and realized the lack of efficient tools for this task.
Driven by his engineering expertise and personal experience, Tony embarked on a mission to create a practical solution for individuals like himself who preferred to manage their haircuts at home. Inspired by the concept of precision measurement, he conceptualized the HairFin, a handheld tool that could facilitate precise and consistent haircuts for longer hair lengths.
Tony’s passion for problem-solving, combined with his dedication to creating a product that aligned with his values of simplicity and efficiency, fueled the development of the HairFin. His personal struggle with maintaining an even haircut resonated with the broader community of home hair cutters, leading to the birth of a practical and innovative solution that addressed a longstanding challenge in the realm of DIY hair care.
The Product
HairFin is a revolutionary handheld hair-cutting tool designed to facilitate precise and uniform haircuts for individuals with longer hair lengths. The product incorporates a user-friendly design, featuring 2-, 3-, and 4-inch guides that cater to a variety of hairstyles and lengths. It is engineered to mount securely on the user’s hand, allowing for a seamless and stable grip while cutting.
The HairFin’s primary function revolves around its innovative measuring system, which enables users to grasp the hair and effortlessly slide the guide into place for accurate trimming. This process eliminates the need for awkward measuring techniques and guesswork, ensuring consistent results for those who prefer to manage their haircuts at home.
By streamlining the hair-cutting process, HairFin offers a range of benefits, including enhanced precision, time efficiency, and cost savings typically associated with salon visits. Its intuitive design empowers users to achieve professional-looking haircuts with minimal effort, making it an ideal tool for individuals seeking convenient and reliable grooming solutions.
The product is currently available for purchase exclusively on Amazon, where it is marketed at a competitive price of $14.95. Its straightforward functionality and versatile applicability position HairFin as a must-have accessory for individuals looking to maintain well-groomed and evenly trimmed hairstyles in the comfort of their own homes.
How It Went
The company’s position before Shark Tank
HairFin has demonstrated a promising performance since its launch in July 2020, establishing a solid foundation for growth within the home hair-cutting market. The company’s strategic focus on manufacturing high-quality products in the USA has contributed to its credibility and customer trust, positioning it as a reliable and reputable brand in the grooming industry. With an emphasis on direct-to-consumer sales, HairFin has managed to secure a considerable customer base, primarily comprising individuals seeking efficient and affordable solutions for managing their haircuts at home.
While the company has yet to establish significant partnerships with external retailers or wholesalers, its exclusive presence on Amazon has facilitated streamlined distribution and accessibility for its target audience. The direct-to-consumer approach has allowed HairFin to maintain control over its sales channels, ensuring a direct line of communication with its customer base and enabling the company to gather valuable feedback for product improvement and future development. In terms of funding, HairFin has relied on its initial sales revenue and a lean operational structure to sustain its business operations.
The company has demonstrated a healthy profit margin, with a manufacturing cost of $2 per unit and a retail price of $14.95 on Amazon. While the company has experienced profitability, its focus remains on scalability and market expansion, necessitating potential investment or funding to support future growth initiatives and enhance its market presence. As of now, HairFin operates with a streamlined internal structure, with Tony as the founder and primary decision-maker, overseeing product development, sales, and overall business operations. The company’s current capital availability is primarily allocated towards operational expenses, marketing initiatives, and product development, aiming to enhance its product line and explore additional opportunities within the grooming and personal care sector.
The Negotiations:
During the intense negotiation process on Shark Tank, Tony, the founder of HairFin, initially sought a $25,000 investment in exchange for a 20% equity stake in the company. However, several Sharks, including Kevin O’Leary and Lori Greiner, expressed doubts about the scalability and investment potential of the product, leading them to opt out of the deal. Despite Tony’s resilient presentation and compelling sales figures, securing a suitable offer seemed challenging initially.
Eventually, Daymond John stepped in with an offer of $25,000 for a substantial 40% equity stake in HairFin. Tony attempted to negotiate the equity percentage down to 30%, which Daymond eventually accepted. While Tony sought to further adjust the terms, Daymond remained firm with his final offer, displaying his confidence in the product’s potential and the value of his partnership. The negotiation process highlighted the importance of aligning with the right investor who could provide the necessary guidance and expertise to fuel HairFin’s growth and market expansion.
Despite some back-and-forth exchanges, Tony ultimately accepted Daymond’s offer, emphasizing his excitement for the opportunity to collaborate with a seasoned entrepreneur and leverage his expertise to take HairFin to new heights. The negotiation outcome underscored the significance of securing a partnership that not only offers financial support but also aligns with the company’s vision and strategic goals for long-term success.
