BarBell Apparel
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 18, 2016
Asking For:
$500,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Barbell Apparel offers athletic-fit denim, chinos, and shorts tailored for individuals with muscular legs, using high-tech fabrics, military-grade stitching, and a fit designed for active bodies.
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Background Story
Barbell Apparel, hailing from the vibrant city of Las Vegas, Nevada, was brought to life by the dynamic duo of Hunter and Alex. Both founders share a deep-rooted passion for an active lifestyle, having grown up participating in sports, weightlifting, and embracing the great outdoors. Their journey began as a quest for comfortable, stylish clothing tailored to fit their athletic bodies, characterized by muscular legs and a commitment to an active way of life. Frustrated by the limited options available in the market that failed to accommodate their physique, Hunter and Alex decided to take matters into their own hands.
The idea for Barbell Apparel was born out of a genuine need for athletic-fit clothing that would provide both functionality and style. Their vision was clear: redefine the clothing industry for individuals with active body types, creating a line that would seamlessly blend comfort, durability, and fashion. In 2014, the founders launched a Kickstarter campaign, a pivotal moment that would shape the trajectory of Barbell Apparel. The campaign exceeded all expectations, raising an impressive $735,000, showcasing a significant demand for their innovative products.
The success of their initial venture validated not only the need for athletic-fit clothing but also the potential for Barbell Apparel to make a mark in the competitive world of apparel.Hunter and Alex’s background experiences in sports, coupled with their entrepreneurial spirit, laid the foundation for Barbell Apparel’s emergence. Their personal journey, from the challenges of finding suitable clothing to the triumph of a highly successful Kickstarter campaign, underscores the authenticity of their brand and their commitment to redefining the apparel industry for individuals with active, muscular bodies.
The Product
Barbell Apparel specializes in crafting a revolutionary line of athletic-fit denim, chinos, and shorts meticulously designed to cater to individuals with muscular legs and an active lifestyle. The products stand out through a combination of high-tech fabrics, military-grade stitching, and a tailored fit that embraces the contours of athletic bodies, providing unparalleled comfort and style.
The core philosophy behind Barbell Apparel is to offer clothing that doesn’t just fit but enhances the wearer’s ability to move freely and comfortably. The athletic-fit denim, chinos, and shorts are engineered to facilitate a full range of motion, ensuring that individuals with strong, muscular thighs can confidently embrace their physique without compromising on style.
These garments are more than just apparel; they are a statement of empowerment for athletes and fitness enthusiasts who often face challenges in finding suitable clothing. The innovative use of materials and precision in craftsmanship results in a product that not only looks good but performs exceptionally well in various active scenarios.
Barbell Apparel’s products are exclusively available for purchase online, providing a seamless shopping experience for customers. The retail price for the athletic-fit denim is set at $149, offering a reasonable balance between quality, craftsmanship, and affordability. The brand’s commitment to excellence and its success on platforms like Kickstarter reflect a growing demand for clothing that aligns with an active lifestyle, making Barbell Apparel a trailblazer in the realm of athletic-fit fashion.
How It Went
The company’s position before Shark Tank
Barbell Apparel has exhibited robust performance, firmly establishing itself as a formidable player in the athletic apparel industry. The company’s financial health is reflected in its impressive sales figures, with a reported $2.3 million in revenue for the current year and a noteworthy growth rate of 100%. The journey began in 2014 with a highly successful Kickstarter campaign that raised over $735,000, demonstrating a strong demand for the brand’s innovative products.
As an online-focused business, Barbell Apparel has strategically positioned itself to reach a global audience. The majority of its sales are conducted through e-commerce channels, providing a convenient platform for customers seeking athletic-fit denim, chinos, and shorts. The brand’s initial Kickstarter success not only catapulted its revenue but also served as a testament to the market’s readiness for clothing tailored to individuals with active body types. While the company has demonstrated significant prowess in sales and customer engagement, it faces challenges in inventory management due to the rapid turnover of its products.
The founders expressed the need for additional funding during their pitch on Shark Tank, citing the fast-paced sales as a hindrance to maintaining sufficient inventory levels. Barbell Apparel’s current funding primarily stems from its initial Kickstarter campaign and subsequent sales revenue. The founders highlighted their proficiency in inventory projection, manufacturing terms, and sourcing during negotiations with the Sharks. However, the company’s valuation of $10 million became a point of contention, leading to the Sharks opting out of potential investments. The company’s structure aligns with an online retail model, emphasizing direct-to-consumer sales. The company’s financial strength, coupled with its commitment to innovation and customer satisfaction, positions Barbell Apparel as a key player in the evolving landscape of athletic-fit fashion.
The Negotiations:
In the Shark Tank negotiation, Barbell Apparel sought a $500,000 investment in exchange for a 5% equity stake in the company. The founders, Hunter and Alex, presented their innovative line of athletic-fit denim, chinos, and shorts tailored for individuals with muscular legs. The Sharks were intrigued by the unique concept but expressed concerns about the $10 million valuation and the challenges associated with the apparel industry.
Despite the impressive sales figures of $2.3 million for the current year and a growth rate of 100%, the Sharks were hesitant to invest due to perceived risks, particularly in inventory management. Kevin O’Leary raised a critical question about the company’s valuation, questioning whether it was justified at five times the revenue. Mark Cuban highlighted the difficulty of creating barriers to entry in the denim market. As the negotiation progressed, the founders defended their valuation, emphasizing their remarkable Kickstarter success and strong gross profits. They explained that the $500,000 investment was primarily needed to overcome inventory challenges resulting from the rapid sales of their products.
Ultimately, none of the Sharks made an offer, expressing concerns about the valuation, inventory management, and the competitive nature of the apparel industry. Mark Cuban provided insight into a potential private equity market valuation, suggesting a more realistic pre-money valuation of $5 million. The negotiation concluded with the founders expressing gratitude for the Sharks’ time and insights. While they didn’t secure a deal, Barbell Apparel left with recognition for their achievements in a highly competitive space. The Sharks commended the founders for their success but ultimately decided the risks associated with the investment were too high under the proposed terms.
