Best Pocket Square Holder
DEAL
EPISODE SUMMARY
🕓 Air Date: April 28, 2019
Asking For:
$200,000 for 15%
Investor:
Daymond John
Deal:
$200,000 for $1 royalty per unit in perpetuity
PRODUCT SUMMARY
Best Wardrobe Solutions offers a pocket-square holder to enhance the style of men's suits.
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Background Story
Cedric Cobb, the visionary behind Best Wardrobe Solutions, hails from the vibrant city of St. Louis, Missouri. As the President and CEO, Cobb brings a unique perspective to the world of men’s fashion, combining a keen understanding of style with a passion for enhancing self-esteem. With a background in fashion and an acute sense of attention to detail, Cobb embarked on a mission to address a longstanding issue in men’s attire. The inception of Best Wardrobe Solutions arose from Cobb’s observation of a century-old problem – the challenge of keeping pocket squares impeccably in place.
Recognizing the transformative power of well-dressed individuals, Cobb set out to create an accessory that would elevate the style of men around the globe. His inspiration stemmed from the belief that a man’s confidence is intricately linked to his appearance, and the pocket square, often overlooked, plays a pivotal role in defining a sharp and polished look. Cobb’s entrepreneurial journey extends beyond fashion; it’s a quest to empower individuals and reshape perceptions. Guided by a commitment to quality and an eye for innovation, he established Best Wardrobe Solutions with a vision to offer a solution that goes beyond mere functionality.
His leadership extends to a small but dedicated team of 10 seamstresses spread across St. Louis, each contributing to the creation of a product that embodies both style and substance. The decision to manufacture the pocket-square holder in the USA, with Cobb’s own mother serving as the director of product development, underscores his commitment to local craftsmanship and familial collaboration. Best Wardrobe Solutions is not just a fashion accessory company; it’s a reflection of Cobb’s passion for detail, his roots in St. Louis, and his unwavering dedication to instill confidence in men through the artistry of well-curated style.
The Product
Best Wardrobe Solutions introduces a revolutionary pocket-square holder, meticulously crafted to redefine the elegance of men’s fashion. This innovative accessory seamlessly addresses the age-old challenge of maintaining the pristine appearance of pocket squares throughout the day.
The pocket-square holder, resembling a clamshell, presents a simple yet effective solution. To use, one stylishly folds the pocket square and inserts it into the holder, ensuring a secure fit. This method eliminates the common issue of pocket squares slipping or losing their shape, allowing wearers to exude confidence with a consistently polished look.
Available in various styles, including the Rose Fold and Signature Fold, the pocket-square holder caters to diverse fashion preferences, adding a personalized touch to every suit. The product not only enhances the aesthetic appeal of men’s attire but also boosts self-esteem by emphasizing the importance of meticulous detailing.
Priced at a competitive $19.99, the pocket-square holder offers affordability without compromising on quality. Customers can conveniently purchase the accessory through Best Wardrobe Solutions’ official website, major online retailers like Amazon and Etsy, and directly at special events and conferences where the company participates.
How It Went
The company’s position before Shark Tank
Best Wardrobe Solutions has demonstrated robust health and a promising position in the men’s fashion accessory market. With $398,000 in sales this year, the company has proven the widespread appeal of its pocket-square holder, retailing at $19.99. The manufacturing cost of $3.40 per unit allows for a healthy profit margin, and the company has successfully sold 52,000 units to date, showcasing a strong consumer demand. A notable collaboration is with legendary football player Ray Lewis, who not only endorsed the product but also became a business partner, amplifying the brand’s credibility and reach. This partnership aligns with Best Wardrobe Solutions’ vision of enhancing men’s confidence and style.
Wholesale distribution constitutes a substantial portion of the company’s business, accounting for 70% of total sales. The product is wholesaled at $7.50 per unit, reflecting a successful strategy in reaching a broader market. Beyond direct sales through the company’s website, Best Wardrobe Solutions engages with major online platforms such as Amazon and Etsy, expanding its digital footprint. The customer base spans individuals who value meticulous detailing in their attire, with a particular focus on men who understand the transformative impact of a well-accessorized suit. Best Wardrobe Solutions actively participates in major events like church and national conferences, further broadening its customer reach.
In terms of funding, the company’s primary source currently stems from sales revenue, which has been substantial with $398,000 in the current year alone. The decision to seek a $200,000 investment on Shark Tank indicates a strategic move to further propel growth, particularly in optimizing manufacturing processes and reducing costs by 40%. The company’s financial structure is sound, with profits outweighing costs. The infusion of $200,000 from the Shark Tank deal will bolster the available capital, providing flexibility for expansion, marketing initiatives, and potential research and development.
The Negotiations:
The negotiations for Best Wardrobe Solutions on Shark Tank were a captivating blend of style, charisma, and strategic business acumen. Cedric Cobb, the CEO, initially sought a $200,000 investment for a 15% equity stake in his company. However, Kevin O’Leary, known for his shrewd business approach, presented an alternative offer that deviated from the standard equity deal. O’Leary proposed a $200,000 investment for a $1.50 royalty per unit sold, emphasizing his influential role as a fashion figure who could seamlessly integrate the pocket-square holder into his personal brand.
Recognizing the potential of Kevin’s offer and the impactful partnership with the renowned Ray Lewis, Cobb accepted O’Leary’s unconventional deal. However, sensing an opportunity to add further value, Daymond John stepped in with a counteroffer. John suggested keeping manufacturing in the USA and offered a $1 royalty per unit, emphasizing the potential cost reductions that could be achieved through centralized operations.
After some negotiation, Cobb accepted Daymond’s counteroffer, securing the $200,000 investment for a $1 royalty per unit. This deal allowed Cobb to maintain control of the company and benefit from Daymond’s expertise and connections, all while aligning with his vision of enhancing men’s fashion. The negotiation showcased the Sharks’ diverse approaches, with Kevin leveraging his influence, and Daymond emphasizing the importance of maintaining production within the USA to drive down costs.
