Controlled Chaos – Hair Products for Curly Hair
DEAL
EPISODE SUMMARY
🕓 Air Date: January 8, 2016
Asking For:
$50,000 for 20%
Investor:
Lori Greiner
Deal:
$60,000 for 50%
PRODUCT SUMMARY
Controlled Chaos offers a hair cream called Curl Up & Shine designed for people with curly hair, providing a natural and soft feel without the typical sticky residue associated with some curly hair products.
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Background Story
Alanna and Maureen, both hair stylists and curly hair experts from Portland, Maine, founded Controlled Chaos to address the challenges of dealing with curly hair. Growing up, they faced teasing and negativity about their curly hair, which led them to become hair stylists to help others embrace their natural texture. The idea for Curl Up & Shine was born out of the need for a product that effectively works with curls without leaving a sticky, crunchy feeling. Their mission is to show people that curls are not a curse but something to be celebrated.
The Product
Curl Up & Shine is a cream designed to enhance and define natural curls without the drawbacks of other curly hair products. Unlike some products that result in a sticky, crusty feel, this cream provides a soft and natural touch. It works well in various weather conditions, including humidity and rain, and is suitable for use at the beach. The product is marketed as a solution to the challenges faced by individuals with curly hair, allowing them to feel great about their natural texture.
The cream stands out for its unique formula, avoiding the residue common in other curly hair products. The founders emphasize the cream’s benefits, including its ability to hold curls together without compromising the natural and fluffy feel. During the pitch, they demonstrated the difference between their product and traditional gels, showcasing the superior results of Curl Up & Shine.
Curl Up & Shine is sold primarily through hair salons, with the founders having a total of 10 products in their line. The cream is priced at $39 for an 8-ounce container, and they reported almost $300,000 in sales, with $30,000 coming from the Curl Up & Shine product alone in the previous year.
How It Went
The company’s position before Shark Tank
Controlled Chaos faced challenges due to overexpansion resulting from a distribution deal that required the development of a full product line. This decision led to excess inventory and a pause in advertising. The company’s sales for the past two years remained flat at around $85,000, with $30,000 coming from Curl Up & Shine. Alanna, one of the founders, invested over $300,000 into the business, which impacted her other salon business.
Despite having a promising product, the company needed additional funding for rebranding, repackaging, and fulfilling a purchase order from a major distributor. The founders expressed the need for financial support to revive the business and make necessary changes to their packaging.
The Negotiations:
The negotiations saw multiple Sharks making offers. Kevin offered $50,000 for 50%, focusing solely on the Curl Up & Shine product and excluding other items in the product line. Lori offered $60,000 for 50%, emphasizing her ability to move the product quickly on QVC. Barbara made a unique offer, proposing $50,000 for 51% but only taking 1/3 of the profits, aiming to guide the business strategically.
However, Lori sweetened her offer by increasing it to $60,000 for 50%, creating a bidding war. Despite the competitive offers, the founders ultimately chose Lori’s offer, highlighting her expertise and connections in the beauty industry, particularly on QVC. The negotiation showcased the Sharks’ interest in the product and the founders’ decision-making process, ultimately resulting in a deal with Lori.
