Doc Spartan – Skin Care and Ointment
DEAL
EPISODE SUMMARY
🕓 Air Date: February 10, 2017
Asking For:
$75,000 for 15%
Investor:
Robert Herjavec
Deal:
$75,000 for 25%
PRODUCT SUMMARY
Doc Spartan offers combat-ready ointment, an all-natural first-aid ointment designed to heal various skin-related issues, from cuts and scrapes to burns and scars.
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Background Story
Dale King and Renee Wallace, the dynamic duo behind Doc Spartan, share a compelling background story rooted in resilience, military service, and a commitment to community betterment. Hailing from Portsmouth, Ohio, Dale King, an Army intelligence officer, returned to his economically distressed hometown with a mission to make a positive impact. Witnessing the area’s decline, he established a gym, charging a mere $5 per workout in an abandoned warehouse, aiming to uplift the spirits and health of his community. It was through this gym that Dale and Renee’s paths crossed.
Renee, a mother of three and the spouse of a former Kiowa pilot with a decade of Army service, was delving into the benefits of essential oils for skincare. Motivated by her desire to avoid chemical-based products for herself and her daughter, Renee began crafting her own skincare solutions. Their collaboration took a significant turn when Dale approached Renee with a unique proposition – the creation of a healing ointment tailored for the gym-goers dealing with various skin-related issues, from ripped hands to burns. This marked the genesis of Doc Spartan’s combat-ready ointment, an all-natural first-aid solution sourced from their community’s ingredients.
Dale’s military background and commitment to community improvement merged seamlessly with Renee’s expertise in essential oils and dedication to crafting chemical-free skincare. The result was a product that not only served the practical needs of gym enthusiasts but also gained trust among members of the special operations community and neighborhood moms alike. Doc Spartan became a symbol of the American dream, blending military discipline with entrepreneurial spirit, and exemplifying how innovation can spring from a desire to heal both wounds and communities.
The Product
Doc Spartan’s combat-ready ointment is a revolutionary, all-natural first-aid solution designed to address an array of skin-related issues with efficacy and speed. Crafted from a blend of coconut oil, beeswax, Vitamin E, sweet almond oil, and essential oils like lavender, eucalyptus, and tea tree, this versatile ointment boasts a potent combination of healing properties.
The product excels in accelerating the healing process for cuts, scrapes, burns, and scars, making it an essential addition to any first-aid kit. Its application is simple and can be used on any skin-related ailment, promoting natural recovery. The ointment is particularly beneficial for gym enthusiasts dealing with hand tears and abrasions, showcasing its versatility in catering to the needs of the active lifestyle community.
Available in different sizes, including a smaller version priced at $9.99 and a larger tin at $14.99, Doc Spartan’s combat-ready ointment is accessible through their e-commerce website, which constitutes 75% of their sales. While not yet present in major retail chains, the product is envisioned to find its place in the first-aid aisle.
With a focus on natural ingredients and a proven track record in healing, Doc Spartan’s ointment not only offers practical benefits but also aligns with the growing demand for chemical-free, trustworthy skincare solutions.
How It Went
The company’s position before Shark Tank
Doc Spartan, despite its relatively short 11-month tenure, has demonstrated promising performance and a solid position in the market. The company’s health is evident in its $56,000 in sales, with a substantial 75% of revenue generated through its e-commerce website. The founders, Dale King and Renee Wallace, have strategically positioned their product in independent gyms and tattoo shops, catering to the active lifestyle and skincare niches.
The company’s distribution strategy includes presence in independent gyms and tattoo shops. This diverse network allows them to reach a varied customer base, from fitness enthusiasts to individuals seeking skincare solutions. Doc Spartan’s primary customer base appears to be online shoppers through their e-commerce platform, with plans to expand into big-chain retailers, targeting the first-aid aisle. The product’s appeal spans across different demographics, including members of the special operations community and neighborhood moms, showcasing its versatility and broad market potential.
In terms of funding, the founders secured a $75,000 deal with Robert Herjavec on Shark Tank, providing a valuable infusion of capital to further grow and scale their operations. With a cost-effective production model (95 cents to make the smaller tin and $1.70 for the larger tin), the company seems to be operating with a solid profit margin.
The Negotiations:
n the intense negotiation phase on Shark Tank, Dale King and Renee Wallace presented their combat-ready ointment from Doc Spartan, seeking a $75,000 investment for a 15% equity stake in their business. The Sharks were intrigued by the product’s potential, and the negotiation began with a spirited pitch highlighting the ointment’s versatility and the founders’ commitment to healing. While addressing concerns about the product’s claims and testing, Lori Greiner and Kevin O’Leary bowed out of the deal. Mark Cuban expressed reservations about the clarity of the product’s purpose.
However, Robert Herjavec saw potential in the branding and suggested a $75,000 investment for a 25% stake, emphasizing the product’s placement in gyms and tattoo parlors. The negotiation took an unexpected turn when Dale resisted efforts to reduce the equity stake. Herjavec held firm on the 25% equity offer, commending Dale for sticking to his guns. After a brief moment of hesitation, the deal was sealed at $75,000 for a 25% equity stake, making Robert Herjavec a strategic partner in Doc Spartan.
The negotiation showcased the founders’ resilience and belief in their product, coupled with Robert Herjavec’s recognition of the brand’s potential in unique market segments. The deal marked a successful collaboration, with both parties expressing excitement and sealing the partnership with a handshake and celebratory cheers. The investment from Herjavec is expected to propel Doc Spartan into new heights, leveraging the Shark Tank platform to expand their distribution and solidify their position in the first-aid and skincare market.
