Beardaments Beard Ornaments
DEAL
EPISODE SUMMARY
🕓 Air Date: December 1, 2019
Asking For:
$150,000 for 10%
Investor:
Kevin O'Leary
Deal:
$150,000 for 25%
PRODUCT SUMMARY
Beardaments offers festive beard accessories, including ornaments, lights, and glitter, allowing individuals to decorate their beards for various occasions.
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Background Story
Jason McOmber, the founder of Beardaments, came up with the idea at a Christmas party where he decided to decorate his beard for fun. After a positive response from others, he started selling beard ornaments, investing $1,500 of his own money to order 1,000 packs from China.
The business took off, reaching $80,000 in sales in the first year, followed by impressive growth each subsequent year. Despite being the director of sales for a telecom distributor and not having a background in e-commerce, McOmber’s entrepreneurial spirit led Beardaments to substantial success.
The Product
Beardaments offers a range of beard accessories, including regular ornaments priced at $9.99 per pack and light-up ornaments at $19.99 per pack. The products can be clipped anywhere on the beard and last for about two days of continuous usage.
The company has gained attention through viral videos, accumulating 130 million views in 2017, resulting in significant sales without marketing costs.
How It Went
The company’s position before Shark Tank
Beardaments has experienced significant growth, with sales increasing each year. The product is sold directly to customers, and the company has achieved success without major marketing expenses. Jason McOmber, the founder, is a director of sales for a telecom distributor and has been running Beardaments as a part-time gig, managing everything from his basement. The company is currently structured as a bootstrapped venture.
Beardaments has demonstrated impressive growth, with sales increasing from $80,000 in the first year to a projected $600,000 to $750,000 in the current year. The company sells directly to customers, and McOmber, despite not being an e-commerce expert, has successfully managed the business, utilizing viral videos and email blasts to reach a broad audience. The profit margins are substantial, with a low production cost of $1.66 for regular ornaments and $4.66 for light-up ornaments.
The Negotiations:
The Sharks were impressed by Beardaments’ success and quirky product but acknowledged that McOmber was already doing well without external investment. Mark Cuban and Lori Greiner both commended McOmber but decided not to invest, stating that the business didn’t need a Shark. Kevin O’Leary and Robert Herjavec were the remaining interested Sharks.
O’Leary made a deal offering $150,000 for 25%, which McOmber accepted. While Herjavec acknowledged the success of Beardaments, he chose not to invest, stating that McOmber’s part-time commitment to the business did not align with his investment criteria. In the end, O’Leary secured the deal, and McOmber expressed gratitude for the Christmas miracle, jokingly referencing O’Leary as the Grinch-turned-savior.
