Glace Cryotherapy
DEAL
EPISODE SUMMARY
đź•“ Air Date: February 26, 2016
Asking For:
$100,000 for 15%
Investor:
Barbara Corcoran
Deal:
$100,000 for 30%
PRODUCT SUMMARY
Glacé Cryotherapy offers a cutting-edge spa therapy using whole body cryotherapy to reduce inflammation, alleviate pain, and improve overall well-being.
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Background Story
Brittney Scarlett and her brother Skyler, known as “The Ice Siblings,” founded GlacĂ© Cryotherapy in Carmel Valley, California, 11 months ago. Dissatisfied with their previous jobs, they took a leap of faith and started the business, which aimed to provide a unique spa therapy focused on reducing inflammation. The Scarlett family made significant sacrifices, with their father selling his house to finance the business, and Skyler living in a barn on their mom’s property. Despite the challenges, they were determined to make their cryotherapy business a success.
The Product
GlacĂ© Cryotherapy’s product is centered around whole body cryotherapy, a process where individuals step inside a cryosauna and experience cool, dry air circulating around their bodies at temperatures as low as -250 degrees Fahrenheit for up to three minutes.
The therapy is designed to reduce inflammation, leading to benefits such as decreased muscle soreness, pain management, improved mood, increased energy, calorie burn, and enhanced skin health through increased collagen production. The process is considered safe, with the cold air being dry and tolerable.
How It Went
The company’s position before Shark Tank
Within 11 months of starting in Carmel, Glacé Cryotherapy achieved $140,000 in sales and $115,000 in gross profit. The Scarlett siblings have managed their overhead efficiently, with monthly expenses around $3,200. They operate as a cryotherapy spa, primarily incurring costs related to gas. The business targets a niche market, including professional athletes who endorse the therapy.
Glacé Cryotherapy mainly sells single sessions at $65, but their primary revenue stream comes from monthly memberships priced at $390. The founders expressed a desire to expand by seeking an investment of $100,000 to open another Glacé in San Francisco.
The Negotiations:
The negotiation process saw the Scarlett siblings facing skepticism from some sharks, particularly Kevin O’Leary, who questioned the uniqueness of their business model. Barbara Corcoran recognized the potential for quick profitability in franchise expansion and offered $100,000 for a higher equity stake of 30%.
Mark Cuban, Lori Greiner, and Robert Herjavec opted out of the deal, citing concerns about the scalability and business model. However, Corcoran’s belief in the immediate profitability of the venture led to a successful deal, and GlacĂ© Cryotherapy accepted the $100,000 investment for 30% equity with Barbara Corcoran.
