Grip Clean – Industrial Hand Soap
DEAL
EPISODE SUMMARY
🕓 Air Date: November 13, 2015
Asking For:
$85,000 for 20%
Investor:
Lori Greiner
Deal:
$85,000 for 35%
PRODUCT SUMMARY
Grip Clean is a natural hand soap formulated with dirt, acting as an effective cleanser for grease, oils, chemicals, and toxins, particularly targeting individuals in dirty professions like automotive mechanics, construction workers, farmers, and landscapers.
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Background Story
Bryce Hudson, an X Games competitor from Murrieta, California, identified a need for a safe and effective hand-cleansing product after facing challenges cleaning his hands thoroughly from dirt, grease, and grime encountered during motorcycle competitions and garage work. Recognizing the unique properties of dirt in absorbing oils and toxins, he conceptualized Grip Clean.
The product emerged from his garage, formulated with cosmetic-grade clay, coconut oil, and olive oil, providing a natural and exfoliating solution for mechanics, construction workers, farmers, and anyone requiring deep cleansing after getting dirty.
The Product
Grip Clean is an innovative hand soap that incorporates dirt as a natural exfoliant. The soap, made from a coconut oil and olive oil base, utilizes cosmetic-grade clay to effectively absorb grease, oils, chemicals, and toxins from the skin.
The dirt content acts as an exfoliant, ensuring a thorough cleansing experience by reaching deep into the pores. The product is water-activated and designed for individuals frequently exposed to dirt, such as automotive mechanics, construction workers, farmers, and landscapers.
Priced at $5 wholesale and $8.99 retail, Grip Clean aims to position itself as a premium, natural alternative in the market. The founder acknowledges the initial high production cost but plans to optimize it with larger quantities, ultimately bringing down the cost.
Grip Clean has not yet secured retail distribution but has the commitment of five local motorcycle shops to carry the product. The target market includes those who prefer purchasing such products in person at stores like Home Depot rather than online.
How It Went
The company’s position before Shark Tank
Grip Clean is a pre-revenue company, still in its early stages. Bryce Hudson operates the business from his garage, facing limitations in production capacity due to the manual and time-consuming process. The product has garnered interest from five local motorcycle shops, reflecting an initial level of market acceptance.
Grip Clean is pre-revenue and hasn’t ventured into retail distribution on a larger scale. The focus has been on the local level, targeting motorcycle shops. The company’s strategy is to establish a presence in physical stores like Home Depot rather than emphasizing online sales. Hudson recognizes the challenges of online marketing for this product and believes that the target customers prefer buying such items in-store.
The Negotiations:
Bryce Hudson entered the Shark Tank seeking $85,000 for a 20% equity stake in Grip Clean. The sharks, particularly Robert Herjavec and Kevin O’Leary, expressed concerns about the scalability and viability of the business given the manufacturing constraints. After sharing his background as an X Games competitor and explaining the product’s unique selling points, he received an offer from Lori Greiner.
Lori offered the requested $85,000 but for a higher equity share of 35%, emphasizing her expertise in running businesses and commitment to revising packaging, and labeling, and finding a suitable manufacturer. Hudson accepted Lori’s deal, securing the investment for the desired amount but giving up a larger portion of the company. The negotiation showcased the challenges faced by the entrepreneur, including the difficulty in finding a manufacturer willing to incorporate dirt as a key ingredient. In the end, Lori’s offer provided the capital and expertise needed to take Grip Clean to the next level.
