HangEase Folding Hangers
DEAL
EPISODE SUMMARY
🕓 Air Date: May 2, 2014
Asking For:
$80,000 for 30%
Investor:
Mark Cuban, Lori Greiner (50/50)
Deal:
$80,000 for 30%
PRODUCT SUMMARY
HangEase is a collapsible clothing hanger designed to make it easier to remove clothes from racks and hang them back up, reducing the likelihood of damage to clothes and saving time and money for users.
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Background Story
HangEase, founded by Ryan from Plano, Texas, is a testament to ingenuity and entrepreneurial spirit that can blossom at any age. At just 19 years old, Ryan’s journey began in the third grade during a school project called the Invention Convention. Growing up in Plano, Texas, Ryan’s innovative spark ignited when he encountered a common household problem in his own closet – broken plastic hangers and stretched-out shirt necks. This led him to develop HangEase, a collapsible clothing hanger aimed at simplifying the process of hanging and removing clothes from racks while minimizing damage.
Despite the simplicity of the product, HangEase represents years of dedication and refinement. Ryan’s background, though young, is marked by a tenacious pursuit of his entrepreneurial dreams. Following the success of his childhood invention, which saw a significant order from a major retailer, Ryan temporarily shelved HangEase to focus on his education. Now a sophomore at S.M.U., Ryan is ready to resurrect his childhood creation and take it to new heights.
Ryan’s experience as a young entrepreneur showcases not only his creativity but also his resilience and determination to bring his vision to life. His journey from a third-grade project to securing a deal on Shark Tank with seasoned investors like Mark Cuban and Lori Greiner exemplifies the power of perseverance and belief in one’s ideas. As HangEase prepares to re-enter the market, Ryan’s story serves as inspiration for aspiring entrepreneurs of all ages, proving that with passion and dedication, anything is possible.
The Product
HangEase revolutionizes the way people interact with their clothing, offering a simple yet innovative solution to common frustrations. The collapsible clothing hanger features a hinge mechanism at its center, allowing it to collapse when pressure is applied, facilitating effortless removal of clothes from racks without stretching or damage.
To hang clothes, users insert the hanger into the shirt neck and pop it back out, streamlining the process and preserving the integrity of garments. HangEase’s design not only enhances convenience but also offers practical benefits. It eliminates the need for flimsy plastic hangers prone to breakage and prevents stretched-out shirt necks, ultimately saving users time and money by prolonging the lifespan of their clothing.
The product is suitable for a wide range of clothing items, including shirts, blouses, dresses, and more, making it a versatile solution for any wardrobe. HangEase can be purchased online through the company’s website or through select retail partners.
Pricing varies depending on quantity and retailer, but individual hangers typically retail for around $3.89 for a four-pack. With its durable construction and user-friendly design, HangEase is poised to become a staple in households and retail stores alike, offering a practical solution to a common problem with universal appeal.
How It Went
The company’s position before Shark Tank
HangEase has demonstrated strong potential in the market, as evidenced by its previous success in securing a major order from Walmart for 400,000 hangers, generating $200,000 in revenue. However, despite this initial traction, the company faced challenges in sustaining its momentum due to perceived marketing issues. As a result, HangEase temporarily halted its retail operations, allowing founder Ryan to focus on his education. Currently, HangEase is poised for a comeback under Ryan’s leadership and with the support of investors Mark Cuban and Lori Greiner. The company’s financial health is stable, with profits reinvested into marketing and product development.
While HangEase does not currently have any formal partnerships or wholesalers in place, its previous success in securing a large order from Walmart demonstrates its potential for widespread distribution. The company’s primary customer base consists of consumers seeking practical solutions to common household problems, such as damaged clothing from traditional hangers. With its user-friendly design and durable construction, HangEase appeals to a broad demographic, from busy professionals to families looking to simplify their daily routines. In terms of funding, HangEase recently secured $80,000 from Mark Cuban and Lori Greiner on Shark Tank, providing the necessary capital to relaunch the product and implement marketing strategies.
This infusion of funds, combined with Ryan’s entrepreneurial vision and the expertise of his investors, positions HangEase for success in the competitive retail landscape. As for the company’s structure, HangEase operates as a lean startup with Ryan at the helm, supported by a small team dedicated to product development, marketing, and customer service. With a clear focus on innovation and customer satisfaction, HangEase is poised to regain its position as a leader in the clothing hanger market.
The Negotiations:
During the negotiations on Shark Tank, Ryan from HangEase faced scrutiny and skepticism from some of the Sharks regarding the necessity and uniqueness of his product. However, Ryan remained composed and confident in his invention, highlighting its practical benefits and previous success. He initially sought $80,000 for 30% equity in his company.
While some Sharks expressed doubts about the market demand and competition for HangEase, Mark Cuban and Lori Greiner recognized its potential and made a joint offer of $80,000 for 30% equity, exactly what Ryan had asked for. Their offer was contingent upon the validity of HangEase’s patent and the protection it offered against potential competitors. Ryan eagerly accepted their offer, grateful for the opportunity to collaborate with experienced investors who shared his vision for the product’s future success.
The negotiation process showcased Ryan’s resilience and determination to bring his childhood invention back to the market, despite facing challenges and setbacks along the way. With the support of Mark Cuban and Lori Greiner, HangEase received the necessary funding and guidance to relaunch the product and capitalize on its market potential. The negotiation concluded smoothly, with Ryan expressing gratitude for the opportunity and excitement for the future of HangEase under the mentorship of his new investors.
