Lip Bar Lipstick
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 6, 2015
Asking For:
$125,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
The Lip Bar offers a thematic line of lipsticks in a wide range of colors, named after popular cocktails, emphasizing self-expression and responsible cosmetics.
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Background Story
Founded in the vibrant borough of Brooklyn, New York, The Lip Bar is the brainchild of entrepreneurs Melissa Butler and Rosco Spears. The genesis of The Lip Bar stems from Melissa’s frustration with the limited and monotonous offerings of the beauty industry. Questioning why lipsticks only came in standard reds, pinks, and nudes, and disenchanted by the prevalence of unnecessary chemicals in cosmetic products, Melissa refused to adhere to the conventional standards of beauty imposed on her. In response to this dissatisfaction, The Lip Bar was conceived with a mission to redefine beauty by promoting self-expression and responsible cosmetics.
Melissa Butler, driven by a passion for empowering women to embrace their individuality, joined forces with Rosco Spears to bring this vision to life. The duo set up shop in Brooklyn, infusing the spirit of the borough’s creativity and diversity into their thematic lipstick line. The idea behind The Lip Bar goes beyond creating a cosmetic product; it’s about challenging the beauty industry norms and encouraging women to break free from cookie-cutter beauty standards. The founders believe that beauty should be diverse, fun, and accessible to everyone, regardless of the societal expectations ingrained in the industry.
With a commitment to using organic, fair-trade shea butter, organic castor and avocado oils, and a strict no-parabens policy, The Lip Bar’s lipsticks are more than just a makeup accessory — they are a form of self-expression. The thematic approach of naming lipsticks after popular cocktails adds a unique touch, embodying the essence of a lively and inclusive bar atmosphere. Melissa Butler’s background in chemistry and her determination to offer an alternative to conventional beauty standards have driven The Lip Bar to become a beacon of empowerment in the cosmetics industry.
The Product
The Lip Bar’s product line stands out as a vibrant and thematic collection of lipsticks designed to empower women through self-expression. Offering a wide array of hues, from spicy reds to casual nudes and even electric blues, each lipstick is carefully crafted with organic, fair-trade shea butter, organic castor and avocado oils. The commitment to being vegan and cruelty-free ensures ethical beauty practices.
The lipsticks are more than just colorful cosmetics; they represent a fusion of empowerment and responsibility. Themed after popular cocktails, the lipsticks add a playful element to the beauty routine, allowing users to express their personality with every application. The creamy and smooth texture, achieved through the inclusion of shea butter, ensures a comfortable and luxurious feel.
To address the challenge of finding the perfect shade online, The Lip Bar has introduced an innovative app. This app allows customers to easily create their custom color from a selection of ten shades, providing a personalized touch to the product. The cost for a custom lipstick is $32, reflecting the brand’s commitment to quality and individuality.
Customers can purchase these unique lipsticks directly from The Lip Bar’s website, providing a convenient and direct-to-consumer approach. The pricing strategy at $14 per lipstick ensures a balance between affordability and the premium quality of the product, making The Lip Bar’s offerings accessible to a diverse audience seeking not just cosmetics, but a statement of empowerment and individuality.
How It Went
The company’s position before Shark Tank
The Lip Bar, despite being a relatively young player in the cosmetics industry, has demonstrated commendable performance since its inception. As of now, the company has generated $107,000 in sales, a noteworthy achievement considering it has been exclusively through their website over the past two years. This showcases a growing customer base and an initial success in the direct-to-consumer model. While facing distribution challenges, The Lip Bar has engaged with beauty buyers from large retailers who have expressed admiration for the product.
However, the company’s struggle with distribution has led to the exploration of innovative solutions, such as the Lip Bar Mobile—a novel concept currently under construction in Detroit. This mobile unit aims to overcome traditional distribution challenges by bringing The Lip Bar directly to consumers. As for funding, the company’s founders, Melissa Butler and Rosco Spears, have been driving the business largely independently. The founders have demonstrated resourcefulness by developing an app that allows customers to create custom colors, providing an additional avenue for revenue.
The Lip Bar’s customer base consists of individuals seeking not only high-quality cosmetics but also products that represent empowerment and individuality. The company’s commitment to inclusivity and offering a diverse range of shades aligns with the preferences of a broad demographic. At present, the company’s structure involves Melissa Butler crafting the lipsticks by hand at home, reflecting a small-scale, hands-on approach. This unique, personalized touch contributes to the brand’s appeal. The founders express a proactive attitude toward challenges, demonstrating resilience and a commitment to further growth and success in the cosmetics industry.
The Negotiations:
The negotiation for The Lip Bar on Shark Tank unfolded with Melissa Butler and Rosco Spears seeking $125,000 for a 20% equity stake in their cosmetics company. The pitch began positively, with the founders passionately presenting their thematic line of lipsticks, emphasizing empowerment and responsible cosmetics. However, the Sharks quickly raised concerns about the saturated market and the challenges of breaking into the cosmetics industry. Kevin O’Leary humorously suggested a potential market in the “clown market” for the unique colors.
Daymond John expressed skepticism about creating something genuinely new in the lipstick industry and chose not to invest. As the negotiation progressed, Lori Greiner, with her background in selling makeup, acknowledged the potential of cosmetics but highlighted the fierce competition. She opted out, stating the difficulty of conveying the true color of lipsticks through online shopping. The remaining Sharks, Robert Herjavec and Mark Cuban, continued to express doubts about the market’s viability and the uniqueness of The Lip Bar’s brand.
In the end, all Sharks decided not to invest, citing concerns about market saturation, the lipstick industry’s competitiveness, and the overall viability of the business. Despite facing rejection, Melissa and Rosco remained optimistic and determined to build The Lip Bar into a major brand. The rejection from the Sharks served as a setback, but the founders expressed their commitment to overcoming challenges, continuing their journey, and proving the Sharks wrong in the future. The negotiation showcased the difficulties of entering a highly competitive market and the importance of differentiating a brand in the cosmetics industry.
