Lipstix Remix
DEAL
EPISODE SUMMARY
đź•“ Air Date: January 29, 2010
Asking For:
$105,000 for 30%
Investor:
Barbara Corcoran, Daymond John, and Kevin Harrington (3)
Deal:
$105,000 for 50%
PRODUCT SUMMARY
Divine Innovations presents Lipstix Remix, a unique system designed for women who wear lipstick, allowing them to create new shades at home using a lipstick mold.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Jill Quillin, hailing from Knoxville, Tennessee, is the visionary founder behind Divine Innovations and the innovative product Lipstix Remix. Jill’s journey began at her kitchen table, where she embarked on a mission to revolutionize the way women interact with lipstick. As a wife and mother, she recognized the daily struggle faced by many women—wasting expensive lipstick due to the remnants left at the bottom of the tube. This realization sparked her entrepreneurial spirit, leading her to develop a solution that not only addressed this common frustration but also empowered women to be creative while saving money.
With a background in business and a keen eye for innovation, Jill poured her passion into Divine Innovations. She understood the importance of finding practical solutions that resonate with everyday consumers, especially in challenging economic times. Despite encountering hurdles along the way, including the gender-specific nature of her product and difficulties accessing funding, Jill remained determined to bring Lipstix Remix to market successfully.
Drawing from her own experiences as a consumer and her entrepreneurial drive, Jill meticulously designed Lipstix Remix to be both functional and user-friendly. Through her dedication and ingenuity, she transformed a simple kitchen tool into a game-changing beauty product that offers women the freedom to customize their lipstick shades at home. Inspired by her desire to empower women and make a positive impact in the beauty industry, Jill’s journey with Divine Innovations serves as a testament to the power of perseverance, innovation, and the pursuit of one’s passions.
The Product
Lipstix Remix by Divine Innovations is a groundbreaking system designed to revolutionize the way women interact with their lipstick collection. At its core, Lipstix Remix offers a simple yet ingenious solution to the age-old problem of wasted lipstick. The system includes a lipstick mold and a measuring cup, allowing users to effortlessly create new lipstick shades at home.
Here’s how it works: Users select their favorite lipstick colors and mix them in the provided measuring cup. After heating the mixture in the microwave for 45 seconds, they pour it into the lipstick mold and freeze it for ten minutes. The result? A brand-new lipstick shade that looks and feels just like a professionally manufactured product.
The benefits of Lipstix Remix are manifold. Not only does it empower women to express their creativity by customizing their lipstick shades, but it also helps them save money by utilizing leftover lipstick remnants that would otherwise go to waste. Furthermore, the system promotes sustainability by encouraging users to repurpose their existing lipstick collection instead of constantly purchasing new products.
Lipstix Remix can be purchased directly from Divine Innovations’ website or through various retail channels. Priced at $19.95, the system offers an affordable and accessible solution for women looking to enhance their beauty routine while reducing their environmental footprint. With its innovative design and user-friendly functionality, Lipstix Remix is poised to become a must-have accessory for lipstick lovers everywhere.
How It Went
The company’s position before Shark Tank
Divine Innovations, the company behind Lipstix Remix, has demonstrated promising growth and a strong position in the beauty industry since its inception. Initially founded by Jill Quillin in Knoxville, Tennessee, Divine Innovations has strategically positioned itself as a leader in innovative beauty solutions. Despite facing challenges due to the gender-specific nature of its product, Divine Innovations has successfully penetrated the market, with nearly 800 units of Lipstix Remix sold primarily through a mall kiosk during the holiday season, generating over $6,000 in sales.
This initial success highlights the product’s appeal and the demand for customizable beauty solutions among consumers. In terms of partnerships, Divine Innovations has collaborated with retail giants such as Bed Bath & Beyond and Buy Buy Baby to expand its distribution network. These partnerships provide the company with access to a wider customer base and increased visibility in the retail space. While the company has yet to secure significant funding beyond its initial sales revenue, the recent investment of $105,000 from Kevin Harrington and Daymond John marks a pivotal moment in Divine Innovations’ journey.
This injection of capital will fuel the company’s growth initiatives, including market expansion, product development, and marketing efforts. In terms of profitability, Divine Innovations is positioned for future success, with a lean organizational structure focused on efficiency and innovation. Overall, Divine Innovations is well-positioned to capitalize on the growing demand for customizable beauty solutions, with strong partnerships, a loyal customer base, and strategic funding to support its expansion efforts. With a focus on innovation and customer satisfaction, Divine Innovations is poised for continued success in the competitive beauty industry.
The Negotiations:
During the negotiations for Lipstix Remix on Shark Tank, founder Jill Quillin sought $105,000 for a 30% equity stake in Divine Innovations. Initially, Kevin Harrington and Daymond John made a joint offer of $105,000 for a 40% equity stake, which Jill accepted, recognizing the value of their expertise in TV retail and distribution. Despite initial tension, Barbara Corcoran expressed interest but hesitated to join the deal due to concerns about partnering with the other Sharks.
However, the negotiation took an unexpected turn when Barbara reconsidered and decided to join the deal, provided that Kevin and Daymond reduced their equity stake to accommodate her inclusion. This led to a revised offer of $105,000 for a 50% equity stake, with Kevin and Daymond each owning 20% and Barbara owning 10%. Although initially reluctant, Kevin and Daymond agreed to the revised terms, acknowledging Barbara’s expertise and the importance of having a female partner.
Ultimately, the negotiation concluded with a mutually beneficial agreement, allowing Divine Innovations to secure the funding and expertise needed to accelerate its growth. The negotiation showcased the dynamics of the Sharks’ investments and highlighted the importance of collaboration and compromise in striking a successful deal.
