Love Is Project Bracelets
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 15, 2021
Asking For:
$250,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Love Is Project creates artisan-made love bracelets that are inspired by different cultures and serve as a reminder of love and positivity.
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Background Story
Chrissie Lam, the founder of Love Is Project, came up with the idea after years of working in the corporate fashion world and later spending time in developing countries working with artisan groups. While living in Kenya, she created the first Love Bracelet with the Maasai tribe. The project started in January 2017 and has since created over 2,000 jobs for female artisans in 10 countries.
Chrissie’s mother, Gladys Lam, assists with finance and operations for the company. Their mission is to spread love and positivity through their products while making a positive impact on the lives of the artisans they work with.
The Product
Love Is Project’s flagship product is the Love Bracelet, which is artisan-made and inspired by the culture and craftsmanship of each place of origin. These bracelets serve as a reminder to love and be loved, and they come in various designs and materials.
The beaded bracelets, for example, have a landed cost of $3 to $5 and are sold between $18 and $30. They are available for purchase on the company’s website and are also sold in over 350 retailers in 44 U.S. states and 22 countries.
The company’s digital marketing efforts have helped drive traffic to their online store, with a cost per acquisition (CPA) of around $25. Their average order value is $75, and they have a strong base of loyal customers who spend a significant amount.
How It Went
The company’s position before Shark Tank
Love Is Project has shown substantial growth since its inception in 2017, with projected sales of $2 million by the end of the current year and total revenue of $4 million since launch. The company’s mission-driven approach has garnered attention from celebrities, international press, and big brand partnerships.
However, despite the strong brand message and social impact, the company faced challenges in profitability. In the previous year, they reported a loss of approximately $80,000, partly due to high advertising costs, which accounted for a significant portion of their revenue. The company had secured a small business loan of $200,000 and an EIDL loan of $382,000, resulting in a total debt of $582,000.
The Negotiations:
None of the sharks were convinced to invest in Love Is Project due to concerns about its financial performance and profitability. While they appreciated the mission of spreading love and positivity, the sharks ultimately saw it as a business and expected it to be financially viable. Barbara Corcoran and Mark Cuban expressed doubts about the company’s ability to turn a profit, given its history of losses and high advertising costs.
Ultimately, all the sharks decided not to invest in the company. Barbara Corcoran pointed out that the business seemed more like a charity, and the sharks were looking for investments that would yield financial returns. Lori Greiner mentioned that there was too much competition in the space, and Daymond John felt that the company’s mission was not aligned with his investment strategy.
