Manscaped Men`s Grooming Products
DEAL
EPISODE SUMMARY
🕓 Air Date: October 28, 2018
Asking For:
$500,000 for 7%
Investor:
Lori Greiner, Mark Cuban (50/50)
Deal:
$500,000 for 25%
PRODUCT SUMMARY
Manscaped offers a male grooming kit, including "The Lawn Mower 2.0" trimmer for below-the-waist grooming and a specially formulated hygiene bundle.
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Background Story
Manscaped, headquartered in sunny San Diego, California, emerged from a unique convergence of personal experience, entrepreneurial spirit, and a keen understanding of a burgeoning market. The brains behind this male grooming revolution are none other than the dynamic father-son duo, Steve and Josh King. Steve, a seasoned and successful businessman, serves as the patriarch of the Manscaped venture. Hailing from a background that reflects decades of business acumen, he became an instrumental figure in guiding the company. His success in previous endeavors laid the foundation for Manscaped’s journey into the competitive world of male grooming.
Josh, the son and driving force behind the brand’s inception, brought a fresh perspective to the table. Having graduated college in 2010, he spent the subsequent five to six years immersed in the digital agencies and startup environment, honing skills in SEO and e-commerce intricacies. The catalyst for Manscaped’s creation was a night of camaraderie with friends, where they shared manscaping horror stories and recognized a common challenge – the lack of proper tools for male grooming.
Inspired by this revelation and armed with insights from the growing Millennial metrosexual movement, Josh approached his father with the idea. Together, they delved into the market, discovering its vast potential as a $3 billion industry. The collaboration extended to engaging chemists and engineers to develop the initial eight items comprising the Perfect Package, a comprehensive grooming kit aimed at refining the modern man’s self-care routine. Manscaped’s origin story encapsulates the fusion of familial bonds, entrepreneurial vision, and a keen awareness of societal shifts, resulting in a brand that not only addresses a specific need but has also become a pioneering force in the male grooming industry.
The Product
At the forefront of Manscaped’s revolutionary offerings is their flagship product, “The Lawn Mower 2.0,” a powerful and precise trimmer designed for below-the-waist grooming. This innovative device is the cornerstone of the Manscaped grooming kit, known as the Perfect Package.
The Lawn Mower 2.0 boasts cutting-edge technology, providing a seamless grooming experience. With a focus on safety and efficiency, the trimmer is adept at navigating through unruly shrubbery, offering a smooth and controlled trimming process. Its design emphasizes precision, ensuring users can sculpt and shape with confidence. The device’s power and performance make it a go-to tool for the modern man seeking optimal grooming results.
Complementing the trimmer is Manscaped’s specially formulated hygiene bundle, addressing the often-neglected aspects of male grooming. This bundle includes pH-balanced solutions crafted to hydrate and replenish delicate areas, offering a comprehensive approach to personal care.
Manscaped’s products can be purchased through their website, providing a user-friendly platform for customers to explore and select from various grooming kits and individual components. The kits are priced at $51, providing customers with a cost-effective solution for a complete grooming regimen. Individual components are also available, allowing users to tailor their purchase to specific needs.
How It Went
The company’s position before Shark Tank
Manscaped has demonstrated robust performance, solidifying its position as a key player in the male grooming industry. As of the episode, the company presented a valuation of $7.1 million, reflective of its impressive growth trajectory. Established in 2017, Manscaped faced initial challenges in messaging and market penetration but swiftly adapted, leveraging humor in marketing to resonate with its target audience.
The company’s strategic partnerships include notable investors Lori Greiner and Mark Cuban, who offered $500,000 for a 25% stake during their appearance on “Shark Tank.” This investment not only brought substantial capital but also strategic guidance and market influence. In terms of distribution, Manscaped primarily sells its products directly to consumers through its website, providing a streamlined purchasing experience. The pricing strategy, with a complete grooming kit available at $51, aligns with the company’s commitment to accessibility.
While Manscaped did face losses in its early years, with a reported $133,000 loss in the year where it achieved $1.5 million in sales, the founders explained that they were reinvesting profits into inventory and paid media. Their customer acquisition cost was $16, and the margin per kit was $7. Despite initial financial challenges, Manscaped demonstrated resilience and a strategic approach to scaling its operations. The company’s ability to adapt its marketing strategy, achieve rapid sellouts, and secure a deal with prominent Sharks indicates a strong foundation for future success. Manscaped’s financial health, coupled with strategic partnerships, positions the company for continued growth and innovation in the competitive male grooming market.
The Negotiations:
The negotiations for Manscaped on “Shark Tank” were a rollercoaster of humor, skepticism, and strategic maneuvering. Steve and Josh King entered the tank seeking $500,000 for a 7% stake in their male grooming company. Almost immediately, the Sharks expressed astonishment at the low equity ask, with Kevin O’Leary exclaiming, “7%? 7%?!” The initial offers came with a mix of skepticism and intrigue. While Lori Greiner and Mark Cuban were intrigued by the brand’s potential and offered the requested amount, they did so with a twist. The duo proposed $500,000 for a more significant 25% stake in Manscaped, valuing the company at $2 million.
This prompted Robert Herjavec to make a counteroffer, suggesting a haircut to Manscaped’s valuation by asking for $500,000 for a 35% stake. Charles Barkley, not one to mince words, bowed out early, citing his lack of personal interest in manscaping. Kevin O’Leary, too, expressed reservations about the business model and the potential return on investment. In the end, Herjavec’s offer was overshadowed by the joint proposal from Greiner and Cuban. Their combined business acumen and strategic value led to an acceptance of the $500,000 offer for a 25% stake.
The negotiation process highlighted the Sharks’ concerns about Manscaped’s financials, particularly the customer acquisition cost and profitability. Ultimately, the Kings opted for a deal that not only injected much-needed capital into the business but also brought on board strategic partners in Greiner and Cuban, enhancing Manscaped’s potential for growth and market penetration. The negotiation showcased the delicate balance between valuation, stake percentage, and the strategic value the Sharks could bring to the table.
