NicePipes Apparel
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 13, 2017
Asking For:
$100,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Nicepipes Apparel, founded by Lisa Binderow, offers unique leg warmers and arm warmers made from the same fabric as yoga pants, adding style, color, and functionality to workout wardrobes.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Nicepipes Apparel, based in Los Angeles, was founded by Lisa Binderow, a yoga teacher with a passion for fitness and fashion. The company was born out of Lisa’s personal struggle with the limited options for leg warmers in the active wear market. Walking home from teaching a yoga class, she found herself cold in her crop pants, unable to find suitable leg warmers that were both comfortable and stylish. Frustrated with the itchy, unreliable leg warmers available at the time, Lisa took matters into her own hands. The idea for Nicepipes came to her during that chilly walk home.
She envisioned leg warmers and arm warmers made from the same high-quality fabric as yoga pants, providing not only warmth but also adding a touch of style to every workout wardrobe. In the winter of the previous year, about 18 months before the Shark Tank pitch, Lisa turned her vision into reality. She designed and produced leg warmers that were unique in the market. Nicepipes became a manifestation of her determination to create a product that combined functionality and fashion.
Starting out by selling the innovative leg warmers from her apartment, Lisa’s business quickly gained traction. Within a short span, Nicepipes expanded to be available in 40 stores, mainly in yoga studios and gyms. The company’s origin story reflects Lisa’s entrepreneurial spirit, blending her expertise as a yoga teacher with a keen eye for fashion, resulting in the creation of a product that addresses a specific need in the active wear market.
The Product
Nicepipes Apparel specializes in unique leg warmers and arm warmers designed by founder Lisa Binderow. The products are crafted from the same high-quality fabric as yoga pants, offering a perfect blend of comfort, style, and functionality.
The leg warmers and arm warmers from Nicepipes serve as versatile accessories for workout enthusiasts. They are carefully designed to add a pop of color and style to any workout wardrobe while providing the warmth needed during cooler seasons. Unlike traditional leg warmers, Nicepipes’ innovative design ensures they stay in place and do not compromise on comfort.
Available in various colors and patterns, Nicepipes cater to diverse preferences, allowing customers to express their individuality during fitness activities. The products are priced at $42, providing an affordable option for those looking to enhance their workout attire with a touch of flair.
Customers can conveniently purchase Nicepipes through the company’s website, making it easily accessible to a broad audience. Additionally, the products are stocked in 40 stores, predominantly in yoga studios and gyms, offering customers the opportunity to physically experience and purchase them in person.
The pricing strategy reflects the balance between quality and affordability, making Nicepipes an attractive choice for fitness enthusiasts seeking both functionality and fashion in their activewear accessories. With positive feedback from the Sharks during the pitch, the product’s design and appeal were acknowledged, reinforcing its potential in the active wear market.
How It Went
The company’s position before Shark Tank
Nicepipes Apparel has experienced notable growth since its inception about 18 months ago. The company, founded by Lisa Binderow, started with sales from her apartment and has expanded to be featured in 40 stores, primarily in yoga studios and gyms. This expansion reflects the product’s popularity within fitness communities. While the Sharks expressed skepticism about the company’s $1 million valuation during the pitch, Nicepipes has demonstrated resilience and market appeal. The leg warmers and arm warmers have found a niche in the active wear market, adding style and functionality to workout wardrobes.
As for partnerships, the pitch didn’t mention specific collaborations or partnerships beyond Lisa’s interaction with the Sharks. However, Barbara’s offer during the pitch included a contingent partnership with Grace and Lace, a leggings company she previously invested in on Shark Tank. This proposed partnership could bring valuable social media exposure and marketing support to Nicepipes.
Nicepipes primarily sells its products through its website, providing an accessible online platform for customers. The leg warmers are also distributed to 40 physical stores, indicating a presence in both digital and brick-and-mortar retail spaces.Lisa mentioned that she had invested almost $300,000 of her own money into the business, covering expenses like inventory. Regarding the company’s structure, Lisa highlighted her role as the CEO and founder. However, Sharks raised questions about her effectiveness as a CEO, suggesting a potential need for additional expertise in business operations.
The Negotiations:
The negotiations during Nicepipes Apparel’s Shark Tank pitch were marked by skepticism from the Sharks about the company’s $1 million valuation. Lisa Binderow, the founder and CEO, asked for $100,000 in exchange for a 10% equity stake. Barbara Corcoran made the first offer, proposing $100,000 for a 40% stake in the company. However, Barbara’s offer came with a significant condition – it was contingent on Grace and Lace, a leggings company Barbara had previously invested in, agreeing to partner with her on the deal. This contingent offer was intended to leverage the social media success and marketing capabilities of Grace and Lace to benefit Nicepipes.
Lisa hesitated in accepting Barbara’s offer, prompting a counteroffer from Lisa of $100,000 for a 25% stake. Barbara declined this counteroffer, leading to Lisa ultimately rejecting Barbara’s initial proposal. Despite Barbara’s emphasis on the potential benefits of partnering with Grace and Lace, Lisa chose not to accept the deal, expressing her reluctance to give away 40% of her business.
The negotiations showcased the Sharks’ concerns about the business valuation, the lack of proprietary features in the product, and the company’s relatively small market presence. Lisa remained steadfast in her belief in the company’s potential and her ability to figure things out, even in the face of skepticism from the Sharks. While the pitch did not result in a deal, it highlighted Lisa’s determination and belief in her business, leaving the door open for potential future growth and success for Nicepipes Apparel.
