No Mo-Stache Waxing Kit
DEAL
EPISODE SUMMARY
🕓 Air Date: November 5, 2017
Asking For:
$100,000 for 25%
Investor:
Lori Greiner, Bethenny Frankel (50/50)
Deal:
$100,000 for 25% + $1/unit royalty until $200,000 is recouped
PRODUCT SUMMARY
No Mo-Stache offers mess-free cold-wax strips in a portable tin for on-the-go hair removal, revolutionizing women's beauty routines.
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Background Story
Jennifer and Gita, founders of No Mo-Stache, hail from Los Angeles, California. With 14 years of waxing experience as a beautician, Gita noticed the inconvenience of traditional waxing methods and sought to create a solution. The idea for No Mo-Stache was born out of the need for a practical, mess-free, and portable waxing kit that women could use anytime, anywhere. Their aim was to empower women by providing a discreet and convenient solution to common hairy situations.
The product gained attention after being featured in Real Simple magazine, leading to a surge in demand and substantial sales. The founders recognized the need to diversify their distribution channels after experiencing a reduction in stores from 200 to 60 in Sephora. Despite this setback, they remained resilient and secured partnerships with five more distributors, set to launch in September.
The Product
No Mo-Stache offers a revolutionary approach to hair removal with mess-free cold-wax strips conveniently packaged in a small, discreet tin. The process is simple – users rub the strip in their hands to heat the wax, pull the strip apart, apply it to the desired area, rub back and forth for hair adherence, hold the skin taut, and pull opposite hair growth. The result is smooth skin without the mess or risk of burning associated with hot, gooey wax.
The key differentiator is the product’s portability, allowing users to carry it discreetly in their bags and be prepared for impromptu situations. Sold at $18 retail, each tin contains 12 wax strips, providing 12 waxing services. With a cost of goods at $1.74 landed the product has achieved impressive sales of $400,000 in two years.
No Mo-Stache is currently available at Sephora, specifically in the checkout beauty on-the-go impulse bins. The founders have plans to expand their distribution further, aiming to launch with five additional distributors.
How It Went
The company’s position before Shark Tank
No Mo-Stache has demonstrated strong performance with $400,000 in sales over the past two years. Despite the reduction in Sephora stores from 200 to 60, the product consistently sold well in every location. The founders, Jennifer and Gita, are proactive in mitigating risk by diversifying distribution channels and securing partnerships with five new distributors set to launch in September.
The product’s presence in Sephora checkout beauty on-the-go impulse bins aligns with its convenience-focused branding. The founders have successfully entered the market, leveraging media exposure, and have plans to expand their product line beyond hair removal.
The Negotiations:
The negotiation process saw Jennifer and Gita seeking $100,000 for 25% equity. Kevin O’Leary made an offer of $100,000 for 10% equity with a $1 royalty per product sold until he received $300,000 back. Bethenny also made an offer of $100,000 for 40% and with a proposal for a broader brand under Skinnygirl, encompassing various female-focused products. Lori and Bethenny combined their efforts, offering $100,000 for 35% equity, with a $1 royalty split on each kit of No-Mo everything until they recouped their investment, after which the royalty would decrease.
After further negotiation, Lori and Bethenny increased their offer to $200,000 with royalties, and the founders agreed to the deal, securing not only the investment they sought but also strategic partnerships with two powerful and experienced businesswomen. The negotiation showcased the founders’ resilience and strategic thinking as they navigated offers to secure a deal that aligned with their vision for No Mo-Stache.
