PiperWai – Charcoal-based Deodorant
DEAL
EPISODE SUMMARY
🕓 Air Date: December 11, 2015
Asking For:
$50,000 for 10%
Investor:
Barbara Corcoran
Deal:
$50,000 for 25%
PRODUCT SUMMARY
PiperWai is a natural deodorant using a proprietary blend of ingredients, including activated charcoal, to neutralize odor and provide a healthy alternative to conventional deodorants.
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Background Story
PiperWai founders, Jess and Sarah, were driven to create their natural deodorant due to concerns about the toxic ingredients in traditional deodorants and their potential links to cancer and Alzheimer’s. Their journey began when Jess, after months of trial and error in her kitchen, found a formula that worked for her and gave some to her best friend, Sarah.
Sarah tested it in a tropical climate during a service trip to Guyana and confirmed its effectiveness. Motivated by the desire to offer a healthy alternative, they launched PiperWai, conducting market research, giving samples to friends and family, and incorporating customer feedback into their brand.
The Product
PiperWai stands out with its unique approach to natural deodorant. The proprietary blend includes super-absorbent activated charcoal, which neutralizes odor rather than merely covering it up. This charcoal cream creates a pH-balanced environment, preventing odor-causing bacteria from thriving, thus keeping sweat odorless.
The founders introduced a stick applicator prototype to address customer preferences, intending to scale production and release it for the holiday season. The product, priced at $11.99 plus shipping on their website, has gained popularity through word of mouth and earned media, with testimonials praising its effectiveness.
How It Went
The company’s position before Shark Tank
Since launching 18 months ago, PiperWai has achieved $110,000 in sales, relying solely on earned media and word of mouth. The founders have engaged with big-box retailers and major e-commerce sites to expand distribution. With a production cost of $2.74, the company has a profit margin that supports scaling production and introducing new product variations. While online sales have been the primary channel, the founders recognize the importance of retail, where 99% of deodorants are purchased.
The Negotiations:
The negotiation process involved Jess and Sarah seeking $50,000 for 10% equity. The sharks raised concerns about market share, competition, and scalability. Mark Cuban and Kevin O’Leary opted out, questioning the company’s potential for significant growth. Barbara Corcoran and Lori Greiner both made offers but sought larger equity stakes – Corcoran for 33% and Greiner for 35%.
The founders, initially resistant to higher equity percentages, eventually accepted Barbara Corcoran’s offer of $50,000 for 25%. The decision was driven by a desire to work with Corcoran, who expressed a strong dedication to hands-on involvement and a belief in the product. While Corcoran admitted her decision to beat Greiner, the founders were ultimately pleased with the outcome, securing a deal that could propel PiperWai’s growth with the support of their new partner.
