Range Beauty
DEAL
EPISODE SUMMARY
🕓 Air Date: February 25, 2022
Asking For:
$150,000 for 6%
Investor:
Lori Greiner, Emma Grede (50/50)
Deal:
$150,000 for 20%
PRODUCT SUMMARY
Range Beauty offers inclusive makeup with natural skin care, providing clean beauty for underrepresented shades using botanicals, specifically made for eczema and acne-prone skin.
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Background Story
Range Beauty, based in Atlanta, Georgia, was founded by cousins Alicia and Myisha. Alicia, with a passion for fashion design and merchandising, pursued her education at Virginia Tech, immersing herself in the world of fashion. Her experiences behind the scenes at runway shows and campaign shoots revealed a stark reality: the lack of representation and products for individuals with deeper skin tones in the beauty industry. This observation struck a personal chord as she grappled with severe cystic acne and eczema, which affected her self-confidence and made her feel invisible in the realm of beauty.
Simultaneously, Myisha, a United States Army veteran and single mother, played an integral role in the business as the product manager. She had gained valuable insights into skincare through her education in aesthetics, further enhancing their understanding of the specific needs of individuals with eczema and acne-prone skin.
Motivated by their personal experiences and the shared struggle of finding makeup and skincare products that catered to their skin types, Alicia and Myisha embarked on a mission to bridge this gap. They envisioned a brand that not only provided inclusive makeup for underrepresented shades but also prioritized clean beauty tailored for individuals dealing with eczema and acne. Thus, Range Beauty was born, with a clear mission to empower individuals of all skin tones to feel beautiful, comfortable, and confident in their own skin.
The Product
Range Beauty’s flagship product, the True Intentions Hydrating Foundation, is a testament to their commitment to inclusive and clean beauty. Available in 21 shades that span a comprehensive range of underrepresented skin tones, the foundation is formulated with a blend of natural ingredients carefully chosen for their skin-nourishing properties. Calendula flower extract soothes itchiness and irritation, while fresh clay helps eliminate toxins, and vitamin E promotes a healthy, radiant complexion.
Designed to cater to individuals with eczema and acne-prone skin, the foundation offers both coverage and skincare benefits. It provides a smooth, hydrating finish that conceals imperfections while nurturing the skin underneath. Customers can also explore other products in their range, such as the Bali Full Body Glow, Golden Hour Dual Eye/Highlight, True Intentions Bronzing Primer, and Smooth Out Translucent Powder, all of which share the brand’s commitment to clean and inclusive beauty.
Range Beauty products can be purchased online through their e-commerce platform and are also available at select retailers, including their prominent partner, Target. Positioned at a masstige price point, the True Intentions Hydrating Foundation retails at $21, reflecting the brand’s dedication to providing high-quality products at an accessible price for their diverse customer base.
How It Went
The company’s position before Shark Tank
Range Beauty has demonstrated robust growth and an increasingly influential presence in the beauty industry, particularly within the realm of inclusive and clean beauty products. Leveraging a successful e-commerce strategy, the company has managed to establish a strong foothold in the market. Their strategic utilization of a sample kit for foundations, which encouraged customers to transition to full-sized products, has proven to be a key driver of their sales success.
The company’s notable partnership with retail giant Target has significantly contributed to their heightened visibility and increased sales figures. They have successfully positioned themselves within the masstige market segment, offering products that bridge the gap between drugstore and high-end luxury beauty brands. This strategic positioning has allowed them to capture a diverse customer base, particularly individuals seeking inclusive makeup and skincare solutions tailored to their specific needs. Range Beauty’s funding has primarily been derived from a combination of bootstrapping efforts and the recent investment secured from the Sharks on “Shark Tank.”
This infusion of capital, alongside the invaluable expertise and support offered by their new partners, is poised to fuel the company’s expansion and further amplify its reach in the beauty market. Their financial performance has showcased a positive trajectory, with revenue reaching $330,000 in the previous year, signaling a significant leap from their initial capital of $20,000. While detailed information regarding profits and losses was not explicitly provided, the company’s successful collaboration with major retailers and the endorsement from prominent figures like Beyoncé has undoubtedly bolstered their profitability.
The Negotiations:
During the negotiations on “Shark Tank,” Range Beauty founders Alicia and Myisha impressed the Sharks with their compelling product line and the evident market demand for their inclusive and clean beauty solutions. While some Sharks, such as Mark Cuban, chose to opt out, citing a lack of understanding of the beauty industry, others, including Lori Greiner and Emma Grede, recognized the potential and value of the brand’s mission and offerings.
Lori and Emma presented an initial offer of $150,000 for 20% equity, highlighting their extensive industry expertise and commitment to supporting the company’s growth. The founders attempted to negotiate the equity percentage down to 10%, but the Sharks did not agree. Lori and Emma emphasized the challenges of retail and the need for continuous innovation and market competitiveness, stressing the value of their combined experience and network in the industry. Furthermore, they underlined the potential benefits of the company’s association with The Fifteen Percent Pledge, a nonprofit promoting support for Black-owned businesses.
Ultimately, after further deliberation and understanding the significant value the Sharks could bring to their business, Alicia and Myisha accepted the offer of $150,000 for 20% equity. The founders expressed enthusiasm and gratitude for the support and expertise the Sharks would provide, foreseeing a prosperous future for Range Beauty under their guidance. The negotiation process highlighted the mutual recognition of the brand’s potential and the Sharks’ shared vision for its future success.
