Simple Sugars Scrub
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 29, 2013
Asking For:
$100,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Simple Sugars offers all-natural sugar scrubs that gently exfoliate, providing deep moisture and complete skin nourishment in one step, suitable even for sensitive skin.
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Background Story
Founded by Lani Lazzari at the age of 11, Simple Sugars originated from her struggle with eczema and the lack of suitable skincare products. Determined to find a solution, Lani began creating her own natural sugar scrubs. Over the years, her products gained popularity through word-of-mouth, leading to the formal establishment of Simple Sugars.
Despite facing challenges as a young entrepreneur, Lani’s dedication and passion drove the company’s growth, even while balancing high school studies. With the support of her family and her own unwavering commitment, Lani transformed Simple Sugars from a home-based venture into a thriving business with a focus on quality and natural skincare solutions.
The Product
Simple Sugars’ sugar scrubs utilize gentle exfoliation to remove dead skin cells, allowing oils to penetrate and provide moisture, resulting in smooth and nourished skin. They are made from all-natural ingredients, free from artificial additives, and are suitable for sensitive skin. The scrubs are available in various scents, such as strawberry, coconut, and lemonade, priced at $15.95 for the large size.
How It Went
The company’s position before Shark Tank
Simple Sugars has achieved sales of $55,000 year-to-date, with a projected revenue of $100,000 for the current calendar year. The company maintains high profit margins of 75% to 80%. Sales primarily occur through their website, with additional distribution in local high-end grocery chains.
Simple Sugars has also expanded its retail presence from 6 to 20 stores and is negotiating a deal worth $150,000 to $400,000 with an online skincare retailer. The company operates out of a facility in Pittsburgh, employing three staff members for manufacturing and administrative tasks.
The Negotiations:
Lani initially sought $100,000 for 10% equity, valuing her company at $1 million. However, the sharks expressed skepticism about the valuation, given the competitive nature of the cosmetics industry and the lack of proprietary elements in the product.
Mark Cuban ultimately offered $100,000 for 33% equity, which Lani accepted after negotiation. Despite initial resistance to a higher equity stake, Lani recognized the value of Mark’s expertise and commitment to the business’s growth.
