SWAG Essentials Soaps & Grooming Products
NO DEAL
EPISODE SUMMARY
🕓 Air Date: December 5, 2014
Asking For:
$125,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
S.W.A.G. Essentials offers the S.W.A.G. Bar, a three-in-one grooming product designed to cleanse, exfoliate, and disinfect the skin to address issues like razor burn and folliculitis.
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Background Story
Lydia Evans, the founder of Soaps Washes & Grooming Essentials (S.W.A.G. Essentials), hails from Houston, Texas. Armed with eight years of experience in dermatology as a licensed esthetician, Lydia’s journey into the world of men’s grooming began when her brother, a seasoned barber of 15 years, reached out for assistance. He sought a solution for his clients grappling with razor burn and hair bumps, known as folliculitis. Motivated by her passion for skincare and the desire to alleviate these common grooming issues, Lydia embarked on a mission to create a product that would revolutionize men’s grooming routines.
The result was the S.W.A.G. Bar, a three-in-one grooming essential that not only cleanses and exfoliates but also disinfects the skin’s surface. The inspiration for the S.W.A.G. Bar emerged from Lydia’s deep understanding of the dermatological challenges faced by her brother’s clientele. Her expertise in skincare, coupled with her brother’s firsthand insights from the barbershop, provided a unique foundation for the creation of this innovative product. Launching the S.W.A.G. Bar marked a significant moment for Lydia, transforming her from a licensed esthetician into an entrepreneur. The product quickly gained popularity, becoming a sought-after solution for individuals struggling with folliculitis and razor burn.
Lydia’s commitment to creating a high-quality product with 63 natural ingredients reflects her dedication to skincare and the well-being of her customers. Despite facing challenges in scaling up production from her home-based operation, Lydia’s vision extends beyond local barbershops, aiming for global recognition and dominance in the men’s grooming market. With a strong foundation in dermatology and a passion for skincare, Lydia Evans continues to navigate the entrepreneurial landscape, driven by the success of her innovative S.W.A.G. Bar.
The Product
The S.W.A.G. Bar by Soaps Washes & Grooming Essentials is a revolutionary three-in-one grooming product designed to elevate the men’s skincare experience. Tailored to address common issues like razor burn and folliculitis, this proprietary bar offers a unique combination of cleansing, exfoliating, and disinfecting properties in a single-use application.
The bar’s effectiveness lies in its 63 natural ingredients, carefully curated by Lydia Evans, a licensed esthetician with eight years in dermatology. Its versatility makes it an essential tool for men’s daily grooming routine, simplifying the process and promoting healthier skin. The inclusion of a loofah, a natural sponge with exfoliating properties, adds an extra layer of effectiveness.
Sold at a retail price of $15, the S.W.A.G. Bar boasts an impressive 75% profit margin. Customers can purchase the product both online, through the company’s website, and in-person at Lydia’s brother’s barbershop in Houston, Texas. With a focus on natural ingredients and dermatological expertise, the S.W.A.G.
Bar offers men an innovative solution to skincare challenges, promising a more comfortable and effective grooming experience. As Lydia explores potential expansion to cater to women’s skincare needs, the S.W.A.G. Bar stands as a testament to the fusion of expertise and innovation in the world of grooming essentials.
How It Went
The company’s position before Shark Tank
Soaps Washes & Grooming Essentials (S.W.A.G. Essentials) has demonstrated promising performance, with Lydia Evans at the helm navigating the company’s growth. The company has generated $54,500 in sales, primarily driven by online purchases, constituting 75% of total sales, and in-person transactions at Lydia’s brother’s barbershop, contributing the remaining 25%. This distribution strategy has allowed S.W.A.G. Essentials to establish a presence both in the digital marketplace and the local grooming scene.
Lydia currently operates the business from her home, where she produces the S.W.A.G. Bar in 20-gallon batches. However, to meet the growing demand and scale the production, Lydia expressed the need for funding to acquire larger equipment and move the operation to a warehouse. Lydia mentioned sales through her brother’s barbershop and her website, suggesting a direct-to-consumer model. The company’s financial health is reflected in the $15 retail price, providing an impressive 75% profit margin, indicating solid profitability at the current scale.
During the negotiations in the Tank, none of the Sharks offered a deal, citing concerns about the early stage of the business and the challenges Lydia might face in scaling up production. Overall, S.W.A.G. Essentials presents a promising venture, driven by Lydia’s passion, skincare expertise, and the initial success of the S.W.A.G. Bar. The need for funding and scaling up operations highlights the potential for expansion, making it a company to watch in the evolving landscape of men’s grooming essentials.
The Negotiations:
In the Shark Tank negotiation for Soaps Washes & Grooming Essentials (S.W.A.G. Essentials), Lydia Evans entered seeking a $125,000 investment for a 20% equity stake in her company, presenting the innovative S.W.A.G. Bar. While the Sharks acknowledged the uniqueness of the product, concerns were raised about the early stage of the business and Lydia’s ability to scale production. Mr. Wonderful (Kevin O’Leary) questioned Lydia about the product’s ingredients and whether she had patented the formulation. Lydia revealed the S.W.A.G.
Bar contained 63 different natural ingredients and clarified that she had not patented the product to keep the formulation proprietary. Despite Lydia’s impressive profit margin of 75% and $54,500 in sales, the Sharks, particularly Kevin O’Leary and Damon John, expressed reservations. O’Leary emphasized the challenges of scaling a kitchen table operation, and John raised concerns about the untested and unproven nature of the product. Ultimately, none of the Sharks offered a deal. O’Leary and John both declared they were out due to the early stage of the business and the perceived hurdles in scaling production.
Lori Greiner and Robert Herjavec did not make specific offers, while Mark Cuban was silent during the negotiations. Despite not securing an investment, Lydia left the Tank with positive feedback on her innovative product. Damon John commended her decisions in life that led her to this point but mentioned he wasn’t the right partner. Despite the lack of a deal, Lydia remained optimistic about the excitement her product generated and her potential for future success.
