The Cut Buddy – Hair-Grooming Tool
DEAL
EPISODE SUMMARY
🕓 Air Date: November 12, 2017
Asking For:
$300,000 for 10%
Investor:
Daymond John
Deal:
$300,000 for 20%
PRODUCT SUMMARY
The Cut Buddy is a multi-curve hair-grooming guide tool designed for DIY grooming, allowing users to edge up and shape their beard and hairlines with precision.
WATCH HERE
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Background Story
Joshua Esnard, the founder, hails from St. Lucia and immigrated to the United States. Growing up with immigrant parents who could only provide buzz cuts, Joshua, eager to make a statement in middle school, started experimenting with cutting his own hair. Unsuccessful attempts led him to design The Cut Buddy at the age of 13, fashioning the first prototype from his dad’s folders.
Despite holding onto the invention for 15 years, it wasn’t until his girlfriend’s challenge to finish what he started that Joshua decided to turn his creation into a business. His emotional journey from a developing country to the U.S. drives his determination to succeed. With impending fatherhood, Joshua feels the weight of responsibility and sees the Sharks as mentors who can guide him beyond being just an inventor.
The Product
The Cut Buddy, presented with passion by Joshua, boasts three curves and three straight edges, accommodating diverse head shapes and hair sizes. This innovative tool allows users to achieve salon-quality grooming at home, preventing mishaps during DIY haircuts.
Priced at $14.95 for consumers, the product is wholesaled at $8.50, making it an affordable and accessible solution for both individuals and barbershops. The tool demonstrated on the show, can be utilized for precise beard and hairline grooming, enhancing confidence for DIY enthusiasts.
While the retail focus is on platforms like Target and Walmart dot-com, Joshua is in talks with Sally’s for potential shelf space. Presently, the majority of sales come from online channels, boosted by viral success on platforms like YouTube and Facebook. With over 60,000 units sold and two patents secured, The Cut Buddy has established itself as a unique and effective grooming solution.
How It Went
The company’s position before Shark Tank
Since its inception in January 2016, The Cut Buddy has demonstrated remarkable performance, achieving $700,000 in sales in 2016 alone. The unique marketing strategy involved partnering with YouTube affiliates with significant hair-related followings, resulting in a surge in sales from 20 to 400 units per day. Notably, a Facebook video went viral, accumulating 11 million views and further propelling the product into the mainstream.
Target and Walmart have recognized the potential, listing The Cut Buddy on their online platforms. While discussions with Sally’s are underway, 20% of sales currently come from wholesale clients. The product’s affordability, with a production cost of $2, positions it well in both the consumer and wholesale markets.
The Negotiations:
Joshua entered the Tank seeking $300,000 for 10%, receiving offers from both Kevin O’Leary and Daymond John. Kevin proposed $300,000 for 5% equity and a royalty of $1.50 per unit until he recoups $1 million. Daymond, intrigued by Joshua’s story and potential, offered $300,000 for 20%. After some negotiation, Daymond stood firm on the equity but expressed willingness to decrease it to 12.5%.
In an emotional moment, Joshua chose Daymond’s offer, citing the desire for mentorship and the belief that the Sharks could guide him in building a successful business. The deal was sealed, marking a significant milestone for Joshua and The Cut Buddy.
