The Longhairs – Hair Ties For Guys
DEAL
EPISODE SUMMARY
🕓 Air Date: January 14, 2018
Asking For:
$95,000 for 10%
Investor:
Mark Cuban
Deal:
$100,000 for 20%
PRODUCT SUMMARY
The Longhairs is a men's grooming-and-lifestyle brand and global fraternity, primarily known for its flagship product, Hair Ties for Guys, designed to make tying up long hair stylish and masculine.
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Background Story
Lindsay Barto, aka El Moreno, and Chris Healy, better known as El Rubio, are the founders of The Longhairs, based in San Diego, California. Their journey began when they noticed a gap in the market for men with long hair, feeling the need for products that cater specifically to them. Inspired by historical figures like Genghis Khan and Benjamin Franklin, who had long hair, they sought to celebrate and advocate for men with flowing manes. Frustrated with the lack of suitable hair ties for men, they embarked on a mission to create a brand that not only provided functional products but also embraced the unique lifestyle of men with long hair.
The Product
The flagship product, Hair Ties for Guys, is presented as a stylish and masculine alternative to traditional hair ties. The ties feature creative designs such as pirates, the American flag, and lightning bolts, catering to the unique preferences of men with long hair.
The founders claim to have addressed a key problem in the market by developing a polyester-based elastic blend that allows for creative designs without sacrificing performance.
They emphasize the superiority of their product by individually branding each hair tie and covering the seam with a sleeve. In addition to hair ties, The Longhairs also offers hair serum, a specially formulated argan oil for shiny and conditioned hair.
How It Went
The company’s position before Shark Tank
In their pitch, The Longhairs revealed robust sales figures, having generated $25,000 in their first year and anticipating a substantial increase to $140,000 for the current year. The primary sales channels include their website and Amazon, providing the company with high margins.
Targeting a niche market has proven successful, as evidenced by the impressive customer base of around 5,000 individuals and a monthly influx of 45,000 unique visitors. The Longhairs have also diversified their presence through various mediums, including podcasts, articles, and videos.
The Negotiations:
The negotiation saw Kevin O’Leary making an initial offer of $95,000 for 10%, with a unique royalty proposal, suggesting a $2 fee per order until he recoups $200,000. Mark Cuban countered with a $100,000 offer for 25%, and Kevin revised his offer to match Mark’s terms. Lori Greiner and Daymond John bowed out of the deal, and Barbara Corcoran expressed concerns about the founders’ lifestyle choices potentially affecting the business negatively.
In the end, the founders accepted Mark Cuban’s offer of $100,000 for 20%, opting for the royalty-free structure. The negotiation highlighted the unique challenges and opportunities associated with catering to a niche market, with the Sharks recognizing the brand’s potential and distinct positioning in the grooming industry.
