The Natural Grip
DEAL
EPISODE SUMMARY
🕓 Air Date: November 7, 2014
Asking For:
$100,000 for 20%
Investor:
Robert Herjavec
Deal:
$125,000 for 25%
PRODUCT SUMMARY
The Natural Grip is a custom hand grip designed to protect hands during high-intensity workouts, particularly in CrossFit, by preventing tearing and providing a secure grip on bars.
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Background Story
Natural Grip, based in Louisville, Kentucky, was founded by Ashley Drake, an active-duty officer in the United States Army. Ashley’s military background as a Captain in the Army Corps of Engineers provided her with discipline, dedication, and a strong work ethic. Her journey to entrepreneurship began during her deployment to Iraq in 2007, where she spent 15 months overseas, engaged in challenging missions at the forefront. Upon returning, Ashley continued her commitment to physical fitness, essential not only for her military career but also for maintaining a healthy lifestyle for her family.
As she pursued high-intensity workouts, Ashley encountered a common problem among fitness enthusiasts – hand injuries. The existing hand-protection devices on the market, made of leather, cloth, or nylon, proved inadequate. They tended to slip off, were bulky, and hindered performance in the gym. Motivated by her own struggles, Ashley, along with her husband, embarked on a mission to create a solution. In 2012, after starting CrossFit and experiencing firsthand the frustration of ripped hands, Ashley’s husband took the initiative to devise a hand grip that would address this issue.
This innovation marked the birth of the Natural Grip, a custom hand grip uniquely tailored based on the user’s ring finger size. The company’s rapid growth exceeded Ashley’s expectations, leading to her husband leaving his full-time job to focus on Natural Grip. With a firm belief in their product and a desire to make a difference in the fitness community, Ashley entered the Shark Tank seeking a strategic partnership to propel Natural Grip to new heights. The couple’s dedication, military discipline, and innovative thinking form the foundation of Natural Grip’s success story.
The Product
The Natural Grip is a revolutionary hand protection device designed for individuals engaging in high-intensity workouts, particularly in disciplines like CrossFit. Unlike traditional hand grips made of leather, cloth, or nylon, the Natural Grip stands out for its innovative approach. Tailored to the user’s ring finger size, it provides a custom fit that ensures secure and comfortable protection during exercises.
Made from 100% cotton adhesive material, the grip is not only effective but also reusable, distinguishing it from other hand protection devices in the market. The application is straightforward, as users simply place the grip over their ring finger and middle finger. It can be attached using the Natural Grip’s custom Goat Tape, available for purchase at $7 per roll, or with the user’s wrist wraps.
The product’s effectiveness is demonstrated through sponsored athletes like Danielle Sidell, showcasing its ability to prevent hand injuries during complex movements like clean and jerks and bar muscle-ups. The Natural Grip’s flexibility and custom sizing allow users to maintain proper control of the bar, ensuring safety and performance in the gym.
Natural Grip adopts a distributor model, selling units to distributors for $10 each, who then resell them for $17. This pricing strategy positions the product competitively in the market, appealing to fitness enthusiasts seeking reliable and reusable hand protection for their intense workouts.
How It Went
The company’s position before Shark Tank
Natural Grip has demonstrated robust performance and a promising market position. The company’s health is characterized by significant growth within a short timeframe, reflecting a strong demand for their innovative hand protection product. Natural Grip faces challenges keeping up with the increasing demand, as indicated by the founder, Ashley Drake. The company’s current staff of six can manufacture 3,000 units per month. Manufacturing constraints have prompted Ashley to engage subcontractors, including stay-at-home moms, high-school kids, and retirees, to cope with the demand. However, this strategy also reveals a potential bottleneck in production.
Natural Grip adopts a distributor model, selling units to distributors for $10 each. The distributors then resell the product for $17, showcasing a healthy profit margin. The target market initially focuses on CrossFit enthusiasts, but Ashley Drake suggests potential expansion into other fitness sectors, such as powerlifting and Olympic lifting. The product has garnered attention not only from individual users but also from wholesalers who recognize its market potential. Ashley mentions seeking $100,000 for 20% equity in the company, suggesting a willingness to bring in external investment to fuel growth. The funding utilization plan, including how the investment will be allocated and what specific areas it will address, is not explicitly discussed.
In terms of the company’s structure, Ashley Drake and her husband play integral roles, with her husband leaving his full-time job to focus on Natural Grip. The mention of subcontractors for manufacturing suggests a decentralized approach, possibly involving a network of individuals contributing to the production process. The focus is primarily on the growth potential and the need for strategic partnerships to address manufacturing challenges and capitalize on the expanding fitness industry.
The Negotiations:
In the “Shark Tank” negotiation process, Ashley Drake, the founder of Natural Grip, entered seeking a $100,000 investment for 20% equity in her company. The negotiation unfolded with various Sharks expressing interest in the innovative hand protection product.Robert Herjavec was the first to make an offer, proposing $125,000 for a 25% equity stake. Mark Cuban and Daymond John then collaborated on a joint offer, suggesting $100,000 for 40% equity. As the negotiations progressed, Robert sweetened his deal, offering $125,000 for 25%, emphasizing his ability to assist with manufacturing challenges.
Lori Greiner, known for her expertise in product development and sales, initially expressed admiration for Ashley’s dedication but opted out, citing a lack of personal passion for the product. In a surprising turn, Ashley ultimately accepted Robert Herjavec’s offer of $125,000 for 25% equity, favoring his commitment to providing not just capital but also valuable assistance in overcoming manufacturing constraints. The decision was influenced by Robert’s experience and connections, addressing the critical issue of scaling up production to meet the growing demand for Natural Grip.
While Mark Cuban and Daymond John lost out on the deal, the negotiation showcased the competitive interest in the fitness product industry. The final agreement between Ashley and Robert reflected a strategic partnership that went beyond just financial investment, demonstrating the importance of aligning with a Shark who could contribute expertise and connections to drive the company’s success.
