The Sleep Styler
DEAL
EPISODE SUMMARY
🕓 Air Date: March 3, 2017
Asking For:
$75 for 20%
Investor:
Lori Greiner
Deal:
$75,000 for 25%
PRODUCT SUMMARY
The Sleep Styler is a set of rollers made with super-absorbent yoga-towel fabric that dries and styles hair while the user sleeps, reducing styling time and minimizing heat damage.
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Background Story
Tara Brown, the founder of Sleep Styler, hails from San Diego, where she not only practices as an ophthalmologist but also manages the responsibilities of being a mother. Her journey into the world of innovative hair care solutions began out of personal necessity. Tara, frustrated with the time-consuming process and damaging effects of traditional hair styling methods, especially given her naturally frizzy hair, sought a more efficient solution.
The inspiration for the Sleep Styler struck Tara when she noticed the lasting shape of her daughter Clara’s hair, which had been braided while wet. Recognizing the potential of this quality—where the shape of wet hair determines its styling once dry—Tara envisioned a product that could passively dry hair into appealing shapes. This realization led her to conceptualize the Sleep Styler, a set of rollers made with super-absorbent yoga-towel fabric designed to wick moisture away from the hair while remaining dry to the touch.
Despite her background in ophthalmology, Tara embarked on a remarkable journey by enrolling in fashion school to acquire the necessary skills for bringing her innovative hair styling solution to life. The decision to dive into the world of fashion and product development showcased Tara’s determination and passion for her venture. The Sleep Styler, born from a combination of personal need and creative problem-solving, quickly gained traction and successfully launched through a Kickstarter campaign. Tara’s ability to balance her demanding career in healthcare, motherhood, and the pursuit of her entrepreneurial vision highlights the resilience and dedication that contributed to the success of Sleep Styler.
The Product
The Sleep Styler is a revolutionary hair styling solution that streamlines the morning routine, offering a comfortable and time-efficient way to achieve salon-quality results overnight. The product consists of a set of rollers made from super-absorbent yoga-towel fabric, designed to efficiently wick moisture out of the hair while remaining dry to the touch. The interior of the rollers is equipped with marshmallow-soft memory foam, ensuring a restful night’s sleep for the user.
The unique shape of the Sleep Styler maximizes airflow, allowing users to effortlessly curl or straighten their hair while they sleep. One of its standout features is its ability to minimize heat damage, as it eliminates the need for traditional hot styling tools. The result is softer and shinier hair with reduced frizz.
Purchasing the Sleep Styler is convenient, with a retail price of $39 for a package containing eight rollers. The product can be bought directly from Tara Brown’s website, where customers can explore additional details and place orders. The package includes everything needed for an easy and effective hair styling experience, making it an attractive option for individuals seeking a hassle-free way to achieve stylish hair without the daily time commitment. With a production cost of $9.94 per set delivered to San Diego, the Sleep Styler offers a compelling margin for both the company and its customers.
How It Went
The company’s position before Shark Tank
As of the recent data available, Sleep Styler has demonstrated robust performance since its launch. The company initially gained traction through a successful Kickstarter campaign, surpassing its $10,000 goal within the first 12 hours and closing the 30-day campaign with $47,000 in funding. Tara Brown, the founder, has invested a substantial $100,000 of her own capital into the venture, highlighting her commitment to the success of Sleep Styler. The product has been exclusively available on Tara’s website for the past three weeks, with sales totaling $6,000.
The strategic move to showcase the Sleep Styler at the CosmoProf beauty trade show resulted in significant interest from major buyers, including Amazon Launchpad, HSN, and QVC. This exposure positions the company for potential partnerships with prominent retailers and broadcasters. Tara mentioned being approached by Amazon Launchpad and HSN, indicating potential collaborations with major platforms. The company’s participation in the world’s biggest beauty trade show, CosmoProf, suggests a strong focus on expanding its market presence and reaching a diverse customer base.
In terms of financial health, the production cost of $9.94 per set indicates a favorable margin, and the retail price of $39 positions the Sleep Styler competitively within the market. The $75,000 investment secured from Lori Greiner during the Shark Tank episode is expected to provide the necessary capital for the company’s growth and expansion into new markets.
The Negotiations:
The negotiations for Sleep Styler unfolded with a high level of enthusiasm from the Sharks, each expressing genuine interest in Tara Brown’s innovative hair styling solution. Kevin O’Leary kicked off the discussions, keenly inquiring about the company’s sales performance. Lori Greiner, recognizing the product’s potential for QVC and infomercial success, swiftly made a compelling offer of $75,000 for a 30% equity stake.
The negotiations took an unexpected turn when Mark Cuban attempted to caution Tara against hastily accepting Lori’s offer, emphasizing the importance of considering other potential offers. However, Lori, exuding confidence and excitement, was determined to secure the deal promptly. Kevin O’Leary attempted to counteroffer, but Lori promptly shut down the attempt, asserting her eagerness to partner with Tara and bring Sleep Styler to new heights.
In a bold move, Lori not only secured the deal but also increased her stake to 25% in response to Tara’s counteroffer. The negotiation showcased Lori’s passion for the product, her belief in its potential, and her strategic vision for its market expansion. Despite the Sharks’ competitive nature, Tara’s swift acceptance of Lori’s offer reflected the alignment of vision and the confidence instilled by Lori’s strategic input. The negotiation process highlighted the strategic value that Lori Greiner brings to Sleep Styler, positioning the company for further success and growth in the dynamic beauty and haircare market.
