Thin Gloss
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 15, 2011
Asking For:
$80,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
ThinGloss is a lip gloss infused with aroma therapy ingredients like Hoodia from South Africa, aimed at curbing appetite and enhancing mood.
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Background Story
April Morris, hailing from Fishers, Indiana, embarked on a remarkable journey of entrepreneurship fueled by personal determination and a passion for empowering women. As a single mother faced with the challenges of raising two children on her own, April refused to succumb to a life of mediocrity. Her resilience and tenacity led her to explore various avenues for financial stability, eventually finding success in the real estate industry where she achieved remarkable sales figures, grossing over $9 million in a single year.
However, April’s entrepreneurial spirit and desire to make a meaningful impact led her to pursue a different path. Drawing from her own struggles with body image and the pitfalls of conventional weight loss methods, April conceived the idea for ThinGloss during a moment of inspiration at a Christmas party. After experiencing the adverse effects of diet pills firsthand, she envisioned a product that could provide a natural and holistic solution to appetite suppression and mood enhancement.
Through extensive research, April discovered Hoodia, an herb from South Africa known for its appetite-suppressing properties, and other aromas that could positively influence mood and energy levels. Combining these ingredients into a convenient lip gloss formula, April founded Express Effects Cosmetics and launched ThinGloss, aiming to revolutionize the beauty industry by offering a product that not only enhances appearance but also promotes overall well-being. April’s journey from single motherhood to successful entrepreneur exemplifies the transformative power of determination and innovation.
The Product
hinGloss is a revolutionary lip gloss infused with natural aroma therapy ingredients, including Hoodia from South Africa, designed to curb appetite and enhance mood. The three-step application process begins with inhaling the aroma through the nose 30 minutes before eating, followed by liberal application to the lips, and culminating in the enjoyment of its benefits.
This innovative lip gloss offers a holistic approach to beauty and wellness, providing users with an effortless way to look and feel their best. By harnessing the power of aroma therapy, ThinGloss aims to promote healthy eating habits and boost energy levels, making it an ideal companion for individuals seeking to maintain a balanced lifestyle.
ThinGloss can be purchased online through the company’s website and select retailers, offering convenience and accessibility to customers worldwide. Priced at $28 per unit, ThinGloss provides an affordable and effective solution for those looking to enhance their beauty routine while prioritizing their well-being.
With its sleek packaging and easy-to-use applicator, ThinGloss seamlessly integrates into daily skincare and makeup routines, making it a must-have accessory for anyone seeking a natural and holistic approach to beauty enhancement.
How It Went
The company’s position before Shark Tank
Express Effects Cosmetics, the parent company of ThinGloss, has demonstrated promising growth since its inception, with sales reaching $26,000 by the end of the previous year. However, the company faces challenges in meeting its ambitious sales goal of $1 million by July 1, 2010, as it has only generated $18,000 in sales so far in the current year. Despite securing distribution agreements with cosmetic retailers in India and the United States, uncertainties surrounding regulatory compliance and the legality of weight loss claims without clinical studies raise doubts about the company’s future prospects.
Express Effects Cosmetics operates with a lean structure, primarily relying on April Morris’s initial investment and revenue generated from product sales to fund its operations. The company’s distribution partners include cosmetic retailers in India and the United States, although no upfront payments have been secured from these distributors. While ThinGloss boasts high margins, with each unit priced at $28 and costing between $4 and $5 to produce, profitability has been limited by the company’s modest sales figures.
To accelerate growth and increase market penetration, Express Effects Cosmetics is exploring strategic partnerships and funding opportunities. However, without a proven track record of consistent sales growth and regulatory compliance, securing external investment may prove challenging. As the company navigates these challenges, April Morris remains committed to realizing her vision of empowering women through innovative beauty solutions, emphasizing the importance of perseverance and determination in achieving success.
The Negotiations:
During the negotiations, April Morris sought an $80,000 investment in exchange for a 20% equity stake in ThinGloss. The Sharks expressed concerns about the legality of weight loss claims without clinical studies and potential regulatory issues with the FDA. Despite April’s confidence in the product and distribution agreements in place, the Sharks ultimately passed on investing in ThinGloss due to regulatory uncertainties and the potential risks associated with making weight loss claims without adequate scientific evidence.
While some Sharks commended April’s entrepreneurial spirit and determination, they were hesitant to endorse a product with implied weight loss benefits without conclusive evidence. Kevin Harrington highlighted the potential legal ramifications of marketing ThinGloss as a weight loss aid and expressed reservations about getting involved in a product category with regulatory uncertainties.
April defended ThinGloss’s positioning as a cosmetic product intended to enhance appearance and mood, rather than a weight loss aid, but the Sharks remained unconvinced. Despite April’s willingness to work with the FDA and explore other distribution channels, the Sharks ultimately concluded that the regulatory risks outweighed the potential rewards, leading to a unanimous decision to decline investment in ThinGloss. However, April remained undeterred, expressing her commitment to empowering women through innovative beauty solutions and her determination to achieve her sales goals.
