Guest Shark Charles Barkley joined Sharks Mark Cuban, Lori Greiner, Kevin O’Leary, and Robert Herjavec in the Shark Tank tonight to hear business proposals from four businesses looking to strike a deal with the sharks. Charles shared his story about growing up in poverty and how he feels as though he has a moral obligation to bring people along with him through his journey of success. To prevent himself from becoming a statistic since 80% of former professional athletes go broke, he has vowed to help minorities and those that do not have economic opportunity to be successful in their business ventures.
This backstory on Charles Barkley is amazing! #SharkTank
— Ryan Bartholomee (@RyanBartholomee) October 29, 2018
Manscaped Secures A Deal With Mark Cuban and Lori Greiner
The first business into the tank is a father and son duo, Josh and Steve King, from San Diego. They present their line of products for below-the-waist grooming for men. “Manscaping” is a relatively new phenomenon with 73% of men practicing self-grooming today compared to 6% in 2008. Manscaped is looking for an investment of $500,000 for 7% ownership of their company.
jplenio / Pixabay
Manscaped offers “a package for your package” that includes everything from a razor, cleverly called “The Lawnmower”, to delicate hygiene products. The company netted $1.5 million in 2017 and has sold $2.8 million year-to-date. Although their product profit margins are good, their new customer acquisition costs are too high. They also have spent a lot of time figuring out how to market their product line and decided upon humor as their main marketing draw and have exceeded 48 million views on their marketing videos.
Robert is the first Shark to make an offer for $500,000 for 35% ownership in the company. While joking with Lori, Mark Cuban says that he would put up the money just to have to see Lori Greiner pitch the product on QVC. She has him put his money where his mouth is and the pair makes an offer for $500,000 for 25%. Because this is a better offer than his, Robert backs out of his offer which leaves Manscaped to decide if they will take Mark and Lori’s offer. After unsuccessfully countering, they do accept the offer and are very pleased to have two new strategic partners.
“Trim the hedges, the tree stands taller.” – @ManscapedGents #SharkTank pic.twitter.com/Oho5YzS4iB
— Shark Tank (@ABCSharkTank) October 29, 2018
BoomBoom Leaves The Shark Tank Empty Handed
The next business into The Shark Tank was BoomBoom, a company that makes and distributes nasal inhalers infused with essential oils. John and Chelsea Pinto are asking for $300,000 for a 10% share of their company. This product is meant to rejuvenate your nose and sinuses the way that eye drops rejuvenate your eyes. When inhaled slowly and deeply, the inhaler cools and tingles the nasal passage.
In 2017, the product sold $754,000 and is on track to sell $1.1 million in 2018. The Sharks are very concerned about the variable profit margin between direct and retail distribution. Their current model of taking a big hit on the retail profit margin is not a sustainable model for the company. There are additional concerns that there is another co-founder who owns as much of the business as John does (36%) and there are other investors in the business as well.
It looks as though none of the Sharks are going to bite when Robert offers $300,000 for a 36% stake which is the same as what John currently has. John shares that due to the other partner and investors, he is not able to go that high. His final counter back to Robert is $300,000 for a 20% share. Robert cannot go this low with his deal and is out. BoomBoom leaves the tank without a deal from The Sharks.
“Wow!”
@robertherjavec #SharkTank pic.twitter.com/FOimyQXifd— Shark Tank (@ABCSharkTank) October 29, 2018
Charles Barkley Makes His First Shark Tank Deal With Cave Shake
Longtime friends Holly and Billie come to the Shark Tank seeking $250,000 for 10% of their company, Cave Shake. Cave Shake is a sweet treat inspired by the keto diet trend. This shake can be consumed as a dessert, snack or a meal replacement. It is high in calories but has no sugar, carbs or gluten. It comes ready to drink and retails for $7.99 a shake. The taste of the shakes are met with mixed reviews from The Sharks.
Currently, the product is being sold in health stores in southern California. In 2017, the company made $270,000 and so far year-to-date has sold $182,000. Cave Shake has recently paired with Coca-Cola as an incubator which concerns The Sharks as they get 15% o the company without putting in any money and they will receive commissions. This also confuses The Sharks as they don’t understand why Cave Shake needs them if they have Coca-Cola at their disposal. Their concern deepens as they learn that Billie and Holly aren’t clear about what the deal is that they made when they can not provide them with acceptable financial answers.
It appears as though The Sharks aren’t going to bite when Charles Barkley surprisingly offers $250,000 for 20% of the company. Although he is unsure of the nutritional value, he has struggled with his weight since he retired and wants to try something new. Holly and Billie unsuccessfully try to counter, and ultimately end up accepting his offer. Billie is excited to see if he can help them reach the athletic market.
https://twitter.com/ABCSharkTank/status/1056723850912645120
Butter Cloth’s Shark Tank Deal is a Dream Come True
The last business into The Tank tonight is Butter Cloth, an apparel line that offers high-end dress clothes for men that are comfortable, soft and made of 100% cotton. They are seeking $250,000 for a 10% share of the company. Danh Tran shares his touching story of dreaming of becoming a clothing designer and moving to the US from Vietnam. He worked for Mattel to save up the money go to design school and then cashed in his 401K, sold his house and used all of his savings to try to make this company work.
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The investment from The Sharks would be used for inventory and also for marketing. Currently, they are marketing on Facebook and Instagram but they need a stronger digital marketing strategy. Since last November, they have seen $500,000 in sales with minimal marketing focus.
Robert is interested in the product and offers $250,000 for 25%. Robert feels as though his existing group in this industry could really help Butter Cloth with marketing strategy. Although Danh tried to counter, he very happily accepts Robert’s offer.
And another deal made in the #SharkTank !! Congrats @butterclothshirt pic.twitter.com/2ja1vWOhu6
— Shark Tank (@ABCSharkTank) October 29, 2018
What was your favorite business on Shark Tank tonight? How did you feel about the business investments? Leave your comments below!
Shark Tank airs Sunday at 9:00 EST on ABC.