Manscaped is a company started by an entrepreneur and his father from San Diego, CA, that is attempting to change the way men think about grooming their personal body hair.
According to the entrepreneurs, in 2008, only 6% of men performed any type of "manscaping" but that in 2018, that has risen to an astonishing 73% and represents a market size of $3,000,000,000. To accomodate this, Manscaped has assembled a kit for "below the waist body hair" that consists of a trimmer and serveral conditioners and shampoos in an attractive leather (like) case. Beyond the kits, customers can also pick and chose which products they would like to buy from Manscaped website.
The father became involved in the company by introducing his son to the chemists who formulated the original hair and shampoo products.
Each kit costs $12 per unit to produce and retails for $51. They claim a margin of $7 per kit in profit but also claim that it costs $16 to acquire each new customer. In the previous year, the company made $1,500,000 in gross sales but still lost $133,000. The entrepreneurs claim that they have re-invested every dollar into the company to purchase more stock as well as advertisements and marketing.
Thus far, they have marketed both by making YouTube videos like the one below and claim that they have been seen over 48 million times:
Manscaped, in the year in which this deal aired, claims to have made $2,100,000 in gross sales and would have made somewhere between $60 or $80,000 per month in profit had that money not been reinvested back into media (advertisements) and inventory. The entrepreneurs claim that on every $1 invested into advertisements, they are attempting to realize between $2 and $2.50 in revenue.
The entrepreneurs have also begun to invest in advertisements aimed at women as they have discovered that women enjoying purchasing these products for men during the holiday season.
This deal aired on Episode 10.04.
Making A Deal
In a very interesting offer, Mark Cuban said that he'd put up the money "just to watch" Lori Greiner sell the product on QVC and Lori accepted that offer. To take into account the value of two sharks on the deal, Mark upped his equity ask to 25% from the original 7% on offer, presumably splitting the equity between the two of them as he put up the money.
The bite that this took off the value the entrepreneurs had assigned to the company was just over $5,100,000, a massive amount. However, the lure of having two sharks on their side convinced them to accept the deal.
- By body shaming men...? Considering the pushback that women's grooming products have been experiencing lately, it's interesting that people keep attempting to bring this same mindset to men's personal grooming experience.
- This is reflected in Lori's investment chart, where she is credited for making a deal but appears to have put up no money because she has not for this deal.