Things Take A Turn With Young King Hair Care | Shark Tank US | Shark Tank Global

[Music] [Applause] first in the tank is a company for an underserved [Music] customer hey sharks my name is k and this is my husband Stefon and we're from Atlanta Georgia we're seeking 225,000 for 2.5% equity in our company young king hair WoW shark did you know that uh uh excuse me sharks it sounds like we may be getting a video call in hey sharks I'm the real shark here we let my parents handle it I got to take that I got to take a car bye well sharks that's our son and chief inspiration officer Cade and as you can see he's the one that really runs the show we actually started this company because of him K was born with a head full of hair and we quickly realized that we need to help styling his hair because there was no plant-based natural or clean hair care product that were specifically crafted with young men with textured hair so we created y King hair the first the first the fastest the fastest M growing Multicultural brand for young men we currently offer five natural hair care products that promote textured hair health and growth and provide a simple regimen to make it easy for both parents and their sons to care for their hair so sharks if you believe Multicultural boys deserve highquality products really tailored for their needs please join us on the Journey of redefining ma Grooming by focusing on the Next Generation we are young king Hair Care sharks you'll see that you have samples in front of you for you guys to be able to try out can you tell us a little bit about yourselves absolutely absolutely I was raised by a single mom uh Who provided for me and my sister and instilled the confidence in us to go after our dreams my sister went on to be a physici and I actually worked my way up the corporate ladder and was a VP at one of the largest healthcare companies in the globe when I had my son as you saw he had so much hair um and I was looking for products that I felt really reflected him as a young man of color um and so it just bothered me that I didn't find anything like that that existed um and my husband actually did a little mini shark tank with me and I pitched to him um and he was like yeah you're on to something I was like I could have told you that duh and Stefan are you in the business I am in the business so my my entire career has been within marketing have worked on some of the most iconic brands that you guys know uh so working at General Mills working on Nature Valley and Fiber One in Progresso working at Coca-Cola where I ran Sprite for North America wow you have any competition so we have uh competition in terms of there being other textured Kids Hair Care Brands there are not a lot of products out there that focus on plant-based natural clean ingredients but there are focused on boys correct at all Damon when you were a little Damon just a little baby Dam when we both had hair you both what did you use for your hair you know back then there was either Supernatural or you generally just didn't care we didn't have a lot of information back then right when we walked down an aisle and I haven't been down that hair care aisle in a long time right and I walked back down it hadn't changed in 15 and 20 years there was nothing else there's nothing but pinks and oranges there wasn't anything that spoke to our son and spoke to boys I'm I'm dying to ask 225,000 for 22% you got to have big sales you guys like sales so let's talk about $4,100 that's it in our first year of sales so and that was 2019 okay so then obviously we know a little thing called Co kind of impacted the business so we finished a year in uh 2020 at 362,000 good thank you that is growth so far in 2021 we've been okay um we have okay um is $1.54 million a day okay okay and track has delivered $3 million so far this year million you're going to do 3 million this year that is correct what are you making any money are we making any money now we are not profitable yet but we've got a path to that what's your average selling price across the line and what's your average cost of good across the line our cost come in at about 235 to 350 depending on the skew for wholesale we actually sell that between 6 and 650 50 to them and then on DTC we sell um up to 14 so where did the money go obviously as a new brand we had to drive brand awareness right so about 70% of our expenses go towards marketing wow that's the problem so it's really high but we had to introduce a new brand to an audience that didn't know about us how much money or how much did you raise or borrowed and how much of the company do you own so we raised 1.6 million helloow we raised 1.6 million on why you B let's go on a convertible note uh that closed in March and that was our seed round listen I think you are right on the right Trend I definitely think you should put these gorgeous young men your son's faces on here because my biggest marketing thing is you should look at a quick glance and know what something is like that I feel this is a super competitive space so I have concern for you in really growing it to be something enormous it's just not the right investment for me at this time I'm out thank you thank you I see the need for the product you got investors you have a responsibility I understand asking for 2.5 but I can't get behind that for 2.5 uh what can you get behind Dam huh what can you get behind it's not about what I would want in one of these situations because a lot of things that we take in in consideration you offer me 2.5 I can't it's an insult to go to 15 and 20 and all that kind of stuff it's just not not right doesn't feel good I I would say I'm out out of respect all right you know it's obvious you came from a big company because you market like a big company and that's tough when you step into an entrepreneurial environment branding as a small entrepreneurial company is a completely different effort and I'm not sure that you're going to be able to accomplish that and I'm not sure that you know I'm I'm a lean and mean work your way through type guy so I don't know if we'd be a fit so for those Reasons I'm out okay I got to tell you amazing product I believe in you I believe in the future I just don't understand the narrow Niche aspect of it like what I was hoping was you're going to build a representative brand to take on all those products so we are so we are we have to start somewhere yes exactly our goal is to create holistic solutions from very early on maybe all the way up my challenge you have a lot we're growing we've got skincare that's actually launching uh I wish you had all that but at you know to Dam SP what at 2 and half% one am I going to ask for 3.1 and we're negotiate at 2.7 2.9 I I I I can't get there at the 2 and 1 12% I wish you all the best I mean honestly two of the most impressive people I've ever seen on on that carpet congratulations thank you thank you so it I'll tell you guys and I know one of the things that's important and one of the things that we teach our son K right is the word K right can is not in your vocabulary and I understand and I understand where you guys come from um we came here not to just be here right but to find and leverage your expertise to really help us grow is there any flexibility we're you know we're open to if it's a line of credit um is there any debt vehicles that people might want to be interested in because we love to partner because again we're still growing for the future and we have did I hear the word royalty actually no I don't think he said it I heard I thought I heard royalty yeah I don't think I don't think he said royalty at all actually I don't know where that came from it says young king a king is royalty that's what it is young king royalty [Laughter] yes you know what I like about this it has sales yeah a lot all of and when when there's sales sometimes my hair starts to grow back because because it can support a royalty my favorite structure as you know you have the margins I would give you the 225,000 for a dollar skew until I get back to 225 and then it drops to 50 cents in perpetuity Kevin what you're saying is this is forever so when K has kids corre his kids will be pay I don't have any Equity so why would I do it any other way Kate is sound like he's going to be working for Mr Wonderful I'm not sure Kate's not enough for that only I'm the only shark that believes in you I I just don't know that that makes sense for us I love you guys I love you guys all right I know you're not going to do that deal I'll give you an offer okay I think royalties are tough because someone's going to buy you yeah but I'll do it for 50 until I get a 2X return on the money I give you so I'm going to give you 225,000 when you pay me back 450 the royalty stops I want a 5% Equity that converts if the company gets sold so I help you now and if you grow I convert to 5 you know what that's going to be much more expensive than my royalty if you sell this business one day it's much more expensive if you sell this business one day for 500 million you PID way more to him you know what if you sell the business for million dollar you don't care that's I like that deal he is driving you into the ground that's a huge mistake this is the balance between and royalties it's a great lesson go ahead you know Stefan I can't read lips so you don't have to do we we're going back I appreciate I think first and foremost like both Mr Wonderful and Robert like I appreciate y'all our issue is cash flow and because of we're spending so much in other places so royalty is a little difficult for us for both of you guys so respectfully I don't think that we're going to be able to take a royalty good for you way to stick to your guys good for you we thank you congratulations guys Care thank you we built this from the beginning from just us me we built it for our son Kate and I think that's the thing that we think about we're doing everything for him um so you know we'll we'll be back hopefully we'll be back and then you know we'll uh you'll see and hear young king for a while hear young king what you did there was sneak in a 5% of the exit price which may ultimately cost them way more than 50 c a b sucking so much cash out of I can't believe the savagery the greed you exposed them to I can't believe it I'm shocked

Channel: Shark Tank Global

Views: 102,958

Keywords: Shark Tank, Shark Tank US, Shark Tank Australia, Kevin O’Leary, Barbara Corcoran, Daymond John, Robert Herjavec, Mark Cuban, Lori Greiner, Dragons’ Den, Money Tigers, Entrepreneurship, investment, reality tv

Id: OcFVPAyQaB4

Length: 11min 40sec (700 seconds)

Published: Fri Jun 07 2024