Brush Hero, a water powered cleaning brush, was a unique company featured on
Shark Tank Brush Hero Update
- Entrepreneurs: Kevin Williams and Glenn Archer
- Business: Water Powered Brush / Cleaning
- Ask: $500,000 for 10% equity
- Result: No deal
- Sharks: None
After a short demonstration of how the product works, Kevin and Glenn told the sharks that the basic Brush Hero package is sold at a price point of $34.99. A single unit can be built and manufactured for under $7. The sharks were very impressed with the product margins after hearing about how cheap they managed to get their manufacturing costs for a single unit of Brush Hero.
Kevin O’Leary wanted to learn about the company’s sales. The two entrepreneurs told him that they expect to gross about $3 million in sales during the current calendar year and generate an overall net profit of approximately $300,000. The company has spent more than $400,000 in Facebook advertising to achieve these sales metrics, which was slightly concerning to the sharks.
Some of the sharks had a problem with the imputed valuation that Kevin and Glenn placed on their company. Kevin O’Leary believed the company was worth less than $2 million and discussed the possibility of having to take a third of their company to make a deal. Many of the sharks started to drop out, but Daymond John made an offer of $500,000 in exchange for 25% equity. Lori Greiner decided to offer $500,000 for 25% equity, but half of it would be treated as a line of credit.
Kevin and Glenn had a difference of opinion on whether or not to accept the deal and ultimately decided to pass on the opportunity to take the deal. Let’s jump ahead and get a Brush Hero update to see whether or not that was the right decision.
The company has managed to raise annual sales to about $5 million per year and has formed a partnership with Costco. The company’s future seems bright and it doesn’t appear that passing on the deal harmed the company’s long-term potential. The company still has an active website where products are linked and can be bought on Amazon.
You can find the other company updates from Season 9 Episode 18 here:
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