Hot Tot Hair Products Update | Season 4
Entrepreneur and mom Megan Gage, created a line of professional-grade hair products for children. Will she earn a deal on
Shark Tank Hot Tot Update
- Entrepreneur: Megan Gage
- Business: Professional-grade hair products for children
- Ask: $50,000 for 15% equity
- Result: $75,000 for 40% equity
- Shark: Mark Cuban
Megan came on the tank with her 3-year-old son Christian, to show her children’s line of hair products called Hot Tot. As she styled his hair, she shared that her products contained no harsh chemicals, making her product a safe alternative to the big names.
Hot Tot Children’s Conditioning Detangler is ideal for all types of baby, toddler & children’s hair. Our natural formula fights frizz and tangles, making brushing after bath time (or any time) a breeze.
Mark Cuban and Robert Herjavec wanted to know more about sales. Megan shared that over 15 months, she had sold $20,000. $7,000 of which was made in the past 12 days, thanks to a special promo run by one of her customers.
Lori Greiner liked Megan’s mission of creating a safer, high-end alternative to the comparatively cutesy children’s products on the market already, but she didn’t like the packaging. She felt that it didn’t illustrate that the product was meant for children. However, Megan felt the packaging promoted her brand faithfully and was not interested in changing it.
Mark told Megan that he too had a 3-year-old son, and that his son had eczema among other allergies. He asked if Megan had performed testing to support her claims, and Megan said she had done some but that additional testing was very expensive.
Kevin O’Leary, unsure about the market potential, asked what led Megan to her valuation, considering she had only $20,000 in sales. Megan confidently replied that there were 280,000 salons in America, and that the global baby care market was worth $48 billion and expected to grow by 5% in the next 5 years.
Megan tried to sell him further on Hot Tot, talking about her tradeshow successes, but Kevin unimpressed, responded by going out. Lori echoed her initial concerns regarding the packaging and, although her heart was with Megan, her gut said no. For that reason, Lori was out.
Mark, on the other hand, told Megan he felt that $50,000 was not enough cash to get things moving. Instead, he offered $75,000, asking for 40% equity in exchange. Out of respect for the other sharks, Megan asked to hear if there were any other offers before accepting. Mark said he took “no disrespect” from the request and waited patiently for her to hear out Robert and Daymond John.
Robert wasn’t sure about Hot Tot, but he felt that Mark would make the better partner and made a better offer than he would, so he was out. Daymond followed out for the same reason. With that, Megan accepted Mark’s deal, but what happened next? Keep reading our Hot Tot update to find out!
We have great news to share in our Hot Tot update! The company went on to obtain further testing, and became officially branded as a “hypoallergenic” product. Sales steadily increased, and as of 2023, the company has an estimated worth of $5 million today. Products are available on the Hot Tot website, and on Amazon.
Would you like to learn about the other companies featured on Season 4 Episode 12? Follow the links below!
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Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!