In a world overrun with multi-blade disposable razors, Patrick and Jennifer Coddou have created a patented single-blade razor that brings the luxury of a barber shave home.
Because multi-blade razors can cause skin irritation as well as fill landfills with discarded plastic, the Coddous decided to develop a sleek, stainless steel, single edge razor.
The Coddous are hopeful that a Shark will invest $300,000 for a 10% equity share in their company, Supply.
Key Takeaways: Supply on Shark Tank
- Supply offers a luxury, single-blade razor designed to reduce skin irritation and environmental impact compared to multi-blade disposables.
- Seeking $300,000 for 10% equity, they highlighted impressive sales growth, aiming to expand their direct-to-consumer market.
- Robert Herjavec invested $300,000 for 15% equity, valuing the company’s potential despite competitive challenges in the razor market.
Latest Update: Supply continues to grow, focusing on sustainability and premium shaving experiences, with new products and broader market reach, including retail partnerships.
Is this the only shaving solution you’ll ever need? #SharkTank
— Shark Tank (@ABCSharkTank) November 4, 2019
The Sharks Doubt the Product at First, but They Change Their Mind
The Sharks initial reaction is that there have been other single-blade razors introduced to the market as a replacement for multi-blade razors. They aren’t sure there is enough differentiation or market share to make Supply a lucrative investment.
That is until they heard about Supply’s sales.
This year, Supply is expected to reach $2.5 million in sales, a significant increase from $1 million in sales last year. Their product now has a 50% profit margin, but they are working on enhancements to their supply chain that will lower costs and boost margins in the coming months.
Patrick and Jennifer have invested $125,000 of their savings and both quit their jobs to devote themselves to the success of Supply.
They mainly sell directly to customers online and are seeking a partner to help them expand their business. Robert Herjavec and Kevin O’Leary are both interested in Supply and want to make offers. Robert proposes $300,000 for 15% equity, while Kevin offers $300,000 for 5% equity and a $1.50 royalty forever.
Jennifer and Patrick decide to accept Robert’s offer because they felt that Kevin’s offer was taking too much money out of the business during a critical time for their growth.
Love the clean, minimal look of @getsupply razors #sharktank
— Robert Herjavec (@robertherjavec) November 4, 2019
I always love seeing a power couple in the tank – boots on the ground, diving in head first into their business together. I’m curious, have you ever considered building a business with your significant other?
— Barbara Corcoran (@BarbaraCorcoran) November 4, 2019
Congratulations on the deal @getsupply and @robertherjavec! #SharkTank pic.twitter.com/I3fcgVyp0q
— Daniel Lubetzky (@DanielLubetzky) November 4, 2019
Wrapping Up
Do you think there is enough market share that Supply can continue to be successful over time? Do you feel they will be able to change consumer purchasing behaviors?
Start the conversation in the comments below!