Cashmere Hair Before Shark Tank
I don’t know a whole lot about hair extensions, but the little bit I do know I can sum up fairly quick – hair extensions are kind of nasty beauty supplements that women might use to fill out their hair with more volume. However, sometimes hair extensions can get really gross really quickly, and don’t always have the guarantee of being a high quality purchase. Enter Cashmere Hair, a fresh, new take on hair extensions that seeks investment from the Sharks on Shark Tank to bring their product to women in every salon across the world. Read on more to find out about Cashmere Hair.
Cashmere Hair on Shark Tank
Rachel and Melissa are the Cashmere Hair girls of Beverly Hills. They have just entered the Shark Tank, and are asking for $45,000 for a 15% stake in their company.
Every woman has had to fake it at least once or twice in her life, especially when it comes to beauty. Not everyone is born with amazing hair, but with hair extensions, women can create the appearance of having long, healthy hair that they’ve always dreamed of. As a professional hair stylist and expert in Beverly Hills, Rachel knows that clip-in hair extensions are a great non-permanent options.
To demonstrate just exactly how great Cashmere Hair works, Rachel removes all the clips that are attached into her hair – the difference is shocking. Her hair isn’t unhealthy and still has loads of volume on its own, but with the Cashmere Hair clips put in, her hair does look much more full and luscious. To demonstrate how easy it is, Rachel then just picks her hair up and places the clip in her hair and drops her hair back down, concealing it nicely and giving her hair a much more complete, full look.
Kevin asks what the main ingredient is, and Rachel replies that it is all Indian hair. Cashmere Hair is working with an Indian group who are supplying all the hair, since there are hair auctioneers throughout. There is very low quality hair all the way up to very high quality hair, and it is through these auctions that the two from Cashmere Hair supply their business. The cost per extension is, on average, $105, and retail for $399. For the full retail, you receive a full head of Cashmere Hair. In order to maintain a level of quality, when Rachel or Melissa receive a new shipment of hair, they also receive samples which are placed under rigorous testing in order to ensure that each batch is 100% authentic human hair. Plus, the manufacturers they deal with only auction off human hair, so through this two-factor authentic test, they can be sure that they are never receiving, say, yak hair.
Since being in business for only 6 months, the two girls have sold a total of $38,000. Robert points out that other people can buy from the same supplier, but Rachel has 10 years of experience as a hair stylist and consultant so she knows what people are looking for when it comes to hairstyles and what they want. Melissa has been a model for the last 10 years and has been wearing hair extensions for a much longer time; she details how she used to have to sew together hair extensions from other companies in order to get full, thick, long hair that worked well enough.
Kevin asks to bring up an elephant in the room, at least in his mind – what happens when a guy meets a girl and they go on dates for a long time and eventually get intimate, and the hair clips have to come out eventually? The girls point out that this usually happens with or without their product since even make-up can be considered false advertising. Returning to more professional business matters, Robert brings up the sales of $38,000 and asks how the two girls intend to advertise and get all the women to understand their product. Melissa says the first step are instructional videos, which should help sell the product by itself, but Robert asks how to advertise the video. Social media has helped to guide them this far, and from this point, they have intended to start investing into placing their product into salons and eventually have Cashmere Hair parties, where they can bring the hair to groups of women for multiple sales at once. At the end of the month, they will know exactly how many salons they are getting into; when the sharks ask for a specific number, the girls cannot give specifics.
Mark points out that the girls came in looking for $45,000, but the reality is that if they hustled and grinded enough to get the margins down, they could easily generate that $45,000 off $90,000 in sales with a 50% profit margin. Mark says that he understands that this is a great business, but there is just not a lot of investor potential, and is the first Shark to exit the deal.
Lori asks where Cashmere Hair prices compare to other hair extensions that already exist, and Melissa says that Cashmere Hair products are more expensive than most other hair extensions already out there, but that there is a good reason for the increased price; most hair extensions sell for half of the price because the quality is just not good enough. Kevin explains that he is trying to find a way to turn Cashmere Hair into a multi-million dollar business but cannot find a strategy that allows him to scale up the production and sales of Cashmere Hair reliably, and also exits the deal.
Daymond points out that Melissa seems a little frustrated, and explains that the biggest downside of any business is marketing; marketing can be the black hole of any business. Daymond does not see a way for him to market hair extensions to women reliably, as the market already is pretty small and he agrees with Kevin’s sentiments that scaling up the production to still maintain a level of quality while making more consistent profit is just too hard. Daymond is also out of the deal, explaining that the girls probably do not need an investor at this time.
Lori says that she thinks the most unique thing that the girls have said were the home parties aspect – if the girls focused on just the hair parties and salons, that would probably be the smartest idea. Robert agrees with Lori, pointing out that she wishes the two girls had done it yet, but they have just brought the idea and have no actual traction on doing it yet. Robert is out as well, leaving Lori as the final Shark left.
Lori starts by saying she believes there are typically two products; those that are truly revolutionary, and those that are like other products out there, and when it’s like other things that are already out there, you really have to try much harder to differentiate your product and create a much more different, marketable product. There is just too much competition out there for a product that seems unreliable, and for that reason, Lori follows the group’s pattern and exits the deal as well.
Rachel and Melissa from Cashmere Hair ultimately do not find their investment in the Shark Tank.
Cashmere Hair Now in 2018 – After Shark Tank Updates
Cashmere Hair is still around today, albeit in the form of an online storefront. Their social media presence is a lot stronger, with accounts active on Instagram, Facebook, Twitter and many more. I cannot find any exact numbers of Cashmere Hair, but they must be selling quite well – upon visiting their website, I was offered a $20 off deal with the code “SPRING2016.” It is safe to say that without any of the Sharks, Cashmere Hair was still affected by the Shark Tank effect, and their sales must be quite strong for them to still be around (although, their margins are incredibly high).