Shark Tank Recap
Diana and Josh Harbour appeared on the sixth season of Shark Tank seeking $600,000 for a 5% equity stake in their company Red Dress Boutique. They described their company as a “modern and affordable way to be fashionable” as well as one of the fastest growing online retailers. The main goal of the company is to help women feel confident and like “one million bucks” without having to spend one million bucks. The married duo stated that they are able to accomplish this goal by updating their collections daily and pricing 80% of the company’s merchandise under $50. This price point also helps attract the company’s main demographic, the average woman who between work and raising a family, has little or no time to shop for herself. Diana details that the website automatically suggests accessories for any outfit a customer adds to their online shopping bag. She also goes on to state that each package is designed to be delivered as a present, wrapped with tissue paper and a hand-written thank-you note.
Robert Herjavec was one of the first sharks to chime in with questions for the couple, first asking about what the average buy is per customer. Joshua answers that the average purchase price is $75 per order with several customers purchasing 6-7 times throughout the year. He also notes that are continuously experiencing new growth and gaining new customers. The sharks seemed pretty impressed with the business model and growth the company had over their first four years, but became blown out of the water when they heard the company’s current sales. In their fourth year, Red Dress Boutique made 7.5 million dollars. The couple reveals that their success is largely due to the fact that they quit their jobs, sold their home and took out a six figure loan in order to give it their all when starting the online clothing store. They lived with friends on an air mattress during the company’s first year, in order to make the business a major success. Diana explained that she travels to trade shows several times throughout the month in order to find new designers and trends, while utilizing social media accounts to test out new looks and get feedback from consumers.
Although impressed with the couples drive, Mr. Wonderful stated that he is worried about the success of the company trying to clone themselves and for that reason he was out. Lori soon followed and said that although she was extremely impressed with the progress the company has made, she does not feel that she is the right shark to take on the job. Damon quickly followed stating that he too felt he was not a good fit to be the mentor of the young online business.
Mark Cuban then questioned the couple as to why they needed $600,000 and what their plans were for the money. Diana answered that the online boutique had currently maxed out their current online system and was looking to use $300,000 to develop a new website that would give them a better back end system to interpret various data. However, more importantly they are looking for a mentor to help them get to that nine figures per year income bracket. Robert Herjavec chimes in that he is the perfect shark for website development and offers $600,000 for 15% of the company. The couple declines his offer due to the increased equity stake.
Mark agrees that he needs more skin in the game and asks for their best equity percentage. The duo counter offers and says they are willing to increase to a 10% equity stake. Robert quickly counters that he is willing to put match $600,000 to Mark’s $600,000 for 20% equity; each getting 10%. The couple has struck a deal that they can’t refuse and accept the offer of $1.2 million dollars for 20% equity with two sharks, Mark Cuban and Robert Herjavec.
Red Dress Boutique – Beyond the Tank
After Shark Tank the couple was set on developing a new website to help drive traffic and sales. Mark and his time tried to convince the couple that they did not need to develop an entire new website, but instead could update the one they currently have. Mark feels that the company is still experiencing good growth and that is all put in jeopardy bringing in a new website and platform. The excerpt ends with the couple going against Mark’s advice and agreeing to go ahead with a new website.
Shark Tank Episode Update & Recap
During Season 7 of Shark Tank, episode 702 revealed an update on the status and success of the partnership between Red Dress Boutique and Mark Cuban. During the update, Diana and Josh Harbour recapped their experience on both Shark Tank and Beyond the Tank. After Shark Tank aired the company made over one million dollars in just six short days, which was more money in sales than the couple ever could have hoped for. Except for the fact that all of the traffic ended up crashing their website for 17 hours. During Beyond the Tank the couple wanted to spend over $250,000 on a new website, despite Mark Cuban’s advice not to. At the end of their excerpt they ultimately decided that a new website was the right direction for their company. However, during this update, the couple revealed that they changed their minds since the airing of Beyond the Tank and went with Mark Cuban after all; deciding to let him and his team takeover the Red Dress Boutique website. Since then, the couple has been able to take the money they saved from not redoing the company’s website and have begun designing an in house clothing line, a home decor line and have started developing a Red Dress Boutique App.
Red Dress Boutique Now in 2018 – After the Tank Update
Currently Red Dress Boutique appears to be doing just as well as ever! They are available on every social media platform: Facebook, twitter, Instagram and even Snapchat (Shopreddress). Facebook alone has more than 1 million followers and also features various coupon codes that can be used at their online store. Not to mention you can post various questions/comments on their Facebook wall about colors, sizing, etc. and expect a timely response to your question. Their website is still offering cute and fashionable styles for an affordable price, making it easier than ever to stay up to date with the latest trends. When it comes to companies featured on Shark Tank, Red Dress Boutique seems to be one that has hit it out of the park with a future that looks to hold a ton of success.