College student Kobe Harris started a personal care lip balm company, Kobee’s, in June 2019 to offer a plastic-free and chemical-free alternative in the personal care industry. Initially, he handcrafted lip balms using natural ingredients like beeswax, coconut, sunflower, and mango butter. He also used compostable packaging for an eco-friendly touch.
Currently, his company sells several handcrafted personal care product lines in addition to lip balms. Will the Sharks invest their money in this eco-friendly business? Let’s find out.
| Company Name | Kobee’s | |
| Founder/Co-Founder | Kobe Harris | |
| Founded | June 2019 | |
| Product | Plastic & Chemical Free Handcrafter Personal Care | |
| Asked For | $300K for 6% Equity | |
| Final Deal | No Deals | |
| Shark | No Sharks | |
| Episode | S16 E3 | |
| Air Date | Nov 1st, 2024 | |
| Business Status | In Business | |
| Website | Visit Website | |
| Headquarters | Las Vegas, Nevada, United States | |
| Annual (Revenue) | $1.5 Million *estimated | |
| Worth / Valuation | $5 Million | |
| Buy and Watch | Buy Now | Amazon Prime |
What Is the Background of The Founder?
Kobe Harris started studying General Finance at Loyola University Chicago in 2018 and launched his personal care company in 2019. Between 2019 and 2020, he also completed internships at companies like ARIA Resort & Casino and Morgan Stanley. Currently, his company is fully focused on handmade personal care products.
Business Pitch Episode Recap
Kobe Harris asked the Sharks for $300,000 in exchange for 6% equity in his handcrafted personal care lip balm company.
When he was in college, Kobe came up with the idea for his business and borrowed $200 from his mom to buy basic ingredients to create a personal care product. After making the product, he sold Day One lip balm and achieved $3,000 in sales.
One month later, he made $10,000 in a single day, and within a year, the company’s sales reached $200,000. In 2023, the sales totaled $864,000, and so far in 2024, he has already reached $1.5 million in sales.
The company offers 11 different flavors, including Beeswax, Mango, Watermelon, Lime, Lemon, Strawberry, Coconut Vanilla, Mai Tai Punch, Piña Colada, Peppermint, and Passion Fruit.
They use compostable packaging and provide different sizes. The production cost for the lip balm is $0.26, and it is sold for $5.
Kobe explained that all of his brand’s products are currently sold directly to consumers (D2C) on their online website and the Amazon marketplace. They have not entered retail stores yet.
Kobe explained that the significant jump in sales is due to his learning how to reach targeted customers through Facebook, TikTok, and Google Ads. Currently, his ROAS (Return on Ad Spend) is between 2.5 and 3.
The customer acquisition cost is $14 to $15, and the average order value is $32. Lip balm accounts for 75% of the company’s total sales, while the remaining 25% comes from other personal care products.
Kobe estimates that in 2024, his company’s sales will reach between $3.5 million to $4 million, with a potential profit margin of $780,000.
Kendra Scott said that this business is not the right investment for her, so she is out.
Lori Greiner thinks that scaling this business in the retail space will be a tough challenge, so she is out.
Mark Cuban asked Kobe what he needed, and Kobe replied that he needed help with guidance and distribution. Mark said he cannot add value to this lip balm business, so he is out.
Daymond John said that this business is not his type, so he is also out.
Kevin O’Leary offered $300,000 but stated that he doesn’t believe the company’s valuation is $5 million, so he wants 20% equity.
Kobe currently has one offer from Kevin, but he was not ready to give up much equity with only a $1.5 million valuation. Kevin countered with an offer of $300,000 for 15% equity, but Kobe declined this offer.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Kendra Scott | No Offer |
| Kevin O’Leary | $300k for 20% equity |
| Mark Cuban | No Offer |
| Daymond John | No Offer |
| Lori Greiner | No Offer |
| Founder’s (Countered) | No Counter |
| Final Deals | No Deals |
Kobee’s Shark Tank Update
Kobe Harris’s story is quite inspiring, and the Sharks also recognize that he built a million-dollar company from just $200 in a few years. After appearing on the Shark Tank show, his business experienced a 4x boost in sales within a few days, making thousands of dollars in sales in a single day.
For more information, when we visited the company’s website, we discovered that they have launched new products: an overnight lip mask priced at $24 and a lip scrub priced at $12.
Here’s the updated list of businesses from Season 16 that have been shared. You can check it out!
