Megan Cummins appeared on Shark Tank Season 3 to pitch her business, You Smell Soap, which offers a line of luxury soap fragrances designed to enhance personality.
Megan wanted to create something for a college project that would enhance personality, which led to the creation of You Smell Soap. Let’s see if the Sharks considered it a real product and what happened with the business.
| Company Name | You Smell | |
| Founder/Co-Founder | Megan Cummins | |
| Founded | 2011 | |
| Product | luxury fragrances soap | |
| Asked For | $55k for 20% equity | |
| Final Deal | $55k for 20% equity + $50k salary first year | |
| Shark | Robert Herjavec | |
| Episode | S3 E3 | |
| Air Date | Feb 3rd, 2012 | |
| Business Status | Out of Business | |
| Website | Visit Website | |
| Headquarters | San Francisco, California, United States | |
| Lifetime Worth (Sales) | N/A *estimated | |
| Buy and Watch | Buy Now | Amazon Prime |
Business Pitch Episode Recap
Megan Cummins asked the Sharks for $55,000 in exchange for 20% equity in her company. She explained that her luxury fragrance soap started as a college project, but she saw a business opportunity in it. Megan produced 12,000 soap bars with two custom fragrances to test the product in the market.
She also mentioned that her business is currently in the pre-venture stage. The cost to make each soap is $0.80, and it is sold for approximately $2.25.
Mark Cuban asked Megan how she would use the $55,000 investment. Megan responded that the funds would primarily be used for product development.
Daymond John said he is not interested in the business, so he is out.
Kevin O’Leary said it’s a brutally competitive market and he is not confident about scaling the business, so he is out.
Mark Cuban expressed concern that the product has not yet been launched in the real market and questioned whether Megan is capable of scaling the business. In response, Megan assured him that if she is taught, she will take on all tasks and won’t need to be reminded repeatedly.
Mark Cuban was convinced and made an offer of $55,000 for 20% equity. However, Barbara Corcoran also showed interest and offered $55,000, but she wanted 40% equity plus $0.10 per bar sold.
Daymond John referred to Barbara Corcoran’s offer as “blood-sucking.”
Robert Herjavec asked Megan if she could leave her graphic design job to work full-time on her business. Megan confirmed that she could. He then offered $55,000 for 20% equity, along with an additional $50,000 salary for the first year.
After hearing Mark and Robert’s offers, Barbara revised her offer to $55,000 for 30% equity.
Megan decided to go with Robert Herjavec’s offer of $55,000 for 20% equity, along with an additional $50,000 salary for the first year.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Mark Cuban | $55k for 20% equity |
| Kevin O’Leary | No Offer |
| Robert Herjavec | $55k for 20% equity + $50k salary first year |
| Barbara Corcoran | $55k for 40% equity + $0.10 per bar sold (#1) $55k for 30% equity (#2) |
| Daymond John | No Offer |
| Founder’s (Countered) | No Counter |
| Final Deals | $55k for 20% equity + $50k salary first year |
You Smell Soap Shark Tank Update
After securing the deal with Robert Herjavec, when Megan was leaving, Mark Cuban remarked, “You made a mistake, Megan.” When it came time to finalize the deal, Robert changed his offer to the same amount of money but demanded 50% equity. Megan decided not to accept this revised offer.
Mark Cuban would have been a better Shark for Megan’s business, as he would have stayed consistent with his offer.
Without the Sharks’ help, Megan listed her product on Amazon and made thousands of dollars in sales. However, by November 2014, she had to sell her You Smell business.
While researching You Smell, we found out that Megan is currently working as a graphic designer. Additionally, she sells her graphic design art on Etsy under the name DownloadsThatDonate, and her store is listed among the top 100 Etsy shops.
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