The Red Dress Boutique is one of the fastest growing online women's retailers in the country. They are pitching Shark Tank in Season 6. They update their collection daily.
Red Dress Boutique caters to women who want to look like a million dollars
The Red Dress Boutique caters to women who want to look like a million dollars but needs an outfit under $50. The put together prepackaged outfits for their clients.
They package every order as a present to the customers with a handwritten note to each customer. They match it with jewelry to make a complete look.
The average order is $75 with their customers ordering six times a year. Sales for the previous year are $8 million. They anticipate $12-15 million in the current year and the website is live for four years.
Company: The Red Dress Boutique
Entrepreneur: Diana and Josh Harbour
Ask: $600k for 5% equity
From: Athens, Georgia
Companies in this episode: Jungle Jumparoo, The Caddy Girls, Sun-Staches
Season: Season 6 Episode 605
Sharks: Mark Cuban, Daymond John, Kevin O'Leary, Lori Greiner, Robert Herjavec
First Aired: 10/17/2014
Deal: Mark Cuban and Robert Herjavec give them $1.2 million for 20%
They worked cubical jobs and took out a six-figure loan and then lived with Josh's college buddies for the first year.
The Red Dress Boutique uses social media to find out why and what their customers want to buy. Diana goes to the market every three weeks to buy so they always have fresh merchandise.
She takes pictures of items before she buys and throws it out on social media to see if customers will purchase the item.
Diana uses her fathers death to push her in Red Dress Boutique every day.
They will make $2 million profit on $15 million in sales. They are now using retargeting advertisements and are just getting data back.
What do the Shark Tank Investors say about the Red Dress Boutique
Mark Cuban wants to know what they will do with the $600,000. They need $300,000 for a new website. Mark loves what they are doing, and he asks them what do they think is fair equity, and he will say yes, or no. Josh will go to ten percent.
Daymond John believes they are the FUBU of their category, and he wishes that he could help her, but he would be learning from them. He is out.
Kevin O'Leary believes the road ahead is going to be a significant risk, and he doesn't want to take the chance so he is out.
Lori Greiner thinks she can learn from Diana to grow social media business and she believes she is not the right Shark for her, so she is out.
Robert Herjavec thinks he can add a lot of value on the back end and will give them $600,000 for 15%. They decline Robert's offer. Robert comes back and offers $1.2 million for 20%, and Mark Cuban will join in on the deal. They say yes.
The Red Dress Boutique after Shark Tank
Diana and Josh did an update on Shark Tank Season 7. Mark Cuban helped them go to a million dollars in six days after Shark Tank. Mark did not want to put in a new website and felt it was too much money.
They decided to let Mark Cuban's team take over the website, and their sales and profits continue to rise. They are launching their own fashion designs and going into home furnishings.
Updates talk about the relationship with Mark Cuban, but nothing about Robert Herjavec. It is possible that the deal did not complete with Robert, but completed with Mark Cuban.