Season 5 | Episode 512 | EP512
In Season 5, Episode 12 of Shark Tank, Rachel Bernstein & Melissa Barone approached the Sharks seeking an investment of $45,000 in exchange for 15% equity in ‘Cashmere Hair’. The company is currently based in Beverly Hills, California.
Cashmere Hair is a product conceived by ‘celebrity stylists’ Rachel Bernstein & Melissa Barone. Their product was initially conceived as a way in which to give models ‘fuller looking’ hair during photo shoots. Upon receiving a number of compliments they decided to spin it off into a full business. Cashmere Hair products are constructed from real human hair. The cuticles are still intact on these products which help to create a slightly more luxurious look than other real hair extension products on the market.
The duo announced that their hair extension company has managed to generate $38,000 in sales in the six months that they had been in operation. They informed the Sharks that they would be using their investment to grow the company. This would mainly be through the introduction of Cashmere Hair Parties throughout the Hollywood area and beyond. They would also use a fraction of the proceeds to boost their presence online.
The main concern for the Sharks was the fact that the hair extension market is incredibly competitive. There are a number of big players out there. They believed that it would be very difficult to get Cashmere Hair extensions noticed without throwing a substantial amount of cash at marketing. They believed that the price point of the Cashmere Hair product was certainly not helping (although the pair stated that they would be unable to reduce the price). The Sharks believed that it would be very limited in scope. It was unlikely that Cashmere Hair would be able to achieve the sort of market domination that Melissa and Rachel were after.
Cashmere Hair was unable to secure any offers from the shark investors. This meant that Rachel Bernstein & Melissa Barone had very little choice but to leave the Shark Tank without the cash that they needed to expand their hair extension company.
None of the Sharks were willing to part with their cash when it came to investing in Cashmere Hair. They believed that it would be competitive niche and it would be unlikely that they would be able to earn a return on their investment.