How Mark Cuban struck a lucrative deal with a family-owned 'manscaping' business on 'Shark Tank'

On Sunday, a "manscaping" kit business secured a $500,000 deal from two Sharks on ABC's "Shark Tank."

A father-and-son duo from San Diego, California, Steve and Josh King, entered the Tank seeking $500,000 for a 7 percent stake in Manscaped, a company that sells tools and products for below-the-waist grooming and hygiene for men. Manscaped offers electric trimmers, razors, and skincare products, both individually and in kits. During their pitch, the Kings demonstrated the tools on a shrub.

The presentation elicited laughter from the Sharks, prompting Mark Cuban to inquire of guest judge Charles Barkley, "America and the world are eager to know: Charles, do you groom yourself?"

“Not a day in my life,” Barkley responded.

Robert Herjavec, another Shark, confessed that he enjoys manscaping. He admitted that he became addicted to the process after getting a wax while participating in "Dancing with the Stars."

A lot of people, including me, manscape in various locations.

Josh King came up with the idea for Manscaped while discussing horror stories about manscaping with his friends. One of their examples was a friend who used a beard trimmer for a quick clean-up before a date and ended up cutting himself so badly that he had to cancel.

Josh, who has experience working at start-ups and digital agencies, shared his idea for targeted tools with his dad, and they collaborated to launch the company.

In January 2017, Manscaped was launched, but the Kings struggled to market their products to their target audience. They were on the verge of shutting down their business. However, they changed their approach and began marketing with humor, including live videos of the horror stories that inspired Manscaped.

In April 2017, the kings launched their marketing plan and sold out 3,000 products in just 13 days. Despite this, by the end of 2017, they reported $1.5 million in sales, but with a net loss.

Steve stated that as of the current year, the company has earned $2.1 million. He explained that they would have made approximately $60,000 to $80,000 per month if they had not reinvested the money back into inventory and advertising. On their advertising efforts, they spend between $120,000 to $150,000.

The Sharks believed that the King's estimated value of the business at approximately $7.1 million was overvalued. "That's a lot of hair down there," joked Kevin O'Leary.

O'leary was out due to the low margins ($7 per kit) and high customer acquisition cost ($16).

Barkley also said no.

Herjavec, known for his interest in male grooming, proposed a deal worth $500,000 for a 35% stake in the business, which was valued at approximately $1.4 million.

Lori Greiner showed interest, inquiring if women typically purchase the kits as presents for men.

I believe it's the opposite," Cuban stated. "It's a gift for the lady.

During the holiday season, the Kings observe an increase in women purchasing gift kits for men.

Lori Greiner, the host of her own popular show on QVC, received Cuban's approval to sell her product on the shopping network. Cuban agreed to provide the funds to see her sell it on QVC.

Greiner was pleased with the suggestion. Cuban and Greiner proposed to purchase 25 percent of the company for $500,000, valuing it at $2 million.

Herjavec admitted that Cuban and Greiner's proposal was superior and withdrew his.

The Kings countered Cuban and Greiner with a 20 percent stake, but the Sharks remained unyielding. With some encouragement, the Kings eventually agreed.

"We believed that the probability of you exiting 'Shark Tank' with $500,000 was nil when you presented here," stated O'Leary.

In a year, her company generated over $1M in sales after she left her job as a personal assistant to address the issue of under-breast sweat.

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CNBC has been granted the exclusive off-network cable rights to "Shark Tank." CEO Paul Tran has provided additional information about the deal.