Sheen Moaleman and Keir Dillon seek an investment in Frends Headphones, their line of headphones that “connect a personal style with everyday life,” in Shark Tank episode 710. The company was started by Dillon – a professional snowboarder and two-time X Games bronze medalist – along with other X Gamers. The group of friends decided they wanted to leverage their celebrity status by working on a business together and decided on headphones, since it was a product they all used every day.
The brand name “Frends” came about because the friends always said: “there is no ‘I’ in Frends. In 2011, the group set out to create and design durable, good sounding headphones. They are constantly re-designing new versions of their headphones, including a $9,000 pair of Dolce & Gabbana, Embellished Leather Headphones with Gold Crown that quickly sold out after pop star Rihanna tweeted a picture of herself adorning them. Most of the company’s headphones sell in the $150-$200 range. Frends’ hipness and strategic marketing has helped them become a leading brand in designer audio accessories.
The company largely appeals to women with BaubleBar, Swarovski, and Dolce & Gabbana collections. There are even removable caps for the headphones to change the look. Each set comes with a one year, limited warranty. While the business appears successful, they may want a Shark to help with expanding production demands.
Will a Shark listen to the opportunity and invest?
Frends Shark Tank Recap
Kier and Sheen come to the Shark Tank seeking an investment of $1 million in exchange for 7.6% of the company. Sheen explains that the idea behind Frends is that women want fashion accessories. The headphones are updated each season to keep up with the latest fashion trends. They hand out samples to the Sharks, who are impressed by the product, but want to know more about the valuation.
Kier explains that they did $2.9 million in sales last year, with a target of $6 million. They launched in 2013 in Apple and Best Buy, selling $2.5, at a loss of $1.3 million. They’ve been able to raise $1.5 million through pre-sales. After they got back their original unsold inventory from the Apple and Best Buy debacle, they were able to sell out. They believe they’ll make $8.7 million in the upcoming year with a new necklace product that will retail at between $300 and $500, at a cost of $60 for production.
Their most optimistic scenario for next year is $34 million, with a profit of $3 million, because they’re re-investing most of their profits. So far, the company has lost $9 million total. Based on the current sales and losses, Kevin O’Leary is out.
Ashton Kutcher is unimpressed with their presentation and their ability to answer the questions clearly. He’s out.
Lori Greiner doesn’t believe the pair are running the company well. She, too, is concerned about the hemorrhaging of money. She’s out.
Robert Herjavec believes their projected sales are unrealistic in light of the losses and the sales prices. He’s out.
Mark Cuban believes the losses aren’t unusual in an electronics company, but he believes they’re pinning their hopes for sales on the new necklace product, and it’s too big a chance to take for him. He goes out as the final Shark, and the pair leaves the stage with no deal.
Frends Shark Tank Update
Although the company didn’t get a Shark deal, they continued to be featured in fashion magazines, and the headphones are still for sale through the website. Social media remains active, implying that the brand is still selling in spite of the lack of Shark interest. In an interview, Sheen revealed that he learned from the Shark Tank experience, and admitted that the pair were unprepared for the Sharks’ “interrogation.”
Hopefully the pair took the Sharks’ advice to heart and patched the leaks in their headphone company. A business is only as good as its bottom line after all. Frends might not have sounded good to the Sharks, but if they can raise sales and profit above the losses, they may still strike a sweet note.
Mooaleman left the company in 2016 and now is a practicing attorney. Dillon left the company in 2017 and is now Managing Director at OPEN Beer. A gentleman by the name of Dan Davis is the CEO now.
As of April, 2024, the company is still in business with annual revenue of $8 million.
Posts About Frends on Shark Tank Blog
Frends Company Information
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