Key Points
Investment: £50,000
Investor: No deal made
Equity Offered: 10%
Business: Waxshoe, express intimate waxing system
Target Audience: Salons and consumers seeking efficient and comfortable waxing services
Challenges: Market differentiation, market size estimation, scalability
The Pitch
Gemma Caffocky, an entrepreneur from Nottingham, presented her business Waxshoe to the Dragons' Den, seeking an investment of £50,000 for a 10% equity share. Waxshoe is a dedicated express intimate waxing system, designed to offer salons a more efficient and comfortable waxing solution. Gemma emphasized the unique attributes of Waxshoe, such as its quick-setting wax beads that reduce drying time, flexibility, and thorough hair removal.
During her pitch, Gemma highlighted that Waxshoe had already been adopted by 55 salons in the UK and even expanded to a salon in Iceland within six months of its launch. Her business model includes selling a comprehensive kit—essentially a "business in a box"—to salons, which covers equipment, product, branding, and training for 50 treatments.
Financials and Offer
The financial structure of Waxshoe involves an initial investment of £350 for the starter kit, with salons typically spending an additional £200 every two months on repeat orders, resulting in an annual spend of around £1,500 per salon. Gemma’s salon, which turns over £400,000 annually, derives 75% of its revenue from intimate waxing, demonstrating a significant demand for this service.
Challenges Highlighted by the Dragons
Despite the promising start, the Dragons identified several challenges:
- Market Differentiation: Peter Jones questioned the uniqueness of Waxshoe’s formulation and its potential for easy replication by competitors, despite Gemma’s assurance of a non-disclosure agreement with her chemist.
- Scalability and Market Size: Nick Jenkins and Deborah Meaden raised concerns about the size of the intimate waxing market and the lack of detailed market research specific to this segment.
- Business Strategy: Several Dragons felt that Gemma could finance her business expansion through her existing profitable salon. They also pointed out that combining the salon and Waxshoe businesses might provide better investment security and growth potential.
Conclusion
In the end, despite her confident pitch and demonstration, Gemma left the den without securing the £50,000 investment. The Dragons appreciated her entrepreneurial spirit and the potential of Waxshoe but believed she could achieve her business goals independently. Encouraged to test the market further and possibly explore international opportunities, Gemma exited with valuable feedback and the determination to continue growing her innovative waxing business.