Buttercloth is a brand of formal shirts created in Long Beach, California, that feel “like your favorite t-shirt.” Former NBA player Metta World Peace provides an example of comfortability.
The shirts are made entirely of “long fiber cotton” and offer six-way stretch and “breathability.” One entrepreneur says it’s like Bing “wrapped in a Caribbean hammock, but ready to give a NASA lecture.”
Buttercloth is available exclusively on the company’s website for $98 and $118. It costs between $20 and $25 to create each shirt, including shipping.
Buttercloth has generated over $500,000 in sales seven months since its introduction, despite the entrepreneur’s claim that each customer costs $40. Butter Cloth has conducted all of its marketing using Facebook and Instagram.
The inventor of Buttercloth, Dan, grew up in Vietnam for a short time before moving to the United States.
Before enrolling in a fashion school, he began his career with Mattel, designing clothes for Barbie dolls. He spent $250,000 of his own money in the business, selling his home and liquidating his 401(k).
The entrepreneur stated that he is seeking a $250,000 investment to spend two-thirds on merchandise acquisition and the other third on “in-house marketing,” however, he would also appreciate help on how to do it.
What is Buttercloth?
Buttercloth is a brand of ultra-soft men’s dress shirts made entirely of cotton, which does not wrinkle or retain body odor.
A fashion designer, a business partner, and a basketball player pitched Buttercloth to Shark Tank in October 2018.
Charles Barkley, another NBA great, was also a Shark, but he did not invest in Butter Cloth.
Fashion entrepreneur Robert Herjavec invested $250,000 in exchange for a 25% stake in Buttercloth.
|Entrepreneur||Dahn Tran and Gary Falkenberg|
|Product||Comfortable Cotton Clothes|
|Investment Asking For||$250,000 for 10% equity in Buttercloth|
|Final Deal||$250,000 for 25% equity in ButterCloth|
|Episode||Season 10 Episode 4|
|Business Status||In Business|
Who is the Founder of Buttercloth?
Dahn Tran and Gary Falkenberg are the founders of Buttercloth. There is a connection between Buttercloth’s and Tran’s stories. Tran worked for his family’s tailor shop as a child when he lived in Vietnam.
He then began making his garments to pursue his dream of becoming a fashion designer. He studied fashion before gaining Mattel’s post after his family moved to California in 1994.
After studying Art and Design there, he earned his bachelor’s degree in fashion from Otis College. Buttercloth was founded after Cashing in his retirement plan and selling his property.
Buttercloth Shirts Before Shark Tank
Danh Tran is a Vietnamese national who lives in Long Beach, California. A passion for fashion design has been in his life since he was very young, and he has spent his entire life pursuing it.
This designer has created a collection of ultra-comfortable dress shirts that still look sharp and presentable.
Buttercloth Shirts, a company he founded with his father, will provide $250,000 to the sharks in exchange for an equal stake in the company.
How Was Shark Tank Pitch of Buttercloth Shirts?
Danh entered the stage with one of his counselors, Gary Falkenberg (a friend of Buttercloth’s chief operating officer).
Danh, Metta, and Grey appeared on Shark Tank requesting an investment of $250,000 in exchange for 10% of ButterCloth.
They began their pitch with Danh explaining that he has always despised formal shirts due to their tendency to be stiff and rough.
The sharks liked his Buttercloth shirts because they made them appear completely occupied, but they made the wearer appear like he was wearing his favorite t-shirt.
Gary informed the sharks that the shirts were manufactured entirely of sustainable, long-fiber cotton, but Gary and Danh desired to bring out their “scientist” to elaborate.
Their scientist was revealed to be Metta World Peace, a former NBA star dressed in a white lab coat over a Buttercloth shirt.
He discussed the fabric’s six-way stretch and breathability before effortlessly dunking a basketball through a basketball net on stage.
Metta then gave the sharks samples of the shirts to touch and feel the fabric. All of the sharks expressed how lovely and soft they felt.
Kevin noted how eclectic the three were and inquired how they met. Metta, who holds a bachelor’s degree in mathematics, had been interested in marketing products and was so taken with Buttercloth that he decided to join.
Gary described how he met Danh through a mutual friend, and Danh then shared his story.
Danh was born and raised in Vietnam, where both his parents worked as tailors. Danh began sewing his outfits as a ten-year-old, but his mother warned him against pursuing a “bad career” in fashion.
She desired that he pursue a career as a physician or a lawyer. However, Danh was adamant about pursuing his dream of becoming an American fashion designer.
He traveled to America intending to apply to Otis College of Arts & Design, but the tuition was too much for him at $120,000.
He began working for Mattel, designing doll clothing instead. He was able to go fashion school and acquire a BA in Fashion Design after working there for five years and saving his money.
This degree led to other opportunities as a designer, including a ten-year stint as head designer at Affliction Clothing.
Charles Barkley began by inquiring about the clothes’ retail price and location of sale. Danh said the shirts were priced between $98 and $118 and were exclusively sold online.
Mark inquired about the pricing of the shirts, which Danh estimated to be between $20 and $25.
Charles inquired about how many had been sold, and Danh informed him that they had earned $500,000 in sales during seven months. That impressed the sharks.
However, Charles had other inquiries. He was curious about the company’s public relations strategy.
Gary intervened and stated that they were active on Facebook and Instagram. That is when Robert inquired about how much money they had spent running the business.
Danh admits investing $240,000 of his own money, quitting his job, selling his home, and cashing out his 401K. He was fully committed.
Kevin was curious about the acquisition cost of a customer. Gary explained the price was $40 per customer, which Kevin and Robert thought was excessive.
However, Robert continued probing Danh, inquiring about what they intended to do with the requested money.
Gary stated that two-thirds of the funds would be used to replenish inventories and one-third to expand marketing.
Kevin then stated that they required the services of a company to assist them in lowering their customer acquisition costs. He then withdrew.
Mark was also concerned about customer acquisition expenses and questioned why they budgeted more money for inventory than marketing.
He felt they needed to prioritize promotion over the product at this point. He withdrew.
Lori had already begun working in fashion, attempting to create a line of garments she could wear on the show and market.
She felt it was unjust to become engaged with another fashion brand and hence dropped out.
And Charles believed that the fashion industry was too competitive, and he was unwilling to invest any money. He was also absent.
That left Robert as the final shark. He stated that he is knowledgeable about the fashion industry and knows people who may assist Danh in improving his online performance.
Regrettably, he was not willing to invest for only 10%. He wants 25%.
Danh attempted to respond with 20%, but Robert refused to budge. There was too much risk, and he had intended to ask for 35%.
Danh considered for a moment before accepting Robert’s offer. Danh was so ecstatic that he jumped up and down multiple times. That brought a smile to the sharks’ faces.
Final Agreement: Robert Herjavec agreed to invest $250,000 for 25% equity in Buttercloth.
What Happened To Buttercloth After Shark Tank?
Following the episode’s airing, Buttercloth experienced a boost in sales. The company had sold $500,000 in seven months before participating in the show. Following that, it sold for $500,000 in just two weeks!
The company changed after a year. The company now had an office, a warehouse, a crew of designers, marketers, customer service staff, logistics specialists, and accountants.
ButterCloth expects to sell 50,000 shirts in 2019 and double that in 2020. Their product selection for 2019 was intended to consist of polos and sweaters. The website reveals, however, that these are already unavailable.
They planned to introduce henleys, tees, and jackets to their line in 2020. They also intended to develop a garment that actively cooled the body using advanced fabric technology.
Buttercloth had also intended to begin distributing brick and mortar businesses in 2020, but the coronavirus outbreak likely halted that work.
However, Buttercloth now offers reversible face masks in four distinct designs that should be just as comfy and breathable as their shirts.
Buttercloth’s Instagram account has nearly 50,000 followers and a Facebook page with over 20,000 likes. Additionally, the reviews are overwhelmingly positive.
If you wear a Buttercloth shirt, will it feel like you’re relaxing under a palm tree on an island in the Caribbean, but will it make you look like you’re giving a NASA speech? It might be worthwhile to discover.
Is Buttercloth Still in Business?
ButterCloth is estimated to have generated more than $5 million a year. They are selling shirts made of soft fabrics, and they plan to add underwear soon.
ButterCloth is predicted to stay in business for a long time and has great potential to expand as the years go by.
The online presence of ButterCloth is strong as they continue to sell high-quality underwear.
What Is the Net Worth of Buttercloth?
The valuation of Buttercloth was $2.5 million when it appeared on Shark Tank. The net worth of Buttercloth is above $5 million as of 2022.