The Sharks Snuggle Down With Comfy! | Shark Tank US | Shark Tank Global

Summary

In this *Shark Tank* pitch, brothers Michael and Brian Special present 'The Comfy,' a sweatshirt-blanket hybrid designed to keep people warm and cozy during the holidays. They seek $50,000 for 20% of their company. Despite concerns from the sharks about competition and margins, the product impresses with its unique features, such as reversibility and one-size-fits-all design. Robert and Barbara offer deals, and the brothers ultimately accept Barbara's offer for 25% equity. The pitch highlights their entrepreneurial spirit, product innovation, and the pursuit of the American dream.

Takeaways

• 😀 The Special Brothers, Brian and Michael, pitch their product, 'The Comfy,' to the Sharks, seeking $50,000 for 20% equity in the company.
• 😀 'The Comfy' is a sweatshirt-blanket hybrid designed for comfort, warmth, and convenience. It's made of soft microfiber and luxurious sherpa, with a large pocket for phones or tablets.
• 😀 The product is marketed as one-size-fits-all and is reversible, offering both comfort and style options for all ages.
• 😀 Despite not having any sales yet, the Special Brothers express confidence in the potential of 'The Comfy' as a viral product.
• 😀 The cost to manufacture each unit is $17, and they plan to sell 'The Comfy' for $39.99, with hopes to reduce the cost to around $11 for higher margins.
• 😀 The product was inspired by a moment when Brian noticed his nephew, Saxon, looking cozy on the couch in a sweatshirt and blanket combination.
• 😀 The Special Brothers face skepticism from the Sharks, with several questioning the uniqueness of 'The Comfy' in comparison to products like the Snuggie.
• 😀 Kevin O'Leary rejects the deal, citing the lack of sales, customer acquisition plans, and competition from the Snuggie, which sold 22 million units in its first year.
• 😀 Robert Herjavec offers $50,000 for 50% equity, while Barbara Corcoran counters with an offer of $50,000 for 30%, but requires the Special Brothers to handle all the work.
• 😀 After some negotiation, the Special Brothers accept Barbara's offer, giving her a 30% stake in exchange for the $50,000 investment, marking the success of their pitch.
• 😀 The episode highlights the importance of a strong pitch, perseverance, and the ability to secure a deal even with no prior sales, as demonstrated by the Special Brothers' journey.

Q & A

What is the product being pitched in the script?

The product being pitched is called 'The Comfy,' which is a sweatshirt-style blanket designed to provide warmth and comfort. It is reversible, one-size-fits-all, and features soft microfiber and luxurious sherpa materials.

Who are the entrepreneurs pitching the product?

The entrepreneurs pitching 'The Comfy' are Brian and Michael Special, who are brothers and single dads from Phoenix.

What is the main selling point of The Comfy?

The main selling point of The Comfy is that it combines the features of a blanket and a sweatshirt, offering ultimate warmth and comfort for lounging or going out. It is also reversible and can fit both adults and children.

What is the retail price of The Comfy and how much does it cost to produce?

The retail price of The Comfy is $39.99. It costs between $13 and $17 to produce, with a landed cost of $17.

What was the original inspiration for creating The Comfy?

The idea for The Comfy came from Michael's nephew, Saxon, who was sitting on the couch wearing one of Michael's sweatshirts and appeared cozy and warm. This sparked the idea of creating a similar product for adults.

What challenges do the entrepreneurs face in getting The Comfy to market?

The entrepreneurs face several challenges, including lack of initial sales, uncertainty around customer acquisition costs, and needing to secure funding for production and inventory. Additionally, they are still in the process of finalizing the product and website.

Why did Kevin O'Leary decide not to invest in The Comfy?

Kevin O'Leary decided not to invest because he felt that The Comfy was too similar to the Snuggie, which was already a well-established product. He also expressed concerns over the potential cash burn and lack of customer acquisition strategy.

What was Robert Herjavec's offer to the entrepreneurs?

Robert Herjavec offered $50,000 for 50% equity in The Comfy, expressing his belief that the product had potential but required significant work to make it successful.

How did Barbara Corcoran respond to Robert's offer?

Barbara Corcoran undercut Robert's offer, offering $50,000 for 30% equity, agreeing to do the work needed to market and sell the product. She emphasized her expertise in online marketing.

What was the final deal made on the show?

The final deal was made with Barbara Corcoran, who offered $50,000 for 25% equity in The Comfy. The deal was struck after some back-and-forth negotiations, and the entrepreneurs agreed to the terms.