Sleeping Baby – Zipadee
DEAL
EPISODE SUMMARY
🕓 Air Date: September 26, 2014
Asking For:
$200,000 for 10%
Investor:
Daymond John
Deal:
$200,000 for 20%
PRODUCT SUMMARY
Sleeping Baby offers the Zipadee-Zip, a sleepwear product designed to provide a secure and womb-like environment for babies while allowing them to move freely.
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Background Story
Sleeping Baby, founded by Brett and Stephanie Parker, is a family-oriented business based in Fort Worth, Texas. The roots of the company trace back to the Parkers’ own struggles with their newborn daughter, Charlotte. Faced with the common challenge of getting a baby to sleep through the night, the couple turned to the swaddle technique, wrapping Charlotte up snugly like a burrito. The tight and cozy fit proved effective in helping her sleep peacefully. However, as their son Maverick came along, they encountered a common issue: babies breaking out of swaddles and waking themselves up.
This led to Stephanie’s innovative solution – the creation of the Zipadee-Zip. Facing exhaustion and desperation, Stephanie, with a background in sewing, sat down at her sewing machine and designed a sleepwear product that combined the snug feeling of a swaddle with the freedom for the baby to move comfortably.The Zipadee-Zip, as born out of Stephanie’s ingenuity, mimics the womb’s cozy and enclosed environment. It allows babies to push up, roll over, and wiggle around safely, addressing the challenges of traditional swaddling methods.
This inventive product not only solved a personal problem for the Parkers but also emerged as a game-changer for parents facing similar issues worldwide.With an initial investment of just $700, the Parkers embarked on a journey that has since transformed their small-scale endeavor into a million-dollar business. The success of Sleeping Baby is a testament to the power of simplicity, practicality, and the genuine connection the founders share with their community of parents seeking a solution for better sleep for their little ones.
The Product
The Zipadee-Zip, the flagship product from Sleeping Baby, is a revolutionary sleepwear solution for babies that combines comfort with freedom of movement. Unlike traditional swaddles, the Zipadee-Zip is designed to provide a snug and womb-like environment while allowing babies to push up, roll over, and wiggle around safely.
The key to its effectiveness lies in its thoughtful design. The Zipadee-Zip features a full-zip front, ensuring easy diaper changes, and “wings” that cover the hands to prevent scratching. The slight resistance in the arms creates a cozy and secure feeling for the baby, helping them self-soothe and fall back asleep without parental intervention.
The benefits of the Zipadee-Zip extend beyond promoting better sleep for babies; it also brings relief to parents by eliminating the challenges associated with traditional swaddles. The product’s versatility accommodates various sleep preferences and developmental stages, making it suitable for newborns and infants alike.
Customers can purchase the Zipadee-Zip directly through Sleeping Baby’s online platform, where it is available in different prints and sizes, priced between $34.95 and $39.95. The user-friendly website ensures a seamless shopping experience, allowing parents to choose from a range of designs that have been vetted and voted on by the engaged community of moms. With over 25,000 units sold in just two and a half years, the Zipadee-Zip has become a trusted and sought-after sleep solution for parents worldwide.
How It Went
The company’s position before Shark Tank
Sleeping Baby has demonstrated remarkable performance since its inception, positioning itself as a thriving player in the baby sleepwear industry. With sales exceeding $1 million within two and a half years, the company showcases robust financial health and a solid market presence. The founders, Brett and Stephanie Parker, strategically opted for a direct-to-consumer business model, with 100% of their sales conducted through their own website.
This approach not only allowed them to maintain control over their brand but also fostered a strong and engaged community of mothers who share their positive experiences with the Zipadee-Zip. The company’s success is further underscored by its impressive sales figures, having sold around 25,000 units of their flagship product. Despite minimal marketing efforts, Sleeping Baby’s popularity has grown organically, propelled by word-of-mouth referrals within the parenting community. As for funding, the Parkers initially invested $700 of their own capital to kickstart the business. The company’s bootstrap approach and efficient use of resources have contributed to its financial stability.
While specific profit and loss details are not disclosed, the continuous growth in sales and the strategic decision to stay direct-to-consumer indicate a positive financial trajectory. Sleeping Baby’s current structure is centered around its online platform, allowing customers to directly purchase the Zipadee-Zip. The absence of wholesalers suggests a focus on maintaining control over the product and brand experience. The company’s unique business model has proven successful, establishing Sleeping Baby as a testament to the entrepreneurial spirit, resourcefulness, and innovation in the baby products market.
The Negotiations:
The negotiations for Sleeping Baby’s Zipadee-Zip on Shark Tank were both emotional and strategic, reflecting the heartfelt story of the founders, Brett and Stephanie Parker. The Parkers initially sought a $200,000 investment for a 10% equity stake in their company, emphasizing the uniqueness and effectiveness of their sleepwear product. The Sharks were captivated by the genuine connection the Parkers had with their community of moms and the product’s potential to address a universal need for better baby sleep.
After an engaging discussion, offers began to pour in. Daymond John, recognizing the business potential and his ability to contribute, extended an offer of $200,000 for a 20% stake. Lori Greiner also expressed interest, offering the same amount but for a slightly higher equity share of 25%, citing her belief in the product’s potential for retail success. Kevin O’Leary made a straightforward equity offer of 20% for $200,000, expressing a desire to avoid royalties. Mark Cuban, moved by the Parkers’ resilience and entrepreneurial spirit, was quick to congratulate them but chose not to make an offer, acknowledging that they already had compelling offers on the table.
The negotiations took an emotional turn when Daymond John shared a personal connection to the product, expressing his understanding of the grief the Parkers had faced. In a touching moment, Lori Greiner also commended the Parkers for their resilience and dedication. Ultimately, the Parkers decided to accept Daymond John’s offer of $200,000 for a 20% equity stake. The decision was based not only on the financial aspects but also on the strategic partnership with Daymond, who had experience in the industry and could potentially guide Sleeping Baby towards further success. The negotiations showcased the power of a compelling story, a unique product, and the emotional resonance that can influence strategic decisions in the world of entrepreneurial investment.
