Pretty Rugged – Faux Fur
DEAL
EPISODE SUMMARY
🕓 Air Date: October 21, 2022
Asking For:
$200,000 for 10%
Investor:
Robert Herjavec, Lori Greiner (50/50)
Deal:
$200,000 for 25%
PRODUCT SUMMARY
Pretty Rugged offers luxury outdoor accessories, with a flagship product being a waterproof and windproof blanket with faux fur lining.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Tracy Slocum, the CEO and founder of Pretty Rugged, hails from Albany, New York. She is the great-great-granddaughter of Captain Joshua Slocum, the first person to sail solo around the world. Inspired by her ancestor’s adventurous spirit, Tracy created Pretty Rugged. The company’s flagship product is a versatile blanket with faux fur on one side and waterproof, windproof material on the other.
The idea for the product came to Tracy when she wanted a cozy yet functional blanket for outdoor use, much like her great-great-grandfather needed a reliable boat for his historic voyage. She launched Pretty Rugged in 2017, combining luxury and practicality to redefine outdoor accessories.
The Product
Pretty Rugged’s flagship product is a unique blanket designed for outdoor enthusiasts. It features a luxurious faux fur side for comfort and warmth, while the other side is made of waterproof and windproof material.
This dual-sided design makes the blanket versatile and suitable for various outdoor activities such as picnics, camping, boating, or simply staying warm in chilly weather. The blanket’s faux fur feels like real sheared mink, providing both style and coziness.
Customers can purchase Pretty Rugged blankets directly from the company’s website, with prices ranging from $220 to $290. The product’s premium quality and functionality have made it a favorite among customers.
The waterproof backing ensures that users stay dry even when sitting on damp surfaces, while the soft faux fur adds a touch of luxury to outdoor experiences.
How It Went
The company’s position before Shark Tank
Pretty Rugged has achieved remarkable success since its launch in 2017. Tracy Slocum’s innovative product and entrepreneurial spirit garnered instant credibility for the company. In its first year, Pretty Rugged won Best New Product and Best in Market awards at a major trade show and was recognized as one of Oprah’s Favorite Things.
The company primarily sells its products through its website and has a loyal customer base. Tracy mentioned having sold over 30,000 units, with lifetime sales approaching $3 million. In the last year, Pretty Rugged achieved $1.197 million in sales, with a net profit of $32,000.
However, the company has faced challenges, particularly related to its trade show expenses, which amounted to $180,000 in the previous year. Additionally, supply chain issues and tariffs on Chinese imports have affected costs. Tracy expressed the need for a strategic partner to help streamline operations and maximize the company’s potential.
The Negotiations:
Tracy initially asked for $200,000 in exchange for 10% equity in her company. However, the Sharks were concerned about the company’s financial health, given its high trade show expenses and negative P&L statement. Kevin O’Leary expressed doubt about the investment due to the significant trade show costs. He eventually dropped out, followed by Mark Cuban and Daymond John, both citing reasons related to the use of faux fur, which they believed might not align with current consumer trends.
Lori Greiner and Robert Herjavec, however, saw potential in Tracy’s product and her determination to succeed. They offered Tracy $200,000 for 25% equity, which she accepted, and a deal was struck. Lori and Robert believed they could provide the expertise and support needed to help Pretty Rugged thrive. Tracy was excited about the partnership and felt that her American dream had come true. Pretty Rugged secured a deal with two Sharks who were impressed by the product’s quality and Tracy’s resilience as an entrepreneur.
