Bad Birdie Golf Apparel
DEAL
EPISODE SUMMARY
🕓 Air Date: April 3, 2020
Asking For:
$300,000 for 10%
Investor:
Robert Herjavec
Deal:
$300,000 for 20%
PRODUCT SUMMARY
Bad Birdie creates performance golf polos with unique, fun styles that stand out on the course, featuring moisture-wicking, anti-odor, antimicrobial properties, and sun protection.
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Background Story
Jason Richardson, the founder of Bad Birdie, hails from Los Angeles and started the company 2 1/2 years ago. Dissatisfied with the traditional, boring options for golf polos, he decided to create a line that would bring freshness and style to the golf course. With no background in apparel, he embarked on the journey by researching how to make a golf polo.
After investing $20,000 of his own money, he achieved sales of $72,000 in the first year, and $412,000 in the second year, and expects to close the current year at $1.2 million. The success is attributed to the unique designs and technical features of the polos.
The Product
Bad Birdie’s golf polos go beyond the conventional options in the market. They are moisture-wicking, anti-odor, antimicrobial, and provide sun protection. Designed to be both stylish and functional, the polos fit exceptionally well, catering to a younger generation that is looking for a departure from the traditional golf culture.
The designs are created by Jason and a team of 10 designers, with approximately 30 new designs released per season along with limited-edition runs. The polos are priced at $72, with manufacturing costs decreasing from $40 to $17, and Jason aims to further reduce it to $12 in the next six months.
How It Went
The company’s position before Shark Tank
Bad Birdie has experienced significant growth, with a sales trajectory from $72,000 in the first year to an expected $1.2 million in the current year. The sales are primarily online, and the challenge lies in keeping up with the demand, often selling out within the first hour of release.
The company expanded into wholesale, generating $150,000 in sales this year, with commitments for $300,000 for the next year. While the company is currently structured as an online business, Jason is considering limited expansion into retail, aiming to keep it at 25% or less of the business.
The Negotiations:
The Sharks were initially skeptical about investing in apparel due to the competitive market but were impressed by Bad Birdie’s sales performance. Mark Cuban expressed concerns about retail and dropped out. Kevin O’Leary offered $300,000 for 30%, emphasizing staying away from retail. Robert Herjavec countered with $300,000 for 25%, also cautioning against retail but allowing a slightly higher equity stake.
Lori Greiner and Kevin O’Leary exited, leaving Robert as the sole remaining offer. Jason then introduced a golf-putting challenge, where Robert’s equity stake would decrease to 20% if he missed the putt but stay at 25% if he made it. After some banter, Robert accepted the challenge, he missed the putt and secured a deal with Jason at $300,000 for 20%.
