BedRyder – Truck Bed Seating
NO DEAL
EPISODE SUMMARY
🕓 Air Date: March 6, 2015
Asking For:
$200,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
BedRyder offers a system that enhances the safety of riding in the back of a pickup truck, creating a "Truck-U.V."
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Background Story
The charismatic George Conway, a 53-year-old sales manager, presented the product with enthusiasm and a touch of Southern charm. The brainchild behind BedRyder, however, is George’s childhood friend, Kerry Hide, who serves as the inventor and majority shareholder with an 85% ownership stake. The idea for BedRyder stemmed from a desire to address the safety concerns associated with riding in the back of a pickup truck. George and Kerry, friends since the tender age of 7, embarked on this venture together, driven by a shared passion for enhancing the experience of pickup truck enthusiasts.
The accidental crash testing at a NASCAR race, where George and Kerry, along with Kerry’s two sons, experienced a collision that destroyed the car but left everyone in the truck unharmed, became a pivotal moment in validating the safety claims of their invention. George, leveraging his sales background, assumed the role of BedRyder’s sales manager. The duo decided to tackle the challenge of making pickup truck rides safer by creating the BedRyder system. This system involves a straightforward installation process, requiring the attachment of seats to the back of a pickup truck using three bolts.
George’s pitch exuded confidence, emphasizing the convenience and legality of BedRyder’s solution, which he affectionately referred to as a “Truck-U.V.” The camaraderie between George and Kerry, coupled with their shared vision of turning a potentially unsafe activity into a secure and enjoyable experience, forms the backbone of BedRyder’s origin story. The pitch showcased not only the product’s practicality but also the deep bond and commitment of the founders to bring a unique and safety-focused solution to pickup truck enthusiasts across the country.
The Product
BedRyder, a safety innovation for pickup truck enthusiasts, introduces a system that transforms the back of a pickup truck into a secure and convenient seating area, aptly referred to as a “Truck-U.V.” The system is designed for easy installation, requiring users to slide the seats into the back of the pickup truck and secure them with three bolts. This simple process enhances the overall safety of riding in the back of a pickup truck, addressing concerns associated with this activity.
The benefits of the BedRyder system go beyond just safety. It provides pickup truck owners with the practicality of SUV-style seating, expanding the utility of their vehicles. The system is positioned to make pickup truck rides more enjoyable and legally compliant, meeting and exceeding federal safety guidelines in every state in the country.
The company has sold 800 units over a four-year period, and recent developments include a deal with an online company specializing in truck accessories. The price point, combined with the convenience and safety features of BedRyder, positions the product as an attractive option for pickup truck owners looking to enhance their driving experience while prioritizing safety.
How It Went
The company’s position before Shark Tank
BedRyder’s performance, as presented in the Shark Tank pitch, provides insights into the company’s current standing and strategies for growth. Over the span of four years, BedRyder has achieved sales of 800 units, primarily through online channels. The recent partnership with an online company specializing in truck accessories signifies a step towards expanding their market reach. The company’s structure revolves around a partnership between George Conway, the sales manager, and Kerry Hide, the majority shareholder and inventor of BedRyder.
Kerry owns 85% of the company, while George holds the remaining 15%. This ownership distribution became a point of discussion in the pitch, with Barbara Corcoran expressing concerns about the majority shareholder’s absence during the presentation. However, George Conway did mention plans to leverage a unique growth strategy. He intends to tap into the existing customer base of 800 units sold, turning them into incentivized sales representatives. This approach involves offering customers $100 for every sale they generate, demonstrating an innovative approach to scaling the business without extensive external funding.
The Sharks expressed concerns about the scalability of the business, given its cash-intensive nature. BedRyder’s pricing strategy, with a manufacturing cost of $300 and a retail price of $699 per set, prompted skepticism among the Sharks about the product’s competitiveness in the market. While BedRyder showcased a product with safety innovation and potential market appeal, the pitch raised questions about the company’s financial structure, profitability, and the effectiveness of its growth strategies. The partnership with an online truck accessories company indicates a move towards strategic collaborations, but the company’s overall financial health and long-term sustainability remain open to further scrutiny.
The Negotiations:
The negotiations for BedRyder in the Shark Tank proved challenging, with the Sharks expressing both enthusiasm for the product and reservations about its viability and financials. George Conway sought $200,000 for a 15% stake in the company. Mark Cuban, the first to express concerns, cited worries about safety and potential legal issues, leading him to bow out early. Other Sharks, including Barbara Corcoran and Kevin O’Leary, highlighted worries about the business model and the high cost of manufacturing, questioning the scalability and profitability of BedRyder.
O’Leary, in particular, advised George to consider selling something more profitable, suggesting a dramatic exit strategy involving a can of gas and a match. Despite these challenges, Lori Greiner expressed interest in George himself, rather than the business, and offered him a job. Robert Herjavec acknowledged the appeal of the product but raised concerns about the unpredictability of inventory turnover, leading him to opt out. The negotiation reached a turning point when George proposed a deal to Kevin O’Leary. George offered to buy 1,000 units with the $200,000 investment, aiming to renegotiate the price down to $200 per unit.
However, O’Leary declined, citing reservations about crashes and roll-overs, ultimately opting out of the deal. Barbara Corcoran raised concerns about the absence of the majority shareholder, Kerry Hide, during the pitch, leading her to opt out. In the end, despite expressions of interest in the product, no deal was struck. The negotiations highlighted the Sharks’ varying concerns about safety, scalability, and the financial viability of BedRyder, leaving George to continue pursuing the growth of the company through unconventional means and existing customer incentives.
