Birddogs Shorts
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 7, 2018
Asking For:
$250,000 for 1,50%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Birddogs Shorts, the brainchild of Peter and Chris, are gym shorts with an integrated liner designed to render traditional underwear obsolete, offering unparalleled comfort alongside practical features such as phone and wallet pouches.
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Background Story
The story behind Birddogs Shorts unfolds with Peter, a former executive climbing the corporate ladder at IBM, experiencing a revelation during a business trip. Frustrated with the discomfort of traditional underwear, Peter decided to change his trajectory, leaving the corporate world behind. His decision led to the creation of shorts that not only eliminated the need for traditional undergarments but also added functionality with pockets and an emphasis on comfort.
The duo embarked on their entrepreneurial journey, initially selling their innovative shorts from a folding table outside gyms. This hands-on approach allowed them to understand their market, refine their product, and lay the foundation for what Birddogs Shorts is today.
The Product
Birddogs Shorts are more than just a garment; they embody a lifestyle choice. The integrated liner provides a liberating experience, combining the freedom of nudity with the practicality of a fanny pack. Noteworthy features include a phone pouch, wallet pouch, and two hand pouches, all seamlessly integrated into the shorts.
The fabric is not only soft but also quick-drying, allowing wearers to transition effortlessly from workouts to social occasions. Exclusively available online, each pair is priced at $55, boasting a 67% gross margin, reflecting the company’s commitment to quality.
How It Went
The company’s position before Shark Tank
Birddogs Shorts has experienced meteoric growth since its inception three years ago. From a modest $200,000 in sales during the first year, the company achieved an impressive $2.1 million in the second year and anticipates reaching $6.3 million in the third year.
The founders attribute this success to a combination of their superior product and a marketing strategy that boasts a remarkable 40% open rate on emails, far surpassing the industry average of 4%. Marketing expenses constitute 20% of net sales, reflecting their commitment to maintaining a strong online presence.
The Negotiations:
The negotiations in the Shark Tank took an unexpected turn as the sharks expressed concerns about the company’s valuation and financial strategy. Despite the founders presenting impressive sales figures, skepticism loomed large, particularly regarding their perceived arrogance. The sharks questioned the decision not to invest more in inventory, given the substantial cash reserves.
The negotiation ended with no deal, as the sharks felt a misalignment in business strategies and were put off by what they perceived as arrogance. Kevin O’Leary, known for his no-nonsense approach, voiced strong disapproval, stating that the founders were “dead” to him. This unexpected outcome left the founders reflecting on their pitch and the need for strategic partnerships to fuel their exponential growth.
