Buckle Me Baby Coats
DEAL
EPISODE SUMMARY
🕓 Air Date: December 4, 2020
Asking For:
$100,000 for 10%
Investor:
Daymond John
Deal:
$100,000 for 20% + 30% on all licensing deals
PRODUCT SUMMARY
Buckle Me Baby Coats is a patented winter coat designed for children that allows them to stay warm while safely strapped into a car seat.
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Background Story
Dahlia Rizk, the founder of Buckle Me Baby Coats, hails from Windham, New Hampshire, and is a passionate parent who identified a critical safety issue. She noticed that getting children into car seats during the winter could be challenging due to the thickness of their coats, which compromised safety. This realization led her to create a solution that would keep kids warm while ensuring their safety in car seats.
Dahlia’s journey began when her daughter was five years old, and she was determined to prioritize car seat safety. However, the market lacked a safe and convenient solution for keeping children warm in their car seats. Dahlia initially had the idea for car seat-safe coats 16 years ago but faced resistance from coat manufacturers who didn’t see the connection between coats and car seats. She put her entrepreneurial dreams on hold while pursuing other endeavors, including starting a family and pursuing a master’s degree.
Years later, Dahlia revisited her idea after seeing a mother struggling with a blanket in a parking lot. She decided to create a prototype and was met with overwhelming demand on social media. This renewed her determination, and she embarked on a challenging journey to build Buckle Me Baby Coats from the ground up. Today, her innovative product fills a crucial gap in the market, providing parents with a safe and warm solution for their children during cold winters.
The Product
Buckle Me Baby Coats are winter coats designed with a unique, patented design that addresses the safety concerns associated with traditional winter coats when children are strapped into car seats.
Unlike standard coats, Buckle Me Baby Coats open along the shoulder seams and the side, allowing parents to put the coats on their children at home. The innovative design allows parents to secure their child in the car seat just as they normally would.
When the child is strapped in, the front panel of the coat can be pulled out of the way, allowing the car seat harness to sit directly on the child’s chest and shoulders, with no puffy fabric interference.
The back of the coat is thinner than the front, ensuring that the harness can be tightened to the same level as if the child were not wearing a coat.
How It Went
The company’s position before Shark Tank
Buckle Me Baby Coats has demonstrated strong performance since its inception. Over the past three years, the company has sold approximately $700,000 worth of coats, with a significant portion of that revenue generated in the most recent year. The company primarily sells its products online through its website and Amazon, accounting for 75% of its sales. Additionally, 25% of its sales are made through a big-box retail store.
The company has not relied on external investors or funding and has been entirely self-funded by Dahlia Rizk. This approach has allowed her to prioritize inventory and product development without diluting equity or taking on debt. The business maintains healthy profit margins, with Dahlia’s cost to manufacture the coats ranging between $14 to $15 and selling prices between $59.99 and $129.
Buckle Me Baby Coats operates with a direct-to-consumer model, enabling the company to maintain control over its sales and marketing efforts. Dahlia envisions the possibility of expanding into international markets and exploring licensing opportunities to further grow the business.
The Negotiations:
During the Shark Tank pitch, Dahlia Rizk initially sought $100,000 in exchange for a 10% equity stake in Buckle Me Baby Coats. She explained the safety issues associated with traditional winter coats in car seats and the substantial demand for her innovative product. Barbara Corcoran was the first to make an offer, proposing $100,000 for a 20% equity stake. She emphasized her ability to open doors and help with marketing.
However, she also mentioned that she would require a royalty.Next, Daymond John made an offer of $100,000 for a 20% equity stake. He expressed his desire to work closely with Dahlia to build the business and eventually help her achieve her goal of selling the company. Lori Greiner also recognized the potential in the business but declined to make an offer, stating that Dahlia didn’t need a partner and could hire someone for marketing.
Mark Cuban made an offer of $100,000 for 20% equity but mentioned that he had successfully built another apparel company and could replicate that success with Buckle Me Baby Coats.In the end, Dahlia accepted Daymond John’s offer of $100,000 for a 20% equity stake, impressed by his experience and expertise in building businesses. The deal also included a 30% stake in any licensing agreements Daymond could secure for the product. The negotiations concluded with a successful partnership that would enable Buckle Me Baby Coats to grow and reach more families.
