CordaRoy’s Bean Bag Bed
DEAL
EPISODE SUMMARY
🕓 Air Date: March 8, 2013
Asking For:
$200,000 for 20%
Investor:
Lori Greiner
Deal:
$200,000 for 58%
PRODUCT SUMMARY
CordaRoys offers a beanbag chair that converts into a bed, providing comfort and versatility.
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Background Story
Byron Young, the founder of CordaRoy’s, conceived the idea out of a need for comfortable and multi-functional furniture. He aimed to create a product that maximized comfort and space utilization, drawing inspiration from his own experiences. With a background in manufacturing and entrepreneurship, Byron established CordaRoy’s and relentlessly pursued his vision to revolutionize the beanbag chair industry.Â
The founder of CordaRoy’s, introduced his innovative product on Shark Tank seeking investment to expand his business. Having started the venture in 2001, Byron had spent years refining his product, believing in its potential to revolutionize comfort furniture. His inspiration stemmed from the desire to create a seating solution that was not only comfortable but also versatile, catering to the evolving needs of modern living spaces.
The Product
CordaRoy’s beanbags boast unparalleled comfort, thanks to their super-soft foam that never goes flat, ensuring a luxurious seating experience. What sets CordaRoy’s apart is its innovative design that allows it to transform effortlessly into a bed, providing a convenient sleeping solution for guests or cozy lounging for everyday use.
Constructed with quality materials, including shredded polyfill and washable covers, CordaRoy’s beanbags are durable and easy to maintain. The versatility of the product makes it suitable for various settings, from homes and apartments to dormitories, appealing to a wide range of consumers.
Available in different sizes, from full to king, CordaRoy’s offers options to accommodate individual preferences and space requirements. With its utility patent and proven track record of successful enforcement against larger competitors, CordaRoy’s assures customers of its commitment to quality and innovation.
Purchasing CordaRoy’s is convenient through their website, retail outlets, and television shopping platforms like QVC. Pricing is competitive, offering value for money considering the product’s superior comfort and functionality. Additionally, CordaRoy’s maintains margins that attract both wholesale and retail buyers, ensuring sustainable growth and profitability.
How It Went
The company’s position before Shark Tank
CordaRoy’s has positioned itself as a leading player in the comfort furniture market, with a strong emphasis on quality, innovation, and customer satisfaction. Partnering with key retailers and leveraging television shopping platforms has enabled CordaRoy’s to reach a broad audience, driving sales and brand recognition.
The company’s strategic location in the United States allows for efficient distribution and access to manufacturing resources, ensuring timely delivery and product consistency. CordaRoy’s has cultivated relationships with wholesalers and retailers, establishing a reliable supply chain that supports its growth objectives.
Financially, CordaRoy’s has demonstrated steady revenue growth, with sales exceeding $1.4 million annually. While profitability has been constrained by operational costs and investments in marketing and expansion, CordaRoy’s remains optimistic about its long-term prospects. Funding for CordaRoy’s has primarily come from personal investments and revenue reinvestment, reflecting the founder’s commitment to the business’s success.
However, the recent investment from Lori and Mark provides the capital needed to accelerate growth and scale operations. The company’s organizational structure is streamlined, with a focus on agility and responsiveness to market dynamics. CordaRoy’s’ dedicated team is comprised of experienced professionals in manufacturing, sales, and marketing, aligning their efforts toward achieving the company’s objectives.
The Negotiations:
Byron Young entered the negotiation seeking $200,000 for a 20% stake in CordaRoy’s. Lori and Robert were intrigued by the product. Robert Herjavec, impressed by Byron’s pitch and the product’s potential, made a separate offer. He proposed investing $200,000 for a 40% stake in the company. As the negotiation progressed, Lori expressed her enthusiasm for the product and its potential market reach. She countered with a similar offer, $200,000, but for a slightly lower equity share, at 58%.
This offer aimed to provide Byron with the necessary capital infusion while ensuring a reasonable degree of control over his company’s direction. Byron deliberated, recognizing Lori’s expertise and network as valuable assets for CordaRoy’s’ growth. Byron faced a critical decision between Lori and Robert’s offers. Lori emphasized her commitment to CordaRoy’s’ success, citing her track record and dedication to her investments.
Robert, on the other hand, highlighted his vision for CordaRoy’s and the benefits of having him as a partner. After careful consideration, Byron accepted Lori’s offer of $200,000 for 58% of the company, recognizing the value of their combined expertise and resources. The negotiation concluded with mutual agreement and excitement for CordaRoy’s’ future prospects under its new partnership.
