Coverplay
DEAL
EPISODE SUMMARY
🕓 Air Date: August 30, 2009
Asking For:
$350,000 for 15%
Investor:
Barbara Corcoran
Deal:
$350,000 for 40%
PRODUCT SUMMARY
Coverplay provides slipcovers for play yards, offering protection from messes such as spills, baby food, and other substances, making them suitable for use in homes, hotels, daycare centers, and cruise ships.
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Background Story
Coverplay was founded by Amy Feldman and Allison Costa, who identified a pressing need in the market for their innovative product. Their story begins with a shared frustration over the unhygienic conditions of play yards commonly used in homes, hotels, daycare centers, and cruise ships. Amy and Allison, likely parents themselves, recognized the challenges of maintaining cleanliness and sanitation in these environments, especially with young children. Drawing on their personal experiences and backgrounds, they embarked on a mission to develop a solution.
Amy and Allison brought complementary skills to the table: Amy likely leveraged her expertise in product development and marketing, while Allison possibly contributed knowledge in sales and distribution. Their combined efforts led to the creation of Coverplay, the first and only slipcover designed specifically for play yards. This product served as a protective barrier against spills, baby food, and other messes, providing peace of mind to parents and caregivers.
Their entrepreneurial journey culminated in a successful launch, with Coverplay gaining traction in retail outlets like Target and securing partnerships with major hotel distributors such as Marriott, Hilton, and Carnival Cruise Line. The founders’ commitment to addressing a genuine need in the market, coupled with their strategic approach to product development and distribution, positioned Coverplay for growth and success.
The Product
Coverplay offers a practical solution to a common problem faced by parents and caregivers: keeping play yards clean and hygienic. Their slipcover design is tailored to fit standard play yards, providing a protective barrier against spills, baby food, and other messes. The slipcovers are easy to install and remove, featuring a snug fit that ensures the play yard remains covered during use.
The benefits of Coverplay’s product are manifold. Firstly, it simplifies the process of cleaning and maintaining play yards, saving time and effort for busy parents. Secondly, it promotes a hygienic environment for infants and toddlers, reducing the risk of exposure to germs and bacteria. Additionally, the slipcovers add a touch of style and customization to the play yard, with various designs and patterns available to suit different preferences.
Coverplay slipcovers can be purchased online through the company’s website or in select retail stores, such as Target. The price typically ranges from $30 to $50, depending on the design and size of the play yard. With its affordable price point and practical benefits, Coverplay’s product has garnered positive reviews from customers and has become a trusted solution for families and businesses alike.
How It Went
The company’s position before Shark Tank
Coverplay has demonstrated solid performance since its inception, with a strong position in both retail and hospitality markets. The company has secured partnerships with major hotel chains such as Marriott, Hilton, Best Western, Wyndham, Royal Caribbean, and Carnival Cruise Line, allowing them to reach a wide audience of travelers and families. These partnerships have contributed to the company’s revenue growth and brand visibility. In the retail sector, Coverplay’s product is available in stores like Target, providing convenient access to consumers seeking innovative solutions for child care and hygiene.
The company’s customer base primarily consists of parents, caregivers, and businesses in the hospitality industry seeking to enhance the cleanliness and safety of their environments. Coverplay’s funding primarily comes from a combination of personal investments from the founders, Amy Feldman and Allison Costa, and revenue generated from sales. The company has managed to achieve $200,000 in sales since its launch, indicating a healthy revenue stream. Additionally, the founders may have secured additional capital through small business loans or strategic partnerships.
As for the company’s structure, Coverplay likely operates as a privately held corporation or LLC, with Amy and Allison serving as co-founders and possibly holding executive positions within the organization. The company may also employ a team of professionals in areas such as sales, marketing, product development, and customer service to support its operations and growth initiatives. Overall, Coverplay appears to be well-positioned for continued success in the childcare and hospitality sectors, with strong partnerships, a loyal customer base, and a focus on product innovation and market expansion.
The Negotiations:
During the negotiations on Shark Tank, Amy Feldman and Allison Costa of Coverplay faced a challenging decision as they navigated offers from multiple sharks. Initially seeking $350,000 for 15% equity, they received interest from Barbara Corcoran, who offered the full amount but at a higher equity stake of 40%. Daymond John countered with a larger investment of $350,000 but for a significant 65% ownership share. The negotiation took an unexpected turn when Robert Herjavec proposed a joint offer with Daymond, suggesting $450,000 for a 65% stake.
Barbara’s offer emphasized her experience and commitment to the business, while Daymond’s proposal included strategic support and financing for production. The negotiations reached a critical point when it was revealed that Coverplay’s patent was not yet part of the company, raising concerns among the sharks about the clarity of ownership and legal issues. In response, Barbara retracted her offer, followed by Daymond and Robert.
After a moment of uncertainty, Allison confirmed that the patent could be incorporated into the company, prompting Barbara to reenter the negotiation with a modified offer. She proposed a partnership with Kevin O’Leary, offering $350,000 for 51% ownership, with additional support from Robert when needed. Ultimately, Amy and Allison accepted Barbara’s offer, citing her genuine interest in their success and willingness to provide strategic guidance. Despite objections from other sharks, the founders believed Barbara’s offer provided the best path forward for Coverplay’s growth and development.
