Freshly Picked – Baby Moccasins
DEAL
EPISODE SUMMARY
🕓 Air Date: January 24, 2014
Asking For:
$150,000 for 10%
Investor:
Daymond John
Deal:
$150,000 for 25%
PRODUCT SUMMARY
Freshly Picked offers stylish and functional baby moccasins, designed with soft soles to promote balance and flexibility for babies learning to walk.
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Background Story
Freshly Picked, headquartered in Provo, Utah, was founded by Susan Petersen, a mom with a keen eye for stylish yet functional baby products. Susan’s journey began when she struggled to find suitable footwear for her son, Gus. Disappointed by the lack of options in the market, Susan decided to take matters into her own hands. Armed with a bag of scrap leather purchased from a garage sale and a desire to provide the best for her child, Susan taught herself how to sew and embarked on a mission to create the perfect pair of baby moccasins.
Through trial and error, Susan experimented with various designs until she landed on one that not only met her standards but exceeded them. The result was Freshly Picked, a brand synonymous with quality and innovation in the baby footwear industry. What started as a passion project in Susan’s home has since blossomed into a thriving business, with Freshly Picked moccasins gaining popularity among parents nationwide.
Susan’s background in crafting and her personal experience as a mother fueled her drive to create a product that not only looked adorable but also provided essential support for babies learning to walk. Her commitment to excellence and dedication to her vision have propelled Freshly Picked to success, earning the brand a reputation for premium craftsmanship and exceptional comfort. Today, Freshly Picked continues to grow under Susan’s leadership, offering a range of stylish and functional baby products while remaining true to its roots of quality and innovation.
The Product
Freshly Picked specializes in baby moccasins, meticulously crafted from high-quality leather to provide infants with both style and comfort. The moccasins feature soft soles that allow babies to flex their toes with every step, promoting natural foot movement and balance essential for early development. Designed with elastic around the ankle, the moccasins stay securely on the baby’s feet, preventing them from slipping off during playtime or outings.
These stylish yet functional moccasins are suitable for various occasions, from everyday wear to special outings and photo shoots. Parents appreciate the versatility and durability of Freshly Picked moccasins, knowing that their little ones are comfortable and stylish wherever they go. Freshly Picked moccasins can be conveniently purchased through the company’s e-commerce site, providing easy access for parents seeking premium-quality footwear for their babies.
Priced at $60 retail, the moccasins offer excellent value for money, given their superior craftsmanship and materials. With a wide range of colors and designs to choose from, parents can find the perfect pair to complement their baby’s wardrobe while ensuring maximum comfort and style. As Freshly Picked continues to expand its product line, it remains committed to providing innovative and fashionable baby essentials that meet the highest standards of quality and comfort.
How It Went
The company’s position before Shark Tank
Freshly Picked has demonstrated strong performance and growth, establishing itself as a leader in the baby footwear market. With headquarters in Provo, Utah, the company has positioned itself as a go-to destination for stylish and functional baby moccasins. Freshly Picked has cultivated a loyal customer base comprising parents who prioritize quality and style for their little ones.
The company’s success can be attributed to its strategic partnerships and distribution channels. Freshly Picked collaborates with various wholesalers and retailers, including boutique stores and online platforms, to reach a wider audience. By leveraging these partnerships, Freshly Picked has expanded its market presence and increased accessibility to its products. In terms of funding, Freshly Picked initially relied on bootstrap financing, with founder Susan Petersen investing her own resources to kickstart the business. As the company grew, it secured external investment to fuel expansion and meet growing demand.
Profits and losses are carefully monitored, with a focus on maximizing revenue while maintaining operational efficiency. The company’s financial health is reflected in its consistent profitability and strong sales figures, with revenues reaching $500,000 in recent years. Freshly Picked’s organizational structure is designed to support its growth trajectory, with dedicated teams overseeing areas such as design, manufacturing, sales, and marketing. The company prioritizes innovation and customer satisfaction, continually refining its product offerings to meet evolving consumer preferences.
The Negotiations:
During the negotiations on Shark Tank, Susan Petersen of Freshly Picked showcased her impressive business acumen and passion for her product. She initially sought $150,000 for 10% equity in her company. The sharks were immediately intrigued by Freshly Picked’s success, with $500,000 in sales and a $120,000 profit margin. Several sharks expressed interest in partnering with Susan, including Kevin O’Leary, who offered $75,000 for a royalty agreement.
However, Susan ultimately declined Kevin’s offer, seeking a more traditional equity partnership. Daymond John emerged as the frontrunner, offering the full $150,000 investment but for a higher equity stake of 25%. Despite Daymond’s compelling offer, Kevin attempted to intervene, proposing a creative royalty deal instead. However, Susan remained steadfast in her preference for an equity partnership. Mark Cuban and Lori Greiner opted out of the negotiations, recognizing that they might not bring the most value to Freshly Picked.
Ultimately, Susan accepted Daymond’s offer, valuing Freshly Picked at $600,000. While the equity stake was higher than initially intended, Susan saw the potential for growth and the opportunity to benefit from Daymond’s expertise in manufacturing and retail. The negotiation process showcased Susan’s resilience and determination as an entrepreneur, culminating in a mutually beneficial partnership with Daymond John.
