Happy Feet
DEAL
EPISODE SUMMARY
🕓 Air Date: April 10, 2014
Asking For:
$375,000 for 15%
Investor:
Robert Herjavec
Deal:
$375,000 for 25%
PRODUCT SUMMARY
Happy Feet offers playful, comfortable slippers in various designs and colors, including collegiate-licensed and animal styles.
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Background Story
Happy Feet, founded by Pat Yates, originates from Louisville, Kentucky, where Pat’s entrepreneurial journey began. With a background in sales and a passion for innovative products, Pat identified an opportunity to revolutionize the traditional slipper market. Inspired by his love for his hometown team, the Louisville Cardinals, Pat envisioned creating slippers that not only provided comfort but also showcased personality and style. The idea for Happy Feet stemmed from Pat’s desire to offer more than just functional footwear.
He wanted to inject fun and playfulness into the everyday item, making it a statement piece that people of all ages would enjoy wearing. Drawing from his entrepreneurial spirit and determination, Pat set out to bring his vision to life. Through meticulous research and product development, Pat crafted Happy Feet slippers to be both comfortable and visually appealing. The incorporation of vibrant colors, collegiate-licensed designs, and playful animal prints reflects Pat’s commitment to offering a diverse range of options to suit various preferences.
Driven by his passion for creating unique and high-quality products, Pat embarked on the journey of building Happy Feet from the ground up. Located in the heart of Louisville, Kentucky, Happy Feet embodies Pat’s dedication to his hometown while also striving to make a global impact with its innovative footwear offerings. As the founder and driving force behind Happy Feet, Pat continues to pursue his vision of providing comfort, style, and joy to customers worldwide through his inventive slipper designs.
The Product
Happy Feet offers a delightful range of slippers designed to provide unparalleled comfort and style. Crafted with a 1-inch foam rubber bottom, these slippers offer a plush feel, akin to walking on pillows. Available in a wide array of designs, including collegiate-licensed styles featuring beloved sports teams like the Louisville Cardinals, as well as playful animal prints such as leopard, zebra, lion, tiger, giraffe, and even shark, Happy Feet caters to diverse tastes and preferences.
The slippers are suitable for individuals of all ages, making them a versatile choice for lounging at home or adding a touch of fun to everyday outfits. Their vibrant colors and eye-catching designs not only make them a fashion statement but also bring joy to the wearer.
Happy Feet slippers can be purchased online through the company’s website, where customers can browse the extensive collection and select their preferred styles. With prices ranging from $24.99 to $29.99, these slippers offer excellent value for their quality and comfort. Additionally, the website may feature special promotions or discounts, further enhancing the appeal of these stylish and cozy footwear options.
How It Went
The company’s position before Shark Tank
Happy Feet has demonstrated robust performance in the slipper market, achieving impressive sales figures and profitability over the past few years. With revenues totaling $6.5 million in the last three years, the company has established itself as a key player in the industry. Its focus on online sales has been particularly successful, with high-margin transactions contributing significantly to overall profitability. However, challenges such as seasonal fluctuations and the cost of free shipping during peak periods have impacted profitability.
To enhance brand visibility and attract customers, Happy Feet has forged partnerships with social media influencers like Snooki, leveraging their reach to expand its customer base. Additionally, the company has ventured into licensing agreements with popular reality TV personalities, further increasing its exposure and appeal to consumers. Happy Feet primarily sells its products online through its website, catering to a diverse customer base seeking stylish and comfortable footwear options. While the company has explored opportunities to expand into major retail stores, challenges related to the size of the product have hindered progress in this area.
In terms of funding, Happy Feet has available capital of $200,000 and has sought additional investment to support expansion initiatives. The company’s profitability has been solid, with approximately $600,000 in profit generated last year. However, concerns have been raised about the allocation of funds, particularly with regard to marketing expenses and the impact on overall profitability. The company’s leadership, spearheaded by founder Pat Yates, remains committed to driving growth and innovation in the slipper market, leveraging its strong brand identity and customer loyalty to capitalize on emerging opportunities and navigate challenges in the competitive footwear industry.
The Negotiations:
During the negotiations on Shark Tank, Pat Yates presented Happy Feet’s unique and fun slippers to the Sharks, seeking $375,000 for a 15% equity stake in his company. His pitch highlighted the product’s appeal as a cozy and playful footwear option that could appeal to a wide range of customers. The Sharks expressed interest in the product, noting its potential in the market.
Robert Herjavec was particularly intrigued by Happy Feet’s existing distribution network and strong sales performance. He made an offer of $375,000 for a 25% equity stake in the company. Pat Yates recognized Robert’s experience and connections in the retail industry as valuable assets that could help Happy Feet expand its market reach. After some negotiation and consideration of other offers from the Sharks, Pat ultimately accepted Robert’s offer.
The deal secured Robert’s partnership and mentorship for Happy Feet, positioning the company for further growth and success. Pat’s decision to partner with Robert indicated his confidence in Robert’s ability to help scale the business and navigate the competitive market. The negotiations were amicable, with Robert demonstrating enthusiasm for Happy Feet’s product and potential. The successful deal marked a positive outcome for both Pat and Robert, setting the stage for future collaboration and innovation within the company.
