HoodiePillow – Pillow with a Hood
DEAL
EPISODE SUMMARY
🕓 Air Date: February 8, 2013
Asking For:
$90,000 for 15%
Investor:
Robert Herjavec
Deal:
$90,000 for 20%
PRODUCT SUMMARY
Hoodie Pillow combines the comfort of a pillow with the convenience of a hoodie, offering relaxation and privacy in one cozy package.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Chris, previously known for the CitiKitty Cat Toilet Training Kit from Season 2, conceived the idea for HoodiePillow after bringing his triplet girls home from the hospital, realizing the need for relaxation amidst the chaos. Rebecca, one of the first people Chris approached with the idea, saw the potential in the product. Their experience with CitiKitty’s success instilled confidence in them to pursue HoodiePillow.
They launched the product with a soft launch on Facebook, garnering $60,000 in sales within eight weeks. Chris’s invention addresses the impracticality of hoodies when lying down or sleeping, offering a solution for casual comfort on the go.
The Product
HoodiePillow integrates the beloved hoodie with a pillowcase, providing users with a comfortable and convenient way to relax. Its design features an attached hoodie that eliminates discomfort by preventing pulling or overheating typically associated with traditional hoodies.
The adjustable drawstrings block out light and dampen sound, ensuring a peaceful environment for relaxation or sleep. Additionally, it includes a convenient pocket for storing essentials like phones or TV remotes, and a porthole keeps headphones tangle-free. The product is ideal for various settings, including dorm rooms, flights, or simply lounging at home. It retails for $20, with a production cost of $5 per unit.
HoodiePillow also offers a travel pillow version specifically tailored for airline passengers, providing comfort and privacy during flights. This version retails for $15, with a production cost of less than $3 per unit.
The company has utility and design patents, ensuring uniqueness and protecting against imitation. HoodiePillow’s market potential extends beyond individual consumers, with opportunities for partnerships with airlines and retailers to cater to a broader audience.
How It Went
The company’s position before Shark Tank
HoodiePillow has demonstrated rapid growth since its launch, selling over 3,000 units within eight weeks and securing media coverage on platforms like “Good Morning America” and “Today Show.” The company’s success is attributed to its innovative product design, effective marketing strategies, and strong customer demand. With sales projections reaching $5 million, HoodiePillow has proven its market viability and appeal to a wide range of consumers, including college students and travelers.
Partnerships with established brands like Travelpro provide avenues for further expansion and distribution channels. The company’s profitability within the first few weeks of operation showcases its efficient business model and ability to generate revenue. While initial funding was secured through personal investments and sales revenue, the $90,000 investment sought on Shark Tank will fuel marketing initiatives and production scale-up to meet growing demand. HoodiePillow’s structured approach to growth and strategic partnerships position it for continued success in the competitive market of comfort and lifestyle products.
The Negotiations:
The negotiation started with an ask for $90,000 for 15%, leading to multiple offers from the Sharks. Barbara Corcoran offered $90,000 for 33 1/3%, while Daymond John and Robert Herjavec proposed $90,000 for 40% with additional royalties. Despite offers from Barbara and Daymond, the founders ultimately accepted Robert’s offer of $90,000 for 20%, securing a partnership with him. Robert’s understanding of the product’s potential and willingness to meet the founders’ desired equity made his offer the most appealing.
