SlumberPod – Sleep Solution for Babies
DEAL
EPISODE SUMMARY
🕓 Air Date: January 5, 2020
Asking For:
$400,000 for 20%
Investor:
Barbara Corcoran
Deal:
$400,000 for 20%
PRODUCT SUMMARY
SlumberPod is a portable privacy pod designed to provide babies with a dark and private sleep environment while traveling.
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Background Story
SlumberPod was founded by Katy and her mom, Lou, based in Atlanta, Georgia. The idea was born out of a challenging experience during the Christmas holidays when Lou’s oldest daughter was a year and a half old. Staying in a room with inadequate window treatments and struggling with her child waking up at night, the founders realized the need for a solution to ensure better sleep for both parents and children during travels.
Lou, a resilient individual, pursued higher education as a single mom, earning her master’s degree at the age of 50. With a background working for Fortune 500 and small software companies, she brought a wealth of experience to the table. Katy, the oldest of Lou’s six children, had a career in the automotive space and was a mom to three kids, including 3-year-old twins.
The Product
SlumberPod is a portable privacy pod weighing less than 6 pounds, easily fitting into carry-on luggage. It acts as a tent that can be assembled over a travel crib, creating a dark and private sleep environment for babies.
Made of breathable fabric, the pod ensures the safety and comfort of the child while addressing the common need for total darkness during sleep. Setting up the SlumberPod is as simple as assembling a camping tent, taking approximately two minutes to break down and 30 seconds to pack it back into the bag.
It’s versatile enough to accommodate a toddler cot or a makeshift pallet on the floor if a Pack ‘n Play is not available. Importantly, the product isn’t designed to confine the child but rather to provide an optimal sleep environment.
Priced at $149.99, with a landed cost of $56, the SlumberPod aims to offer an affordable and effective solution for parents dealing with sleep challenges while traveling.
How It Went
The company’s position before Shark Tank
SlumberPod launched in August, and within the same year, they achieved sales of $556,000, showcasing a robust start for the company. The founders emphasized that their profitability was reached in February, and they managed to do so without accumulating any debt. The company’s success was attributed to word-of-mouth marketing from satisfied moms who shared their positive experiences on platforms like Instagram.
Having ventured into limited advertising, SlumberPod’s impressive sales indicated strong market demand for their product. The founders highlighted their lack of debt and profitability as key indicators of the company’s financial health. Both Lou and Katy brought diverse backgrounds to the table, contributing to the success of SlumberPod.
The Negotiations:
In the Tank, the negotiation primarily involved Barbara and Kevin offering deals. Barbara ultimately secured a deal for $400,000 in exchange for 25% of the company. However, Kevin presented a different proposition, offering a loan of $400,000 at 9% for three years with 7% equity for the loan. The entrepreneurs chose Barbara’s offer, expressing their preference for a partner to help them scale and build relationships.
Despite Kevin’s competitive offer, the entrepreneurs emphasized that their goal was not just about the money but finding the right partner to assist in the growth of their business. In the end, Barbara’s offer aligned with their vision for the company, and they happily accepted, marking a successful deal on “Shark Tank.”
