Shed Defender Onesie For Dogs
DEAL
EPISODE SUMMARY
🕓 Air Date: October 14, 2018
Asking For:
$250,000 for 10%
Investor:
Lori Greiner
Deal:
$250,000 for 25%
PRODUCT SUMMARY
Shed Defender is a lightweight, breathable onesie for dogs that contains shed hair, reduces anxiety, and can replace the medical cone.
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Background Story
Tyson and Miles Walters, the founders of Shed Defender, hail from Orange County, California. Their entrepreneurial journey began with a shared passion for solving a common problem faced by dog owners worldwide – the relentless issue of dog hair. Tyson, in particular, experienced frustration with dog hair infiltrating his home and car. This annoyance served as the catalyst for the creation of Shed Defender. With a vision to alleviate the struggles of dog owners dealing with shedding, Tyson and Miles developed the Shed Defender, a unique solution to contain and manage dog hair.
The product, essentially a onesie for dogs, is crafted from a lightweight, eco-friendly, and breathable fabric. This innovative material not only addresses the shedding problem but also ensures the comfort and safety of the canine wearer. The Shed Defender allows dogs to shed naturally while keeping the hair confined within the suit. Tyson, the driving force behind the product, brought a deep understanding of the pain points dog owners face, and Miles, as a collaborator, played a crucial role in the development and marketing of Shed Defender. The product not only addresses the practical challenge of shedding but also provides additional benefits, such as reducing anxiety in dogs and serving as an alternative to the traditional medical cone.
The success of Shed Defender is rooted in the founders’ commitment to creating a product that resonates with dog owners, coupled with their strategic decision to incorporate customer feedback into the evolution of the product. The company’s headquarters in Orange County serves as the hub for their innovative venture, which has not only proven successful in the market but has also garnered interest and support from the Sharks on Shark Tank.
The Product
Shed Defender, an ingenious product developed by Tyson and Miles Walters, is a revolutionary onesie designed to address the persistent issue of dog shedding. Crafted from a lightweight, eco-friendly, and breathable fabric, the Shed Defender acts as a containment solution for dog hair. The onesie allows dogs to shed naturally while ensuring that the hair remains confined within the suit, sparing dog owners the hassle of constant cleanup.
Designed for situational use, the Shed Defender is versatile and can be employed in various settings, including the car, home, family and friends’ houses, or any space where leaving a trail of dog hair is undesirable. Beyond shedding prevention, the product has proven to have additional benefits, such as reducing anxiety in dogs and serving as a viable alternative to the traditional medical cone.
Shed Defender is available in nine different sizes to accommodate various dog breeds. The pricing ranges from $39.99 for the small size to $62.99 for the giant size. Customers can purchase the product directly from the Shed Defender website or through the popular online marketplace, Amazon. With its eco-friendly design, multiple applications, and veterinarian approval, Shed Defender offers dog owners a practical and comfortable solution to the challenges associated with dog shedding.
How It Went
The company’s position before Shark Tank
Shed Defender has demonstrated robust performance and a strong market position since its inception. With headquarters in Orange County, California, the company has rapidly gained traction in the pet industry. Their innovative product has generated impressive sales figures, boasting $1.2 million in revenue over the past 18 months. The founders, Tyson and Miles Walters, strategically sell their product through various channels, including their official website and the popular e-commerce platform, Amazon.
In terms of partnerships, Shed Defender recently entered the wholesale market, expanding its reach to a broader audience. The company’s decision to wholesale reflects a strategic move to penetrate big-box stores, a step aimed at further increasing their market presence. Shed Defender’s customer base is diverse, catering to the millions of dog owners globally facing the challenge of shedding. The product’s versatility, addressing both shedding prevention and anxiety reduction, has likely contributed to its widespread appeal. Funding for Shed Defender primarily comes from sales revenue, with the company achieving an impressive 80% profit margin.
The founders have not disclosed external funding sources or investment rounds, indicating a self-sustaining business model driven by strong product sales. The company’s financial health is underscored by its profitability, with a reported landing cost ranging from $6.23 for the small size to $13.20 for the giant size. Shed Defender’s financial success positions it well for future growth and expansion. The company’s structure and internal operations are not explicitly outlined in the transcript, but their ability to scale and enter new markets suggests a well-organized and adaptable business model. Overall, Shed Defender appears to be in a robust position with a solid foundation for continued success in the pet industry.
The Negotiations:
The negotiation process for Shed Defender on “Shark Tank” was dynamic and engaging, with multiple Sharks expressing keen interest in the innovative product. The founders, Tyson and Miles Walters, entered the Tank seeking $250,000 for a 10% equity stake in their company. Lori Greiner, Mark Cuban, and Kevin O’Leary were the Sharks who decided to make offers. Barbara Corcoran and Mark Cuban both opted out of the deal.
Cuban expressed concern about the risk associated with expanding into retail, emphasizing the importance of focusing on what works before venturing into new territories. Corcoran echoed this sentiment, advising the founders to slow down and build on their current success. Lori Greiner and Kevin O’Leary engaged in a competitive bidding war for a stake in Shed Defender. Greiner was the first to offer $250,000 for a 33% equity share. Kevin O’Leary followed with a matching offer of $250,000 for the same equity percentage. However, Greiner’s enthusiasm for the product and her belief in its potential market success ultimately swayed the founders’ decision. They accepted Greiner’s offer of $250,000 for a 25% equity stake.
The negotiation showcased the Sharks’ recognition of Shed Defender’s unique value proposition and market potential. Greiner’s experience in retail and her presence on QVC were crucial factors that influenced the founders’ decision, as they believed she could significantly contribute to the company’s future success. The competitive offers and the ultimate deal with Lori Greiner marked a successful outcome for Shed Defender in the “Shark Tank” negotiation arena.
