Swoveralls Sweat Pants + Overalls
NO DEAL
EPISODE SUMMARY
🕓 Air Date: April 21, 2019
Asking For:
$150,000 for 15%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Swoveralls combines the functionality of overalls with the comfort of sweatpants, made from sustainably sourced organic cotton, featuring adjustable straps and a zippered front pocket.
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Background Story
Kyle Bergman, the mastermind behind Swoveralls, hails from the New York City. His journey into the world of innovative apparel began with a keen observation of a universal desire for comfort in daily wear. Recognizing the shared appreciation for both functionality and comfort, Bergman conceptualized a product that seamlessly blended the practicality of overalls with the unparalleled comfort of sweatpants. Motivated by the belief that people are at their best when they feel comfortable, whether at home, during travel, or in leisurely pursuits, Bergman embarked on the mission to create Swoveralls.
The product, combining 50% overalls’ functionality with 50% sweatpants’ comfort, reflects his understanding of contemporary fashion trends and the evolving preferences of consumers. Swoveralls are crafted from sustainably sourced organic cotton, showcasing Bergman’s commitment to ethical and eco-friendly production. The incorporation of adjustable straps allows for a personalized fit, while a strategically placed zippered front pocket enhances functionality.
The founder’s dedication to providing a cozy yet stylish option for diverse settings, from stadium outings to casual home activities, is evident in the wide variety of colors and patterns available. The inception of Swoveralls reflects Bergman’s ability to blend practicality, sustainability, and comfort in response to the evolving demands of the modern consumer. His background, fused with a keen understanding of market needs, has culminated in the creation of a unique product that aims to redefine the boundaries of contemporary fashion.
The Product
Swoveralls, the brainchild of Kyle Bergman, is a revolutionary garment that seamlessly combines the functionality of overalls with the unbeatable comfort of sweatpants. Crafted from sustainably sourced organic cotton, these versatile garments offer a perfect blend of style, comfort, and practicality.
Featuring adjustable straps, Swoveralls ensure a personalized fit for every wearer, allowing them to strike the ideal balance between fashion and functionality. The inclusion of a functional zippered front pocket enhances convenience, providing a secure space for valuables. Available in a diverse array of colors and patterns, Swoveralls cater to a wide range of preferences, making them suitable for various occasions – from stadium events to casual lounging at home.
Priced at $95, Swoveralls are accessible through direct-to-consumer channels and Amazon, providing a convenient and straightforward purchasing process for customers. The product’s appeal lies not only in its innovative design but also in its commitment to sustainability, reflecting the growing consumer demand for eco-friendly fashion options. Whether worn for travel, leisure, or daily activities, Swoveralls offer a unique and stylish solution, setting a new standard for comfortable and functional apparel in the modern wardrobe.
How It Went
The company’s position before Shark Tank
Swoveralls, in its initial 12 months of operation, has demonstrated promising performance and garnered notable attention in the market. Launched in September, the company, under the leadership of founder Kyle Bergman, has achieved over $230,000 in sales. The primary sales channels have been direct-to-consumer and Amazon, showcasing the brand’s ability to resonate with individual buyers. The company successfully conducted a Kickstarter campaign in July, raising $75,000. This strategic move not only injected additional capital but also allowed Bergman to gauge demand for different colors and sizes, providing valuable insights into consumer preferences.
However, the company faces challenges related to inventory management, a common concern in the apparel business. Swoveralls’ current structure revolves around direct-to-consumer sales and the Amazon platform. The founder expressed a need for additional funding during the “Shark Tank” pitch, highlighting plans to scale production and diversify the product mix. The desire to tap into niche markets, including plus-size, youth, infant sizes, and the college market, reflects a strategic vision for expansion.
Despite the successes, concerns were raised by the Sharks during negotiations, particularly regarding the scalability of the business model and the potential challenges associated with managing a broad range of SKUs. The Sharks ultimately opted not to invest, citing reservations about the company’s long-term profitability and scalability. The decision not to secure a deal on the show places the onus on Swoveralls to navigate these challenges independently and continue building momentum in the ever-evolving fashion industry.
The Negotiations:
The negotiations for Swoveralls on “Shark Tank” involved a detailed exploration of the product, its market potential, and the founder’s plans for scaling the business. Kyle Bergman entered the Tank seeking a $150,000 investment in exchange for a 15% equity stake in Swoveralls. The Sharks, however, expressed concerns about the scalability of the business and the potential challenges associated with managing a diverse range of SKUs. Mark Cuban and Daymond John emphasized the importance of focusing on a single, widely appealing product, drawing parallels to successful ventures like the Comfy brand. Barbara Corcoran bowed out early due to concerns about the inventory risks associated with the apparel business.
Bergman responded to the Sharks’ concerns by outlining plans to use the investment for scaling production, diversifying the product mix, and tapping into niche markets such as plus-size, youth, infant sizes, and the college market. Despite his efforts to address the concerns and showcase the current success of the business, the Sharks, one by one, decided not to invest. Mark Cuban cited challenges related to inventory and the narrow market appeal, while Kevin O’Leary expressed skepticism about the potential return on investment.
Ultimately, none of the Sharks made an offer, and Bergman left the Tank without securing a deal. While disappointed, he expressed confidence in Swoveralls’ trajectory and future success, highlighting the $250,000 in sweatpant overall sales within the last 12 months. The negotiations underscored the challenges and skepticism associated with the apparel business and the importance of a focused and scalable business model in the eyes of the Sharks.
