The Comfy Original – Wearable Blanket
DEAL
EPISODE SUMMARY
🕓 Air Date: December 3, 2017
Asking For:
$50,000 for 20%
Investor:
Barbara Corcoran
Deal:
$50,000 for 30%
PRODUCT SUMMARY
The Comfy is a combination of a blanket and a sweatshirt, designed for ultimate comfort and warmth, featuring a reversible design with a large pocket and an oversized hood.
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Background Story
The founders, Brian and Michael Special, known as The Special Brothers, came up with the idea for The Comfy during a difficult time. Brian, going through a divorce, found solace in the comfort of a sweatshirt, noticing his nephew’s comfort on the couch. Inspired, they decided to create a product that combines the warmth of a blanket with the convenience of a sweatshirt. Hailing from Phoenix, they invented The Comfy in the heat and aimed to provide a solution for staying warm and cozy during cold weather.
The Product
The Comfy is a one-size-fits-all blanket-sweatshirt made of soft microfiber on the outside and luxurious sherpa on the inside. It features a large pocket for a phone or tablet, an oversized hood that doubles as a pillow and is reversible for style options.
The founders emphasize its versatility, suitable for lounging at home or staying warm on the go. With a retail price of $39.99 and a production cost of $17, The Comfy is positioned as an affordable and comfortable solution for a wide range of customers. The company plans to sell it online and has a production capacity of about 100,000 units.
How It Went
The company’s position before Shark Tank
The Original Comfy is a new product, with less than six months in development, and has not made any sales at the time of the pitch. The founders express confidence in their product’s potential virality and plan to sell it online. They have secured the necessary funding for initial production and inventory. The retail price is set at $39.99, with a production cost of $17 per unit, providing a margin for potential customer acquisition costs. The company structure is not fully established, with a website in development and plans for an online sales strategy.
The Negotiations:
The founders entered the Tank seeking $50,000 for 20% equity. After pitching the product, Mark Cuban and Kevin O’Leary expressed concerns about the product’s uniqueness and potential competition with similar products like the Snuggie. Mark Cuban, despite liking the product, felt that the company was not ready for investment due to uncertainties in customer acquisition costs. Kevin O’Leary jokingly referred to it as a “fat tire” instead of a flier.
Barbara Corcoran made the only offer, proposing $50,000 for 30%, but Robert Herjavec, also interested, joined the negotiation and made an offer of $50,000 for 50%. The Special Brothers countered Barbara’s offer with a proposal of $50,000 for 25% but she declined. Ultimately, the Special Brothers accepted the 30% stake and chose to partner with Barbara Corcoran for their venture into the Comfy business. The negotiation showcased the founders’ confidence, the uniqueness of their product, and their ability to secure a deal despite initial doubts from the Sharks.
