Twin Z Pillow
DEAL
EPISODE SUMMARY
🕓 Air Date: March 6, 2015
Asking For:
$75,000 for 10%
Investor:
Lori Greiner
Deal:
$75,000 for 15%
PRODUCT SUMMARY
Twin Z Pillow is specifically designed for mothers of multiples, allowing them to bottle-feed or breast-feed two babies simultaneously, reducing feeding times and providing back support.
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Background Story
Michelle and Jason, the founders of Twin Z Pillow, embarked on their entrepreneurial journey after facing unexpected challenges in their professional lives. Formerly employed in pharmaceutical sales, the couple found themselves jobless after both being laid off from their corporate positions. Struggling with financial instability and limited resources, they were determined to turn their circumstances around. The inspiration for Twin Z Pillow came during a particularly challenging time for Michelle.
As a mother of twins, she experienced the demanding and time-consuming nature of feeding two infants. Frustrated by the lack of comfortable and practical solutions available in the market, Michelle decided to take matters into her own hands. Using her late mother’s 30-year-old sewing machine, she began crafting the first prototype of what would become the Twin Z Pillow. The innovative pillow aimed to address the specific needs of mothers of multiples, providing a solution to the time-consuming process of feeding two babies simultaneously.
Michelle’s personal struggle fueled the creation of a product that not only facilitated dual feeding but also incorporated a unique back support system, alleviating the common issues of neck and back pain for mothers. Situated in the United States, Twin Z Pillow’s manufacturing operations are spread across Georgia and Massachusetts. The company’s commitment to producing the pillows domestically reflects not only a dedication to quality but also a desire to contribute to the local economy.
The founding story of Twin Z Pillow is a testament to the couple’s resilience and determination. Despite personal hardships, including losses, health challenges, and financial difficulties, Michelle and Jason transformed their adversity into an opportunity for innovation. The success of Twin Z Pillow not only lies in its practical design but also in the heartfelt journey of its founders, who turned a challenging period in their lives into a thriving business.
The Product
The Twin Z Pillow is a revolutionary product designed specifically for mothers of multiples, offering a comfortable and efficient solution to the challenges of feeding two babies simultaneously. The pillow’s primary function is to facilitate both bottle-feeding and breast-feeding of twins, effectively cutting feeding times in half.
This is achieved through a clever design that allows mothers to comfortably position and support both infants, minimizing the physical strain associated with simultaneous feeding. Key features of the Twin Z Pillow include a unique back support system, distinguishing it from other pillows on the market.
This feature ensures that mothers maintain proper posture during feeding, reducing the risk of neck and back pain commonly associated with caring for multiple infants. The versatility of the product extends beyond feeding, as pregnant moms can use it as a supportive chair, providing relief from back pain during pregnancy.
Manufactured entirely in the U.S., the pillows are made in Georgia, and the covers are produced in Massachusetts, reflecting a commitment to quality and local production. The Twin Z Pillow’s success lies not only in its innovative design but also in its ability to enhance the daily lives of mothers of multiples by offering a practical, ergonomic, and time-saving solution to the challenges they face.
How It Went
The company’s position before Shark Tank
Twin Z Pillow has demonstrated robust financial performance, showcasing a positive trajectory in its relatively short period of operation. In the current fiscal year, the company is on track to achieve $510,000 in sales, with year-to-date figures already reaching $300,000. This impressive growth aligns with their projection to generate between $1.2 to $1.5 million in sales for the upcoming year, emphasizing the company’s ability to double its revenue every nine months.
Twin Z Pillow has garnered interest from buybuy BABY, a significant retailer, indicating a potential expansion into mainstream retail markets. The company’s decision to manufacture its pillows entirely in the U.S., with operations in Georgia and Massachusetts, not only speaks to a commitment to quality but also supports local economies. The funding structure of Twin Z Pillow is not explicitly outlined, but given the founders’ background, it’s likely that initial funding was self-funded or sourced through personal networks. The company’s financial health is underscored by its ability to navigate the challenging retail landscape and achieve substantial sales figures within a relatively short period.
Their success in securing a deal with Lori Greiner on Shark Tank indicates a commitment to strategic partnerships that can fuel further growth and development. The founders’ decision to accept Lori’s offer implies a shared vision and confidence in her ability to contribute significantly to the company’s success. As Twin Z Pillow moves forward, the strategic alignment with buybuy BABY and the support from Lori Greiner position the company for continued expansion and success in the market.
The Negotiations:
The negotiations for Twin Z Pillow on Shark Tank were dynamic and involved multiple sharks making compelling offers. Michelle and Jason entered the tank seeking $75,000 in exchange for a 10% equity stake in their company. Lori Greiner and Barbara Corcoran were the first to extend an offer, proposing $75,000 for a 20% equity stake, emphasizing the potential of reaching retail markets. Kevin O’Leary and Robert Herjavec jointly offered $150,000 against a $10 royalty per unit until they recouped $225,000, with a 2.5% equity stake.
Lori and Barbara matched each other’s offer, creating a competitive scenario. In response, Kevin and Robert adjusted their offer, reducing the royalty to $7.50 and maintaining the 2.5% equity stake. Michelle and Jason then initiated a counteroffer, asking both Lori and Barbara to come in at 20%. The negotiations took an unexpected turn when Lori suggested a joint offer, proposing $75,000 each for a combined 20% equity stake. This proposition intrigued Michelle and Jason, leading to a brief discussion between the sharks.
Ultimately, Michelle and Jason agreed to a deal with Lori Greiner, accepting $75,000 for a 15% equity stake. The decision was influenced by Lori’s passion and commitment to growing the company, and her strategic insights into expanding the product’s presence in the retail market. The negotiations showcased the entrepreneurs’ adeptness in navigating competing offers and their ultimate choice in aligning with a shark who shared their vision for the future success of Twin Z Pillow.
