Next into the “West Texas Investors Club” Clubhouse are two Utah natives, mothers Betsy Mikesell and Angie White, of Beddy’s. They are seeking $200,000 and an open line of credit for 10 percent equity.
Key Takeaways: Beddy’s on West Texas Investors Club
- Product: One-piece zippered bedding for kids.
- Investment Ask: $200,000 and a line of credit for 10% equity.
- Shark Response: Secured a deal with the West Texas Investors Club for $500,000 and 25% equity.
- Latest Update: Beddy’s continues to innovate in the bedding market, with new designs and an expanded product line.
What Is the Story of Beddy’s Zip-up Bedding?
The one-piece bedding unit zips on both sides, like a sleeping bag, and makes it easy for kids to make their bed. Rooster McConaughey and Butch Gilliam want to quickly put that claim to the test though and McConaughey invites his granddaughters to test out the “10-second bed making.” Their bedding passes the test.
The girl’s style bedding costs $259 and they make $65 off of each. Most of their sales come from their website but getting into retail isn’t feasible at the moment because of the high cost. They hope to lower the cost with an investment so they can order larger quantities.
Social reactions from Beddy’s appearance on “West Texas Investors Club”:
Momtrepreneurs comin' in hot #WestTexasInvestors
— Gil Prather (@GilPratherWTIC) June 8, 2016
"The worst criminals on this planet don't wear masks; they wear suits." Gotta love Butch and Rooster's insights. Deep! #WestTexasInvestors
— Tally M. Wiener (@Tally_Margaret) June 8, 2016
And with the chug of a beer these entrepreneurs just sealed the deal! #WestTexasInvestors pic.twitter.com/rX7ljNlYqh
— West Texas Investors (@WTexasInvestors) June 8, 2016
They sold $1.8 million worth of Beddy’s last year, having bought themselves out of a royalty. Gilliam says that the worst criminals “don’t wear masks, they wear suits.”
They offer a $500,000 open line of credit and $200,000 for a third of their business. McConaughey and Gilliam drop the equity to 25 percent and the entrepreneurs counter $400,000 for 25 percent, which they reject, but are willing to stay at that equity point.
Gilliam acknowledges their need for some help, but they won’t drop their offer any further. After applying some pressure, they drop to 18 percent equity and their offer is accepted.
What did you think of Beddy’s?