If your feet have been needing some rest, you’re in luck! Pat Yate’s has created slippers that are extra cute and cushiony, sure to make everyone’s feet happy! Will he earn a deal on
Shark Tank Happy Feet Update
- Entrepreneurs: Pat Yates
- Business: Novelty slippers
- Ask: $375,000 in exchange for 15% equity
- Result: $375,000 in exchange for 25% equity
- Sharks: Robert Herjavec
Pat’s slippers are fun, detailed, and have a one-inch thick, high-density memory foam bottom. His Happy Feet slippers take the form of beloved animals, big sneaker shapes, or college sports styles. After Snooki, a popular reality-TV personality at the time, featured the product on her social media, the company’s sales skyrocketed.
As seen on ABC's "Shark Tank": If these slippers look familiar to you, maybe you caught our Shark Tank episode! Many of our animal slippers were shown, including penguin, turtle, giraffe, monkey, tiger, and of course the shark slippers!
The company made $6.5 million in the three years prior, bringing in $2.6 million within the previous year. All their sales took place online– either wholesale or direct-to-consumer! They cost Pat around $5 to make and retail for about $30. The company had $600,000 in profit, which Pat attributed to the seasonal nature of the product and frequent free-shipping promotions. After some more questions, he revealed that the company was paying Snooki 12% to promote their products.
Barbara Corcoran was the first shark to go out, saying she feared Pat’s novelty footwear had already peaked. Robert Herjavec told Robert he didn’t think he was capable of bringing anything special to the company, so he was out next. Mark Cuban was out a few minutes later, saying it wasn’t for him.
Kevin O’Leary offered Pat $375,000 in exchange for a $3 royalty per unit sold until his investment was paid off, with a royalty of $1.50 thereafter, in addition to 5% equity. Lori Greiner liked Kevin’s offer and she partnered with him to split the deal, raising the equity to 6% so they would get an even percentage of share.
Pat countered for 20% equity in exchange for $375,000, stating he was not interested in a royalty structure. Kevin revised the offer to $375,000 in exchange for 30%, eliminating the royalties.
As Pat mulled it over, Robert got back in and made the exact same offer. Pat told the sharks that if any of them were willing to come down to 25%, he would do the deal. Lori whispered to Kevin to do 25%, but while the two partners were revising their offer, Robert agreed to $375,000 for 25%, and pat accepted the deal. What happened next? Keep reading our Happy Feet update to find out!
We have great news to share in our Happy Feet update! Pat credits Robert’s team with helping him land big name licensing deals such as Dreamworks, Marvel and Disney. If you’re looking for some gift-worthy slippers, you can order Pat’s products through the Happy Feet website, or on Amazon. The company has an estimated annual revenue of $4.5 million.
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Jennifer is an avid Shark Tank fan that has been watching the show for years. She serves as Senior Editor at Shark Tank Recap and ensures that all our information is accurate and that our posts are up to date. Her favorite Shark Tank products are Le-Glue and Ring!