“No. Never. No. I’m Out” — Shark Tank’s Kevin O’Leary Harshly Rejects Beddley Startup

Lola Ogden made her debut on Shark Tank during season 11, episode 18, which was broadcast on April 3, 2020. She aimed to secure $150,000 in exchange for a 10% stake in her company, Beddley, known for its innovative duvet covers designed for ease of use. Despite the practicality of her product, the Sharks expressed concerns regarding Beddley’s sales figures, leading to a swift decline in interest among the investors.

Ultimately, Kevin O’Leary was the last Shark left, firmly stating his rejection:

“No. Never. No. I’m out.”

Reflecting on her experience, Lola noted that the investors seemed overly fixated on her sales performance. Nonetheless, she maintained that a single breakthrough could catapult her brand into significant sales territory. Kevin commented on the unusualness of the situation, telling his co-panelists it was the first time he had been rendered speechless during the show.

“All I could think of was no,”he added.

Growth After “Shark Tank”: A Turnaround for Beddley

Despite leaving the Tank without any investment, Beddley witnessed a remarkable increase in sales following the episode’s airing. By mid-2021, the company’s lifetime sales reached an impressive $4 million. Furthermore, Lola successfully addressed various supply chain challenges in the subsequent years.

Expert Advice from Mark Cuban

During her pitch, Lola presented her product as “the easiest, fastest, and most user-friendly”duvet cover available. The distinct design features a three-sided opening, simplifying the process of inserting or removing duvets. However, the Sharks raised valid concerns regarding the product’s packaging; they believed it failed to adequately convey the product’s benefits to potential customers. Although Beddley’s website included a detailed demonstration video, the packaging lacked clarity.

After sharing her academic credentials, including an MBA from Columbia University, Lola engaged in a discussion with Daymond John regarding the cost of production and retail pricing. She revealed:

“Right now, it’s made in the U.S. So, our costs are very high and I know I can get that down drastically.”

Lola disclosed that the production cost is approximately $57.50, while the retail price ranged between $130 and $140. When Robert Herjavec probed her about Beddley’s sales, she requested the investors to consider the brand’s potential rather than just the financial figures. Lola shared that Beddley had generated $28,000 in sales the previous year and about $12,000 year-to-date in 2019.

Investor Concerns Amidst Growth Potential

Though the investors expressed surprise at these numbers, Lola persevered with her pitch, emphasizing the potential for the brand. In response to Robert’s inquiry regarding her sales struggles, she mentioned extensive marketing efforts and the successful placement of Beddley products in two Macy’s pop-up shops, along with interest from QVC.

Despite the quality of her product, Lori Greiner was the first to withdraw, stating that Beddley was not a fit for her portfolio. Lola stressed the necessity of investing in marketing to bolster brand awareness, but the Sharks remained skeptical.

Daymond conjectured that she might face marketing challenges, even if funding were provided, given her current situation. Although he recognized the brilliance of the concept, he decided against investing. Robert echoed this sentiment and remarked that Lola seemed infatuated with the notion of entrepreneurship itself rather than the business’s realities.

Mark Cuban delivered crucial feedback, emphasizing that “marketing dollars never build brands”—success lies in product fulfillment and execution.

“Lola, self-awareness is key for every entrepreneur. We all lie to ourselves, some more than others. But you’re in the more category right now and you’ve gotta get to the less category. I’m out,”he stated firmly.

With no additional offers forthcoming, attention turned to Kevin O’Leary, who succinctly rejected the opportunity with a definitive “no.”