Pitch Introduction
Morrison Outdoors made headlines on Shark Tank with their innovative approach to outdoor gear for children. Tavis Malcolm pitched his baby and toddler sleeping bags, seeking $300,000 for 10% equity in his company. The pitch highlighted a unique market gap in the outdoor industry.
Business Overview
Product/Service: Morrison Outdoors specializes in specialty outdoor gear for kids, particularly baby and toddler sleeping bags. They also offer adult outdoor gear including the Mega Mo sleeping bag with unique features like pockets, sleeves, and bottom zippers. Problem It Solves: The company addresses the lack of suitable sleeping bags for infants and toddlers in the outdoor market. Parents previously had to layer multiple items to keep their children warm during camping trips. Target Market: Families with young children who enjoy outdoor activities, camping enthusiasts, and gift buyers looking for unique children’s products. Unique Selling Proposition (USP): Morrison Outdoors is the first company to create purpose-built sleeping bags specifically designed for babies and toddlers, filling a significant gap in the outdoor gear market.
| Company Details | Information |
|---|---|
| Company Name | Morrison Outdoors |
| Founder | Tavis Malcolm |
| Industry | Fitness/Sports/Outdoors |
| Location | Albuquerque, NM |
| Year Founded | 2018 |
| Website | morrisonoutdoors.com |
About Founder’s
Tavis Malcolm, the founder and CEO of Morrison Outdoors, is a New Mexico native and former Eagle Scout who comes from a family of business owners. His entrepreneurial journey began after a family camping trip where he couldn’t find a suitable sleeping bag for his newborn son. This experience inspired him to quit his marketing job and dedicate his savings to launching the company in his garage.
- Former marketing professional with corporate experience
- Eagle Scout with outdoor experience and knowledge
- Family business background with entrepreneurial mindset
- Personal experience as a parent driving product development
Shark’s and Founder’s QnA
Mark Cuban:
How did you make the sleeping bags?
Tavis Malcolm:
We make them right here in Albuquerque, New Mexico. We have a manufacturer partner that helps us with that production. We do everything in house with that.
Barbara Corcoran:
Where do you make them?
Tavis Malcolm:
They’re made in the USA. We make them right here in Albuquerque, New Mexico.
Mark Cuban:
How many have you sold?
Tavis Malcolm:
So we’ve launched in June of 2018 and between then and today we have sold $4.3 million worth of product. Year to date this year we’re at $850,000 and we’re looking at about $1.1 million.
Barbara Corcoran:
What’s your profit margin?
Tavis Malcolm:
So the year prior we were barely profitable because I said I’m going to blow out marketing on every channel at once. I’m going to go to these trade shows, I’m going to hire these people. I spent away our whole margin. So far this year we’ve spent less than $15,000 on marketing to generate that $850,000 in sales. We’re looking to be profitable at the end of this year.
Mark Cuban:
Do you have more products?
Tavis Malcolm:
We do. We have adult bags, we have a line of accessories. I mean we’re trying to build a brand around the outdoor family lifestyle.
Kevin O’Leary:
I like the adult bag with the zippers and the pockets. I think that’s a bigger market. But I’m not an outdoorsy person so I’m going to pass.
Lori Greiner:
I love the adult bag. That’s so fabulous. I think the kids sleeping bag is very unique and I think a lot of parents want to get their kids into the outdoors.
Robert Herjavec:
I think that the problem is that it’s a very seasonal business. You know camping season is limited.
Tavis Malcolm:
I think it’s a 365 day a year business. We have customers who use it for travel, they use it at home for the winter, they use it in their backyard. We also sell a good amount of our products as gifts. We sell a lot of our products year round in the gift market as well.
Lori Greiner:
What’s your average selling price?
Tavis Malcolm:
The kids products range from $49 to $69 and the adult products range from $114 to $149.
Barbara Corcoran:
I want to talk to Mark about this because I really like it. Mark, I’m going to make you an offer. I will give you $150,000 for 10 percent if Mark will match it for another 10 percent, for a combined 20 percent.
Mark Cuban:
We’ll make that deal. We’ll do it together.
Tavis Malcolm:
Sure, I’ll take it.
Key Stats & Financials
Morrison Outdoors demonstrated impressive financial performance before and during their Shark Tank pitch. The company’s growth trajectory was particularly notable given their short time in market and the founder’s initial investment of just $3,000.
- Sales: $4.3 million in total sales, $850,000 year-to-date, $1.1 million projected for 2024
- Margins: Barely profitable in 2023 due to overinvestment in marketing, aiming for profitability in 2024
- Valuation: Requested $3 million valuation (30x revenue multiple)
- Investment Request: $300,000 for 10% equity
- Use of Funds: Marketing expansion, product development, and operational growth
| Financial Metric | Amount |
|---|---|
| Original Ask Amount | $300,000 |
| Original Offered Equity | 10% |
| Valuation Requested | $3,000,000 |
| Total Sales (Pre-Pitch) | $4,300,000 |
| YTD Sales (2024) | $850,000 |
| Projected 2024 Revenue | $1,100,000 |
Business Potential and TAM
Morrison Outdoors operates in the growing outdoor recreation market, which has seen increased demand due to changing consumer preferences and lifestyle shifts. The company’s unique positioning in the baby and toddler sleeping bag segment represents an untapped niche with significant expansion potential.
- Total Addressable Market includes families with young children interested in outdoor activities
- Gift market potential for children’s products during holidays and special occasions
- Expansion opportunities into other children’s outdoor gear categories
- Year-round sales potential through multiple use cases beyond camping
Morrison Outdoors: Ideal Target Audience & Demographics
| Demographic | Details |
|---|---|
| Primary Age Group | Parents of infants and toddlers (25-45 years old) |
| Income Level | Middle to upper-middle class families |
| Geographic Focus | Outdoor enthusiasts across the United States |
| Lifestyle | Active families who enjoy camping and outdoor activities |
| Shopping Behavior | Gift buyers, online shoppers, specialty outdoor retailers |
Marketing and Distribution Strategy
Morrison Outdoors has demonstrated effective marketing efficiency, achieving $850,000 in sales with less than $15,000 in marketing expenses in the year following their pitch. This lean approach contrasts with their previous overinvestment in marketing channels and shows improved financial discipline.
- E-commerce direct-to-consumer sales through their website
- Retail partnerships with specialty outdoor gear stores
- Gift market distribution through specialty retailers
- Year-round sales approach to counter seasonality concerns
Morrison Outdoors Deal Outcome
During the pitch, Barbara Corcoran and Mark Cuban partnered to offer Tavis Malcolm $300,000 for a combined 20% equity stake in Morrison Outdoors. The deal was accepted by Malcolm on the show, but unfortunately fell through after the taping due to issues during due diligence.
| Deal Component | Details |
|---|---|
| Total Investment | $300,000 |
| Total Equity Offered | 20% |
| Investing Sharks | Barbara Corcoran and Mark Cuban |
| Individual Investment | $150,000 each for 10% |
| Pitch Outcome | Accepted on show, deal later fell through |
Morrison Outdoors Post-Show Update
Following their appearance on Shark Tank, Morrison Outdoors faced the reality that many entrepreneurs encounter – the complexity of closing investment deals. Tavis Malcolm shared with KOAT Action 7 News that despite the initial excitement and acceptance of the offer on television, the deal ultimately didn’t proceed after months of due diligence work with the Sharks.
Business Analysis & Lessons
Morrison Outdoors presents an interesting case study in product-market fit and business execution. The company successfully identified a gap in the outdoor gear market and developed products that resonated with families. However, their experience also highlights the challenges of scaling a business and the importance of financial discipline, as demonstrated by their overspending on marketing in 2023.
Mark Cuban’s feedback about chasing topline growth at the expense of profit margins was particularly valuable not just for Malcolm but for all entrepreneurs watching. The key lesson is that sustainable business growth requires careful balance between revenue expansion and maintaining healthy profit margins.
- Importance of identifying and filling market gaps with unique products
- Value of personal experience in driving authentic product development
- Necessity of maintaining financial discipline during growth phases
- Complexity of investment deals beyond initial handshake agreements
Pitch Conclusion
Morrison Outdoors’ Shark Tank pitch showcased a compelling product with strong market potential and impressive sales figures. While the investment deal ultimately didn’t materialize, the exposure from the show undoubtedly provided valuable marketing for the brand. The company’s story demonstrates both the opportunities and challenges that come with rapid growth and the complexities of working with high-profile investors. What aspects of Morrison Outdoors’ business model do you find most interesting?