The Sharks Can't Get Any Answers From Lockstraps Owner | Shark Tank US | Shark Tank Global

Summary

In a pitch for his company, Lock Straps, Jeff Cranny seeks $200,000 for 20% equity, showcasing his theft-resistant straps designed for various sports equipment. Despite initial success, a partnership with Home Depot leads to a massive order that results in defective products due to rushed production. The product recall and financial loss leave Jeff without data on sales or a clear path forward, leading to a unanimous rejection from the sharks who question his commitment and the product's market viability.

Takeaways

• 🔒 Jeff Cranny introduced 'Lock Straps', a security product designed to protect valuables from theft.
• 💰 He sought $200,000 for a 20% equity stake in his company, showcasing the product's resilience against cutting tools.
• ⛓ The product features a stainless steel cable and combination locking carabiners, making it difficult to cut.
• 🏗️ The initial sales were promising, reaching $135,000 in the first year and $175,000 in the second year before a major retail deal.
• 📉 A partnership with a company to fulfill a large Home Depot order led to quality control issues and a product recall.
• 📉 The factory in China altered the product design, causing the straps to slip, which resulted in a massive return and financial loss.
• 📊 Jeff does not have exact sales figures post-recall, indicating a lack of data tracking and control over the product's performance.
• 🤝 Despite the setback, Jeff continued to receive royalty checks, suggesting ongoing sales of the non-defective version of the product.
• 🚫 The sharks expressed concerns about Jeff's lack of involvement in the product's manufacturing process and his presentation.
• ❌ The sharks declined investment, citing concerns about the product's market performance, Jeff's hands-off approach, and the need for a clear path forward.

Q & A

What is the product that Jeff Cranny is seeking investment for?

Jeff Cranny is seeking investment for 'Lock Straps,' a product designed to secure valuables and prevent theft.

What is unique about the Lock Straps according to the pitch?

The Lock Straps have a stainless steel cable embedded inside the strap and come with two durable combination locking carabiners on both ends, making them difficult to cut.

What is the significance of the saying 'Lock straps are kind of like jock straps' mentioned in the pitch?

The saying implies that just as jock straps protect sensitive areas, Lock Straps are designed to protect valuables from theft.

What happened when the product was tested with bolt cutters on the show?

The bolt cutters were unable to cut through the Lock Straps, demonstrating their strength and durability compared to traditional chain locks.

What is the patent status of the Lock Straps as mentioned in the pitch?

Jeff Cranny has a design patent and a trademark for the Lock Straps, but no utility patent is mentioned.

What was the issue with the product when it was sold at Home Depot?

The issue was that the straps were made too fast by the factory in China, causing them to slip when used to secure items like motorcycles.

What was the financial outcome of the Home Depot deal for Jeff Cranny?

The Home Depot deal resulted in a financial loss of 1.9 million dollars due to the product recall caused by the slipping issue.

Why did the sharks express concern about Jeff Cranny's involvement in the product after the Home Depot incident?

The sharks were concerned because Jeff Cranny had previously allowed another company to manage the product, which led to quality control issues and a failed partnership.

What is the current status of the Lock Straps in the market according to the pitch?

The current product in the market is a single Carabiner by itself, which is not defective and is still being sold at Home Depot.

What was the general consensus among the sharks about investing in Lock Straps?

The sharks were not convinced to invest due to concerns about the product's past performance, lack of data on current sales, and Jeff Cranny's previous lack of involvement in the product's quality control.