The Sharks Can't Get Any Answers From Lockstraps Owner | Shark Tank US | Shark Tank Global
Summary
TLDRIn 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.
Outlines
🔐 Pitch for Lock Straps Security Product
Jeff Cranny introduces Lock Straps, a security product designed to protect valuables from theft. He seeks $200,000 for a 20% equity in his company. The product features a stainless steel cable with combination locks at both ends, making it resistant to cutting. Jeff demonstrates the strength of Lock Straps by challenging the sharks to cut through them using bolt cutters, which they fail to do. He discusses the product's design patent and trademark. Sales initially were promising, reaching $135,000 in the first year and $175,000 in the second. However, a partnership to fulfill a large Home Depot order led to quality control issues, resulting in product recalls and financial losses. Despite the setbacks, Jeff continues to sell the single Carabiner version of the product.
📉 Challenges and Future of Lock Straps
The discussion shifts to the challenges faced by Lock Straps, particularly the quality issues that arose from outsourcing production to meet a large Home Depot order. This led to a recall and financial burden on the partnering company, not Jeff's own. The sharks express concerns about the lack of data on sales and the product's performance in the market. They also question Jeff's involvement in the product's development and his decision to partner without retaining control over the quality. The sharks are skeptical about the product's market potential, given the competition and the history of quality issues. Despite the setbacks, Jeff remains committed to his product and is willing to make the same mistakes again, showing his resilience but also a potential lack of learning from past experiences.
Mindmap
Keywords
💡Lock Straps
💡Equity
💡Bolt Cutters
💡Design Patent
💡Trademark
💡Home Depot
💡Royalty
💡Product Recall
💡Entrepreneur
💡Investment
💡Market
Highlights
Introduction of a security product called 'Lock Straps' designed to secure valuables.
Jeff Cranny seeks $200,000 for a 20% equity in his company.
Lock Straps feature a stainless steel cable and combination locking carabiners for enhanced security.
A humorous comparison of Lock Straps to jock straps, emphasizing their protective function.
Demonstration of the difficulty in cutting Lock Straps with bolt cutters.
Comparison of Lock Straps to traditional chain and cable locks in terms of security.
Explanation of the proprietary design of Lock Straps, combining steel and cloth.
Jeff Cranny mentions obtaining a design patent and trademark for Lock Straps.
Sales figures are discussed, with $135,000 in the first year and $175,000 in the second year.
Challenges faced with a large Home Depot order and the subsequent product recall due to design flaws.
The decision to partner with another company to fulfill the Home Depot purchase order without equity exchange.
The recall of Lock Straps from Home Depot due to quality control issues.
Jeff's lack of involvement in the manufacturing process after partnering, leading to product quality issues.
Sharks' critique of the lack of sales data and the absence of Jeff's oversight on the product.
The current market presence of Lock Straps, focusing on the single Carabiner version.
Sharks' concerns about the product's performance in the market and the lack of a clear path forward.
The final decision of the sharks to decline investment due to concerns over product management and market performance.
Jeff's determination to learn from the experience and continue with his business despite the setback.
Transcripts
[Music]
[Applause]
next in the tank is a way to keep your
valuables safe and
[Music]
secure hello sharks my name's Jeff
cranny I'm seeking
$200,000 for a 20% equity in my company
lock
straps sharks theft can happen to anyone
anywhere at any time maybe you're into
desert sports like dirt bikes quads or
utvs or maybe you're more into the water
sports kind of thing big or small lock
straps locks it all they
have a stainless steel cable embedded
inside the
strap with two durable combination
locking carabiners on both ends of the
straps making them almost impossible to
cut sharks we have a saying around here
lock straps are kind of like jock
straps they help protect your junk oh my
goodness aod you look pretty strong why
don't you come up here and try cutting
one of our lock straps all right so
we're going to start with a traditional
chain right these are you seen them in
the back of trucks locking up equipment
and things like that this is the number
one tool that people use right it's
called bolt cutters all right let's see
what
[Music]
happens was
that pretty strong look at that so this
is a a traditional style cable lock go
ahead give it nice and big nice and big
all in Kaboom Kaboom two for two let's
see how you do on the lock strap go
ahead do it any way you want to do
it come on get it done get it done come
on get it done come on come on get it
done it's not it's not going get it done
come on baby come on seriously so now
what does that feel like you know what
it's like his
and I'm not allowed to kind of get my
teeth in there it's just like
this rubber so you're saying you struck
out yeah well I'm two for three now it's
pretty good that's pretty good can we
can we see the um Can us strap that he
yeah actually I have samples for you
guys that
[Music]
great why can't he cut through this cuz
it's much thinner than the other steel
cable the cable Cutters are designed to
cut steel okay this has steel and cloth
two different forms is this proprietary
putting this cloth around a steel cable
someone owns a patent with putting a
steel inside a strap that's not new
somebody owns a patent on a locking
combination carer you don't have a spe I
put it all together and patented the
whole thing together did you get I got a
design patent a design patent I got a
design patent and a trademark let's talk
about how how many of you sold so this
is the fun part right the step one yeah
here it comes uhoh here's the uh-oh Okay
so so we did about 135,000 in sales in
the first year things were looking great
we were going into our second year we
were already at 175,000 and Home Depot
found interest in it but we didn't have
the type of money to do a Home Depot
purchase order so I partnered with a
company so that we could fill the
purchase order Equity partner no no
equity
partner I Own 100% of the business yeah
how big was the order uh 1.5 million yes
wa good for you okay go on what happens
so I my factory wasn't big enough to
make the straps fast enough to meet
their orders so I allowed the company
that I went with to make the straps for
me we launched we went out on Home
Depot's shelves but they got carried
away they made them too
fast and you tie your motorcycle down
just like
that and they would slip oh boy oh my
God so they all came back they all came
back I made the teeth inside this piece
roll the strap so the harder it would
pull the the more it would dig into the
strap when they redesigned it they
decided to make the teeth redesigned it
in China the factory in China so you
went 1.9 million because I didn't do the
purchase order they did they went in the
hole wait Home Depot or the person you
the person I partnered with yes so you
were still involved or did you just step
away completely and just say send me my
commission
check I just waited for my royalty
checks to come and you left it to them
completely and they SC who cares about
this how many got sold actually before
they got
recalled I don't have that number
because it's their their number and we
shook hands and kind of win our own ways
but we maybe what we learned there and
we don't know it cuz we don't have the
data is actually this product wasn't
going to sell well anyways let's see
where we are right so you've made these
or somebody or these the bad ones uh
well those don't have the sliding clasp
on it so those ones are okay there's is
this is the piece that failed here okay
you have a product that you've made and
right now what do you have in the market
right now what we have in the market is
the single Carabiner by itself okay so
how much of these did you sell how much
have I sold since when since anytime
what cuz these aren't defective oh from
Home Depot I don't have that number cuz
they still have the they still have all
the PO and all aren try to get your this
is like's on first no he's on thirdd on
don't you get an accounting of what they
sold don't you have that data I don't
have that data because I knew they were
bad but Chef are you selling it now in
Home Depot not the bad price one this is
those those are still being sold Depot
what they did is as you know they bring
the price down from well are they
[Music]
selling they're not selling well and I
believe it's because of the fact and
you're still getting a royalty check
even though it's a small Check Yes look
is this product a dog in other words
there's nothing wrong with this there's
nothing slipping it's in stores nobody's
buying
[Music]
it yes or no yeah yeah I would say you
know what
Jeff my money's on first but he's on
third I'm out good Lu good luck Jeff I
can't get any date out of you horrible
presentation I'm
out it concerns me that you left your
product and now you want us to come back
in with your product again it's not a
very appetizing story so for those
Reasons I'm
out Jee I can relate with your story
because you know I played 23 years in
the major leagues yes I'm fifth all time
in the history of the game in
strikeouts that means I have a PhD at
failing failing but I also have a a
masters of getting back up that's what
I'm but what I was hoping that when you
get a second bite at the Apple you have
a clear story and a clear path and I
still do not hear that from
you I'm out Sor right here you go so
I've never seen an entrepreneur that
creates a product any product where they
aren't completely in love with it their
hands are all over it they know every
single thing about it even if you said
to that company put the money up take
over the true Spirit of an entrepreneur
that's created their baby is let me see
that sample let me know exactly what's
going on I want to see the packaging
they want their hands in every single
bit of
it and you just you let it go and you
didn't watch it like it was your baby
I am willing if you are willing to do a
deal where it becomes your
baby it pains me but I'm
out good luck budy all right thank you
very much for your time I really
appreciate it pleasure the end of the
day you know I pick myself up get back
up on my feet get my company back up on
my feet and get rocking and rolling it's
it's my only choice I have all right he
comes back and he's willing to make the
exact same mistake again she says to him
she wants somebody involved active and
he's like I'll let that baby's cord
right there bottom line is there's so
much competition at lower prices why
can't we just say the truth sometimes ar
ar for
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