Eve Drop
NO DEAL
EPISODE SUMMARY
🕓 Air Date: December 12, 2014
Asking For:
$75,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Eve Drop is a unique solution for hanging and displaying Christmas lights, eliminating the need for repetitive installations each year.
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Background Story
Nathan Shaffer, the mastermind behind Eve Drop, hails from Henderson, Nevada, where he has combined his entrepreneurial spirit with a background in outside sales. The genesis of Eve Drop arose from the seemingly endless chore of hanging and removing Christmas lights each year. Nathan, no stranger to the challenges of scaling rickety ladders and navigating the rooftop, envisioned a product that would revolutionize this annual task and bring joy back to the holiday decorating experience.
Driven by a genuine desire to alleviate the burdensome process of holiday light installation, Nathan set out to create a solution that would save time and effort for anyone who loves the festive glow of Christmas lights but dreads the laborious setup. His vision materialized into the innovative Eve Drop, a product designed to simplify the hanging and display of Christmas lights, making it a one-time effort with the potential to enhance the holiday spirit for countless individuals.
Nathan’s professional background in outside sales equipped him with the skills to navigate the competitive business landscape. His success in this field, coupled with a genuine understanding of consumer needs, inspired him to develop Eve Drop as a practical and efficient solution. Despite facing challenges with overseas production delays, Nathan remains undeterred, expressing confidence in his ability to capitalize on the upcoming Christmas season. The Eve Drop story is one of entrepreneurial resilience, where a simple yet impactful idea emerges from the intersection of personal experience, innovation, and a genuine passion for making holiday traditions more enjoyable for everyone.
The Product
Eve Drop, Nathan Shaffer’s brainchild, offers a revolutionary solution to the annual challenge of hanging and removing Christmas lights. The product consists of a cleverly designed cap and an optional pole adapter, providing a hassle-free and efficient way to adorn homes with festive lights. The cap features a spin-off mechanism with a groove, allowing users to easily thread their lights through. Once in place, a simple quarter-twist secures the lights against the base, ensuring stability.
The additional Eve Drop pole adapter caters to users who prefer not to ascend ladders. This accessory enables users to raise and lower the lights from the ground with a quarter-twist mechanism, eliminating the need for precarious climbs. The entire process is quick and straightforward, significantly reducing the time and effort traditionally associated with holiday light installations.
Eve Drop is available for purchase at an affordable price point, with the light hangers priced at $9.99 and the pole adapter at $3.99. Both products aim to offer a cost-effective, one-time investment for users who value the convenience of streamlined holiday decorating. Eve Drop can be acquired through various channels, including Nathan’s e-commerce site and Amazon, providing accessibility to a wide range of consumers seeking an easier and more enjoyable approach to festive home decoration.
How It Went
The company’s position before Shark Tank
Eve Drop, despite facing initial challenges, demonstrates promise and resilience in its journey. As of now, the company’s health is reflected in its sales to date, totaling $4,500. Nathan Shaffer secured this funding through a Kickstarter campaign conducted just after the Christmas season, aiming to offset production costs. However, it’s crucial to note that this figure doesn’t include pending purchase orders, indicating potential growth beyond the current sales snapshot. The company’s structure involves Nathan Shaffer as the founder and driving force behind Eve Drop.
With a background in outside sales, Nathan has applied his skills to navigate the entrepreneurial landscape, showcasing his determination to make the product a success. The company is positioned to enter the retail market, as evidenced by purchase orders totaling $3,500 for 12 different stores. Partnerships with retail chains indicate a strategic approach to distribution, emphasizing accessibility for a broad consumer base. While the product awaits overseas production, inventory worth $30,000 is on the horizon, reflecting a considerable investment in anticipation of the upcoming Christmas season. Nathan’s decision to decline a SkyMall offer in favor of higher-margin sales elsewhere underscores his strategic thinking.
The decision to sell directly online, with an 80% profit margin, is indicative of a dynamic approach to market positioning. However, challenges are evident, such as delayed inventory arrival affecting current sales figures. Nathan’s projection for the next eight weeks involves placing all 65 displays, emphasizing his belief in the product’s potential success. The company’s funding strategy includes a combination of crowdfunding and sales revenue, showcasing a resourceful approach to securing capital. Overall, Eve Drop’s trajectory suggests a company navigating the complexities of seasonal demand and retail dynamics with a determined and strategic mindset.
The Negotiations:
In the Shark Tank negotiations, Nathan Shaffer pitched Eve Drop seeking $75,000 in exchange for a 20% equity stake in his company. Despite his charismatic presentation and a compelling product, the sharks expressed reservations about the seasonal nature of the business and the challenges associated with retail. Mark Cuban and Kevin O’Leary bowed out early, citing their dislike for the idea and concerns about the retail market. Robert Herjavec followed suit, expressing skepticism about the viability of the product.
Lori Greiner initially showed interest, but ultimately decided to pass, emphasizing the current challenges faced by Eve Drop. Barbara Corcoran, the last remaining shark, deliberated on the potential of the product. She acknowledged Nathan’s salesmanship but raised concerns about the product’s ability to sell itself and its market appeal. Ultimately, Barbara decided to pass, expressing doubts about the product’s immediate market potential. Despite facing rejections, Nathan remained resolute in his belief in Eve Drop, expressing a preference to partner with someone who truly believed in him and the product.
The negotiation outcome reflected the sharks’ collective apprehensions about the product’s current market position and challenges in the retail landscape. While no deal was secured, Nathan showcased his determination and optimism, stating that being on “Shark Tank” was a dream come true, and he was eager to make the most of the opportunity to elevate Eve Drop in the market. The negotiations highlighted the sharks’ caution in investing in a seasonal product and the inherent challenges associated with bringing a novel solution to the competitive retail space.
