BenjiLock Padlock
DEAL
EPISODE SUMMARY
🕓 Air Date: October 15, 2017
Asking For:
$200,000 for 10%
Investor:
Kevin O'Leary
Deal:
$200,000 for 15%
PRODUCT SUMMARY
BenjiLock is the world's first traditional padlock with fingerprint technology, providing a secure and convenient way to access belongings.
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Background Story
Robbie Cabral, the inventor, CEO, and founder of BenjiLock, developed the idea after observing stress and inconvenience in gym locker rooms due to forgotten keys or combinations. His personal commitment to fitness inspired the creation of a padlock that combines traditional keys with fingerprint technology. Robbie, originally from the Dominican Republic, faced challenges after getting laid off and decided to pursue his American Dream by developing BenjiLock, investing $87,000 of his own funds into the project.
The Product
BenjiLock is a groundbreaking padlock that integrates traditional lock mechanisms with modern fingerprint technology. The fingerprint recognition allows users to access their belongings with ease, and in case of technological issues, a set of traditional keys is provided as a backup.
The prototype, shown on Shark Tank, demonstrated the evolution of BenjiLock, and Robbie is working on a smaller version. The product has a unique selling point with a 30-minute charge lasting for an entire year.
Robbie recently received a patent for the technology and won the CES Innovation Award in 2017. The lock’s potential extends beyond gym lockers, as it can be used to replace core-cylinder locks in standard domestic doors, opening up new market opportunities.
BenjiLock aims to retail for $60, and Robbie has received interest from Sam’s Club for a substantial order of 30,000 units. He plans to manufacture the lock for $20 per unit, based on a quote for 50,000 units. The company’s goal is to address both retail and licensing markets, offering versatility in its business approach.
How It Went
The company’s position before Shark Tank
BenjiLock has achieved notable recognition, winning the CES Innovation Award in 2017 and gaining interest from major retailers like Sam’s Club. Robbie Cabral self-funded the project with an investment of $87,000. The product’s affordability, with a manufacturing cost of $20 per unit, positions it well for potential mass production.
Robbie’s background in marketing and advertising, combined with his determination after facing unemployment, showcases his commitment to making BenjiLock a success. The company’s financial health relies on future partnerships and orders, with Sam’s Club expressing interest in a substantial purchase.
The Negotiations:
The Sharks were impressed with BenjiLock’s innovation and Robbie’s passion. Mark Cuban expressed concern about the licensing route, citing potential pitfalls where large companies bury innovative products. He opted out early, stating that the product didn’t align with his expertise. The negotiations became emotional as Robbie shared his journey, including overcoming adversity and pursuing the American Dream.
Kevin O’Leary and Lori Greiner both offered $200,000 for 15%, emphasizing their expertise in licensing and retail, respectively. Barbara Corcoran and Alex Rodriguez presented a joint offer of $200,000 for 20%, suggesting a team approach to guide Robbie.
In a surprising turn, Robbie chose Kevin O’Leary’s offer, valuing O’Leary’s strength in negotiating licensing deals. The decision shocked the other Sharks, but Robbie expressed a connection with O’Leary’s passion and felt confident in the choice. The negotiation showcased the emotional and strategic aspects of entrepreneurship, with Robbie’s personal journey playing a significant role in the final decision.
