Garage Door Lock
DEAL
EPISODE SUMMARY
🕓 Air Date: March 21, 2014
Asking For:
$275,000 for 30%
Investor:
Daymond John
Deal:
$275,000 for 35%
PRODUCT SUMMARY
The Garage Door Lock is a steel deadbolt designed to automatically lock garage doors, addressing the security vulnerability posed by easily accessible garage doors, which are often left unlocked.
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Background Story
Bryan White, the founder of The Garage Door Lock, brings a wealth of experience in inventing and addressing security concerns to his entrepreneurial venture. Prior to founding The Garage Door Lock, Bryan had a notable background in innovation, having previously developed a device for launching parasails from boats. His entrepreneurial journey began with observing a crucial security vulnerability in homeownership: the ease with which garage doors, despite being the largest entrance to most homes, are often left unlocked, making them prime targets for burglaries.
Motivated by a desire to address this prevalent issue and leveraging his expertise in inventing, Bryan conceptualized The Garage Door Lock as a solution to protect homeowners’ belongings and provide peace of mind. His inspiration came from witnessing firsthand the security practices of homeowners and recognizing the need for a reliable and user-friendly solution to secure garage doors effectively. This realization prompted Bryan to embark on the journey of developing The Garage Door Lock, a universal steel deadbolt designed to automatically lock garage doors.
Driven by his passion for innovation and commitment to enhancing home security, Bryan poured his knowledge and resources into developing The Garage Door Lock. His dedication to addressing a pressing security concern in an accessible and effective manner underscores his entrepreneurial spirit and commitment to making a positive impact in the lives of homeowners. With The Garage Door Lock, Bryan aims to empower homeowners with a simple yet powerful tool to protect their homes and belongings from potential intruders.
The Product
The Garage Door Lock is a revolutionary security solution designed to protect homeowners from unauthorized access to their garages. This universal steel deadbolt attaches easily to existing garage doors, enhancing security without the need for door replacement.
The operation of The Garage Door Lock is simple and convenient. It automatically engages when the homeowner uses the remote control included with the lock kit. This means that every time the garage door is closed, the lock engages automatically, providing an additional layer of protection.
The benefits of The Garage Door Lock are manifold. Firstly, it provides peace of mind by securing the largest entrance to a home, which is often overlooked in terms of security. Secondly, it deters potential intruders, as breaking through a secured garage door becomes significantly more difficult. Additionally, its universal compatibility ensures that it can be used with any type of garage door opener.
The product is available for purchase online, making it accessible to homeowners nationwide. Priced at $249.95, it offers an affordable yet effective solution to a common security concern. With its user-friendly installation process and automatic locking mechanism, The Garage Door Lock is a must-have for any homeowner looking to enhance the security of their property.
How It Went
The company’s position before Shark Tank
The Garage Door Lock has demonstrated promising performance since its inception, with a focus on online sales and minimal marketing expenditure. To date, the company has sold 450 units, generating approximately $112,000 in revenue. Despite its relatively small scale, The Garage Door Lock has tapped into a significant market opportunity, with an estimated $1.3 billion spent annually on steel garage doors in the United States. The company primarily sells its product directly to consumers through its online platform, leveraging digital channels to reach a wide audience of homeowners concerned about security.
Notably, The Garage Door Lock has not engaged in traditional marketing campaigns, relying instead on word-of-mouth referrals and customers who have experienced break-ins. In terms of funding, founder Bryan White has invested $250,000 into the business, excluding patent expenses. While the company has managed to achieve steady sales growth without external financing, securing additional funding could fuel expansion efforts and accelerate market penetration. At present, The Garage Door Lock operates as a lean organization, with Bryan White overseeing product development, sales, and operations. The company’s structure is streamlined to optimize efficiency and minimize overhead costs.
Looking ahead, The Garage Door Lock aims to capitalize on its momentum and establish strategic partnerships to drive growth. By forging alliances with reputable wholesalers and manufacturers, the company can expand its distribution network and reach new customer segments. Furthermore, continued innovation and product development efforts will enable The Garage Door Lock to maintain its competitive edge in the home security market and further solidify its position as a trusted solution for homeowners nationwide.
The Negotiations:
During the negotiations on Shark Tank, founder Bryan White sought a $275,000 investment for 30% equity in The Garage Door Lock. Two sharks, Daymond John and Robert Herjavec, presented competing offers to propel the company forward. Daymond offered the full amount but for a slightly higher equity stake of 35%, contingent on licensing the product to a manufacturer to address marketing challenges. On the other hand, Robert proposed the same investment amount but for a much higher equity share of 70%, without any contingencies.
While Daymond’s offer provided a clearer path to addressing the company’s marketing hurdles, Robert emphasized his industry connections and expertise. Recognizing the value of securing a licensing agreement to overcome marketing challenges, Bryan accepted Daymond’s offer, adjusting the equity stake to 35%. This decision aligned with Bryan’s strategic goals and allowed for the necessary support to expand the company’s reach and brand awareness.
Despite Robert’s higher equity offer, Daymond’s proposal offered a more practical solution to the company’s current needs. Ultimately, the negotiation process highlighted the importance of strategic partnerships and clear alignment between investor and entrepreneur objectives. By accepting Daymond’s offer, The Garage Door Lock positioned itself for growth and success in the competitive home security market.
