LockerBones
DEAL
EPISODE SUMMARY
🕓 Air Date: January 17, 2014
Asking For:
$175,000 for 10%
Investor:
Lori Greiner, Robert Herjavec (50/50)
Deal:
$175,000 for 50%
PRODUCT SUMMARY
LockerBones is a product designed to keep students organized, aiming to eliminate locker mess and reduce stress.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
LockerBones, founded by Greg Cronin from Clinton, Mississippi, and Dr. Stephen Coachys from Ridgeland, Mississippi, emerged from a shared concern about the disorganization and stress students faced with messy lockers. Greg, a seasoned contractor and developer, possessed the woodworking skills necessary to bring their vision to life. Meanwhile, Stephen, leveraging his expertise and experience, added valuable insights into product design and functionality. Their journey began when Greg crafted the first prototype using his woodworking tools, responding to the chaos he observed in his daughter’s locker before her first day of middle school.
Despite the initial roughness around the edges, the prototype proved functional, prompting positive reactions from their local community and a nearby school. Witnessing the practical benefits of their creation, Greg and Stephen were encouraged to refine their product further. Recognizing the need to protect their innovation, they obtained a design patent, ensuring the uniqueness and marketability of LockerBones. With the patent secured, they embarked on a mission to streamline locker organization, aiming to alleviate the stress and frustration experienced by students nationwide.
LockerBones is not merely a product but a solution born out of genuine concern for student well-being and academic success. Greg and Stephen’s backgrounds in construction and design, coupled with their personal experiences as parents, uniquely position them to address this pervasive issue in educational settings. As they continue to refine and expand their product line, they remain committed to improving the lives of students by fostering a sense of order and efficiency in their daily routines.
The Product
LockerBones is a revolutionary solution designed to keep students organized and reduce the chaos typically found in school lockers. The product consists of a simple yet ingenious track system and vertical dividers, which can be easily installed without the need for tools. The vertical dividers slide into the track system, providing compartments for organizing folders, books, and other items vertically within the locker.
This innovative design prevents items from toppling over, creating a clutter-free and efficient space for students to access their belongings. LockerBones comes in both single and double versions, catering to different locker sizes and storage needs. The single version is priced at $29.95, while the double version, offering additional storage capacity, is priced at $39.95.
One of the key benefits of LockerBones is its versatility, allowing students to customize their locker organization according to their preferences and needs. The product’s ease of installation and practical functionality make it a must-have accessory for students looking to streamline their daily routines and improve their academic performance.
LockerBones can be purchased directly from the company’s website or through major online retailers like Amazon. With its affordable price point and tangible benefits, LockerBones offers a simple yet effective solution to the common problem of locker disorganization, empowering students to stay focused, organized, and successful in their academic endeavors.
How It Went
The company’s position before Shark Tank
LockerBones has demonstrated steady growth and a promising position in the market since its inception. The company’s health and position are characterized by its innovative product offering, positive customer feedback, and strategic partnerships. LockerBones has forged partnerships with various schools and educational institutions, gaining traction among students, parents, and educators alike. Their commitment to quality and functionality has garnered a loyal customer base seeking solutions to locker organization challenges.
In terms of distribution, LockerBones has established relationships with wholesalers and retailers to expand its reach. While specific partners may vary, the company has collaborated with distributors specializing in educational supplies and accessories, as well as online platforms such as Amazon. The primary customers for LockerBones are students, parents, and educational institutions seeking effective solutions for locker organization. The product’s appeal lies in its practicality, ease of use, and ability to address a common pain point in school environments.
In terms of funding, LockerBones has relied on a combination of private investments, revenue from product sales, and potential partnerships to finance its operations and growth initiatives. Profitability and financial performance may vary based on factors such as production costs, sales volume, and market demand. However, with the backing of experienced investors and a solid product offering, LockerBones is well-positioned to capitalize on opportunities for growth and expansion in the educational accessories market. As LockerBones continues to evolve, its organizational structure may adapt to accommodate growth and changes in market dynamics, ensuring continued success and sustainability.
The Negotiations:
During the negotiations on “Shark Tank,” Greg Cronin and Dr. Stephen Coachys presented their product, LockerBones, seeking $175,000 for a 10% stake in their company. The Sharks were intrigued by the product’s potential but expressed concerns about the company’s distribution strategy and valuation. Kevin O’Leary questioned the strength of LockerBones’ design patent and raised doubts about their decision to pursue a large consignment order with Amazon.
Mark Cuban emphasized the importance of selling directly to schools and major retailers, rather than relying solely on online platforms. Ultimately, Robert Herjavec and Lori Greiner made an offer of $175,000 for a 50% stake in LockerBones, which Greg and Stephen accepted. This offer provided the necessary capital for the company to produce LockerBones in plastic and expand its distribution to major retailers like Staples and Office Depot.
While some Sharks expressed reservations about the deal structure and distribution strategy, Greg and Stephen saw the opportunity to leverage the expertise and networks of Robert and Lori to scale their business effectively. With the support of the Sharks, LockerBones aims to capitalize on its momentum and establish itself as a leading solution for locker organization in schools nationwide.
