Lockstraps Locking Tie Downs
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 25, 2018
Asking For:
$200,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Lockstraps offers durable straps with embedded stainless steel cables and combination-locking carabiners to secure valuables, especially for outdoor sports enthusiasts.
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Background Story
Lockstraps, presented by Jeff Cranny on Shark Tank, originated from the need for a more secure and versatile solution for outdoor enthusiasts to protect their valuables. Jeff shared his passion for addressing theft concerns in various outdoor sports like dirt biking, quad biking, and water sports. He expressed firsthand experience in the challenges of securing valuable equipment during outdoor activities. Cranny’s pitch suggested a personal connection to the product’s purpose, emphasizing its effectiveness in preventing theft in diverse settings.
The idea for Lockstraps likely stemmed from Cranny’s recognition of the limitations of traditional security measures. He highlighted the vulnerability of standard cable locks to tools like bolt cutters, prompting him to devise a more robust solution. The incorporation of an embedded stainless steel cable within durable straps, coupled with combination-locking carabiners, was presented as an innovative approach to enhance security.
The narrative presented in the pitch showcased Cranny as an entrepreneur who identified a problem within his own experiences and sought to develop a practical solution. Despite facing challenges, such as a product recall due to design flaws, Cranny remained committed to refining and selling Lockstraps. The Sharks, however, raised concerns about the product’s market performance, indicating potential hurdles in Lockstraps’ journey to becoming a widely adopted security solution.
The Product
Lockstraps is a security solution designed to protect valuable equipment and belongings in outdoor settings, particularly in sports like dirt biking, quad biking, and water sports. The product features durable straps with an embedded stainless steel cable and two combination-locking carabiners on each end. This innovative design aims to make Lockstraps highly resistant to cutting tools, providing enhanced security compared to traditional cable locks.
The straps serve a dual purpose, acting as both a securing mechanism and a visible deterrent to potential thieves. The combination-locking carabiners offer a customizable security code, allowing users to set and change their preferred combinations easily. Lockstraps are designed to be versatile, accommodating various sizes and types of equipment, making them suitable for securing motorcycles, bicycles, water sports gear, and more.
Lockstraps are available for purchase through various retail channels, with specific mention of their presence in Home Depot. The product’s pricing strategy was not explicitly mentioned in the pitch; however, the Sharks raised concerns about the market performance and pricing competitiveness of Lockstraps. Despite challenges, the product aims to provide outdoor enthusiasts with a reliable and effective solution to safeguard their belongings from theft.
How It Went
The company’s position before Shark Tank
Lockstraps, as presented on Shark Tank, shared insights into its performance and challenges. The company’s founder, Jeff Cranny, revealed that Lockstraps generated approximately $135,000 in sales during its first year and was on track for growth with $175,000 in the second year. However, the trajectory took a significant turn when Home Depot expressed interest in the product, leading to a substantial purchase order of $1.5 million. To fulfill this order, Cranny partnered with another company, which caused unforeseen complications.
The partnership resulted in manufacturing issues and a product flaw, leading to a product recall. The defect was related to the redesign of the straps in China, where the teeth inside the locking mechanism were altered, causing slippage when securing items. This setback resulted in the return of the entire inventory. Cranny acknowledged the challenges faced during this phase, emphasizing that the faulty product was not representative of the original design’s capabilities. The returned inventory significantly impacted the company’s financial health, and Cranny indicated that he started receiving royalty checks after leaving the situation in the hands of the partner.
The current market performance of Lockstraps, particularly after resolving the product issue, was not explicitly addressed in the pitch. Partnerships, wholesalers, and specific financial details, such as profits, losses, and available capital, were not provided. However, Cranny did mention that the company’s product was still being sold in Home Depot, albeit at a reduced price. Despite the setbacks, Cranny expressed resilience and a determination to revive Lockstraps, presenting an opportunity for potential investors to participate in reshaping the company’s trajectory.
The Negotiations:
During the Shark Tank pitch for Lockstraps, Jeff Cranny sought a $200,000 investment in exchange for a 20% equity stake in his company. The presentation showcased the unique selling proposition of Lockstraps, emphasizing their durability and security features, especially in comparison to traditional cable locks that could be easily cut with bolt cutters. The demonstration involved Alex Rodriguez attempting to cut through various locks, with Lockstraps proving more resistant due to their stainless steel cable embedded within the strap and combination-locking carabiners. The presentation, while engaging, highlighted the challenges faced by Lockstraps, including a previous partnership that led to a product recall.
Kevin O’Leary expressed concern about the lack of data provided by Cranny and found the overall presentation unsatisfactory. He ultimately declared himself out of the deal, citing the entrepreneur’s inability to provide critical information. Barbara Corcoran expressed her reluctance to invest, noting her discomfort with the entrepreneur’s decision to leave the product entirely in the hands of a partner during the previous setback. She questioned Cranny’s commitment to his product and, for those reasons, chose to bow out.
Mark Cuban, known for his straightforward approach, also opted out early in the negotiation, expressing dissatisfaction with the entrepreneur’s storytelling and the lack of a clear path forward.Lori Greiner empathized with Cranny’s journey but pointed out the need for a clear story and path for the product. Despite the emotional appeal, she chose not to invest, citing concerns about the entrepreneur’s approach and commitment. Ultimately, none of the Sharks made an offer for Lockstraps. The negotiation showcased the importance of clear communication, data transparency, and an entrepreneur’s active involvement in their product’s development and management.
