Safety Nailer
DEAL
EPISODE SUMMARY
🕓 Air Date: March 20, 2020
Asking For:
$100,000 for 14%
Investor:
Lori Greiner, Rohan Oza, Mark Cuban (33,3)
Deal:
$100,000 for 33%
PRODUCT SUMMARY
Safety Nailer is a patented tool designed to protect fingers during hand-nailing and starting screws, featuring neodymium magnets and multiple grooves for various fastener sizes.
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Background Story
Safety Nailer was invented by Drew Zirkle’s friend, Dan, who faced health challenges after military service. In 2017, Dan introduced the product to Drew, who, inspired by his mother’s advice to finish what is started, believed in the potential of Safety Nailer. Despite initial hesitations from Dan, Drew, along with Dan’s wife, decided to turn the invention into a business.
Drew, a project manager for a consulting firm specializing in wastewater treatment plants, committed to Safety Nailer while maintaining his full-time job. The product’s journey involved overcoming challenges in production, including hand-making the initial 2,000 units. After seeking external help and regaining control, they found a factory in China for mass production.
The Product
Safety Nailer is a hands-free tool designed to facilitate hand-nailing and starting screws, equipped with neodymium magnets and grooves for various fastener sizes. The tool straps to fingers, offering protection and ease of use.
The second model accommodates smaller finish nails, screws, and staples, addressing a range of fastening needs. With an injection molding machine acquired for $3,000, Safety Nailer is now produced in China, with a manufacturing cost of $1.75 per unit. The product is sold for $9.99 on Amazon and the company’s website.
Drew presented another invention, a clackless clacker, conceived during the Safety Nailer production. Although unrelated to the main product, this led to a surprising turn of events in the negotiation.
How It Went
The company’s position before Shark Tank
Safety Nailer has demonstrated sales of $40,000 in the previous year, reaching $85,000 to date, with a projected revenue of over $100,000 for the current year. While currently showing a modest profit of $2,000 to $3,000, Drew balances his involvement with Safety Nailer alongside his full-time role as a project manager.
The product is primarily sold online through Amazon and the company’s website. Safety Nailer started with manual production but transitioned to a factory in China to meet growing demand. The negotiation revealed that Drew and his team were exploring other products, with a surprise reveal of a clackless clacker, capturing the Sharks’ interest.
The Negotiations:
Drew Zirkle entered the tank seeking $100,000 for 14% equity in Safety Nailer. The Sharks were impressed with the product’s utility but expressed concerns about Drew’s part-time commitment to the business. Kevin O’Leary was the first to bow out, emphasizing the need for a full-time commitment from the entrepreneur. Lori Greiner and Barbara Corcoran followed suit, citing concerns about the business’s stage and scalability. Mark Cuban commended the product but saw challenges due to Drew’s part-time involvement.
However, things took an unexpected turn when Drew presented a clackless clacker, a seemingly unrelated invention. This caught Rohan’s attention, leading to an offer of $100,000 for 33%, contingent on obtaining licensing rights for the clacker. The negotiation quickly concluded, with Mark, Rohan, and Lori sealing the deal based on the potential of the additional invention. The surprising turn showcased Mark’s willingness to invest based on unexpected opportunities, securing Safety Nailer’s future with an unexpected twist in the negotiation.
