Storm Stoppers
NO DEAL
EPISODE SUMMARY
đź•“ Air Date: November 14, 2014
Asking For:
$100,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Storm Stoppers is a hurricane protection system that replaces traditional plywood with easy-to-install, impact-resistant panels.
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Background Story
John D. Smith, hailing from Orlando, Florida, stepped into the Shark Tank with his hurricane protection system, Storm Stoppers. The founder brought a unique blend of humor and practicality to the pitch, introducing himself as the creator of the product designed to defend against the forces of Mother Nature. With a keen sense of the urgency and challenges faced by homeowners when preparing for hurricanes, John drew a vivid analogy, likening hurricanes to in-laws – unpredictable and capable of leaving a mess behind.
This relatable introduction set the stage for Storm Stoppers, positioning it as a solution to a common problem faced by millions during hurricane seasons. John’s background included expertise in residential-hurricane safety and protection, evident in the development of Storm Stoppers. The motivation behind the product stemmed from the shortcomings of traditional hurricane protection methods, particularly the cumbersome and aesthetically unpleasing plywood. John envisioned a solution that would not only be more effective but also easier to use.
The use of 3M’s “Dual Lock” to fasten the impact-resistant panels added a technological edge to the solution. Through his engaging presentation, John aimed to convey that Storm Stoppers was not just a product but a necessity for homeowners facing the unpredictable nature of hurricanes. The blend of practicality, humor, and innovative design marked the essence of Storm Stoppers, as John sought the Sharks’ support to take his hurricane protection system to the next level.
The Product
Storm Stoppers, the innovative hurricane protection system, distinguishes itself with its user-friendly design and superior performance. The product’s key feature lies in its impact-resistant panels, designed to replace the conventional and cumbersome use of plywood during hurricane preparation.
The installation process is straightforward and efficient. Users align the panels and secure them using 3M’s “Dual Lock,” a fastening product that enhances the panels’ stability. Unlike the traditional method that involves heavy and time-consuming plywood, Storm Stoppers simplifies the process, making it a one-person job with minimal effort.
The benefits of Storm Stoppers become evident in its demonstration, where a 2×4 impact test showcases its ability to deflect and protect glass surfaces behind it, outperforming plywood. The product offers an aesthetically pleasing alternative, addressing the common complaint about the unattractive appearance of plywood.
Storm Stoppers is available in two sizes, catering to different window dimensions—76″ by 85″ and 65″ by 108″. The product is sold as a kit, including the impact-resistant panels and the necessary fasteners. The price for a kit is approximately $85, making it a competitive option for homeowners seeking long-term hurricane protection.
How It Went
The company’s position before Shark Tank
Storm Stoppers, over its ten years in business, has experienced a fluctuating trajectory influenced by economic and weather conditions. Founder John D. Smith provided insights into the company’s financial health and its position in the market during the pitch. The company’s historical performance showcased a peak in 2005 and 2006 when it achieved $1.6 million in sales. However, in the last 12 months, Storm Stoppers reported a decline, with sales reaching $200,000. John attributed this downturn to the company’s dependency on weather-related demand, indicating that Storm Stoppers’ sales are tied to the occurrence of hurricanes.
John focused more on demonstrating the product’s capabilities and addressing concerns raised by the Sharks regarding safety and scalability. While John didn’t disclose the current funding sources for Storm Stoppers, it was implied that the company had been sustaining itself through sales and potentially other investments. The founder mentioned the cyclicality of the business, comparing it to selling umbrellas – relying on specific weather conditions.
Details about the company’s profits and losses weren’t explicitly stated, but John hinted at challenges in maintaining consistent revenue due to the unpredictable nature of the weather-related demand. Overall, Storm Stoppers presented a product with a track record of success but faced challenges associated with the cyclicality of its market and concerns about scalability. The founder sought a strategic partnership with the Sharks to overcome these challenges and take Storm Stoppers to the next level.
The Negotiations:
The negotiations for Storm Stoppers took an unexpected turn as the Sharks raised concerns about the product’s scalability, safety, and market viability. John D. Smith entered the Tank seeking $100,000 for a 10% equity stake in his hurricane protection company. The initial enthusiasm quickly dwindled as Kevin O’Leary expressed safety concerns, leading to his swift exit from the deal. The other Sharks, sensing challenges in the business model, followed suit. Mark Cuban criticized John’s interpersonal and sales skills, contributing to his decision to opt out.
Lori Greiner, recognizing the product’s potential but troubled by the recent drop in sales, also chose not to invest. Barbara Corcoran acknowledged the innovation but was ultimately dissuaded by the inherent difficulties in the business. The negotiations ended with John leaving the Tank without a deal, facing critiques about the product’s market position, sales strategy, and the lack of proprietary features. The Sharks, while acknowledging the effectiveness of Storm Stoppers, were skeptical about its long-term success and scalability. The challenges included the cyclicality of the business tied to weather conditions, potential competition, and the perceived lack of proprietary elements.
Despite John’s unwavering belief in his product and reassurances about its market value, the Sharks were unconvinced, resulting in a rare unanimous rejection. The outcome highlighted the Sharks’ cautious approach towards businesses with fluctuating demand and concerns about competition. Ultimately, Storm Stoppers left the Tank without the desired investment, prompting John to reconsider his strategy and address the identified challenges in order to make his hurricane protection system a standard in the market.
