Drop Stop Before Shark Tank
Drop Stop is the product of two friends turned entrepreneurs, Marc Newburger and Jeffrey Simon. Drop Stop is basically a device that prevents objects from falling between the small gap found between a car set and the handbrake in the center. This device can save all those coins, your cell phone and any other objects that may fall into that tricky little space in your car. Drop Stop was created after Marc let his cell phone fall into that gap one day as he was driving his car. As he attempted to reach down and retrieve the cell phone, he almost hit a pedestrian and came within inches of crashing into a metal pole. This near fatal experience caused Marc to sit down with Jeffrey and start thrashing out some ideas on how future incidents could be prevented, not just for themselves but for others too.
After much brainstorming, the Drop Stop was born! The duo tried a whole lot of different materials before Marc decided to use some sponge and cover it in a sock-like material. Then a few slits for the seat belt needed to be cut into it and the product was pretty much complete. After testing the product out on his car, Marc was happy that the duo had come up with a great solution to a common problem. Marc and Jeffrey spent a few years developing the prototype before deciding to take the plunge and get their product out onto the market.
Marc and Jeffrey needed some additional capital as well as some extra business expertise to make the Drop Stop into the success they knew it could be. Marc and Jeffrey decided to venture into the murky waters of the shark tank in search of just that. Will the sharks like Drop Stop and will this be the start of the road to success for Marc and Jeffrey?
Drop Stop On Shark Tank
Marc and Jeffery enter the tank and begin talking about themselves and their company Drop Stop. Jeffrey goes on to inform the sharks that the duo has come to the shark tank today looking for a $300,000 investment in return for a fifteen per cent equity share in their company. Jeffrey goes on to ask the sharks if any of them have ever let something fall into that notorious gap between the seat and center console of their cars. The sharks all nod in agreement at this statement. The sharks are amused that the duo has come up with the nickname of the ‘carmuda triangle’ for that ‘black hole’ or ‘pit of doom’ where objects seem to fall. Jeffrey goes on to ask the sharks which one of them has a two-year-old French fry sitting down beneath the car seat because it has fallen through that gap. Shark Mark Cuban raises his hand in agreement while Marc Newburger demonstrates just how easy it is for objects to fall into that gap.
Marc goes on to tell the sharks about more about Drop Stop stating that it is a patented device that is universal in size to fit any car or truck. Having Drop Stop can bring the focus back to driver safety and allows you to keep your eyes on the road as opposed to what is falling down through the gap between the seat and the center console of the car. Further to that, the stretchy and durable material of the Drop Stop is designed to last the life of your vehicle and beyond making it an investment piece that you won’t regret buying.
After the duo finish their pitch, Mark Cuban is interested to know just how much money there is in solving the problem of the ‘carmuda triangle’. Jeffrey goes on to inform Mark that they have sold over 260,000 units of the product. The sharks are impressed are this however Mr. Wonderful is skeptical as always. Kevin probes the duo for more information and wants to know how many dollars did the units sold equate to. Jeffrey replies that since Drop Stop was formed and they started selling back in 2009, the duo have made gross sales of just over $1.3 million. Kevin wants to know how much Drop Stop will make this year to which Jeffrey replies that this year they have gross sales of $300,000 so far but with the fourth quarter of the year approaching they expect to have total gross sales of $500,000 which will make them an income of $260,000.
Lori is interested to know where exactly the Drop Stop is being sold. Jeffrey and Marc inform Lori that they sell via their website and through a catalog. They then go on to tell QVC Queen Lori that they have had forty-two shows on QVC. The sharks are visibly impressed by this and Mark Cuban asks if the sharks can take a closer look at the product. Robert can’t believe that people need a product like this so Marc goes on to share how the duo came up with the idea and shares his own near-fatal experience with the sharks. The sharks were shocked when they heard what had happened and Marc. Mark Cuban wants to know more about the numbers end of the product and asks what it costs to make the product and what the duo sell the Drop Stop for. Jeffrey explains that the cost to them is $4 for a set of two and that set of two retails at $19.99. Kevin makes the point that the duo must sell it to retailers for $10 leaving them with just a $6 profit. Jeffrey explains that the main reason they have come to the shark tank is to get the help they need to crack the retail market. Lori asks about a patent to which they reply they have patented the product much to the surprise of Robert and Kevin that such a seemingly simple piece of material has been patented.
Robert is still in shock that people drop that much stuff down through this notorious gap that Marc and Jeffrey speak of. He claims he does not believe in the product enough and therefore he is not the right investor. He declares himself out.
Daymond likes the story and states that the sales for the product clearly show that people out there need the Drop Stop. Unfortunately, it is not something he believes in so for that reason he declares himself out.
Mark Cuban thinks that is a phenomenal product and he claims he is going to start using the one that Marc and Jeffrey have gifted him with. Unfortunately for the duo, Mark does not think he can add value to the product and he cannot compete with QVC Queen Lori. For that reason, he also declares himself out. The duo are clearly disappointed that Mark has declared himself out but Mark goes on to say that he would be nothing more than a check-book for the duo when they need so much more.
Kevin claims he likes being a check book. He makes the duo an offer saying he will give them the $300,000 and does not want any equity in their company. Instead, for every Drop Stop sold, he will get $2 back. That would mean that the duo would only be left with $1 per unit sold.
Lori bides her time before stating that she can easily make Marc and Jeffrey millionaires. Lori goes on to say that she can get the Drop Stop into retailers across the United States as well as internationally. So Lori makes her offer – $300,000 but for a twenty per cent equity share in the company for the simple fact that she knows what it’s going to take for her to do all of that.
Kevin quickly tries to dissuade Marc and Jeffrey from giving away all that equity and he decides to make his offer a bit more interesting. Mr. Wonderful decides that after he has recouped the $300,000 he would invest; the $2 royalty would drop down to $1 per every unit sold.
Lori tries to bring the duo back to her way of thinking but Kevin is quick to disagree claiming she is only good for QVC not retail. Robert urges the duo to make their decision and after a moment of consideration Jeffrey announces that both he and Marc would love to take Lori’s deal. Lori is delighted that Marc and Jeffrey have decided to go with her deal. The duo leaves the shark tank incredibly happy that they have Lori on board.
Drop Stop Now in 2018- The After Shark Tank Update
Since appearing on Shark Tank, Marc, Jeffrey and Lori have been enjoying huge success with the Drop Stop. When the shark tank episode aired, the duo revealed that they did close to a half a million dollars in sales. Further to that, Drop Stop has become the number one selling car accessory on Amazon. You can check it out and buy your very own by clicking on this link here.
True to her promise, Lori has been an incredible help in getting the Drop Stop into retail stores all over the United States. Drop Stop can be bought in Bed, Bath and Beyond, Walmart, Target, and Staples to name but a few. Further to that, sales for Drop Stop have exceeded $10 million and show absolutely no sign of slowing down any time soon. It is clear the duo made the right decision taking Lori’s deal and there is no doubt she will help them and Drop Stop become an even bigger success.