Lori Greiner’s ‘Shark Tank’ deal made these founders millionaires with one simple car accessory
The Sharks are always looking for products that add value, not just for customers, but for themselves too. One such product that made millions for a Shark was Drop Stop. The founders, Jeffrey Simon and Marc Newburger, appeared on the show in 2013, asking for $300K in exchange for 15% equity. During the pitch, they explained how the flexible foam product fills the gap between a car seat and the center console, preventing small objects from falling through.
The product was a game-changer, but what impressed the Sharks was the massive profit margin. The duo revealed that the product retailed for $19.99 while the cost to make a pair was only $4. However, Shark Robert Herjavec was not convinced and said, "I am not a believer in the product," and opted out. Daymond John went up next and said, "At the sales, it's showing that it's a need, but it's not something that I believe in." Mark Cuban had a different take. He called the product phenomenal and said he’d gladly use it himself. However, he also stepped aside, saying Lori Greiner was the right fit and that he couldn’t add more value than she could.
That left Simon and Newburger's fate in the hands of Kevin O'Leary and Greiner. O'Leary made his first deal, but it didn't come without a twist. He offered $300K for no equity. In addition, he would collect a $2 royalty on every unit sold in perpetuity. Simon was not pleased, and then Greiner jumped in with her offer. But before that, she told the founders, "They say money can't buy happiness, and I agree. But I can easily make you millionaires."Greiner proposed $300K for 20% equity in the company. She explained, "I understand what it's going to take for me to do all of this," before adding, "I think you guys are heroes, and I think that the product is a real hero."
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But before the duo could make up their minds, O'Leary jumped back in and said, "Can you imagine how much equity you are giving up? Boy, that hurts." O'Leary then tried to lure them towards his offer, but his efforts were in vain. Eventually, Drop Stop sealed the deal with Greiner, and since then, there has been no looking back. According to CNBC, the LAPD tested Drop Stop and reported a reduction in collisions and traffic incidents among officers, leading them to install it in 3,000 patrol cars. Soon after, Greiner’s promise to make them millionaires started coming true.
The outlet also reported that Drop Stop generated over $5 million in sales after their 'Shark Tank' appearance. It also signed a multi-million dollar deal with retail giant Walmart. According to Shark Tank Recap, Greiner also helped them expand into other retail stores, including Bed Bath & Beyond. The outlet further reported that Drop Stop remains the top-selling automotive accessory on Amazon.
