Shark Tank Update
Shark Tank Pitch
Drop Stop Shark Tank Update
Published:
4m
Los Angeles, CA
| Name | Drop Stop |
|---|---|
| Main Presenters | Marc Newburger and Jeffrey Simon |
| Presenter Image | |
| Product Image | |
| Last Known in Business | 10/23/2022 |
| Main Location | Los Angeles, CA Loading Map |
| Order Shown in Episode | 1 |
| Final Deal | Offer made from sharks |
Drop Stop Shark Tank Pitch
Marc Newburger was driving in Los Angeles when he dropped his phone down the crack between the seat and the center console. As Marc reached for his phone done the "Carmuda triangle" he swerved into the sidewalk nearly killing a guy who superman dove out of the way.
Marc was determined to solve this problem that nearly everyone has experienced. Marc Newburger partnered with Jeffrey Simon to create Drop Stop, a cushion that fills the gap and prevents items from falling into the "black hole."
Drop Stop has sold 130k sets equating to $1.3 million in revenue since 2009 (roughly three years). This year Marc and Jeffrey have done $300k in revenue with a $50k profit and as I understand it will do an additional $500k in revenue with a $260k profit in the fourth quarter.
Drop Stop has been on QVC 42 times (I suspect Lori would be familiar with a recurring product like that but who knows. Who watches QVC anyway?). Kevin makes a royalty offer along with his stupid giving-up equity pitch. Lori makes a serious offer that Marc and Jeffrey accept. Lori suggested hiring more staff and focusing attention on the untapped European market.
Offers
| Made By | Label | Sharks Part of Deal | Summary |
|---|---|---|---|
| Company | Offered | $300k for 15% of company | |
| Sharks | Out | Robert Herjavec | Out |
| Sharks | Out | Daymond John | Out |
| Sharks | Out | Mark Cuban | Out |
| Sharks | Offered | Kevin O'Leary | $300k for 0% of company and $2 royalty |
| Sharks | Deal | Lori Greiner | $300k for 20% of company |
| Sharks | Offered | Kevin O'Leary | $300k for 0% of company and $2 royalty until $300k recouped it drops too $1 |
Mark Cuban
Out
Daymond John
Out
Kevin O'Leary
Offered
Lori Greiner
Made Deal
Robert Herjavec
Out
Updates in Shark Tank Episodes
| Update Season | Update Episode |
|---|---|
| 5 | 10 |
| 9 | 13 |
Drop Stop After Shark Tank
cnbc.com https://www.cnbc.com/2017/12/20/how-2-friends-turned-shark-tank-backed-drop-stop-into-a-24m-business.html wrote an article about Drop Stop in 2017. Marc and Jeffrey were in Los Angeles with hopes of being movie producers and found they made better friends than rivals. Marc and Jeffery were both health coaches and played poker to make rent. Eight friends gave Mark and Jeffrey start-up money totaling around $750k and Marc and Jeffrey promised to pay each friend $1 million at the same rate of withdrawal from the company that Marc and Jeffrey took.Link Preview
cnbc.com
According to the about us https://www.buydropstop.com/info/about-us https://www.buydropstop.com page on the Drop Stop website, buydropstop.com Link Preview
about us , Marc and Jeffrey raised seed money from some close friends, which allowed them to hire a design team to turn their prototype into a viable product. They also had friends help out for free with goodwill or hopes of a future return on their efforts. They were not willing to forgo high quality to produce a cheaper product.Link Preview
buydropstop.com
What they anticipated to be a quick success became Marc living on Jeffrey's couch as they developed Drop Stop. Shark Tank had reached out to them two years prior to going on, but Marc and Jeffrey delayed going on until they had Drop Stop in a sound stage. Marc and Jeffrey apparently went into the hall at one point to talk about Lori's offer that was 5% higher than what they asked for (seriously?). The Drop Stop website got 65k unique visitors and air night and did $230k in revenue with an additional $250k from two QVC appearances.
Marc Newburger and Jeffrey Simon did an interview https://www.sharktankblog.com/drop-stop-update with Shark Tank Blog about Drop Stop after airing on Shark Tank. Apparently, Drop Stop was the first Shark Tank product to get approval to reveal the deal outcome before the episode aired due to an opportunity to promote Drop Stop on The View, which led to $122k in sales before Shark Tank aired.Link Preview
interview
In season 5, episode 10, Mark and Jeffery updated us that Drop Stop did $5 million in sales in the five months following Shark Tank, with projections of $12 million for the year. They got an order to put Drop Stop in 3500 Walmarts valued at $2 million.
Drop Stop was featured in season 1, episode 4 of Beyond The Tank, in 2016. Drop Stop had done over $10 million in revenue in the year and a half following their Shark Tank appearance. Marc and Jeffrey, however, hadn't taken a salary and were overwhelmed and stressed with knockoffs popping up.
At one point they had to pay a $350k loan back to a friend that required Jeffrey to withdraw the rest of his inheritance money at a huge penalty to keep Drop Stop alive. In 2017 has done $24 million in lifetime sales and Marc was still sleeping on Jeffrey's coach. While profit of the company was over $4 million lifetime they were far from paying their friends their promised money.
In 2022 Drop Stop sells through Amazon and retail stores like Walmart, Target, and Bed Bath & Beyond. On Amazon, there are over 50k reviews averaging an excellent rating. Their Twitter, @dropstop https://x.com/dropstop, actively posts. I found no update past 2017 on the financials of the Drop Stop or if Marc is still living on Jeffrey's coach in 2022. If so perhaps Marc has at least improved to a "really nice" couch.Link Preview
@dropstop
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