jpoint

It's been nearly 13 years since I tested the water for a new jack stand by sharing it with readers on this forum. When I invented Jackpoint Jackstands I was looking for a solution to the problem of unstable jack stands I was using at the track when I had to change some front rotors that had warped. I initially thought I would sell maybe 25 pairs to friends and racing buddies and that would be it. When I was told the original tool for casting the stands in aluminum would probably only make about 50 parts I said, "I'll never need more than that". First - I must say thank you to the readers here. At first, some folks were enthusiastic but others were quite critical. The variety of opinions kept me thinking but also push me forward. I sold my first pair of jack stands at the Porsche Parade in 2010 and sold several pairs a week out of my basement for years. I met Neil - publisher of Skinned Knuckles Magazine and we became friends. He took me to Jay Leno's Garage and we did a video with Jay - who was unbelievably nice. He gave me permission to insert the video in my home made website and lifted the visibility of my brain child. Neil passed away and I lost a true friend.
Along the way - an engineer at Tesla saw the stands discussed in a Rennlist forum and contacted me. That was nearly 5 years ago. Tesla indicated they were interested in using the stands for mobile service applications and would need a few hundred jack stands. That was about 7,000 jack stands ago. I moved the "business" out of my basement and haven't been able to keep up with demand since then. What started as a design for my Porsche has turned into a standard service tool for EV's. I'm not complaining but my Porsche customers have been on long wait lists - as have customers with BMW's, Corvettes, Audi's, and just about every kind of car out there. I've shipped jack stands to places I had to look up on the map because I'd never heard of them.
It's been really rewarding growing a company from a cardboard model. However, I'm approaching 70. I'm starting to realize the business might outlast my ability to run it or at least work it on a daily basis. So I approach the question of what to do. This isn't a solicitation for buyers. It's the full circle of where I started. I heard from Rennlist members and readers when I started out and the jack stand was a spark of light in my dark basement (I actually woke up in the middle of the night and made the original cardboard model in my pajamas). A Rennlist reader at Tesla pulled me out into the daylight of the business. Now I consider a not too distant sunset. Not closing the business - rather how to make it outlast my ability to unpack, label, and ship 600 pound pallets of jack stands. Do I keep it and try to grow it to a size that workers can run without me or transition it to others who will take it where they want it to go?

ldamelio

Fiirst of all, fabulous and ingenious product. I have a set recently acquired off the Rennlist classifieds - would have purchased new but as you indicated, backordered..

As to what to do, I would say that it depends on your energy level at this point in life. Have you considered selling the patent rights to a larger auto parts/tools company?

Pappagray

Find a buyer. Years of sales history, not being able to keep up with demand. The right equipment supplier will see it and capitalize.

ldamelio

Shark Tank!! Just kidding. I suspect they would find it too niche.

chassis

This. Approach manufacturers of jack stands. Or hire an investment banker to market and sell the company for you. IBs commonly charge work fee (up front) + success fee (after closing).

jpoint

I actually submitted to Shark Tank in one of its early seasons and was rejected. I'm not sure what they'd say today. On one hand - still appears to be a niche product. On the other hand - the niche includes designation as mandatory service equipment for Tesla, also in use by Lucid Motors, and in limited use by Nissan. Imagine the possibilities of owning the patents for the jack stand designated for use on EV's. Some shark might bite but I don't really have the time to go through that process. My wife wanted to do Family Feud years ago. From audition to taping was about 18 months. In addition - if you've seen the video I did with Jay Leno you know I'm probably not much of a made for TV kinda guy. Steve Harvey made fun of my lawyer like answers on Family Feud but that just made for good comedy.

jpoint

Good suggestion. I have spoken to a couple brokers and met with a very large jack stand importer in the past. The importer was intrigued but there are a couple things I hadn't considered. 1. Importers generally are set up to import. Moving the domestic manufacturing off shore can be done but - even off shore the stands are not cheap to make. I had an importer that wanted to make a version for distribution to Costco and needed to make the manufacturing numbers work. They contacted me during evaluation about my test loads on a single jack stand (at the time 8,000 - 10,000 lbs). They were shocked - using the manufacturing they anticipated - test loads were below 2,000 lbs. at initial yield. The current product is tested at 10,000 - 15,000 lbs. Maybe that's overbuilt but it let's me sleep at night. 2. The thing I really hadn't thought about is this is a replacement product for traditional jack stands. The importers are heavily invested in the status quo so there's hesitation to take on a product that could cannibalize the existing product line of traditional jack stands.

That said, I am looking for companies that makes specialty automotive tools for the industry - i.e. tools that are special for servicing a particular car or marque. For example - I need to find the companies that makes the jacks that used to go in the trunks of a BMW or Mercedes etc. These jacks were specific to certain cars so my jack stands might be right in line with their manufacturing vision.

jpoint

Thanks for the suggestions. All are welcome and keep me thinking of options or new directions. I'll keep looking while I'm processing and shipping and trying to catch up with demand.

chassis

You mentioned patents but didn't specifically state which patents, or whether you have patents. Are there patents or other IP on this product?

At a high level without disclosing confidential information, what is the basic manufacturing process?

jpoint

The jack stands have 4 patents and an incontestable trade mark. They are cast aluminum. Currently sand cast but they could also be tooled for permanent mold equipment. The jack pads are cast using a modular pattern to accommodate 5 different pad types.

chassis

What is the expiration year of the latest-expiring patent?

chassis

Some options you probably have already thought about:

1. continue leading the business yourself until you are too worn out to do it anymore, then wind it down having made a great run of it.
1a. wind it down now, having made a great run of it.

2. engage an investment banker to find a buyer

3. Set a plan to grow the business and for your personal exit. Start by recruiting your successor who will eventually take over the business from you as owner. Search out someone younger than you and more qualified on paper than you. Hire the person with the mandate to grow the business. Set a fair cash (salary+bonus) compensation with attractive equity grant that is earned over time with successfully accomplished growth milestones. I would seek someone with a Sales-oriented background. Operations and supply chain can be outsourced to China, India, Poland, Turkey or Morocco, if it helps the business. Phase 2 of the new owner's mandate could be to develop the operations and supply chain organization to outsource manufacturing as previously noted.

wdb

First of all congratulations on being where you are at the moment! Second of all, please no China. The US needs people like you creating manufacturing jobs in this country. Your product is good enough to withstand the probable extra cost and you'd be doing the nation a favor.

LimeyBoy

Sorry no suggestions but wanted to say congrats for accomplishing something many do not, you got a solid and cool idea through to market.

jpoint

The patents expire in 2030. The trademark does not expire.