Sometimes, seemingly very inconsequential products change people’s lives and earn visionary entrepreneurs millions of dollars. Just because they think quickly and ahead of the rest.
Most entrepreneurial ideas are borne out of adversity. This could be the threat of a disease, difficulty in solving a problem, or an unmet need that makes life uncomfortable. However shrewd entrepreneurs are those who harnessed the challenges before them as a driving force for innovation and growth.
This is the story of Marshall Haas and the big break he made during the COVID-19 pandemic.
In March 2020, as the pandemic shut down the globe, one sector at a time, Marshall’s wife was also pregnant with their first child. Additionally, the lockdowns also set in, closing millions of families in their homes, for an unspecified period. Fearful that his budding e-commerce business, Peel, and his pet hotel business would not survive the new reality, a soon-to-be father panicked.
It is this threat of loss of income and welcoming a child into total emptiness that set Marshall in motion and got him thinking and grinding.
Creating is Product
The COVID-19 lockdowns also came with guidelines and other protocols from the Centers for Disease Control (CDC) on how people should relate among themselves and in their normal way of life. Doors and gas station buttons among others, suddenly became places forbidden from touch, on pain of contracting the virus.
Consequently, came up with a product he called the Touch Tool, a brass keychain hook, made specifically for this new COVID-19 reality. This product allowed people to open doors and press buttons, activities so necessary for everyday life, without touching them by hand to avoid contracting the lethal germs.
In a fierce urgency to create and sell his product while COVID-19 was underway, Marshall went into overdrive. The process of ideation to final product took him two and half days. He worked on the prototypes within four days and by the fifth day went into production. He launched his website on day 7 and achieved phenomenal sales of $50k by end of day 7.
Surprisingly, sales rolled in, he passed the $100k sales two days after launch of the product (day 8) and by the end of day 67, had sold 27,227 pieces of Touch Tool grossing an astronomical $1, 036, 175.
It was a fairytale sales bonanza beyond his wildest dreams.
Chronology of events in his race to the top
Once convinced his idea had great potential to bring in great returns while COVID-19 was underway, the visionary entrepreneur embarked on a crazy timeline. In 7 days, it was all over, and his product was being shipped across the globe.
Day 1: While locked down in his house, he did rough sketches on a piece of paper, an imagination of how his keychain hook could look like. He then emailed his sketch to a factory representative in China asking if they could make the product.
Day 2: a mockup or model of the product sent to the factory representative, triggering a series of back and forth to fine tune the product. On this second day, settled on 2-3 final shapes for 3d printing.
Day 3: Printing of Prototypes and testing of product. Developed a video on the product while in use in a grocery store, elevator, gas station, and pulling a home door handle. This was the proof of concept he needed to take the plunge.
Day 4: Out of the 3 final shapes, chose a final design and sent the CAD file to the factory in China for final pricing.
Day 5: Marshall ordered the first 1000 units of Touch Tool for $4.50 per piece (before factoring in the cost of packaging and freight).
Day 6: Wired 25% deposit to the Chinese company as production deposit.
Day 7: This was the most consequential day for Marshall and his Touch Tool. The product launched on Peel. A mass email sent to Peel’s customer listing announcing the product and the same information was shared in the social media pages. A total of $50K in sales was realized by the end of the 7th day.
A second order was made on the night of day 7 given the massive sales realized this day.
Day 67: 60 days after the launch of Touch Tool (day 67), Marshall had sold 27,227 units of his product generating a gross revenue of $1,036,175.
The Numbers
- The initial costs attributable to the project are 25% of industrial designer time at a cost of $80 = $2,000
- 80% of gross margin on the product excluding other related costs like advertising, website development, credit card fees etc.
Tabulation of Touch Tool Gross Margin
Sales Channels
- Peel, which was used to send the first mass email to get the product out to the world was an existing brand with customers and a dedicated email list. This helped get the word out instantly.
- The press, particularly The New York Times, GQ Magazine, Forbes, Glamour, and many more wrote about the new product, further spreading its name to a very wide audience.
- Once the product had picked up momentum, Marshall embarked on Facebook and Instagram ads.
Reasons why the product achieved phenomenal success
- It played into people’s fear of COVID-19. This was a new product for a new moment of fear. People feared touching surfaces for fear of contracting COVID-19. A product that could therefore help them go about their daily activities without touching them by hand was therefore welcome news.
- The product launch was well timed to coincide with the lockdowns and the accompanying government-issued guidelines on conduct which prohibited touching surfaces to help curb spread.
However, this was not an evergreen product. Its success hinged on the continuation of the COVID-19 pandemic and particularly the government issued protocols. When the government eased the regulations and guidelines and life slowly came back to normal, many people had no further use for the product.
Lessons in Business from Marshall and his Touch Tool.
The thoughtfulness that went in this product and its speedy launch to coincide with the ravages of the COVID-19 pandemic, offers useful lessons in entrepreneurship;
- In the words of Marshall, “You can move faster than you think.” In only 7 days, an innovative product had moved from the ideation stage to a packaged product in people’s homes.
- Marshall also notes that ‘when the world gets scary, get busy.’
- Desperation is the mother of invention; the adage goes. Some of the great ideas that moved the cause of humanity forward, were crafted in times of great uncertainty.
Conclusion on the vision of Marshall and the amazing success of Touch Tool.
In conclusion, Marshall Maas’ story is an example of how adaptability and quick thinking can lead to the path to success. By seizing the opportune moment provided by the COVID-19 pandemic, Maas developed a product, Touch Tool, out of people’s fear and utmost need for safety and hygiene.
This amazing entrepreneurial story speaks to the unique ability to recognize a market need, move swiftly and deliver a quick solution that resonates with consumers. Overall, this is a lesson to aspiring entrepreneurs to look for opportunities in moments of crisis and to never underestimate a simple yet very timely innovation.
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