Derek Pacque is the founder and the CEO of Coat Chex as revealed on Shark Tank. Coat Chex is a franchise ticketless coat checking system for events. Derek has been on ABCs Shark Tank which is season 4, where he refused a $200,000 investment deal from Mark Cuban(a Billionaire investor). The moment he turned down the deal happens to be the rarer and more unusual situation in history as far as Tank is concerned. During the interview, Derek talks about how he began his company and the reason he turned down the deal.
The origin of Coat Chex
The idea behind CoatChex originated in the bars and nightclubs of his college town, Bloomington, Ind. He loved to go out with his friends, but he wondered whether to go with a coat or not since coat check stations were not available in the local venues. There was a time when he lost his coat. He developed the urge to come up with something that could curb theft cases.
Derek consulted the bar owners on the reason they didn’t own and offer coat checking services. Often bar owners viewed coat checking as time-consuming, too liable, and also little additional revenue to be worth the move. This is what motivated him to start Hoosier Coat Chex LLC, a ticketed system running in several local bars.
I began to learn towards gaining experience in the industry. Hoosier CoatChex nourished and made $90,000 in sales with 50% profit margins. One thing that distinguished this system is the uniqueness of tickets. I also began thinking of ways to stabilize the coat check system and make it easier to use. It was evident that the company had to undergo a revolution. In December 2021, I joined hands with my business professor Gerry Hays and at last, we worked together to invent and improve what we now call CoatChex
Coatchex
It is a company that is a comprehensive, ticketless Digital Coatchex system, turnkey system, and Mobile Coatchex keg. It allows The coat check stations to be operated and be more manageable at any venue. Coach is focused on innovation and bringing value through the technology that has been abandoned for decades. This, therefore, makes it a hassle-free solution that is efficient for a coat check station.
The reason why I went to the show was to answer the question “why wouldn’t we?”.it was also a way of pitching to sharks to gain popularity.
Ever since going to the show, the company has received hundreds of requests. The requests are towards the use of the products in different venues and events literally all over the world.
Advice to Entrepreneurs
Besides knowing your business and industry there are some things you need to consider and have a good grasp of before heading to “sharks” on the show. you are supposed to have a strong faith in your valuation and also describe it. To add on, you need to know what your target is in any partnership is. You should know if you need a partner or money. Additionally, you need to explain the solid ownership of the company. You need to know the business’s worth and its target.
Expectations from CoatChex in about 5 to 10 years
Currently, we are focused on signing new deals with clubs, nightclubs, events venues, and bars across the Midwest. Several contracts and deals are on board and have hope for improvement. We see CoatChex as a vital option for several investors and entrepreneurs who want to start a station. We are also planning to roll out the bailing system to other scenarios, including a let parking and dry cleaning.
Lesson Learned from the experience at Shark
Building a company is not done by a single person. It’s so nice to include several people who believe in business and also believe in your ambitions. You should have the right team to have a better chance to build a business that lasts.
Derek’s definition of success
Success is being happy and solving problems while reaching life targets.
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