Necessity and frustration are sharing the roles of mothers of invention when it comes to a theft-protection household device produced by a Winston-Salem entrepreneur.
Kathy Sides, co-founder of Loxx Boxx with her husband Rod, invented the packaged goods-threat protection devices in large part after she and family members had been victims of “porch pirates” stealing delivery items.
That includes Christmas presents sent by her parents to their grandchildren in December 2017. Sides said the contents of some gifts were strewn across her yard.
“Porch thefts had happened enough that I went home and I said ‘OK, we’ve got to do something, that it’s ridiculous,’” Sides said. “We shouldn’t have to put up with this.”
Rather than look for retail security options, Sides began designing and developing her own prototypes that resulted in the first Loxx Boxx products for porch use. It offered a push button for access to the delivery driver and a key for the homeowner.
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But while the early versions were serving their purpose as a secure device against theft and weather, Sides knew they were limited in terms of technology.
“With a push lock, once a package was in there, another package could not be delivered, so it was a work in progress, especially for customers who had multiple deliveries in a day,” Sides said.
As app technology became more accessible, the next versions of Loxx Boxx products offered customers the ability to monitor when a product had been delivered and placed in the device, as well as be alerted in case of an attempted theft.
It also allows customers to coordinate and track delivery times with most door-to-door shipping carriers.
“Finally, technology kind of caught up with where we wanted to be,” Sides said.
“We have Wi-Fi from the time the package is sent from the warehouse until it’s delivered into their box and they get a notification.
“Once we were able to get the digital lock that could communicate with our app, we knew that we could take something to folks that we felt confident would actually protect their packages.”
Loxx Boxx details
Sides said her customer base is pretty varied, but does tend to be favored by retirees and single-family homeowners. Most customers have had a package stolen more than once.
More than 400,000 delivered packages have been protected to date by Loxx Boxx boxes, she said.
Loxx Boxx offers two sizes — five and eight cubic feet of volume — and six colors. The smaller version retails for $309, while the larger is $359.
The boxes are made in Vietnam and the app developed in Raleigh.
Sides said there are about 5,000 Loxx Boxx products in service currently, many purchased through word of mouth. The current goal is to reach 100,000 products.
“We’re really trying hard to make it affordable for every family in North Carolina to be able to have,” Sides said.
They are made with 16 gauge steel with temperature controls, a one-year warranty and free monitoring services for the first 30 days after purchase.
There is a $3.99 per month app fee for Wi-Fi enabled products, and a $5.99 per month app charge for LTE/cellular enabled products.
As an added consumer enticement, the company offers a $500 safe-receipt guarantee.
A version with a solar panel means the box is not bound to a porch, but can be placed curbside, although Sides said the porch version has higher demand.
Capitalizing on e-commerce
Sides said she is confident the appeal of Loxx Boxx will continue to grow because “online shopping shows no signs of slowing.”
“Working with carriers, retailer and credit card companies to receive a refund or locate a stolen package is a high-effort, low-reward process,” Sides said.
Sides said she read in a Capital One report on theft that one in every six North Carolina residents loses at least one package per year to porch or mailbox theft.
There is no specific state law directed at packaged delivery theft. A package valued under $1,000 is considered as a larceny-theft, which is a misdemeanor.
“Most people don’t realize that they need a solution to home deliveries because they think it’s not going to happen to me,” Sides said.
“We think we live in a safe neighborhood. But, when it happens to you, you just sort of feel like you’ve been invaded a little bit.
“You can have your doorbells ring and photographs from where your packages have been placed at your home,” Sides said. “But, the police just don’t have the time to go and follow up.”
Sides said as porch theft increases, “we all end up kind of paying for it in the long run because retailers are gonna pass their increased costs along in their prices.”
Customer base
Sides said effective use of Loxx Boxx “falls on the homeowner to educate their delivery drivers on how to access the products.
“When you make a purchase, you get a tracking number,” Sides said. “You take the last four digits of that and share it into the app.
“When you are checking out, you can say ‘please place in my Loxx Boxx.’ It works for every carrier, whether USPS, UPS, Amazon, FedEx.”
Sides said coordinating with delivering carriers is most effective when it’s the same driver, on their route.
“The access code (to the Loxx Boxx) can only be used one time and the carriers really like that.”
“We’re always trying to keep up with the latest trends and what is out there, and constantly updating our software,” Sides said.
“We already do offer return with USPS, and we’re in the process of trying to work through being able to do that with UPS, FedEx, Amazon, which I think will really help folks.
“That’s the really cool thing about our product is we can continue to grow.”
Customer appeal
The digital aspects of Loxx Boxx may be its best selling point, according to Roger Beahm, a marketing professor at Wake Forest University.
“While the company is not the only provider of a secure at-home package delivery system, its use of innovative technology through its lock and app can give it a competitive advantage,” Beahm said.
“It can appeal to consumers who want both security and convenience when it comes to their home deliveries.”
Beahm said offering customers peace of mind with online shipping can be “an emotional benefit.”
“It can make this home delivery security considerably more valuable than just the cost of the item the shopper purchased,” Beahm said.
“Anyone who has had a package stolen from their porch is left with feelings of frustration and vulnerability — even though they inherently knew when they ordered the item that this risk was always there.
The need to bring added security to the last mile in at-home delivery is something online shoppers are learning, and that it’s something they themselves can control.
“Said another way, it’s insurance against suffering any loss.”
Beahm said the $500 reimbursement guarantee is a plus considering the challenges of getting retailers and credit card companies to cover the loss from an at-home delivery theft.
“Not only does it help reduce concern over the risk of some financial loss, it also adds credibility to the product’s claim for protection against theft itself, noting the manufacturer is willing to stand by their product up to that level of reimbursement,” Beahm said.
Beahm said Loxx Boxx’s challenge is creating widespread awareness of its product and its features and benefits.
“It’s not enough for a brand or company to have a website, or to even be listed with an online retailer,” Beahm said.
“If consumers aren’t familiar with a brand, and don’t have judgments and feelings about it, they’re typically not going to buy it, especially if it requires an ongoing subscription.”
Beahm said there’s also “seems to be plenty of opportunity to partner with retailers, much as the delivery companies themselves have done since the advent of home delivery. “
“Partnerships with delivery companies and retailers, combined with testimonials from satisfied customers, could allow a company like Loxx Boxx to increase its rate of household penetration even faster going forward.”