'Shark Tank': Chill-N-Reel sure they'll find other 'sharks' after refusing Robert Herjavec's $300K
While Herjavec noted that the brand was 'selling fun', they couldn't seem to agree on a deal
If you enjoy sipping on a drink while fishing, then Chill-N-Reel has your back. Chill-N-Reel is a "hard-shell drink holder with a handline fishing reel attached comes equipped with 50 ft of 8lb test line pre-wound on the Chill-N-Reel spool." This funky drink koozie lets you drink while you enjoy the great outdoors and catch your lunch while you're at it!
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Chris Diede, Jake Rutledge, Chase Terrell walked on to the show hoping to score a deal of $300k for 10% equity in their company. With a patent on the Chill-N-Reel tech, the sharks were thoroughly amused by the drink koozie that lets you fish. However, they were even more impressed when the trio revealed that they had made $1.3 million in the last 12 months and were on track to make $1.6 million by the end of the year. Retailing from $12.95 onwards, the Chill-N-Reel costs $2.6 to make.
Chill-N-Reel was using most of its money on marketing, with nearly 40% directed towards advertising. So when the sharks found out that they had a net margin of -70k, it put a damper on things. O'Leary said he respected the sales but joked that the product was a 'piece of crap' and thus opted out. The product wasn't exactly investable for Greiner, and thus she backed out. Daymond John noted that while the product was fun, it wasn't fun as an investor, causing him to back out and finally, for Cuban, the net margin issue forced him to step away.
Robert Herjavec liked the idea of 'selling fun', even though he felt there wasn't enough room for him in the deal. With O'Leary suggesting a royalty deal, Herjavec asked for 10% for $300k and a $2 royalty per unit in perpetuity. The trio countered with 15% for $300k instead, offering more equity. Herjavec asked for 35%, while they offered 20%, but he declined that. The trio agreed that they had no deal and walked away without one, confident that they would find 'lots of sharks' outside the show instead.
'Shark Tank' Season 13 airs every Friday at 8/7c on ABC.
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