World Record Striper Company
DEAL
EPISODE SUMMARY
🕓 Air Date: May 1, 2015
Asking For:
$75,000 for 20%
Investor:
Mark Cuban
Deal:
$80,000 for 33%
PRODUCT SUMMARY
The product is the Greg Myerson RattleSinker, designed to attract big fish by mimicking the sounds of their favorite foods.
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Background Story
Greg Myerson, the founder of the World Record Striper Company, hails from Wallingford, Connecticut. A passionate and experienced fisherman since the tender age of 2, Greg’s journey in fishing has been nothing short of remarkable. His early forays into the sport, including creating a fly from his grandmother’s parrot feathers that led to catching a trout and earning him front-page recognition in the town newspaper at the age of 8, set the stage for a lifetime dedicated to angling. Greg’s expertise in fishing reached new heights when he achieved the extraordinary feat of catching the 82-pound world-record striped bass, one of the most coveted records in the fishing world.
This accomplishment came after 29 years of honing his skills, making him a respected figure in the fishing community. The inspiration for the product, the Greg Myerson RattleSinker, stemmed from Greg’s deep understanding of fish behavior. Recognizing that fish are sound-driven and often rely on vibrations and acoustics to locate food, Greg conceptualized a fishing sinker that mimics the sounds of the prey, effectively tricking the fish into approaching the bait.
The RattleSinker’s development became Greg’s secret weapon during his fishing expeditions, leading to not only the world-record striped bass but also three additional world records. With a background deeply rooted in hands-on fishing experience and a keen understanding of fish psychology, Greg embarked on the journey of turning his innovative fishing technique into a marketable product. This endeavor marked the beginning of the World Record Striper Company, and Greg’s appearance on Shark Tank signaled his aspiration to bring the RattleSinker to a broader audience.
The Product
The flagship product of the World Record Striper Company is the Greg Myerson RattleSinker, a revolutionary fishing sinker designed to attract big fish by mimicking the sounds of their favorite foods. The RattleSinker operates on the principle that fish, being sound-driven creatures, are lured by the vibrations and acoustics resembling the sounds of prey. This innovative fishing accessory is a game-changer for anglers seeking to enhance their fishing experience.
The RattleSinker is uniquely crafted to emit a distinct rattling sound as it moves through the water, creating a compelling auditory allure for nearby fish. This feature effectively tricks the fish into believing there is potential prey nearby, increasing the chances of a successful catch. The product is not limited to a specific type of fish, making it versatile for various fishing environments.
Currently available for purchase through fishing trade shows and direct sales, the RattleSinker is retailed at $6.35 for a 5-ounce unit. With a wholesale cost of $2.50 per unit, the RattleSinker offers a competitive price point for both consumers and potential retailers. As the World Record Striper Company continues to expand its distribution channels, the RattleSinker is poised to become an indispensable tool for anglers seeking a reliable and effective fishing accessory.
How It Went
The company’s position before Shark Tank
The World Record Striper Company, founded by Greg Myerson, is still in the early stages of development, with a focus on the innovative fishing product, the RattleSinker. As of now, the company has experienced modest success, generating approximately $55,000 in sales over the past three years. The primary sales channels have been fishing trade shows, where Myerson personally promoted and sold the RattleSinker. The product is yet to secure widespread retail distribution, and there is no dedicated retail packaging available.
Greg Myerson has been the driving force behind the company, actively involved in product development, manufacturing, and sales. The company’s structure appears to be relatively lean, with Myerson initially crafting the RattleSinkers himself in his basement. However, recent developments include obtaining intellectual property protection and trademarking the product’s name. At present, the company does not have established partnerships or collaborations with major players in the fishing tackle industry. Myerson’s strategy has been focused on personal promotion and direct sales at fishing trade shows.
Funding for the company has primarily come from the sales of the RattleSinker, as there is no mention of external investors or financial backing. The company’s financial position, while demonstrating steady sales growth, is still limited in scale. With a retail price of $6.35 and a wholesale cost of $2.50 per unit, the profit margins are reasonable, but the company’s overall profits and losses are not explicitly disclosed. With the recent deal made on Shark Tank, where Mark Cuban offered $80,000 for a 33% stake, the company’s financial outlook may see significant improvements.
The Negotiations:
In the Shark Tank negotiation, Greg Myerson, the founder of the World Record Striper Company, entered the tank seeking $75,000 in exchange for a 20% stake in his company. The product in focus was the RattleSinker, a fishing innovation designed to attract big fish by mimicking the sounds of their favorite foods. The pitch emphasized Myerson’s personal success as a fisherman and showcased his world-record catch using the RattleSinker. The negotiations kicked off with Kevin O’Leary offering $80,000 for a 33% stake, leveraging his experience with a similar fishing product investment.
Mark Cuban, intrigued by the potential, countered the offer with the same amount of $80,000 but for a slightly lower equity share of 20%. Lori Greiner and Robert Herjavec bowed out early, leaving only O’Leary and Cuban in the running. The negotiation intensified as Myerson hesitated, seeking to hear additional offers. O’Leary warned that his offer would disappear once Cuban made his proposal. Sensing the pressure, Cuban proposed an investment of $80,000 for a 33% stake, echoing a deal he made with another fishing-related company, Shell Bobbers.
Feeling the urgency and the weight of the moment, Myerson ultimately chose to accept Cuban’s offer, securing the $80,000 investment and partnering with Mark Cuban at a 33% equity stake. The deal marked a crucial turning point for the World Record Striper Company, opening doors for potential growth, retail expansion, and increased market visibility with the backing of Cuban’s expertise and resources. The negotiation showcased the strategic decisions and delicate balance founders often face when presented with multiple offers from the Sharks on Shark Tank.
