ReadeREST – Magnetic Clip for Glasses
DEAL
EPISODE SUMMARY
đź•“ Air Date: February 24, 2012
Asking For:
$150,000 for 15%
Investor:
Lori Greiner
Deal:
$150,000 for 65%
PRODUCT SUMMARY
ReadeREST is a magnetic eyeglass holder that eliminates the need for chains or clips, preventing loss, dropping, and damage to glasses.
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Background Story
Rick Hopper, the founder of ReadeREST, identified a common frustration among eyeglass wearers—losing, dropping, or damaging their glasses. He noticed the inconvenience of traditional solutions like chains or shirt pockets. Rick, with a background in design, tinkered with various prototypes until he developed ReadeREST, a magnetic clip that securely holds glasses in place. Despite initial challenges, Rick’s innovative solution gained traction, leading to a successful market test and securing patents for his product.
The Product
ReadeREST consists of a stainless steel back plate embedded with magnets that can be discreetly attached under clothing. A stainless steel front clip with magnets aligns with the back plate, securely holding eyeglasses or sunglasses in place.
The product offers convenience and peace of mind, allowing users to engage in various activities without fear of losing or damaging their glasses. ReadeREST is available for purchase online and retails between $9.99 and $19.99, with higher-priced variants featuring Swarovski crystals.
How It Went
The company’s position before Shark Tank
ReadeREST generated $65,000 in sales during a market test phase, indicating strong consumer interest. However, production constraints limited further sales expansion. Rick personally oversees production, hand-gluing over 100,000 magnets himself. Despite challenges, ReadeREST holds a utility patent and a registered trademark. The company aims to penetrate retail markets, anticipating significant profits once scaled, projecting $6 million annually in gross profits when stocked in 5,000 stores.
The Negotiations:
Rick initially sought $150,000 for 15% of his company but faced skepticism due to his valuation. Lori Greiner offered $150,000 for 65%, emphasizing her expertise in marketing and retail. Rick hesitated, considering the substantial equity relinquishment. Mark Cuban expressed reservations about the product’s valuation but entertained a deal. Ultimately, Rick accepted Lori’s offer, impressed by her commitment to making him a millionaire. Despite initial reluctance, Rick trusted Lori’s vision and expertise, sealing the deal for 65% equity.
