Invis-A-Rack Cargo Management System
NO DEAL
EPISODE SUMMARY
🕓 Air Date: January 27, 2012
Asking For:
$100,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Invis-A-Rack offers an innovative cargo management system for pickup trucks, allowing users to carry various items securely while keeping the truck bed open for other gear.
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Background Story
Donny McCall, founder of Invis-A-Rack, hails from a small town in North Carolina and runs a construction company. The idea for Invis-A-Rack came to him while driving down the Blue Ridge Parkway, inspired to find a solution to the inconvenience of traditional permanent truck racks. His desire to contribute to his community and create job opportunities in his economically depressed hometown motivated him to pursue this venture.
The Product
Invis-A-Rack is a versatile cargo management system that can be easily installed on most pickup trucks. It can hold up to 1,500 pounds and allows users to carry long items like ladders or lumber securely above the truck bed, leaving the bed free for other gear.
The rack can be folded down in less than 30 seconds for convenience when not in use. The company plans to sell directly to retailers and aims to expand its market presence with the help of displays and promotional materials.
How It Went
The company’s position before Shark Tank
In its first year, Invis-A-Rack generated $50,000 in sales, equivalent to approximately 150 units sold. However, the company faces challenges in distribution, as traditional distributors demand too high a price point, making it unfeasible for Invis-A-Rack to provide a competitive product. Donny McCall is committed to manufacturing the product in the United States, despite the higher costs involved. The company currently has $75,000 in debt, and with $50,000 in sales, it has yet to turn a profit.
The Negotiations:
Donny initially sought $100,000 for 10% equity but received no offers from the Sharks. They raised concerns about the business’s capital-intensive nature, distribution challenges, and resistance to offshore manufacturing. Despite Mark Cuban’s admiration for American ingenuity, he ultimately decided not to invest due to the business’s financial constraints and uncertain path to profitability. Donny’s commitment to American manufacturing, while admirable, hindered his ability to strike a deal with the Sharks, who emphasized the importance of competitiveness and scalability in today’s global market.
