Patent Attorney and Founder
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Next up is a company that combines two loves into one.
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Hi sharks, my name is Chase Terell, and I’m from Sand Springs, Oklahoma. My name is Chris Dee, and I live in Austin, Texas. This is my son and my brother-in-law, and I’m Jake Rled, the inventor of the Chilling Reel. Today, fishing for $300,000 for a 10% stake in our company. Wow! My dad has solved one of the world’s biggest problems. Hold my beer, I’ve got a fish on. Hold my beer, I got one on too. Jake, hold my beer, I can’t, man, my hands are full over here too. How am I supposed to reel in this fish and hold my beer at the same time? There’s got to be a better way. That’s why I invented the Chilling Reel, the only drink insulator you can fish with, and the only drink insulator with a handline reel on the side.
If you enjoy fishing and know how much of a hassle it is to pack all your gear just to casually fish a lot, obviously, the Chilling Reel was not made to reel in a Marlin. However, what it was made for is nothing short of a real good time. We have the Chilling Reel designed to be easily castable, reelable, and, of course, drinkable. Just pitch it out, grab your slack, tip it back, and start reeling them in cold. We’ve caught bass, crappie, and catfish on the Chilling Reel, but today we’re fishing for sharks. Who’s going to take a bite? Nice, nice.
Where’s the rod? Like, how is the rod? There is no rod, that’s the rod. This is it, LA. With the fish you’re catching, this is good enough. So, this is basically for smaller fish. You’re not taking it that seriously, right? So, how much pound test line is on here? 8 lb test is on there, but actually, I have thrown 50 lb braid on there, and I’ve caught a 16lb blue cat. I caught a 3 and 1/2t hammerhead shark. Really? Yes. If you hold the line and try to reel it, it’ll cut your hand. But if you sit here and use this as your crank, is that in Florida? Yes.
Tell us what’s happening there. Well, I’m reeling a fish in right now. Where’s the fish? He’s coming, he’s coming. That’s a big boy, that’s a big boy, that’s a big boy. I don’t have my phone. I’d pull it out and show you. You can look. I hope you get it. I hope you send it back, right? Oh yeah.
Let’s be clear, though. This is not made for the big guys. It’s for those days when you just want to chill and reel. It’s fascinating. I got to know what happened to you guys to invent this. Okay, here’s the story. My family were on a family vacation down in Florida, and we’re all out in the water drinking a beer, and I look down and there’s fish everywhere. Well, I got to catch those fish, and my buddies looked at me and they said, “Man, you bring a rod out here, you are going to upset everybody out here.” I said, “Hey, watch this.” I didn’t even have to say, “Hold my beer.” I just went in, tied some line onto the bottom of my Koozie, wrapped it around, would come out, pull all the string out, throw it out, catch a fish, reel it in. I just kept spilling my beer everywhere. Did you catch anything? Oh yeah, we were always catching fish.
Jake, what’s your background? I’ve been a Tulsa firefighter for 21 years. Good for you, thank you. So, I have always wanted to come up with something and never did. Did you ever dream you’d be fishing and drinking and ending up on Shark Tank? That’s it.
Why don’t we start with last year’s sales and now what you’re going to do this year? Well, I’ll tell you, the last 12 months we’ve done 1.34 million in sales. Got on this, a lot of chill anglers out there. Was not expecting that answer, surprised by the sales too. What they go on to talk about how this year they’re doing the year they pitched they were doing about, you know, 1.7 or 1.8. They did get a deal from Robert in the end. So, couple things going on there, inventor they mentioned that, and I did check them out. So, I want to showcase this real quick. So, they have their, they got their patent in 2020. The Chilling Reel, this is here’s their homepage, reel in cold. Love it. Reel in cold, love the puns for sure. So, you know, they’re, let’s see, they were talking about a patent earlier. If I go back, um, they got their patent granted. This is a utility patent, and it was, uh, utility patent. You know that because it’s got there’s not a D here, and it’s granted as of July 7th, 2020, to Jacob Rael, Sand Springs, Oklahoma.
And I like to go, you know, I like to look at the pictures, but what’s important with the utility patent, of course, is the written claims, and I would look at that. They’ve got it pretty well drawn, looks professionally drawn. They hired an attorney to do it. First claim is their independent claim is a fishing cooler, fishing cooler, interesting, rising aure, and it’s a container insulating, right. So, like a [ __ ] cozy Koozie, a spool on the side of it, the spool has got to be a conle or frusto frustr conical shape, fishing line attached to it on one end and on a second end attached to a lure. That’s it. So, they did good. I think it’s well done, well described. It’s nice and broad. They can cover any type of cozy, um, as long as there’s a spool on the side. So, that’s my take on the patent. I don’t have anything critical necessarily to say, other than I think one thing they should do is, in order to monetize it a little better, and probably what they ended up doing already since then is assigning it to a company, right now it’s owned by an individual. Way to be able to go B2B and avoid personal liabilities to make sure you’ve assigned.
Yeah, Jie, he’s got the, he’s got the trademark owned by him too as an individual. Okay, yeah, yeah. I’m assuming there was no LLC or Corporation set up at the time that they filed these trademarks and patents. Yeah, um, but yeah, you’d certainly want him to assign those to a company so that he’s not personally, you know, liable for, you know, anything essentially. And I typically in these situations when I see an individual own a trademark application or registration like this, probably the same on the patent side, there’s probably no licensing agreement between, you know, the individual owner and the company that’s actually selling the product, making the product. Yeah. Be right there should be, yeah, you got it, Pierce that corporate veil pretty easily. Did they protect the logo, which we saw that kind of fist jump in the chill? I didn’t, I didn’t see it, um, I just saw chill and real, but they could have separately filed an application to protect the slogan too, the real am in cold, real in cold. Let me, uh, I know he had an interesting spelling on that. Let me real quick search, and, uh, I’ll let you know what I find here. Yeah, take a peek. Uh, Dave, what your reactions there, that, that pitch and the product? It’s a great invention. I, you know, I, I completely understand for the little guys, you know, you’re not going for Marlin out there, you’re just hanging out and catching a buzz and hopefully catching some fish. Yeah, I guess, and it was nice they showed that video, and you can kind of get it, but um, there’s basically no drag on it, right? You know, so you get something big, you’re losing your whole drink probably, you know, it’s just, it’s, but you know, or you can just hang on that. Be it’d be fun, it’d be something. It’s a definitely in that novelty area, I would say. Um, they managed to sell it well.
What they did say later, and I watch the picture I want to go on too far, um, you know, there’s always a backstory. So, to get that million in revenue, they spent 400,000 in marketing. So, it’s a ton of expense, right, just trying to get the product out, doesn’t does not surprise me, yeah, and and the net they were talking in the first year was just 70 grand. Okay, out of all that, and then this year or the year current, the current year they were actually negative profit. So, you know, it wasn’t all looking all that good on the book, um, so Amazon is a, Amazon’s a really tough place to play. I mean, 40% marketing is totally acceptable for most folks on on Amazon, yeah, sharing where you’re at with your product on in terms of product placement or spend on marketing we are and and the, um, our company is, you know, they’re pushing to market it on Amazon as well, but you know, I’m doing some of my own on the side, and um, so I think the company of forces we don’t have the money to spend 400,000 on right, you know, is it true on a percentage-wise would you be, is that fair, you know, yeah, 30 40 plus percent, yeah, goodness makes you wonder, yeah, I mean, I mean in terms of profitability on these product kind of companies, right, if you’re, if you’re making 10% on a product, yeah, right, margin profit at the end of the day, like that’s, that’s good, you make 20, it’s like incredible, right, you guys doing that for Tiger taale, yeah, you know, right around right around 10 to 15 was kind of where we ended up being before we sold it, got it.