Ski-Z Before Shark Tank
Skiing is a fun activity that many people partake in during the snowy season. Skiing is so popular that some of its sports are in the winter Olympics. When people are skiing they have to carry their skis around with them for a great amount of time which can be exhausting given that the average weight of a pair of skis is 3-4 kg. This is why Ski-z was created.
Ski-Z is a wheel that can be attached to skis making it possible for them to be rolled on the ground. The wheel is attached to the pair of skis with a Velcro strap and then the skis can be rolled by pushing or pulling them. The ski-z is so small that it fits inside your pocket. The ski-z strap was invented by Nick Palermo and Kyle Allen who started a company with the same name to sell the product.
The ski-z has been around since 2013. However, they have faced so many difficulties that there were years when they could not produce a single unit to sell. Nick and Kyle needed more capital and advice and so reached out to be on Shark Tank. The pair’s request was successful and they were invited to be on the 7th episode of the 10th season.
Ski-Z on Shark Tank
Nick and Kyle went onto Shark Tank seeking $50,000 for 15% of Ski-Z. Nick went first and started by giving a presentation where he showed the challenges faced when using normal skis. Kyle then entered the room pushing skis that had the ski-z wheel attached showing how much easier it was to carry the skis.
Nick then told the sharks that he had been in the ski business for 35 years and had not seen any other invention as effective as the ski-z. Barbara asked if the ski-z would also roll in snow and Kyle said that it would. Kevin also asked if they had a patent and she was told that they had been issued a utility patent.
Barbara wanted to know its cost of manufacture and sales price. She was told that it cost $3.50 to make and its sales price was $19.95. The sharks thought that the margins were very good. Kevin then asked them what their sales had been and if that was their first year in business.
Kyle told them that it was not their first year of business. Their first year of business was 2013 and in that year they had sold units worth $230,000 in 4 months. In 2014, they didn’t sell any units. Nick Palermo said that he was diagnosed with prostate cancer that year so he couldn’t run the business. He added that the cancer was treated and he was already cancer free.
Kyle said that he went through a divorce in 2013 which made him unable to run the business in 2014. In 2015, Kyle had partnered with an oil and gas manufacturer but when oil was discovered in the area the price dropped and he lost his job because of the event.
Barbara then asked what happened in 2016 and she was told that the Louisiana floods of 2016 prevented them from doing any business since they were located in the state. Kyle said that he kept getting knocked down but he was determined to succeed and so kept getting back up.
Kevin then asked what they were expecting for 2018. Kyle said that for 2018 they were expecting to do $575,000 in sales. Kevin asked them how they planned to distribute that amount. Kyle said that they were talking with a distribution company in Denver. Barbara asked them how much they had sold and Kyle said they hadn’t sold anything yet.
Mark Cuban then asked how much they had in inventory and he was told that they had inventory worth $350,000. The inventory had been bought about five years before. Mark Cuban was curious as to where he had got the money to buy $350,000 worth of inventory. He even asked Kyle if he had mortgaged his house.
Kyle said that indeed he had mortgaged his house. Mark Cuban was not happy with the answer. Lori then asked Nick whether he had any shares in the company and she was told that Nick had 25% of the company. Nick had remarried and his new wife had 25% of the company.
Barbara then offered them the amount that they had come asking for, $15,000 for 15% but only if they took it immediately. Kevin and Mark urged them to take the offer. Kyle and Nick then discussed the offer and as they did Mark said that he would simplify things. He then said that he was out.
Daymond then said that he would complicate things and offered them $50,000 for 20% of Ski-Z. Mark urged them to take the deal and Barbara said that she felt offended. They took their time discussing it which offended some of the sharks but Daymond said that he would be available even if Barbara withdrew her offer. Kevin then asked them what they were discussing.
Kyle said that he was concerned about whether Barbara would be available to give more credit such as $50,000 if Ski-z needed the money. Barbara was surprised that they were asking since they already had the purchase orders but she said that she would be available for such. However, they should have made that part of the deal because by asking that they are asking for $50,000 plus another $50,000 as credit for 15% which was dishonest.
Kyle then took the offer. They said that it was an awesome opportunity for their business. It had been an extremely wild ride but it was not going to get any better than that.
Ski-Z Now in 2023 – The After Shark Tank Update
Since the time that they partnered with Barbara, Ski-Z has experienced a tremendous amount of growth. One of the most significant changes is a constant supply chain. The Ski-Z is now available and the company launched a website that is constantly running. Potential customers can now buy their products from the comfort of their homes. On their site, they also provide the retail outlets that stock their product and wholesale contacts for those interested in large purchases.
The ski-z is also now stocked on amazon and has an average rating of 4.3 out of 5 stars. The company is now doing much better than before. Its Facebook page currently has 570 followers and its Instagram page now has 300 followers showing that there is room for growth in social media marketing.
Although the company had temporarily halted operations for more than 5 years it is now operating like a well-oiled machine and in 2021 generated $200,000 in revenue. The product is a relief to those with injuries such as chronic back pain as it has made skiing a possibility they can consider when previously they wouldn’t have dared. It just goes to show that it’s not over until the fat lady sings.