Lite-Netics
NO DEAL
EPISODE SUMMARY
🕓 Air Date: December 13, 2013
Asking For:
$125,000 for 20%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Lite-Netics offers magnetic light strands for easy and quick holiday decorations without the hassle of tangled wires.
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Background Story
Lite-Netics, based in Lubbock, Texas, was founded by Shawn Genenbacher, an entrepreneur with a passion for holiday decorating and innovation. Shawn’s journey with Lite-Netics began out of sheer frustration during the holiday season when traditional light strands led to tangled messes and time-consuming setups. Growing up in Lubbock, Shawn had always been involved in holiday decorating, but it was his experience as a homeowner facing the annual ordeal of untangling and hanging lights that sparked the idea for a better solution.
With a background in engineering and a knack for problem-solving, Shawn set out to revolutionize the holiday lighting industry. Drawing inspiration from magnetic technology and his own experiences, he envisioned a simpler, more efficient way to decorate for the holidays. After extensive research and development, Lite-Netics was born, featuring magnetic light strands that could be easily attached to metal surfaces without the need for clips or screws.
Shawn’s entrepreneurial spirit and determination drove him to pursue a patent for his innovative product, despite the challenges of competing in a market dominated by traditional light strands. Through hard work and dedication, Lite-Netics gained traction, attracting attention from retailers like Home Depot and professional installers seeking a more efficient solution for holiday decorating. Shawn’s vision for Lite-Netics goes beyond providing a convenient product; it’s about enhancing the holiday experience for families and bringing joy to the season.
The Product
Lite-Netics offers magnetic light strands, a revolutionary solution for hassle-free holiday decorating. Each strand features sockets embedded with powerful magnets, allowing for effortless attachment to metal surfaces such as gutters, railings, and fences. The innovative design eliminates the need for traditional clips, tabs, or screws, making installation quick and easy.
Lite-Netics light strands are durable and weather-resistant, suitable for both indoor and outdoor use. They come in various lengths to accommodate different decorating needs, from small residential displays to large commercial installations. With Lite-Netics, users can decorate their homes or businesses in minutes, saving time and frustration during the busy holiday season.
The product’s magnetic technology ensures a secure and stable attachment, even in windy conditions, providing peace of mind for users. Additionally, Lite-Netics offers versatility in design, allowing for creative and customizable lighting arrangements.
Lite-Netics light strands can be purchased directly from the company’s website or through retailers like Home Depot. Pricing varies depending on the length and features of the strand, with options available to suit different budgets and preferences. While Lite-Netics may have a higher upfront cost compared to traditional light strands, its ease of use, durability, and time-saving benefits make it a worthwhile investment for anyone looking to simplify their holiday decorating experience.
How It Went
The company’s position before Shark Tank
Lite-Netics, while innovative and promising, faces challenges in scaling its operations and reducing manufacturing costs. Founded by Shawn Genenbacher in Lubbock, Texas, the company has been in business for four years, focusing on targeting professional installers and commercial builders. In the last year, Lite-Netics reported sales of $118,000 with a net profit of $38,000. However, the company’s growth has been limited by its higher price point compared to traditional light strands and the need to compete with lower-cost alternatives.
Lite-Netics is currently in negotiations with retailers like Home Depot to expand its distribution network and reach a wider customer base. However, concerns remain about the product’s affordability and market competitiveness. Despite these challenges, Lite-Netics remains committed to providing innovative solutions for holiday decorating and is exploring opportunities to improve cost-effectiveness and expand market reach in the future.
The company’s current structure includes Shawn Genenbacher as the founder and CEO, driving the vision and strategy of Lite-Netics. While Lite-Netics has secured a patent for its innovative product, it faces challenges in securing funding for further growth and development. The company relies on its own profits and occasional investments from private investors to fund its operations and expansion efforts. However, with increasing competition and the need to lower manufacturing costs, Lite-Netics may seek additional funding or partnerships to achieve its growth objectives.
The Negotiations:
In the negotiations on Shark Tank, Shawn Genenbacher sought $125,000 in exchange for a 20% stake in Lite-Netics. However, despite showcasing the product’s innovative features and potential market appeal, the Sharks expressed concerns about the product’s high price point and market competitiveness. Lori Greiner highlighted the challenge of manufacturing costs associated with magnets, while other Sharks questioned the product’s compatibility with various home exteriors and the viability of its retail market.
While Daymond John and Robert Herjavec expressed interest in exploring licensing opportunities, Lori Greiner offered a partnership deal with a reduced equity stake. Despite the Sharks’ suggestions and offers, Shawn ultimately declined all offers, citing his commitment to his current business strategy and ongoing negotiations with potential wholesalers and distributors.
While he acknowledged the valuable insights provided by the Sharks, Shawn opted to pursue alternative avenues for growth and expansion, indicating his determination to overcome the challenges faced by Lite-Netics in the competitive holiday decorating market. Ultimately, Lite-Netics left the Tank without a deal, but Shawn remained optimistic about the company’s future prospects and his ability to navigate the challenges ahead.
