Ski-Z Rolling Ski Carrier
DEAL
EPISODE SUMMARY
🕓 Air Date: December 2, 2018
Asking For:
$50,000 for 15%
Investor:
Barbara Corcoran
Deal:
$50,000 for 15%
PRODUCT SUMMARY
Ski-Z is a portable caddy for skis that fits in your pocket, making it easy to transport skis to and from the slopes.
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Background Story
Nick Palermo and Kyle Allen, hailing from the picturesque town of Aspen, Colorado, share a passion for skiing that led them to create Ski-Z, a revolutionary solution to the inconvenience of lugging heavy skis to and from the slopes. With a combined experience of 35 years in the ski industry, Nick Palermo brought a wealth of knowledge and insight to the table.
The genesis of Ski-Z emerged from the founders’ firsthand frustration with the cumbersome nature of skiing equipment. Recognizing a gap in the market, they sought to develop a product that would enhance the overall skiing experience. Ski-Z was born out of a desire to make skiing more accessible and enjoyable by addressing the practical challenge of transporting skis.
The founders, undeterred by the obstacles encountered in their personal lives, embarked on a journey to bring Ski-Z to the skiing community. Despite facing setbacks in 2014, including Kyle Allen’s battle with cancer and Nick Palermo’s unexpected divorce, they demonstrated remarkable resilience. The tumultuous years that followed, marked by financial struggles and the devastation of a major flood in 2016, did not deter their commitment to Ski-Z.
The Product
Ski-Z, a compact and ingenious invention by Nick Palermo and Kyle Allen, is a game-changer for skiing enthusiasts. Designed as a portable caddy for skis, Ski-Z’s functionality is as simple as it is revolutionary. Equipped with a convenient Velcro strap, Ski-Z easily attaches to the front of skis. Its standout feature is the incorporation of wheels, allowing skiers to effortlessly roll their skis straight to the slopes.
The benefits of Ski-Z are multifaceted. It eliminates the hassle of carrying heavy skis, offering skiers a convenient and efficient way to transport their equipment. Whether pushing or pulling, Ski-Z allows for easy maneuverability and the ability to turn skis on a dime. The founders, with 35 years of experience in the ski industry, emphasize that Ski-Z is a game-changer in simplifying the process of getting to and from the slopes.
Priced at a reasonable $19.95, Ski-Z is an affordable solution to a common skiing inconvenience. Manufactured at a cost of $3.50, it represents an accessible accessory for skiing enthusiasts. Ski-Z can be purchased directly from the company, and the founders have secured a utility patent to protect their innovative design. With its user-friendly features and competitive pricing, Ski-Z presents a compelling addition to any skiing gear collection.
How It Went
The company’s position before Shark Tank
Ski-Z’s journey has been marked by resilience and determination, overcoming challenges to carve a niche in the skiing industry. The company faced significant hurdles, including personal setbacks for the founders, but it has demonstrated an ability to rebound and project a positive trajectory. In terms of financial performance, Ski-Z experienced a noteworthy start in 2013, achieving $230,000 in sales within four months. However, subsequent years saw a decline, with 2014 registering zero sales due to the founders’ personal challenges.
The years that followed were marked by financial struggles, with a notable setback in 2016 when a major flood in Louisiana led to the loss of everything. Despite these adversities, the founders projected a promising outlook in 2018, anticipating sales of $575,000. They managed to maintain $350,000 worth of inventory, a testament to their commitment to Ski-Z. The funding for this inventory was secured through personal means, including mortgaging their home, showcasing the founders’ dedication to the product.
Currently, Ski-Z is in talks with a distribution company based in Denver, indicating a strategic move towards expanding their market presence. The company’s distribution strategy aligns with its goal of making Ski-Z widely available to skiing enthusiasts. However, the specifics of their partners, wholesalers, and customer base were not detailed in the provided transcript. The founders’ decision to mortgage their home to fund inventory underscores their personal investment in Ski-Z’s success. The ownership structure involves Nick Palermo and Kyle Allen each holding 25%, with Nick’s new wife also having a 25% stake. This financial commitment, coupled with their resilience in the face of adversity, positions Ski-Z as a company with a compelling product and the potential for growth in the skiing accessory market.
The Negotiations:
The negotiation process for Ski-Z on Shark Tank unfolded with a mix of challenges, humor, and ultimately, a successful deal. Nick Palermo and Kyle Allen entered the tank seeking $50,000 for a 15% equity stake in their portable ski caddy business. Barbara Corcoran swiftly made a straightforward offer matching their ask — $50,000 for 15%. However, Kevin O’Leary chimed in with an alternative offer, proposing $50,000 for a slightly larger 20% stake.
The negotiation took an unexpected turn when the founders hesitated in accepting Barbara Corcoran’s offer, prompting Mark Cuban to voice his opinion, urging them not to overthink and to “take the deal.” The negotiation room was filled with a blend of humor and pressure, with Kevin O’Leary even suggesting a more complicated offer of $50,000 for 20%. Despite the brief hesitation, the founders eventually accepted Barbara Corcoran’s offer, securing a deal that aligned with their initial ask.
Barbara Corcoran’s investment marked a turning point for Ski-Z, offering not only the sought-after funding but also the expertise and network of a seasoned entrepreneur. The negotiation showcased the founders’ ability to navigate pressure and make strategic decisions. The presence of humor, especially Barbara’s playful remarks and Mark’s insistence on not complicating the deal, added a unique flavor to the negotiation process. Overall, the successful outcome highlighted the potential of Ski-Z and the confidence that Barbara Corcoran saw in its market viability.
