Ski-Z Accepts $50,000 From Barbara Corcoran

Nick Palermo and Kyle Allen came into the Shark Tank in search of a $50,000 investment for a 15% share in their company, Ski-Z. Their patented, flagship product is a caddy for your skies that allows you to push or pull them to the slopes. The product is small and portable, which makes it easy to carry in your pocket as well as the ideal size to sell as an add-on item at ski shops and airports near ski towns.

The Sharks are impressed with their margins on the product, as it costs $3.50 to make and is sold for $19.95, however, they are concerned with the financial history and health of the company. When the company was launched in 2013 it made $230,000, however, it has been at zero every year since. Nick and Kyle explain personal hardships and tradgies that they went through during those years, but reiterated their desire to see this product become a staple product for skiers everywhere. They are projecting $575,000 in sales this year as they are currently in talks with a distribution partner, although they currently have not made any sales this year. The company is also sitting on $350,000 of inventory.

Barbara Corcoran offers them exactly their asking value, $50,000 for a 15% share in the company. They begin to discuss rather than immediately accepting her offer. Barbara was very offended that they didn’t immediately take a deal that they asked for. She probed them on what the discussion was about when she is offering them what they hoped for at the share they suggested. They shared with Barbara that they are afraid they may also need an additional $50,000 line of credit on top of the original offer. She assures them that it will be no problem, and when they start to discuss rather than accept again, she becomes extremely agitated. Daymond John also makes an offer for $50,000 but for 20% of the company. In the end, they take Barbara’s deal for $50,000 for 15%.