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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%.
As Nick and Kyle leave the Tank, the Sharks are confused as to why they didn’t just ask for more money up front.
You know what puzzles me?…… When people come in the tank and get the EXACT offer they requested then freeze on accepting it. Why? #SharkTank
— Morenita (@rashidapowell) December 3, 2018
Where was Ski-Z when I lugging my kids’ skis to and from the mountain on the weekends? What an ingenious solution to carrying skis! @Ski_Z_ #SharkTank https://t.co/KuHBJ8etT7 pic.twitter.com/i3TDIahXVt
— Barbara Corcoran (@BarbaraCorcoran) December 3, 2018
Life is full of bumps and rolls and ski-z showed they can’t hack the life drama real entrepreneurs can #SharkTank
— Jacqueline E (@helpbusinesses) December 3, 2018
I feel bad for the Ski-Z guys on #sharktank. They had year over year of personal tragedies taking their sales to $0 for 3 years and now are on track to hit $500k. Being an entrepreneur is not easy but I am proud to see them bounce back and secure a deal with @BarbaraCorcoran
— Andrew Breiter-Wu ☀️ (@AndrewBreiterWu) December 3, 2018
They need those ski wheels in every airport gift shop in the ski cities. It’s the perfect last minute buy when folks are killing time before a flight. #SharkTank
— Morenita (@rashidapowell) December 3, 2018
@BarbaraCorcoran @SharkTankABC Could not believe the #SkiZ guys hesitation! Glad they heard me screaming at them through the TV. BTW, you looked fabulous & your dress was #Beyond Merry Christmas
— Maria Fellows (@MQFellows) December 3, 2018
What do you think about Ski-Z’s product and Barbara’s offer? Would you purchase this product? Sound off in the comments below!
For a full summary of this episode, check out this article. Shark Tank airs on Sundays at 9:00 PM EST on ABC.