Entrepreneurs Steven Graf and Zhach Pham were facing a common issue experienced by skiers and snowboarders: when they lean their gear against the car, the skis or board often slip and hit the ground, causing damage to both the gear and the car. To solve this problem, they invented SnoStrip and SunStrip, a magnetic solution to hold skis and snowboards in place securely.
Their company, RigStrips, doesn’t just sell SnoStrip; they also offer other accessories like the Mudbucket, Magnetic Koozie, TrunkGuard, and many more items. So, did any of the Sharks show interest in adding this company to their portfolio? Let’s find out.
| Company Name | RigStrips | |
| Founder/Co-Founder | Steven Graf and Zhach Pham | |
| Founded | Nov 2019 | |
| Product | Magnetic holder for skis and snowboards | |
| Asked For | $300k for 7.5% equity | |
| Final Deal | $300k for 15% equity | |
| Shark | Todd Graves | |
| Episode | S16 E2 | |
| Air Date | Oct 25th, 2024 | |
| Business Status | In Business | |
| Website | Visit Website | |
| Headquarters | Denver, Colorado, United States | |
| Annual (Revenue) | $3 Million *estimated | |
| Worth / Valuation | $4 Million | |
| Buy and Watch | Buy Now | Amazon Prime |
What Is the Background of The Founder?
The co-founders of RigStrips Company are Steven Graf and Zhach Pham. Steven is a professional Product Manager and has worked at a software company called MojoTech. Zhach also comes from a similar background, and together they co-founded an event timeline business named Spark Sponsor.
Steven and Zhach are currently focusing on their company, RigStrips, to get their products listed in major retail stores, including big-box stores.
Business Pitch Episode Recap
Steven Graf and Zhach Pham asked the Sharks for $300,000 in exchange for 7.5% equity at a $4 million valuation. They explained their company’s products, SnoStrip and SunStrip, and described how they work like a hook when attached to cars, helping skiers and snowboarders keep their gear in one position.
They offer two types of strips: adhesive and magnetic, with 90% of users opting for the magnetic version and 10% using the adhesive version for cars made of aluminum. Todd Graves asked about the business’s competitors, and Steven responded that there are some competitors on Amazon, but their company currently leads the market.
Since starting the business, they have sold a total of 60,000 units. The landed cost for SnoStrip is $8.50, while the landed cost for SunStrip is $7.
The best part is that the company has achieved lifetime sales of $3 million since 2020. This year, in 2024, they plan to generate $2.7 million in annual sales.
All of their sales so far have come from advertising on Meta, and their customer acquisition cost is $10. Steven revealed that 62% of their total sales occurred between November and December, which leads them to believe there is significant growth potential in their business.
Kevin O’Leary asked a question about the company’s profits. In response, Steven shared that their EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) for last year, 2023, was $450,000. Additionally, they currently hold the design patents and trademarks for their product.
Mark Cuban said he’s not interested in outdoor-type products, so he’s out.
Kevin O’Leary thinks this is a risky investment, so he’s out.
Todd Graves asked how the $300,000 would be used in the business and what the Sharks could bring to the table. Steven responded that they need the Sharks for their marketing strategy. Most of the $300,000 would go toward inventory, with some allocated for marketing expenses.
Todd then offered $300,000 but requested 20% equity in the company. Lori Greiner said the offered equity was too low to excite her, so she’s out.
Steven countered Todd’s offer with $300,000 for 10% equity at a $3 million valuation. Todd then made a counteroffer of $300,000 for 15% equity. Zhach and Steven decided to accept Todd’s counteroffer.
Sharks Offers list!
| Sharks | Offers |
|---|---|
| Todd Graves | $300k for 15% equity |
| Kevin O’Leary | No Offer |
| Mark Cuban | No Offer |
| Daymond John | No Offer |
| Lori Greiner | No Offer |
| Founder’s (Countered) | $300k for 10% equity |
| Final Deals | $300k for 15% equity |
RigStrips Shark Tank Update
After the episode aired, when we began researching the company, we found that there is a strong demand for their two products, SnoStrip and SunStrip, in the “Ski & Snowboard Car Racks” category.
These products are bestsellers on Amazon. With strong sales and their appearance on Shark Tank, the business’s scalability could be enhanced significantly.
Steven and Zhach announced through a video on their company’s official Instagram handle @rigstrips that they are now preparing to ship thousands of orders.
We are currently tracking this business for more updates.
We have covered more businesses from Season 16, and you can also check them out!
