What Happened to Lite-netics After the Shark Tank Pitch?
What is Lite-netics?
Lite-Netics is a company that created the first magnetic light strands. The purpose of Lite-Netics is to make it possible to swiftly and easily attach Christmas lights using magnets rather than hooks, wire, or other fasteners.
The light strands are durable enough to endure inclement weather, and each magnet can support up to 26 pounds.
Coloured bulbs and other lighting accessories are also available from Lite-Netics.
Who is the Founder of Lite-netics?
Shawn Genenbacher founded Lite-Netics in 2009.
Before establishing Lite-Netics, he attended Texas Tech University. Genenbacher is still the CEO of Lite-Netics, and the company is doing well.
He also works as an Architect/Project Manager at Tigris LLC.
As an entrepreneur, Genenbacher saw a problem that he felt needed to be solved.
He was inspired to create Lite-Netics as a solution to a common problem: hanging Christmas lights.
After coming up with the idea of magnetic lights, he got his product patented and managed to sell $118,000 worth of Lite-Netics in the first 12 months of the firm, generating a $38,000 profit.
In his first four years of operation, he made little more than $400,000 by selling to expert installers and commercial carriers of Christmas products.
Lite-Netics is still in business today, and their website sells magnetic light strands.
These lights are a little pricy for retail at around one dollar per foot – but the amount of time and annoyance they save while putting up Christmas lights may be worth the expense.
What Happened to Lite-netics at the Shark Tank Pitch?
Shawn appeared on Shark Tank Season 5 Episode 12 in pursuit of a $125,000 investment in exchange for a 20% ownership in his firm. This amounts to a valuation of $625,000.
He started by showing how simple it is to install Lite-netics. Lori brought up a key point: what if your building isn’t made of metal? Robert followed up on Shawn’s response by asking how he was selling it.
Shawn claims that the bulk of his items are sold to “professional lighting fitters.” At the time of the tape, he was in the early stages of his job at Home Depot.
He made $118K in sales last year and has made around $400K in the preceding four years; Shawn’s sales have not risen.
This, as Mark points out, implies that the Lite-Netics sales structure is not scalable.
Shawn admits that he is having trouble with production and decreasing the cost per unit, but when he first introduced the idea and obtained the patent, he pushed it aggressively.
Kevin is taken aback that Lite-Netics’ patent has been accepted, signalling that Shawn has done his research well.
Mr. Wonderful is interested in his concept and offers to negotiate a licensing arrangement with large lighting manufacturers, but he wants to be a 50% partner.
Robert ventures out because he feels he will be unable to scale it.
Mark feels that Lite-netics gives skilled installers a time advantage, but he is unable to reach the market, thus he is out.
Lori just does not feel the product will be a success in the retail market. Lori has withdrawn from the deal.
Daymond suggests negotiating licensing that is identical to Kevin’s, but at a 40% reduction. Daymond and Kevin praise the merits of their experience, and when Shawn asks Daymond to go to 30%, he declines, thus Shawn rejects both offers.
“You’re dead to me,” Kevin shouts, and Daymond answers, “You’re dead to me as well!” Shawn leaves Shark Tank without a deal.
What Happened to Lite-netics After the Shark Tank Pitch?
The Sharks expressed concern that Lite-netics was too expensive for the retail market.
Because the professional lighting industry is far smaller than the retail Christmas light market, Lite-netics had a significant challenge in finding a market for a product with limited applications and a high price tag.
The company lingered on for a while, but in February 2015, the social media accounts were disabled, and the website was withdrawn.
They returned shortly and began selling their lights. They are up and running, with a yearly income of $1 million as of August 2021.
What is the Net Worth of Lite-netics?
Shawn went on Shark Tank in quest of a $125,000 investment for a 20% ownership in his firm. This amounts to a worth of $625,000.
Current valuation is evidently higher since the Company has grown.
Who are the Competitors of Lite-netics?
There is no known competition for Lite-netics.
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Lite-netics FAQS
What is Lite-netics?
Lite-Netics is a company that created the first magnetic light strands. The purpose of Lite-Netics is to make it possible to swiftly and easily attach Christmas lights using magnets rather than hooks, wire, or other fasteners.
Who was the founder of Lite-netics?
Genenbacher, Shawn
How was he asking in the Shark Tank?
He was seeking for $125,000 in exchange for a 20% share in his firm.
How much did he get from the Shark Tank?
He did not receive a loan from the Shark.
Will this product save me time on labour?
Yes, this has been tested, and professional installers have saved up to 50% on labour time and cost when compared to older, more traditional installation approaches.
Will the exposed magnet rust or corrode?
No, the magnet has a nickel protective coating that keeps it from corroding.
What is the maximum temperature these magnetic strands can withstand?
This product should not be used on surfaces that are hotter than 175 degrees Fahrenheit.
Will these magnetic strands stick to all metal?
It, like any other magnet, will stick to any ferrous metal-containing surface (iron or steel). Aluminium is not a ferrous metal.
Will these magnetic light strands still work with the shingle tabs if needed at special locations?
Yes, because of the design of these strands, they may be used with any other traditional C9 light socket clips or tabs.
Do these light strands need any additional glues, screws or adhesives or clips?
No glues, nails, staples, screws, adhesives, or other accessories such as parapet clips or tabs are required for these magnetic strands.
However, because metal quality differs from home to home, Lite-netics suggests using a clip every few feet in residential settings to obtain best adhesion to the house’s perimeter.
What length of strands do they supply?
Spool lengths of 25 feet, 100 feet, 250 feet, and 500 feet are now available from Lite-Netics, LLC.
Will these magnetic sockets work with LED bulbs?
These magnetic sockets can accommodate both incandescent and LED lighting.
Can they ‘take down’ the light strands by pulling the wire from the ground level without damaging the strand?
Yes, Lite-Netics has tested the removal of these strands from metal during uninstall.
Is Lite-Netics still in business?
Lite-Netics is still in business today, and their website sells magnetic light strands.
How do they hang Christmas lights with a magnet?
Simply link the magnets to their LED lights at regular intervals with the included cable ties and place them on a steel surface.
They may add countersunk steel discs in appropriate areas to attract the cable tie magnets if they do not already have a steel surface to attract the magnets to.
What is the difference between C9 and C7 bulbs?
C7 bulbs are significantly smaller than C9 bulbs. They have an E12 candelabra base, the same size as a night light bulb.
C9 bulbs are larger, measuring more over 2 inches long, and feature an E17 base.
They normally come in 7 or 10 watt incandescent bulb sizes and are used in the same way as a C7 bulb.
How many lights C9 Christmas tree?
For C7 and C9 or larger bulbs, string no more than 50 lights together. Turn out the lights when they leave the house or go to bed. Utilize surge protectors.
