Lite-netics Shark Tank Update | Lite-netics after the Shark Tank Pitch
What is Lite-netics?
Lite-Netics is a firm that manufactures the first magnetic light strands. The goal of Lite-Netics is to make it possible to attach Christmas lights quickly and easily using magnets rather than hooks, wire, or other fasteners.
The light strands are strong enough to withstand bad weather, and each magnet can hold up to 26 pounds.
Lite-Netics also sells coloured bulbs and other lighting accessories.
Lite-Netics was created in 2009 by Shawn Genenbacher.
He attended Texas Tech University before founding Lite-Netics. Genenbacher is still the CEO of Lite-Netics today, and the firm is thriving.
He also works at Tigris LLC as an Architect/Project Manager.
As an entrepreneur, Genenbacher saw an issue that he believed needed to be addressed.
He was motivated to develop Lite-Netics as a solution to a frequent problem — stringing Christmas lights.
He had his invention patented after coming up with the idea of magnetic lights and managed to sell $118,000 worth of Lite-Netics in the first 12 months of company, earning a $38,000 profit.
He made slightly over $400,000 in his first four years of business by focusing on selling to professional installers and commercial transporters of Christmas merchandise.
Lite-Netics is still in business today and sells magnetic light strands on its website.
At roughly one dollar per foot, these lights are a tad pricey for retail – but the amount of time and irritation they save while putting up Christmas lights may be worth the cost.
Who is the Founder of Lite-netics?
Shawn Genenbacher.
What happen to Lite-netics at the Shark Tank Pitch?
Shawn appeared on Shark Tank Season 5 Episode 12 in search of $125,000 for a 20% stake in his company. This equates to $625,000 valuation.
He began by demonstrating how simple it is to install Lite-netics. Lori raised an important point: what if your structure lacks metal? Shawn responded, but Robert followed up by asking how he was selling it.
Shawn stated that he sells a majority of his products to “professional lighting fitters.” He was in the development phases of working with Home Depot at the time of tape.
He made $118K in sales last year and has made roughly $400K over the previous four years; Shawn has not increased his sales.
As Mark points out, this suggests that the Lite-Netics sales organization is not scalable.
Shawn agrees that he is having difficulty with production and lowering the cost per unit, but when he originally launched the idea and acquired the patent, he pursued it hard.
Kevin is astounded that Lite-Netics’ patent has been approved, implying that Shawn has done his study carefully.
Mr. Wonderful is interested in his invention and offers to arrange a license agreement with huge lighting producers, but he wants to be a 50% partner.
Robert goes out because he believes he won’t be able to scale it.
Mark believes that Lite-netics offers a time advantage for experienced installers, but he is unable to reach the market, thus he is out.
Lori just does not believe the product will be successful in the retail sector. Lori has backed out of the contract.
Daymond proposes negotiating licensing identical to Kevin’s, but at a 40% discount. Daymond and Kevin extol the virtues of their experience, and when Shawn asks Daymond to go to 30 percent, he refuses, so Shawn declines both offers.
Kevin exclaims, “You’re dead to me,” and Daymond responds, “You’re dead to me as well!” Shawn exits Shark Tank with no agreement.
Lite-netics after the Shark Tank Pitch
The Sharks complained that Lite-netics was too pricey for the retail market.
Because the professional lighting business is far smaller than the retail Christmas light market, Lite-netics had a huge hurdle in creating a place for a product with restricted uses and a high price tag.
The firm hung on for a time, but the social media accounts were deactivated in February 2015, and the website was removed.
They quickly returned and began to sell their lights. They are up and operating with $1 million in yearly revenues as of August 2021.
Lite-netics Net Worth
Shawn appeared on Shark Tank in search of $125,000 for a 20% stake in his company. This equates to $625,000 valuation.
Lite-netics Competitors
There is no competitor identified for Lite-netics.
Lite-netics FAQS
What is Lite-netics?
Lite-Netics is a firm that manufactures the first magnetic light strands. The goal of Lite-Netics is to make it possible to attach Christmas lights quickly and easily using magnets rather than hooks, wire, or other fasteners.
Who is the founder of Lite-netics?
Shawn Genenbacher.
How was he asking in the Shark Tank?
He was asking for $125,000 for a 20% stake in his company.
How much did he get from the Shark Tank?
He didn’t get an investment from the Shark
Will this product save me time on labour?
Yes, this has been tested, and experienced installers have saved up to 50% in labour time and cost over older, more traditional installation techniques.
Will the exposed magnet rust or corrode?
No, the magnet has a nickel protective covering that prevents corrosion.
What is the hottest temperature that these magnetic strands can withstand?
It is not suggested that they use this product on surfaces that are hotter than 175 degrees Fahrenheit.
Will these magnetic strands stick to all metal?
It will cling to any ferrous metal-containing surface, just like any other magnet (iron or steel). Aluminum is not a metal that is ferrous.
Will these magnetic light strands still work with the shingle tabs if needed at special locations?
Yes, the architecture of these strands allows them to be used with any other classic C9 light socket clips or tabs.
Do these light strands need any additional glues, screws or adhesives or clips?
No, these magnetic strands do not require any glues, nails, staples, screws, adhesives, or other accessories such as parapet clips or tabs.
However, because the quality of the metal varies from home to house, Lite-netics recommends utilizing a clip every few feet in residential applications to achieve optimal adherence to the perimeter of the house.
What length of strands do they supply?
Lite-Netics, LLC now produces lengths of 25 feet, 100 feet, 250 feet, and 500 feet on spools.
Will these magnetic sockets work with LED bulbs?
These magnetic sockets are suitable for both incandescent and LED lights.
Can they ‘take down’ the light strands by pulling the wire from the ground level without damaging the strand?
Yes, Lite-Netics has tested these strands to be removed off metal during uninstall.
Is Lite-Netics still in business?
Lite-Netics is still in business today and sells magnetic light strands on its website.
How do they hang Christmas lights with a magnet?
Simply attach the magnets to their LED lights at regular intervals with the accompanying cable ties and secure them to a steel surface.
If they don’t already have a steel surface to attract the magnets to, they might install countersunk steel discs in strategic locations to attract the cable tie magnets.
What is the difference between C9 and C7 bulbs?
C7 bulbs are much smaller than C9 bulbs. They feature an E12 candelabra base, which is the same size as a night light bulb. C9 bulbs are bigger, measuring over 2 inches in length, and have an E17 base.
They are typically available in 7 or 10 watt incandescent bulb sizes and are used in the same manner as a C7 bulb.
How many lights C9 Christmas tree?
String no more than 50 lights together for C7 and C9 or bigger bulbs. When they leave the house or go to bed, turn off the lights. Make use of surge protectors.
What is net worth of Shawn Genenbacher?
Unknown.
