RigStrips Update | Shark Tank Season 16

RigStrips offers innovative magnetic and adhesive holders to protect your car from outdoor gear damage. Keep your vehicle scratch-free with SnoStrip and SunStrip!

Outdoor enthusiasts constantly face the challenge of protecting their vehicles from scratches and damage when leaning gear like skis, snowboards, or fishing rods against them. These scratches can be costly and frustrating, especially for those who rely on their vehicles to transport outdoor gear. This is where RigStrips comes in—a solution designed to protect outdoor enthusiasts’ vehicles and equipment. Created by Zhach Pham and Steven Graf, RigStrips includes the SnoStrip and SunStrip—magnetic and adhesive holders that easily adhere to a car’s exterior, keeping gear safe while preventing scratches.

But did the sharks on Shark Tank recognize the potential of this innovative product? Let’s break down the pitch, examine the outcomes, and look at the growth trajectory of RigStrips since the show aired.

Key Takeaways

• RigStrips provides innovative solutions for outdoor enthusiasts, preventing car scratches caused by skis, snowboards, and fishing rods.
• Their main products, SnoStrip (magnetic) and SunStrip (adhesive) offer vehicle protection for both steel and aluminum cars.
• The company secured a $300,000 investment for 15% equity on Shark Tank Season 16 with Todd Graves.
• RigStrips has sold over 60,000 units, generating $3 million in revenue and is aiming for $2.7 million this year.
• The brand leverages seasonal marketing and a direct-to-consumer model, focusing strongly on Facebook ads and email campaigns.
• Future growth includes potential product expansion, international markets, and sustainability initiatives.

RigStrips’ Shark Tank Pitch

Zhach and Steven entered the Shark Tank arena with one goal: to protect vehicles from outdoor gear-related scratches. They sought an investment of $300,000 in exchange for 7.5% equity in their company, RigStrips. Their pitch highlighted two core products: SnoStrip and SunStrip—magnetic and adhesive strips that can be easily applied to the exterior of vehicles to prevent scratches caused by skis, snowboards, fishing rods, and other outdoor gear.

The Pitch Breakdown:

In the pitch, Zhach and Steven emphasized the simplicity and practicality of their solution. They initially sought $300,000 for 7.5% equity, valuing the company at $4 million. Todd Graves, an experienced entrepreneur and investor, saw the potential in RigStrips and offered $300,000 for 15% equity, which the founders ultimately accepted after some negotiation. The deal was sealed, but the journey was beginning.

Why RigStrips Is a Must-Have for Outdoor Enthusiasts

RigStrips’ core products, the SnoStrip and SunStrip, provide a unique solution to a problem that many outdoor enthusiasts face: the risk of damaging their vehicle’s paint when propping gear against it. The products are designed to be durable, versatile, and easy to use. Here’s why the product stands out:

1. Dual Product Offering: RigStrips offers two types of strips—magnetic and adhesive. The magnetic version is designed for vehicles with steel exteriors, while the adhesive version works best with aluminium vehicles. This dual offering ensures a solution for every type of car, making RigStrips accessible to a broad audience.
2. Durability and Weather Resistance: Both the SnoStrip and SunStrip are designed to withstand harsh outdoor conditions. These strips are built to endure whether you’re facing snow, ice, or intense sun exposure. Their weather-resistant properties make them reliable year-round, especially for outdoor activities like skiing, snowboarding, and fishing.
3. Easy to Use: Applying the strips is as easy as attaching them to the vehicle’s exterior. There’s no need for complicated installations or permanent modifications. The SnoStrip and SunStrip are designed to be simple and intuitive, even for beginners, making them accessible to a broad audience.
4. Versatile Applications: While the primary focus is on skis, snowboards, and fishing rods, the versatility of these strips allows them to be used for various outdoor gear. Whether you’re transporting bicycles, kayaks, or tents, the products offer an excellent solution to safeguard your vehicle from unwanted scratches and marks.

Financial Insights: Profitability and Growth

RigStrips’ profitability is an impressive aspect of the business. With a strong direct-to-consumer model, the company benefits from the ability to control its marketing, sales, and customer experience. Let’s take a closer look at the company’s financials:

• Cost and Profit Margins:
  • SnoStrip: Costs $8.50 to produce and sells for $50, yielding a profit of $33 per unit. This provides a healthy profit margin of approximately 66%.
  • SunStrip: It costs $7 to make and retails for $50, resulting in a profit of $34.50 per unit or a margin of 69%.

With these high margins, RigStrips can reinvest in growth and scale its operations while maintaining profitability.

• Revenue Growth: RigStrips’ business has been steadily growing. Since launching in 2020, they’ve sold over 60,000 units and reached $3 million in revenue. In 2023 alone, the company earned more than half its total revenue, demonstrating the potential for continued growth. This year, the company aims to reach $2.7 million in revenue.
• Sales Trends: RigStrips sees a significant spike in sales during winter, which aligns with the demand for outdoor gear during ski and snowboard season. 62% of their annual sales occur in November and December, making it a crucial period for the brand. Their ability to capitalize on seasonal trends has helped them maintain a substantial revenue stream.
• Customer Acquisition: RigStrips uses Facebook as its primary platform for digital marketing, spending approximately $10 per customer acquired. This low customer acquisition cost (CAC) allows them to scale marketing efforts efficiently and profitably. Their social media ads have effectively targeted outdoor enthusiasts and reached a niche market.

The Influence of Shark Tank on RigStrips

The Shark Tank appearance provided a significant boost to RigStrips’ visibility. The exposure from the show led to increased brand awareness, enhanced credibility, and a surge in customer interest. Here’s how this product has capitalized on this newfound attention:

1. Building a Strong Online Presence: RigStrips’ website has become a hub for product sales and customer engagement. With the help of Todd Graves, the company has refined its online marketing strategy, focusing on targeted promotions and building an email subscriber list. Email campaigns and product updates have kept customers engaged and drove repeat sales.
2. Seasonal Marketing Campaigns: RigStrips capitalizes on the winter holiday season by running promotions and advertisements around key shopping dates. During the holidays, customers are more likely to purchase gifts for outdoor enthusiasts, creating an ideal opportunity to increase sales and attract new customers.
3. Email Newsletters: To keep the community engaged, RigStrips sends regular email newsletters that offer discounts, product updates, and tips for using their products. These newsletters have been valuable for nurturing customer relationships and encouraging brand loyalty.
4. Social Media Engagement: While Facebook remains the primary channel for paid marketing, it also engages with its audience on Instagram and other social platforms. By posting outdoor adventures, customer reviews, and product demos, the brand fosters a connection with its audience that goes beyond just product sales.

Product Expansion and Future Plans for RigStrips

While SnoStrip and SunStrip are RigStrips’ flagship products, there are exciting plans for future growth. Here are some of the ways it could expand in the coming years:

1. Introducing New Products: The outdoor market is vast, and there’s ample room to diversify its product line. Potential expansions could include protective gear for bikes, kayaks, or even automotive accessories catering to different outdoor sports. With the brand’s expertise in outdoor protection, introducing complementary products is a natural next step.
2. Sustainability: As environmental concerns grow, more consumers lean toward eco-friendly products. RigStrips could capitalize on this shift by exploring sustainable materials and manufacturing processes. Offering biodegradable or recyclable alternatives for their adhesive or magnetic strips would resonate with environmentally conscious customers.
3. International Expansion: While RigStrips currently operates in the U.S., international growth has enormous potential. Countries like Canada, the UK, and parts of Europe have thriving outdoor sports communities, and the demand for products that protect gear and vehicles is significant. Expanding internationally could open up new revenue streams for RigStrips.
4. Collaborations and Partnerships: Partnering with major outdoor gear brands or car manufacturers could strategically boost brand recognition and increase sales. RigStrips could collaborate with ski resorts, outdoor gear retailers, or car manufacturers to offer joint promotions and expand their market reach.

Why RigStrips is Positioned for Long-Term Success

RigStrips isn’t just another product in the outdoor gear space—it’s a practical, customer-focused solution that solves a real problem for outdoor enthusiasts. Here’s why the company is well-positioned for long-term success:

• High Demand in a Growing Market: The outdoor recreation market is growing, and consumers are increasingly seeking ways to protect their equipment and vehicles. RigStrips meets this need with a simple, effective solution.
• Strong Profit Margins: With healthy margins on both the SnoStrip and SunStrip, RigStrips is well-positioned to reinvest in growth and scale its operations.
• Solid Brand and Customer Base: Through strategic marketing, customer engagement, and quality products, RigStrips has cultivated a loyal following. The brand’s direct-to-consumer model also ensures they maintain a strong customer connection.
• Strategic Backing: With Todd Graves, RigStrips can access valuable mentorship and resources. His experience scaling businesses gives the company a significant edge in navigating growth challenges.

RigStrips – A Bright Future Ahead

From its appearance on Shark Tank to its thriving online marketing strategies, RigStrips has proven itself as a promising company in the outdoor gear market. With a well-thought-out business model, high-quality products, and a focus on customer satisfaction, RigStrips is positioned for sustained growth and success.

By continuing to innovate, expanding its product line, and engaging with its loyal customer base, RigStrips has the potential to become a major player in the outdoor gear protection industry. Whether it’s protecting vehicles from scratches or expanding into new outdoor gear categories, the future looks bright for RigStrips.

You can check their website for the latest news and offers.

For the latest updates from Shark Tank Season 16, Episode 2, explore the links below:

• TOPSAIL STEAMER UPDATE

• BUCKETGOLF UPDATE

• LIFE RAFT TREATS UPDATE

Before you go, make sure to check out our list of all the Shark Tank Season 16 products.