The Nerok Lift ™

If you have a Spa/Hot Tub, you will know what we are talking about!

Who we are

My name is George Koren. I head up a team of designers and engineers that have spent that last 4 years researching and designing a product that we believe can change how we use a common household product, the residential backyard Spa, or as it is commonly referred to as, Hot Tub. Profiles of our team members are listed.

The Problem

If you cannot open it, you cannot use it. There is a large niche market for an automated spa cover in the home spa market. The #1 problem spa/hot tub owners have is opening and closing the heavy bulky cover. Baby Boomers, seniors, women, and those with physical limitations, the largest subgroups of spa users, struggle with the cover and have been asking for a solution. Additionally, legislation in both FL and CA requiring pool safety covers is creating a demand for automated covers on spas.

The Solution

The Nerok Lift™ is a simple device that attaches to the back of the spa and opens and closes the spa for you. It fits all spa shapes and sizes and uses the same cover commonly sold today. It is ease to install, maintain, operate and reasonable priced. It solves the problem for everybody, not just those needing the assistance the most.

Market Size

Pool & Spa News Magazine has stated, “The automatic spa cover business might be an infant, but it has the opportunity to grow quickly.” There are 5.6 million residential spas in operation in the U.S. and 175,000 new spas will be sold this year ranging in price from $5,000-$18,000. This is down from 400,000 new spas sold in prior peak years. Almost all New Spa Packages have some kind of manual cover lift included. Existing spa owners replace their covers and manual lifts about every three to five years and are familiar with the problems associated with the manually opened cover.

Sales Channels

The Nerok Lift™ debuted at the International Pool and Spa Trade Show in Las Vegas. Most retail spa dealers made the same observations: “I have customers that would not hesitate to buy that”. The show generated a list of 150 dealers and distributor willing to purchase the Nerok Lift™ for distribution in the US, Canada, and the EU. These dealers are representative of the 1500 spa dealers in the US. Feedback from these and other dealer are available to confirm this interest.  

Dealer’s Support

R.P. Charlottesville, VA. “Many people look to have a hot tub or swim-spa unit that is easy to operate and unless you have a very small unit, some type of cover lift is almost a necessity with insulated covers. Some users can’t even use the current manual cover lifts on the market because it requires too much manual effort. Specifically physically handicapped people with very limited mobility cannot operate manual cover lifters. Your automatic cover lift addresses the ease of use issue”.

H.B. Salinas, CA. “We are very excited about the Nerok automatic cover lifter that you have designed and are eagerly awaiting the launch to the public. We have one of your competitor's products on display in our store. All the problems with that product seem to be resolved with yours. On average we sell 3-6 cover lifters per month. Our goal would be to have 20% of those lifters be your new Nerok automatic lifter.”

D.F. South Florida. “I saw your spa lift product at the Las Vegas show and I think it is a terrific idea and very marketable. The majority of our clients are very wealthy and older. Many of them have after market spas and I know they would purchase your product.”

Our Competition

Up to now, there has been no reasonable solution that solved the problem at a reasonable price. There are a number of products that have entered the market in the past several years trying to solve the problem but they have all been extremely expensive, unsafe or otherwise not something the average homeowner was interested in. Consumer access to the spa remains a problem. The Nerok Lift™ costs half the price of the four competing products on the market, all $3500 to $5000. These are more like specialty products with limited appeal to the 5.6 million existing spa owners and cost prohibitive if included in a new spa package. The Nerok Lift™ MSRP can be as high as $1995, well within the price range necessary to get a significant profitable market share and profit for dealers.

Nerok’s Advantages

The Nerok Lift™ has key strategic advantages besides price. An internal report from a major brand name spa manufacturer called the lift “inconspicuous” and “simple”. The lift is safe and inexpensive and competing against complex and high priced alternatives. The technology has a successful history and is used in in-ground pool covers and garage door opener markets. Nerok’s (3) international patents secure the technology’s exclusive use in the spa market.

Nerok has been testing the lift over the past 36 months in the most inhospitable climate we could find; a mountain environment with very cold winters, high winds, heavy snow, intense summer heat, and the corrosive vapors from an operational spa. The design is very well vetted. Safety issues common to other lifts have been eliminated or greatly reduced with the Nerok Lift™.

Nerok is ready to start production

Nerok has spas dealers and automated in-ground pool covers dealers lined up in regional markets in the US, Canada, and EU. Nerok has contract manufacturers identified with competing bids, including tooling amortization. Our management team and staffing plan is in place.

Uses of Proceeds

In order to pursue all available market segments Nerok is looking to secure $400,000 in capital to finance the initial inventory and start up a distribution site. Minimum orders from the manufacturer will be $110,000. 60% of all fund raised will be used for inventory. The balance will be for a distribution center and support.

Why this will succeed

1) We have buyers. Simple things have changed our lives in big ways. Just think about the convenience of your garage door rising with the push of a button or the grocery store door sliding to the side as you approach. In both these cases, innovation and technology matured to a level where these everyday conveniences could be provided for us safely and reliably. They are now common household appliances. We are now at the same technological junction for residential spas with buyers actively looking for a solution.

2) We are changing things. Dealers have said, “This is a game changer”. We know it will benefit those who need it the most and be less of a burden for the rest of us.

3) We have a dominant position. Our product is superior in all matters that count, especially price. The automated spa cover market is untapped and underserved with penned up demand and limited competition. Out product solves a know problem for the growing Baby Boomer and Senior population. This device, highly favored by dealers, is patented and well vetted, manufacturing is in place, and sales channels are defined. Even in this slow economy, good products are selling and sustainable businesses are being started.

More Demo’s from YouTube

http://www.youtube.com/watch?v=PZ_rJVE36sQ

http://www.youtube.com/watch?v=HkT_s8Aevvg    

http://www.youtube.com/watch?v=Ti4Y6ARpKDg

http://www.youtube.com/watch?v=Ti4Y6ARpKDg&NR=1