Pink Shutter Photobooths Before Shark Tank
Friends turned entrepreneurs Lance Yabut and Tom Kanemoto are the creators of Pink Shutter Photobooths, a photobooth rental business based in both California and Las Vegas. Photobooth rental has become highly popular for weddings, parties and many other celebratory events. The duo took advantage of the gap for such a service in the market and created Pink Shutter Photobooths. When someone rents one of the Pink Shutter Photobooths, a Pink Shutter Photobooth technician will arrive at the event to set up the temporary photobooth. Each Pink Shutter Photobooth is props for guests to use in their photographs and a high-speed photograph printer so each guest can take home a copy of the photos that they take.
In order to get their company out onto a broader market, Lance and Tom decided to venture into the shark tank. They were in search of additional financial funding that could help expand the business as well as the business expertise the sharks could provide to grow Pink Shutter Photobooths. Will the sharks bite and invest in this growing trend?
Pink Shutter Photobooths On Shark Tank
Lance and Tom explain that they are looking for an investment of $300,000 and would give a share in their company, Pink Shutter Photobooths. Lance goes on to explain that they have taken the fun of the ‘old-fashioned’ photobooths and created something new that can revolutionize the industry. Further to that, it is the perfect addition to any party, celebration or event if you’re looking for a bit of fun or if you want a nice family photo to tale home at the end of the night. The props that are available in each of the Pink Shutter Photobooths make it interesting and get a smile from the whole family. Tom goes on to explain that the technology used in the Pink Shutter Photobooths is some of the best technology you could find and furthermore, the Pink Shutter Photobooths are spacious and comfortable to make the experience even more enjoyable. The guests who use the Pink Shutter Photobooths get a copy of their photos to take home as a token of their night and the organizer of the party gets a copy of all the photos too ensuring they have fantastic memories from the event. Lance and Tom finish up their pitch by inviting the sharks to come on down, pick a prop and try out the Pink Shutter Photobooths for themselves.
All the sharks eagerly leave their seats to examine the various props that Lance and Tom have brought with them to the shark tank. Kevin quite aptly picks a shark prop which he places on his head. All five sharks squeeze into the Pink Shutter Photobooth with various props and take some hilarious photographs. They receive a copy of the photographs that they have taken before returning to their seats and getting down to business.
Mr. Wonderful brings them all back to reality by opening the questions and asking Lance and Tom to talk the sharks through the business model. Lance explains that the business model is a corporate model. The duo owns and distributes all of the photobooths in various locations. So far they are based in Las Vegas, Sacramento, San Francisco and San Diego. Kevin wants to know a bit more and asks if Lance and Tom own all the equipment that cones with each of the Pink Shutter Photobooths. Lance explains that they own all assets. Robert is interested to hear just how big financially this business is today. Tom explains that in their first fiscal year, they took in approximately $195,000. Lance and Tom are currently in their second fiscal year and in the first quarter have earned $135,000 already. Although these figures are quite impressive, Mark is very quick to point out that photobooths are ancient. He wants to know what exactly makes Pink Shutter Photobooths stand out from the crowd? Lance explains that there is one main factor that makes Pink Shutter Photobooths completely different from any similar competitors on the market. They have cut the overhead costs for companies because of the huge setup involved in many photobooths on the market. Lance explains that it costs about $3500 in equipment and $500 in labor to build the Pink Shutter Photobooths.
Robert is interested to know how the pair of entrepreneurs are drumming up the business and getting their name out there as the best on the market. Lance goes on to explain that they have strategic partnerships set up with the two massive websites – Living Social and Group-on.
Upon hearing this, Daymond wants to know if there are any competitors out there doing exactly what Pink Shutter Photobooths is doing. Lance admits that there are a few competitors out there to which Daymond asks why people would choose Pink Shutter Photobooths over a competitor. At this point it seems that Mr. Wonderful has heard enough. Kevin does not believe that the company is worth $3 million as he does not think that anything about Pink Shutter Photobooths is proprietary. Kevin sums up that the valuation the duo has put on Oink Shutter Photobooths is a joke before declaring himself out.
Lance is desperate to convey to the sharks that they are making money and the company is a successful one. Lance goes on to talk about the profit they will make this year and Robert quickly interjects asking why they need the financial investment from the sharks. Lance admits that they do not need the money. At this point Barbara says she will be a partner saying: “No money, no problem”. Lance explains that they are looking for strategic introductions and the relationships the shark have to get Pink Shutter Photobooths out on to a broader market.
Daymond asks if they duo takes a salary to which Lance replies he is currently taking a salary. When Daymond asks how much, the sharks are surprised to hear that he is taking a salary of $99,000. Upon hearing this, Daymond wants to know exactly how much Tom plans on taking as a salary for himself. He is unwilling to commit to a figure, however Daymond pushes him for an answer. Tom admits that he would more than likely pay himself the same salary as Lance.
While Mark does not believe there is anything wrong with taking such a large salary from the company, he feels like there is massive room for other similar companies to come in and undercut them. For this reason, he declares himself out.
The fact that Lance and Tom are taking such large salaries still does not sit well with Daymond. He also thinks that they are looking for a large investment and feels hard done by that they would take two thirds of this to pay themselves. For that reason, he also declares himself out.
Robert acknowledges the fact that Lance is a great hustler before admitting that he does not have the time to commit to such an investment. Lance tries desperately to dissuade Robert from declaring himself out by saying that all they need is thirty minutes per week. Robert cannot be persuaded and declares himself out.
This leaves just Barbara left. Will she invest and save the day for Pink Shutter Photobooths? Barbara says she believes everything Lance is saying and she also thinks that the duo has a good thing going on. However, she also thinks the valuation of the company is far too high. For that reason, she decides to offer the duo the $300,000 in return for a thirty-three per cent equity share in the company. She also makes the point that when the salaries are paid, she wants her salary of $100,000 too.
The other sharks are intrigued at Barbara’s offer and Mark is clearly toying with the idea of declaring himself back in. Barbara being Barbara, is unwilling to wait around and puts pressure on Lance and Tom to decide.
Mark offers the same as Barbara except would not take an equal salary until the sales of Pink Shutter Photobooths hit $1 million. The duo need some time to think both offers over and go away to consider. Lance and Tom come back with a proposal for the sharks. They ask if Barbara and Mark would be willing to team up and invest without the offer of a salary. Lance also states that they only want to give away a twenty-five per cent equity share of the company. Neither Barbara nor Mark are willing to accept a smaller equity share of the company. Mark decides to make it easy. He does not think Lance and Tom are definitive enough and he declares himself out for a second time.
After a moment of consideration, Lance and Tom agree to accept Barbara’s offer. Another successful deal to come out of the shark tank.
Pink Shutter Photobooths Now in 2018- The After Shark Tank Update
Since the Shark Tank episode aired, Pink Shutter Photobooths have been lucky enough o enjoy huge success. After closing the deal with Barbara, true to her word, she worked hard with Lance and Tom to get Pink Shutter Photobooths out on the broader market. Barbara helped Lance and Tom get invited to many high profile events hosted and sponsored by huge names such as Dreamworks, NBC and Hulu to name but a few.
Further to that, since appearing on the shark tank, Pink Shutter Photobooths are enjoying the success and publicity. Lance and Tom are making the most of this and working to make the company bigger all over the United States. Overall, a hugely successful deal for Lance, Tom and of course for Barbara!