Pips and Bounce Before Shark Tank
Ping pong has been a staple for many generations. It brought many people together and is the perfect activity to meet new friends and strangers. Eugene and Michael Jung are brothers who grew up with a deep passion for ping pong. They spent most of their childhood playing the game and bonding over it. However, when they grew up, they got to play less and less, so they decided to create Pips and Bounce.
Pips and Bounce started a Kickstarter campaign to raise enough funds to launch their first permanent location in Portland: a ping pong lounge. The Kickstarter campaign launched with a goal of $50,000 and managed to raise $51,059 from 138 backers in 45 days. Pips and Bounce finally opened its permanent location to the public in November 2014.
The Pips and Bounce lounge is for people who love the game to hang out, drink, and play. The lounge is equipped with several ping pong tables and a kitchen to serve snacks and drinks to customers. It has 10 ping pong tables which can be rented by the half-hour. The tables can either be reserved ahead of time or rented walk-in on a first-come-first-serve basis.
Eugene and Michael Jung spent their savings to open the Pips and Bounce lounge, which proved successful and showed potential for the business. The brothers decided to turn Pips and Bounce into a franchise, so they wanted a shark’s help and investment to successfully franchise their business.
Pips and Bounce on Shark Tank
Eugene and Michael Jung were on season 11 of Shark Tank to pitch their company, Pips and Bounce. The brothers came on the show seeking $500,000 for 10% of their business at a $5 million valuation. They pitched Pips and Bounce to the sharks, demonstrating the company’s lounge in a slideshow. The brothers offered each shark one of their signature Pongtails as they talked about their business.
The brothers planned to turn Pips and Bounce into a franchise, so they told the sharks their numbers. During its last three fiscal years, the company made $974,000 in revenue in the first year, $1,033,000 in the following year, and $950,000 in its last fiscal year. The company’s first store is 4,500 square feet, with a 7% profit margin.
Daymond wanted to know the brothers’ background. Eugene had lived in New York City working as a Building Development Marketer for an international law firm before the brothers founded Pips and Bounce. Michael, on the other hand, had been working during the day with clean energy policy, while at night, he had been developing Pips and Bounce.
Kevin believed the 7% profit margin was not enough for investors to invest in a franchise business. He claimed a business with a million-dollar model should make 14%, which would allow investors to profit off their investment. He exclaimed that Pips and Bounce was nowhere near 14% profit margins, so it would be a bad investment. Mark agreed with Kevin’s comment and inquired about the number of units the company had.
The brothers said they had just signed the lease for their second unit in a corporate location in Minneapolis, Minnesota. They had a budget of $1 million for the second location. They planned the second location to be a showroom and a training center.
Mark Cuban believed the brothers were too early and hadn’t yet proven they could successfully operate a multi-unit franchise, so he was out.
Daymond John loved the story and the drink he was offered but hated ping pong, so he was out.
Lori Greiner expressed her love for ping pong but was inclined to agree with Kevin; the brothers were too early to turn the business into a franchise, so she was out.
Maria Sharapova, a guest shark for the episode, believed Pips and Bounce is a good idea as people have been proven to be willing to pay for entertainment activities that don’t involve eating. However, she agreed with the others that it was too early to invest in such a business, so she was out.
Kevin, the last shark in the tank, wanted to know more about the company. The brothers said they had put all their money into the company, $300,000. They believed Pips and Bounce was worth $1 million because they were valuing the franchise, which had the potential to expand drastically as the business gained traction. The brothers believed they had a present value of over $100,000 per location. Mark stated once more that Pips and Bounce was not ready to franchise yet, and it is overall a bad move for the company.
Kevin O’Leary liked the brothers, but he claimed the presentation and the franchising idea were horrible, so he was out.
Empty-handed, the brothers left the Shark Tank. They knew their franchise would grow, and the rejection from the sharks was just a learning experience for them.
Pips and Bounce Now in 2024 – The After Shark Tank Update
After their rejection on Shark Tank, the brothers continued operating Pips and Bounce and working on the second location. Unfortunately, the Covid-19 Pandemic halted their business, and they were forced to temporarily shut down under the new pandemic restrictions. The brothers had plans to re-open by the end of 2020 but later decided against it, fearing their business would be part of the problem.
Pips and Bounce seems to be doing well in 2024 but is yet to open its second location in Minneapolis, Minnesota. Both brothers are working hard to develop their lounge and perhaps open a second center soon. Pips and Bounce has even been hosting monthly ping pong leagues and tournaments with prizes for the winners.
Pips and Bounce seems to have recovered from the pandemic and is en route to becoming a successful franchise. Despite not landing a deal with a shark, the Jung brothers worked hard to make their business a success. For more updates and information about Pips and Bounce, visit their website here.
