Pink Shutter Photobooths
DEAL
EPISODE SUMMARY
🕓 Air Date: May 10, 2013
Asking For:
$300,000 for 10%
Investor:
Barbara Corcoran
Deal:
$300,000 for 33%
PRODUCT SUMMARY
Pink Shutter Photobooths offers premium, high-quality, and spacious photo booths for events, providing guests with memorable experiences and hosts with lasting memories.
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Background Story
Pink Shutter Photobooths, founded by Lance Yabut and Tom Kanemoto, stemmed from their shared passion for making events unforgettable. Based on their experience attending events where traditional photo booths produced lackluster results, they saw an opportunity to innovate. Both Lance and Tom have backgrounds in event planning and technology, which equipped them with the skills needed to create a superior photobooth experience.
They began by investing in high-quality equipment and designing spacious booths to accommodate more people and allow for creative poses. Their business quickly gained traction in multiple cities, thanks to strategic partnerships with leading deal sites like LivingSocial and Groupon. Despite facing competition, Lance and Tom differentiated themselves by focusing on scalability and superior customer experience. They aimed to revolutionize the event industry by offering a premium service at a competitive price point.
The Product
Pink Shutter Photobooths boasts premium, spacious photo booths that elevate event experiences. Unlike traditional cramped booths, Pink Shutter’s booths accommodate more people, allowing for group shots and creative poses. The booths are equipped with high-quality cameras and printers, delivering instant printouts for guests to take home as souvenirs.
Additionally, hosts receive digital copies of all photos captured during the event. The company offers flexible rental options and provides setup and teardown services for hassle-free experiences.
Clients can book booths through the company’s website or through partner platforms like LivingSocial and Groupon. Pricing varies based on the duration of the rental and additional services required, ensuring affordability for various event budgets.
How It Went
The company’s position before Shark Tank
Pink Shutter Photobooths experienced steady growth since its inception, with operations in multiple cities across the United States. In their first fiscal year, they generated $195,000 in revenue, and in the second fiscal year, they projected $500,000 in revenue. The company owns all its equipment and assets outright, maintaining control over its operations and ensuring high-quality service delivery.
Strategic partnerships with leading deal sites like LivingSocial and Groupon expand their reach and attract new customers. However, despite their success, the founders sought additional funding to fuel further expansion and capitalize on emerging opportunities in the event industry.
The Negotiations:
Despite impressive sales figures and profitability, the Sharks expressed skepticism about Pink Shutter Photobooths’ valuation and business model. While the founders initially sought $300,000 for 10% equity, the negotiations did not yield a deal. Barbara offered $300,000 for 33% equity, with Mark potentially joining the deal.
However, Lance and Tom countered with a joint offer of $300,000 for 25% equity, which the Sharks ultimately rejected. Barbara criticized the founders for changing their offer and ultimately declined to invest. Ultimately, Pink Shutter Photobooths left the Tank without a deal, but the founders remained optimistic about their partnership with Barbara and the company’s future prospects.
