Lance Yabut and Tom Kanemoto run a Photo Booth business, providing entertainment for social events. Will they earn a picture perfect deal on
Shark Tank Pink Shutter Photobooths Update
- Entrepreneurs: Lance Yabut and Tom Kanemoto
- Business: Photobooths for social events
- Ask: $300,000 for 10% equity
- Result: $300,000 for 33% equity and an equal salary distribution
- Shark: Barbara Corcoran
Lance and Tom brought their company Pink Shutter Photobooths to the tank. They pulled the sharks out of their seats to take some fun photos. The sharks enjoyed playing with the props, and collecting their photos when the photoshoot ended.
Kevin O’Leary was quick to get down to brass tacks. He asked wanted to know about the business model. Lance explained that he and Tom owned and distributed all photo booths to the customers. Robert Herjavec asked about sales, and Tom said they had made $195,000 in their first year. So far in their current year, they had grossed $135,000.
Robert asked how customers were finding the company. Lance said they had some strategic partnerships with Livingsocial and Groupon to promote their brand. Daymond John asked about competition and what made them a better option. Tom said that most of the competitors are small, “mom-and-pop” establishments that couldn’t provide the same quality experience as they could.
At this point, Kevin challenged Lance and Tom. He asked why he couldn’t take $3 million and do the exact same thing. After all, Lance and Tom’s offer assumed a $3 million valuation, and Kevin felt this was grossly inflated. Before the entrepreneurs could respond, Kevin dropped out.
Lance seemed insulted. He said they had grossed $83,000 in the last thirty days, and projected to finish the year with $500,000 in sales. He also mentioned that this was accomplished with no capital infusion. Robert asked how much profit they would enjoy from the $500,000, and Lance said 60%.
Robert wondered, if this was all true, why they even wanted the money from the sharks in the first place. Lance said they did not need the money. In response, Daymond asked if Lance was taking a salary, and he said he had paid himself $99,000 the previous year.
The sharks didn’t like this, and it didn’t take long for Daymond to lay in. Daymond said that Pink Shutter Photobooths, based on the numbers Lance provided, would net $300,000 in the coming year, and pointed out that Lance would then help himself to 30% of the profit.
Daymond turned to Tom and asked how much salary he would take. Tom pretended he wasn’t sure, but Daymond called him out and accused him of “playing possum.” After some pushing, Tom confessed he was going to take the same salary as Lance.
Daymond was furious that the two entrepreneurs were there asking for $300,000 from an investor while they simultaneously planned to pocket $200,000 in salaries alone. Robert defended them, saying there’s nothing wrong with paying yourself for your work, but Daymond was not pleased.
Mark Cuban asked if Lance and Tom were capable of generating an additional $200,000 in sales to make up for the salary. They said they could do it, although Kevin disagreed. Mark then said that Pink Shutter Photobooths success only was showing the potential in a unique market and, because of their high margins, it was only a matter of time before a competitor came in and undercut them. With that, Mark was out.
Daymond jumped back in to continue harping on the salary issue. He felt it wasn’t right to ask for $300,000 from a shark while they were taking $200,000 for themselves. Daymond also felt it wasn’t right to only offer 10% equity and then expect the investor to put their contact list to work for them. For these reasons, Daymond was out.
Robert applauded Lance and complimented him, saying he was a “great hustler.” However, he valued his time too much to give to Pink Shutter Photobooths and give it the attention he believed it needed to grow. Lance claimed it would only take Robert a half-hour per week, but Robert said he had to be out.
Barbara Corcoran looked around and asked if anyone else was still in, then she began her spiel. She said she believed everything Lance was saying and thought they had a good thing going. Barbara offered $300,000 for 33% equity, but that wasn’t all. If Lance and Tom were going to collect salaries, she too wanted to collect an equal salary. Any time they took out money from the business, Barbara would get a disbursement too.
Mark perked up and told them to hang on before saying anything to Barbara. He said if that’s an option, he could be interested in coming back in. Barbara argued that Mark was already out and he’s not allowed to come back in, but Mark rejected that and said he could do whatever he wants. Barbara tried to pressure the entrepreneurs into saying yes, but they waited to hear what Mark had to say.
Mark said that he was interested in that valuation, but he didn’t care about getting money back in the beginning. Instead, he wanted to offer $300,000 for 33% equity at first, drive growth and sales, and then, after passing the $1 million mark, he would then receive equal salary distribution.
Mark tried enticing Lance and Tom, saying that he had a channel called AXS TV and numerous strategic partnerships that could get Pink Shutter Photobooths into major events. Lance was intrigued, but returned to Barbara and asked what she would bring to the table if they chose her instead.
Barbara said she would do exactly what she does for all her entrepreneurs, and that, unlike Mark, she was a working partner who actually helped her entrepreneurs grow. While Mark had provided a specific strategy, Barbara provided only her general rhetoric.
Tom asked if they could step into the hallway to discuss, and the sharks granted the request. Barbara turned to Mark while they were in the hallway and said his decision to come back in was a “creepy thing” to do. Mark said he liked the deal she pitched, and he thought he might like it for himself. The two bickered over who had the better deal until Lance and Tom returned.
Lance asked if Mark and Barbara were interested in working together. Mark asked if that meant they were going to take a salary or receive none. Lance said there would be no salary distribution for the sharks in his counter offer of $300,000 for 25% equity and two sharks.
Daymond warned Lance to take caution. He said that all the sharks had noticed them about to take Barbara’s deal before Mark came back in. If they weren’t decisive enough, they might come down with what Kevin referred to as “bone in mouth,” referencing a metaphor he had used earlier in the season.
Lance argued that he was going to take Barbara’s deal, but Mark coming back in provided him new information. Daymond asked if the $300,000 for 25% equity was his final offer then, and Lance said it was not final; just a counter.
Barbara drew attention to the fact that, after they returned from the hallway, the deal had gotten worse for the sharks. She said no. Mark also said absolutely not, then said he would make it easy and go out again. He said the pitch was a place for the sharks to see an entrepreneur’s decision-making skills in real-time, and he was disappointed in what he was seeing from Lance and Tom.
Now with only Barbara’s offer on the table, Lance had nowhere left to turn. With no other options, Lance and Tom accepted Barbara’s offer for $300,000 in exchange for 33% equity, and an equal salary distribution. What came next for the company? Keep reading our Pink Shutter Photobooths update to find out!
We have mixed news to share in our 2023 Pink Shutter Photobooths update. Barbara helped them scale, and was able to get them sponsored by big names like Hulu, NBC, and Dreamworks. By 2021, the company had ten locations spanning from Los Angeles to New York to even Honolulu. Oddly enough though, in the second quarter of 2023, the company website appears to be down. In addition to this, social media accounts have not been updated since 2019. It’s unclear at this time if the company is still in business.
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Andrew Smith is the founder and owner of Shark Tank Recap. He is a longtime Shark Tank fan that has been watching it for years and has seen every episode multiple times. His friends know him as the Shark Tank expert, because he can answer any question about the show! His favorite Shark Tank products are Bertello's pizza oven and Bug Bite Thing!