tv The News With Shepard Smith CNBC May 10, 2022 12:00am-1:00am EDT
with lori's network and marketing abilities to get this out to the masses and build awareness is why i wanted to work with her. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪♪ i'm erica cohen. and i'm lori barbera, and our company is... (both) baby's badass burgers. smokin', o.b., no cheese. baby's badass burgers is a mobile food truck concept that has a gorgeous pink truck, beautiful burger babes, and the best burgers in l.a. order up. i have an extensive background in events and marketing. and my background is in the restaurant industry.
i've opened and launched many restaurant concepts. whoo! together, we're the perfect duo. we really do have the perfect burger. i agree. it's not an easy thing to make the perfect cheeseburger. you have to have a great bun-to-meat ratio, you have to have quality meat, the perfect bun, and quality ingredients. we have all of those with baby's. great. thank you. thank you. enjoy. (erica) we're ready to take baby's to the next step. we have a huge hit on our hands, and this is just the beginning. one taste of our burgers, and we know that the sharks will be hooked. ♪ hi, i'm erica cohen. and i'm lori barbera, and our company is... (both) baby's badass burgers. and we're looking for $250,000 for 30% of our business. baby's badass burgers is a playfully unique
and entertaining bright pink mobile food truck that sells high-quality gourmet burgers served by a fun, friendly, and attractive staff. while opening a restaurant in l.a., i met and became friends with lori, who also shared my love for the almighty burger. we took our concept to the streets of l.a. in late 2009, and have developed a cult-like following ever since. our motto is, "come for the burgers, stay for the buns." (laughter) today... (laughs) today we've brought some of our signature burgers for you so you can try these beauties for yourselves. for robert, i have an all-american girl, and for barbara, i have a she's smokin'. (barbara) i like the way it sounds. we know you like barbecue sauce. yeah, i do like barbecue sauce. (woman) for kevin, i have an original beauty. for daymond, i have the other woman. thank you. (laughs) the other woman! yeah, this baby got back. and for mark, i have the perfect 10. thank you. oh, please! stop sucking up! (laughter) wow, this is the heaviest burger i've ever... (barbara) i know.
that's our half a pound "maneater." that's a lot of meat, ladies. yes, it is. it is. it's a great burger. thanks. thank you. all we need is an investor to jump on board so that soon you'll see a baby's badass burgers in every major city. so, which one of you sharks is going to take the biggest bite? so i give you $250,000. how do you spend that money? that's going to, um, our first storefront. so you've been successful with the trucks, and now you're giving that up? very successful. great, wildly successful with the truck... interesting. and now it's time to turn this into a brick-and-mortar business. what makes you think that the brick-and-mortar will work? (erica) just simply because the product is great. people love it. i mean, literally, we open the doors, and we get a line wherever we go. different business. the minute you-- it is, but-- we know. we--know. we--we really know. you guys do realize $250,000 won't cover the front door? it will not. no, it'll-- we actually have some of our own money to invest as well. yeah. we put ourselves in an excellent position so that we are able to also put $50,000. okay, that's still not gonna get it done. it's not gonna come close. is that even enough to open the first store?
yes. absolutely. we're looking at a 1,500-square-foot-joint. square foot. so you're not considering making more trucks? cor--are you? we're not considering the trucks. (barbara) why not? we want to roll these out as storefronts. why not? why not? because trucks, as--as fun as it is, it really was always the vision to roll it out brick-and-mortar. and that's what we do. that's where our experience lies. (kevin) are you actually profitable? we sure are. yes. in the three years that we've been in business, we've done $815,000. (daymond) total? total. yes. average was $250,000 a year? well, we're looking to do $375,000 by december. erica, what's your profit? we take home about 15%, as opposed to a 10% which is usually standard in the restaurant-- and that's after paying yourself, everybody? you've paid yourself as well? we're included in that. okay. but, erica, you get this once-in-a-lifetime chance... mm-hmm. to get in front of us... right. to pitch an idea. you come out with a working concept, and you say, "no, we're not gonna do that. we're gonna do this drawing, which we've never done." no, and we--we have that. i mean, we-- (speaks indistinctly) right. lori and both come from the restaurant industry. exactly. between us, we've both opened seven restaurants, so...
but how many of these restaurants have you opened? none yet. we're coming with a concept, a brand, and a product... right. and an experience that we knew was-- we know is already proven. that store is gonna cost $750,000 to open it. you won't know for three months if you're gonna make it or not. there's so many-- so much risk that you don't have now with your business model. operating a physical location like that costs hundreds of thousands of dollars. i don't get it. what's the matter with you people? why aren't you sticking to the trucks? why aren't you saying, "mr. wonderful, "give me $250,000 to open up 5 more trucks. in return, it's 20%." why isn't that the story? our--our dream is to open restaurants. yeah, but you're telling us-- you're telling us you don't understand the fundamental tenets of business. yeah. number-one rule-- follow the money. and the money is right in front of you. it may be great that you have a dream to open up a restaurant... mm-hmm. but i'd rather follow the green than the dream. and this doesn't mean you won't open the restaurant. yes, it does. i forbid you. if they get to 20, 30 trucks... i forbid you to ever open that restaurant. why? why would you say that?
because it's a really bad idea. you have a business that's making money. you've just proven the concept. why have you decided to open a brick-and-mortar operation instead of replicating this truck? i think there's a cap-out on the trucks. it's a cash business. um, you have to be so hands-on. you have to be present. and... we really want-- there you go! there you go! hands-on-- ding, ding, ding, ding, ding, ding, ding! no, i'm on that truck every single day. i work my ass off. you understand that when you own a restaurant... erica, so what? you're putting in 80 hours a week in the restaurant, too. absolutely. i've worked in restaurants, i've lived in them, i've opened them, i've put my money in them. it takes ten times more money to open one restaurant than set up one more truck. you're right. you could have ten times the leverage, ten times the sales, with the same amount of money. i understand your point to expand on the trucks. it was our vision to really go for it and do the brick-and-mortars. none of your data works in a brick-and-mortar. it is a completely different business. good pitch on the truck.
bad pitch on the brick-and-mortar. i'm out. i kind of get why finally-- why you want to open a restaurant. i think you're looking for a home for your business. you just want to settle in somewhere. um, what disturbs me-- you love to invest in a business where someone's in love with their business, instead of the guy who's trying to get out of that business and get into the new business. the idea that you're escaping what you're doing now and don't want it anymore makes me want to escape it, too, so i'm out. the truck isn't going anywhere. i mean, we'll always have the truck. the truck will help the restaurant, and the restaurant will help the truck. right. although i love seeing a truck, and you're right, maybe it would be great to see ten baby's trucks, i see bigger than that. that's always been the bigger picture with us. guys, i-i see the--the value. i also see the constraints on the truck. but it's a very binary decision. either it takes off and explodes, or it craters very, very quickly
like any number of--of people who had a lot of vision, a lot of hope, and a lot of great burgers. also, i know $350,000 is not gonna get it done. i don't think you really put the numbers on paper enough to really dig in to see what it's going to take, and for that reason, i'm out. i'm gonna give you a 9 out of 10 on the burger. i'm a burger connoisseur. we love that. thank you. i've eaten them from all around the world. there's nothing wrong with the product. but i'm gonna give you a 1 out of 10 on your strategy. you charbroiled a great idea. you killed it. i mean, you have a fantastic business. but i think you came in here and got slaughtered by trying to push us in a direction that you hadn't proven. had you said you could do ten trucks and you wanted $500,000, that might've been interesting. um... i think you made a classic mistake in here in the shark tank today. i'm out. i've been listening very closely. what i was listening for was that at any given time
as we were speaking, as partners, you would have said, "you know what? "maybe we are being too aggressive, "and we're ready to rethink that concept and roll out the trucks and make some money." but you're too stuck on what you wanna do. and i was ready to give you the money. too late. i'm out. okay. okay. well, thank you. thank you for your time. good luck, guys. thanks for the burger. thank you. thank you. burgers are great, guys. thank you. ♪ good, now we can eat the burger, relax a bit, you know? i finished mine already. yeah. wow. she was absolutely set on having a store. definitely. it was a dream. she almost had a chip on her shoulder about it. (daymond) yeah. and nothing we said was gonna get her away from it. i think the sharks underestimated, um, our experience, how much we know, and our ability to open and launch a restaurant.
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may pay as little as $0 copay. next up is james lavitola and brian pitt with a unique investment opportunity for the sharks. hi. i'm james lavitola. and i'm brian pitt, and our project is titled "track days." we're seeking $5 million... (robert) whoa! (daymond) that's a lot of money. in exchange for 34% equity in our production. now, "track days" is a full-length action film. i'm out. it revolves around the exciting world of... i'm out. a motorcycle world championship. i'm out. (laughs) you're so open-minded, mark. i'm out. did i say i was out? again, "track days" is a full-length action film that revolves around the exciting world of a motorcycle world championship. and what better way to make a blockbuster
than by combining one of the largest-grossing movie genres with the second-most-watched sport in the entire world? which is? professional motorcycle racing. now, we went ahead and put together a little teaser trailer for you sharks. (robert) awesome. but no premiere would be complete without some good old-fashioned american popcorn and candy. carrie, our lovely umbrella girl, is gonna pass you out some treats. thank you, carrie. now james will be dropping you off some premiere gift bags 'cause we all want a little good swag when we go to a movie premiere. let's start your engines, 'cause the race is about to begin. (robert) vroom! (rumbling) (motorcycle engine roaring) (engine revving) (beeping) (revving continues) (tires screech) (hard rock music playing) (thudding and crash) (tires screeching) (crashing and whirring, motorcycles roaring)
(crashing) (tires screech) (thud) ♪ (motorcycle roars) that's it? that's it? (laughing) so, boys, you want 5 million bucks to make a movie? i know how you feel that, you know, you think that filmmaking is a crap shoot, which we completely understand. however, brian is considered somewhat an expert in this field. (laughs) and with the crap shoot statement, we're gonna make it so that you're the house, and the house always wins. (mouth full) how are you gonna do that? brian? happy to explain it to you. we're gonna be bringing you a packaged product that has, uh... efficient foreign sales, efficient, uh, distribution. efficient or sufficient? sufficient. essentially, what we'll be doing is we'll be putting a-a script together, which is in the process of being rewritten. you don't even have a script yet? we-- we have the story.
we have the story. we specifically decided to go a different route with this-- me and my buddies get pitched stuff all the time. absolutely. and we invest sometimes in movies, but nobody ever comes along and says, "give me money and then we'll do the work." they pitch the script. we say... absolutely. "we like it," "we don't like it." "who's the producer?" that is the traditional thinking. we're gonna educate you... correct. on the new way that films are financed, to where you guys aren't risking your money. so we don't put in money? we don't want you to risk your money. often, what happens is, people go out and they put a script together and they get an actor, and then they come to a company like the one i used to run, where we would finance films. do you have an actor? no. by design we don't have an actor. specifically don't have an actor attached. okay, so i know mark is-- i know mark is already out-- we're getting him back in. he's coming back. i've heard this story many times before. yes. um, i executive-produced "the crow." yes, we know that. (kevin) you make any money? it became a horror flick in regards to making my money back. (laughter) so... i'm out. (robert) this is a record. now-- this is the fastest two guys have ever dropped out.
we're gonna get them back in. we're gonna get you back. we are gonna put together a package that you won't spend one dime until we show you foreign sales, domestic sales, distribution deals, product placement. you know, the film business is a bit of a chicken before the egg. you can make it happen if you have the money. you can make it happen if you have the best script in the world. you can make it happen if you have the best actor in the world. you know, and you can make it happen if you're the right people. why would we have confidence in you and give you $5 million? what's your background? so, film-wise, i've been in the business for about 12 years or so. i've been head of production-- head of physical production for a--for a very successful indie company. we secured a 9-picture distro deal with a major studio. we've produced eight feature films that went theatrical. and... how many--how many did you make money on? we grossed well over $200 million. "mr. brooks" is one that did fairly well. it was kevin costner, demi moore, uh, dane cook. did a movie called "waiting..." that did very, very, very well. and what about you, james? what about you? what's your background here? uh, when i was younger, i was on broadway. i came to l.a., did stunts. you know, i'm a huge motorcycle fan.
and there's been such a lack of movies made about them. (robert) i have an issue with the subject matter. yes, sir? i love racing, but not many people in north america love motorcycle racing. correct. absolutely. americans love nascar, not this kind of racing. correct. when we attach an actor, that will sell to america. if i put, uh, ryan gosling in this, my girlfriend's gonna go see it because of ryan gosling. but earlier you said that the actor's not important. no, uh... now you're saying he is. i'm gonna jump in here for a second. the actor's not attached by design. we're too early in the stages. if i put an actor to it at this point, when we got down the road, it may not warrant the sales that i need. walk me through the numbers a little bit. i give you $5 million today. you don't have a script. you don't have an actor. (james) we have a story. what happens to my cash-- what we wanna do is take your money, put it into let's say an escrow account or some kind of interest-bearing account to where we can't touch it. at that time, we can go and put the package together for you. we'll have a list of ten actors that fit the leading roles-- so can't start the project until people know... until you approve of everything. that the cash is there? we will not start the project until you're happy
with the calculated risk that you would have to take. because it would be very minimal. otherwise, we don't do the movie. guys, let--let me try to help you out. when you take a movie, and you have money behind it, then all the people you're pitching to think you're real. you're using our money as bait, basically? correct. yes, absolutely. absolutely. yeah. absolutely. the movie business-- it's the worst business i've ever seen in my life. but it can also be a very lucrative business. i can't give you a dime until i see the script, i know who's att--like, i just can't get my mind around that. brian, i think you're doing this 'cause you can't-- 'cause you're stuck and you can't get the money any other way. oh, no... why? why should i take the risk today? (james) here's the other thing that we're all forgetting about. this has such a massive, built-in audience that-- you have nothing today! who's still left on the executive producer list? uh, we're not--we're out-- we're already out, guys. we're already out. definitely? (daymond) we're out. all right. all right, you know, take it down. (mark) take 'em off. (robert) oh, that's funny. ohh... (laughing) (daymond) oh! oh...
well, i see mr. wonderful's next on the list, so let--let him speak. yes, sir. please do. it is a horrifically bad idea. i forbid you to proceed. i'm out. okay. okay. mr. wonderful's next. (robert) no! (james) he's going... (barbara laughs) (james) we got barbara and rob. (barbara) it's a--i'm next, i'm next. but i can't picture myself going home and telling my teenage son who i won't let get a motorcycle, "i'm financing a film on motorcycle racing." scare the crap out of me. it's not my kind of thing. i'm out. okay. vanna? (daymond and mark laughing) "vanna." (barbara) take me down. take me on down. okay, hold on because now this has become an issue. and... (robert) what's going on? it's going down to you, robert. (laughter) (brian) there's a producer left. (laughter continues) you gotta give an "a" for showmanship, right? that's great. you know, robert-- and we anticipated this. we anticipated this, so we figured you'd want to be in the race as well. you'll be in the movie, so... (sharks) ohh! (barbara) gotta say yes. i know you wanna be on the track, in the movie, on the bike. look... ludicrous concept.
you're transferring the risk completely from you to me. i can't get there without knowing more about it. okay. okay. we can do that. (robert) i love racing. yeah. "we'll switch our plan just like that." i can't be involved on nothing. okay. i have--look, i have... so... i'm out. okay. hit it, vanna. okay, get rid of him. (robert) no! no! there--he's out, vanna! (sharks) ohh... good luck, guys. close the cap. thank you, guys. thank you very much. good luck, guys. we appreciate it. thank you. ♪ you know, i saw this exact same deal in an e-mail from nigeria. (sharks laugh)
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kazam is a balance bike that is revolutionizing the way kids learn how to ride. if you notice, this bike does not have pedals, and here's why. the key to learning how to ride a bike is developing balance. think of it as a building process. you take one step at a time. with kazam, children are able to learn by themselves at their own pace, which makes it easy for them to then transition onto a regular bicycle. with the help of kazam, kids are having fun, while at the same time learning a life skill that will stay with them forever. now, who's ready to ride the revolution with me? beth, i think you should send the kiddies off, because i have a bunch of questions they probably don't wanna hear. can you ride off, honey? (robert) oh, what a diva. she doesn't want to leave. (laughs) so cute. what are you making them for and what are you selling them for? we make them for $28.25. the wholesale price is $45. direct to consumer for $99.95. mary beth, my option, if i'm struggling in this economy, is i can buy training wheels for $19,
or i can buy a kazam. both outcomes are gonna be the same. children have been learning how to ride a bicycle for decades with training wheels. it's that it's improving the way they're learning to ride. (barbara) how did you come up with the idea? born out of need, or... actually, this concept has been popular in europe for some time. we had a european neighbor who introduced us to this idea. we tried it with my own child who was then 2 at the time, and he learned like that. (snaps fingers) wow. me made our own design. we have a patented frame design. (barbara) what age category would be on this bike? maybe 2 1/2 up to 5, 5 1/2. it kind of depends on-- but i'm curious to why this company already has been doing this in europe, and then they're not selling over here if it was a-a product in demand. actually, we are not the only ones now in the market in the united states. okay. but what's different about ours is the patented frame design with the foot rest area. and... tell us about your competition. how much are they selling? the market's actually fragmented right now with several small companies like ourselves. how many? five or six, probably. what are your sales, mary beth? tell us about your sales. you know, what are they... to date-- we haven't been in business quite three years.
we have $1.4 million. whoa. what's your sales in the last year and the year before? last year were $611,000. in 2010, they were $384,000. great growth. (kevin) what do you think you'll sell next year? next year we're projecting $1.5 million. on the million dollars, what will your profit be? the profit margin is about 36% to 37%. i have a problem with your margins. they're not enough. how do you get them up to 45%, 47%? well, right now we're in a situation where we're doing batch manufacturing, which means a small quantity that we're ordering-- 1,680 bikes... do you know how many you'd have to buy at a time to increase your margins by 20%? you gotta get them up to close to 50%. we realistically would have to get to about 50,000. 50--so you've got a ways to go then. fantastic growth. if it maintains this way, you're gonna suck up a lot of cash. mm-hmm. the only way to get some relief from that is to enhance these margins dramatically. okay, mary beth.
i think what's going to happen here is you're going to require a significant amount of capital. and that's what i don't like about your deal. because, for me, it's how do i get my money back? i'm not gonna take that chance. i'm out. okay. and let me just say this-- this is not limited to toy and bicycle. this bridges to education, preschools, daycares, occupational therapy. have you gone back to the european market, or are all of your sales in north america? actually, we just got picked up by the largest sporting goods store in all of europe. it has 700 stores. and they just ordered a container f.o.b. okay, so you're talking about raising $300,000. what else would you use the money for? we'd actually like to create an--another product. we want to have the 2-wheeled bike as the next step up from the kazam, for the "kazam graduate." (robert) a pedal bike? a pedaled bike. why would you do that? do you know how competitive that is? (laughs) that is. you can buy a bike for $39. that's true, but with a quality product
and the fact that we've created a loyal customer-- i forbid you to do that. and i'm out. mary beth, it sounds like you're becoming the market leader. it scares me that you would want to go away from something that you're great at, you're growing, and then start competing with a huge market with huge competitors. why would you do that? well, and i'll tell you why-- because we get asked all the time from our retailers, "when are you coming out with something new?" we want to build a brand-- yeah, you're, you know, you're gonna drown in opportunity. entrepreneurs make that mistake every day. just because somebody asks doesn't mean you should do. i commend you on the sales. you made a great argument. i mean, you've answered all the questions really well. it's just a personal thing. i wouldn't buy one. i'm not saying that's good or bad. you gotta have somebody along for the journey who really believes in it. um... i'm not that guy. i'm out. (daymond) uh, i think you have a great concept here, but if i gave you my money, i would feel like i would never get it back. i'm out. mm. okay.
what i'm concerned about is i don't see your competition as being only the tricycle market. it's the tricycle market, the training wheel market. it takes a lot of money and real high focus. i'm wondering-- you have a very mild manner. are you the type of person that could do that? really? i'm surprised you said that. (laughs) i just don't feel that fire in you. listen, i'm the one that's running the day-to-day operations. i could picture you as organized, but again, even in that answer, i don't feel that fire coming out. are you willing to pour boiling oil over your competitors? (laughter) (mark) yeah. that's what she's asking you. in a nice way. are you saying she's not aggressive? i'm not sure. i'm here because i want to blast them away. i want to emerge this company as the leader in this market. barbara's right. when you get a chance to step on the throat of your competitor, you just gotta step, squish... gosh. and let the roadkill be picked up by somebody else. you give articulate answers, nice and steady as you go, but i'm looking for that thing, that heat! you're right. i'm a shy person. i'm a reserved person.
but i have spent every day of the last three years working on this because i know it's a proven concept. i know that we can be the leader. and i want to be that person who is poised and ready to enter the mass market when that time comes. you know what? i'm gonna-- i'm gonna find out just how much killer you have in you. i'm gonna make you an offer. $300,000 for 40%... (kevin) ouch! okay? (daymond) ooh. but it's contingent on you convincing barbara to come in with me.
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ree sharks are out.matologist about skyrizi. mark has made mary beth an offer, but she must convince a skeptical barbara to go in on the deal. $300,000 for 40%... (kevin) ouch! okay? (daymond) ooh. but it's contingent on you convincing barbara to come in with me. so she does not get barbara to come aboard... i'm out. and i'm gonna give you 24 seconds to convince barbara, so you're going to have to come high and come hard,
and we'll find out just how aggressive you are. (daymond) let's go. mary beth, i'm gonna give it to you right now. you say to barbara, "listen, you witch." (laughter) "if you don't come in on this deal, i'm gonna set you on fire with lighter fluid." set her 24-second clock, please. there he goes. are you ready? go. go. i've had to learn this business from the ground up. i did not have any prior business experience. nobody knows this company more than i do. i get up early, i work while my kids are at school, i take them to soccer, i come home, and i work until 11:00 at night every single day. this has become my life. and i am not willing to walk away from it until we become the top leader. i'm sold. mark, i'm in. do we have a deal? (exhales) (kevin) 40%. 40% is high! it'll be worth it. 40% is too high. we valued our company correctly,
and i'm definitely confident in that. then come back and make a counteroffer. could we do 32%? ♪ okay, okay, okay. $300,000 for 32%, barbara and i partnering together, and we come in and we make kazam huge. do we have a deal? we have a deal. amen. (daymond) all right. (barbara) nice. (clapping) i'm proud of you. (laughs) thank you. a big hug. awesome. thank you. you got better as you went. exactly. barbara, you hurt my feelings. i love you! i wanted to hurt your feelings! i wanted to hurt your feelings! thank you. i need to take one of these home for jakers. jake's gonna love it. i never thought insulting people was the way to go, but you brought something out of her. that's--she's a snake. who? barbara. (laughter) i can't believe this. i can't believe this. it's a dream come true. it's what i've been working for for so long-- for the last three years. this is going to be the big break. ♪ earlier this season, cheryl rigdon
failed to get a deal with the sharks for her makeup tool, the spatty. i think we're all in love with you. it's just too early for us. let's see what she's up to now. ♪ even though i didn't get a deal, i haven't given up on the spatty or spatty daddy. oh, you saw us on "shark tank"? before "shark tank," i only sold 15 spattys. after "shark tank," through my web site, i've received pre-orders for 7,000 spattys. at one point, i had to stop taking orders for the spatty because i was completely sold out. sales from my product have reached $32,000. you know, it might not seem like a lot, but that's huge to me. well, i can't wait to see it. and with that money, i've been able to take my handmade prototype into a mass-produced product at a real factory. there you go. is that what you were looking for? yes! that is awesome! i'm really proud to say that i'm building this company on my own. when the sharks said they didn't have time to build a company from the ground up, i didn't understand that then, but i understand it now. (laughs)
it was great talking to you, too, daymond. thank you. in the tank, daymond offered to help commit me to people in the beauty industry. not only has he done that, but he's worked with me to help me find a licensing deal. "shark tank" was definitely the catalyst to get my business off the ground. company's doing great, and, you know, the future's looking really bright for the spatty and spatty daddy.
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comcast business. powering possibilities.™ next up are lance yabut and tom kanemoto with a way to make every party more memorable. hi, my name's lance yabut. and my name is tom kanemoto. we're seeking $300,000 in exchange for 10% equity in pink shutter photobooths. we've taken the fun and nostalgia of the old-fashioned photo booth and turned everything on its head. we're revolutionizing the entire industry. have you guys ever tried to take a family picture, to only have them come out stiff and boring? with a super-fun pink shutter photobooth... (robert chuckles) you won't even have to beg your kids to smile. our pink shutter photobooths are some of the most premium, high quality, and luxurious photo booths in the nation. unlike other cramped photo booths, our spacious booth means more people, more poses, and more fun. you can just imagine how interesting those pictures get as the night wears on.
only you won't have to imagine it, because not only do your guests get a high-quality printout to take home, but you get a copy of all the pictures. whoo-hoo! memories to last a lifetime. (laughing) so, sharks, enough talking. let's get ready to have some fun. come on down, pick a prop. (both) it's party time! hey! why not? whoo! let's go. come on down. come on down, guys. so, uh, we got a nice-- a lot of cool props for you guys to choose from. so go ahead, put your props on... oh, i love that. whenever you pick them out. we knew that was for you. you guys are-- it's definitely for me. oh, there you go. daymond, i feel like this one is for you. you got me, like... (laughter) oh, yeah, baby. money. oh, yeah. yeah. get in here. look at this guy. wow. you gotta hold this. (laughter) (robert) hang on. get in here, mark. get cuban in here. let's squeeze it in. get in here. all right, hit it. (man) nice. (daymond) cheese! (shutter clicks) (indistinct conversations and laughter) (barbara) that's fun! (lance) yeah, it was fun, right? it's fun! did you have fun? but we weren't paying anything. okay, boys, let's walk us through the business model here. our business model is a corporate model. we own and distribute all of our photo booths
across many different locations. currently, we're open in sacramento, los angeles... thank you. and las vegas, san francisco... look at daymond. and san diego. (laughter) so do you own all the equipment? yes. that stays on your balance sheet? that's correct. we own all the assets in the company, free and clear. how big, money-wise, is this business today? well, in our first fiscal year, we pulled in about $195,000. in our second fiscal year, we're in our first quarter, and we've pulled in $135,000 already. guys, look. photo booths are ancient. what makes you guys different? well, what makes us different is that we've cut the overhead costs from most photo booths. most photo booth companies can only service events if they're making $1,000 per event, because it's a huge setup. so how much does each setup cost you, all in? it costs us about $3,500 in equipment and about $500 labor to actually build the booth. (robert) how are people finding it? as you go to a new market, how do i know you're there? well, we have strategic partnerships already set up with the largest deal sites on the internet--
living social and groupon. so, are there any competitors that are doing the same thing you're doing? there are--there are a few competitors out there. we're not gonna lie. there's a lot of competition. so what is--okay, so what's your secret sauce, or why are people coming to you? well, one of the big things that makes us different is most photo booth companies that are out there are mom-and-pop shops that are more than happy to just be contained in that one area. lance, do you think for $3 million i could find a couple of guys with pink shirts and black ties, buy some photo equipment, advertise in a few cities, and crush you like cockroaches? i don't-- 'cause that's the question you have to answer. that's the thing that matters to me. now we're talking real money. this is not worth $3 million. you know why? there's nothing that's proprietary about it. nothing. $3 million's a joke. i'm out. but we're making money. last 30 days of sales-- $83,000. this fiscal year, we're slated to make $500,000 with no capital infusion. and what will your profit be on that?
60%. why do you need the money? we don't need the money. we have great credit. we have--we have banks that... (speaks indistinctly) i'll be your partner for no money. no problem. we need the strategic introductions. you guys paid yourself yet? um, i currently do take a salary. what do you take? i'm taking $99,000. i know these don't sound like a lot, but... oh! wait a minute. and the company made $300,000, correct? $333,000. so you took 30% out of the company already? no, not yet. no, i just started taking a salary just two, three months ago. okay, so you're gonna pay yourself $100,000. what are you gonna pay yourself? i haven't really thought about it yet. no, no, no. come on. don't play possum with me. he's getting $100,000. okay. what are you gonna pay yourself? same. same. so $200,000. $200,000 in salaries already, right? there's nothing wrong with that. wait a minute, wait a minute. $200,000 in salaries, and you just took $300,000 from us. okay. can you generate $200,000 in sales? i believe so. okay. you just made your money back. yeah. no, that's not right.
guys, here--here's the challenge. all you've done is shown everybody that there's a unique market out there, and while they may not be as good as you, you've set the price for your service, and the fact that there's huge margins for someone to come in and undercut you. for that reason, i'm out. you don't need the money, but yet you want $300,000. you're gonna pay each other $100,000 apiece. only offering us 10%. wanting us to go out and work for you. $300,000 is a lot of money. that is a lot of money... (speaks indistinctly) right? i'm out. thank you. (robert) lance, you're a great hustler. i mean, you guys are out there, you're doing it. you're not the reason i can't be in. my time is the reason. you know-- we just need a half an hour a week. that's all we're asking of your time. i-i gotta be out. well, thank you. anybody else here?
you're the only one left, barbara. you're it, barbara. i believe everything you're saying. i think you got a good thing going here. i think you're... you're like an eveready battery. i think your valuation is way high. i think you know that already. so i'm gonna offer you $300,000 for 33% of the business, all right? okay. the only thing i want is when you pull your $100,000, he pulls his $100,000, as you take it, i want to pull my $100,000, too. (robert) oh! interesting. okay. barb, you sly fox. i like the way you framed that. okay, look, you guys-- before you guys consider that, if that's in the ballpark, okay... we're open to suggestions. all right-- my money's getting cold here, what do you say? but wait. before you say yes... hang on. wait, you're out, mark. no, i-i can come back in. no, you're not. there's no law that says i can't come back in. what do you say, guys? ♪
own your strength, and see how far it takes you. lance and tom have one offer on the table from barbara, and mark may have had a change of heart. my money's getting cold here, what do you say? but wait. before you say yes... hang on. wait, you're out, mark. no, i-i can come back in. no, you're not. there's no law that says i can't come back in. what do you say, guys?
at that valuation, i'm far more interested. i don't care about necessarily getting my money out immediately. i care about the growth. what i would do is do a deal comparable to barbara-- $300k for a third-- but wouldn't take anything back until your sales hit a million dollars, so... that's only one year. yeah, one year. well, it's one year or two year, but at least you get there. i can get you to the event organizers. i have a company called axs tv that broadcasts live concerts, and we're partners with aeg, setting them up at festivals. branding it as axs tv, and having it there, the challenge is going to be we'd have to move incredibly fast, simply because i think competition is a huge risk. so i'll let you pick. w-well, um, so you said you're gonna bring us into the concert industry. right. and then, barbara, what will you be bringing to the table? i'm gonna bring to the table exactly what i do for every one of my successful entrepreneurs. i'm gonna bring my marketing expertise. i'm gonna bring everything i know about business.
okay. i'm gonna be there when you need it. you're just going to get a real working partner, and, believe me, there is a difference. 'cause if you were to speak to all of my entrepreneurs, that is what makes the difference between where they are and where they went. can we have a minute to--to talk it over? sure. okay. thanks. that was a creepy thing to do. absolutely. what'd you do that for? because once it became a good deal, it was a good deal. at $3 million, it wasn't a good deal. yeah, but you rode on my good deal. come on. i mean, i like both of their offers. you know? i mean, she's... $100,000! that's a lot of money. you should know better. you should know that i'm the better partner, and you know it, mark. actually, you set it up, barbara, i'll give you credit, but they're crazy-- you'll give me credit? they're crazy to pay you a $100,000 salary. they're crazy! ♪ all right, so we actually have a proposal for you guys. would you, barbara and mark, be willing to come in together?
do we get to take the salary, or which deal is it? without the salary. with-- without the salary. oh... so our counteroffer is $300,000, 25% equity, with barbara and mark. i want to give you a piece of advice right here. we all noticed that you were about to say yes to barbara's deal. kevin calls this the "bone in the mouth" theory. (laughs) yeah! now you're coming back and you're changing it, and i'm telling you-- but--but mark came in, and we feel that, like, both of you guys are so good. your final offer is you offering a counter-- that's not our final offer. that's our counteroffer. your counteroffer is 25%... 25%. for $300,000, split between barbara and mark, and no salary. no salary. okay. (barbara) here's the thing. what i take exception to is the deal got worse. we had a 33% deal on the table, and you came back and offered 25%. we were gonna--okay-- okay, that's a no. what do you say, mark, on the percentage? oh, absolutely not.
okay, so you have two nos on the 25%. guys, i'll make it easy. part of the drill in going through this is you guys presenting your decision-making process. right? you-- you weren't definitive, and i don't want to be in a scenario where it's wishy-washy and we're not sure, we like it, but we're not quite there. i'm out. what just happened? (kevin) you know, two lab rats left the shark tank... (barbara laughs) they came back in. they got slaughtered. i hate it when that happens. ♪ what are you going to do? all right, barbara, we accept your offer. good deal. (laughter) 'cause you're the only one left! you're the only one left! all right, baby. (kevin) ahh. all right, barbara. good deal. i really believe that you will put in the time. yes, i really will. thank you. oh, you're just sucking up now, lance. thank you very much. all right, thanks, guys. thanks for-- thanks for all-- congratulations, guys. all your help and everything. good luck. congratulations. barbara, that was really clever. thank you.
you're getting--you're getting the same salary they are. hey, i deserve it. we're so happy we're working with barbara. she said she's gonna put the time in. this partnership with barbara, it's gonna take us to a whole 'nother level we've never been able to reach before. ♪♪ >> narrator: in this episode of "american greed"... safe money specialist paul kruse promises big returns, while stealing his clients' life savings. >> he was arrogant, he was greedy, and he was evil. >> narrator: money starts flowing. >> $400,000 in, $400,000 out. >> narrator: and kruse lives large. >> he was dating an exotic dancer and actually was paying for breast augmentation out of these people's hard-earned money. >> narrator: his assistant says he makes an indecent proposal to her teenage daughter. >> "i'll buy you a bmw if you would show me your boobs." >> narrator: and she's left with only one choice. >> taking his ass out. you want