Kevin: Breaking down the business model and explaining how it's not going to work with a 7% Net Margin Lori: "This just put me to sleep!" Also Lori: "I agree with Kevin. I'm out." Despite all of the "constructive" feedback, I admire the fact these entrepreneurs took it on the chin and walked out smiling.
They didn’t… one guy looked gutted… was shaking his head as though it was a disaster… then his friend started saying how they have had lots of rejections and his partner almost rolled his eyes… that is not happy
The real problem they did not prove the franchise model yet, the valuation was for that not the $1 million corporate business. Plus they already estimate they'll need $1 million to build out a showroom pre revenue for signing on franchisees and at a 7% margin it'll take decades or many stores to make back their money. $100k revenue estimated from each location that's $7k profit; that will take 150 stores to make back that $1 million or a 150 years for 1 store.
This has been around in London for years! The place is litterally called bounce (maybe why they couldn't get the bounce name). It does really well, great atmosphere!
Mark still lost lot of money, majority of his business failed to success and only few of them survived. That's why Mark and Barbara are close friend in real life, he admits Barbara's instict is real sharp.
@@Mikael2492 with some of his recent interviews I don't think a majority of his businesses have 'failed to succeed' per say, I think he's just in it for the long haul with many of them and they haven't gotten him a positive return on his capital yet. But I could be totally wrong lol
Savvy is the nice way of putting it. He takes advantage of poor people for profit. He doesn't have much to offer besides the idiots that follow him, which is a reality whether I like it or not lol!
@@summonedfistJust like most rich people, their wealth is mostly liquid and not capital. They all have a net worth of millions or billions, but that is all in figurative wealth of what stuff *"should be worth*" and not actual cash in the bank. That's not to say they don't have tons of cash, just that their total worth is mostly speculation compared to in the moment wealth. Assets have value, but selling them takes time and a buyer may not always be there.
"If we tapped out every time someone said no to us - every bank, every investor, every accountant who said 'No' to us - we wouldn't be here." That right there is the problem.
Their mindset is correct. I was told I wouldn't make it in the industry I'm in, for example. I'm now on my third promotion. The point is that you can't let someone not believing in you, stop you. Your success is dependant on your hard work and good ideas. I personally think this IS a good idea, they just haven't made enough mistakes yet.
Why business owners want to evaluate their business on some possible hallucination that they will make millions in the future if some magical fairy provides them with magical juice. Love Kenvin for being a savage.
Just good advice! I mean they are like 2-3 years of good profit margins with 3 locations away from franchising. The only issue. Business otherwise seems pretty good. Setup cost too high also perhaps.
Yeah, it's wild to have only 1 successful location and immediately jump to franchising. If they had 5 locations in a few different cities and they were all hitting, that's more understandable. Like, anytime they go to any successful bar or restaurant are they thinking "wow, they should franchise this place!" And dumping 1 million into a "training" location is straight up insane. Yeah, come train with us, then go start your location with 1/10th the budget. Why would anyone need to franchise this place anyway, it's a bar with ping pong table in it. What are they even getting out of a franchise deal, cheap ping pong tables? That's like 200 bucks.
Website says they're closed as of October 2024. They should've used part of that million dollar showroom on marketing, although I think Shark Tank should've given them enough publicity.
This has to be one of the most insane pitches I have ever seen. I know nothing about business but it is so glaringly obvious that if one location in 3 years makes consistently $60,000-$70,000/year there is no way that you can start to franchise that. Between all the startup costs for a franchisee plus the yearly fee on top of it there is nothing left. On top of that their brand name carried no value at this time either. Anyone could just do the same thing and not have to pay all these fees to be a franchisee.
I dont think they understood what the sharks were saying. its not that they can't do it. its that its not investable because of how much they want. nice guys decent concept but valuation was a little nuts. in my unprofessional opinion of course
Ming Wong Lee up here just throwing numbers around like he's a mathmatition.... Only got one restaurant talking about he needs a training center😂😂😂its called 😂😂the kitchen😂😂
As old as they are, they seem like they’re still missing the point. They’re net profit and their evaluation of the business is completely absurd it’s not worth more than 150k in total. They’re still in a high risk area in the business until they can get beyond that their value will go up.
How is this gonna work anyway?🤔 Pool, maybe, darts, yeah sure. Like in a bar. But pingpong? If you dont know how to play it, you'll be sweating not because of playing them, but because of the constant picking up the ball on the floor, far from your table.
Kevin is obviously right that a 7% net profit is too low to begin franchising. But it would have been nice to hear what percentage the entrpreneurs, as the franchisor company, would intend to charge the franchisee as an annual franchise fee (rather than have Kevin guess it would be 5-7%). Too high and it's unappealing to the franchisee. Too low and it's unappealing to the investors in front of them (who would be investing in the franchisor company). Either way, Kevin is right. Just would have been nice to hear them give the poor numbers upon which it would be based.
So basically, they have a table tennis business and just want to open another store. Where's the uniqueness or the entrepreneurship in this "concept" ??
Kevin: Breaking down the business model and explaining how it's not going to work with a 7% Net Margin
Lori: "This just put me to sleep!"
Also Lori: "I agree with Kevin. I'm out."
Despite all of the "constructive" feedback, I admire the fact these entrepreneurs took it on the chin and walked out smiling.
They didn’t… one guy looked gutted… was shaking his head as though it was a disaster… then his friend started saying how they have had lots of rejections and his partner almost rolled his eyes… that is not happy
Jesus loves you, God Bless✝️
@@thevalkyrie8his brother
Guy in the blue starting to rethink his life
He's being dragged along by yellow shirt's delusions of grandeur.
@@terence.pereiraBlue Shirt guy is Eugene and Yellow shirt guy is Michael.
A $5 million valuation with just 1 million per year in sales and only a 7% profit margin is ridiculous!
The real problem they did not prove the franchise model yet, the valuation was for that not the $1 million corporate business. Plus they already estimate they'll need $1 million to build out a showroom pre revenue for signing on franchisees and at a 7% margin it'll take decades or many stores to make back their money. $100k revenue estimated from each location that's $7k profit; that will take 150 stores to make back that $1 million or a 150 years for 1 store.
@@shamw39Really, you sure that's right? No wonder Mr wonderful was agast.
Why u spoil the video
They need some wall nets
They should have built out 4 locations at $250,000 a piece and talked to someone before coming on.
How can you hate ping pong lmao Daymond becomes more unlikeable every episode
Because Daymond SAID, "I Hate Ping Pong"!! That Is How !! Ehhh?
Dude just hates life at this point. He needs to see someone and stop making everyone depressed on TV
He's so fake he doesn't have a personality at this point
He's never been likable.
he's very punchable
How Kevin crunches the numbers is superb. He knows the franchising model and other business spaces!
A million dollars to build out their 2nd store is ridiculous!
But it's their flagship store/ training location...😅🤣😂
TTTTTTTRRRRRRRAAAAIIINING
it's RAIN ing negative money
"We talkin about practice..!"
This has been around in London for years! The place is litterally called bounce (maybe why they couldn't get the bounce name). It does really well, great atmosphere!
Kevin is the most financially savvy shark. Mark has taken way more risks and earned more money.
Mark still lost lot of money, majority of his business failed to success and only few of them survived.
That's why Mark and Barbara are close friend in real life, he admits Barbara's instict is real sharp.
@@Mikael2492 with some of his recent interviews I don't think a majority of his businesses have 'failed to succeed' per say, I think he's just in it for the long haul with many of them and they haven't gotten him a positive return on his capital yet. But I could be totally wrong lol
Savvy is the nice way of putting it. He takes advantage of poor people for profit. He doesn't have much to offer besides the idiots that follow him, which is a reality whether I like it or not lol!
@@summonedfistJust like most rich people, their wealth is mostly liquid and not capital. They all have a net worth of millions or billions, but that is all in figurative wealth of what stuff *"should be worth*" and not actual cash in the bank. That's not to say they don't have tons of cash, just that their total worth is mostly speculation compared to in the moment wealth. Assets have value, but selling them takes time and a buyer may not always be there.
@@LunchMeatTrumpyou mean their wealth is mostly capital and not liquid
If you want to see more iconic scenes from Shark Tank US, SUBSCRIBE to our channel! 🦈
LMAO KEVIN "you're really nice guys, i hate this a lot."
"If we tapped out every time someone said no to us - every bank, every investor, every accountant who said 'No' to us - we wouldn't be here."
That right there is the problem.
Their mindset is correct. I was told I wouldn't make it in the industry I'm in, for example. I'm now on my third promotion.
The point is that you can't let someone not believing in you, stop you. Your success is dependant on your hard work and good ideas.
I personally think this IS a good idea, they just haven't made enough mistakes yet.
They were all correct in saying that they weren't ready to franchise. Their business wasn't that successful yet
Kevin is the ultimate honest savage
Kevin's business acumen is top notch
I'm starting to hate Daymond more and more
The guy in the blue shirt is like dam I put all my money in this 💩
"Okay, think about this in this way, ping pong has been around for-
Kevin : "So, how much money have you put in this thing?" 👽👽
Mark with those cat-like reflexes!
hes leo the lion
pitching ping pong to a tennis legend is a tough sell
Doper Sharapova?
@@tyrellcobb4665that ruling is stupid.
It's a glorified sports bar with ping pong table. They should just buy a bunch of Dave & Buster's
It's a bar with a ping pong table that's it. Any bar can buy a 80$ ping pong table.
500K for 10 percent ROFL like 70K profit is worth 5 mill valuation. Nutters.
I’m not an expert in any of the fields related to this episode and even I have no doubt this is way too early!
Way too early? It’s existed in a much better way than these idiots since 2010. AceBounce in Chicago, Spin elsewhere…
@@omram566 ya it’s early for this company. Just cause it worked for other places doesn’t the timing is right for them
Ha ha , he said I’m out , then they both smiled at the same time ?
Finally new episode 🎉
The 1980's called - said you're 40 years too late.
Why business owners want to evaluate their business on some possible hallucination that they will make millions in the future if some magical fairy provides them with magical juice. Love Kenvin for being a savage.
Wow wow wow, yall do a lunch upload on a Saturday? We love it here
That was such a rude comment from Daymond I've lost what little respect I had left for him. "Now I hate ping pong players"
What a entitled douche
there is a reason why they've gotten so many "no's" for an anwer
I think Daymond was buzzed at the end 😂
In front of sharks you need to be prepared to the "no´s", isn´t worth insist, it´s necessary listen and learn so get the oportunities.
why in the hell would you spend 1mio for a flagship as the second store
Doing the second location as a million dollar training facility is insane
If they had 10 stores on the west coast it might make sense to franchise. But one??
No no no no no .
Noooooo.
There its 6 times and u can't take it anymore😂😂😂😂
Just good advice! I mean they are like 2-3 years of good profit margins with 3 locations away from franchising. The only issue. Business otherwise seems pretty good. Setup cost too high also perhaps.
Yeah, it's wild to have only 1 successful location and immediately jump to franchising. If they had 5 locations in a few different cities and they were all hitting, that's more understandable.
Like, anytime they go to any successful bar or restaurant are they thinking "wow, they should franchise this place!"
And dumping 1 million into a "training" location is straight up insane. Yeah, come train with us, then go start your location with 1/10th the budget. Why would anyone need to franchise this place anyway, it's a bar with ping pong table in it. What are they even getting out of a franchise deal, cheap ping pong tables? That's like 200 bucks.
Website says they're closed as of October 2024. They should've used part of that million dollar showroom on marketing, although I think Shark Tank should've given them enough publicity.
Daymond doesn't invest in anything 99% of the time! Why is he there?
He's the Tolkien character of the Shark Tank 🦈
Diversity hired
☝️
Yep, that's why I said he's pretty much Tolkien from South Park on this show lol
ping pong isn't popular in the USA, I see ping pong tables in some locations and most of the time they are empty...so are pool tables.
What’s for breakfast today, everyone?
Ya momma
Kevin is 💯 on the number.
How the heck does a restaurant or bar with ping pong tables cost 1 million to build?
It's just a bar with ping pong tables. The liquor license I likely the most difficult thing about the operation.
This has to be one of the most insane pitches I have ever seen. I know nothing about business but it is so glaringly obvious that if one location in 3 years makes consistently $60,000-$70,000/year there is no way that you can start to franchise that. Between all the startup costs for a franchisee plus the yearly fee on top of it there is nothing left. On top of that their brand name carried no value at this time either. Anyone could just do the same thing and not have to pay all these fees to be a franchisee.
Wherever Barba is; we all already know she's out.
Kevin spot on ......
Most dopest intro😂😂
Most dopest? Spoken like a true ghetto clown 🤡
They are doomed. What keeps a smart bar or restaurant owner from putting in a couple of ping pong tables? No moat. No IP. And 7% is horrible
Ping-pong is the only sport named after it's inventor.
“Clean energy policy” does nothing but make wallets lighter for the little guy. And make the rich richer.
I dont think they understood what the sharks were saying. its not that they can't do it. its that its not investable because of how much they want. nice guys decent concept but valuation was a little nuts. in my unprofessional opinion of course
I remember those days when valuations are more reasonable...
Pip and investors made them bounce! Horrible idea! Building out the business and building is costly, and have a high risk and minimal return
Really thought Daymond was going to invest on this one
Lol
Pingtrepreuners sounds better than pongtrepreuners
They really do like a Eugene and Michael. 😅😅😅😅
Watch till the end. Or atleast scroll. Homie on the right is defeated 😂😂😂😂
This is not a shark tank idea lol
Daymond, whatever happened to you?
He’s the next Barbara
@@Retsa_awadhe’s worse
Ming Wong Lee up here just throwing numbers around like he's a mathmatition.... Only got one restaurant talking about he needs a training center😂😂😂its called 😂😂the kitchen😂😂
Damon, you’re not an investor bro
7% is not much ey? If any factors change by a few % or a location is a few % less great.
As old as they are, they seem like they’re still missing the point. They’re net profit and their evaluation of the business is completely absurd it’s not worth more than 150k in total. They’re still in a high risk area in the business until they can get beyond that their value will go up.
daymond will never make another offer. mark my words
Have they heard of Spin?
Only make $70,000 on 1 million REALLY !!!!!!!!!!!! The ship is sunk before sailing !!!!!!!!!!!
From a Shark Tank investment perspective, they are truly too early as more than one Shark stated.
Try having an original thought.
Classic Portland 😂
lol did he say “ saving the world from clean energy policy “?
That's what I heard! 😮
How is this gonna work anyway?🤔 Pool, maybe, darts, yeah sure. Like in a bar. But pingpong? If you dont know how to play it, you'll be sweating not because of playing them, but because of the constant picking up the ball on the floor, far from your table.
Why are these "too early" entrepreneurs allowed to be on shark tank???? I will never understad it!
Kevin is obviously right that a 7% net profit is too low to begin franchising. But it would have been nice to hear what percentage the entrpreneurs, as the franchisor company, would intend to charge the franchisee as an annual franchise fee (rather than have Kevin guess it would be 5-7%). Too high and it's unappealing to the franchisee. Too low and it's unappealing to the investors in front of them (who would be investing in the franchisor company). Either way, Kevin is right. Just would have been nice to hear them give the poor numbers upon which it would be based.
Is that Sharapova?
bro barbara and daimon are always out whats the difference between them? color XD
Ohh Daymond is a hater, they can hater who ever they want... but otherwise?
They wanna be the Top Golf of the Ping Pong world… except golf is infinitely more popular and sociable than ping pong.
KEVIN TRASH AND ME ULTIMATE
Their established location makes them $70,000, but they think new locations will make $100,000. Um...why?
They always want to franchise way too early. Should have 10 or 15 stores up and running before you even think about franchising
Is he Fracking …? Saving the world from clean energy.
That was a tough sell
7% profit margin is awful. There isn't enough meat on the bone.
So basically, they have a table tennis business and just want to open another store.
Where's the uniqueness or the entrepreneurship in this "concept" ??
Ouch.
Dymond really thinks he’s funny
I agree with Daymon its crap !!
"How should we make our pitch?"
"As cringe as possible"
I don’t like daymond
5 more no's? Errrr yeah i'm done!
Overconfidence and stupidity at the same time from these dudes, Kevin is do right. They will be bankrupt soon
I had to go to a company "outing" to a similar place once. Talk about boring.
7% is horrible
What a load of bollox, these two are deluded.
Delucial people.
A couple of book smart individuals with NO common sense…💯👋🏽
they think they can franchise out table tennis? that is so dumb
Another wasted pitch
What's with the venom Daymond? Maybe time to retire...
Delusional
Not scalable