1 00:00:00,734 --> 00:00:03,103 Narrator: Tonight, it's Sharkoween in the Tank, 2 00:00:03,103 --> 00:00:05,305 and scarier than ever. [ Wolf howls ] 3 00:00:05,305 --> 00:00:07,441 And Jason Blum, the King of Horror 4 00:00:07,441 --> 00:00:11,078 and the founder of game-changing production company Blumhouse, 5 00:00:11,078 --> 00:00:12,212 joins the Tank. 6 00:00:12,212 --> 00:00:13,981 I have a lot of scary experience. 7 00:00:13,981 --> 00:00:15,015 Why are you here? 8 00:00:15,015 --> 00:00:16,884 We're full-time professional weirdos. 9 00:00:16,884 --> 00:00:17,584 Yeah, baby. 10 00:00:17,584 --> 00:00:20,354 Who's ready to raise the dead with me? We are! 11 00:00:20,354 --> 00:00:22,356 In the spirit of Halloween, I came here to get a deal. 12 00:00:22,356 --> 00:00:24,291 -Are you making any money? -No. 13 00:00:24,291 --> 00:00:27,027 -You are a very brave man. -Are you getting creepy? 14 00:00:27,027 --> 00:00:29,897 [ Transylvanian accent ] Very, very scary. 15 00:00:35,269 --> 00:00:37,971 Ooh, I love how scary it is in the Tank. 16 00:00:37,971 --> 00:00:39,106 It's going to get scarier. 17 00:00:39,106 --> 00:00:41,074 -Ooh! I'm excited. -Oh, boy. 18 00:00:41,074 --> 00:00:43,710 I love it! I love it. 19 00:00:43,710 --> 00:00:45,212 ♪♪ 20 00:00:45,212 --> 00:00:47,381 Narrator: First in the Tank is an entrepreneur 21 00:00:47,381 --> 00:00:50,951 in the business of chills and thrills. 22 00:00:50,951 --> 00:00:57,157 ♪♪ 23 00:00:57,157 --> 00:00:59,259 [ Thunder cracks ] 24 00:00:59,259 --> 00:01:00,460 Hello, Sharks. 25 00:01:00,460 --> 00:01:03,964 My name is Guy Kitchell, and I'm a serial thriller 26 00:01:03,964 --> 00:01:05,432 from Madison, Wisconsin, 27 00:01:05,432 --> 00:01:08,135 and the CEO of Thrill Builders. 28 00:01:08,135 --> 00:01:09,970 [ Wolf howls ] 29 00:01:09,970 --> 00:01:12,973 I'm seeking $250,000 30 00:01:12,973 --> 00:01:15,442 for a 20% share in my company. 31 00:01:15,442 --> 00:01:17,611 Sharks, Thrill Builders has created 32 00:01:17,611 --> 00:01:20,480 some of the greatest attractions for the largest names 33 00:01:20,480 --> 00:01:24,217 in the industry -- everything from escape rooms, 34 00:01:24,217 --> 00:01:28,021 mini golf, animated props, haunted attractions, 35 00:01:28,021 --> 00:01:29,222 and special effects. 36 00:01:29,222 --> 00:01:30,390 We're the best in the biz 37 00:01:30,390 --> 00:01:34,127 when it comes to all things thrill-inducing. 38 00:01:34,127 --> 00:01:36,196 Now, I love Halloween, 39 00:01:36,196 --> 00:01:40,434 but the problem is it only happens one day a year. 40 00:01:40,434 --> 00:01:42,336 Why can't it be every day? 41 00:01:42,336 --> 00:01:44,438 Well, that's where Thrill Builders comes in. 42 00:01:44,438 --> 00:01:46,640 We're building Thrill Factory, 43 00:01:46,640 --> 00:01:50,444 a 50,000-square-foot indoor entertainment center 44 00:01:50,444 --> 00:01:53,313 for adults and kids that actually rocks. 45 00:01:53,313 --> 00:01:54,448 [ Squeaking ] 46 00:01:54,448 --> 00:01:58,986 Thrill Factory will have 12 amazing activities, 47 00:01:58,986 --> 00:02:00,320 like Wizard's Adventure, 48 00:02:00,320 --> 00:02:03,390 where kids will use real magic wands to solve puzzles 49 00:02:03,390 --> 00:02:06,994 and explore the Enchanted Forest, 50 00:02:06,994 --> 00:02:07,661 or Hyper Bowling, 51 00:02:07,661 --> 00:02:11,098 where interactive bumpers allow you to score points 52 00:02:11,098 --> 00:02:12,265 by hitting the moving targets. 53 00:02:12,265 --> 00:02:17,204 And, of course, our signature haaaaunted houses 54 00:02:17,204 --> 00:02:20,107 that let you blast animatronic monsters 55 00:02:20,107 --> 00:02:22,309 as you navigate a haunted maze. 56 00:02:22,309 --> 00:02:25,312 Our activities are a barrel of fun. 57 00:02:25,312 --> 00:02:28,415 -[ Laughs ] -Oh, wow. 58 00:02:28,415 --> 00:02:30,617 Thrill Factory will be fully immersive, 59 00:02:30,617 --> 00:02:34,154 with attention to detail and incredible theming 60 00:02:34,154 --> 00:02:36,223 like only Thrill Builders can do. 61 00:02:36,223 --> 00:02:39,292 We know what works, we know what people like, 62 00:02:39,292 --> 00:02:41,428 and we know what makes the most money. 63 00:02:41,428 --> 00:02:46,466 So, Sharks, who's ready to raise the dead with me 64 00:02:46,466 --> 00:02:50,837 and build the next big thing in family entertainment? 65 00:02:51,571 --> 00:02:54,408 Well, you other Sharks may not know this, 66 00:02:54,408 --> 00:02:58,111 but we have had a Blumhouse of Horrors, 67 00:02:58,111 --> 00:03:00,147 which is a live-event haunted house 68 00:03:00,147 --> 00:03:01,248 for many, many years. 69 00:03:01,248 --> 00:03:04,251 They're very, very hard to make money at. 70 00:03:04,251 --> 00:03:05,652 So my hat's off to you. 71 00:03:05,652 --> 00:03:09,623 I'd love to know a little bit more about your numbers 72 00:03:09,623 --> 00:03:12,225 that you achieved in the earlier haunted houses 73 00:03:12,225 --> 00:03:13,360 that you've already done. 74 00:03:13,360 --> 00:03:14,661 Yeah, so we've only done one haunted house. 75 00:03:14,661 --> 00:03:17,197 It was called Wisconsin Scary Land. 76 00:03:17,197 --> 00:03:18,432 And you're right -- 77 00:03:18,432 --> 00:03:20,300 haunted houses don't make a lot of money... 78 00:03:20,300 --> 00:03:21,334 [ Laughs ] No problem. 79 00:03:21,334 --> 00:03:22,569 ...which is why we're moving into 80 00:03:22,569 --> 00:03:25,639 family entertainment centers, which do make a ton of money. 81 00:03:25,639 --> 00:03:28,575 But our haunted house, we had 68 actors, 82 00:03:28,575 --> 00:03:30,310 so that ate up most of our budget. 83 00:03:30,310 --> 00:03:31,445 How many nights was it open? 84 00:03:31,445 --> 00:03:33,413 We were only open 11 nights, so you're right. 85 00:03:33,413 --> 00:03:36,249 You make a couple hundred thousand bucks for the season. 86 00:03:36,249 --> 00:03:37,718 And how much did you spend? About that? 87 00:03:37,718 --> 00:03:41,588 No, we probably grossed about 450 and netted under 2. 88 00:03:41,588 --> 00:03:44,324 Oh, that's -- I mean, that's impressive. Well, you netted -- 89 00:03:44,324 --> 00:03:46,426 Did better than me. My hat's off to you. 90 00:03:46,426 --> 00:03:47,561 We've owned our own haunted house. 91 00:03:47,561 --> 00:03:49,496 We've owned our own escape-room complex, 92 00:03:49,496 --> 00:03:51,331 small family-entertainment center, 93 00:03:51,331 --> 00:03:53,366 and now we're building a big-scale one, 94 00:03:53,366 --> 00:03:54,534 a 50,000-square-foot one. 95 00:03:54,534 --> 00:03:55,669 And are you buying a building, 96 00:03:55,669 --> 00:03:57,471 renting a building, leasing a building? 97 00:03:57,471 --> 00:03:59,172 How much are you gonna have to invest in total? 98 00:03:59,172 --> 00:04:00,407 'Cause that does not sound cheap. 99 00:04:00,407 --> 00:04:03,543 No, our current project is in a mall, 100 00:04:03,543 --> 00:04:07,147 and in the 50,000 square feet, 101 00:04:07,147 --> 00:04:09,449 our GC work is $1.8 million, 102 00:04:09,449 --> 00:04:11,818 and then the whole project will be $7.2 million. 103 00:04:11,818 --> 00:04:14,221 Where's that money coming from? Corcoran and Greiner: Wow. 104 00:04:14,221 --> 00:04:17,424 So we've raised $1.7 million in cash, 105 00:04:17,424 --> 00:04:21,428 and I have a loan for $5 million backed by the SBA. 106 00:04:21,428 --> 00:04:24,231 You are a very brave man. Very brave. 107 00:04:24,231 --> 00:04:25,532 Or you're nuts, one or the other. 108 00:04:25,532 --> 00:04:27,467 How much money are you expecting to make? 109 00:04:27,467 --> 00:04:31,371 We project to gross $5.5 mil the first year... 110 00:04:31,371 --> 00:04:32,539 Really? ...and ramp that up to $10 mil. 111 00:04:32,539 --> 00:04:35,342 And are you selling merchandise and food? 112 00:04:35,342 --> 00:04:36,510 And what else are you doing? 113 00:04:36,510 --> 00:04:38,311 Can I do a birthday party there? 114 00:04:38,311 --> 00:04:39,780 We have birthday parties. We have bowling. 115 00:04:39,780 --> 00:04:42,215 Hyper bowling is new. It's for little kids. 116 00:04:42,215 --> 00:04:43,416 It's got 200 different games 117 00:04:43,416 --> 00:04:45,152 that you can play with the bumpers. 118 00:04:45,152 --> 00:04:46,319 What's your ticket price? 119 00:04:46,319 --> 00:04:48,355 There's no ticket price to get in. No? 120 00:04:48,355 --> 00:04:49,456 It's just per-attraction. 121 00:04:49,456 --> 00:04:51,758 Let me get this deal -- $250,000 for 20%. 122 00:04:51,758 --> 00:04:54,327 Am I getting a piece of your existing business 123 00:04:54,327 --> 00:04:56,163 selling scary stuff to other guys, 124 00:04:56,163 --> 00:04:57,664 or just this facility? 125 00:04:57,664 --> 00:04:59,566 This is a real-estate play in some ways. 126 00:04:59,566 --> 00:05:01,501 I'm open to either. So our existing business, 127 00:05:01,501 --> 00:05:05,338 Thrill Builders, will do $4.2 million this year in sales. Yeah. 128 00:05:05,338 --> 00:05:08,475 We did 3.2 last year, and we've done 129 00:05:08,475 --> 00:05:10,510 in the last six years $12.2 million. 130 00:05:10,510 --> 00:05:13,413 And it's profitable, too. What did you make last year? 131 00:05:13,413 --> 00:05:15,816 Last year, we made $975,000 profit. 132 00:05:15,816 --> 00:05:18,585 Blum: And do you own 100% of your business now? 133 00:05:18,585 --> 00:05:22,322 No, I've sold 17% to get the $1.7 million. Got it. 134 00:05:22,322 --> 00:05:25,325 Guy, let me just clear the deck a little. 135 00:05:25,325 --> 00:05:26,459 I'm going to go out, 136 00:05:26,459 --> 00:05:27,627 and it's not that I don't believe in you. 137 00:05:27,627 --> 00:05:29,362 And I imagine you'll do very well. 138 00:05:29,362 --> 00:05:31,398 And there are good numbers associated with it, 139 00:05:31,398 --> 00:05:32,699 but it would scare the heck out of me. 140 00:05:32,699 --> 00:05:36,136 I don't know a thing about it. So for that reason, I'm out. 141 00:05:36,136 --> 00:05:37,337 All right, thank you. 142 00:05:37,337 --> 00:05:40,640 Well, I'm happy to say, if it sweetens the pot, 143 00:05:40,640 --> 00:05:43,443 I'm happy to have all of your investment 144 00:05:43,443 --> 00:05:44,711 secured by Thrill Builders, 145 00:05:44,711 --> 00:05:46,546 and I understand you're taking a risk. 146 00:05:46,546 --> 00:05:47,647 O'Leary: Well, I think I would need that. 147 00:05:47,647 --> 00:05:48,748 I mean, I'm intrigued. I have nothing like this 148 00:05:48,748 --> 00:05:50,650 in my portfolio. I love real estate. 149 00:05:50,650 --> 00:05:52,786 It's funny -- I actually like the business 150 00:05:52,786 --> 00:05:55,822 that he had before the event. Right. 151 00:05:55,822 --> 00:05:58,892 Seems to me like you're biting off way more than you can chew, 152 00:05:58,892 --> 00:06:01,728 but I don't have any real-estate experience. 153 00:06:01,728 --> 00:06:03,763 I have a lot of scary experience, 154 00:06:03,763 --> 00:06:06,766 so if there was some way to get ownership 155 00:06:06,766 --> 00:06:08,868 of your core business, that's actually 156 00:06:08,868 --> 00:06:10,637 very interesting to me. Well, he's willing to guarantee. 157 00:06:10,637 --> 00:06:12,839 But I want a piece of the whole thing. 158 00:06:12,839 --> 00:06:16,676 Well, I love it. I do. I love it. I can see it. 159 00:06:16,676 --> 00:06:19,613 I think you need to make this for kids and adults. 160 00:06:19,613 --> 00:06:20,714 There's something for everyone, right? 161 00:06:20,714 --> 00:06:22,582 All right, Guy, listen. I -- no. Stop. Wait. 162 00:06:22,582 --> 00:06:24,517 I'm gonna make an offer. I'm gonna make an offer. Whoa! Whoa! 163 00:06:24,517 --> 00:06:26,553 I'm gonna make an offer. Whoa, Nelly! 164 00:06:26,553 --> 00:06:30,190 ♪♪ 165 00:06:34,728 --> 00:06:37,731 Narrator: One Shark is out, but Kevin, Lori, and Jason 166 00:06:37,731 --> 00:06:40,600 seem interested in Guy's scary entertainment company, 167 00:06:40,600 --> 00:06:41,835 Thrill Builders. 168 00:06:41,835 --> 00:06:44,337 O'Leary: I think it's an interesting play on real estate. 169 00:06:44,337 --> 00:06:47,407 I'll do the $250,000 for 25%. 170 00:06:47,407 --> 00:06:48,575 I'm willing to do the whole thing myself 171 00:06:48,575 --> 00:06:49,743 or split it with anybody who wants to split. 172 00:06:49,743 --> 00:06:51,745 I do want to do a deal with you... 173 00:06:51,745 --> 00:06:53,446 But it's the whole business. ...because I love it. 174 00:06:53,446 --> 00:06:54,648 Yeah, the whole business. 175 00:06:54,648 --> 00:06:57,651 I would like to do the $250,000. 176 00:06:57,651 --> 00:07:00,654 I would do it for 25%. 177 00:07:00,654 --> 00:07:02,922 How about three Sharks? 178 00:07:02,922 --> 00:07:06,760 Between me and Blumhouse, we have 3 million followers. 179 00:07:06,760 --> 00:07:10,430 And on getting people who love scary stuff to your events, 180 00:07:10,430 --> 00:07:11,798 we're pretty good at that. 181 00:07:11,798 --> 00:07:13,533 -Well... -I mean, you can't go wrong. 182 00:07:13,533 --> 00:07:14,701 ...each with a different specialty 183 00:07:14,701 --> 00:07:15,735 You've got -- between the three of us, 184 00:07:15,735 --> 00:07:16,770 you've got everything covered here. 185 00:07:16,770 --> 00:07:20,874 And you're raising from 20% to 25%? 186 00:07:20,874 --> 00:07:24,311 Well, if it's three Sharks, you gotta give us 30 187 00:07:24,311 --> 00:07:26,913 so it's 10 each. 188 00:07:26,913 --> 00:07:30,583 Could you work out a line of credit for our next opening? 189 00:07:30,583 --> 00:07:33,286 Well, I'm interested in going to finance this. 190 00:07:33,286 --> 00:07:34,754 If these numbers are real, 191 00:07:34,754 --> 00:07:38,658 you're gonna come with me to some foreign countries. 192 00:07:38,658 --> 00:07:40,627 I've always wanted to go to Dubai, so... 193 00:07:40,627 --> 00:07:43,563 No, because that's what I do. That's why I'm interested. 194 00:07:43,563 --> 00:07:44,831 Guy, your numbers don't add up, then, 195 00:07:44,831 --> 00:07:47,734 because you said you made $970,000 196 00:07:47,734 --> 00:07:49,569 from Thrill Builders, right? 197 00:07:49,569 --> 00:07:51,571 That's in one year? Or is that lifetime? 198 00:07:51,571 --> 00:07:54,674 No, that was our net off of $3.2 mil. 199 00:07:54,674 --> 00:07:55,809 -Last year, right? -Yeah. 200 00:07:55,809 --> 00:07:58,812 So let's just make it $1 million to simplify it. 201 00:07:58,812 --> 00:08:03,583 So for $250,000 for 30%, you're gonna write them a check 202 00:08:03,583 --> 00:08:05,418 at the end of the year for $300,000 203 00:08:05,418 --> 00:08:06,886 for giving you $250,000. 204 00:08:06,886 --> 00:08:09,556 I know I'm undervaluing the company, 205 00:08:09,556 --> 00:08:11,858 but it's very important to me that I get a deal. 206 00:08:11,858 --> 00:08:14,694 Guy, why is it so important you get a deal from a Shark? 207 00:08:14,694 --> 00:08:16,863 I don't get that at these terms. I don't understand. 208 00:08:16,863 --> 00:08:19,332 Well, it's not the money for this one. 209 00:08:19,332 --> 00:08:20,000 It's for expansion. 210 00:08:20,000 --> 00:08:22,002 I want to build nine of these in the next five years. 211 00:08:22,002 --> 00:08:24,571 That's the part I like. So if you had this one -- 212 00:08:24,571 --> 00:08:25,739 Right. You guys, why are you such naysayers? 213 00:08:25,739 --> 00:08:27,006 You're throwing away your business, Guy. 214 00:08:27,006 --> 00:08:29,809 Do the math. All right, I'm restating the deal here... 215 00:08:29,809 --> 00:08:31,778 Blum: They're trying to unsell our deal here. 216 00:08:31,778 --> 00:08:33,913 I'm not trying to go in. I'm trying to help the guy. 217 00:08:33,913 --> 00:08:36,750 Greiner: Okay, so it's the three of us. 218 00:08:36,750 --> 00:08:41,921 It's $250,000, 30% for the entire business. 219 00:08:41,921 --> 00:08:44,758 And we'll be in it to win it with you together. 220 00:08:44,758 --> 00:08:46,926 What do you think? This is so exciting. I'm interested. 221 00:08:46,926 --> 00:08:50,697 All right, so you want to raise it to 30%, 10% each. 222 00:08:50,697 --> 00:08:52,532 Will you go to $300,000 then? 223 00:08:52,532 --> 00:08:53,800 -I'd do that. -I would do that. 224 00:08:53,800 --> 00:08:56,403 -I would do that. -All right. Let's make a deal. 225 00:08:56,403 --> 00:08:58,805 Whoo! Okay. Yay! 226 00:08:58,805 --> 00:08:59,906 I'm so excited. I love this! 227 00:08:59,906 --> 00:09:02,075 -Oh, we're gonna hug. -Yes! I'm thrilled. 228 00:09:02,075 --> 00:09:03,877 -I'm gonna give you a hug, too. -All right. Thank you. 229 00:09:03,877 --> 00:09:06,813 -Great job, great job. -I think it's so smart. 230 00:09:06,813 --> 00:09:11,017 He just gave away 30% of his company for nothing. 231 00:09:11,017 --> 00:09:13,853 Remember the watermelon? The watermelon and the grape? 232 00:09:13,853 --> 00:09:15,722 -Exactly, Mark. -That's right. 233 00:09:15,722 --> 00:09:16,756 But the watermelon and the grape -- 234 00:09:16,756 --> 00:09:18,491 You know what? Mark always does this 235 00:09:18,491 --> 00:09:19,893 when he doesn't get a deal... 236 00:09:19,893 --> 00:09:21,728 -'Cause I didn't get the deal? -He's upset. 237 00:09:21,728 --> 00:09:23,630 -Yes! Jelly. -No, I'm not upset. 238 00:09:23,630 --> 00:09:26,566 This is Mark waiting for a deal. 239 00:09:26,566 --> 00:09:27,767 Thank you, everybody. 240 00:09:27,767 --> 00:09:29,769 Do I want to give up 30%? 241 00:09:29,769 --> 00:09:33,039 No, but I see the bigger picture of Thrill Factory. 242 00:09:33,039 --> 00:09:35,775 Rather than capping out our current business 243 00:09:35,775 --> 00:09:37,076 at $5 or $6 million a year, 244 00:09:37,076 --> 00:09:40,013 we're gonna be doing over $100 million a year. 245 00:09:40,013 --> 00:09:42,115 And I'd much rather have those Sharks on board 246 00:09:42,115 --> 00:09:44,884 and give up a portion to them to make that happen. 247 00:09:44,884 --> 00:09:47,620 [ Transylvanian accent ] Very, very scary. 248 00:09:47,620 --> 00:09:49,389 Yes, for him. 249 00:09:50,723 --> 00:09:53,026 I was born in Los Angeles in 1969. 250 00:09:53,026 --> 00:09:55,795 My mother is a retired professor of art history. 251 00:09:55,795 --> 00:09:57,964 My father started an art gallery. 252 00:09:57,964 --> 00:10:00,800 My father took risks by buying paintings from artists 253 00:10:00,800 --> 00:10:02,669 that no one heard of and no one liked. 254 00:10:02,669 --> 00:10:05,605 I watched my dad take risks as an entrepreneur, 255 00:10:05,605 --> 00:10:06,706 which paid off for him, 256 00:10:06,706 --> 00:10:09,809 and it deeply affected my professional path. 257 00:10:09,809 --> 00:10:11,578 My first job out of school, 258 00:10:11,578 --> 00:10:13,746 I sold cable television door to door. 259 00:10:13,746 --> 00:10:15,048 Turned out I was a very good salesman. 260 00:10:15,048 --> 00:10:18,051 And in a way, what I still do is primarily sales. 261 00:10:18,051 --> 00:10:21,688 My second job -- by day I was a real-estate agent, 262 00:10:21,688 --> 00:10:22,956 and at night I was producing theater. 263 00:10:22,956 --> 00:10:24,991 I got together with a group called Malaparte, 264 00:10:24,991 --> 00:10:27,727 run by Ethan Hawke, and I had this amazing group 265 00:10:27,727 --> 00:10:29,829 of colleagues at a very young age. 266 00:10:29,829 --> 00:10:31,097 My first official job in entertainment 267 00:10:31,097 --> 00:10:33,700 was working as vice president of acquisitions 268 00:10:33,700 --> 00:10:34,801 for Arrow Entertainment. 269 00:10:34,801 --> 00:10:37,570 In 1996, I went to the big leagues, 270 00:10:37,570 --> 00:10:38,571 which is Miramax. 271 00:10:38,571 --> 00:10:39,906 When I got to my late 20s, 272 00:10:39,906 --> 00:10:42,075 I started my own company, but after two and a half years, 273 00:10:42,075 --> 00:10:44,010 that company completely went down the tubes. 274 00:10:44,010 --> 00:10:45,845 I almost went to go work for somebody else. 275 00:10:45,845 --> 00:10:46,913 But something in me says, 276 00:10:46,913 --> 00:10:48,548 "You have to do this on your own," 277 00:10:48,548 --> 00:10:49,782 and out of the sky, 278 00:10:49,782 --> 00:10:51,784 I got a first-look deal at Paramount. 279 00:10:51,784 --> 00:10:53,887 I got money to keep my company running, 280 00:10:53,887 --> 00:10:57,023 and that was really the beginning of Blumhouse. 281 00:10:57,023 --> 00:10:59,659 "Paranormal Activity" was the movie that changed my life. 282 00:10:59,659 --> 00:11:01,694 Every studio had passed on the movie, 283 00:11:01,694 --> 00:11:02,929 and I called the filmmaker, and I said, 284 00:11:02,929 --> 00:11:05,064 "Let me try and get this movie into movie theaters. 285 00:11:05,064 --> 00:11:09,035 And if you make anything over $500,000, I want X percent." 286 00:11:09,035 --> 00:11:10,770 The budget of "Paranormal Activity" 287 00:11:10,770 --> 00:11:11,971 was $15,000, 288 00:11:11,971 --> 00:11:15,508 and the movie wound up grossing $193 million. 289 00:11:15,508 --> 00:11:16,109 We made six 290 00:11:16,109 --> 00:11:17,944 "Paranormal Activity" movies after that. 291 00:11:17,944 --> 00:11:20,680 The total worldwide gross of all seven movies 292 00:11:20,680 --> 00:11:22,015 is approaching $1 billion. 293 00:11:22,015 --> 00:11:24,184 What "Paranormal Activity" did for me was teach me 294 00:11:24,184 --> 00:11:26,853 that there was a way to make independent movies 295 00:11:26,853 --> 00:11:28,988 that could be incredibly lucrative, 296 00:11:28,988 --> 00:11:30,757 and the way we do that is we make 297 00:11:30,757 --> 00:11:32,125 very, very low-budgeted movies, 298 00:11:32,125 --> 00:11:34,794 and we own a big piece of the revenue 299 00:11:34,794 --> 00:11:36,129 because we've worked for nothing up front. 300 00:11:36,129 --> 00:11:39,032 We and the director and the actors don't get paid up front. 301 00:11:39,032 --> 00:11:41,134 If the movies work, everyone does very, very well, 302 00:11:41,134 --> 00:11:42,969 and if they don't, no one gets too hurt 303 00:11:42,969 --> 00:11:44,037 because the movies didn't cost 304 00:11:44,037 --> 00:11:45,638 very much money in the first place. 305 00:11:45,638 --> 00:11:46,739 It was a new model. 306 00:11:46,739 --> 00:11:48,942 It was a different approach to making movies. 307 00:11:48,942 --> 00:11:50,143 One of the proudest moments I had 308 00:11:50,143 --> 00:11:53,746 was when Harvard asked to do a case study on Blumhouse. 309 00:11:53,746 --> 00:11:54,948 When we did that case study, 310 00:11:54,948 --> 00:11:57,750 we had 13 of the top 25 311 00:11:57,750 --> 00:11:59,986 most profitable movies ever made. 312 00:11:59,986 --> 00:12:02,021 Can we get like 10% out of the budget? 313 00:12:02,021 --> 00:12:03,957 Blumhouse is a multimedia company. 314 00:12:03,957 --> 00:12:06,059 We do massive horror franchises -- 315 00:12:06,059 --> 00:12:08,761 "The Exorcist," "Halloween," "M3GAN." 316 00:12:08,761 --> 00:12:11,331 We've been able to reach outside of horror -- 317 00:12:11,331 --> 00:12:14,067 "Whiplash," for which we were nominated for an Academy Award. 318 00:12:14,067 --> 00:12:15,835 We were nominated for Best Picture 319 00:12:15,835 --> 00:12:16,936 for "BlacKkKlansman," 320 00:12:16,936 --> 00:12:19,606 the ultimate horror movie, "Get Out." 321 00:12:19,606 --> 00:12:20,807 I'm always afraid of failure, 322 00:12:20,807 --> 00:12:23,610 but you can't be an entrepreneur and not fail. 323 00:12:23,610 --> 00:12:24,677 No, we need it sooner than that. 324 00:12:24,677 --> 00:12:25,878 It's got to be ready by Halloween. 325 00:12:25,878 --> 00:12:27,981 I've been a fan of "Shark Tank" for a long time. 326 00:12:27,981 --> 00:12:29,082 It's an incredibly important show 327 00:12:29,082 --> 00:12:31,150 because I think people almost watch "Shark Tank" 328 00:12:31,150 --> 00:12:33,219 in the same way they watch the Academy Awards. 329 00:12:33,219 --> 00:12:35,788 Someone always says, "I remember when I was little 330 00:12:35,788 --> 00:12:37,023 and I watched the Academy Awards, I thought, 331 00:12:37,023 --> 00:12:40,059 someday I'll make it to this stage." 332 00:12:40,059 --> 00:12:42,996 And I think "Shark Tank" is a very similar thing. 333 00:12:42,996 --> 00:12:45,798 It gives people hope that, like, "Hey, if they did it, 334 00:12:45,798 --> 00:12:47,467 I can do it, too." 335 00:12:47,467 --> 00:12:51,437 ♪♪ 336 00:12:56,809 --> 00:12:58,745 ♪♪ 337 00:12:58,745 --> 00:13:01,681 [ Evil laughing ] 338 00:13:01,681 --> 00:13:03,850 [ Creaking ] 339 00:13:03,850 --> 00:13:05,818 Narrator: Next up is a healthier version 340 00:13:05,818 --> 00:13:08,221 of a sweet-and-spicy Mexican treat. 341 00:13:08,221 --> 00:13:11,724 [ Playing mariachi "Shark Tank" music ] 342 00:13:11,724 --> 00:13:17,897 ♪♪ 343 00:13:17,897 --> 00:13:24,070 ♪♪ 344 00:13:24,070 --> 00:13:26,706 Sounds cool with a band, doesn't it? 345 00:13:26,706 --> 00:13:29,208 ♪♪ 346 00:13:29,208 --> 00:13:31,778 Hola, Sharks. My name is Annie Leal, 347 00:13:31,778 --> 00:13:33,813 and I am from Monterrey, Mexico, 348 00:13:33,813 --> 00:13:36,249 and today I am seeking $300,000 349 00:13:36,249 --> 00:13:39,819 in exchange for a 5% equity stake in my company, 350 00:13:39,819 --> 00:13:40,953 I Love Chamoy. 351 00:13:40,953 --> 00:13:43,256 Sharks, when I think of Halloween candy, 352 00:13:43,256 --> 00:13:46,926 I don't think of chocolates, caramels, or licorice. 353 00:13:46,926 --> 00:13:50,163 No, that's boring. I think of Mexican candy. 354 00:13:50,163 --> 00:13:53,166 And it's not just me. Consumers of all backgrounds 355 00:13:53,166 --> 00:13:56,903 can't get enough of its sweet, spicy, and tangy flavors, 356 00:13:56,903 --> 00:13:59,205 and no other product encompasses the flavors 357 00:13:59,205 --> 00:14:02,675 and versatility of Mexican candy like Chamoy. 358 00:14:02,675 --> 00:14:05,678 [ Plays up-tempo song ] 359 00:14:05,678 --> 00:14:06,312 [ Chuckles ] 360 00:14:06,312 --> 00:14:08,948 Chamoy is a traditional Mexican candy sauce 361 00:14:08,948 --> 00:14:11,084 that is enjoyed over fruits, vegetables, 362 00:14:11,084 --> 00:14:14,754 drinks, popcorns, chips, and even by itself. 363 00:14:14,754 --> 00:14:17,724 I Love Chamoy is sugar-free... 364 00:14:17,724 --> 00:14:19,826 carb-free... 365 00:14:19,826 --> 00:14:22,829 and calorie-free. 366 00:14:22,829 --> 00:14:24,163 Soon after we moved to America, 367 00:14:24,163 --> 00:14:26,132 my dad was diagnosed with diabetes 368 00:14:26,132 --> 00:14:30,036 and could no longer enjoy the sugary staple we grew up loving. 369 00:14:30,036 --> 00:14:31,304 Seeing him struggle to find something 370 00:14:31,304 --> 00:14:34,273 that reminded him of home that he could still enjoy 371 00:14:34,273 --> 00:14:37,009 inspired me to create what was missing in the market. 372 00:14:37,009 --> 00:14:39,212 I Love Chamoy is a love letter to my dad, 373 00:14:39,212 --> 00:14:41,214 my culture, and my community. 374 00:14:41,214 --> 00:14:44,183 So, Sharks, who wants to join I Love Chamoy 375 00:14:44,183 --> 00:14:47,120 and make Mexican candy accessible to all? 376 00:14:47,120 --> 00:14:49,055 Sharks, give it up to my wonderful mariachi. 377 00:14:49,055 --> 00:14:50,790 -Whoo! Whoo! -Wonderful. 378 00:14:50,790 --> 00:14:53,092 -Whoo-hoo! -Thank you, guys. 379 00:14:53,092 --> 00:14:57,930 [ Playing mariachi "Shark Tank" music ] 380 00:14:57,930 --> 00:15:00,199 Sounds good. 381 00:15:00,199 --> 00:15:01,834 So, Sharks, in front of you, 382 00:15:01,834 --> 00:15:03,903 you have three of the most popular ways 383 00:15:03,903 --> 00:15:06,172 that our customers love to eat I Love Chamoy. 384 00:15:06,172 --> 00:15:08,207 You have a fruta cup and chamoy. 385 00:15:08,207 --> 00:15:11,210 You also have a mangonada, which is a nondairy 386 00:15:11,210 --> 00:15:13,813 ice cream smoothie with mango, lime, 387 00:15:13,813 --> 00:15:15,181 and, of course, I Love Chamoy. 388 00:15:15,181 --> 00:15:18,050 And then you have a margarita rimmed with I Love Chamoy. 389 00:15:18,050 --> 00:15:20,253 So these are sweetened by monk fruit? 390 00:15:20,253 --> 00:15:22,054 Correct. It's sweetened with pure monk fruit. 391 00:15:22,054 --> 00:15:24,257 It's an all-natural sweetener, sugar-free, 392 00:15:24,257 --> 00:15:26,159 carb-free, and calorie-free. 393 00:15:26,159 --> 00:15:27,827 And it complements the Chamoy quite well. 394 00:15:27,827 --> 00:15:29,262 -Excellent. -Interesting. 395 00:15:29,262 --> 00:15:31,430 And sugar-free products are really popular... Ooh, that is good. 396 00:15:31,430 --> 00:15:34,834 ...but when it came to the Mexican candy category, 397 00:15:34,834 --> 00:15:35,902 there was nothing like this. 398 00:15:35,902 --> 00:15:37,069 So why are you calling it a candy? 399 00:15:37,069 --> 00:15:39,238 It's really a condiment or a sauce. 400 00:15:39,238 --> 00:15:41,908 I grew up with it being a Mexican candy sauce. 401 00:15:41,908 --> 00:15:44,043 We also have an additional product line 402 00:15:44,043 --> 00:15:46,078 that I haven't showed you guys yet. 403 00:15:46,078 --> 00:15:47,914 And in order to show you that, I'm gonna need 404 00:15:47,914 --> 00:15:50,082 the help of Mr. Jason. 405 00:15:50,082 --> 00:15:51,217 Can I borrow you for a little bit? 406 00:15:51,217 --> 00:15:53,019 -Go ahead, Mr. Jason. -Beautiful. 407 00:15:53,019 --> 00:15:54,153 So you're gonna stand right here. 408 00:15:54,153 --> 00:15:56,956 Okay. So, guys, in Mexican culture, 409 00:15:56,956 --> 00:15:58,491 the way we like to break piñatas 410 00:15:58,491 --> 00:16:01,227 is we usually fill them with something really special, 411 00:16:01,227 --> 00:16:03,162 and then you can go to town with -- Okay. Great. 412 00:16:03,162 --> 00:16:06,866 Okay. So I'm gonna get your weapon of choice. 413 00:16:06,866 --> 00:16:08,234 Go with the baseball bat. 414 00:16:08,234 --> 00:16:10,069 Sharks, usually when we break piñatas, 415 00:16:10,069 --> 00:16:12,271 we count from one to five in Spanish. 416 00:16:12,271 --> 00:16:13,940 Do you guys want to help me out? 417 00:16:13,940 --> 00:16:14,941 -Okay. -Yeah. 418 00:16:14,941 --> 00:16:16,742 All: Uno! 419 00:16:16,742 --> 00:16:18,778 Oh! Dos! Dos! 420 00:16:18,778 --> 00:16:21,080 All: Dos! 421 00:16:21,080 --> 00:16:23,249 Tres! 422 00:16:23,249 --> 00:16:25,051 -There we go! -Whoo! 423 00:16:25,051 --> 00:16:26,986 -You took some candy. -It's open. 424 00:16:26,986 --> 00:16:28,354 Didn't that feel good? 425 00:16:28,354 --> 00:16:30,056 I mean, this is part of the celebration. 426 00:16:30,056 --> 00:16:32,291 There we go! What a mess. 427 00:16:32,291 --> 00:16:34,327 -This is our new candy category. -Oh! 428 00:16:34,327 --> 00:16:36,929 So it's Mexican candy, but it's sugar-free 429 00:16:36,929 --> 00:16:38,531 chili-watermelon flavor. 430 00:16:38,531 --> 00:16:41,500 This is a new product line that we soft-launched 431 00:16:41,500 --> 00:16:44,036 a few months ago, and it was a great success. 432 00:16:44,036 --> 00:16:46,072 -Chamoy gummies? -Chamoy gummies. 433 00:16:46,072 --> 00:16:47,373 -Let me try one. Ready? -Absolutely. 434 00:16:47,373 --> 00:16:49,842 It's spicy, it's sweet, it's tangy. 435 00:16:49,842 --> 00:16:51,277 Ay, Chihuahua, caramba! 436 00:16:51,277 --> 00:16:52,512 -There we go. -Mmm! 437 00:16:52,512 --> 00:16:55,314 -Oh, it's got a kick to it. -And where were you selling it? 438 00:16:55,314 --> 00:16:57,116 We're selling it direct to consumer 439 00:16:57,116 --> 00:16:59,151 completely through our website. 440 00:16:59,151 --> 00:17:00,920 And in our first full year in business, 441 00:17:00,920 --> 00:17:02,355 which was last year, 2022, 442 00:17:02,355 --> 00:17:05,424 we closed the year in $550,000 in sales. Wow. 443 00:17:05,424 --> 00:17:08,294 Year-to-date, we've done $1.3 million. 444 00:17:08,294 --> 00:17:10,029 -Wow. -Good for you. Well done. 445 00:17:10,029 --> 00:17:11,130 And we're projected to close the year 446 00:17:11,130 --> 00:17:12,265 between $3.8 and $4 million. 447 00:17:12,265 --> 00:17:13,432 -Oh, my God! -Dang! 448 00:17:13,432 --> 00:17:15,167 -Wow. And what is your -- -Wow! 449 00:17:15,167 --> 00:17:17,203 Now, wait, is that the -- That's not even the candy. 450 00:17:17,203 --> 00:17:19,205 You didn't even launch that. That's just these. 451 00:17:19,205 --> 00:17:21,173 The candy is only $30,000 because we soft-launched it. 452 00:17:21,173 --> 00:17:23,075 It's all coming from the pink bottle. 453 00:17:23,075 --> 00:17:24,810 How did you build that customer? 454 00:17:24,810 --> 00:17:25,411 That's a huge jump. 455 00:17:25,411 --> 00:17:27,146 Are you spending a lot on advertising to do it? 456 00:17:27,146 --> 00:17:30,283 No, we've -- 80%, 90% of our sales 457 00:17:30,283 --> 00:17:31,517 are completely organic. 458 00:17:31,517 --> 00:17:35,087 It's been entirely online through social media. Really? 459 00:17:35,087 --> 00:17:36,689 And I started posting about my inspiration, 460 00:17:36,689 --> 00:17:39,458 the fact that I wanted to find something healthier for my dad 461 00:17:39,458 --> 00:17:41,327 and there wasn't anything like that available. 462 00:17:41,327 --> 00:17:42,662 How many followers do you have? 463 00:17:42,662 --> 00:17:45,264 Half a million followers across different social channels. 464 00:17:45,264 --> 00:17:47,500 We're in around 250 grocery stores in Texas. 465 00:17:47,500 --> 00:17:50,303 We're proudly made in Texas. We're in H-E-Bs. 466 00:17:50,303 --> 00:17:53,039 We're also in a nationwide retailer 467 00:17:53,039 --> 00:17:54,440 that specializes in home goods. 468 00:17:54,440 --> 00:17:56,242 Is it just you, Annie, or do you have a team? 469 00:17:56,242 --> 00:17:57,610 It's just me. I talk in "we" a lot. 470 00:17:57,610 --> 00:18:00,112 You're doing all of this yourself?! Correct. Yes. 471 00:18:00,112 --> 00:18:01,314 So, Annie, walk us through the numbers. 472 00:18:01,314 --> 00:18:04,150 How much does it cost to make? What do you sell it for? Yes. 473 00:18:04,150 --> 00:18:06,085 What's the wholesale price to retail? 474 00:18:06,085 --> 00:18:09,088 So we make it between $1.60 and $2. 475 00:18:09,088 --> 00:18:10,990 And we sell it direct to consumer 476 00:18:10,990 --> 00:18:12,358 for $12 on our website. 477 00:18:12,358 --> 00:18:15,528 We sell it to retailers between $3.90 and $4, 478 00:18:15,528 --> 00:18:18,331 and they sell it to their customers between $6 to $7. 479 00:18:18,331 --> 00:18:20,266 So being direct to consumer, 480 00:18:20,266 --> 00:18:22,335 putting profits before anything else, 481 00:18:22,335 --> 00:18:25,171 making sure we have cash flow -- all of that has made 482 00:18:25,171 --> 00:18:26,339 such an incredible difference in my business. 483 00:18:26,339 --> 00:18:28,541 You have no debt right now? Any debt? No debt. 484 00:18:28,541 --> 00:18:31,344 Annie, you've got to be making just a boatload of money. 485 00:18:31,344 --> 00:18:36,148 Our profits for this year is projected to be 1.5. 486 00:18:36,148 --> 00:18:37,183 -Good for you. -Thank you. 487 00:18:37,183 --> 00:18:39,318 Are you trying to get it outside 488 00:18:39,318 --> 00:18:41,420 of the Mexican community? Absolutely. 489 00:18:41,420 --> 00:18:43,389 So our customer base is not just exclusive 490 00:18:43,389 --> 00:18:45,324 to Hispanics or Latinos. 491 00:18:45,324 --> 00:18:48,160 I want to have a bigger footprint in retail. 492 00:18:48,160 --> 00:18:49,462 No matter how we expand on retail, 493 00:18:49,462 --> 00:18:52,098 I never plan on dropping the ball 494 00:18:52,098 --> 00:18:53,199 on the social-media aspect. 495 00:18:53,199 --> 00:18:54,300 Corcoran: Annie, I think you're underestimating 496 00:18:54,300 --> 00:18:57,136 your insurmountable charm and salesmanship 497 00:18:57,136 --> 00:18:58,371 that you're doing on social media. 498 00:18:58,371 --> 00:19:00,439 None of that applies to retail. 499 00:19:00,439 --> 00:19:03,109 So if you're in for the retail ride, 500 00:19:03,109 --> 00:19:05,177 I'm not with you, so I'm out. 501 00:19:05,177 --> 00:19:06,345 Thank you, Barbara. 502 00:19:06,345 --> 00:19:07,480 O'Leary: Well, listen, I've heard enough, Annie. 503 00:19:07,480 --> 00:19:09,148 I'm gonna make you an offer. 504 00:19:09,148 --> 00:19:12,351 I'll give you the $300,000 for 15%. 505 00:19:12,351 --> 00:19:14,420 Thank you so much for your offer. 506 00:19:14,420 --> 00:19:17,189 Annie, I don't want to take a chunk of your business. 507 00:19:17,189 --> 00:19:18,591 I think you can do this. 508 00:19:18,591 --> 00:19:21,327 I'll be a consumer but not a partner. 509 00:19:21,327 --> 00:19:22,361 -Thank you so much, Lori. -I'm out. 510 00:19:22,361 --> 00:19:23,629 Really appreciate it. 511 00:19:23,629 --> 00:19:26,232 Well, I too -- I'm a fan of your product. 512 00:19:26,232 --> 00:19:30,169 But what I am particularly impressed by 513 00:19:30,169 --> 00:19:32,505 is your way to talk about your business. 514 00:19:32,505 --> 00:19:34,440 You're really doing everything right. 515 00:19:34,440 --> 00:19:36,442 I would only be money to you. 516 00:19:36,442 --> 00:19:39,378 This is so far afield from anything 517 00:19:39,378 --> 00:19:40,546 I really have any experience in, 518 00:19:40,546 --> 00:19:42,648 so I couldn't lend that much expertise to you. 519 00:19:42,648 --> 00:19:47,286 So I'm out, but I hope you make a deal with another Shark. 520 00:19:47,286 --> 00:19:48,387 Thank you so much. 521 00:19:48,387 --> 00:19:50,423 Annie, you've earned that spot right there. 522 00:19:50,423 --> 00:19:52,224 I mean, you're doing everything right. 523 00:19:52,224 --> 00:19:54,326 You've gone to social. You didn't just do it 524 00:19:54,326 --> 00:19:56,595 like a traditional consumer food product. 525 00:19:56,595 --> 00:20:00,466 Everything's perfect, except it's not my taste. 526 00:20:00,466 --> 00:20:03,369 I just couldn't be out there saying it's a great product, 527 00:20:03,369 --> 00:20:05,337 but it's not great for me. 528 00:20:05,337 --> 00:20:07,873 So, unfortunately, for those reasons, I'm out. 529 00:20:09,442 --> 00:20:11,177 Well, all Sharks are out, 530 00:20:11,177 --> 00:20:14,080 and all chamoy leads to Mr. Wonderful. 531 00:20:14,080 --> 00:20:16,315 [ Thunder rumbles ] 532 00:20:16,315 --> 00:20:18,951 What do you want to do, Annie? 533 00:20:18,951 --> 00:20:24,857 ♪♪ 534 00:20:28,561 --> 00:20:30,529 Narrator: Four Sharks are out. 535 00:20:30,529 --> 00:20:35,334 Kevin has offered Annie $300,000 for a 15% stake 536 00:20:35,334 --> 00:20:37,670 in her sweet-and-spicy sauce and candy business, 537 00:20:37,670 --> 00:20:41,340 I Love Chamoy, but it's a much bigger stake 538 00:20:41,340 --> 00:20:44,176 than the 5% she came in offering. 539 00:20:44,176 --> 00:20:45,411 Well, all Sharks are out 540 00:20:45,411 --> 00:20:49,048 and all chamoy leads to Mr. Wonderful. 541 00:20:51,517 --> 00:20:55,454 What do you want to do, Annie? 542 00:20:55,454 --> 00:20:59,125 Mr. Wonderful, would you consider doing 543 00:20:59,125 --> 00:21:03,229 $350,000 for 7%? 544 00:21:03,229 --> 00:21:06,298 No. Here's my concerns. 545 00:21:06,298 --> 00:21:07,500 I think retail is harder than you think. 546 00:21:07,500 --> 00:21:09,368 You've heard that already from the Sharks. 547 00:21:09,368 --> 00:21:11,437 We've all been through the retail meat grinder. 548 00:21:11,437 --> 00:21:13,639 I'm a big believer in what you've done on social. 549 00:21:13,639 --> 00:21:16,275 But then there's the factor that I was worried about. 550 00:21:16,275 --> 00:21:18,477 And, you know, it's Halloween here, 551 00:21:18,477 --> 00:21:20,513 and there's tombstones and skulls. 552 00:21:20,513 --> 00:21:21,780 Are you getting creepy? 553 00:21:21,780 --> 00:21:25,384 No, I'm thinking you get run over by a truck. The risk. 554 00:21:25,384 --> 00:21:27,386 Well, I was gonna say -- And you're gonna walk in 555 00:21:27,386 --> 00:21:28,721 and just operate the company, right? 556 00:21:28,721 --> 00:21:30,589 -You know what? I mean... -You're the whole deal. 557 00:21:30,589 --> 00:21:31,790 ...that is not a legitimate reason. 558 00:21:31,790 --> 00:21:34,527 We've built a really, really strong brand. 559 00:21:34,527 --> 00:21:36,395 And I just want to say, when it comes to moving 560 00:21:36,395 --> 00:21:37,563 into retail and taking -- 561 00:21:37,563 --> 00:21:40,533 I'm a big fan of taking calculated risks. 562 00:21:40,533 --> 00:21:41,634 Obviously, and it shows. 563 00:21:41,634 --> 00:21:42,768 I don't necessarily agree about getting -- 564 00:21:42,768 --> 00:21:44,570 if you get hit by a truck, those are other problems. 565 00:21:44,570 --> 00:21:49,241 But you do have the money to hire another business partner, 566 00:21:49,241 --> 00:21:50,576 which I would definitely, 567 00:21:50,576 --> 00:21:51,777 whether you make a deal or not... 568 00:21:51,777 --> 00:21:53,679 You countered, and you're allowed to say no, Annie. 569 00:21:53,679 --> 00:21:56,081 Honestly, Annie, what if he got hit by a truck? 570 00:21:56,081 --> 00:21:56,749 That's right, Kevin. 571 00:21:56,749 --> 00:21:58,717 -Then I would take his chair. -I look at it this way. 572 00:21:58,717 --> 00:22:00,653 I have a whole team of people that work with me, 573 00:22:00,653 --> 00:22:02,822 and they have for decades. They're Team Wonderful. 574 00:22:02,822 --> 00:22:05,558 Everybody knows that. And you'll meet them. 575 00:22:05,558 --> 00:22:07,626 But, you know, there's enough risk in this deal 576 00:22:07,626 --> 00:22:11,463 because the big guys in this space can easily knock you off. 577 00:22:11,463 --> 00:22:12,665 And then all you've got 578 00:22:12,665 --> 00:22:14,834 is whatever the brand is at that point, 579 00:22:14,834 --> 00:22:18,204 'cause they can fight on price, they can fight on distribution. 580 00:22:18,204 --> 00:22:19,438 I get all that. 581 00:22:19,438 --> 00:22:20,773 I've made you an offer I'm comfortable with. 582 00:22:20,773 --> 00:22:23,609 You're not dead to me right now. You could be in a minute. 583 00:22:23,609 --> 00:22:26,245 Stick to your guns, Annie. Stick to your guns. 584 00:22:26,245 --> 00:22:28,380 15% is too much. I've been -- 585 00:22:28,380 --> 00:22:29,548 I'm gonna stick with my guns, too, Annie. 586 00:22:29,548 --> 00:22:32,484 I'll do the deal. I'll give you $300,000 for 15%, 587 00:22:32,484 --> 00:22:33,552 and you've got a partner, 588 00:22:33,552 --> 00:22:36,422 and we ride into the mariachi sunset. 589 00:22:36,422 --> 00:22:37,489 You're brutal. 590 00:22:37,489 --> 00:22:38,757 I'm not brutal. I'm Mr. Wonderful. 591 00:22:38,757 --> 00:22:40,759 I came here to make a deal, but this is breaking my heart. 592 00:22:40,759 --> 00:22:43,896 I'm not competing with anybody, just myself. 593 00:22:43,896 --> 00:22:46,532 And I'll tell you this -- I came here to get a deal, 594 00:22:46,532 --> 00:22:48,934 to make my parents proud, to make my community proud. 595 00:22:48,934 --> 00:22:51,470 And because I truly believe... You already have. 596 00:22:51,470 --> 00:22:52,538 ...in how far this -- thank you -- 597 00:22:52,538 --> 00:22:56,375 how far this company can go, 598 00:22:56,375 --> 00:22:59,278 would you consider doing $300,000 for 8%, 599 00:22:59,278 --> 00:23:00,646 and we have a deal? 600 00:23:00,646 --> 00:23:01,847 Well, I haven't been flexible yet, 601 00:23:01,847 --> 00:23:04,383 but I'll go to 12 1/2 and I'll do it there. 602 00:23:04,383 --> 00:23:05,551 That's my final offer. 603 00:23:05,551 --> 00:23:07,453 12 is so high. In the spirit of Halloween -- 604 00:23:07,453 --> 00:23:09,555 -It's not so high. -In the spirit of Halloween. 605 00:23:09,555 --> 00:23:11,490 I've been working really hard to make all of these sales... 606 00:23:11,490 --> 00:23:13,325 Annie, you're insanely profitable. 607 00:23:13,325 --> 00:23:14,627 That's the difference. Thank you. 608 00:23:14,627 --> 00:23:16,462 If you were losing money, 609 00:23:16,462 --> 00:23:18,497 then the 3%, 5% doesn't really matter. 610 00:23:18,497 --> 00:23:20,799 Meet in the middle, guys. It's a great deal. 611 00:23:20,799 --> 00:23:21,867 O'Leary: All of this is interesting, 612 00:23:21,867 --> 00:23:23,636 but none of them are making you an offer. 613 00:23:23,636 --> 00:23:25,738 I'm the only Shark that really believes in you 614 00:23:25,738 --> 00:23:28,374 with his money. I'll do it at 12.5%. 615 00:23:28,374 --> 00:23:30,376 My final offer, Annie. 616 00:23:33,545 --> 00:23:35,581 -I can't take the 12.5%. -I appreciate it. 617 00:23:35,581 --> 00:23:37,683 Yay! Good for you. 618 00:23:37,683 --> 00:23:39,652 -Thank you so much. Bye, guys. -Great job, Annie. 619 00:23:39,652 --> 00:23:42,454 Greiner: Good job, Annie. Congratulations. 620 00:23:43,622 --> 00:23:45,724 Leal: That was a blood-sucking offer that Kevin made. 621 00:23:45,724 --> 00:23:48,761 His ask, 12.5%, was just way too high. 622 00:23:48,761 --> 00:23:50,696 I've worked really hard for I Love Chamoy. 623 00:23:50,696 --> 00:23:51,864 We're profitable. 624 00:23:51,864 --> 00:23:54,533 We have so many new things coming out, and it's just -- 625 00:23:54,533 --> 00:23:56,669 I wasn't able to meet him at that number. 626 00:23:56,669 --> 00:23:58,604 Narrator: For our milestone 15th season, 627 00:23:58,604 --> 00:24:01,407 we're counting down the top 15 Shark Tank companies 628 00:24:01,407 --> 00:24:03,676 with the highest total retail sales. 629 00:24:03,676 --> 00:24:08,514 Number 3 is Scrub Daddy with $926 million. 630 00:24:08,514 --> 00:24:13,352 Number 2 is Everlywell with a whopping $1.1 billion. 631 00:24:13,352 --> 00:24:15,621 And the top spot goes to Bombas 632 00:24:15,621 --> 00:24:19,491 with $1.3 billion in retail sales. 633 00:24:28,634 --> 00:24:35,774 ♪♪ 634 00:24:35,774 --> 00:24:37,743 Narrator: Next up are two artists 635 00:24:37,743 --> 00:24:39,611 with a passion for pumpkins. 636 00:24:39,611 --> 00:24:46,785 ♪♪ 637 00:24:46,785 --> 00:24:49,288 [ Thunder rumbles ] 638 00:24:51,557 --> 00:24:53,692 Hey Sharks. I'm Marc Evan. 639 00:24:53,692 --> 00:24:54,760 And I'm Chris Soria. 640 00:24:54,760 --> 00:24:56,729 We're from New York, and we're the co-founders 641 00:24:56,729 --> 00:24:58,597 of a crazy carving company. 642 00:24:58,597 --> 00:25:00,232 We are... 643 00:25:03,369 --> 00:25:03,869 [ Laughter ] 644 00:25:03,869 --> 00:25:06,505 Together: ...Maniac Pumpkin Carvers. 645 00:25:06,505 --> 00:25:08,674 We're lifelong artists, Halloween lovers, 646 00:25:08,674 --> 00:25:11,577 and professional carvers who have been honing our skills 647 00:25:11,577 --> 00:25:13,579 and techniques for decades. 648 00:25:13,579 --> 00:25:15,581 We produce custom pieces that have been featured 649 00:25:15,581 --> 00:25:17,816 and displayed in prestigious museums, 650 00:25:17,816 --> 00:25:20,753 events, and installations across the country. 651 00:25:20,753 --> 00:25:22,688 From detailed portraits 652 00:25:22,688 --> 00:25:24,790 to re-creations of famous works of art 653 00:25:24,790 --> 00:25:26,058 and iconic insignia. 654 00:25:26,058 --> 00:25:29,762 We've carved out our niche, elevating this nostalgic pastime 655 00:25:29,762 --> 00:25:31,030 to an ephemeral art form. 656 00:25:31,030 --> 00:25:34,633 And now we're here to help all of you with our... 657 00:25:34,633 --> 00:25:36,502 Together: ...School of Pumpkin. 658 00:25:36,502 --> 00:25:37,936 We'll feature online carving classes, 659 00:25:37,936 --> 00:25:40,539 teaching a wide variety of pumpkin techniques 660 00:25:40,539 --> 00:25:43,709 to help unlock your true pumpkin potential. 661 00:25:43,709 --> 00:25:45,744 And we'll offer all the tools and resources 662 00:25:45,744 --> 00:25:47,980 one needs to carve the perfect pumpkin. 663 00:25:47,980 --> 00:25:50,783 Our School of Pumpkin is still growing on the vine. 664 00:25:50,783 --> 00:25:55,654 That's why we're seeking $150,000 for 8% equity 665 00:25:55,654 --> 00:25:56,955 to really help it thrive. 666 00:25:56,955 --> 00:26:00,659 So, Sharks, who wants to get pumped up with us and... 667 00:26:00,659 --> 00:26:02,094 Together: ...pumpkin like a pro? 668 00:26:02,094 --> 00:26:06,565 So how would you guys release my pumpkin-carving potential? 669 00:26:06,565 --> 00:26:08,667 Well, we've been teaching art 670 00:26:08,667 --> 00:26:11,570 for over a decade in various forms. 671 00:26:11,570 --> 00:26:13,906 Our courses will get you through the steps 672 00:26:13,906 --> 00:26:16,008 to carve something that you're really proud of. 673 00:26:16,008 --> 00:26:18,811 And even if your first one is not a masterpiece, 674 00:26:18,811 --> 00:26:20,112 we're still gonna help you get away 675 00:26:20,112 --> 00:26:23,515 from the classic jack-o'-lantern that you've done in the past 676 00:26:23,515 --> 00:26:24,650 and do something really fun. 677 00:26:24,650 --> 00:26:27,186 Tell us about the business. What are we buying into? 678 00:26:27,186 --> 00:26:30,756 And what is the tangible thing that the consumer is buying? 679 00:26:30,756 --> 00:26:32,024 The last three years 680 00:26:32,024 --> 00:26:35,027 were a real game-changer in our business, 681 00:26:35,027 --> 00:26:39,631 which a lot of it depended on live, in-person events. 682 00:26:39,631 --> 00:26:40,799 And with the pandemic, 683 00:26:40,799 --> 00:26:43,936 we immediately transitioned to doing online classes, 684 00:26:43,936 --> 00:26:46,438 online events and demonstrations. 685 00:26:46,438 --> 00:26:47,539 Are you making any money? 686 00:26:47,539 --> 00:26:48,841 In the last three years, 687 00:26:48,841 --> 00:26:53,812 we sold over $170,000 worth of virtual-class experiences... 688 00:26:53,812 --> 00:26:54,847 -Wow. -Good for you. 689 00:26:54,847 --> 00:26:56,982 ...and $90,000 of tool kits. 690 00:26:56,982 --> 00:26:59,785 So you do have a tool kit. We just don't see it. 691 00:26:59,785 --> 00:27:02,921 Our tool kits currently are hand-selected items 692 00:27:02,921 --> 00:27:06,859 that we've been using that we love and recommend. 693 00:27:06,859 --> 00:27:08,093 But we do have dreams 694 00:27:08,093 --> 00:27:10,863 of releasing our own proprietary tools. 695 00:27:10,863 --> 00:27:12,965 Just in the last year, how much did you make? 696 00:27:12,965 --> 00:27:16,034 Last year our gross sales were $294,000. 697 00:27:16,034 --> 00:27:17,903 But that's for pumpkins, not classes. 698 00:27:17,903 --> 00:27:20,706 No, our business, we do all different types of things 699 00:27:20,706 --> 00:27:22,708 pumpkin-related, including events, 700 00:27:22,708 --> 00:27:25,944 classes, demonstrations, and custom carving orders. 701 00:27:25,944 --> 00:27:28,947 If I want to order Mr. Wonderful pumpkin, 702 00:27:28,947 --> 00:27:30,716 do I send you a picture? And he will. 703 00:27:30,716 --> 00:27:32,017 For sure he will. 704 00:27:32,017 --> 00:27:33,819 How do I get my face in 3D? 705 00:27:33,819 --> 00:27:35,821 Are you using laser cutters? How are you doing this? 706 00:27:35,821 --> 00:27:37,890 We do all the artwork by hand. 707 00:27:37,890 --> 00:27:39,124 And that's real pumpkin? 708 00:27:39,124 --> 00:27:41,760 These are real pumpkins carved by hand. 709 00:27:41,760 --> 00:27:42,995 We're lifelong artists. 710 00:27:42,995 --> 00:27:47,032 People hire us to do portraits and logos and movie posters, 711 00:27:47,032 --> 00:27:48,867 all kinds of amazing designs. 712 00:27:48,867 --> 00:27:50,769 So somebody watching on television -- 713 00:27:50,769 --> 00:27:54,039 can they go to a website and upload a picture, 714 00:27:54,039 --> 00:27:56,842 and you'll send them a pumpkin? Or does it have to be local? 715 00:27:56,842 --> 00:27:59,044 We do ship pumpkins all over the country. 716 00:27:59,044 --> 00:28:02,614 The cost of shipping a live pumpkin is a little prohibitive. 717 00:28:02,614 --> 00:28:03,882 Nothing would make me happier 718 00:28:03,882 --> 00:28:06,084 than sending a picture of Mr. Wonderful.... 719 00:28:06,084 --> 00:28:09,021 Yeah! ...and you sending me a carved 3D pumpkin 720 00:28:09,021 --> 00:28:12,824 of Mr. Wonderful so I can smash it on Halloween night. 721 00:28:12,824 --> 00:28:14,927 Or it could have a spike in its head, like, yeah. 722 00:28:14,927 --> 00:28:16,061 -Even better. See? -Even better. 723 00:28:16,061 --> 00:28:18,096 I think we should offer a Wonder special. 724 00:28:18,096 --> 00:28:20,933 And I'll get a 7% royalty. What would that cost? 725 00:28:20,933 --> 00:28:23,735 So a portrait of Mr. Wonderful would probably be 726 00:28:23,735 --> 00:28:26,738 somewhere in the $600 to $800 range. 727 00:28:26,738 --> 00:28:27,739 Oh, so worth it. 728 00:28:27,739 --> 00:28:28,974 You have to do the work yourself, 729 00:28:28,974 --> 00:28:31,009 or do you have a lot of carvers working for you? 730 00:28:31,009 --> 00:28:33,812 We do. We have a team of artists 731 00:28:33,812 --> 00:28:38,183 that we staff mostly for the peak weeks of October. 732 00:28:38,183 --> 00:28:40,719 The rest of the time, we're cranking out 733 00:28:40,719 --> 00:28:41,853 as much of it as we can. 734 00:28:41,853 --> 00:28:43,155 But you're all pumpkin all the time now, 735 00:28:43,155 --> 00:28:44,890 'cause it sounds to me like you're pulling out 736 00:28:44,890 --> 00:28:49,161 between $150,000 and $200,000 each a year as pumpkin dudes. 737 00:28:49,161 --> 00:28:52,064 No, they're all pumpkin all the time one month a year. 738 00:28:52,064 --> 00:28:54,766 Well, except I'm thinking maybe I want to do a little 739 00:28:54,766 --> 00:28:56,768 pumpkin action off season. Can I do that? 740 00:28:56,768 --> 00:28:58,103 When we first started the business, 741 00:28:58,103 --> 00:29:01,206 our season was really the week or two before Halloween. 742 00:29:01,206 --> 00:29:03,809 Now our season is a quarter of the year. 743 00:29:03,809 --> 00:29:06,044 So in August and September, 744 00:29:06,044 --> 00:29:08,246 we're carving tons of things that are gonna be used 745 00:29:08,246 --> 00:29:10,916 in product placements and advertisements. Ah. 746 00:29:10,916 --> 00:29:12,150 It's really content creation. 747 00:29:12,150 --> 00:29:14,653 Could you carve my face on a watermelon? 748 00:29:14,653 --> 00:29:15,220 -Absolutely. -Absolutely. 749 00:29:15,220 --> 00:29:17,689 Could you put Mark Cuban's on the grape? 750 00:29:17,689 --> 00:29:19,825 Guys! [ Laughter ] 751 00:29:19,825 --> 00:29:21,093 I have a more kind of 752 00:29:21,093 --> 00:29:22,961 philosophical question for you guys. 753 00:29:22,961 --> 00:29:24,696 You have this great thing going. 754 00:29:24,696 --> 00:29:26,698 It's small. It's seasonal. 755 00:29:26,698 --> 00:29:28,967 It seems tricky to scale, 756 00:29:28,967 --> 00:29:30,736 and you have a great thing going. 757 00:29:30,736 --> 00:29:32,004 So why are you here? 758 00:29:32,004 --> 00:29:34,973 We really want to get into the direct-consumer market. 759 00:29:34,973 --> 00:29:37,876 Halloween is a $10-billion-a-year industry. 760 00:29:37,876 --> 00:29:38,977 -Yeah, baby! -Yes, it is. 761 00:29:38,977 --> 00:29:40,946 149 million people are expected 762 00:29:40,946 --> 00:29:43,015 to carve pumpkins this year. 763 00:29:43,015 --> 00:29:46,018 We want all of those people to be using our tools 764 00:29:46,018 --> 00:29:48,286 and downloading our streaming classes. 765 00:29:48,286 --> 00:29:50,322 -But you don't have tools. -You don't have the tools, yeah. 766 00:29:50,322 --> 00:29:52,858 You gotta have tools with your name on. Yeah. 767 00:29:52,858 --> 00:29:55,827 You got to have Maniac Pumpkin Carvers knives. 768 00:29:55,827 --> 00:29:56,962 Knives! 769 00:29:56,962 --> 00:29:59,865 How quickly are your online classes growing now? 770 00:29:59,865 --> 00:30:01,900 So far we haven't been 771 00:30:01,900 --> 00:30:03,669 offering them direct to consumer. 772 00:30:03,669 --> 00:30:05,003 Oh, small detail. 773 00:30:05,003 --> 00:30:06,805 Oh, you don't have classes to people? Who are you selling them to? 774 00:30:06,805 --> 00:30:07,939 To corporate clients. 775 00:30:07,939 --> 00:30:11,943 They have us do a live Zoom class or webinar. 776 00:30:11,943 --> 00:30:14,880 It's a great, fun team-building exercise. 777 00:30:14,880 --> 00:30:15,881 Yeah, but you know what? 778 00:30:15,881 --> 00:30:16,982 You're barking up the wrong tree. 779 00:30:16,982 --> 00:30:19,951 Why not apply your skills to another market? 780 00:30:19,951 --> 00:30:21,953 Do you ever do sand castles? 781 00:30:21,953 --> 00:30:24,189 That's temporary. It takes artistic talent. 782 00:30:24,189 --> 00:30:27,793 Why curtail your whole business into four months a year? 783 00:30:27,793 --> 00:30:28,994 I don't see the potential in it. 784 00:30:28,994 --> 00:30:31,063 So for that reason, I'm out. 785 00:30:31,063 --> 00:30:33,265 Okay. Thank you. I think you guys have done a fantastic job 786 00:30:33,265 --> 00:30:35,334 articulating a market I'd never heard of. 787 00:30:35,334 --> 00:30:38,003 But, guys, I don't see a scalable business here. 788 00:30:38,003 --> 00:30:40,872 Your deal itself is very, very scary. 789 00:30:40,872 --> 00:30:42,340 So I'm out. 790 00:30:42,340 --> 00:30:44,976 Look, guys, you're looking for a way to scale. 791 00:30:44,976 --> 00:30:48,013 That's the hard part, right? I just don't know that 792 00:30:48,013 --> 00:30:50,082 online pumpkin-carving classes will be huge. 793 00:30:50,082 --> 00:30:51,917 That makes it a tough investment. 794 00:30:51,917 --> 00:30:53,318 So for those reasons, I'm out. 795 00:30:53,318 --> 00:30:54,953 But congrats on what you've accomplished. 796 00:30:54,953 --> 00:30:56,054 -Thank you. -Thank you. 797 00:30:56,054 --> 00:30:58,290 Listen, there's a lot of pumpkin-carving tools 798 00:30:58,290 --> 00:31:01,293 out there, actually, and there's diagrams 799 00:31:01,293 --> 00:31:04,029 and stencils and things like that. 800 00:31:04,029 --> 00:31:05,897 I don't think trying to compete with what else 801 00:31:05,897 --> 00:31:08,166 is out there already really makes any sense. 802 00:31:08,166 --> 00:31:10,936 So I'm not gonna take the journey, I'm sorry. 803 00:31:10,936 --> 00:31:12,971 I wish you good luck, but I'm out. 804 00:31:12,971 --> 00:31:14,172 Thank you. 805 00:31:14,172 --> 00:31:18,777 Guys, my business today is really managing the line 806 00:31:18,777 --> 00:31:20,345 between art and commerce, 807 00:31:20,345 --> 00:31:23,215 taking artists who make movies and TV shows 808 00:31:23,215 --> 00:31:26,985 and making those movies and television shows profitable. 809 00:31:26,985 --> 00:31:30,322 And what I see today is two terrific artists 810 00:31:30,322 --> 00:31:34,226 with a fabulous seasonal activity, 811 00:31:34,226 --> 00:31:37,028 which is fun for you guys to do. 812 00:31:37,028 --> 00:31:38,230 And I actually think 813 00:31:38,230 --> 00:31:41,066 if you had more business running through your veins -- 814 00:31:41,066 --> 00:31:42,901 you'd be selling images and everything else -- 815 00:31:42,901 --> 00:31:44,269 I think if you actually did that, 816 00:31:44,269 --> 00:31:46,104 you would be very, very unhappy. 817 00:31:46,104 --> 00:31:49,875 And an unhappy entrepreneur is not a successful entrepreneur. 818 00:31:49,875 --> 00:31:51,843 So for that reason, I'm out. 819 00:31:53,378 --> 00:31:55,447 -Have fun, guys. Congrats. -Get ready for those orders. 820 00:31:55,447 --> 00:31:57,949 -Thank you for sharing with us. -Thank you very much. 821 00:31:57,949 --> 00:31:59,217 Cuban: Congrats, guys. 822 00:31:59,217 --> 00:32:02,120 Evan: We are disappointed that we didn't get an investment, 823 00:32:02,120 --> 00:32:04,189 but it's not gonna stop us from doing what we do. 824 00:32:04,189 --> 00:32:05,323 We're just gonna keep moving forward, 825 00:32:05,323 --> 00:32:08,927 making pumpkin art, teaching pumpkin classes. 826 00:32:08,927 --> 00:32:10,495 It's October. This is our busy season. 827 00:32:10,495 --> 00:32:13,298 We have to get back to the studio and get carving. 828 00:32:13,298 --> 00:32:15,934 It's gonna be a crazy season no matter what. 829 00:32:15,934 --> 00:32:18,937 ♪♪ 830 00:32:25,143 --> 00:32:27,913 Narrator: Next into the Tank is a way to experience 831 00:32:27,913 --> 00:32:30,048 some of life's dark mysteries. 832 00:32:30,048 --> 00:32:31,817 [ Snarls ] 833 00:32:31,817 --> 00:32:36,955 ♪♪ 834 00:32:36,955 --> 00:32:38,990 [ Thunder rumbles ] 835 00:32:40,325 --> 00:32:43,061 Hi, Sharks. My name is Mike Huberty. 836 00:32:43,061 --> 00:32:44,329 And I'm Allison Jornlin. 837 00:32:44,329 --> 00:32:49,768 And we're asking for $250,000 for 15% of our company. 838 00:32:49,768 --> 00:32:51,336 Can ghosts make you rich? 839 00:32:51,336 --> 00:32:55,207 September 24th, 1869 -- the first Black Friday. 840 00:32:55,207 --> 00:32:57,108 The price of gold collapses. 841 00:32:57,108 --> 00:32:59,244 The United States stock market is devastated. 842 00:32:59,244 --> 00:33:03,815 Except for one tycoon who anticipated the disaster 843 00:33:03,815 --> 00:33:05,183 and came out on top. 844 00:33:05,183 --> 00:33:07,185 Cornelius Vanderbilt. 845 00:33:07,185 --> 00:33:09,254 Because he had a secret. 846 00:33:09,254 --> 00:33:11,122 He was living with a psychic medium 847 00:33:11,122 --> 00:33:12,991 who would hold séances in his house 848 00:33:12,991 --> 00:33:15,093 and ask the spirits what the future 849 00:33:15,093 --> 00:33:16,528 of the stock market might hold. 850 00:33:16,528 --> 00:33:19,965 When asked how other business leaders could experience 851 00:33:19,965 --> 00:33:22,801 similar success, Vanderbilt said... 852 00:33:22,801 --> 00:33:23,902 "Do as I do..." 853 00:33:23,902 --> 00:33:25,904 [ Evil laughter ] 854 00:33:25,904 --> 00:33:28,039 "...consult the spirits." 855 00:33:28,039 --> 00:33:31,042 Sharks, it's real haunted history like this 856 00:33:31,042 --> 00:33:33,144 that inspired my sister and I to found 857 00:33:33,144 --> 00:33:35,013 American Ghost Walks -- 858 00:33:35,013 --> 00:33:37,249 deeply researched history tours 859 00:33:37,249 --> 00:33:40,352 of beautiful locations with haunted pasts. 860 00:33:40,352 --> 00:33:43,889 Our tours are entertaining presentations 861 00:33:43,889 --> 00:33:45,423 of remarkable facts 862 00:33:45,423 --> 00:33:50,262 so that even nonbelievers have a wickedly good time. 863 00:33:50,262 --> 00:33:53,365 So, Sharks, Cornelius Vanderbilt knew 864 00:33:53,365 --> 00:33:55,500 that ghosts could make you rich. 865 00:33:55,500 --> 00:33:59,571 So who's ready to consult the spirits 866 00:33:59,571 --> 00:34:03,975 and join American Ghost Walks for some real ghost stories 867 00:34:03,975 --> 00:34:06,278 and real spooky fun? 868 00:34:06,278 --> 00:34:09,014 What is your business? It's tours or it's virtual? 869 00:34:09,014 --> 00:34:12,250 It's live, guided haunted history tours. 870 00:34:12,250 --> 00:34:15,253 Now we're in seven states and Puerto Rico. 871 00:34:15,253 --> 00:34:17,255 Good for you. How many people do you have giving the tours? 872 00:34:17,255 --> 00:34:19,124 We have about 32 employees. 873 00:34:19,124 --> 00:34:21,026 -Wow. -I thought you guys were a joke. 874 00:34:21,026 --> 00:34:22,227 You have a real business here. 875 00:34:22,227 --> 00:34:24,262 Are the tour guides -- are they playing a part, 876 00:34:24,262 --> 00:34:26,564 or are they just very neutral and explaining a story? 877 00:34:26,564 --> 00:34:29,334 Great question. The tour guides are people 878 00:34:29,334 --> 00:34:31,303 who are engaged and love the paranormal. 879 00:34:31,303 --> 00:34:33,171 Blum: Almost every horror movie that we make, 880 00:34:33,171 --> 00:34:35,140 there has to be one authority. 881 00:34:35,140 --> 00:34:38,043 The audience, at least, has to believe 882 00:34:38,043 --> 00:34:39,344 that this person is an authority 883 00:34:39,344 --> 00:34:41,212 and really believes in the paranormal. 884 00:34:41,212 --> 00:34:43,214 So the casting of your tour guides 885 00:34:43,214 --> 00:34:45,216 is extraordinarily important, I would imagine. 886 00:34:45,216 --> 00:34:47,519 Absolutely. Which is why we hire people 887 00:34:47,519 --> 00:34:49,387 who have a passion for this already. 888 00:34:49,387 --> 00:34:51,256 It's people who already had an interest 889 00:34:51,256 --> 00:34:53,258 in true crime and ghost stories, 890 00:34:53,258 --> 00:34:56,227 and they were doing this already for fun 891 00:34:56,227 --> 00:34:57,362 and taking their friends around. 892 00:34:57,362 --> 00:34:59,331 But we write a script, 893 00:34:59,331 --> 00:35:01,333 do the research, find the stories. 894 00:35:01,333 --> 00:35:04,069 Like, in Los Angeles and Chicago, it's easy. 895 00:35:04,069 --> 00:35:05,270 There's a ton of public spaces. 896 00:35:05,270 --> 00:35:07,172 You've got buildings that have been around for 100 years 897 00:35:07,172 --> 00:35:09,074 that have history, that have ghost stories. 898 00:35:09,074 --> 00:35:10,108 You go right in front of them. 899 00:35:10,108 --> 00:35:12,277 Some of the smaller towns are exciting 900 00:35:12,277 --> 00:35:15,447 because you're finding stories that nobody else has. 901 00:35:15,447 --> 00:35:17,415 How long has the business been going on 902 00:35:17,415 --> 00:35:18,516 and how much are you making? 903 00:35:18,516 --> 00:35:21,186 Allison started in 2008 in Milwaukee, 904 00:35:21,186 --> 00:35:22,687 and then I started in Madison in 2010. 905 00:35:22,687 --> 00:35:25,357 Started a tour in Minneapolis. The next year was Saint Paul. 906 00:35:25,357 --> 00:35:27,092 Next year was a vacation town. 907 00:35:27,092 --> 00:35:29,194 Were they all equally successful? 908 00:35:29,194 --> 00:35:31,429 No. [ Laughter ] 909 00:35:31,429 --> 00:35:32,764 All these are cities in the north. 910 00:35:32,764 --> 00:35:34,532 What do you do in the winter? "No." "No." 911 00:35:34,532 --> 00:35:36,568 Well, in the winter time, a lot of them close down. 912 00:35:36,568 --> 00:35:40,905 But so in 2020, Minnesota and Wisconsin are our only states. 913 00:35:40,905 --> 00:35:42,273 So we made $92,000. 914 00:35:42,273 --> 00:35:44,542 Made as means profit or grossed, when you say 92,000? 915 00:35:44,542 --> 00:35:47,278 That is grossed. You grossed $92,000. 916 00:35:47,278 --> 00:35:50,115 And so then we grossed in 2021, 917 00:35:50,115 --> 00:35:53,284 when we added Illinois, $392,000. 918 00:35:53,284 --> 00:35:55,487 -How much did you spend? -Ooh, that's a lot. 919 00:35:55,487 --> 00:35:57,589 We spent -- let's see, it was $392,000. 920 00:35:57,589 --> 00:36:00,291 We spent $300,000. Wow. That's a lot. 921 00:36:00,291 --> 00:36:01,459 -So you made $92,000 in profit? -Correct. 922 00:36:01,459 --> 00:36:04,129 Right. Continue. What about now? 923 00:36:04,129 --> 00:36:08,033 2022, we moved to $546,000. 924 00:36:08,033 --> 00:36:10,068 What was the net of 2022? 925 00:36:10,068 --> 00:36:11,536 Net of '22 was negative. 926 00:36:11,536 --> 00:36:13,505 Negative. Okay. How much did you lose? 927 00:36:13,505 --> 00:36:15,573 -We lost $42,000. -Got it. 928 00:36:15,573 --> 00:36:17,642 We reinvested in the business that year. 929 00:36:17,642 --> 00:36:22,547 So that's when we spent money buying a tour in Chicago. 930 00:36:22,547 --> 00:36:25,250 You bought one that existed? That's interesting. 931 00:36:25,250 --> 00:36:27,585 Yes, acquisitions are very important in this business. 932 00:36:27,585 --> 00:36:29,421 How much did you spend on the acquisitions? 933 00:36:29,421 --> 00:36:31,289 About $115,000. 934 00:36:31,289 --> 00:36:33,425 What's your projected gross in '23? 935 00:36:33,425 --> 00:36:36,594 We're projecting about $650,000. 936 00:36:36,594 --> 00:36:40,198 And what's your projected spend in '23? 937 00:36:40,198 --> 00:36:41,599 $600,000. 938 00:36:41,599 --> 00:36:44,335 Right, so tiny profit. So right now -- 939 00:36:44,335 --> 00:36:45,503 And are you guys doing this full-time? 940 00:36:45,503 --> 00:36:47,405 Oh, we quit our jobs. We quit our jobs. 941 00:36:47,405 --> 00:36:49,507 So this is it. We're full-time professional weirdos. 942 00:36:49,507 --> 00:36:51,643 How much are you pulling out of the business right now? 943 00:36:51,643 --> 00:36:54,245 I usually, I budget, and then when I see the bills, 944 00:36:54,245 --> 00:36:56,448 I pull out enough to pay the bills. 945 00:36:56,448 --> 00:36:58,383 About how much? 'Cause you're talking about bringing in an investor. 946 00:36:58,383 --> 00:36:59,517 They gotta pull something out too, right? 947 00:36:59,517 --> 00:37:01,553 Absolutely. You got to wet your beak on a deal. 948 00:37:01,553 --> 00:37:03,254 Well, they're in a growth stage. 949 00:37:03,254 --> 00:37:04,656 Right, we are definitely -- thank you, Jason, 950 00:37:04,656 --> 00:37:06,524 for for saying that. You're welcome. 951 00:37:06,524 --> 00:37:08,760 We're in a growth position right now. 952 00:37:08,760 --> 00:37:11,396 Is that a different way of saying you can't make any money? 953 00:37:11,396 --> 00:37:12,630 -No, no! -No. 954 00:37:12,630 --> 00:37:16,134 No, it's saying that we've invested in acquisitions 955 00:37:16,134 --> 00:37:18,369 and we've made that money back. 956 00:37:18,369 --> 00:37:21,439 And now we've discovered a scalable business model 957 00:37:21,439 --> 00:37:25,376 that we want to take nationwide, but that's not the limit. 958 00:37:25,376 --> 00:37:27,445 I get it. I get the model. It's a service business. 959 00:37:27,445 --> 00:37:29,714 Right. But, really, you want to be profitable. 960 00:37:29,714 --> 00:37:32,450 Well, let's talk about cruise excursions next, 961 00:37:32,450 --> 00:37:35,353 because we've broken into the cruise market. 962 00:37:35,353 --> 00:37:36,521 That's where we're going to see -- 963 00:37:36,521 --> 00:37:38,590 -The haunted cruise? -Yeah. 964 00:37:38,590 --> 00:37:42,260 Guys, I desperately wanted to have 965 00:37:42,260 --> 00:37:43,695 a successful production company. 966 00:37:43,695 --> 00:37:46,664 The first movie we ever did, which was "Paranormal Activity," 967 00:37:46,664 --> 00:37:49,601 and I thought after we had that movie, 968 00:37:49,601 --> 00:37:53,705 I'm gonna do low-budget horror movies and nothing else. 969 00:37:53,705 --> 00:37:57,275 And I was lucky I had that success when I was 35 years old. 970 00:37:57,275 --> 00:37:59,277 If I was 20, I would have said, 971 00:37:59,277 --> 00:38:01,412 "I want to make the next 'Transformers.' 972 00:38:01,412 --> 00:38:02,480 I want to make a big, expensive..." 973 00:38:02,480 --> 00:38:04,315 But I said, "I want to do nothing 974 00:38:04,315 --> 00:38:05,583 but low-budget horror movies." 975 00:38:05,583 --> 00:38:08,286 And that's how I grew my business 976 00:38:08,286 --> 00:38:09,587 to what it is today. 977 00:38:09,587 --> 00:38:13,925 And what I hear is that you're spread way too thin. 978 00:38:13,925 --> 00:38:18,530 You guys are not spending enough time on what you have. 979 00:38:18,530 --> 00:38:20,765 And if I give you one piece of advice, 980 00:38:20,765 --> 00:38:22,934 is to try and focus on the assets that you have 981 00:38:22,934 --> 00:38:26,504 and make them more profitable before you take in outside money 982 00:38:26,504 --> 00:38:28,740 or before you spend more money, in any case. 983 00:38:28,740 --> 00:38:31,309 And for those reasons, and I wish you the best of luck, 984 00:38:31,309 --> 00:38:33,344 I'm out. 985 00:38:33,344 --> 00:38:34,779 I think it's fun what you're doing, 986 00:38:34,779 --> 00:38:38,316 and I think it's great passion and interest for you. 987 00:38:38,316 --> 00:38:40,685 But I agree with everything that Jason said. 988 00:38:40,685 --> 00:38:43,454 And for those reasons, I'm out. 989 00:38:43,454 --> 00:38:46,491 Well, we appreciate your advice. Absolutely. 990 00:38:46,491 --> 00:38:47,625 The more I listen to you, 991 00:38:47,625 --> 00:38:49,861 on what your plan is, the more confused I am. 992 00:38:49,861 --> 00:38:52,897 But it just dawned on me that I think you're doing 993 00:38:52,897 --> 00:38:56,534 what usually puts most of my entrepreneurs out of business. 994 00:38:56,534 --> 00:38:57,836 It's falling in love with the next rainbow 995 00:38:57,836 --> 00:38:59,838 before you finish the last rainbow. Yeah. 996 00:38:59,838 --> 00:39:02,674 You really haven't given us anything concrete 997 00:39:02,674 --> 00:39:05,443 that makes us feel like your core business 998 00:39:05,443 --> 00:39:08,346 has been profitable, consistent 999 00:39:08,346 --> 00:39:09,681 before you go on to something else. 1000 00:39:09,681 --> 00:39:13,618 So for that reason, I'm out, yeah. 1001 00:39:13,618 --> 00:39:15,453 Look, guys, you have to be more concrete, 1002 00:39:15,453 --> 00:39:16,487 to Barbara's point. 1003 00:39:16,487 --> 00:39:17,722 If you would have come out here and said, 1004 00:39:17,722 --> 00:39:21,459 "We're good at these tours. We know how to double them. 1005 00:39:21,459 --> 00:39:23,695 There's 1,400 of them, 1006 00:39:23,695 --> 00:39:25,830 and we want to buy the top 100" -- 1007 00:39:25,830 --> 00:39:28,600 if you would have been very specific in that strategy, 1008 00:39:28,600 --> 00:39:30,468 that might have gotten my interest, 1009 00:39:30,468 --> 00:39:32,337 but it was a little bit all over the map. 1010 00:39:32,337 --> 00:39:34,806 So for those reasons, I'm out. 1011 00:39:34,806 --> 00:39:39,310 Okay, 'cause we also have not broken into merchandise yet. 1012 00:39:39,310 --> 00:39:41,412 Number one -- we got a sweet logo. 1013 00:39:41,412 --> 00:39:42,780 That logo's gonna look great on t-shirts. 1014 00:39:42,780 --> 00:39:45,683 You are not in the merch! You are in the tour business! 1015 00:39:45,683 --> 00:39:47,652 -It's true. -You do not listen to my advice! 1016 00:39:47,652 --> 00:39:49,387 O'Leary: I'll tell you the trouble I'm having with this deal. 1017 00:39:49,387 --> 00:39:50,722 I think you asked for too much money. 1018 00:39:50,722 --> 00:39:53,558 I'm so intrigued with it. It's so unique. 1019 00:39:53,558 --> 00:39:56,427 The trouble is, it's $250,000, 1020 00:39:56,427 --> 00:39:57,862 a quarter of $1 million. Yes. 1021 00:39:57,862 --> 00:39:59,631 You can't just take a flyer. So I have to make that back. 1022 00:39:59,631 --> 00:40:02,500 Now, my options are I give you the $250,000, 1023 00:40:02,500 --> 00:40:04,569 or I buy another watch, 1024 00:40:04,569 --> 00:40:07,639 and most of my watches appreciate in value. 1025 00:40:07,639 --> 00:40:08,873 That's what happens. 1026 00:40:08,873 --> 00:40:10,775 And that's the only reason I work is to buy more watches 1027 00:40:10,775 --> 00:40:12,744 and sometimes give it to guys like you. 1028 00:40:12,744 --> 00:40:14,579 But you're riskier than a new watch. 1029 00:40:14,579 --> 00:40:18,449 If this was 50 or a hunski, maybe. 1030 00:40:18,449 --> 00:40:19,584 "A hunski." 1031 00:40:19,584 --> 00:40:21,819 And, you know, it's not clear to me how I 10x on this. 1032 00:40:21,819 --> 00:40:23,788 I gotta make 2.5 million bucks. 1033 00:40:23,788 --> 00:40:25,523 That's what we do in Shark Tank. 1034 00:40:25,523 --> 00:40:26,591 We want winners. 1035 00:40:26,591 --> 00:40:28,426 It's a $500 million industry, though. 1036 00:40:28,426 --> 00:40:29,928 Yeah, yeah, but we can't get near -- 1037 00:40:29,928 --> 00:40:33,665 You're nowhere near a place to spin enough cash 1038 00:40:33,665 --> 00:40:38,369 so that every month I get my $25,000 in distributions. 1039 00:40:38,369 --> 00:40:39,470 It's a service business. 1040 00:40:39,470 --> 00:40:40,738 We're not gonna take it public. 1041 00:40:40,738 --> 00:40:44,575 It's gotta spin cash so that I can wet my beak. 1042 00:40:44,575 --> 00:40:46,511 You know, I don't want to ghost the money. 1043 00:40:46,511 --> 00:40:48,513 I give it to you and say, "Bye, money! Bye. 1044 00:40:48,513 --> 00:40:49,580 I'll never see you again." Right. 1045 00:40:49,580 --> 00:40:51,749 I'm sorry, guys. I'm out. 1046 00:40:51,749 --> 00:40:52,850 -Thank you. -Good luck, guys. 1047 00:40:52,850 --> 00:40:53,952 Cuban: Congrats on what you've accomplished. 1048 00:40:53,952 --> 00:40:55,553 All right, well, I think you guys missed out 1049 00:40:55,553 --> 00:40:57,422 on the next million-dollar tourism company. 1050 00:40:57,422 --> 00:40:58,623 For your sake, I hope you're right. 1051 00:40:58,623 --> 00:41:02,293 When you call us next time, it'll be $250,000 for 10%. 1052 00:41:02,293 --> 00:41:03,594 [ Laughter ] 1053 00:41:03,594 --> 00:41:05,396 -See you, Mike. Congratulations. -Thanks. 1054 00:41:05,396 --> 00:41:06,631 -Good luck, guys. -Good luck. 1055 00:41:06,631 --> 00:41:08,766 Jornlin: I don't feel disappointed at all. 1056 00:41:08,766 --> 00:41:10,601 Who in our line of work 1057 00:41:10,601 --> 00:41:12,603 doesn't want to feel what it feels like 1058 00:41:12,603 --> 00:41:14,839 to be torn apart by Sharks? 1059 00:41:14,839 --> 00:41:17,475 But like ghosts, we'll always come back. 1060 00:41:17,475 --> 00:41:18,443 [ Evil laughter ] 1061 00:41:18,443 --> 00:41:19,544 Now we can use this place 1062 00:41:19,544 --> 00:41:20,945 as a location on our haunted history tours, 1063 00:41:20,945 --> 00:41:25,283 because we're the victims of a true crime. 1064 00:41:25,283 --> 00:41:25,850 They had something. 1065 00:41:25,850 --> 00:41:28,486 They just asked for too much money. 1066 00:41:28,486 --> 00:41:29,587 $50,000 I would have given them. 1067 00:41:29,587 --> 00:41:30,922 I mean, they should have asked for $50,000, 1068 00:41:30,922 --> 00:41:32,690 'cause they would have been lucky to have you. 1069 00:41:32,690 --> 00:41:35,493 [ Growling ] 1070 00:41:35,493 --> 00:41:37,495 O'Leary: Is that Mindy from casting? 1071 00:41:37,495 --> 00:41:38,763 [ Laughter ] 1072 00:41:38,763 --> 00:41:40,732 Boy, she looks bad. 1073 00:41:40,732 --> 00:41:41,966 I think she looks better. 1074 00:41:41,966 --> 00:41:44,302 Every time there's a bad deal, this shows up. 1075 00:41:44,302 --> 00:41:45,536 Yeah, exactly. 1076 00:41:45,536 --> 00:41:46,938 She's upset we're not making more deals. 1077 00:41:46,938 --> 00:41:50,675 -You need a throat lozenge. -Oh, stop. Stop. 1078 00:41:50,675 --> 00:41:51,843 Blum: So bad! 1079 00:41:51,843 --> 00:41:53,678 O'Leary: What have I done to deserve this? 1080 00:41:53,678 --> 00:41:55,546 Don't look at me, baby. 1081 00:41:55,546 --> 00:41:58,049 -[ Growling ] -And that's lunch. 1082 00:42:10,061 --> 00:42:12,530 ...for a chance to win a video chat with a Shark, 1083 00:42:12,530 --> 00:42:13,564 "Shark Tank" gear, 1084 00:42:13,564 --> 00:42:14,899 or a visit to the "Shark Tank" set. 1085 00:42:14,899 --> 00:42:17,902 Go to ABC.com/sharktank for more details. 1086 00:42:17,902 --> 00:42:19,871 Winners will be contacted on Instagram. 1087 00:42:19,871 --> 00:42:21,606 We can only contact followers 1088 00:42:21,606 --> 00:42:24,142 of "Shark Tank"'s official Instagram. 1089 00:42:31,616 --> 00:42:40,358 ♪♪ 1090 00:42:40,358 --> 00:42:48,566 ♪♪ 1091 00:42:48,566 --> 00:42:57,275 ♪♪