VPcabs Shark Tank Pitch
Brad's company VPcabs is all about pinball machines. The machine he designed has multiple games that you know, by simply using the computer to change the machine. You feel like you are playing the actual game, and even shake the machine to simulate tilt.
VPcabs has the Sharks running for the machines. They started with an old pinball machine cabinet and put monitors in it, and next thing Brad knows he has an order for eight pinball machines.
In a year and a half, they have done $750,000 for 200 units. Machines run from $3,000 to $9,500. The $7,500 machine is their number one seller at 50% of the business.
The $7,500 machine costs $2,600 to build. They are making a net profit of $14,000 and gross profit of $76,000. They pay a software license fee of 15%.
The problem is if Brad Baker of VPcabs paid himself, the company is not profitable.
VPcabs Episode Data
- Company: VPCabs
- Entrepreneur: Brad Baker
- Ask: $200,000 for 10% equity
- Episode Season 7 Episode 728
- Companies in this episode:
- Camp NO Counselors
- EVP Extreme Vehicle Protection
- Gladiator LaCross
- VPCabs
- Misto box – Featured Update
- Sharks:
- First Aired: 05/13/2016
- Deal: Daymond John for $200,000 for 25%
What do the Shark Tank Investors say about VPcabs?
- Mark Cuban – sees a platform for gaming that is much more tactile then using a joy stick at home. He says he wants to be the first to change the game, and he thinks Brad is not, that's the problem. Mark wants to say yes, but he is struggling. Mark thinks he needs the technical expertise and for that reason he is out.
- Daymond John – says he is not as old as the other Sharks. He bought Donkey Kong and video games. Daymond is asking if he can take the expertise and go out and sell the product, while Daymond makes the product. He offers $200,000 for 30% equity. Brad counters at 20%, with Daymond coming back at 25%. They have a deal.
- Kevin O'Leary – has to bring reality to him. It is a break even business right now, and is not worth $2 million. He is out.
- Lori Greiner – thinks it is clever idea and it is great it helped him get out of a difficult position, but Lori doesn't see this scaling really big, because their are so many options. She is out.
- Robert Herjavec – has ten pinball machines that cost an average of $5,000 and Robert thinks he his pinball feels great. He sees the challenge with the business because he doesn't make the most vital component, the software. Robert doesn't think kids are going to buy it, but it is going to be guys like Robert. He doesn't share the vision, because it is a high-end vintage business, not a commercial business.
VPcabs after Shark Tank
Sales have skyrocketed to a million dollars after inking the deal with Daymond John, who went out and negotiated licensing and branding deals. They are pinball wizards! I want one.