GrooveBook Net Worth:-Julie and Brian came in asking for $150K for 20 percent of their business. What makes GrooveBook so cheap to ship is a “proprietary groove” that makes the books flexible, allowing for a lower shipping rate. The Sharks like the over 18,000 subscribers they have acquired in the past 8 months, but they don’t like the slim margins. Each GrooveBook costs $2.30, so they only make 69 cents per order.
Robert and Daymond worry about the commercial printing side of the business and both go out. Mark offers $150K to license GrooveBook to the Flikrs and Shutterfly of the world. Kevin offers to buy the whole business for $750,000, but the Whitemans feel the business is worth $6 million; Kevin then retracts his offer.
GrooveBook’s pitch took place in the thirteenth episode of the fifth season of Shark Tank, which aired on January 10, 2014. Cuban and O’Leary made a deal with the Whitemans for $150,000 for 80 percent of the licensing rights of GrooveBook.
The Whitemans walked in looking for $150,000 for 20 percent ownership of the entire operation. When the sharks asked how much it cost to make the book, they said it cost $2.30 to make and ship each book. That means that the profit is about $0.70 per book. Prior to the Shark Tank appearance, GrooveBook hit 18,000 subscribers over the course of eight months.
The Whitemans said that they invested $400,000 to launch the business, and they manufactured the books internally in a print shop. Brian Whiteman said that he developed proprietary software and specialized equipment, so going to a different printing company to build the products would be more expensive than their current operation.
Julie Whiteman’s cell phone was stolen, and with it, years and years of photographs were lost for all time. What made her feel even worse was that she and her husband, Brian, ran a printing company, and she could have easily printed out the “keepers” at any time she desired.
When Julie mistakenly lost photographs from her phone and could not recover them, she became the digital program she created. She said it was people close to her that she had photographed for the album. They must be conserved and appreciated in their original form for future generations. Based on this premise, Brian created an application.
The value of ALL businesses associated with the Shark Tank Show has dramatically increased overnight because of this successful GrooveBook deal. It’s a historic game-changer that no doubt will lead to even bigger and better deals when Wall Street realizes what Shutterfly has just accomplished. It’s “almost” as good as going into the Shark Tank themselves.
You just can’t buy this type of publicity for any amount of money. But if it’s a business seen on the Shark Tank Show, you’re “guaranteed” a huge amount of free ongoing publicity benefiting both companies.
Groovebook is a service for printing personalized photobooks. For a fairly low monthly subscription, you could get a photobook each month after picking 100 of your favorite photos and sending them via the app. To keep subscriptions and postage low, the inventors had to find a way to make the books flexible. That meant shipping costs could be kept low.
Mostly out of frustration, Brian Whiteman pounded on a photobook, creating a groove on the spine and realizing it transformed the booklet into a flexible unit. Hence the name!
The company’s concept was interesting enough, but the app and service had mixed reviews. On iTunes, for example, the app held just a 2.5-star rating, with customers complaining about its low-quality picture, paper quality, and technical issues with the app.
By joining Shutterfly, the smaller company will now have the resources of Shutterfly’s scale when it comes to photo printing, which may help get costs down even further and boost its previously slim margins.
Brian Whiteman and his wife, Julie Whiteman, founded GrooveBook, a service that prints up to 100 photos into a photo book or album. This program allows you to create graphically stunning picture books from your mobile phone’s images. You simply have to download the Groove application.
Brian’s photo album inspired Groovebook, which he created to cheer her up. Groovebook is a smartphone app that lets customers print up to 100 photos and receive a physical photo album in the mail for $2.99 a month, including shipping and handling. The technology built into the application will make millions of users able to cherish the memories they capture.
Congratulations to Groovebook and Shutterfly for completing this very successful deal. I can’t wait to see what Jeffery brings to the Shark Tank next year. To break even, GrooveBook needed to hit 30,000 subscribers. After the Shark Tank appearance, GrooveBook hit 500,000 paid subscribers. According to TechCrunch, GrooveBook now has over 1 million downloads and 200 million photo uploads.
A quote GrooveBook founder Brian hints that the company was not yet in the black. He said that by joining Shutterfly and “leveraging their technology platform, expansive manufacturing footprint, and expertise in quickly scaling brands, we will be able to scale GrooveBook operations and grow it into a profitable, nationally recognized brand.”