Courtesy of groovebook.com
1. An affordable way to print and publish your digital photos into cute, personalized photo albums.
2. For $2.99 a month, you can create a bound photo album out of 100 of your smart phone pictures, and have it shipped right to you.
3. Each photo is 4" x 6" and can be easily torn out of the Groovebook to share or frame.View more photo albums on Amazon.com →
WOW - this segment is a mini-feeding frenzy. And there are so many layers to it, that I had to watch it a couple of times to figure out all the twists and turns.
First of all, it's a great product at a great price. To get 100 printed photos every month at $2.99 a month is a steal. Unfortunately, that price is artificially low because Ben and Julie own their own industrial print shop. Their print shop business is intrinsically tied to the success of Groovebook. That's a big "con" for Robert and Daymond, who bow out pretty early.
Mark and Kevin really love the product, though, and both make offers. Mark's offer struck me as odd, though, because he wants to pay them in order to be the exclusive seller of "Groovebook as a service" and RE-sell it to other online photo services like Picassa, Shutterfly, etc. It seems like a strange offer because it makes Mark the "middleman" - and while middlemen make money, they don't make as much as everyone else.
Kevin's offer is to just buy the company outright at the $750,000 they valued it at when they walked into the Tank. In a shocking turn of events, Ben and Julie turn around and say that they believe their company is actually worth $6 million. This gets a BIG reaction.
Mark & Kevin move aside to discuss going in together, and that's when Lori jumps in, dragging Robert behind her, offering $325,000 for 50% of the company. (My head starts to spin at this point - and it's about to get worse.)
At this point, Daymond helpfully illustrates that what Mark and Kevin want to do is what Daniel Day-Lewis did in There Will Be Blood - he wants to drink their milkshake. Ben and Julie could end up losing business if they allow Mark and Kevin to resell one-off purchases to other companies instead of all traffic having to flow through their subscription service. However, his parable is wasted and the husband-and-wife team decide to go with Mark and Kevin.
Julie and Brian Whiteman