0:00:25 > 0:00:27'These are the Dragons.
0:00:27 > 0:00:31'Five of Britain's wealthiest and most enterprising business leaders.
0:00:31 > 0:00:38'Over the coming weeks, they'll make or break the dreams of dozens of budding entrepreneurs.'
0:00:40 > 0:00:45This is definitely in the top ten worst things that ever came in Dragons' Den. Maybe top five.
0:00:45 > 0:00:51I feel like you've got a shield up and you're deflecting the only answer I'm trying to get to.
0:00:51 > 0:00:55If you'd brought that piece of paper into the den, I would've personally invested.
0:00:55 > 0:01:01I know the other Dragons are going to think I've lost my marbles, but I'd like to make you an offer.
0:01:01 > 0:01:04Everybody has to leave the party with a balloon.
0:01:04 > 0:01:08And this was not a party that I would leave with a balloon.
0:01:11 > 0:01:15'The multi-millionaire investors have each built up their fortunes from scratch.
0:01:17 > 0:01:21'Hotel and health-club owner Duncan Bannatyne.
0:01:21 > 0:01:24'Leisure industry expert Deborah Meaden.
0:01:24 > 0:01:27'Retail magnate Theo Paphitis.
0:01:28 > 0:01:31'Telecoms giant Peter Jones.
0:01:31 > 0:01:36'And new Dragon Hilary Devey, who made her millions in the haulage industry.
0:01:36 > 0:01:42'The Dragons have the credentials, the contacts, the commitment and the cash ready to invest.
0:01:42 > 0:01:44'But only in the right business.
0:01:44 > 0:01:49'Will any of these hopeful entrepreneurs walk away with their money?'
0:02:00 > 0:02:02Welcome to the Dragons' Den.
0:02:02 > 0:02:05Entrepreneurs have applied in their thousands
0:02:05 > 0:02:07to face the multi-millionaire investors
0:02:07 > 0:02:11in the hope of securing an all-important cash injection
0:02:11 > 0:02:14for their business. The Dragons are notoriously ruthless
0:02:14 > 0:02:20and will only invest in the opportunities they believe will return a good profit.
0:02:20 > 0:02:22It's a tough arena for any entrepreneur
0:02:22 > 0:02:26but the potential rewards are life-changing.
0:02:26 > 0:02:32Former radio DJ Bob Davis is first up, keen to create a good first impression.
0:02:32 > 0:02:35Let's see if his tactics pay off.
0:02:46 > 0:02:52Hello, Dragons. My name's Bob Davis, managing director of Unique Ideas UK Ltd,
0:02:52 > 0:02:57and I'm here today to ask you for a £50,000 cash injection
0:02:57 > 0:03:00for a 20 percent share in a brand new company
0:03:00 > 0:03:05that will manufacture and market an interactive game challenge.
0:03:05 > 0:03:10Now, I've been in the event industry for just over 25 years.
0:03:10 > 0:03:15I've worked for many large companies and small and one thing that is apparent,
0:03:15 > 0:03:20in order to maintain their market share, they will have to do one of the following.
0:03:20 > 0:03:24That is to organise an exhibition, staff motivation,
0:03:24 > 0:03:27maybe a charity events to create PR, as well,
0:03:27 > 0:03:30and certainly just maybe a good old bash.
0:03:30 > 0:03:33This product clearly ticks all of the boxes.
0:03:33 > 0:03:39We have had many technical issues during its two-year development.
0:03:39 > 0:03:44Now, whilst I'm no physicist, I can say that the issues that we had,
0:03:44 > 0:03:47all of those have been overcome.
0:03:47 > 0:03:50We have noticed one very important thing.
0:03:50 > 0:03:53I cannot find any other company
0:03:53 > 0:03:58that is currently manufacturing, on a commercial basis, this product.
0:03:58 > 0:04:05So before we take the cover off, this really has so much potential, five revenue streams...
0:04:05 > 0:04:10- Bob, it better be good, that's all I've got to say. - HILARY: It sounds it, doesn't it?
0:04:10 > 0:04:12- It is good.- Get on with it.
0:04:14 > 0:04:18Dragons, are you ready for the alternative that everyone is waiting for?
0:04:26 > 0:04:28SHE LAUGHS Bob's Box.
0:04:28 > 0:04:31And I would welcome any questions
0:04:31 > 0:04:36- or I would like you to perhaps have a go and take the challenge. - Go on, Hilary.- I'll have a go.
0:04:39 > 0:04:42'Enthusiastic entrepreneur Bob Davis from Wolverhampton
0:04:42 > 0:04:46'has certainly given his pitch a sense of occasion.'
0:04:46 > 0:04:51- As you catch the balls, deposit them down the score tube.- OK.
0:04:51 > 0:04:57'He's looking for £50,000 to start a new events business to launch his latest entertainment concept.'
0:04:58 > 0:05:03- Good luck.- 'On offer is a 20 percent equity stake.'
0:05:12 > 0:05:16- Great fun!- 'But leisure industry expert Deborah Meaden
0:05:16 > 0:05:19'thinks she's seen it somewhere before.'
0:05:19 > 0:05:21- Hello, Bob. Hi.- Hello, Deborah.
0:05:21 > 0:05:27Erm, it's a very large bingo blower. Is there anything complicated in that?
0:05:27 > 0:05:31Yes, it's not dissimilar to the Bernoulli principle
0:05:31 > 0:05:34- that is part of what makes a... - The what principle?
0:05:34 > 0:05:38- The Bernoulli principle.- Go on, what's the Bernoulli principle?
0:05:38 > 0:05:42It's how an aircraft flies with lift and airflow going over.
0:05:42 > 0:05:45So it's built. How much money have you made so far?
0:05:45 > 0:05:51- We see taking this to market as a hire concept for... - OK, how much does it hire for?
0:05:51 > 0:05:55£600 a day. It's been used by a couple of exhibition companies,
0:05:55 > 0:05:58twice by two TV production companies.
0:05:58 > 0:06:03It's highly visual. We are ready to take it to market right now. That's where I need your help.
0:06:07 > 0:06:09'A spirited plea from the determined businessman.
0:06:09 > 0:06:14'But what of the financials? Hilary Devey wants to know.'
0:06:16 > 0:06:19Bob, why £600 a day?
0:06:20 > 0:06:26If you were organising an exhibition, you would pay £500 to £1,000
0:06:26 > 0:06:29depending on what attraction you had on your stand.
0:06:29 > 0:06:34This, at £600, fits into that market.
0:06:34 > 0:06:39I see. So there's no scientific machination that led you to think
0:06:39 > 0:06:43- you can gain £600 a day.- No, it's just in the current marketplace...
0:06:43 > 0:06:48Second question. Tell me a bit about yourself and your background.
0:06:48 > 0:06:54I'm the MD of an event company. I'm known in the event trade as the car showroom king.
0:06:54 > 0:07:00Whenever there's a car launch being facilitated, I'm an approved supplier for events.
0:07:00 > 0:07:04I also had the licence and agreement with Thomas The Tank Engine for 15 years.
0:07:04 > 0:07:08- The train, two carriages...- THEO: And did you make good money out of that?
0:07:08 > 0:07:12We used to charge £600 a day to hire it.
0:07:12 > 0:07:16- Everything £600.- Is everything £600 to hire for a day?
0:07:16 > 0:07:18THEY LAUGH
0:07:18 > 0:07:24Bob, tell me, tell me, tell me, is it your events business
0:07:24 > 0:07:29- or is it that?- It's to set up a brand new company
0:07:29 > 0:07:33that will market the game concept.
0:07:33 > 0:07:36But the early forerunners of this machine,
0:07:36 > 0:07:40which I have used in my corporate functions numerous times,
0:07:40 > 0:07:44I don't think this is any different.
0:07:47 > 0:07:50'The good-humoured atmosphere evaporates
0:07:50 > 0:07:54'as doubts are cast on the uniqueness of Bob's invention.
0:07:54 > 0:07:59'But Peter Jones is more concerned about the viability of the business itself.'
0:08:02 > 0:08:07The big thing that I have is the issue over this separation, actually.
0:08:07 > 0:08:11- Right.- Does your business have any debt in it? Do you make money?
0:08:11 > 0:08:13Erm, we lost a little bit of money last year,
0:08:13 > 0:08:17mainly due to the investment with this and I've built...
0:08:17 > 0:08:21You've put money from a company to make it loss-making into a new entity.
0:08:21 > 0:08:25You want to write off the debt in that old company to start a new company.
0:08:25 > 0:08:31Peter, I didn't see it that way, of writing off any old debt. I wanted to give this a springboard...
0:08:31 > 0:08:36But do you not think for one minute that perhaps if Unique Ideas have paid for all of this,
0:08:36 > 0:08:39that Unique Ideas is everything to do with it?
0:08:39 > 0:08:43How much would the new company have to pay back for what you've spent on this?
0:08:43 > 0:08:47Nothing at all. I want to put that into the box, into the hat to start with.
0:08:47 > 0:08:52OK. I'm going to be really quick. I'm a little disappointed in what you've just said
0:08:52 > 0:08:58and there's a little bit of naivety in you. Rent this out for £600 a day if you can.
0:08:58 > 0:09:02- But it's not an investable business and that's why I'm out. - OK. Thank you.
0:09:05 > 0:09:12'Bob's decision to create a new and separate company in a bid to attract investment backfires.
0:09:12 > 0:09:16'And now Deborah Meaden has made up her mind, too.'
0:09:18 > 0:09:22Bob, let me tell you where I am. I always say when I'm looking for an investment,
0:09:22 > 0:09:25I'm looking for a good product with a good person.
0:09:25 > 0:09:30Really, this is not a new product, it's not a new concept,
0:09:30 > 0:09:34so as lovely as you are, I won't be investing in you. I'm out.
0:09:34 > 0:09:39- Thank you. - Bob, if you really believe in this,
0:09:39 > 0:09:44you've already got one, go out and do it.
0:09:44 > 0:09:48So I'm going to wish you the real best of luck and I'll be watching out for you,
0:09:48 > 0:09:51- but I'm out.- Thank you, Theo.
0:09:55 > 0:10:01'Two more Dragons out and Bob's initial exuberance has dampened.
0:10:01 > 0:10:04'But Duncan Bannatyne has been unusually quiet.'
0:10:06 > 0:10:10Bob, I want to ask you a little bit about your existing company.
0:10:10 > 0:10:13- OK.- What kind of turnover and profit does that company make?
0:10:13 > 0:10:16The last two years have been its worst two years.
0:10:16 > 0:10:23- Right.- The turnover was £85,000 and £102,000.
0:10:23 > 0:10:28Two years before that, it was £340,000.
0:10:28 > 0:10:33So you've had this company and the turnover is going down and down and down. Why?
0:10:33 > 0:10:40Because the first thing that got cut when things were going a little bit quieter was events, promotions.
0:10:40 > 0:10:44- OK. How many companies are you involved with?- Just the one.
0:10:44 > 0:10:49- And all of a sudden, you want to form a second company, a new company?- Yes.
0:10:49 > 0:10:53So when you got the Thomas the Tank Engine contract,
0:10:53 > 0:10:55- did you form a new company for that? - No.
0:10:55 > 0:11:00So why not put that in your existing company and say,
0:11:00 > 0:11:03"I'll make some money from this as well as what we're doing already"?
0:11:03 > 0:11:08Erm, there is no real total objection to that.
0:11:08 > 0:11:11- I thought... - There's no sense in separating it.
0:11:11 > 0:11:15If I could have my time again and come up the stairs,
0:11:15 > 0:11:17knowing what I've heard now,
0:11:17 > 0:11:22if I'd have said to you, "This is a wonderful addition to my company..."
0:11:22 > 0:11:25Go to the stairs and come back and say that to me.
0:11:40 > 0:11:46Hello, Dragons, my name's Bob Davis and I'm here today to offer you a share in my company,
0:11:46 > 0:11:50which is currently very successful in its own marketplace,
0:11:50 > 0:11:56but we have a new product we want to launch. With your help in marketing, we can move this forward.
0:11:58 > 0:12:05'A much more confident Bob has eagerly grasped the lifeline thrown to him by Duncan Bannatyne.
0:12:05 > 0:12:10'Will the new combined business be a more valuable proposition for Hilary Devey?'
0:12:12 > 0:12:14Bob,
0:12:14 > 0:12:18- I could see that working at a corporate event.- Yes.
0:12:18 > 0:12:23I could see that bringing to my own business's corporate event.
0:12:23 > 0:12:28Have you done revenue projections on what £600 a day would give you?
0:12:28 > 0:12:32We see two revenue streams of hire.
0:12:32 > 0:12:37- Right.- Monday to Friday, this could go into any company for three days
0:12:37 > 0:12:42at £600 and we will retain £500 ourselves every time it goes out.
0:12:42 > 0:12:45- That's £1,500 a week.- Yep.
0:12:45 > 0:12:48Saturday and Sunday is retail environment, that's £1,000.
0:12:48 > 0:12:53So one box will make £2,500 a week.
0:12:53 > 0:12:57Times four weeks, that's £10,000.
0:13:06 > 0:13:10I know the other Dragons are going to think I've lost my marbles,
0:13:10 > 0:13:14but I loved being in the box, I like the concept of it.
0:13:16 > 0:13:21I'm actually not just in logistics, but I'm also in the event industry.
0:13:21 > 0:13:24So I'd like to make you an offer.
0:13:24 > 0:13:3250K for 20 percent of your new product and of Unique Ideas, initially.
0:13:32 > 0:13:37Once this product's launched and we're getting a return on it,
0:13:37 > 0:13:41then I will reduce my equity stake to 15 percent.
0:13:42 > 0:13:45Thank you.
0:13:46 > 0:13:49'In a dramatic about-turn in fortunes,
0:13:49 > 0:13:53'Bob finally gets an offer from an enthusiastic Hilary Devey.
0:13:53 > 0:13:57'Will Duncan Bannatyne now choose to compete?'
0:14:00 > 0:14:03Bob, erm,
0:14:03 > 0:14:07I really wish that I could find a reason to invest in you.
0:14:09 > 0:14:13You've got a fantastic offer. I can't beat the offer Hilary's made, anyway.
0:14:15 > 0:14:19- I've got to say, I'm sorry, Bob, but I'm out.- OK, thank you, Duncan.
0:14:23 > 0:14:27- Hilary... - I look forward to working with you.
0:14:27 > 0:14:30- APPLAUSE - 'Bob's done it.
0:14:30 > 0:14:34- Yes!- 'Not many get a second chance in the den,
0:14:34 > 0:14:38'but he walks away with a well-connected new Dragon investor on board.'
0:14:41 > 0:14:45So, Bob, I don't think I need to ask you whether you're happy with the offer you've got.
0:14:45 > 0:14:49- I assume you are.- I feel like I'm about to take the world on.
0:14:49 > 0:14:52- Were you happy, in the end, to combine the two companies? - Very happy.
0:14:52 > 0:14:56There are products as well as Bob's Box that can be moved along
0:14:56 > 0:15:01- with the logistics and the background that Hilary has. - Very well done.- Thank you.
0:15:08 > 0:15:14'Entrepreneurs entering the den will often try and lure a Dragon with talk of large profits.
0:15:14 > 0:15:19'But they must be realistic. Camilla Shaughnessy from Oxfordshire predicted a very rosy future
0:15:19 > 0:15:26'for them all if she received £240,000 for her upmarket online accommodation agency.'
0:15:27 > 0:15:33We specialise in providing privately-owned accommodation in and around events,
0:15:33 > 0:15:37events being any of the large events that we know and love in the UK.
0:15:37 > 0:15:42If people want to list their properties with us, we take 15 percent of the booking fee.
0:15:44 > 0:15:48'At first, she and the Dragons seemed to have quite a lot in common.'
0:15:48 > 0:15:52- So this started from you deciding to rent out your house, is that right? - Yes.
0:15:52 > 0:15:55We live in a fabulous home and then we have a summer house
0:15:55 > 0:15:59and then we have a pool and we have a bit of land with it
0:15:59 > 0:16:01and it's just a nice weekend retreat.
0:16:01 > 0:16:07'But it was discussion around her forecasted figures that meant separation was inevitable.'
0:16:07 > 0:16:12- For the first financial year, it's going to be how much? - We've had about six bookings.
0:16:12 > 0:16:17£239,000 loss. The following calendar year, we're looking to make
0:16:17 > 0:16:22- £938,000.- I don't understand. You take 15 percent commission.
0:16:22 > 0:16:25Is your £938,000 turnover?
0:16:25 > 0:16:30- That's what we make in managed booking fees. - You've got six bookings today?- Yes.
0:16:30 > 0:16:34- And next year, you're going to turn over £15 million worth of bookings? - Yes.
0:16:34 > 0:16:40'Duncan Bannatyne did spring to Camilla's defence on one point.'
0:16:40 > 0:16:45I think if you turn over £15 million and you get 15 percent, it's a lot more than £986,000.
0:16:45 > 0:16:49- I think your turnover's going to be £7 million.- Oh, sorry. You're right.
0:16:49 > 0:16:54- Any more questions on numbers just come to me.- Duncan's right, but I'll still say it again.
0:16:54 > 0:16:58You've got six bookings today
0:16:58 > 0:17:05- and next year, you're going to book £7 million worth of tariff.- Yes.
0:17:07 > 0:17:10'In the end, Peter Jones summed up the mood in the den.'
0:17:10 > 0:17:14To scale a business like that...
0:17:16 > 0:17:19..you're going to need a lot more than £240,000.
0:17:21 > 0:17:26- You're going to need millions. So that's why I'm out.- Thank you.
0:17:31 > 0:17:34Next in the den is former car dealer Fraser Allen
0:17:34 > 0:17:37who thinks he has the perfect answer to a stress-free holiday.
0:17:37 > 0:17:41But he's only offering five percent equity in his business,
0:17:41 > 0:17:46which doesn't sound like the perfect answer to a stress-free negotiation with the Dragons.
0:18:02 > 0:18:05Hello. My name's Fraser Allen.
0:18:05 > 0:18:08I'm looking for investment of £150,000
0:18:08 > 0:18:12for a five percent equity stake in My Sea Safe.
0:18:12 > 0:18:14I'd like you to picture the scene.
0:18:14 > 0:18:17You're on holiday, relaxing on a sun lounger.
0:18:17 > 0:18:21You want to go for a swim. Everyone has the same old problem.
0:18:21 > 0:18:24What do you do with your valuables? Put them in your shoe?
0:18:24 > 0:18:28In your sock? Under the towel? Hide them in the sand? We've all done it.
0:18:28 > 0:18:31These items can now be securely stored in My Sea Safe.
0:18:31 > 0:18:34It's a brand new, unique product that attaches to sun loungers
0:18:34 > 0:18:39to deter the opportunist thief from stealing your valuables.
0:18:39 > 0:18:42I work for a property and investment company based in London
0:18:42 > 0:18:47and I've had absolutely no experience in the hospitality or leisure industry.
0:18:47 > 0:18:52After doing some research, we decided to attend two exhibitions in New York and Las Vegas.
0:18:52 > 0:18:55This gave us the opportunity to meet on a one-to-one basis
0:18:55 > 0:18:58hotel buyers and procurement officers.
0:18:58 > 0:19:03The response we got was amazing. The majority of people said they'd never seen anything like it
0:19:03 > 0:19:07and it was something they could definitely use within their hotels.
0:19:09 > 0:19:11Sorry. Erm...
0:19:11 > 0:19:16With your investment, we're hoping to move forward into full production
0:19:16 > 0:19:22to buy the additional tooling whilst also helping us with our marketing and our advertising campaign.
0:19:22 > 0:19:27We're also hoping you can help us with the logistics and the distribution that we require.
0:19:27 > 0:19:32That's it. If there's any questions or comments, I'd be pleased to try and answer them.
0:19:36 > 0:19:41'A business-like if nervy pitch from property developer Fraser Allen.
0:19:41 > 0:19:46'In exchange for just five percent equity, he needs £150,00
0:19:46 > 0:19:50'to launch his detachable safe for sun loungers.
0:19:50 > 0:19:55'Peter Jones is eager to start questioning the London-based entrepreneur.'
0:19:57 > 0:20:03- Fraser, my first question, what do you think it will be? - Can you get into it?
0:20:03 > 0:20:07- No.- OK.- You asked for £150,000...
0:20:07 > 0:20:11- For five percent, correct. - So £3 million you value this product at.
0:20:11 > 0:20:15We actually value it more than that, Peter. THEO LAUGHS
0:20:15 > 0:20:19- You clearly have, I'm assuming, sold a lot, then. - No, we haven't sold any.
0:20:22 > 0:20:25How many do you think, then, you need to sell
0:20:25 > 0:20:27to make your company worth £3 million?
0:20:27 > 0:20:32We projected that we'd sell 150,000 units in the first year.
0:20:32 > 0:20:34- What's the price on each product? - 30 US.
0:20:34 > 0:20:37And they cost us about 10 US to make
0:20:37 > 0:20:42- So you're making 20 US. - Approximately per unit.
0:20:43 > 0:20:48That's 3 million US gross.
0:20:50 > 0:20:53DUNCAN: Amazing money.
0:20:53 > 0:20:58I should be a billionaire. I should have Fraser in my buying department,
0:20:58 > 0:21:02in my inventing department. Anywhere. I've been doing it all wrong.
0:21:05 > 0:21:10'An awkward first exchange as Fraser is met with a sceptical response.
0:21:10 > 0:21:14'Will he fare any better under the scrutiny of Deborah Meaden?'
0:21:15 > 0:21:18- Fraser, hello.- Hi, Deborah.
0:21:18 > 0:21:21The valuation, I have to tell you,
0:21:21 > 0:21:26to come in and ask for £150,000 for five percent...
0:21:26 > 0:21:29Actually, that could make us all sit up and listen
0:21:29 > 0:21:32because things like that happen in the den
0:21:32 > 0:21:35and usually it's followed by this amazing thing
0:21:35 > 0:21:39that is going to change the world but is very early stage,
0:21:39 > 0:21:44- or is further down the line but has track record behind it.- Right.
0:21:44 > 0:21:49- Which bit does that fit into? - It doesn't fit into either of those categories.
0:21:50 > 0:21:54- So what are you in here for? - One thing was the investment
0:21:54 > 0:21:59- and the other thing was the knowledge and expertise of getting... - Right, Fraser.
0:22:00 > 0:22:04You value our knowledge and our experience so much
0:22:04 > 0:22:09that you're going to offer us five percent of your company
0:22:09 > 0:22:14if we'll pay you £150,000, all of the cash that it's going to take to finish this product,
0:22:14 > 0:22:18and then give you our experience and our contacts
0:22:18 > 0:22:22to turn this into a business that actually works?
0:22:22 > 0:22:27I understand what you're saying, but you've got to remember, we do believe in the product.
0:22:27 > 0:22:32- You're asking me for investment. - Yes.- You're asking me to put in £150,000.
0:22:32 > 0:22:34- Yep.- You're asking me to put in my expertise.
0:22:34 > 0:22:40Do you think that is a really good way for me to spend my £150,000
0:22:40 > 0:22:43- and my time for five percent? - Yeah, but...
0:22:43 > 0:22:45I started off with a figure that we believed in.
0:22:45 > 0:22:50- And I know you laughed... - Fraser, I won't be investing, so I'm out.- OK. Thank you.
0:22:52 > 0:22:59'An irritated Deborah Meaden refuses to do business with the self-assured entrepreneur.
0:22:59 > 0:23:02'Theo Paphitis tries a different tack.'
0:23:04 > 0:23:07- How much money have you put in this? - About £140,000.
0:23:07 > 0:23:10- Whose money? - Our property company's money.
0:23:10 > 0:23:13You've got a very rich property company.
0:23:13 > 0:23:16Well, it's something that we believed in, Theo, to be honest.
0:23:16 > 0:23:20- What's your business called? - Trademark Group.- Who owns Trademark?
0:23:20 > 0:23:25Terry McMillan, who's in partnership with me in My Sea Safe.
0:23:25 > 0:23:28OK. My view is...
0:23:29 > 0:23:32This has got to be a bet.
0:23:32 > 0:23:35Somebody in your organisation said,
0:23:35 > 0:23:38"Why don't you go pitch them something stupid
0:23:38 > 0:23:41"at three million quid in valuation
0:23:41 > 0:23:45"and let's see if you can turn it".
0:23:45 > 0:23:50OK, I understand what you're saying, but our company accountant went through the figures with us.
0:23:50 > 0:23:55We did research going round the world, meeting hoteliers, procurement officers,
0:23:55 > 0:23:57so we thought there was a market for it.
0:23:57 > 0:23:59And I appreciate what you guys are saying,
0:23:59 > 0:24:04but to us, when we actually met the people who buy the products, they told us there was.
0:24:07 > 0:24:13'Fraser is keeping a remarkably cool head under mounting pressure in the den.
0:24:13 > 0:24:18'Now Duncan Bannatyne wants to focus on the product itself.'
0:24:18 > 0:24:20Let me just ask you a question.
0:24:20 > 0:24:25You said, "Imagine you're on a beach" and I assume it's a crowded beach.
0:24:25 > 0:24:28- Imagine you're a professional thief. - OK.
0:24:28 > 0:24:30You're looking round a beach and you think,
0:24:30 > 0:24:34- "Which sun bed will have the most money?"- OK.
0:24:34 > 0:24:38- Oh, there's one where that blue thing's padlocked onto it.- Mm-hm.
0:24:38 > 0:24:41I could leap on the beach, cut that off...
0:24:41 > 0:24:46- How would you cut it off? - Well, I would have something with me if I was a professional thief.
0:24:46 > 0:24:51- I think the product doesn't work. - OK.- I don't think it'd safeguard your valuables.
0:24:51 > 0:24:56- OK.- But the main thing I'm thinking is that this is definitely in the top ten
0:24:56 > 0:25:01- worst things that ever came in Dragons' Den. - Well...- Fraser, listen to me.
0:25:01 > 0:25:05It's definitely in the top ten. Maybe even top five. We could have a vote on that.
0:25:05 > 0:25:08- You're certainly the top ten.- OK.
0:25:08 > 0:25:10It's not worth £3, let alone £3 million, and I'm out.
0:25:10 > 0:25:15OK. I hope to prove you wrong at some stage, but I can appreciate what you're saying.
0:25:16 > 0:25:22Fraser, what you had is an employer that had a few bob to chuck away
0:25:22 > 0:25:27and he said, "I know what we'll do. Fraser seems like a good guy. Let him run with the project."
0:25:27 > 0:25:30I hope it's not like that, Hilary, and I don't believe it is.
0:25:30 > 0:25:34- Is he prepared to put any more money into it?- Oh, yeah, he will do.
0:25:34 > 0:25:38- Then what are you doing here? - Because we believe in the product.
0:25:38 > 0:25:40If you believe in the product, walk down them stairs
0:25:40 > 0:25:46- and say, "We've had it, mate. We need to find another 150 grand and quick."- OK.
0:25:46 > 0:25:51- Cos, Fraser, you seem like a really nice bloke, but I'm out.- OK.
0:25:54 > 0:25:57'Fraser loses his third Dragon
0:25:57 > 0:25:59'and the tension is starting to show.
0:25:59 > 0:26:04'Will Peter Jones throw him the financial lifeline he badly needs.'
0:26:08 > 0:26:11- You're taking a lot of hits here. - Yeah, just a bit.
0:26:11 > 0:26:14And I think you're withholding them well.
0:26:14 > 0:26:18- The mistake is this valuation, and I think that should've been thought about.- OK.
0:26:18 > 0:26:22You needed to come in with something of substance that would actually have said,
0:26:22 > 0:26:26"I tell you what, I've got now this product, it's in prototype
0:26:26 > 0:26:30"and that's the reason why I'm asking you for £150,000 cos I've run out of cash,
0:26:30 > 0:26:33"I can't afford to buy these products and get it to market."
0:26:33 > 0:26:36Because you haven't,
0:26:36 > 0:26:39you've not made the right impression.
0:26:40 > 0:26:43And that's the reason why I personally am not going to invest.
0:26:43 > 0:26:46- So that's why I'm going to say I'm out.- OK.
0:26:47 > 0:26:52That just leaves me, I'm your last hope, Fraser.
0:26:52 > 0:26:58Erm, when you deal with people, it's about having winners. Everybody has to leave the party with a balloon.
0:26:58 > 0:27:02- If one person doesn't leave with a balloon...- They're upset. - ..they're upset.
0:27:02 > 0:27:06And this was not a party that I would leave with a balloon.
0:27:07 > 0:27:11Without even going through the product, you automatically lost me.
0:27:11 > 0:27:14- OK.- So, Fraser, I'm out.
0:27:14 > 0:27:16OK.
0:27:21 > 0:27:27'Pitching such a small percentage of your business can rile even the most generous-spirited of Dragons.
0:27:27 > 0:27:32'Once he had done that, Fraser faced an uphill struggle. He leaves with nothing.'
0:27:33 > 0:27:38The valuation that we put on our product I thought was a very reasonable figure.
0:27:38 > 0:27:41They didn't and it was very difficult after that to get them back.
0:27:41 > 0:27:46It's been my little baby now for two years. I'm going to fight my corner cos I believe in it.
0:27:50 > 0:27:53'Many fledgling entrepreneurs who walk up those stairs
0:27:53 > 0:27:57'have invented a solution to an everyday problem in their own lives.
0:27:57 > 0:28:01'That was true of Surrey-based Sampson Dukabyagbena
0:28:01 > 0:28:08'who asked for a £190,000 investment in his handheld steam-controlled shaving aid.'
0:28:09 > 0:28:12I have sensitive skin and come up in rashes.
0:28:12 > 0:28:15One out of four white males and two out of three black males
0:28:15 > 0:28:17come out with one form of shaving discomfort,
0:28:17 > 0:28:22and that could be anything from shaving rash, in-growing hair and razor burn.
0:28:22 > 0:28:26'At first, there was a jovial atmosphere in the den.'
0:28:26 > 0:28:30- What does it feel like, Duncan? And can you see? - It feels like you put the kettle on
0:28:30 > 0:28:34and the kettle's boiling and you're standing over it.
0:28:34 > 0:28:39'But as usual, it wasn't long before the Dragons brought it back to business.'
0:28:39 > 0:28:45- You said one in four men suffer from skin irritation after they shave? - Yes.
0:28:45 > 0:28:50So how many of those can't solve the problem by putting some aftershave cream on their face?
0:28:50 > 0:28:52I don't look at it that way, actually.
0:28:52 > 0:28:55No. I look at things in a way that makes money...
0:28:55 > 0:29:01- True.- ..that makes profit, that's a business that's realistic. That's the way you should be looking at it.
0:29:01 > 0:29:05'Sampson did succeed in uniting the rival investors
0:29:05 > 0:29:08'but sadly not in gaining their investment.'
0:29:08 > 0:29:13You're dealing with a subject that is incredibly close to most men's hearts.
0:29:13 > 0:29:17- Yes, it is. - You're not going to crack it using technology that already exists.
0:29:17 > 0:29:22That's not a product that's going to make you a fortune.
0:29:22 > 0:29:27It's as quick just to boil a kettle. You've got a bowl, boil a kettle, pour that in
0:29:27 > 0:29:31and just put your head over the top of that. That costs you nothing.
0:29:31 > 0:29:34There's a lot of hassle in filling that with water,
0:29:34 > 0:29:37plugging it in for three minutes and sticking it on your face.
0:29:37 > 0:29:42It honestly is a complete and utter waste of time. Forget it.
0:29:42 > 0:29:47- Drop it and go and do something else with your life. I'm out.- Thank you.
0:29:49 > 0:29:54'So far in the den, only one entrepreneur has convinced a Dragon to invest.'
0:29:54 > 0:29:57- Hilary... - I look forward to working with you.
0:29:57 > 0:30:01'If you want to find out why Hilary Devey chose to back Bob and his new box...'
0:30:01 > 0:30:05- Yes!- '..you can press the red button at the end of the programme.'
0:30:08 > 0:30:13The Dragons sit through scores of pitches from entrepreneurs each year.
0:30:13 > 0:30:15So it's important to make yours stand out.
0:30:15 > 0:30:21Next into the den is Marcela Flores Newburn, originally from Monterrey in Mexico,
0:30:21 > 0:30:26who thinks her business has real potential, as well as an eye-catching presentation.
0:30:55 > 0:30:59Hola! My name is Marcela. I'm the founder of Rico Mexican Kitchen
0:30:59 > 0:31:05and today I've got for you some delicious food to try. So let's get some Mexican flavours going.
0:31:05 > 0:31:09THEY PLAY MEXICAN MUSIC
0:31:09 > 0:31:13# Full of flavours dipped in Aztec history
0:31:13 > 0:31:16# The food of my native Mexico
0:31:16 > 0:31:21# Taste of sunshine and mountains and seas
0:31:21 > 0:31:25# Taste of salsas and juices and beans
0:31:25 > 0:31:27# Come and taste some salsas with me
0:31:28 > 0:31:31# Marcela's Mexican Kitchen, the tamale queen
0:31:31 > 0:31:36ALL: # Marcela's Mexican Kitchen, the tamale queen
0:31:38 > 0:31:44Did you know that the Mexican food market was worth 250 million last year,
0:31:44 > 0:31:47and is growing at a rate of ten percent per annum?
0:31:47 > 0:31:52During the last two years, I have developed an award-winning range
0:31:52 > 0:31:56that has been inspired in my childhood in sunny Mexico.
0:31:56 > 0:31:58Zingy, tangy salsa verde,
0:31:58 > 0:32:01salsa roja, beans,
0:32:01 > 0:32:05and to accompany that, a range of agua fresca juices,
0:32:05 > 0:32:08and, my favourite, tamales.
0:32:08 > 0:32:12It's been going in Mexico for 4,000 years and in Latin America.
0:32:12 > 0:32:17Completely new concept in the UK, and adored in the US, as well.
0:32:17 > 0:32:23So, I'm offering you on a plate a 20 percent slice of my business
0:32:23 > 0:32:26for an investment of £75,000,
0:32:26 > 0:32:30to establish the brand and grow my business.
0:32:30 > 0:32:34Thank you for listening. Gracias, Mariachi Mexteca.
0:32:34 > 0:32:38- Adios!- I welcome your questions. - Can we try some of your food?- Yes.
0:32:42 > 0:32:47'A vivacious pitch that garners a positive reaction from the Dragons.
0:32:47 > 0:32:52'Marcela Flores Newburn, accompanied by her Mariachi band,
0:32:52 > 0:32:58'have asked for £75,000 to turn her range of Mexican dips, drinks and snacks into a household name.'
0:33:00 > 0:33:04- There you go, sir.- Is it chicken? - Mild salsa, salsa verde or extra hot.
0:33:04 > 0:33:10'Having sampled her fare, Hilary Devey brings the den back to business.'
0:33:11 > 0:33:17- Marcela.- Yes, Hilary? - Tell me about yourself, your journey, how you started.
0:33:17 > 0:33:22Er, well, before I started the business, I've been a teacher,
0:33:22 > 0:33:26and I also, er, studied music,
0:33:26 > 0:33:30and I decided that it was about time
0:33:30 > 0:33:35that we brought some real, authentic Mexican food into the UK.
0:33:35 > 0:33:38And then I started knocking on doors
0:33:38 > 0:33:44and Harrods and Selfridges started stocking my products very early on, erm...
0:33:44 > 0:33:47- And how long have you been trading? - Two and a half years.
0:33:47 > 0:33:52- So you've filed some accounts already?- Yes. - What did those accounts say?
0:33:52 > 0:33:56So far, I have sold £50,000.
0:33:56 > 0:34:01- Yeah. - And my projection this year is 370.
0:34:04 > 0:34:08'A confident start and some ambitious projections.
0:34:08 > 0:34:13'Duncan Bannatyne is next to cross-examine the likeable entrepreneur.'
0:34:15 > 0:34:22What makes you think you're going to jump from £50,000 per year to £370,000?
0:34:22 > 0:34:28- What's going to cause that? - Well, er, recently we have secured two new distributors
0:34:28 > 0:34:31and we have secured a launch with Waitrose, as well.
0:34:31 > 0:34:34OK. So tell me about the launch.
0:34:34 > 0:34:39It's about the fresh juices
0:34:39 > 0:34:42- and it's 100 stores.- When does your product go in those stores?
0:34:42 > 0:34:47- In end of this summer.- What's so special about your juices, Marcela?
0:34:47 > 0:34:52The pineapple lemon chilli, there's nothing currently available in the market.
0:34:52 > 0:35:00The mango, lime and chilli, as well. And hibiscus is good for certain cardiovascular illnesses.
0:35:00 > 0:35:02And you'll just put them on the shelves?
0:35:02 > 0:35:07- Are you putting some promotion behind it? Have you got advertising? - We are discussing that.
0:35:07 > 0:35:13I have an advisor that I met in January and he's an expert in growth
0:35:13 > 0:35:16and he has developed companies from scratch
0:35:16 > 0:35:20and he's got a really strong background in fresh foods.
0:35:20 > 0:35:24- Is he here today?- Yes. - Did you want to bring him up?- Yes.
0:35:27 > 0:35:31'Marcela's impressive expansion plans go down well in the den.
0:35:31 > 0:35:35'Will the recruitment of an experienced retail expert
0:35:35 > 0:35:38'help convince the Dragons to invest?'
0:35:40 > 0:35:44- Hello.- Hi.- Who are you? - My name's Tim Sutton.
0:35:44 > 0:35:49OK. Tim, you've got the product listed in Waitrose now.
0:35:49 > 0:35:53There doesn't seem to be a marketing plan. It's just going on the shelves, right?
0:35:53 > 0:35:58Er, no, we've got a meeting to go and talk through with the buyer the marketing plan.
0:35:58 > 0:36:03Packaging will be key, as it always is. Because people make decisions in the store.
0:36:03 > 0:36:09And then Marcela has some ideas and plans on promotional activity.
0:36:09 > 0:36:12OK. Erm, last question from me.
0:36:12 > 0:36:17- Have you got any product in Waitrose today?- Not currently, no. Not yet.
0:36:17 > 0:36:20Have you got any product in Selfridges today?
0:36:20 > 0:36:25- Yes.- What have you got? - I've got the five salsas. - How have they been selling?
0:36:25 > 0:36:30- We sell around 100 a month. - So, just over three a day?- Yes.- OK.
0:36:30 > 0:36:34- My best customer is Whole Foods Market.- What do they sell for you?
0:36:34 > 0:36:39They sell the five salsas and the tamales.
0:36:39 > 0:36:41And what's their rate of sale?
0:36:41 > 0:36:48- We sell around a thousand products a month.- So there's nothing of any great volume at the moment?
0:36:48 > 0:36:52No. But I knew that I wanted to create a range of products
0:36:52 > 0:36:55and so I started with salsas at home,
0:36:55 > 0:36:58and now that we are where we are,
0:36:58 > 0:37:00the volume starts to kick in.
0:37:04 > 0:37:09'Marcela's range may be sizeable, but her sales are still small.
0:37:09 > 0:37:13'Will Peter Jones see a promising future for her food business?'
0:37:17 > 0:37:22- Tim, Marcela, hi, I'm Peter. - Hi, Peter.- Do you think Rico as a brand name is a good name?
0:37:24 > 0:37:27Erm, rico means taste in Spanish.
0:37:27 > 0:37:31My kids named it because they think their mum's cooking is very rico.
0:37:31 > 0:37:36- I'm thinking of anything else but Mexican when I think of Rico.- Mm-hm.
0:37:36 > 0:37:39If you think about Old El Paso,
0:37:39 > 0:37:42I'm not suggesting the brand is but a name, but actually,
0:37:42 > 0:37:47- it completely summarises the whole of that product range, doesn't it? - Yeah, mm-hm.
0:37:47 > 0:37:52One of the things Marcela wants to invest the money in is actually refreshing the design.
0:37:52 > 0:37:55The brand is all about Marcela.
0:37:55 > 0:37:58She's an authentic, enthusiastic ambassador for Mexican food.
0:37:58 > 0:38:03- And seen by the retailers... - Tim, it's not called Marcela's Mexican Kitchen.
0:38:03 > 0:38:08That's what we want to look at rebranding it as.
0:38:08 > 0:38:11It's got to be early days in the business when you don't know what the brand is.
0:38:11 > 0:38:15No, well, currently it's Rico Mexican Kitchen and it's...
0:38:15 > 0:38:20- But it's not working.- Well...- Cos you're talking about changing it.
0:38:20 > 0:38:22I'm not saying it's not working,
0:38:22 > 0:38:27I say that, through this time, I have learned that it can be improved.
0:38:27 > 0:38:32Er, Marcela, I'm not going to invest my money at this time, so I'm out.
0:38:36 > 0:38:41'An unconvinced Duncan Bannatyne walks away from the deal.
0:38:41 > 0:38:45'And marketing expert Deborah Meaden is now ready to have her say.'
0:38:48 > 0:38:50Marcela, Tim.
0:38:52 > 0:38:57I tell you where I think you are. I think the product's good, I like all of those things.
0:38:58 > 0:39:05There's a but. I think there's quite a big step between doing what you're doing at the moment
0:39:05 > 0:39:08and taking it into the big supermarkets.
0:39:08 > 0:39:12If I were you, I would concentrate on selling more
0:39:12 > 0:39:18to the more individual stores until you get yourself a little bit more branded.
0:39:18 > 0:39:21So I'm afraid, for that reason, I'm out.
0:39:23 > 0:39:27Marcela, you've got drinks, salsas,
0:39:27 > 0:39:31and then you're making a jump
0:39:31 > 0:39:36to cooked foods and snacks, which is another market altogether.
0:39:38 > 0:39:44You're working in a very specific, specialist area with one particular retailer that suits you,
0:39:44 > 0:39:47and can cope with you, more importantly.
0:39:47 > 0:39:51And if I was you I would concentrate on one good product,
0:39:51 > 0:39:56but also, you would need a lot more than £75,000.
0:39:57 > 0:40:01I can't invest in it as it is at the moment, I'm sorry. So I'm out.
0:40:04 > 0:40:06Marcela. Erm...
0:40:07 > 0:40:12I think your 75K, I think you can multiply that by ten
0:40:12 > 0:40:15and you might just about get there.
0:40:15 > 0:40:21Well, this is, you know, to get us to the next level, which is...
0:40:21 > 0:40:23But then what happens in three months,
0:40:23 > 0:40:29when we come to next season and you say, "Well, I now need another 75K"? You know, where are we then?
0:40:31 > 0:40:35- So, I'm sorry, I've got to say, I'm out.- OK, thanks.
0:40:38 > 0:40:40'Three more Dragons out,
0:40:40 > 0:40:44'but Peter Jones has experience in this sector.'
0:40:46 > 0:40:49Marcela and Tim. When you walked in, all the band playing,
0:40:49 > 0:40:52I was thinking, "I wonder if this is the next Levi Roots?"
0:40:55 > 0:41:01I think you've done really well to get to the stage of where you're at.
0:41:01 > 0:41:02I do like it.
0:41:05 > 0:41:10I actually think you've got to go back as a start-up again.
0:41:10 > 0:41:13Because you need that brand.
0:41:13 > 0:41:17So I would go back to your roots and find that name.
0:41:19 > 0:41:21I hope that today has been a good learning curve.
0:41:21 > 0:41:25- On that basis, I'm not going to invest, and I'm going to say I'm out.- OK.
0:41:25 > 0:41:28- Good luck, guys. - Good luck, Marcela. Well done, Tim.
0:41:30 > 0:41:35'After a promising start, Marcela and Tim failed to convince the Dragons
0:41:35 > 0:41:40'that their range has enough financial promise. They leave with nothing.
0:41:45 > 0:41:49'Other entrepreneurs who tried and failed in the den
0:41:49 > 0:41:55'included Cornwall-based inventor Chris O'Connell who was looking for £75,000
0:41:55 > 0:41:59'to launch his artificial ski-matting business.'
0:41:59 > 0:42:02Pro Slope is a new, synthetic, snow-sports material.
0:42:02 > 0:42:06It has the holes filled in so there's no breakages of thumbs and fingers
0:42:06 > 0:42:09traditionally associated with dry slopes.
0:42:09 > 0:42:14'Former British snow-tour champion Samantha Rogers demonstrated the product...
0:42:16 > 0:42:20'...before Chris demonstrated its market potential.'
0:42:20 > 0:42:26- If we take the leading player in the market...- Yeah?- What was their annualised turnover last year?
0:42:26 > 0:42:32They just completed a job in the US which was valued at 7.7 million.
0:42:32 > 0:42:37'But Chris couldn't demonstrate proof of a need for his new invention.'
0:42:37 > 0:42:42How big is this issue about falling over and breaking your fingers or hurting yourself?
0:42:42 > 0:42:46- I can only go on anecdotal evidence because...- OK. Stop there, cos...
0:42:46 > 0:42:49- SHE LAUGHS That means nothing. - ..that's not evidence.
0:42:49 > 0:42:56So when do you think you are going to have the statistical information that says, "This is suitable..."
0:42:56 > 0:42:58Probably within three months.
0:42:58 > 0:43:04As much as I like the idea, until you get that information, you're not going to be able to sell this.
0:43:04 > 0:43:09And as an investor, I'm not going to invest in it. I'm out.
0:43:11 > 0:43:15'Tyneside-based mother and daughter Shirley and Hayley Smith
0:43:15 > 0:43:20'wanted £50,000 to expand their local ceramics cafe.'
0:43:20 > 0:43:23Customers come into our cafe, choose a piece of pottery
0:43:23 > 0:43:27from the 600 pieces that we have, paint and enjoy a pancake.
0:43:27 > 0:43:33- 'The Dragons were impressed by the detail of their handiwork...' - I've got stripy socks.
0:43:34 > 0:43:38'..but not by the detail of their business.'
0:43:38 > 0:43:41- So it's a shop and a cafe.- Yep.
0:43:41 > 0:43:44We also have developed a pottery by post package
0:43:44 > 0:43:49and we've just secured a contract with Collectables to supply plates and mugs.
0:43:49 > 0:43:54And I've got a few flats that I rent. And also, we own the building. It's also the flat upstairs.
0:43:54 > 0:43:59- Who lives there?- A lady called Brenda.- OK. This is probably too confusing for me so I'll leave it.
0:43:59 > 0:44:03'In the end, it was their contrasting ambitions
0:44:03 > 0:44:06'that put a stop to Shirley and Hayley's investment dreams.'
0:44:06 > 0:44:11I'm quite grounded. Hayley's off trying to get new business everywhere.
0:44:11 > 0:44:14And I just puddle along, running the shop.
0:44:14 > 0:44:18Hayley, your mum is very happy with her pancake shop.
0:44:18 > 0:44:25You have got ants in your pants. But, obviously, you're massively entrepreneurial.
0:44:25 > 0:44:28Just do me a big, big favour.
0:44:28 > 0:44:34When you leave the den, spend some serious time out and focus your life.
0:44:34 > 0:44:40- If you plan it, you specifically will get there. I'm out.- Thank you.
0:44:44 > 0:44:49Experienced businessman Robert Lewis from West Sussex is next in the den,
0:44:49 > 0:44:56with an invention he hopes will open up a new market worldwide turning thin air into hard cash.
0:44:56 > 0:45:00But first he needs an investment from one of the Dragons.
0:45:37 > 0:45:43Hi, my name is Robert. My company is Roller Signs and I'm here today to seek an investment of £100,000
0:45:43 > 0:45:46for ten percent equity in my company.
0:45:46 > 0:45:51I've brought along today the Roller Signs banner cassette and a retractable belt barrier.
0:45:52 > 0:45:56The banner cassette has been designed to retrofit
0:45:56 > 0:46:01the tens of millions of retractable belt barriers that can be found worldwide.
0:46:01 > 0:46:04From airports to movie theatres, retail,
0:46:04 > 0:46:09what was otherwise dead space is now transformed to high-impact media.
0:46:09 > 0:46:14To date, we've sold in excess of 1,000 units
0:46:14 > 0:46:17through our resellers and direct.
0:46:18 > 0:46:24I hope you like the product. I hope I've explained it clearly enough and I look forward to your questions.
0:46:28 > 0:46:31'A pithy pitch from father of four Robert Lewis.
0:46:31 > 0:46:35'Having created a new space for advertisers,
0:46:35 > 0:46:37'he needs a £100,000 investment
0:46:37 > 0:46:41'and is prepared to give away a ten percent equity stake.
0:46:41 > 0:46:46'What will retails expert Theo Paphitis make of his innovation?'
0:46:48 > 0:46:52Robert, I want to have a look at this because it does look cumbersome.
0:46:52 > 0:46:57- It's meant to control crowds? - Correct.- OK.- Queue lining.
0:46:57 > 0:47:01First thing we've got to look at is what happens when someone leans on it. Not bad.
0:47:01 > 0:47:06That's got some movement. So if we can take it up... How does that go up?
0:47:06 > 0:47:12- Like a normal blind? - A normal blind, yup.- And can I do... - BANNER CLICKS
0:47:12 > 0:47:14..that? It's off.
0:47:14 > 0:47:17And it's designed to
0:47:17 > 0:47:19go in neatly...
0:47:21 > 0:47:26..on the side of the barrier, Which is a big benefit for cafe owners, et cetera,
0:47:26 > 0:47:28because it's neat, tidy and clean.
0:47:31 > 0:47:36- OK. Well, this is great. So you've got a product?- Yes. - What do you sell them for?
0:47:36 > 0:47:41- The retail is 189.- And that's including the printed banner? - That's including the printed banner.
0:47:41 > 0:47:47Very important element of the business plan is that the customer has to come back to Roller Signs,
0:47:47 > 0:47:53- for either a complete banner, or the joining strips.- And how much will you make out of each banner that you do?
0:47:53 > 0:47:58If we sell a banner for £60, at the moment we're paying £22.50 for a banner.
0:48:03 > 0:48:05'A good start from the experienced businessman.
0:48:05 > 0:48:10'Multiple revenue streams always go down well in the den.
0:48:10 > 0:48:13'Now Hilary Devey wants to focus on the financials.'
0:48:15 > 0:48:20- Hi, Robert, my name's Hilary.- Hi, Hilary.- I've got to say, I like it.
0:48:20 > 0:48:24Anywhere you can utilise space for advertising is good.
0:48:24 > 0:48:27Talk to me about numbers. How have you traded?
0:48:27 > 0:48:33We've turned over about £82,000 to date. 40,000 of that has been put back into the business.
0:48:33 > 0:48:39So your main outlet for this product is cinemas, airports...
0:48:39 > 0:48:46We supply many different areas. Our customers include Ben and Jerry's, The National Trust,
0:48:46 > 0:48:49we also supply to a large pub and bar chain.
0:48:49 > 0:48:53Have you approached the major retailers where they have queue barriers?
0:48:53 > 0:48:58We are in the process of... The UK's largest major drug store we are in discussion with at the moment.
0:48:58 > 0:49:01So we're getting great demand for the product now.
0:49:04 > 0:49:07'Robert's certainly holding his own in the den.
0:49:07 > 0:49:12'Duncan Bannatyne is next to question the confident entrepreneur.'
0:49:13 > 0:49:18- Robert, you mentioned a lot of places where you could sell your product.- Yes.
0:49:18 > 0:49:24- And one of them was airports.- Yes. - But you haven't sold any to an airport, have you?
0:49:24 > 0:49:30We haven't sold any to an airport. If I may say, Duncan, in the early days I appointed the company to sell,
0:49:30 > 0:49:34they were involved with the airline industry. That relationship did not work out.
0:49:34 > 0:49:39So you tried and you had a problem. Tell me about your problems trying to get these into airports.
0:49:39 > 0:49:42I have not focused on the airports
0:49:42 > 0:49:47because we believe, although there is a big opportunity with the airports,
0:49:47 > 0:49:51we've had success elsewhere and there's only been so much I've...
0:49:51 > 0:49:54Hold on a minute. No, no, no, now, Robert, you're not making sense.
0:49:54 > 0:49:59- You had somebody from the airline industry, is that what you just said?- Yes.
0:49:59 > 0:50:05So why did they not go to their home market, where their contacts are and sell this into the airports?
0:50:05 > 0:50:09The airline industry are controlled by the big outdoor companies.
0:50:09 > 0:50:12OK. Who have you talked to in the airports and what have they said?
0:50:12 > 0:50:18No, I... Deborah, I don't know because the two guys who were airline-connected,
0:50:18 > 0:50:22they were unable to get the right contacts within the airports.
0:50:22 > 0:50:24That's a terrible answer, Robert.
0:50:24 > 0:50:28Deborah, to enable myself to keep generating revenue,
0:50:28 > 0:50:32I've appointed resellers to cover Spain and France,
0:50:32 > 0:50:37a reseller in the US, who is just about to take two container-loads of products.
0:50:37 > 0:50:40Do you know, I feel like you've got a shield up and you're deflecting
0:50:40 > 0:50:46- the only answer that I'm trying to get to.- I apologise.- I want to understand why you haven't...
0:50:46 > 0:50:50We haven't had the resources to go in
0:50:50 > 0:50:54and properly attack that market.
0:50:54 > 0:50:56We... I... To be fair...
0:50:56 > 0:51:01- Did you just say to Deborah two containers are about to go to America?- Yes.
0:51:01 > 0:51:06- Which will make you how much?- 30 a unit and 4,000 units. But, the...
0:51:06 > 0:51:13- 120?- 120,000.- 120,000! - Is that right? You're making 120,000 on that consignment?
0:51:13 > 0:51:20Correct. The US distributor will order two container-loads of products.
0:51:20 > 0:51:24- I have emails and paperwork to back that up.- Do you know, I'm going to have to see the email.
0:51:24 > 0:51:30I haven't got it on me. It's on my computer. But, you know, there is a substantial demand for the product.
0:51:30 > 0:51:36OK. Stop there, Robert. I would have thought that was a really important piece of paper.
0:51:36 > 0:51:40- I apologise.- Well, you get the picture, unfortunately that you've built up...- I do, I do.
0:51:40 > 0:51:45- Stop talking over me. - My apologies.- I'm out.
0:51:48 > 0:51:53'A disastrous exchange. Robert manages to alienate one Dragon.
0:51:53 > 0:51:56'But there are still four multi-millionaires left in.
0:51:56 > 0:51:59'Will Duncan Bannatyne be more forgiving?'
0:52:01 > 0:52:03Robert, I'll tell you where I am.
0:52:03 > 0:52:07It's ridiculous. I don't think there's a big sales route. I could make you an offer
0:52:07 > 0:52:12subject to an order that doesn't exist. But that would be wasting my time and your time.
0:52:12 > 0:52:17My time is more important. That's why I'm not going to make you an offer. For that reason, I'm out.
0:52:17 > 0:52:19Appreciate your time.
0:52:21 > 0:52:23Erm...
0:52:24 > 0:52:28Robert, I think it's a good product.
0:52:28 > 0:52:31I complimented you on the design and what it does.
0:52:31 > 0:52:34- So I was quite impressed.- Thank you.
0:52:36 > 0:52:37But...
0:52:40 > 0:52:44..I can't invest in it. And the reason, Robert, is you.
0:52:46 > 0:52:50You've snatched defeat from the jaws of victory.
0:52:51 > 0:52:54I wish you the best of luck, but I'm out.
0:52:57 > 0:53:00'Two more Dragons out.
0:53:00 > 0:53:04'Now only Peter Jones and Hilary Devey can rescue Robert's hopes
0:53:04 > 0:53:08'of gaining the £100,000 investment he badly needs.'
0:53:09 > 0:53:13I like it. And I think you have a good product.
0:53:15 > 0:53:20If you'd brought that piece of paper into the den that had shown and demonstrated
0:53:20 > 0:53:25that you had this commitment for an order that would produce 120,000 worth of profit,
0:53:25 > 0:53:30I'm going to tell you that I would have personally invested in the business and you.
0:53:31 > 0:53:36I appreciate that that was a real, erm, a real mistake.
0:53:36 > 0:53:41We have an order for two containers. I can confirm that. And that order will come through.
0:53:43 > 0:53:48- What would you stake on that? - I'd stake 100 percent. - You'd stake your reputation?
0:53:48 > 0:53:52My whole reputation. I don't want to lose you.
0:53:52 > 0:53:57- I know that with your expertise, and the whole company environment... - I get that.
0:53:57 > 0:54:03- But you would stake everything on the fact you've got that order? - 100 percent. 100 percent.
0:54:03 > 0:54:05So it's interesting you picked that number.
0:54:09 > 0:54:11I'm going to make you an offer...
0:54:13 > 0:54:17..for 100 percent of your business for £100,000...
0:54:19 > 0:54:22..on the back of this order being proved.
0:54:24 > 0:54:25And when this order is proved,
0:54:25 > 0:54:29I'll drop my stake to 49 percent.
0:54:38 > 0:54:41'Drama in the den.
0:54:41 > 0:54:46'Peter Jones may have offered Robert an investment lifeline, but it comes at a cost.
0:54:46 > 0:54:49'On proof of an email, nearly half the business.
0:54:49 > 0:54:54'With just one Dragon left, will he be able to negotiate himself a better deal?'
0:55:05 > 0:55:07I'll make you an offer.
0:55:08 > 0:55:11100,000,
0:55:11 > 0:55:14and I will scale it down...
0:55:17 > 0:55:22..to 45 percent on the same basis that Peter is doing.
0:55:33 > 0:55:38100 percent I have no problem with. I have a problem with the scaling down.
0:55:38 > 0:55:43Because, obviously, I want to retain a larger part of my company
0:55:43 > 0:55:46- cos I think it will be... - I'm offering you a larger part.
0:55:46 > 0:55:49I've come in here offering ten percent, so...
0:55:49 > 0:55:54But that was off the wall because, you know, you're valuing your business at a million pound.
0:55:54 > 0:55:56That's impossible.
0:55:56 > 0:56:01OK. Peter, is there any room for movement with your offer?
0:56:02 > 0:56:08No, I can't, because, if we're going to do this together, I want shared success.
0:56:08 > 0:56:14And if I'm doing shared success and financing it, I think I deserve 49 percent.
0:56:18 > 0:56:21Hilary, I really appreciate your offer.
0:56:21 > 0:56:24I have done my research before coming here
0:56:24 > 0:56:28and I fully appreciate that you're a hugely successful individual.
0:56:29 > 0:56:33I've also rolled out my own UK business into a global brand.
0:56:33 > 0:56:35- Have you?- Yes.
0:56:43 > 0:56:45Hmm.
0:56:50 > 0:56:55I never came here to walk away without an investment, cos it was very important to me.
0:56:56 > 0:57:02And taking into consideration that that order can be backed up, I would like to accept Peter's offer.
0:57:02 > 0:57:05- Thank you!- Congratulations! - APPLAUSE
0:57:05 > 0:57:08- Well done.- Thank you very much. - Fabulous. Thank you.
0:57:08 > 0:57:13- 'Robert has done it. It's a lot to give away...'- Thank you very much. - Well done, Robert.
0:57:13 > 0:57:19- '..but it does secure an influential business partner in the form of Peter Jones.'- Well done, Mr Jones!
0:57:24 > 0:57:29Well, Robert, we've just witnessed a quite extraordinary encounter. 100 percent of the business?
0:57:29 > 0:57:35Very, very odd. But I know that that order will come through. And so I have no issues at all.
0:57:35 > 0:57:38You didn't mention two container-loads going to the States
0:57:38 > 0:57:42- till quite a long way through the presentation? - It's the pressure of the den.
0:57:42 > 0:57:45I'm sure we can now go forward and it'll be a fantastic success.
0:57:45 > 0:57:47- Very, very good luck. - Thank you very much.
0:57:56 > 0:57:59Another day in the den draws to a close,
0:57:59 > 0:58:03and the Dragons once again show it's a tough place to do business
0:58:03 > 0:58:05and an even tougher place for negotiation.
0:58:05 > 0:58:08Robert Lewis has made an extraordinary deal,
0:58:08 > 0:58:12proving to get what you want, you have to take some almighty risks.
0:58:12 > 0:58:18If you'd like to find out why Peter Jones chose to invest in Robert, press the red button now,
0:58:18 > 0:58:23where you'll find exclusive post-den reaction. Goodbye.
0:58:24 > 0:58:29- 'Next time on Dragons' Den...' - Hello, everyone!- ALL: Hello!
0:58:29 > 0:58:32- I don't get it.- Is there any substance behind this business?
0:58:32 > 0:58:35Or is it just you two in trackies, talking?
0:58:35 > 0:58:39Give me a chance and I'll make magic products the world will buy, I promise you.
0:58:39 > 0:58:44I've just seen a person present, eloquently, a chair with a hole in it and a bin liner.
0:58:44 > 0:58:46And wants £50,000 for it.
0:58:46 > 0:58:50Subtitles by Red Bee Media Ltd
0:58:50 > 0:58:54E-mail subtitling@bbc.co.uk
0:58:54 > 0:58:54.