"I'm NOT a Schmuck, Don't Try Treat Me Like One!" | Dragons' Den

a great idea doesn't necessarily make big profits and it's profits the dragons are after sarah and david glashan husband and wife from essex think they can deliver the returns the dragons expect if they get an investment of quarter of a million pounds [Music] my name is david glashan this is my wife and partner sarah we are here today to ask you for 250 000 pounds the product we're going to show you today is called an itza it's a multi-functional sun lounger towel that converts into a beach bag it unfurls a full 86 inches in length most towels stop here the sun lounges are still hot and you end up burning the backs of your legs we have six pockets the first one for a book magazine whatever you wish the middle one is a bigger pocket for the bigger reading book for the beach and the first pocket is for your mp3 player you'll notice that from the mp3 player pocket we have loops to the headphones when you're laying on your itsa you can now not have to worry about the wires going across your chest on the other side we have a further three pockets we have a hidden zipped pocket so we can place our camera on our mobile phone and our car high keys which has a registration number on push it over outside out of mind and go and have a little swim last but not least when you finish with it at the end of the day fold up the end fold up the pockets all with your possessions still in it get the end product with all your bits in roll it in over your shoulder and off you go we need to educate the market to this product and we believe the way we can do that is by targeting cruise line cruise line companies on a corporate basis i'd now like to invite you to ask any questions you may like to ask david and sarah glashan have got off to a confident start with a polished demonstration of their multi-functional sun lounge recover stroke beach bag but will any of the dragons be tempted to invest the 250 000 pounds they're asking for in return for 20 stake in the business david i'm almost speechless quite often people come here with products uh looking for investment yeah and when we go through the analysis i think i couldn't invest in it because the price isn't right but i'd buy the product now looking at this i don't think i would buy the product this product is already being sold online we launched it three weeks ago people are buying it online so how many people have bought it 700 online from a cold start how many 700. you've sold 700 in three weeks yeah from a gold star what price 24.95 plus five pound postage and packaging i'm just trying to work out from there yeah where you get a valuation of a million pound for your company now to be honest with you you cannot put a valuation on a company that's just starting that's that's crazy but you just did david because you said you wanted 250 point four twenty percent which would value the remaining eighty percent okay at one million pounds you put the valuation on it not me i don't like it okay i wouldn't use it straight away david has fallen foul of duncan banertine who seems irritated by the itza and infuriated by the one and a quarter million pound valuation david has placed on such a new business theo pathetis with his years of retail experience thinks he's seen it all before i was selling these eight years ago yeah the duffel bag type as opposed to a square bag yeah same thing in fairness i haven't got the um secret pocket at the end correct and haven't got the pockets at the side but got everything else so somebody so somebody could quite easily a cruise liner do their own absolutely right but they're in the cruise business but somebody's supplying the cruise liners who already has a contract absolutely absolutely for their towels their linen and everything could quite well do their own yes theo what you're looking at is risk risk to equity risk to investment okay you're thinking in your mind well if i invest 250 000 in this product i'm going to try and learn you're telling me about i'm not risking rewards what i am going to tell you what's the reward what i am going to yeah risk to reward absolutely and the only way you can get that is by how you market your product where you market it what you do with it and who you use to get it there really you look at what the competition is doing you look at what the competition isn't doing you find out what the competition isn't doing you find out what it's going to cost you to do what the competition isn't doing and then by the time you've divided it all up your percentages should be right because you know business is about percentages i believe and i will challenge it and i will challenge you if you want to bring one out to copy me because i'll take you to call i might think twice about it okay but i was there before you no no it doesn't matter doesn't mean it's not cool if you put the pockets on the side you copy it i said not do something well sorry there is a choice there is no comparison i think that's the way i can sum it up he's going to sue me now i've had the business lesson i'm very defensive of our product lesson now i've got the lawsuit david's attitude is alienating the dragons deborah meaden wants to steer the discussion back to the business opportunities for the product in the cruise liner market if it's for cruise liners yeah who provide you with towels and presumably as many as you want why would i bother packing that into my luggage you wouldn't no we're talking about they give it to you yeah as a as a corporate gift when you arrive in your cabin um how much are you selling that to cruise liners for six pound maybe we ought to get behind the business plan then because i thought we were talking about a retail price of 24.95 when you set a retail price in business of any product please don't tell me how to do retail prices that's got to drive me potty i'm not just concentrating just concentrate on your product and you tell me how you're going to how many you're going to sell what your revenue is going to be what the profit looks like in future years okay 36 000 online sales through an increase in spend for public relations awareness campaigns 50 000 is wholesale i've just come back from the canary islands where i've appointed five distributors in the canary islands to sell the product um and they will be selling it through either beach bars by the beaches and are they distributors are they buying the product from you or are they distributing they buy the product from so how many orders have you come back with what we're talking about is 50 000 wholesale orders in the canary islands in the first 12 months of trading okay so you've you've got orders for 50 000 of this product no but i will have have you got orders for any no to their utter disbelief the dragons have discovered that david has no wholesale orders on his books yet he's asking for a massive 250 000 pound investment deborah meaden wants to find out where the cash would go what are you going to spend 250 000 pounds on stock right and how does that happen we've got 72 000 on order now it's being made in china when you plan ahead for any stock position you've got four weeks to manufacture um anything you manufacture again you negotiate either at 40 to get it in manufacturing it might surprise you but i think a lot of us here probably understand how that process works i appreciate that despite having no firm orders david is about to take delivery of a massive shipment of his product richard farley thinks the strategy is unwise where i think you're making a mistake is is just trying to do too much too early you know i would keep if i were you i'd keep the business small i'd really pursue this cruise ship activity i would try to land that big order then you've got a valuable company until then you don't if we're talking about valuations you have to come back should you should you have put your money into some of the companies that are got no track record of any kind that float on the market for billions um you know you've got to give up that habit of giving business lessons every time you're asked a question i wouldn't go and spend huge amounts of money until you prove that it can be sold to the cruise ships when you do you've got a valuable company if you do okay until then i'm out [Music] an exasperated richard farley is out david isn't endearing himself to any of the multi-millionaire investors by trying to explain basic business principles to them so will any of the four remaining dragons invest business is all about what you achieve on a day-to-day basis and right now it's three weeks old the business so we have nothing to say to you this is what we've done you should write a book how to run a business all the facts in business you've been given so many business lessons that's not a very nice comment and i'll ignore that don't try and treat me like one okay if you didn't like that question you're really not gonna like mike but let me tell you something i could work with this guy david the point is i couldn't work with you that's not problematic that's the point you don't have to because i'd run the business and i'll consult you deborah's got a good question let's share debra's questions well actually duncan you kind of covered it because i was about to say if you'd if you didn't like that comment you're not going to like mine there's two parts to invest two parts to investing in a business there's product and there's personal whatever you do wherever you go and whatever you achieve you're going to give me advice aren't you i'm out david's apparently over confident attitude has cost him deborah meaden only peter jones duncan bannertine and theophitus remain and his chances of investment are dwindling you get a cruise liner to about a hundred thousand of these and you know what those greedy banks they'll be queuing up outside your front door to cut you a deal for funding that so tight and so competitive that you'll take their arm off i've enjoyed the business lesson this particular time i'm going to pass up on this opportunity so i'm out fine with theo per feet is now out david's pitch is falling apart peter jones is ready to declare where he stands i kind of think you are being silly about your valuations but that aside i can see you selling this i think people would buy it the question comes down to how many would they buy and i don't think that you would sell the volume that you expect and that's the only reason why i'm out it looks all over for david and sarah it's left to duncan bannertine who took an instant dislike to the product to have the final say you have a product called it's a and it's a mystery to me as to how you value it it's a complete mystery to me i don't understand it um so i don't invest in things that i don't understand so i'm going to keep myself out as well so everybody's out now thank you very much i need to lie down after that we carry on guys david might have made an impact in the den but it wasn't the one he was hoping for and he and sarah are walking away empty-handed daily was not exactly how to win friends and influence people there was a certain hostility in there was that your fault or theirs i don't think i handled it very well if i'm gonna be totally honest duncan i'm not schmuck don't try and treat me like one okay what about these business lessons you see you did start an awful lot of your answers with some general principle that they probably hadn't understood and you were going to explain it to them and it was i think they i could see their backs arching at the uh lectures wasn't that good wasn't that good that it got them thinking because it's too easy to sit there you know and everybody to nod and say what they want to say for them you know and they don't always know it all they're still learning too [Applause] you

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Keywords: dragons den, dragons den uk, evan davis, deborah meaden, touker suleyman, tej lalvani, business pitching, entrepreneur, game show, reality tv, shark tank, seaweed, mara seaweed, bbc iplayer, peter jones, jenny campbell, the den, invenstment, business, opportunity, biggest, best, worst, top 10, money, millionaire, billionaire, new, series, funny, funniest, toughest, negotiation, dragons den 2020, dragons den shmuck, dont call me a shmuck, beach towel

Id: fRNT7nzDxOU

Length: 13min 6sec (786 seconds)

Published: Fri Sep 04 2020