Dragons Offended by Former Police Sergeant’s Pitch | Dragons’ Den

hi my name is glenn pleased to meet you i'm the managing director of oakland club buildings i've come here today looking for a minimum investment of 250 000 pound for at least a 30 stake in a new business that we are creating called camping bugs the camping bug concept is simple we design we manufacture we deliver and install buildings then we release them to campsites hotels also leasing them as garden offices and as beach hulls by lowering the manufacturing cost by the careful sourcing of materials and by the use of waste materials i've managed to get the cost of the building down so we can now get out to the end line user at very affordable lease rates the buildings are lined they're insulated they're double glazed and manufactured for all year round use following the growth of the glamour camping business the christmas market trade and the number of festivals there's now a ready market for this product any questions glenn can we have a look yeah former police sergeant glenn brady believes his new take on the glamping craze is about to make him his fortune that's not bad it's pretty solid the lancashire-based entrepreneur needs a cash injection of a quarter of a million pounds to get his new startup company off the ground but the hefty price tag does not seem to have put off hillary duvet glenn i'm hillary tell us a little bit about how it's made the cost of making it the retail price etc i own a timber building manufacturer and as part of that business we have a machine that makes log cabins right and as a result of that production process i end up with a lot of waste and scrap wood so if you look at the way the building's done it's pretty much done all the whole front and back panels from very short off cuts of timber so these are the the bits that are left from manufacturing of the log cabins and uh basically the production cost would be somewhere between 800 pound to about 1500 pound right okay and have you leased any yet all the ones that we that have been manufactured have been allocated to campsites or to places and how many is that we've we've got about 50 manufactured so far a good start as glenn settles easily into den questioning but leisure industry expert deborah meaden knows this market well so you say you're making these or similar for between 800 and 1500 plans which i think is incredibly good value so um can you break that down in terms of um labor and materials at the moment we make all the arch sections in a small workshop that i have in poland and it's roughly about 750 pounds the floor's about 100 quid the shingles are about 120 quid and then there's the labour for putting up which brings us to about the thousand pound mark you're telling me you can make that whole thing there for you this whole unit take everything from the inside but that is fun that's amazing that's fantastic wow glenn 250 thousand pounds what are you going to do a quarter of a million pounds well the initial part of the investment would be to upgrade some of the the production facility we've got but that would only account for maybe 20 30 000 pound worth of the investment the investment would be to build a lot of them quickly for specific events that we know we can lease them out the money would pretty much sit in situ if we didn't do that right if we don't lease any if we don't put any on campsites your money will stay in a bank and not get touched impressive product and a persuasive argument for investment glenn is doing well but what of his other company peter jones wants to know glenn yeah your current business yeah what what do you do manufacturing timber building sheds log cabins it's called oak and cloth buildings what's the net asset value of the business at the moment we own the land in the factory we've got the machinery the equipment i would say probably a couple of million pounds so why would you not just do this yourself the motives for the investment actually look at leasing the product or getting this product to market quicker than we ordinarily would do making two or three each week okay so i put a quarter million pounds into newco new coast spends my quarter of a million pounds with your company your company gets a return on the money invested because i've given you work and also you own 70 of newco well i mean normally people have a bit more of a complicated process so there is a bit more smoke and mirrors but you've just gone no give me a quarter million quid and give it to my company that i own 100 off no i mean the position that we're at now with this product is ready to be taken as totally an autonomous business well you can't know because your people are producing all of the stuff that the company needs with my money it's a major setback for glenn as peter jones uncovers a serious flaw in his investment proposition and it looks to have incensed theo perfettis glenn what makes you think that anyone is going to give you a quarter of a million pounds for something that's got hardly any assets in it and all it is is building some sheds and then if you do get orders for your sheds the money's going to go to your other company down to poland my money's going to disappear please please give me the answer why you think that's credible well the reason why it's credible for every thousand pound we draw off an investment we will manufacture a building that we can retail for between five and seven thousand pounds even as garden offices but you can't because if you could you'd be making them day and night and smoking a cigar on a caribbean beach there's no business model that makes any form of sense except for yourself i'm out thank you theo fetus delivers a stinging analysis and glenn's earlier confidence takes a hit now will duncan banner time agree with his rivals concerns i want to take it back to your question hurry ask you yeah she asked you if you're at least any out yet and your reply was that you'd allocated the number two and i don't know what that means have you leased any out no have any ever been leased out we leased about half a dozen last year okay um i'm out hook it up right i'm gonna let you know where i am glenn it's a little bit insulting to come in here and ask for 250 000 pounds on a separate business without a track record and no basis on which anybody in their right mind would ever consider investing and you don't look stupid to me you won't be at all surprised to hear i won't be investing i'm out okay i appreciate that thank you very much glenn i think your pitch was outrageous i think your business model is preposterous i can't say anymore i just can't say anymore i am out short shift from three dragons and the bewildered entrepreneurs investment dreams look to be all but over but peter jones seems to have something on his mind glenn would you be interested in a conversation about investing in the whole business um to be honest that i wouldn't want to go down that that avenue really why um if you if you put 250 ah if you for every thousand pounds you invest in these the end line product once we've made them then there's one thing about a guy that's been in business for 30 years you ain't going to be able to diversify my train of thought by giving me some willy story about this if you've got a business that has an asset value of 2 million quid you're asking me to put 250 000 pounds into a company that has no assets why would you not entertain a conversation about me coming into the hole what would you bring to that business that would oh yeah in terms of i mean just i don't quite know what to say you really should be coming in pitching the whole business but you didn't want to do that because you want to keep it for yourself this is definitely not investable so i'm out okay thank you thank you it was a promising start but it takes more than that to part these candy dragons from their cash after my experience in the day i've got to say i've had better days in the office i wasn't expected to get quite such a severe reaction i wasn't prepared to give part of my current business up and by doing that effectively i put my nailing me on coffee but that was fair enough it was one of those things and yeah i'm looking forward to proving them wrong you

Channel: Dragons' Den

Views: 417,424

Keywords: united kingdom, british tv, british tv shows, watch uk tv online, watch british tv online, dragons, series, worst, pitches, most, ideas, products, businesses, peter jones, deborah meaden, dragons den worst pitches, dragons den funny, dragons den series 17, dragons den 2021, shark tank, shark tank 2021, new dragons den, new shark tank, sara davies, tej lalvani, dragons den hut, luxury shed homes dragons den, former police sergeant, dragons den police officer

Id: 8aCjqK7z9Xg

Length: 10min 29sec (629 seconds)

Published: Wed Jun 23 2021