Peter Can't Believe A Pyramid Scheme Business Model's Being Pitched | Dragons' Den

[Music] hello dragons my name is Paul Lobo this is Barry Richie our company is air Oasis Limited the purpose of us being here is we 125,000 pounds of your money and returned we will give you 10% equity in our company our product produces water out of air and Barry is not going to give you a brief presentation on our product hello dragons what I'm going to do first of all is just give you a quick very quick scientific experiment just to show you what the end product that comes out of our machine which is the pure drinking water itself Paul if you like to pour me a glass of tap water from there I'm gonna take a glass from our machine which will come into shortly and this is water that's been made out of the air in the last hour what we're going to do very quickly just pop this electrolyzer in which is going to pass a small electric current through this water and shortly that will come up as a color and it will show you basically what's in this water what we're looking for in the ideal water it comes up yellow this just shows that they're separated mineral grains in the water with the other water in which we have here this will go probably a lot of different color and it'll show what's in there as we're leaving that's a fist for a little while I'll just tell you a little bit about this machine we have the exclusive sole distribution rights to sell this machine throughout the United Kingdom we also have Iran Syria as well as Sri Lanka India and Nepal the air is sucked in through the side here it runs through a condensing unit like a dehumidifier they're then passed through a seven stage filtration system and a UV light to kill any bacteria whatsoever that's in the water providing you with the purest freshest drinking water on the planet 4 million pounds a day is being spent on bottled water in this country we believe by educating the public and showing them our water is much better than bottled water and we believe that this machine with is electricity and running costs that produce water at 7 pence a litre is going to change the way in which people buy water in this country this is from the tap that's what you clean your vegetables in this is our water ice-cold just with separated mineral grains and we're welcome to take any questions you may have bold claims about the purity and great taste of their water ambitious plans for market penetration Barry Richey and Paul Lobos pitch for 125,000 pounds of investment in their company air Oasis certainly hasn't lacked confidence but what's behind their confident claims Theo Paphitis wants to know very fault I'm Theo o7p Aleta yes sounds cheap when you compare it with bottled water yes but it's not cheap when you compare it to just filter because there's units like that just fill to exist that's without question the difference is these don't need a water supply so they will be very good in humid countries without question where where you can't get water to a unit most definitely so the UK market it's not actually gonna be a very good market for this is it well I think he's actually there's a lot of people that are interested in reducing their carbon footprint at the moment talk to me about it how do eight million how does this reduce my carbon footprint okay let's just look at the eight hundred and eight thousand machines they're out there at the moment with thought big plastic bottles on the top the plastic there's no plastic there's no bottled water there's no diesel there's no John in his shorts coming up so get to get all the bottles so the whole process minor plumbed in I've already dealt with it they're all plumbed in okay well then Oh Johnny doesn't turn up in his shorts okay right it doesn't deliver it okay then but you're comparing a mini with the rolls-royce because at the end of the day this the water this produces this is not saying Swiss vodka this is the best vodka the dragons are feeling the full force of Barry's bullish sales pitch James Caan decides to seek refuge in the company's finances a new renting these leasing these or selling me selling what surprising no leasing we're selling the efficient machine sells at six hundred and ninety nine pounds yeah we have a domestic unit that converts tap water into pure water which we're selling at five hundred pounds and what is it costing you to buy these they're coming in to me at 318 pounds into the UK okay and you're going to retail that to the end-user at six six nine nine that's that's using a direct sales force by selling direct to consumers Barry and Paul are confident of healthy margins but Duncan Bannatyne thinks he spotted a flaw in their plans don't like him destroying says something you said in your pitch what you're gonna do is educate the public you haven't explained how you can educate the public and you're not gonna educate the public they're probably going to continue using tap water or drinking bottled water Duncan as soon as you do this test which is very visual oh really that's the educational you can't travel under country knocking on people's doors going in with two glasses of water people look at the difference buy one of these machines you can't do that that's we can't if they can't how'd you get the public we've just got a hundred kits in little cases this is like the Kirby vacuum cleaner this is the bugs under them on the bed under the microscope we've got 300 people little cuties to go out door-to-door on commission I'd only please mother bunny buddy the point I'm making isn't that you can't groan knocking on doors the point I'm making is you can't afford to go around knocking on doors there's not enough money it's going knocking on doors and saintly people look will you let me come in and show you these two glasses of water I'm sure the difference in it you can buy my machine for 500 quid okay but there is because there doesent customer we bought all the kits the people are taking on a part-time commission only basis they get a hundred pounder sale they do three in a week they get 150 per sale it's good old-fashioned pyramid multi level direct market very you run the risk of talking yourself back down those stairs without an investment okay the reason I asked have you been a Kirby selling person is that I could have told you were because actually what you used to do is down in people's room bombard them and barrage them exactly the way you're trying to do with us now until they could picture they can buy that carpet cleaner I've seen the selling techniques yes I have to say really really annoys me you are talking about a pyramid selling scheme I've got to tell you for me that as a combination that I would run a mile from the first one so I have no reason to invest I might click the atmosphere in the den is darkening a furious Debra Medan wants nothing to do with the do and she's not the only dragon to be alienated by the pitch as a business proposition does this excite me for 150,000 pounds no working with Barry would just drive me crazy I don't think I could handle it and for those reasons guys I'm out two dragons are out so far Barry's been dominating proceedings the Peter Jones wants to know more about his business partner Paul how do you work with this guy um very well I love his enthusiasm no no I get Barry I don't get you leaving you do everything Barry says no not at all no business always agree one of them is unnecessary what how much money have you made have you got money to put into it yes I have I put it I put in 150,000 pounds so you put in 150,000 of your own cash yes and Barry I'm about 50 and about of a million in hard work have you got any more money Paul of course I've got more money how much more money have you got well I don't think that concerns you it does concern me how much money have you got probably about ten million in them in the bank that's so I don't think that's a valid question well I'll tell you why it's a valid question if you've got the money why aren't you putting let me let us explain why it's right we want your your expertise your your knowledge so that we can really go but why should I give you money for you to get money from me what we're not a charity we're not going to let you have you know charity you want my knowledge from me and my money absolutely exactly haven't got mug written over my forehead you know unengaged Peter Jones has blasted the do the dragons are clearly infuriated by the entrepreneurs themselves but it can even Berrien Paul's only hope now is to salvage their pitch by proving their water tastes as good as they say but it it tastes terrible tastes terrible Watford honest conversations but nobody saw it taste the war is that water that's cause it's warm that's why unusual taste something in this don't go out why there's something in it nothing in it use your glass and go and get a drink that water mayhem erupts in the den let me do the cold it's got the Dragons declare barian pools water to be totally unpalatable it's revolting my kids will throw that back at you Theo Paphitis demands an explanation taste it does it taste terrible or not it's it doesn't say terrible but it certainly doesn't taste as good as it should do it doesn't buy it's a brand spanking new machine that needs to be flushed and everything else properly this is why it's yeah it needs to be set up for a longer period of time in order 5 hours to get it working properly what is the temperature of that buried 21 degrees just listen to me I'm getting really annoyed now I'm complaining not about the temperature but the fact it's got a terrible appalling aftertaste so don't make excuses about the temperature I'm out it's all but over for Barry and Paul they've been blasted by Theo Paphitis now Duncan Bannatyne and Peter Jones step forward to have their say your the thing what gets me is this you did all these tests in this war to show your war is the best yes then I tested your water yes and it's rubbish well tested it more say the same thing and then you said that's because that machine hasn't been flushed in order for you to see our machine in its full operation it would have been fair for this machine to be here overnight then it would have been where you've gone from they would have justice you've gone from an hour and a half jaw night now you know but it doesn't really answer a question and you know I'm not gonna invest in it so I'm out Paul Barry you've basically bought a product here that lives or dies on the back of the quality that it produces can I say in all the times that we've tasted that water amongst new dragons have the first time that's been like this that's all I can say to you I think enough has been said by everybody else and I don't think you're here necessary to be insulted so good luck in your endeavors but I'm not gonna invest in the business and I'm out okay okay Barry and Paul have felt the full force of the Dragons Roth it may have been a confident start but it takes more than a forceful sales pitch to part the Dragons from their cash Barry Paul what did you think of that well we knew you know what the dragons are like did you know that it wasn't gonna taste good with that amount of standing time beforehand I did as soon as I looked at the the reading on it the water was 25 degrees it was too hot it should be four but Theo kept pointing out it wasn't the temperature he was worried about so does the cold colder temperature disguise the weird flavor they don't have to disguise it but as the as the filters are working the temperature comes down as it passes through the village hadn't gone through the filter not enough time okay thank you you

Channel: Dragons' Den

Views: 5,306,863

Rating: 4.8116851 out of 5

Keywords: bbc iplayer, united kingdom, british tv shows, watch uk tv online, watch british tv online, dragons, best, new, pitches, funniest, moments, most, shocking, products, businesses, peter jones, deborah meaden, dragons den worst pitches, dragons den funny, dragons den 2019, shark tank, new dragons den, new shark tank, tej lalvani, touker suleyman, Air Oasis Ltd, vacuum wars, kirby avalir review, kirby vacuum, kirby avalir 2 demo, Paul Lobo, Barry Ritchie

Id: nXU8Ru57RG0

Length: 12min 51sec (771 seconds)

Published: Mon Dec 09 2019

Reddit Comments

[u/timscookingtips]

Some serious flop sweat going on.

[u/alex_dlc]

Are we just going to ignore the fact that they didn't really care that it was a pyramid scheme? They got kicked out because their water didn't taste good. Why weren't they kicked out as soon as they said the word "pyramid"?

[u/NoProdigalSon]

I’ve tasted the water produced from condensation as part of a sixth grade experiment on the water cycle—it indeed tastes burnt and terrible because it lacks the dissolved minerals we’re accustomed to drinking in tap/bottled water.

[u/Xursh]

He called it a pyramid, what dumbass actively calls their venture a pyramid

[u/tourorist]

Piece of paper

[u/RedSaucin]

That guy became his own self water machine with all that sweat

[u/MarshallTom]

The British version?

Shark Tank is the American version of Dragon's den, it came years after.

[u/zbf]

"How much money you got?"

"I dont think that concerns you. How much money YOU got?"

"About 10 million in the bank"

"Well..i.. uhh"

[u/Leisure_Muffin]

Alright, let me explain again