Extraordinary turnaround for entrepreneur's HUGE pricetag | Dragons' Den – BBC
hello dragons my name's Richard Brook I am here today looking for investment of a hundred thousand pound for 30% shared in my company sockets sockets is a
safety shield the safety shield is used during refurbishment of occupied housing by the electrician during the electrical rewire this creates a protective shield around the electrical installation then allowing the electrician to leave installation fully tested and in full use allowing plasterers your tireless you painters to carry out their works in full safety at present we sell 240, 000 units per year within the UK this gives me a turnover of 50, 000 pound all the products and all the sales at moments have been with zero advertising marketing and campaigns it's all been through myself and pushing the products I'm not a Salesman you can tell from the pitch and I need a dragon like yourselves on board to assist me in what I think is a fantastic patented product we can see it to market and increase the sales to between two and five million per year based on the number of properties refurbished per year in the UK and would anybody like some samples are alike a closer look of a product before we go to questions [Music] a plastic casing which makes plug sockets safe while they're being worked around I'm just showing you how this one's fitted now is the proposition on offer from Yorkshire based entrepreneur Richard Brook the plaster would unscrew the sockets you'd get plaster you get pants within fitting the safety shield I'll leave you to that problem the 47 year old is looking for a 100, 000 pound investment no pressure no pressure in return he's willing to give away 30% of his business anymore this is probably the most stressful moment of his life know something you're making it 10-9 you're standing there's giving him the stress so that's the principle of it so far well done now the demos boxed off can Richard spark some interest from the dens queen of DIY Deborah Medan Thank You ratio so actually it's quite a simple product to understand its it means that you can carry on using your electrical switches when their property's been refurbished thank you very much so what are they self all right the retail price yeah it's forty four pence for the single forty eight pence for the double yeah and the cost price ten halfpence yeah for the single and twelve and half pence for the double when did you start selling them I started selling back in April 2009 and your sales to date a two hundred and forty thousand today year per year two hundred forty thousand a year yes okay and has that grown at all since 2009 yes ten percent a year year on year okay so I don't know if you're aware but I've actually got a business that sells electrical sockets that are completely flush to the wall and what we have to do is work out who saves the time who saves the money because if it's the tiler that saves the time but the electrician that's got to buy the product it's never gonna sell we found but it actually benefits the electrician's the feedback we've got is rather than doing two visits to site they would do a rewiring the day complete energized fit the shield they never went back okay and you know I'm going to ask this what type of plastic its home fox diving right so is that recyclables yes recycle it's got the stamp on the back okay a positive start to Richards pitch as Deborah Medan draws out more detail about his plastic product now Sara Davies wants to know if her investment will be well spent Richard right I want to assume that part of what you want the money for is to make a bigger impression tool to get that price down with the investment from yourselves I would like to a four impression tool so then we can meet the demand of two and a half million a year which I would like to anticipate we could achieve easily and to make that four impression tool what's the quote you've got for that that's 12, 000 pound and what will that bring your unit costs down to nine pence for the double and a pencil a single and why would you just do a two and – why wouldn't you move to a six and six the cost of a tool increases dramatically but then the unit cost comes down dramatically I think you need to think a little bit bigger yes Richard the bottom line is that you're asking for a hundred thousand pounds investment yes and you're gonna have to put more money in so you definitely need an investor but in terms of the opportunity I think a hundred thousand is really quite an ask at the moment and that fifty thousand revenue what was your net profit it's been zero for the previous years because every penny I've made profit has gone back into the business this wasn't my dear job this is something which was originally a hobby and now he's developed into a very good interest of Manx I like you know inventing things do you actually have a full-time job when estimates are full of a national repairs and maintenance companies if I decide to give you a hundred thousand powers of my children's inheritance yes are you gonna give up your job or are you gonna carry on working well at the end of a applause made redundant Malcolm Network for so how everything's aligned now I am full-time with this and from now onwards we can tear this product to the next level and I will give you a hundred so you will do it full-time doing it full-time yes what else have you been doing I'm into vintage Jim yes Kath are you racing them yes midlife crisis baby eraser Ford Anglia and a zodiac kia has two midlife crisis exactly yeah excellent some mid pitch respite for the entrepreneur as Theo Paphitis discovers a common interest but before these kindred cast spirits drive off into the sunset together tej LaVon II wanted to know if richard has more spark about him when it comes to selling his own product can I understand what your margins are in terms of whole sales so I know your retail price is 44 P and your cos place is 10 to 12 P have any other size do I sell to the electrical wholesalers at 25 pounds for the single and 28 pence for the double sports you've got about a 50% gross margin yes and you've been growing at 10% a year which is growth but I would expect this to be a much higher growth why haven't you approached the construction industry distributors I'll be totally honest with you sales and Marty's not my expertise and I haven't pushed for product I haven't marketed the product and I'll admit that that's my failing on my side look it's a really good product it works really well you're selling already you know you're ticking all the boxes here but it just doesn't excite me as a business money excites me but I feel that you've got to sell millions of these units to get my investment back and 100, 000 pounds is a big ask I think so if it was a small amount of may have considered it but on that basis I'm gonna say I'm out good luck Taz Levani isn't convinced by Richards projections and boughs out of the deal does Sara Davies see any promise in the product you know what Richard and the product does excite me not that I do a lot of wiring plugs in my spare time but the product your enthusiasm for the product however I worry that you've bumbled along for 10 years and the thing that's forced you to come here the day isn't that you've just thought yes come on I'm going to go for this I've got the drive it's a factor you've been made redundant this is forced to become your job not that you think the opportunities great enough it took that risk and that's what's bothering me I would hire you tomorrow but this isn't an investment for me and I'm out [Music] Richard to get 10% of a market that's a challenge for you to do that but in terms of the opportunity I think it's a great business for you and I'm sure you're going to take it further and if you'd come in at less money I think this might be a bit of a punt but a hundred thousand pounds is a big ask sadly that's why I'm out Peter Jones casts doubts over Richards target growth and switches off his interest in the deal now Theo Paphitis is preparing to give his verdict Richard I'm all over the place with this I think it's an ingenious product I think it's amazing that you've put it together in your spare time but you've come in for a hundred thousand pounds and that is a lot of money and a hundred thousand pounds it's such a specialist product the return on my investment might take a while I think this is a sort of a product that is worth sharing with no dragon there's quite experience in making these type of products got Khaleesi in the middle there I'll take Dragon Queen any day of the week fear now I don't know if that's something that she thinks it's worth considering well if it wasn't a hundred thousand pounds I would not have sent here so long and so quietly and I also think that you would have a fantastic combination between Theo and I so I would certainly be interested in sharing okay now the percentage if I did fifty thousand I would 125 percent or otherwise it's just not worth my investment I think we would be a dream team so I would make you an offer fifty thousand pounds for twenty five percent of the business but with a buyback so I'll reduce my shareholding to 20% once we have our money out the youth then go to 60% and we'd be a 40% advisor it's a big moment for the entrepreneur a double dragon deal on offer from Theo Paphitis and Deborah Medan but they're asking initially for half of his company 20% more than Richard was willing to give away I'm confident if to identify itself on board we've got a great potential and great team I think my energy and fuels Azzam will go get the sales if you'll tell me which direction to go in so I have no doubt but I could pay about that investment within you know two years so for that reason I mean your relations business mr.P a dream team there we go Thank You dragon excellent thank you soon [Music] you.
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