These Bold Entrepreneurs Stick To Fair Pricing For Their Products | Dragons' Den

Summary

Lawrence Webb and Frank Druid, from Rugby, pitched their invention, the Lid Lifter, a pedal device to open wheelie bin lids, on a business investment show. Seeking £50,000 for a 20% stake, they faced skepticism from the investors. Despite low sales, they held firm on their pricing and patent. Deborah Meen and Theo Paphitis each offered £25,000 for a 25% stake, while Peter Jones offered the full amount for 50% of the patent. Ultimately, they chose Peter's offer, gaining investment and a business mentor.

Takeaways

• 😀 Lawrence Webb and Frank Druid are seeking £50,000 for a 20% stake in their business, Lid Lifters.
• 🔨 Their core product is a pedal device that opens wheelie bin lids, aiming to solve a common household problem.
• 🏙️ There are 22 million households in the UK, with a potential market of 21 million bins, which is expected to grow with recycling initiatives.
• 🤔 The Dragons are initially unimpressed, questioning the simplicity and value of the product, comparing it to a piece of plastic and string.
• 💼 Lawrence's background is in physical education, having been a teacher for 35 years, while Frank is a former director of PE.
• 💰 The unit cost of the Lid Lifter is £250, and they sell it for £530 to trade and £9.99 to retail customers.
• 📄 They have a granted patent from 1997, which covers the use of a flexible linkage between the pedal and the bin lid mechanism.
• 📊 Sales have been slow, with only 2,000 units sold between 1997 and 2012, averaging about 150 units per year.
• 💭 Deborah Meen offers £25,000 for a 25% stake, seeing potential in the product despite its slow sales and unattractive retail appeal.
• 🔄 Theo Paphitis and Peter Jones also offer £25,000 each for a 25% stake, recognizing the product's potential and the strength of the patent.
• 🔝 Peter Jones makes a bold offer of the full £50,000 for a 50% stake, positioning himself as the partner with the experience to leverage the patent and retail contacts.

Q & A

What is the name of the business run by Lawrence Webb and Frank Druid?

The name of the business is 'lid lifters'.

What is the core product of lid lifters?

The core product is a 'lid lifter', which is a pedal device that opens a wheelie bin lid.

How much investment are Lawrence Webb and Frank Druid seeking?

They are seeking an investment of £50,000.

What percentage of the business are they willing to give away for the investment?

They are willing to give away a 20% stake in their business.

How many wheelie bins are estimated to be in the UK according to the script?

There are approximately 21 million bins in the UK.

What is the unit price cost of the lid lifter according to the script?

The unit price cost is £250.

What is the selling price of the lid lifter?

The selling price is £530 for trade and £9.99 for retail.

When was the patent for the lid lifter granted?

The patent was granted in 1997.

How many lid lifters were sold in the 12-year period mentioned in the script?

Only 2000 lid lifters were sold in the 12-year period.

What is the main criticism Deborah Meen has about the product?

Deborah Meen criticizes the product for not being an attractive retail item and suggests a different market approach.

What offer does Deborah Meen make to Lawrence Webb and Frank Druid?

Deborah Meen offers half of the money (£25,000) for 25% of the business.

What is Peter Jones' final offer to Lawrence Webb and Frank Druid?

Peter Jones offers the full £50,000 for 50% of the patent.

Which dragon's offer do Lawrence Webb and Frank Druid accept?

They accept Peter Jones' offer.