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