Here are the main Pitches from this week’s episode of Ireland’s Dragons Den
Bags of Fashion - http://bagsoffashion.ie/
Key people: Ana Derham
The first entrepreneur on the Dragon’s Den was Ana Derham who brought with her, her ecommerce business ‘Bagsoffashion’. Ana was looking for €150,000 investment and offering 30% of her business to the Dragon’s.
Ana has already secured 12 design companies to design the bags for her business. The main unique selling point of this business is that the bags are for hire but also for sale. As Bags of Fashion is to be facilitated as an online business, Ana stressed that her overheads would be lower than the usual brick and mortar businesses. Ana also highlighted that her business had four income streams through sales, memberships, hiring and bagit (recycle bags – discounted bags from damaged bags).
The target market was Irish consumers and that eventually spreading to the UK and further on. The projected sales figures Ana stated was €530,000 in the first year.
Bobby commented that he felt that there was a flaw in this business as bags are easily damaged and the bags could be stolen so they would be unsuitable to further customers and declared himself out. Gavin positively commented on how Ana took the constructive criticism and was impressed by this but felt that she had been working on this idea for a year and felt it could go no further. Sarah commented that she felt that expensive bags were no longer a high priority in today’s society and declared herself out. Neither Niall or Sean made an offer and Ana Derham left empty handed.
The Grass Carver - http://www.grasscarver.com/
Key people: Adrian, Adam Channing
Next up on the Dragon’s Den was father and son duo Adrian and Adam Channing. They came with their product “The Grass Carver”, which was essentially a snowboard which was designed to go on grass, gravel and many more surfaces.
Their target market was anyone who wanted to try it as Adrian (father) came up with the idea after trying snowboarding for the first time on holidays a few years back and felt that it was something that Irish society are missing out due to no snow fall and thought of a way to do a similar activity but on grass, sand or gravel.
Adrian did point out that the boards have reached up to 80 Km even though they had not attended to reach this speed. They were looking for €50,000 and were offering 40% of their business to a potential Dragon. Adrian also highlighted that although at present it is costing €200 to manufacture the product and retails it at €400, in mass production he would expect this to be reduced radically.
Bobby enquired about the appearance of the product as he felt that it was quite crude looking, Adam stated that it is still in it’s raw stage of prototype and it would eventually be more attractive and appealing to customers, bobby continued to say that he had no interest in the product and felt he could do little for it and declared himself out.
The Dragons enquired about safety standards for the product and Adrian stated that some of the investment would go towards safety standards. Another enquiry was about what else was the business looking from the Dragons and Adrian commented that he had little business experience and needed help in that area but that he was fully committed to the product. Sarah stressed concerns about the product being possibly banned from area’s such as the beach due to the speed it can reach and declared herself out. Niall commented that he was not willing to run the business for them and declared himself out. Gavin stated that he felt that product needed alot more work and may have come too early to the den and declared himself out. Neither Bobby or Sean made an offer and Adrian and Adam left without an investor.
The Night light Kneeler - http://carfriendly.net/
Key people: Pat Sheridan
Pat Sheridan was next into the Dragon’s Den with his product “The night light Kneeler”. Pat explained that the product had been developed and been put on the market 10 years ago but due to issues with the light going out of production and personal reasons, Pat had to ‘step back’ from the product and commented that when he heard about the Dragons Den he felt it was time to get it back into action.
The product consisted of a black triangular shaped box that has grooves for knees to rest on while changing a tire and a light that swivels up when it is dark out. Pat pointed out that the attractiveness of the product is that even in the rain, you don’t have to kneel on the ground in the wet as this would raise you off the ground. The box also contained a rain protector, gloves and a first aid kit. Pat stated that it cost €7 to manufacture the product, €14 to sell to retailers and it would then be retailed at €30.
Gavin enquired about how was he trading 10 years ago and Pat stated as a sole trader, later Gavin declared himself out after he pointed a flaw where he felt the knee grooves were spaced to closely to get enough energy to take the wheel off. Bobby enquired about the turnover projections and Pat explained that if he could reach 5% of the market of 75,000 units in the first year the product would expand from there. Sarah felt that a car manufacture could wipe him out quite easily by rectifying the product slightly and also felt that he over estimated on the future projections.
The Dragons enquired about whether Pat had a website and Pat stated that the product was displayed on http://carfriendly.net/, it was commented that the website had a good name but as it only sold ‘The night light kneeler’ it wasn’t reaching it’s full potential. Sean commented that he felt that Pat had only begun to reinvest his time in this product because of the show and also felt that the product couldn’t be patented and declared himself out. All the dragons declared themselves out and the issue relating to the product being 10 years old was a consistent issue for the Dragons and Pat throughout.
TileGo - http://tilego.com/
Key people: Cathal Lenard
Cathal Lenard was the last entrepreneur to enter the Dragon’s Den with his product “Tilego”. Cathal explained that he had been working in the area of tiling in the Uk, USA and Ireland for the past number of years. He was looking for a €60,000 worth of investment and was offering 15% of shares in his business.
Cathal demonstrated the practicalities of the product where on a average basis, a baton had to be either nailed or glued to a wall in order to achieve balanced and even tiling on a wall. Cathal pointed out that this can be very time consuming and dangerous (if nails are used) as there are often wires and plumbing in the walls that can be disturbed.
Cathal demonstrated that with “Tilego” there are adhesive strips that just stick to the wall and a click on leveler is attached to assure the tiles are level, there are several adhesive strips so the “Tilego” can be used a few times on one job. Sarah pointed out that when her tiles were being done, the tiler simply tiled from the floor upwards not needing a leveler of any sort but Cathal jumped in swiftly and pointed out that in alot of homes that method will not work effectively as not all floors are level.
Niall enquired about the cost of the product and Cathal stated that it would be sold to retailers at €12 and retailed to customers at €25, each pack containing 3×3 foot sticks with a clip on leveller. Initially Niall felt that this costed more than the ‘old fashioned’ way but Cathal pointed out that it didn’t in the long run as no nails, screws or batons were needed and it was less time consuming which would cost less for customers.
Bobby enquired about the finanical projections and Cathal stated that in the first year based on UK sales and on 1.5% of the potential market and 48,000 sales the gross would be £550,000 and a profit of £130,000 and by year three £5.5 million and a profit of roughly 3.7 million.
Gavin went straight in and offered the full €60,000 but requested 35% of the business and asked a few questions about the patent, it was patent pending from the UK. Gavin also was intrigued about Cathal’s commitment to the product and business sense. (Cathal explained that he had left Clondalkin at the age of 18 and by 21 owned his own business with some high profile clientele .) Sean enquired about what happened to the busniess and Cathal stated issues with Cash flow. Bobby worried about the estimation on the sales figures and declared himself out.
Sarah, Sean and Niall all declared themselves out. Cathal then attempted to bring down the amount of shares to 30% for Gavin but Gavin stuck to his offer as he felt that he was making an investment in Cathal and not just the business and felt that it may be at times a tough going and felt he needed his money’s worth. Cathal agreed to the offer.