|Name||Sarah & Mike Longthorn & Laura Booth|
|Brief Description||Wellington boots with a wedge.|
A pitch from a young business in the unpredictable fashion market has the Dragons interested. But a lack of in-depth understanding muddies their good impression, and may cost them two investors to boot.
Is the world ready for high-heeled wellies? Laura, Mike and Sarah thinks so. Theo Paphitis wonders where the idea came from, at which Laura explains that Sarah wanted boots with tall heels to attend a music festival.
Female festival-goers aged 16 to 25 are are the trio's target market. The company is doing work for a luxury fashion brand, and their boots are stocked by a range of boutique, high street, catalogue and online retailers.
Duncan Bannatyne wonders why their profits are so low and grills Sarah, who can't seem to understand the concepts of profit and stock. Deborah Meaden follows up but is also unable to get through to Sarah.
With some patience and further input from Duncan, the Dragons eventually get the truth out of Sarah that the shortcoming in profits is caused by paying salaries for the three. It took a lot of effort, but at least the answer makes sense.
Theo Paphitis now asks about the trio's deal with the New Look chain. He wants to know what will stop retailers just stealing the idea. Sarah volunteers that they have the design registered and have successfully pursued retailers who were infringing on their design and trademark. This, the first mention of the design being protected, goes down well with the Dragons.
James Caan asks about their projected figures from New Look. Sarah gives their cautious estimate for the deal with the retailer. It's enough for James, who makes an offer of £65,000 for 20%, exactly what the trio asked for.
Deborah can't beat James's offer, but she can offer more value from her own expertise in the area. Seeing that the entrepreneurs are still interested, she too offers the full £65,000, but for 30% of the business.
Duncan and Peter, although interested, can't match the offers or retail experience of the other Dragons and on hearing that the entrepreneurs were hoping for a deal with Theo and Deborah, declare themselves out. Finally, Theo matches Deborah's offer of £65,000 for 30%.
The entrepreneurs go into a huddle and decide to make Theo a counter-offer for 22.5%, hoping he will compromise on 25%.
After a huge silence, Theo agrees.
Theo Paphitis: £65,000 for a 25% stake in Wedge Wellies.
Last updated: 9th August 2010
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