|Name||Oliver and Toby Richmond|
|Brief Description||A bespoke nationwide car servicing company|
Essex brothers Oliver and Toby step into the Den with a spanner mascot who they hope will not put a spanner in their works.
Their pitch is for a nationwide car servicing network doesn't stall however as they report a year one turnover of £1.5m based on their ability to undercut main dealers by between 30 and 50%.
Duncan Bannatyne wants to know how the business works and Oliver explains that they get trade rates off the 600 garages they operate from and charge the customer retail rates. Given their one-off start up costs in the first year they have made a £40,000 overall profit so far.
James Caan wants to know about their business in the last month and Oliver reports a £230,000 turnover and an advertising budget of £30,000 a month.
Deborah Meaden opines that they are to be congratulated on doing so well so quickly but wants to know, given such healthy figures, what they could possibly want from the Dragons.
Oliver stays that they are doing well because in credit crunch times people are prepared to leave their car dealer and look for servicing deals elsewhere and that they want to exploit what might be the small window of opportunity current market conditions permit.
Peter Jones is intrigued by the spanner mascot and once he has established she is Tody's wife and the outsize spanner is part of their current marketing campaign, he invites the spanner to leave.
He then puts his own spanner in the works by asking the brothers how much they have put into the company so far. The boys have both re-mortaged their houses and put in £40,000 each but with no debt in the business he is at a loss as to how they have only a £40,000 overall profit. When they say they have clawed that money back Peter is taken aback.
He then asks if he were to invest £100,000 in them would they put that £80,000 back in the business.
They promptly say yes and Peter immediately makes them an offer of £100,00 for 35% of the business. To add spice to the proposition and hurry along the other Dragons he says his offer will only be on the table for four minutes.
This irritates both Duncan Bannatyne and Theo Paphitis who immediately declare themselves out as neither is prepared to negotiate under such time constraints.
However Deborah Meaden has an appetite for a deal and undercuts Peter's bid by offering the brothers the £100,000 for just 30% of the company. The clock has instantly stopped ticking on Peter's deal.
James Caan chips in with an offer but it is identical to Peter's - £100,00 for 35%.
The brothers need hardly glance at each other - they go for Deborah's offer and handshake on the deal.
Deborah Meaden: £100,000 for a 30% stake in Servicing Stop.
Last updated: 29 July 2009
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