Dragons fall out over drone business in savage negotiation! | Dragons’ Den
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Dragons fall out over drone business in savage negotiation! | Dragons’ Den

November 19, 2019

I think today what I’m doing is actually a
dragons first and I hope to blow them away with my entrance.
I think the Dragons faces will just be in shock. It’s a really really exciting knew
industry and I just hope one of the Dragons sees the potential. Hello dragons, my name’s mark I’m the
founder of drone safe register. We are a UK network of CAA approved drone pilots
for hire and we are the UK’s most visited website for drone hire.
We currently have just under 400 members and we charge a subscription and we’re
here today to ask for 60,000 pounds for a 20% share in our business. I look
forward to any questions. A concise pitch from company boss Mark Boyt who’s
willing to hand over 20% of his online drone pilot register in return for
60,000 pounds of the dragon’s cash. Debra Medan is ready for liftoff with
the questioning. You couldn’t wait to get that over could you? Yes. You look much more comfortable driving the drone than you did doing the
pitch. So that’s fine we can ask questions. Right I actually don’t particularly like drones and I particularly don’t like
those ones that take photographs of my property yes but that doesn’t matter
down to business. So you’re a drone hire business. Okay C – A – A – approved pilots, yes. Right so you don’t hire me a drone, if I
want a drone I hire you with a drone. Yes you hire one of our members which
can be found nationwide. There’s a huge problem in the UK at the moment, there’s
lots of illegal drone operators operating. We provide legal drone
operators. There’s 4120 approved operators in the
UK and we’ve probably got you know 20% of the market that there is at the
moment. Great so well I’m looking for a drone
operator in my region yes you’re actually offering us, I think, the
platform? Correct. Excellent a safe and legal platform – you should have had me doing your pitch. No I’m so sorry you know this is the most nerve-racking thing I’ve done in my life. Deborah Medan draws out a bit more
detail about the nervous entrepreneurs business and Tej Lalvani wants to
determine why a drone directory would get potential customers calling.
Drones are very cool I love them. So in terms of the type of business that
people use drones for what is the largest segment. The largest segment at the moment is inspection work because it’s safer you know. We did a church spire
inspection they were quoted 14,000 pounds to put scaffolding up after
lightning strike. When we did it for eight hundred pounds. So inspections is the
main requirement and then after that? Inspection, I’d then say property marketing. Right you know 700,000 homes for sale in the UK currently – but you know our
members don’t just rock up at a job and obviously start filming, you know. We
are the best in the UK, we have some of the top top people and some of
the jobs they pulled off have been amazing. What is the most expensive job you’ve had in your platform that you’ve got so far. I think one member had eighteen thousand pounds. So 18,000 what was that for? There was a Bollywood film. A Bollywood
film. Mark, so how do you generate money? So we invite
professional members to join for 180 pounds a year. How many of those 400 members are paying you currently 180 pounds a year? I would say probably 80%. So 320 members? Yes. Actually that’s quite a lot isn’t it? They’re paying you 180 pounds? Yes yeah. So that’s one area of income what’s another? We also invite hobbyists to join
which is 14 pound 95 a year. How many of those have you got? We’ve only got four
hundred at the moment of 40 95 which is about six thousand a year. The hobbyist
is more like a lost-and-found service. We had one recovered from the North Sea
about three months ago. Someone sent us an email and we found a drone so it does
work. And then what about your commission? Do you take Commission? No
at the moment we don’t take any Commission. Why wouldn’t you do that? Why wouldn’t you push and drive people to your site, to actually make those
bookings? Which is why I’m here, you know. I’ve taken it so far and I’ve done it
all on my own and that’s why I’m here in Dragons Den
so hopefully get some guidance from people run national companies. An appeal
for help from the aerial entrepreneur who admits he’s still finding his feet
when it comes to maximizing profit. Touka Suleiman now wants to find out if marks
idea can really take off. So today you’re pitching for your platform, charges no Commission, so non-subscription. Correct. So how big can
it get? Give me some numbers for next few years. We’ll turn over
– look at I’m not a post graduate so I can’t come out with with
figures you know instantly. I’m not particularly great at figures but we
should have about 600 members by the end of next year. So in total next year what
you turn over next year we should to know about 200,000 and your net profit?
And net profit out of that should be about sixty to seventy thousand depends on how much money we spend on marketing. Okay. Look mark I’d say where I am I think
it’s a good little business for you, but you can only get it so big. A lot
more investment and I know nothing about drones so I’m afraid I’m not going to be
on that flying journey with you okay and I’m not gonna invest I’m out. Thank you
very much anyway, thank you. Tuka solomon exits the drone investment
opportunity, and Tej Levani is wondering if its niche appeal could be an obstacle in
the flight path of this business. I think what you’ve done is great but the
market size is my concern. You said there are about 4,000 CA approved pilots so even
if you were to get half of those that still only makes your business four
hundred thousand pounds a year so what happens from there. We can increase the
hobbyists of registrations which we haven’t sort of marketed yet at the
moment. It is a very small niche market I agree, but it’s only gonna get bigger –
it’s only a bigger we’re you know we’re at the very very start of it and we’re two and a half years ahead of anyone. Look I really like what you’ve
done with the business but I think right now it is limited in terms of where you
can get to. But I’m excited by this industry so I am
gonna make you an offer. Wow. I believe in terms of creating a
brand and awareness is gonna require time so I’ll give you all of the money, okay
but I want 35% of your business. Wow. I’m as surprised as you. Please don’t say that. Despite his reservations about the
market tej Levani feels a buzz from the business and tables a bid. Debra Medan
might not be a member of the drone appreciation society but does she think
Marc’s idea can fly. What I love about this is that you’ve taken your passion
and had this instinct I suspect that there was a business in this thing that
I do and you found it but I am NOT an enthusiast. No
I therefore don’t think I’m a good match for the business. I mean you’ve got to do
things you enjoy you know yeah. So I’m really sorry but I won’t be investing I’m
out. Thank you very much anyway. Mark I like
it. Thank you. I heard you say earlier I’m not a
postgraduate well I’m not either I left school at 16 so don’t put yourself down.
You’ve launched a great business here it is a niche but it’s got potential. I can
add a lot of value to this. So I’m gonna make you an offer.
Wow, okay thank you. I’m going to offer you all of the money for 25% of your
business. Thank you very much. Jenny Campbell swoops in with a killer
offer massively undercutting her fellow dragon. Only Peter Jones remains will it
be fight or flight for the tech tycoon. I could talk to you for hours
about this yeah I live this world almost every day. What drone do you use? It’s quite new it’s called a DJI inspire – the reason why DJI came to this country and
the biggest supplier of drones actually in Europe is a company I own so
that drone probably originated from us. So I know this market yeah really well.
So when you came in I can’t tell you how excited I was. Excellent.
Brilliant. – because I absolutely loved it and there is no ceiling to this business
if you join forces with me. If I was to make an offer. What I’m gonna do is I make it really
difficult for you. That’s not true I don’t think I’m gonna make it difficult
for you – I’m gonna offer you all of the money but I want 50% of the business. – and I’m not embarrassed to say that
because I actually think that 50% of where this business could go in the next
three months is immeasurably different to anything any other dragons apart from
me can do. All bluster – and they’re the facts because
these guys don’t know what they’re talking about when it comes to drones. Well I do know that I can build a brand quicker. Of course you can’t. You haven’t got any access to do that. Alright guys stop arguing.You’ve got no chance. I can’t let 50% help works you know. That’s why you’ve got a choice you. You can go and have your sealing and accept that and that’s what’s right for you. There’s
no ceiling mark. After some intra dragon squabbling mark now
has three offers to consider. Tej Lalvani wants 35 percent of his company,
25 percent Jenny Campbell is asking for a much smaller piece of the pie. Whilst
Peter Jones is demanding a hefty half of the business. Mark came into the den
offering to give away just 20 percent of his company is he prepared to compromise
to secure a deal. Would you look at 40 percent Peter. Would I
look at 40%? Yeah. I’d look at 45 so you still keep control
and it’s your business but you’ll become quite a wealthy man. 35 percent and I’ll
help build your website, I’ll help build your brand nationally so that you can
get all that traction. I’ll Shake your hand at 40 today. Sorry to to the both of you –
I’ll shake your hand at forty today. You’re in danger of alienating
the other dragons. I’ll accept your offer
Okay super, thank you very much yeah. Thank you very much fantastic I’m gonna
show you this. After a three-way dragon dogfight Peter Jones dramatically
reduces his demands to ensure he secures the deal. The entrepreneur exits with the
60,000 pounds he was seeking – and a tech Titan as a co-pilot. The most
nerve-wracking thing I’ve ever done in my life walking in there, but actually
got the dragon I wanted so absolutely chuffed to bits. That was greedy. Drones
that’s my baby. I do love you but you have no chance
Well I’m not speaking to you for the rest of the day.

Only registered users can comment.

  1. Peter always wins because he actually shows interest and passion in everything he invests in. How could you not pick him. And Deborah isnt bad either.

  2. 9:38 I must be dreaming. Im sure I just heard Jenny say she is making an offer?
    Perhaps she's confused or something. Ill watch the rest of the vid and see how things pan out.

    13:30 Phew. It all panned out in the end.

    Well done Jenny.

  3. A surprisingly poor negotiation from Peter! Mark had shown his hand twice and was only interested in Peter, he had alienated the other two dragons who made offers – if Peter held his ground he would have got the 45, guaranteed. He might have been just being soft to a guy who had built the business himself, but dont always learn your negotiation techniques from DD!!

  4. Peter is so smart, he wanted more than 35%, he raises the bar to 50% with room to bargain for 40-45% of the company. This was a good one!

  5. what about insurance flying a drone inspecting a church in a town? What if it fails and lands on a child or wealthy business person? Who pays? I presume the business is going to be so big they can afford that type of insurance?

  6. Idk it might be just me but everytime Peter makes a deal I can see a greedy eye and a greedy smile on his face and very bad aura all around him like someone made a deal with the devil

  7. I don't know when this was originally aired ut how come none of them said weddings or festivals !!
    Wedding drones are now so popular and not to mention youtubers using drones for video fotage..
    think they was really missing a mark on this one personally.

  8. Hahahahaha that was so funny when Peter Jones mugs off Jenny throughout! She tried undercutting Tej to prove a point and then Peter put in a high cut to own her and then when she talks all that stuff he interrupts her by accepting the offer ultimately mugging her off savagely!

  9. India is oppressing millions of unarmed kashmiris, raping, torturing and killing millions of unarmed simple ppl, plz help if you can spreading awareness

  10. Entrepreneur: comes to dragons den to present pitch and get an offer
    Dragon: makes offer
    Entrepreneur: shocked pikachu face

    I did understand the wow for Jenny though

  11. Jenny: Well, I am not speaking to you for the rest of the day.
    Peter: Even if it is for the rest of our lives. I don't care.

  12. If I was an entrepreneur I would accept Peter for 50% over Jenny’s 5% anyday. Jenny gives off a very uninterested lazy vibe that I don’t see in any other dragons

  13. The key isn't going to be odd jobs for a hobby or a random roof inspection, it's going to be contracts with safety inspectors, working with councils, offering training courses, make it the new norm, so instead of someone setting up a rig and being pulled up the side of a tower to check on some tiles or a crack in the concrete, they get the drone guy out to do it, much quicker, you have video/pictures to work off, much safer etc

  14. I would have countered with 49% just to retain majority ownership with it dropping to 40 if targets were met AND with access to SUPPLY drones via Peters contacts to members with a discounted price and the ability to still make a profit

    This would appeal  to subscribers as they can upgrade or replace their drones for less IF they remain members of the site

    He should really take at least something as a booking fee with the £180 being to fund the site itself, even if it was just something measly like £10 per job or !% of the invoice total with a member being disbarred if they get caught taking work outside of the system like how Ebay handles it

    And I would also look at having end users attracted to always go through the site rather than circumvent it too in whatever ways they can think of like protection, alternatives in case of a cancellation etc and vetting for qualifications, public liability and so on so the customer doesnt have to worry about anything

    This way you are putting off circumventing the site from both ends of the arrangement not just one and the nominal charge is an extra revenue stream

  15. Hearing the term "3 way" when there is only dragons present on screen was almost enough of a mental imagery to bring my dinner, breakfast and lunch back up from the last 3 days lol 🙂

  16. I love the faces Jenny 'I'm out' pulls when she actually makes a bid, and loses….:)
    She would probably not be that good in this Company anyway, and he finally got the Dragon he wanted, so it was sulky face time again for her, as Mark didn't want her anyway…….:)

  17. Now I'm starting to feel bad for the other Dragons. They always want Peter, just like X-factor people always wanted Simon's approval

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