This ONE Thing Ruined The Pitch | Dragons’ Den

Foreign My name is Caroline gross and I am here Today with my business smarter I am here to raise 100 000 pounds for 10 Of the business Smart Set is a mobile and web Application that enables interactivity On video content to illustrate this I Made a demo video of our current iPad Application so as we're watching these Videos we can touch the screen to reveal These icons that will instantly tell us More information about the products Click in order now will take you Directly to the website that sells this Particular product where we have more Information we can purchase it or go Back to the show And we can also share via Facebook Twitter or email and for example send This link to a friend and carry on Watching So I hope that's clarified how our Product works The problem that our product is solving Is inefficient monetization of product Placement for Content owners and Retailers Revenue will be generated through a Hybrid of commission per sale and Licensing the technology Thank you very much I welcome any Questions that you might have A quick fire pitch from Caroline who's

Looking for a hundred thousand pounds in Return for a 10 share of her technology Business Cloud computing Pioneer Piers Linney Wants to establish more about how the Software she's devised actually works Hi so simplistically I'm a dumb address Manufacturer whatever I've got my five Dresses I've got a nice video fashion Show a blue red green I can run it Through your system tag the green one With the URL put it on my website or my Phone app when somebody sees the green Dress they see a logo and they click it And it goes to URL or shopping basket And they can buy it yes they have to go To your website no you only go to us When for the tagging process we've built This very very simple way of tagging Videos through an editor where you Literally enter the product details you Say the tag is here it moves from here To here and it's in place instantly so How unique is it I think this has been tried to do in the 90s in the first times around Um but I think now people are more and More using devices that were actually Suit this type of technology for example IPads and mobiles and laptops to consume Content so I think this is a perfect Timing to implement something like this So what Forum do you mainly see this Being used in one of the first companies

That has approached us that we're Talking to now is a TV show that has an App and they would like to have this as An extra feature on their app so people Can purchase the items featured in that Content so they'll use it as a second Screen experience and through that they Can engage people a lot more and also Get sales through the products So I have a company I create a video you Would then create this yes so then what Is that going to cost me So if you would like us to build you an Application or add this feature to your App it will cost you yearly 42 000 Pounds for the license and then Obviously you will be generating Revenues through Sales of the product and will you then Take a percentage of those sales so we Would split the sales 50 50. I'm just trying to work out why me with My warehouse full of goods and I'm Fighting for my margins am I really Going to give you A big part of my margin I can't see it I Think this can hugely increase the Amount of sales you're going to get so Overall benefit for you is still going To be very very large in comparison to What the costs will be I am actually building an online Business at the moment it's a Kelly Hoppin website I'm using a similar

Application to this your 42 000 is that A yearly fee yes that will be the Installation and then a yearly Maintenance yeah you see I'm using a Company I give them a one-off fee They're creating the whole thing the Whole package for me this to me is You're making more money every year for Something that I can be doing once I've Actually got the whole system set up the Fact that this big client has approached Us and offered to pay us a weekly fixed Sum of money does signal to us that Clients that would see huge benefit in This product I've charged 42 000 pounds For this type of Technology I think you would be better off saying I Will just sell this application to you For 500 pounds or a couple of thousand Pounds a very big retailer in the UK has Put aside 200 000 a year for their app Development So charging 42 000 for something that will actually Generate sales and it's a very engaging Way of doing so I think is very good Value of money A solid defense of her Revenue model From The Young technology entrepreneur But will it be enough to convince Self-confessed technophobe Duncan Bannatyne I I think it's crazy to think that You're going to get companies paying

Your 42 000 pounds per year for license Fee the only thing I can say is I'm out I think the I think what you Demonstrated is is great I could see People using it I think the fact that You've gone very tablet based is is new And is good When I do and we create websites on a Worldwide basis for some major brands From a top end you've got a complete End-to-end portal and inside that portal You've then got unique ways to display Video and encourage the user to have a User experience and buy yeah Yeah you need a suite of applications And a further offering and maybe there Are some things that you could go to to The next stage with something like this Um but can I wish you the best of luck I'm not going to invest and I'm out So I disagree I think you should focus On this application and make it the best It can be you should be a an online Model that just makes this stuff work Seamlessly so I think the model you've Pitched Probably isn't the business model I Think you should be going forwards with Um So I think you're fantastic you've come In a very credible you've achieved a lot But it's not for me so I'm out thank you Three dragons have now declined the Opportunity to invest

It's now down to Kelly hoppen or to Deborah meaden to make an offer Will they be prepared to put up the 100 000 pounds she needs to develop her Business To try and charge somebody 42 000 pounds A year for something which actually in In it probably would it'll cost somebody Less once they've seen yours it'll cost Them a lot less to develop their own The licensing fee is too close to the Development fee with things like this What you see on the screen is the tip of The iceberg as a comparison I have had a Quote from a large U.S development Company Just to build a simple prototype of this Would cost a hundred and fifty thousand Dollars a prototype four hundred Thousand dollars for them to develop This as an app I could go to another company that would Give me a different number As good as you are um as good as this is It's just down to that Revenue model you Know if I paid that much money up front I wouldn't want to have to pay anything Else So I'm afraid I won't be investing I Might thank you I think that you have to be careful Because there's a lot of competition out There you should be selling more of what You do for Less

Um so for that reason I'm out but thank You very much for coming thank you and I Appreciate all your advice and the Opportunity So Caroline leaves the den with plenty Of suggestions but sadly no investment Despite enthusiasm for both the Entrepreneur and her product a highly Ambitious Revenue model ultimately Turned the dragons off So many so many people wasn't it because It's she's got everything right yeah but She got so much right and then to get The revenue model you should just go on A Porto you can seriously investable Individual but pitched it wrong

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