- 3 hours ago
- #realityrealmus
#RealityRealmUS
Reality Realm US
🎞 Please subscribe to our official channel to watch the full movie for free, as soon as possible. ❤️Reality Insight Hub❤️
👉 Official Channel: />👉 THANK YOU ❤️❤️❤️❤️❤️
Category
🎥
Short filmTranscript
00:00Is this our first holidays together?
00:02This is like a total family Christmas.
00:04Oh, there you go.
00:05Yep, yep, lift her up.
00:07Yes!
00:09They put $500,000 of their money into this business.
00:12You can't say they didn't bootstrap it.
00:14That's not bootstrapping.
00:15What is bootstrapping your definition?
00:16You wrote a book about it. You should know it.
00:18Exactly. Not having money.
00:20That I knew Toothy was destined to be on Dragon's Den.
00:24Sorry.
00:25No need to apologize.
00:26I'm just so happy these are tears of happiness.
00:30First on their merry way...
00:54Here comes Santa.
00:55Two cousins from Montreal, here to bring a little holiday magic to the den.
01:02Treezy.
01:03Treezy.
01:05Well, hello, Dragon. My name is Junior.
01:08And I'm David.
01:10Together, we're two-thirds of the founders of Treezy,
01:13a natural Christmas tree delivery now expanding as a franchise opportunity.
01:18Wow.
01:19Today, we're asking for $200,000 for 15% of our company.
01:24Dragon, if you celebrate Christmas like two billion people worldwide,
01:29how do you get your Christmas tree?
01:31At Treezy, we like to bring home the magic.
01:36Do you say franchise?
01:37He said franchise.
01:38I heard it.
01:39Come and decorate the tree with us, please.
01:42Okay.
01:42All right.
01:43I want to do the tinsel.
01:45I'm not a scrooge. I just don't celebrate Christmas.
01:47I understand.
01:47Oh, I want to do the ornaments.
01:49Treezy lets customers pre-order trees online up to two months in advance
01:54and select their preferred delivery time.
01:57Oh, a real Christmas tree smells so good.
02:00Their prices range from $85 to $120, depending on the size and type of tree.
02:06Is this our first holidays together?
02:09They also offer ornaments, wreaths, and accessories at an additional cost.
02:13This is like a total family Christmas.
02:16Oh, there you go.
02:16Yep, yep.
02:17Lift her up.
02:18Yes.
02:19All right.
02:22Everybody say Treezy.
02:25Treezy.
02:26All right.
02:27Thank you very much.
02:27So this makes a lot of sense for people that don't have time.
02:33You want the tree delivered as opposed to going to a farm to buy one.
02:36Is that who your customer is?
02:38Yeah, our customers need convenience.
02:40But the second thing, it needs to be an experience.
02:43I actually did this business.
02:451994, we became 535 X-mas.
02:49We got the phone number.
02:50We got a big five-ton truck.
02:52We put Christmas lights in the back of the truck.
02:54We had kids come out and pick out their tree.
02:56But still, in the end, people said it's not the same as going to the school lot with the fire.
03:02How did you overcome that?
03:04Well, when a nutcracker soldier comes with the tree, the kids are waiting in the windows.
03:10We get photos and videos everywhere.
03:12You deliver them in these beautiful people?
03:13Yes.
03:13Oh, that's so fun.
03:15So people watch on the app.
03:17They see that truck coming from the North Pole to their house.
03:21Oh, that's fun.
03:22Cute.
03:23Yeah.
03:23You're creating the magic.
03:25And so all your trees are real?
03:27Yes.
03:27Yes.
03:27So we have a farm in the eastern township.
03:30But that's the point.
03:32A farm has a limited amount of trees.
03:35Of course.
03:35Takes 10 years to grow, right?
03:37What we want to do is build a franchise operation.
03:41There's nobody out there that buys 50,000 trees and tries to sell it at different lots.
03:48That's a good point.
03:49I have never thought of that, that there is no brand that comes to mind that is Christmas
03:54trees.
03:54Exactly.
03:55So how long have you been doing the Christmas tree delivery business for?
03:59It's been now 10 years.
04:01We only deliver in Quebec.
04:02One out of 10 Christmas trees in Quebec is now a treasy.
04:07Wow.
04:08Come on.
04:08So you have 10% market share of Christmas trees in Quebec?
04:12Exactly.
04:12Yeah.
04:12That's amazing.
04:13What are your sales like?
04:15$1.8 million in Canada.
04:18Bravo.
04:18Yes.
04:19$1.8 million in one year.
04:21Yes.
04:21More like in one month.
04:23Yeah.
04:24Yeah, we start selling in mid-September.
04:26We have the early birds, right?
04:28They start calling us in July.
04:31So on the $1.8 million of last year, how much did you make at the end of the year?
04:3525% in Quebec.
04:37Wow.
04:37The logistics part of this is the real tough part.
04:40Yeah.
04:41And I feel like after all these years, that is your secret sauce.
04:45And that is where you are made or you're broken.
04:48When it comes to your profit margin.
04:50David, what is the cost then for them to buy a franchise?
04:54The cost is around $10 per thousand of population.
04:57So it will depend on the population of the territory they're going to build in.
05:01And then are you going to have any marketing fee royalties?
05:04Like, what's on top of that?
05:06It starts at 12% for the first $100,000, but goes down afterwards.
05:11So have you tried this yet?
05:13Do you have one franchisee even?
05:15Our first franchise will probably Hong Kong.
05:18Hong Kong?
05:20Hong Kong is, for me, it's a market I didn't know.
05:24But we have somebody from Canada that is over there.
05:27And they say they go crazy for Christmas trees.
05:30And it's rising up.
05:31And then how are you going to ship these trees to Hong Kong?
05:34You don't have a farm there.
05:36Well, the closer the market, the better.
05:38Those trees will probably come from the U.S., from Oregon.
05:41And you'll ship a tree from Oregon to Hong Kong?
05:44Yeah.
05:47One of the things that I've learned today is that you can actually franchise Christmas.
05:52It's not a business that I'll invest in, namely because of my belief, but I'm going to be out.
06:00I love that you're doing what you're doing, but I'm going to be out.
06:05Franchising this feels fraught with so many challenges.
06:09Yeah.
06:10And this is why we need you.
06:11In March America, we know that we can get 350 franchises, 35 million Christmas trees just in the U.S. every year.
06:21I want to do my out again.
06:23I want to say Feliz Navi no.
06:28David and Junior, I love Christmas.
06:31Like, December 1st, I got all the bells and whistles, and I'm just, like, wearing Rudolph nose, and I'm going nuts.
06:37I can see that.
06:38But it's a perishable inventory, seasonal, and I worry that you're going to Hong Kong without building out Canada first.
06:44I agree with Arlene.
06:46I wouldn't franchise.
06:48I'm out.
06:51So most would consider your business, like, a true Christmas miracle.
06:54Like, you have to work with intensity for a quarter a year, and you make an enormous lifestyle business.
06:59You can only sell to a franchisor once you have a brand.
07:02So you've got to walk before you run.
07:04I think right now, I wouldn't mess with your Christmas miracle.
07:08So I'm going to be out.
07:09I have a different perspective here.
07:13I like seasonal Christmas businesses.
07:15It is a short-selling season, but people are willing to spend.
07:20So I'm going to offer you $200,000 for 20%.
07:22Manjee, it looks great in a Nutcracker outfit.
07:27I know what that is.
07:28I know in four-inch heels whether I'm delivering any trees, but okay.
07:33Thank you very much.
07:35I think we'll accept your offer.
07:38Woo-hoo!
07:38Yes!
07:39It's the most wonderful time of the year.
07:41All right.
07:42Oh, thank you.
07:44I'm looking forward to it.
07:45Merry Christmas, everyone.
07:46Take care, guys.
07:47All right.
07:49It's not a miracle.
07:50We believed in our company.
07:51We knew we have something strong, and it was seen.
07:55And we're really happy of what we've struck.
07:58I bootstrap my company.
08:00I started 26 years ago, my brother and I.
08:02We started with $10,000.
08:04So you can bootstrap it.
08:06But Manjee, that's not fair.
08:07That's not fair.
08:08That's fair.
08:08I'm in the same goddamn industry.
08:09These guys put $500,000.
08:11Give me a break.
08:12Next, a couple from Montreal looking to share their modern twist on a traditional family
08:28recipe.
08:29Hello, dragons.
08:30My name is Miriam Jean-Baptiste.
08:32And I'm Stephen Charles.
08:33We're husband and wife from Montreal.
08:35And we are also the owners of Ellis Cream Liquor.
08:39So today, we are here to ask for $300,000 for 12% equity in our business.
08:45So dragons, we all know that every culture has that one special recipe.
08:50You know, the one that's passed down from generation to generation.
08:53Yeah.
08:54Well, in Haiti, that staple is called chemas.
08:57It's a beloved recipe rooted in tradition and celebration made from fresh cream, per grain
09:03alcohol, and mixed with some spices.
09:05But it was always homemade, never shared on the shelves, and rarely shared beyond our
09:10community.
09:11So that's why we created Ellis Cream.
09:13Oh.
09:14Oh.
09:14Look at that.
09:15Cheers, dragons.
09:16Cheers.
09:17Cheers.
09:17Cheers.
09:1820 seasons.
09:1920 seasons.
09:2020.
09:21Cheers.
09:22Congratulations.
09:23Cheers.
09:23Cheers.
09:24So what you're tasting is actually nutmeg, cinnamon, coconut, and vanilla all together.
09:28That's very good.
09:29Delicious.
09:30It reminded me of Christmas.
09:32Really good.
09:33Yes, but also what we wanted to do is to make something that could be consumed year-round.
09:38Right.
09:39This is why we asked our amazing bartender to do some cocktails that you could see the
09:43versatility.
09:44Stephens and Miriam suggest using Ellis Cream as a flavorful addition to any cocktail, such
09:51as a pina colada, espresso martini, or even an old-fashioned.
09:56Cheers again, everybody.
09:57Cheers.
09:58Cheers.
09:59Why Ellis?
10:01What's the brand?
10:02So Ellis is actually my initials with mixed with my grandmother's initials because we
10:06took my grandmother's version of it and commercialized it in the version that you see right there.
10:11Why don't you say cremasse here?
10:13You just say creme liqueur.
10:14We really wanted to make it a point that this is for everyone.
10:18So we want to be right next to the big brands.
10:21We want people to notice us.
10:23That's why you see the sleek bottle like this.
10:25It's a beautiful bottle.
10:27And it's been working.
10:28And right now we're actually at the SCQ in Quebec.
10:32We're in 12 states in the U.S.
10:33And we are soon to be also at the LCBO here in Ontario.
10:37And how much do you retail it for?
10:40In Canada, $37.75.
10:43And in the U.S. between $27 and $34 U.S.
10:46It's a premium product in both countries.
10:48It is.
10:49It is a premium product.
10:49Premium.
10:50What we see, though, is that people are starting to rise their prices a little bit with, you
10:54know...
10:54Oh, for sure.
10:55With everything going on.
10:55With everything going on.
10:56How do tariffs affect you right now?
10:59Because we borrow in the U.S.
11:00Yep.
11:01We got actually taken out of the shelves in SCQ.
11:04Yep.
11:04Right now, as we speak, we already have three co-packers lined up in Canada.
11:08Why are you making it in the U.S.?
11:10There's so much great cream in Canada.
11:12Yes.
11:12So basically, as you know, it is pretty hard to get into those liquor boards.
11:17Yes.
11:17So at the beginning when we started, we found it more easier to produce in the U.S.
11:23Isn't that crazy?
11:24There's so much regulation in Canada.
11:26Canadian entrepreneurs would have to go to the U.S.
11:28And then the SCQ reached out to us because the people requested the product.
11:33Wow.
11:33You must have, like, amazing sales because $2.5 million valuation.
11:38What are your sales?
11:39So in the past four years, we sold $1.6 million.
11:43Over...
11:43In total?
11:44Total.
11:44Total, yeah.
11:45What was the last year?
11:47So last year, funny story, we didn't do much.
11:49So our biggest year was 2023.
11:52We basically needed to change our logistic partner in the U.S.
11:56So everyone...
11:56So what was the number?
11:57What was the number?
11:5770,000.
11:58In 24?
11:59In 2024, yeah.
12:00In 2023?
12:01Uh, sorry, 568,000.
12:04In 2023, yeah.
12:05So you went from 568,000 to 70?
12:07Yes.
12:08Oh, my God.
12:09Just to piggyback on what Stephen was saying, this was really an issue that we got with
12:12an importer.
12:13But 25 is going to be tough, too.
12:14The number's not going to be good this year.
12:14We're going to get to $500,000 for 25 because we just secured financing for the production,
12:19so we're okay to go for this year and for the next three years.
12:22That all sounds expensive.
12:23How much have you invested into this?
12:25Yes, we invested at $1.8 million.
12:28Whoa.
12:29Wow.
12:29Wow.
12:30That's a lot of money.
12:32Where did you raise the money from?
12:34We actually got a fund out of Atlanta that actually helped us.
12:38A PE fund?
12:38It was a venture.
12:40Funny story is about...
12:42Another funny story.
12:43Another funny story.
12:44But this is actually a serious issue.
12:46We've been trying to raise money for a long time, and for people in minority-owned businesses,
12:51sometimes having harder issues, they actually found us and invested in us.
12:56The month after they invested, they actually got sued, and they were supposed to lead the
13:01next rounds and so forth.
13:02The fund got sued?
13:03Yes.
13:03Listen, the challenge that a lot of people don't appreciate is a challenge that black
13:08people have, raising money.
13:10How much have you guys put in personally?
13:12We put at least $500,000, yeah.
13:15Wow.
13:15How much do you have left?
13:16Right now, we have about $100,000.
13:20You know what, guys?
13:21The problem is, your valuation really is based on $70,000 in sales.
13:27Again, the channels are there.
13:29So, when you think about the money invested, I would think about the 12 states, I would
13:33think about Total Wine, I would think about the SAQ, I would think about...
13:36Well, that means that it's not selling, then.
13:38Oh, no, no, no.
13:38So...
13:39There is no way that with $70,000 of sales, even, to be honest, $500,000 of sales, that
13:45you are selling off the shelves at a pace that is actually real business.
13:50So, so, Manjit, I will counter that.
13:54Rootstrapping this ourselves in a regulated industry, it has its limits, basically.
13:59Well, it doesn't have its limits, I bootstrapped my company, I started 26 years ago, my brother
14:03and I, we started with $10,000, so you can bootstrap it, and it's within a business.
14:08But Manjit, that's not fair, that's not, that's not fair.
14:10That's fair, I'm going to say, goddammit, it's fair.
14:13Come on, it's fair.
14:13They put $500,000 in the business.
14:16It's not a fair comment.
14:17It's absolutely fair to say.
14:18They put $500...
14:19If there's anybody up here that has the right to say that, that's me.
14:21They put $500,000 of their money into this business, you can't say they didn't bootstrap
14:26it.
14:26That's not bootstrapping.
14:27What is bootstrapping your definition?
14:28You wrote a book about it, you should know it.
14:30Exactly, not having money.
14:35I'll go first.
14:36The cream liquor product category in North America is declining.
14:42I'm out.
14:42But if we're going to expand our line also...
14:45Don't blow any more money.
14:46Sell what you have on the shelf.
14:48Guys, guys, I wait.
14:50She's out.
14:50Are getting out.
14:51Yeah, no, no, no, no, no.
14:52She's out.
14:52The problem that I have is this.
14:56So I assess businesses based on the financials, the numbers.
15:00That's it.
15:01It's not emotion.
15:01No problem.
15:02Okay?
15:02Because you have a decline in revenue and because of the fact that you have a lot of headwinds,
15:08tariffs, not producing in Canada, not being an LCBO, all those challenges.
15:13This is all fixed.
15:14This is all resolved.
15:14I get it.
15:15But for now, it's going in the wrong direction and I can't be in because of that.
15:19I'm going to be out.
15:20It's a fantastic tasting product.
15:22I really enjoyed it.
15:23But I think you need to restructure your business and think about, you know, where you're going
15:28to make it, how you're going to distribute it.
15:30And while that's a difficult thing to do, it will help you immensely in terms of setting
15:34up your business again.
15:36I'm going to be out.
15:38Thank you, Arlene.
15:39I don't know the liquor business and I trust my resident alcohol expert here.
15:44But from a branding perspective, cremas, Haitian liqueur.
15:49That's what I wanted here.
15:51I think that name's golden, but for now, I'm out.
15:54Thank you, Brian.
15:56You guys had a lot of grace on your fire.
15:58And that trait will get you really far.
16:01But the problem is when you're down, you've got a discount to get out of the hole.
16:05And so I think Arlene's right.
16:06There's just a little restructuring that needs to be done in the business right now.
16:10I really wish you well.
16:12But unfortunately, I'm out.
16:17The bar is closed.
16:19The bar is closed.
16:20Yes, a tough market.
16:21I do believe they probably shouldn't call it cream, though.
16:24You're right.
16:24I think they should probably stick to their heritage.
16:26They should restructure it and start again.
16:29We're going to continue.
16:30Of course.
16:31We came too far to stop now.
16:33There's lots to give her credit for.
16:36For sure, you started at a Comox.
16:38How big's your team?
16:39It's just me.
16:40Wow.
16:41You're looking at us.
16:41I'm a one-woman village.
16:42I started this business after I got laid off, and it was an opportunity to look at what I really wanted in my life,
17:02and starting my own business was the thing I'd been waiting for.
17:05Now, let's see if all the pieces she's put together lead to a picture-perfect deal.
17:12Hello, dragons.
17:13My name is Kelly.
17:14I'm from Comox, B.C., and I'm the founder of Villager Puzzles.
17:18I'm here to ask for $250,000 in exchange for 10% of my business.
17:23That's a lot of puzzles.
17:24It's a lot of puzzles, let me tell you.
17:26So, when my kids were little, like a lot of moms, hobbies and interests were kind of a distant memory.
17:33I was in the bookstore one day, and I saw a puzzle on the shelf, and I thought, I'm going to give that a try.
17:38It left me feeling accomplished and relaxed, rather than overwhelmed and anxious.
17:43But I never found the art was quite my style.
17:47I mean, antique dolls and frolicking horses, we can do better than that.
17:50So, I started to find local artists whose art I loved.
17:54This idea was just an idea until the day that I was laid off from my day job, and I used that as the catalyst to growing Villager.
18:03That's a puzzle. That's beautiful.
18:05Very nice.
18:06Oh, I like those watercolors.
18:08Villager is a brand of puzzles designed by Canadian women artists.
18:13So, every artist receives a royalty off of every puzzle we sell.
18:17So, when my business grows, so does theirs.
18:20I even named my business Villager to reflect this community of women supporting one another.
18:26So, I've heard that dragons are very competitive.
18:29Yes.
18:30So, I would like to invite all of you to a head-to-head puzzle challenge.
18:35Kelly's puzzles can be found online and in over 400 novelty gift stores across the country.
18:41I want West here.
18:43Brian, don't worry. I am really good at this.
18:46I know.
18:46So, in the boxes are the missing pieces.
18:49Three, two, one, go.
18:53They retail for about $32 each.
18:56Here we go. Here we go. We're done. We're done. We're done.
18:58Got it.
18:58Done.
18:58Oh, we're done.
18:59Oh, we're done.
19:00Look, look.
19:01We have pieces here that don't.
19:03Yeah, I'm sure it doesn't.
19:03Okay, except that one.
19:05Except that one.
19:05Playing the puzzle.
19:07Puzzle champions.
19:08Oh, my gosh. Embarrassing.
19:09Yeah, like Brian. Brian.
19:12Claiming a technical error.
19:14Yeah, blame the game, Brian.
19:16So, Dragons, beside you, I have hand-chosen a puzzle just for you.
19:22This is nice.
19:23Kelly, I look at this and I can only imagine the demand has changed over the years.
19:28Yes.
19:28I know we as a family used to do one every Christmas.
19:31We'd put it out and the whole family was into it until the iPhone came out.
19:34What is the demand for the space?
19:36Well, I think that there is a movement towards people who are looking for alternatives to
19:40being glued to your phone.
19:43Yep.
19:43A lot of people use it for stress relief, but we're also seeing people seeing this as a
19:47really nostalgic thing.
19:49Kelly, what were you doing before this, though?
19:51I had a really cool career in marketing.
19:53I worked for some of Vancouver's fastest-growing companies, and then I got laid off from my
19:59job after 20 years, and I decided it was time.
20:02Wow.
20:03As a marketing person, you've got the artist profiled and her story on the back.
20:08Yeah.
20:08It was really important to me to give the artist credit.
20:11This was a way for up-and-coming artists to earn a supplemental revenue stream and still
20:17see their art in puzzles, and look how beautiful they look.
20:20With respect, I don't see that when I look at this.
20:25Why did you choose not to put it on the front of the package?
20:27So I really felt that the art was what stood out most.
20:31So as you flip it over on the top, on the sides, it talks about designs in Canada.
20:35It talks about supporting women artists.
20:37It talks about the artist behind the puzzle on the back.
20:41And so what's your return customer rate?
20:44So keep in mind, I just launched about 20 months ago.
20:47So my return customer rate so far is 15%.
20:50Ooh, that's low.
20:51Well, so what I'm seeing is that people are actually buying full bundles.
20:55So one of my most popular products that I'm selling is a bundle of four or eight puzzles.
21:00So Kelly, what were your sales?
21:02So my last 12 months of sales was $800,000.
21:06Whoa.
21:06Good for you.
21:07Wow.
21:07Good for you.
21:08And you just started.
21:09How much did you make on that, Ada?
21:11So I'm going to roll back to the calendar year.
21:14So I made $125,000 off of $550,000.
21:18Really?
21:19Okay.
21:20Good for you.
21:21That's good.
21:21Bravo.
21:22I'm pretty proud of where we are.
21:24I don't have a problem, Kayla, with what you're doing.
21:27It's really the valuation because the company is so young.
21:31Is it worth $2.5 million at this stage?
21:34I've put together a revenue projection based off of what I'm seeing in Western Canada.
21:41Ontario is largely untouched.
21:42Untouched by you, but not by the puzzling community.
21:46It is much harder in bigger, highly densely populated areas.
21:50And to get their share of wallet, it's not that simple.
21:53But she said she modeled out your revenue.
21:55Have you modeled out your cash flow needs?
21:57I have.
21:58Tell me about that.
21:59I put in an initial investment of $30,000 in order to fund my first inventory.
22:05And I've been growing off of the proceeds from the business until now.
22:10You still haven't explained why it's worth $2.5 million.
22:12I've been able to grow this business at a really rapid rate by proving out what I see working.
22:20And she's making money.
22:21Let's give her some credit.
22:22She's making money, but not enough for that valuation.
22:24That type of valuation, though?
22:26I'm not saying her math is right.
22:27Don't get it.
22:28But I am saying that you are far ahead of a lot of people who haven't figured out the business model or the revenue model.
22:35How do you make money and keep some and call it a business, not a hobby?
22:38She's got to be able to defend her valuation.
22:40She has to be able to stand in front of us and say, it's worth $2.5 million for this reason.
22:45She's giving you some answers.
22:46If you don't like them, well, that's up to you.
22:47I've heard them.
22:48There's lots to give her credit for.
22:50For sure.
22:50You started at a Comox.
22:52How big's your team?
22:53Just me.
22:54Wow.
22:55You're looking at it.
22:56You're looking at it.
22:56I'm a one-woman village.
22:58You know when I talk about the early valuation, right?
23:02Those are things that investors look at.
23:04It's called key person risk.
23:06If something happens to you tomorrow, how does this business continue?
23:10Is the question.
23:11So what's your answer to that?
23:14You know what?
23:14I'll be honest.
23:15I don't have a contingency.
23:17Kelly gets hit by a truck plan.
23:20That's the risk.
23:24If you had told me that you're going to hire people to mitigate that, that would be a good
23:28answer.
23:29But because you haven't solved that problem, I'm going to be out.
23:32I am really hung up on $2.5 million.
23:37I think you would probably, if you're lucky, get somewhere between half a million dollars
23:41to a million dollars in valuation.
23:43But as an investment, I'm going to be out.
23:46I think you have something magical here with the artists.
23:49If you build that up, it will make it very difficult for other people to copy this business.
23:53I wish I was the missing piece of your puzzle, but I'm not.
23:57So I'm out.
24:01I do think that you're onto something here.
24:03So I will absolutely help you with distribution and help you build all those pieces to the
24:08puzzle.
24:08I would offer you $250,000 for 30%.
24:12Thank you, Manjeet.
24:15I'd love to hear from Brian.
24:17I like this business, and I like you.
24:21I think you've got a great cause, women artists.
24:24My mother is one.
24:25Love her dearly.
24:27I'll give you $250,000 for 25%.
24:31What?
24:32Whoa.
24:33You have a fight.
24:34I think that those artists, they are a tight, tight community, and they will blow this business
24:40up if we can tap into them.
24:42So you had two offers.
24:44Wow.
24:45Wow.
24:45Look at that.
24:46Kelly.
24:46Oh, okay.
24:51This is a big day for my business.
24:57Brian, I would like to take your offer.
24:59Oh, my God.
25:01Amazing.
25:02That underkill.
25:03You got scooped, Manjeet.
25:05Congratulations.
25:06I'm the worst puzzle doer, but we did a deal.
25:09Oh, Kelly.
25:10Amazing.
25:12You're awesome.
25:13So excited.
25:14Congratulations.
25:15Well done.
25:16I wanted to expand the village, and that felt like the right choice.
25:23Oh.
25:32I knew Toothy was destined to be on Dragon's Den and work with Arlene.
25:36Sorry for calling out someone.
25:38I love all of you.
25:39I do.
25:39Arlene, you're on the hot seat.
25:41Next to face the fire, this Ottawa couple and their smiley mascot hope a polished pitch makes their dream of a dragon partner come true.
26:03We like that.
26:04Oh, yeah.
26:04Here we go.
26:05Oh, okay.
26:06Is that a big tooth?
26:07Is that tooth?
26:08Is that tooth fairy?
26:09All right, Toothy, there's a step here.
26:11Just make sure you lift your foot.
26:13It's a tooth with a crown?
26:15You can do it, Tooth King.
26:16Hello, Dragons.
26:17Hi.
26:18My name is Stacey Lavula, and this is my husband.
26:20Keith Langto.
26:21And this is our friend Toothy.
26:23Toothy.
26:23Toothy.
26:24Good job.
26:24You're getting paid well.
26:25We're from Ottawa, Ontario.
26:28And we're here today to ask for $60,000 for 20% of our business.
26:32Dragons.
26:33For a lot of parents, it is a struggle to get them to brush and floss without a fuss.
26:38And let's not forget about going to the dentist.
26:40We faced a lot of those challenges with our own daughter, Piper.
26:43So when Piper was just three years old, we were told she had 10 cavities.
26:47Oh.
26:48What?
26:49Not only that, she had to undergo general anesthesia to get eight metal caps and two teeth.
26:55Oh.
26:56So after that shame and guilt, I also had to deal with Piper's dental anxiety.
27:01I tried finding resources to help ease that anxiety.
27:05I couldn't find what I was looking for.
27:06I went home after that surgery, and I told my husband, I'm going to create something myself.
27:12Okay.
27:13My friend Toothy is our lovable character that helps make brushing and flossing fun for families.
27:18Aw.
27:19So what you're seeing here is our Toothy toolkit.
27:22We make them for $8.
27:24We retail them for $49.99.
27:25$49.99 retail.
27:27Wow.
27:27Yeah.
27:28Tool number one is our fun educational book.
27:31Teaching children how to brush and floss properly, but also preparing them to be brave at the dentist.
27:37Tool number two is our accountability sticker.
27:40Toothy's there cheering them on, just like how he does in the book.
27:43And tool number three is our comfort plush Toothy.
27:46We created this so children can bring to the dentist.
27:49And on the back of Toothy is the golden pocket for the Tooth Fairy.
27:52A perfect spot to collect those healthy teeth.
27:55How dare you just put it under a Ziploc under your pillow.
27:58And let's all say goodbye to Toothy because the Tooth Fairy wants him back in Fairyland.
28:03Okay, Toothy.
28:03Bye, Toothy.
28:05Bye, Mr. Toothy.
28:07Toothy, see you later, brother.
28:08So what is your guys' background?
28:10So my background is psychology.
28:12I like that you have a psychology background because a lot of these things, there's an art and a science kind of mixed together.
28:18Correct.
28:18It's actually exposure therapy.
28:20We had dental hygienists and dentists praise us, saying thank you for showing what it's like to bring your child to sit in a scary dentist chair.
28:29You made it in a fun, calming way.
28:30Exactly.
28:31And how did the two of you meet?
28:33Oh.
28:34Oh.
28:34Do you want to see?
28:35So we are high school.
28:37No, no.
28:37Let's do it.
28:39Wrestling?
28:40No.
28:41Put him down.
28:42Put him down.
28:43Put him down.
28:44I let her do that.
28:45I let her do that.
28:45He let me do that.
28:47We met in high school.
28:49So we were both captain of the wrestling team.
28:50I was captain of the boys.
28:51She was captain of the girls.
28:52Oh, look at that.
28:53And then we fell in love.
28:54Aw.
28:55So why are you guys here on Dragonstone?
28:57Like, what's the...
28:58Great question.
28:58We've kind of reached a stage where it's just the both of us, but we're trying to keep up with demand now.
29:03Well, tell me about the demand.
29:04So we launched in 2022.
29:06Our first year was $45,000.
29:08Our second year was $46,000.
29:10And then this past year, we closed off at $90,000.
29:13So we're very excited about that.
29:15We've gone to women's shows, parent-child expos, cottage shows.
29:18Now, when you go to those shows, do people understand the product?
29:22Because I'm sorry, I just saw that on a shelf.
29:24I would just think it's a stuffy thing.
29:25That's exactly it.
29:26Yes.
29:27So when we were explaining it to...
29:29Like, doctors?
29:30Doctors and doctors.
29:31We signed up 100 dental clinics for new patient gifts.
29:35Okay, but you were hand-selling each one of those.
29:37I mean, it sounds like you're trying to do what Elf on the Shelf did.
29:40There was the cartoon.
29:41Similarity.
29:41There's the book.
29:42There's the Elf on the Shelf.
29:43You can put dresses on them and so on.
29:45The Sophie the Giraffe type of thing.
29:47Yeah.
29:47Yes, it is like that, except Elf on the Shelf is for December.
29:50Yes, but this is to make it fun.
29:52But Stacey, just pause for a quick second.
29:55Pause.
29:56The businesses that have made it in this space have a different kind of gamification of it.
30:02Like, Elf on the Shelf, this really cute game where your kids go to sleep and the elf shows up in different places.
30:07And Sophie the Giraffe had a real utility because when kids tease, they really need to put something in their mouth.
30:12Like, I'm struggling to see where that is here.
30:17Okay, so the nice thing with the plush, when the child loses their tooth, they don't have to put it under the pillow anymore.
30:23So we're solving a pain point for parents.
30:25The second one is...
30:26That is not a real problem.
30:27I think you're inventing a problem, to be quite honest.
30:29This is how we're making brushing fun.
30:33It's something they look forward to because lifelong habits is going to create lifelong happy adults.
30:39I see it as a big product.
30:41Our goal is to have as a household name.
30:43You know, a great pitch is a transfer of passion, right?
30:46You, your passion is very evident to all of us, for sure.
30:51No doubt.
30:51You said something, Stacey, that was powerful.
30:53You said, I can see it.
30:55Thousand percent.
30:56And when an entrepreneur says they can see it, they're talking about the painted picture in their brain.
31:00What does five years look like?
31:02We're working with...
31:03Sorry.
31:06Maybe you can get me to start tearing up stuff.
31:08I joined a mentorship program for moms in business, entrepreneurs, so that we don't feel alone.
31:14And I told my 10-year vision to my accountability partner, and I told her, I said,
31:19I am working with Arlene Dickinson from Dragon's Den.
31:23And she's like, really?
31:25I was like, no, no, no, this is my vision.
31:26And whether or not we get a deal today, it's the fact that we're still on our mission to make brushing and flossing fun for families.
31:34And that's all I wanted for our family.
31:38Sorry.
31:39No need to apologize.
31:41No, I mean, the best way to create the future is to envision it in your mind first.
31:45And you need to see it and believe it.
31:48And I hope you do it differently.
31:48I'm just so happy these are tears of happiness.
31:50Well, Stacey, good news for you is that Arlene is here.
31:55The bad news is, because you're here for Arlene, I'm out.
31:59Oh, okay.
31:59You're a new mom.
32:03I am a new mom.
32:06I think you need to refine the characters so there's a little bit more to the game.
32:14And if you can do that, you can actually probably build a pretty big business.
32:17But I'm out for now.
32:21Just think, you're so early.
32:23I wish you all the best, but I'm out.
32:25Um, you said earlier you were building an experience.
32:29I believe you can do that, but something's missing.
32:31I am out.
32:33Arlene, you're on the hot seat now.
32:34You're on the hot seat.
32:35This is really a deal for you.
32:37No, Stacey and Keith, like, your energy is, it's amazing.
32:43You have no need to apologize for crying.
32:45I cry all the time on this show.
32:47I do.
32:48I think it's a great business for you guys.
32:49I don't know that it's an investment, but I will tell you one thing.
32:53I will work with you.
32:54I will help you.
32:55I mean that.
32:56And I don't make that offer lightly, but Stacey, if you see it, I see it too.
33:01Thank you so much.
33:03So essentially, guys, you got what you came for.
33:05You didn't get the money, but you get more than that.
33:07You get some advice.
33:08I think that is worth more than what we're asking.
33:11Is it okay if we hug you?
33:12Yeah, absolutely.
33:13You can hug me.
33:15I'm a hugger.
33:16Thank you so much.
33:17You're so sweet.
33:21I'm taking him home with me.
33:23Oh my God, you got me in tears.
33:26Arlene, what's it like for people to cry over you and stuff like that?
33:30Is that...
33:30Well, you cry over me out.
33:31Do you find it burdensome?
33:32You're so jealous.
33:34I'm so happy right now.
33:36Oh my God.
33:37I hope my mascara is not...
33:38My mascara looks great, baby.
33:39For sure.
33:42Think you have an idea for the next billion dollar big brand?
33:46Hello, dragons.
33:47Come on in.
33:48Ahoy, dragons.
33:49Oh my.
33:50Auditions are open.
33:52And we want to see you in the den.
33:53There is a pandemic.
33:55This is so beautiful.
33:57What have you got to lose?
33:59Wow.
34:00Oh yeah.
34:00This is our moment to shine.
34:02Yes, yes.
34:03Stop dreaming.
34:04Start bitching.
34:05Don't you want a bite of the next big thing?
34:07Yes, we do.
34:08Let's make a dent.
34:09Good luck.
34:10Cheers.
34:10Apply now.
34:12Coming up.
34:13So have you been able to get rid of any of the copycats now with your patents?
34:17Oh man.
34:18It's me a nightmare.
34:19I remove around 100 sellers.
34:23What?
34:23Whoa, that many copycats?
34:25A hundred?
34:25Holy smokes.
34:26We are doing this for my mom because she was the one that inspired me to actually bring
34:47this product to life.
34:48Now, these two brothers from Vancouver are hoping their laundry solution won't get hung
34:55out to dry.
34:57Hello, Dragon.
34:58My name is Eric Mendes and this is my brother.
35:01Hi.
35:01I am Hermine Mendes.
35:02We are from Vancouver, B.C.
35:04And we are here today asking for $200,000 for 8% of our family business laundry total.
35:12All right.
35:12Let me take you guys back in time.
35:14I was living in a really tiny apartment in Vancouver.
35:16And I had no space for laundry baskets.
35:20So I had that idea.
35:21But I was broke.
35:23No English.
35:24No idea how to start a business.
35:26A few years later, I got my citizenship and I had a chance to bring my parents from Brazil
35:31to live with me.
35:32That's awesome.
35:33And then I saw one day my mom doing laundry.
35:35That hit me because I knew that I have a product that could help her and a lot of people.
35:40I created Laundry Turtle.
35:43Laundry Turtle.
35:44It's the easiest and quick way to move your laundry.
35:49From washer to dryer, dryer to your room.
35:52Saving time, saving space, saving your back, your knee, your sanity.
35:57The product, as you can see, looks like a turtle.
36:00But the name, actually, is because of my mom.
36:04I always call her Tataruguinha.
36:06That means little turtle in Portuguese.
36:07It starts like a family business.
36:11But now we are helping thousands of people to make laundry easier.
36:14I want to demonstrate how this works.
36:16Yes.
36:16Yes.
36:17Let's do it.
36:17So you put inside.
36:19Rotate the drum.
36:20Okay.
36:21Interesting.
36:22And then you grab it.
36:23And then you just scoops it all up and then puts it in.
36:26Okay.
36:26Rotate the dryer.
36:28Okay.
36:28And then it's over.
36:29That's so smart.
36:30Yeah.
36:30He's kind of clever.
36:31When you close it, you put it back.
36:34You put it in.
36:34Look at that.
36:35And you save a lot of space.
36:36And that's it.
36:37Eric, that's a pretty cool idea.
36:40Oh, yeah.
36:41Actually, we have the simple for you guys.
36:43Laundry Turtle comes in two sizes and is currently sold exclusively online.
36:48It's very stretchy and it seems very flexible.
36:51The large size sells for $24.99.
36:54And it could actually also be a cape.
36:56I could be like a super person.
37:02You look like a ninja turtle.
37:04Season 20.
37:06We've seen everything.
37:07Oh, man.
37:08Okay.
37:10Did you have a lot of people telling you this is crazy?
37:12No.
37:13For this idea, everybody actually said that I'm going to get rich.
37:16Oh, wow.
37:16Okay.
37:17The opposite.
37:18I mean, you're right.
37:19It's really convenient because a lot of times you just carry the laundry hamper.
37:23Then it needs space.
37:25Yes.
37:25This doesn't.
37:26And how did you and your brother get into this together?
37:30I moved to Canada by myself.
37:31My brother moved to Canada a few years later.
37:34And so what did you do when you came here then?
37:37When I came here, I started working as a graphic designer in a software company.
37:40Oh, you did?
37:40So you did the design for this?
37:42I did everything.
37:43The color, the graphics, the logo.
37:44I worked there for 13 years and just stopped working there because of this product.
37:50You're all in.
37:51Yes.
37:51You've got a patent on this?
37:52I have a patent in the U.S., I have a patent in China, and I have a patent pendant in Canada.
37:58And how much have you invested in the business so far?
38:00Uh, I started investing $10,000.
38:04That's it?
38:05Yes.
38:05Wow.
38:06That's what I saved for like 10 years working.
38:10For 10 years, you saved that money and said, I'm going to do this now.
38:13Yeah, we launched in 2022.
38:15I think it was two weeks I was sold out.
38:17How many units was that?
38:19It was 1,000 units.
38:201,000 units in two weeks.
38:21Yeah.
38:22Pretty good.
38:22I was not expecting this success.
38:24No, totally.
38:25So I had to order more than the copycats started showing up.
38:28So have you been able to get rid of any of the copycats now with your patents?
38:33Oh, man.
38:37It's been a nightmare.
38:38In 2023, I removed around 100 sellers.
38:44What?
38:44Oh, that many copycats.
38:46A hundred.
38:47Before that, I had like 700.
38:49And you can't defend that because you don't have the cash.
38:51Yeah, I did it.
38:52I was like actually reporting one by one by myself.
38:56What a waste of time.
38:57Yeah.
38:57But it's a very good lesson for entrepreneurs.
39:00Oh, yeah.
39:01You can invent something, and even if you have a patent, you need the money to defend that patent,
39:06or else it's not really that valuable.
39:07Try to describe this product without the word lounge turtle.
39:11Yeah.
39:12You can't.
39:12It's like calling something to Linux.
39:14You created the category, exactly.
39:16So actually, my volume search on Amazon is around $40,000 a month.
39:23Yeah.
39:23Holy smokes.
39:24That's way more demand than I thought.
39:26Okay, so I'm dying to know.
39:27Like, how much did you sell last year?
39:292023 was 1.4.
39:321.4.
39:33And last year, it was $1 million.
39:35$1 million.
39:36Yes.
39:36Why did sales decline over that time?
39:40Copcats.
39:41So are you focusing your time on removing the sellers, or are you focusing on selling your
39:47own brand?
39:48Stop the Copcats, because it's 40% of my market.
39:51You'll never solve the problem, though.
39:52You'll never stop 100% of them.
39:55Yeah.
39:56Well, guys, if they took 40% of his sales, right, they're going to take 100% of your sales
40:00at some point.
40:02There was a time where I was out there, and one of my best friends went into competition
40:07and formed the Trash Busters.
40:08And I spent the next two years taking down signs, figuring out how to get his customers
40:14that he was taking from me.
40:15And it became an obsession that it was the first time in my business my sales went flat.
40:20Yes, you've got to protect your name, but also, how do you get out there as quickly as you
40:24can and own the brand you've created?
40:26Yeah.
40:27Eric, you guys, listen.
40:29When you came to this country brand new as an immigrant, you used $10,000 to create a
40:34business that had to speak at $1.4 million in revenue.
40:38The challenge for me in the business is this Copacat issue.
40:42I can't invest in it, so I'm going to be out.
40:45I think that this is something innovative.
40:48I think you have still a real uphill climb, and it's going at a turtle pace.
40:54I wish you all the best, but I'm out.
40:59I think it's literally just a DM strategy.
41:03Yeah.
41:04$200 for $15 or something.
41:07So, Eric, Michelle and I would make you an offer, because we think what you really need
41:12is marketing help and just getting, like, this is not that complicated to solve if you're
41:17prepared to listen.
41:19So we would offer you $200,000, but because it's the two of us, we would want 20%.
41:25I think you've got an offer here that's better than I could ever do in this space, and I'm
41:34going to be out, but happy to support.
41:36All right.
41:37I appreciate, I appreciate everybody here.
41:41Why do you guys think about $200,000 for 10%?
41:50Just hold on.
41:51Sure.
41:51We do the $200,000 for 10%, and when they can put us back the $200,000, they can buy
41:56their equity back.
41:57Hold on.
41:58Yeah, you can do that.
41:59You can do that.
42:00Okay.
42:00So we'll do $200,000 for 10%, and whenever you want to, you can buy out our 10% equity for
42:12$400,000, but once we get your sales to $2 million, we would want a 5% royalty.
42:19And at that point, we'll just stay at a royalty.
42:22But no equity.
42:23You own it all.
42:24Yeah.
42:24That is very generous.
42:27Yeah, that's pretty good.
42:31Say yes.
42:33You weren't the boss, I mean, right?
42:35Of course, let's do it.
42:37All right.
42:38Let's do it.
42:39Good negotiating, guys.
42:41Congratulations.
42:41Yeah, nice to meet you.
42:42Thanks so much, guys.
42:43Congratulations.
42:44Congratulations.
42:46I'm glad they didn't turtle.
42:47Ah!
42:50I'm glad you did.
42:52I'm glad I did.
42:53I'm glad I did.
43:02Next time on Dragon's Den.
43:04What the heck is going on here?
43:08What the hell?
43:09I have to really feel like we're perfect in all aspects.
43:13I wasn't crazy about our initial packaging.
43:15I had to have it perfect.
43:17Sabrina, you started this company, right?
43:19We all did.
43:20When you talk, Stephanie, you say I a lot.
43:24How much time and money did it take you to come up with this?
43:27Yeah, so we built this in under a month.
43:30One month?
43:31Oh, come on.
43:31Wow.
43:32Mic drop.
43:33Mic drop.
43:37Put some money right in your mouth.
43:39Because your mother said that you know it's real.
43:44Put some money in your mouth.
43:47And your hands are up on the wheel.
Be the first to comment