Fad? Dragons divided over jewellery candle craze! | Dragons’ Den – BBC

Fad? Dragons divided over jewellery candle craze! | Dragons’ Den – BBC


Hello, Dragons, my name is Claudia
and this is my partner Alex. Hiya. We are the founders
of Imperial Candles. We are here today asking for
£100,000 in exchange for 10% equity in our business. Imperial Candles –
we hand-make soy scented candles and other products with
a hidden jewel inside as the element of surprise. We started the company five years
ago, at the age of 22, from a one-bedroom apartment while studying computer science
at university. Since our humble beginnings
a lot has changed. We are currently operating
from a 6,000 square foot facility. We have a large
social media following with almost 400,000 fans
on our Facebook page and we have generated £7 million
in turnover to date. OK, so how does it work? Simply light up the candle and after
a couple of hours of burning you should be able to spot
in the wax a little colour package. Simply remove it and discover
a new dazzling piece of jewellery. All of our jewellery are made with
95-sterling silver or gold and can be worth anything
between £10 and £2,000, so you never know
what you’ll get inside. Thank you for listening
to our pitch. We would love to give you
some samples. Scented candles and bath bombs with
jewellery concealed inside… TOUKER: What’s the value of
a ring like this? ..are the offering
from Romanian entrepreneurs Claudia Negoescu… It’s 45. £45? Yes. ..and Alex Ianas. PETER: What about this?
It’s about 65. That’s the most expensive. DEBORAH: Hold on, hold on, hold on. Oh, that’s very pretty. The couple are looking for £100,000 in return for a 10% share
of their business… 35. 35? Yaaay! Winner’s corner! CLAUDIA LAUGHS ..but will this investment
opportunity be another hidden gem for the Dragons to uncover? I’m Sara. Hiya. Wow, impressive – seven million
of sales since you started. That’s good going, it really is. Thank you very much. How long have you been going
and will you just break me that seven million down? We’ve been running five years now. So, first year we did 750,000, gross profit of 309 and a net of 54. The next year we did 1.9 million… ..with 750 gross and 32 net. And last year we did 1.5 with a gross of 510 and a loss of 34,000. Mm… Why has your gross profit, year by year, been decreasing? Basically, advertising worked
quite well when we started. We created a Facebook page and we started doing
Facebook advertising… Right. ..but over the next couple of years, let’s say, all the social media
platforms changed a bit, and we didn’t get as much traction. And then our raw materials, we actually buy the majority
from America and Europe. Right. So, you can imagine when
they’re selling… The dollar? Yes. So, that affected our prices
by around 20%. Yep. Everything went up. And because we manufacture
everything in the UK, the labour got more expensive,
so all our overheads went up. So, at the moment, are you losing
money, month by month? Yes. This year we’re going
to make a loss. I think it’s going to be around
50,000. 50,000 loss. Yeah. How much money have you got in the
bank at the moment? Not too much. Not too much? Yeah. Around £5,000. So, you’ve come right to the brink. Yeah. Touker Suleyman is concerned
that Claudia and Alex could be teetering on the edge
of a financial abyss… ..and Peter Jones wants to find out
precisely how their precarious situation is affecting the pair. Alex and Claudia,
I think what the reality is, you’ve got a declining business
and a declining business model. Are you worried? CLAUDIA: I think I’m putting a lot
of pressure on myself because I do all the marketing for the company. How do you live? Er… Basically… We manage! Yeah. What we do, we use
the business card, so if we need to pay for something,
we pay with that card. We don’t even move money
to our own personal account. Well, you haven’t got it, have you? That’s a huge strain
on your family life because there’s no escape, and at the same time, you’re living
in the middle of a business that, at the moment, you’re running
out of money with only £5,000 left. You must be worried that
at some point, those candles, the lights are going to go out. To be honest,
even though it’s silly to say, we’re in a better position now
than we were two years ago when we had more turnover, because we learned so much
more and we’re confident that we can turn this around. What are you planning to do? Basically, last year,
we outsourced our distribution, so I think that helped
a bit with our cash flow. Moving forward we’re actually
looking at working with someone that can actually make
the candles for us so that we can get a fixed cost. One thing is the cost
of the product, which you can engineer
to make it cheaper, but what I’m concerned with is
the cost of acquisition to get the sales. If you spent £1 in marketing, what sales is that currently
generating to you on Facebook? Around £5. £5? Yeah. So, that’s OK. Things looked bleak
for the candle entrepreneurs, but the healthy ratio
between their marketing spend and subsequent return has offered
a faint glimmer of light. Deborah Meaden, however, is concerned that Claudia and Alex’s
product could be a flash in the pan. DEBORAH: So, looking at this, my worry is that there
could be an underlying issue there and that underlying issue could be,
it’s lovely, it’s a novelty, let’s do it, but, actually, that consumer moves on to the next novelty. Can I say something? You have an
answer for that? Yes. Because this product
is quite unique, I think we can do at least
ten million quite, quite easily, because, basically, we based our projection on actually what our competitor
does in France and Germany. They’re actually doing
around ten million in France. And is your product cheaper
than theirs? No. They sell for the same price, but the quality of the jewellery
is better, and when people start getting more
options and seeing our products, they prefer our product. SARA: But the bottom line is you’d be second to market going up against an already
established business, trying to knock them out
when you don’t have something that’s more unique. I’m going to tell you something that
we shouldn’t be telling you, but they’ve actually made an offer
for our business. They’ve offered to buy
your business? BOTH: Yes. For how much? Half a million. Take it. No, honestly, guys, that’s great. Well, we don’t have that offer
any more cos we didn’t go for it. I really think if you can go and try
and get that half a million offer back on the table, honestly, I… You should have snapped their hand
off when you had the chance. It’s probably a good time for me
to tell you where I am. You’ve shown that you are
successful entrepreneurs and part of being a successful
entrepreneur is knowing when this idea’s run its course and
it’s time to run onto the next one. My advice would be, go out and try and find the next
jewels in the candles. I’m sorry, guys. It’s definitely a no from me. I’m out. A blow for Claudia and Alex as Sara Davies neglects
to follow their example, getting out while the going is good. Can the potential popularity
of their product across the Channel convince Deborah Meaden
to part with her cash? Guys, um… I don’t see this
as this huge business that’s going to knock the main
player out of the market in France, but I do see it as an amazing thing
that you’ve done already, a huge learning circle, and then you just look around
and do the next thing. So, good luck for the next one,
which I know you’re going to find. I’m out. PETER: Alex and Claudia… I’m not going to invest today because I just don’t think
that this is something that A, can’t be replicated
very simply, and B, you’re kind of out of funds and you’re going to need a lot of
help to get it to grow again. So for that reason, sadly, I’m out. Thank you. Thank you. A second and third Dragon go out in rapid succession, and Claudia and Alex’s prospects
of a deal are melting away. Age before beauty… Can Touker Suleyman
reignite their hopes? What is the potential, if you had
sufficient working capital, of this business? I think it has a massive potential. Who’s the biggest candle
brand in the UK? BOTH: Yankee Candle. Give me four big stores
that they’re in. Basically, they’re everywhere, so, from Tesco’s…
Hallmark, Card Factory… In all the stores. You know, I can see what can be done
with this business… ..but you’ve made one mistake today. You’ve come here asking for £100,000. Far too much money. Look, the only thing I could do is
I’ll make you an offer. I would give you half the money, £50,000… ..for 20%. So, I’ve given you a lifeline. Thank you. Thank you. An unexpected glimmer of hope
from Touker Suleyman, but Alex and Claudia still need
a matching or better bid from Tej Lalvani
to make a full offer. So, I have a couple of questions
for you guys. Can I get a bit of water?
Yeah, yeah, please. Thank you. Have some water. Given the parlous state
of their business, the stakes are high. Are you OK? I’m OK, thank you. OK. And, for Alex, at least… Sorry about that. That’s all right. ..the pressure is beginning to tell. So, what’s your current
equity scenario? Do you both own 50% each, how
does it work? It’s 60-40. 60-40… And there’s no other
shareholders involved? BOTH: No. The concern I have is what Deborah touched on about it being a fad. Can I say something? Basically, if
we would only have one product, yes, you’re totally right, you can’t run a business
on only one product, but basically we started
to do the candles… We were the first in the world to do
them with the jewellery inside… We started a kids’ range
collection… You start from one product, but you can create a whole brand.
Like a gift company around it. Right… I like you guys. I think you’re determined. You’ve learnt from your mistakes. OK, so, look,
I’ll match Touker’s offer, which is half the money, £50,000, for 20%. BOTH: Thank you. Can we have a second?
You have a minute at the wall. BOTH: Thank you. The Dragons are driving
a hard bargain… All of the money,
and two investors, but in exchange
for four times the equity the pair were originally
looking to give away. Thank you for your offers. Basically, we know you take
a risk on us, so we do understand that… ..but we were wondering
if you were willing to drop to 25% after you recoup your investment. I believe there is something there, but we need to really grow it and hopefully we’ll grow it so much
that you’ll be putting in an offer to buy out those competitors
in France. TOUKER: I think there’s a lot of
work to be done here, guys, but it’d be worth more than half
a million to you, that’s for sure, in a year to 18 months. Yeah, we’d love to… Great!
Excellent. OK. Brilliant news. BOTH: Thank you. Looking forward
to it. We do appreciate it. Claudia and Alex have done it… TOUKER: Candle king and queen! Their business appeared
to be on borrowed time… SARA: Congratulations.
BOTH: Thank you. ..but they leave with £100,000 and the backing of two Dragons for whom manufacturing and selling
is second nature.

Randy Schultz

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100 thoughts on “Fad? Dragons divided over jewellery candle craze! | Dragons’ Den – BBC

  1. I AM IRON MAN says:

    Jenny leaves the den after a day at work: I'm out!

  2. I AM IRON MAN says:

    Interesting buisness

  3. miknes12345 says:

    Bless them, such a nice couple. I feel sorry for them having to give up so much of their business, but at least it means they can stay in business. I think they made the right decision, it was accept the offer or go under.

  4. Stewart Boyle says:

    Glad you've begun editing the start of the videos to jump straight into the pitch.

  5. gabriel069 says:

    felicitari guys <3

  6. Kaustubh Patil says:

    God bless Touker and Tej! Good luck to these genuine souls🙏🏻

  7. Justin G says:

    I’m out ‘Jenny’

  8. RegalSir says:

    They love telling people to talk to the wall 😂

  9. Connagh stokes says:

    I liked them I thought it would of been an amazing idea and I 100% of invested!

  10. Cheddar Cheese says:

    i'm jenny and i'm out of the show

  11. Oscar Egbogu says:

    This company should be on here, in this comments section, making the most of the extra and free publicity. I am surprised how so few actually use this to gain more traction.

  12. Sadik Meah says:

    With Jenny gone the dragons den is now functioning on all 5 cylinders

  13. hugh curran says:

    Jenny.. i pawned all my jewellery cause im broke so im out

  14. Kata S says:

    hi from romania

  15. Ian Campbell says:

    Is it me or does he look like Freddie mercury

  16. Voicist says:

    We've been going for five years and now we're losing money … Dragon's Den?

  17. Al Zahir Zabaidi says:

    Wait – Jenny is out – the door before the camera started rolling

  18. d f says:

    Hmmm because its oversaturated? Everyone is doing it?

  19. Alaurah Willow says:

    Why does the guy beginning every sentence with ''Basically''? 😖

  20. Jonathan M says:

    The smile on the polka dot lady when Tej matched the offer, it was such a joyous smile for the couple

  21. Jonathan M says:

    I wonder did Jenny really know what show she was on, maybe she will wake up and realise that she was meant to invest

  22. d f says:

    IDIOTS ITS A DAMN MLM COMPANY!!!!

  23. d f says:

    First in the world!?!?! LIARS 🤣🤣🤣🤣🤣

  24. d f says:

    You're going to need that money to pay the lawsuits lmfao

  25. Chris Thomson says:

    so basically their company is worth nothing at all.

  26. Vitalstatistix Stats says:

    Since Jenny is Out in this episode there is no reason for me to watch it either. I am out

  27. acan thus says:

    They based everything on impressing the folks in the old country even if they have to live on dry bread in reality.

  28. Mike Sangha says:

    Jenny rings up the show and says I know I’m not in the show but I’m out…

  29. acan thus says:

    Honestly, who wants a cheap trinket that one didn’t even chose. That dragon will never wear that ring again.

  30. Nathan Scott says:

    How much is a toooooooooka U valuation madcunt? About forty five pounds?

  31. 1980’s Guy says:

    Seems everything and everyone gets on Jenny’s wick , she is always so hateful and nasty to other younger women who are more attractive than her ( not that this girl Is a looker ) too personal as well and she’s a co o,tee waste of a chair …so for those reasons I won’t be paying any attention to Jenny unless she keeps drawing attention to herself with her snide remarks and bitterness ❌

  32. Jellybean says:

    Jenny "I'm not in this episode . . . so for that reason . . ."

  33. Kay Sim says:

    More useless ideas. ¬.¬ Thnx but na'

  34. Stephano GamerHD says:

    Saw this item on tik tok, it looks awesome, I want one

  35. Sam Foster says:

    So pointless just buy a chain or ring???

  36. Ashley Hofmann says:

    I love these candles, ive had two so far and the jewellery is lovely

  37. Top Videos Now says:

    Jenny: "I'm not sure of the direction this company is going, so for that reason…. I'm route."

  38. Bryant Koh says:

    Take a shot every time the narrator makes a pun

  39. Simon Lowe says:

    God bless them with financial bliss and kindness in spirit to helping their independence X this I pray Lord Jesus Christ

  40. Rachel says:

    Thought that was Ben Shapiro in the thumbnail

  41. Lightzpy says:

    Jenny: "I like don't like light, so I'm out"

  42. Nathan Sieber says:

    100k for 10% of a company that had 7M turnover ???

  43. Athang Ghag says:

    Sarah: I will tell you where I am.
    I am in Jenny's place so I am out!

  44. fu ck says:

    Jenny watching on TV – " I'm out "

  45. Coco says:

    Lootbox candles?

  46. Hazza says:

    foregiens GET EM OUT AM I RIGHT

  47. CHRISTIAN LADY says:

    wow the new dragon woman is so common

  48. Adrian Coe says:

    Two great determined people…I will be buying a candle…and if never bought a candle in my life!!

  49. Basant Singh Sandhar says:

    I love Jenny in this one

  50. christospify says:

    Next day tej and touker sell the company for 500k and take their 20% lol

  51. Obscenery Films says:

    Im really glad they got the investment, they werent full of sh*t and knew their business inside out

  52. Cano says:

    sara is so freaking genuinely nice. love her

  53. Asphalt Ricky says:

    Understanding that woman is impossible

  54. Martin Grimmer says:

    BBC Execs: Please Jenny just make an offer or we'll have to fire you..
    Jenny: …. and for that reason, I'm out..

  55. Mikes Karaoke says:

    I can't understand what the man is saying😂 light up the candle and something.

  56. Motley Stew says:

    Historically speaking, isn't "a flash in the pan" a sign of "GO-O-O-O-OLD!!!" ?
    PMSL

  57. Tareboss T. says:

    Oh, they're Romanians…
    Brexit intensifies

  58. Harry Smith says:

    Surprised they were offered £0.5 million on a declining business. Should have certainly sold and used that money to invest in a new business.

  59. Phil Shen says:

    I'm a lit candle… Jenny blew me out

  60. Phil Shen says:

    He sold his company to elon musk for $500 million

  61. Orochi Yagami says:

    Touk-Dog in tha hizzouse

  62. Orochi Yagami says:

    Touk-Dog in tha hizzouse

  63. Renaissance Ear-Candy says:

    Before I clicked this I was trying to work out whether it was going to be candles with jewellery inside them, or tiny candles you can wear around your neck.

  64. Becky Cairns says:

    I actually love these candles. My sister and I have gotten one each Christmas for the last three years, and also a bath bomb. They're really great and the jewellery is beautiful. Most we got was my sister's ring that was almost £300.

  65. Jo Raston says:

    I’d say that the hype around finding jewellery in the candle is dying. We have a similar thing available here in Australia and basically it gets very disheartening when all you get is basically cheap costume jewellery.

  66. Nigget-tv-videos says:

    great business people? i could sell stuff at a loss to, i could sell £1 coins for 80P and sell millions, but if i dont make money after 5 years, i am not a great at business, and if i dont accept 500k for a failing business then i'm shocking

  67. Benny G says:

    Lovely people with a great business, I think they will do well.

  68. ROXI says:

    I love Tej

  69. BMXSSEY says:

    Sara davies: “Is this the chair Jenny sat in all these years?”

    Producer: “yes”

    Sara: “Then for that reason, im out”

  70. Nando Vee says:

    Jenny candle : light it and she jumps out

  71. Whitney young-Sanders says:

    I love sara Davies, this entrepreneur couple truly needed a lifeline. Their company was hanging by a thread.

  72. ffrrannk says:

    Jenny: this candle smells like Christmas dinner, and for that reason I'm sprouts.

  73. Jus Badd says:

    Jenny's sitting at home saying im out

  74. Bulasturu Bula says:

    That girl is cute.
    And for that reason : i'm out

  75. Roger Ivy says:

    I miss the outer Jenny

  76. Kaatni Kaatni says:

    Jenny emailed the producers: I am OUT!

  77. Ben Jauncey says:

    I know they were in a bad financial position but holy shit did the dragons take advantage

  78. Saul Savelis says:

    22/12/2019

  79. Mike Khlebas says:

    Isn't it basically a lottery which requires a license and massively regulated? 🤔

  80. madquest8 says:

    Every woman on the UK dragons show is a hog. On Shark Tank Austrailia.. they are all hot! LOL

  81. moaz42 says:

    See you later find another dragon hahahahahahaha

  82. Dark Knight says:

    You have to take risks, you might have to turn down half a million to succeed. Excellent attitude from this man!

  83. Jude Aghedo says:

    I love this guy called Tuker, he always play a fatherly role to the entrepreneurs. Good luck duo

  84. Tim Dawn says:

    I can't help but feel sorry for Jenny missing out on the free sample worth £35.

  85. Kingjinder says:

    That's a first, a declining business yet they get two dragons on board how the fu*k you work that one out?!

  86. The Shiv says:

    Boris and Natasha like to hide the surprises.

  87. BY says:

    ❤️❤️❤️ I didn’t see this on in my subscriptions

  88. ozz says:

    So crazy to me that you make millions a year and lose money.

  89. Yellow Penguin says:

    So basically gambling for jewelry. Doesn't the UK have very strict laws about that?

  90. Quantum Realm says:

    Are they stealing downs from west Africa now?

  91. Damien O Callaghan says:

    THANK
    GOD
    FOR
    SUBTITLES…………….

  92. Elena Land says:

    I knew a girl that worked with a company that specialise in jewellery that’s gemstone focused and she had the same company ,candle with a ring /necklace inside and so it’s hardly an original idea

  93. Liz Clegg says:

    I wish people would stop making Jenny out jokes, she's like a bad memory which I want to forget, and the comments keep reminding me. Let us all just be grateful for Jexit and get on with our lives.

  94. Razzaclart says:

    Latka Bravis …

  95. 洞宾吕 says:

    Jenny is so out, she doesnt even need to b here

  96. Cheeky FE Kerry says:

    Candles are the default gift for anyone you don’t know well enough to buy a more personal gift for. No one would buy these for themselves. Secret Santa candles in offices everywhere but not these candles as over the ten pound limit. No one buys candles for themselves in UK as we have this thing called electric lighting. If you by any chance DO PURCHASE smelly candles, guaranteed you will never light them unless you’re into witchcraft, in which case you would probably want black ones.

  97. Klodian Klodi says:

    I’m Jenny and I’m OUT 😂 even she’s not here 😂

  98. Daylover says:

    wow they not been sued yet? like i hope there is warnings on the candle don't burn your self

  99. Sir Sidney Ruff-Diamond says:

    Sara is cute

  100. Xylo Arch says:

    2 words ad fatigue, I can guarantee that the downfall of their business is due to not switching their marketing technique and haven't breached in too newer niches. This is the problem when running your own ads without enough experience you need to know what to do when in a situation like theirs

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