Peter Can't Believe A Pyramid Scheme Business Model's Being Pitched | Dragons' Den

Hello

dragons

, my name is Paul Lobo, this is Barry Richie, our company is Air Oasis Limited, the purpose of us

being

here is to receive £125,000 of your money and upon return we will give you 10% of the share capital of our company . Our product produces water from air. Barry is not going to give you a brief presentation on our product, hello

dragons

, what I'm going to do first of all is give you a quick, real quick science experiment, just to show you what the final product that comes out of our machine is. It's the pure drinking water itself, Paul, if you want to pour me a glass of tap water, I'll have a glass from our machine that's coming in shortly and this is water that's been made from air in the last hour.

What we're going to do very quickly is open this electrolyzer in which a small electric current will pass through this water and shortly a color will appear and it will show you basically what's in this water and what we're looking for. because in ideal water it comes out yellow, this just shows that there are separate mineral grains in the water with the rest of the water that we have here, it will probably be a very different color and it will show what's there as we go We go, that's a fist for a while. I'll just tell you a little about this machine.

We have exclusive distribution rights to sell this machine throughout the UK. We also have Iran, Syria, as well as Sri Lanka, India and Nepal. The air is sucked in from the side here, passes through a condensing unit like a dehumidifier, then passes through a seven-stage filtration system and a UV light to kill any bacteria in the water, giving you the water purest and freshest drinking. On the planet £4 million a day is spent on bottled water in this country. We

believe

that by educating the public and showing them that our water is much better than bottled water and we

believe

that this machine with electricity and running costs produces water for 7p a liter are going to change the way people buy water in this country.

This is from the tap. With that you clean your vegetables. This is our ice water only with separated mineral grains and we can take any questions you may have bold claims about the purity and great taste of your water ambitious plans for market penetration Barry Richey and Paul Lobos propose a £125,000 investment in the air of his company Oasis has certainly not lacked confidence, but what is behind his confident statements? Theo Paphitis wants to know very bad I'm Theo o7p Aleta yes it sounds cheap when you compare it to bottled water yes, but it's not cheap when you compare it to just filtering because there are units like that that are simply filled to exist, that's certainly the difference is that these don't need a water supply, so they will be very good in humid countries, without a doubt, where you definitely can't bring water into a unit, so the UK market won't actually be a very Good market for this, I think.

There are actually many people who are interested in reducing their carbon footprint right now. Tell me about it. How do they make eight million? How does this reduce my carbon footprint? Well, let's look at the eight hundred and eight thousand machines there are. there right now with the thought big plastic bottles on top the plastic there is no plastic there is no bottled water there is no diesel there is no John in his shorts approaching so get all the bottles to make the whole process less. I've already done it. I already solved it, they are all connected, well, then Oh, Johnny doesn't appear in shorts, okay, of course, it doesn't work, okay, then, but you are comparing a mini with the rolls-royce because at the end of the day this is the water this produce this does not say swiss vodka this is the best vodka the dragons are feeling the full force of Barry James Caan's bullish sales pitch decides to seek refuge in the company's finances a new lease these lease them or sell me sell what Surprising, no lease , we are selling the efficient machine which sells for six hundred and ninety-nine pounds.

Yes, we have a domestic unit that converts tap water into pure water, which we sell for five hundred pounds and how much does it cost you to buy them? They come to me for £318 in the UK, okay, and they will sell it to the end user for six six nine nine, meaning they use a direct sales force selling directly to consumers. Barry and Paul swear by healthy products. margins but Duncan Bannatyne thinks he detected a flaw in his plans he doesn't like that he destroys them he says something you said in your presentation what you are going to do is educate the public you haven't explained how you can educate the public and you are not going to educate the public , they will probably still use tap water or drink bottled water, Duncan, as soon as you do this test, which is very visual, oh, really, that's the politeness that you can't travel around the country knocking on people's doors to the get in. two glasses of water people look at the difference buy one of these machines you can't do that that's what we can't if they can't how did you get the audience?

We only have a hundred kits in small cases. like the Kirby vacuum cleaner, these are the insects under them, in the bed, under the microscope, we have 300 people, little beauties, to go door to door on commission. I would just like to please the mother bunny, the point I want to make is It's not that you can't moan knocking on doors. What I'm saying is that you can't afford to knock on doors. There is not enough money. She's knocking on doors. And the holy people look. Will you let me come in and show you? you these two glasses of water, I'm sure about the difference, you can buy my machine for 500 pounds, that's fine, but because there is no customer, we buy all the kits, people are taking part time commission, they only get one sale out of a hundred pounds they make three in a week they get 150 per sale it's a good old fashioned multi level

pyramid

direct market you run the risk of convincing yourself to go down those stairs without an investment okay the reason I asked you, Have you been a Kirby selling? person is that I could have told you that you were because actually what you used to do is bombard people in rooms and bombard them in exactly the same way that you're trying to do to us now until they can figure out that they can buy that carpet cleaner.

I have seen the sales techniques. Yes, I have to say it really bothers me. You are talking about a

pyramid

selling

scheme

. I have to tell you for my part that as a combination I would run a mile from the first one, so I have no reason. to invest could click the atmosphere in the lair is darkening a furious Debra Medan wants nothing to do with the making and she is not the only dragon who feels alienated by the pitch as a

business

proposition does this excite me for 150,000 pounds? Not working with Barry would drive me crazy.

I don't think I can handle it and for those reasons, guys, I'm out. Two dragons are out so far. Barry has been dominating proceedings. Peter Jones wants to know more about his

business

partner. Paul. How do you work?. this guy um, very good, I love his enthusiasm, no, I understand Barry, I don't understand you leaving, do everything Barry says, no, not at all, no business, I always agree, one of them is unnecessary, How much money have you earned? Do you have money? To put it yes, I have put it in, I put in 150,000 pounds, so you put in 150,000 of your own cash.

Yeah, and Barry, I'm about 50 and about a million years old from hard work. Do you have more money? Paul, of course. Do you have more money? How much more money do you have? Well, I don't think that worries you. It does concern me. How much money do you have? Probably about ten million in the bank. So I don't think it's a valid figure. ask right I'll tell you why it's a valid question if you have the money why don't you put it in let me explain why it's right we want your experience your knowledge so we can actually go but why should we?

I give you money so that you get money from me, which we are not a charity, we will not allow you, you know, charity, you want my knowledge and my money, absolutely exactly, I do not have a mug written on my forehead. You know, Peter Jones, who is not committed, has criticized the fact, the dragons are clearly infuriated by the businessmen themselves, but can even Berrien. Paul's only hope now is to save his speech by proving that the water tastes as good as they say, but it tastes terrible, a terrible taste. Watford honest conversations but no one saw him taste war is that water because it's warm that's why it's an unusual taste something about this don't go out why is there something in it nothing in it use your glass and go get a drink in which the water chaos the lair let me make the cold has the dragons declare that the water in the barian pools is totally unpleasant it is disgusting my children will give it back to you Theo Paphitis demands an explanation taste tastes terrible or not it is not says terrible but it certainly doesn't taste so good as it should, not bought, it is a spectacular new machine that needs to be washed and everything else correctly, that is why yes, it needs to be set for a longer period of time in Order 5 hours to work properly What is the temperature of those 21 degrees buried?

Listen to me. I'm getting really upset now. I'm not complaining about the temperature but about the fact that it has a terrible, awful aftertaste, so don't do it. excuses about the temperature, I'm out, it's all over for Barry and Paul, Theo Paphitis criticized them. Now Duncan Bannatyne and Peter Jones step forward to say what bothers me is that you did all these tests in this war to prove that your war is the best yes, so I tested your water yes and it's rubbish, well I tested it more, say the same thing and then you said that's because that machine hasn't been downloaded so you can see our machine in its full working order, it would have been fair for this machine to be here overnight, then that would have been where you left, they would have justice, you you went for an hour and a half night, now you know it, but it's not really like that. answer a question and you know I'm not going to invest in it so I'm out Paul Barry you basically bought a product here that lives or dies on the quality it produces can I say at all times that we have tested the water among new dragons .

The first time it was like that, that's all I can tell you. I think everyone else has said enough and I don't think you need to be insulted here, so good luck. in your efforts, but I'm not going to invest in the business and walk away, okay. Barry and Paul felt the full force of the Dragons. Roth, it may have been a sure start, but it takes more than a strong sales pitch to break away. the dragons of their cash Barry Paul, what did you think of that? Well, we knew you know what dragons are like, did you know it wouldn't taste good with that amount of sitting time beforehand?

I did as soon as I looked at the reading on it the water was 25 degrees it was too hot it should be four but Theo kept pointing out that it wasn't the temperature he was worried about so the cold and colder temperature disguises the strange taste no They have to disguise it. but since the filters are working the temperature drops as it passes through the town it had not passed through the filter there was not enough time ok thank you