Mark Hanson knows all about the power of the pitch.
Hanson and his company’s new, improved garbage dumpster were featured on the Oct. 9 episode of Dragon’s Den, the show where aspiring entrepreneurs pitch their business concepts and products to a panel of Canadian business moguls.
His 40-minute presentation taped in April was whittled down to about three minutes for last week’s broadcast.
Hanson, who grew up in Silver Creek, was not allowed to divulge until after it aired whether he received a favourable answer.
As it turned out, he was one of the lucky – or astute – ones.
Hanson was asking $150,000 for 10 per cent of his garbage compactor business, which features the BinPak. The BinPak will compact six times the amount of garbage, as opposed to a three-to-one ratio for a standard dumpster. The door is only two feet off the ground and it’s sealed, so no porblems with wasps, rats, seagulls, bears and raccoons, he says.
Instead of trashing the BinPak idea as they often do with pitches, the dragons were receptive – except for Kevin O’Leary. The chairman of O’Leary Funds frequently belittles participants with his harsh, no-nonsense approach to their business ideas. Hanson’s was no exception.
After hearing how many BinPaks Modern Waste Products Inc. had sold in a year, O’Leary said: “You haven’t defined your business plan... I’m out.”
He also asked what sound a racoon makes being compressed six to one.
Hanson quickly replied, “We don’t know, because they can’t get in.”
But negativity wasn’t the reaction of David Chilton, author of the bestselling, The Wealthy Barber nor of Bruce Croxon, co-founder of online dating business Lavalife.
Chilton offered Hanson $150,000 but, instead of a share of the business, asked for $1,000 a unit until he gets his money back and then $300 a unit after that.
Croxon wanted in as a partner and Chilton agreed.
The final deal between Hanson and the two dragons was – $150,000 for nine per cent royalty.
“It was a terrific opportunity, and it will help us create awareness of the BinPak,” a happy Hanson said following the broadcast.