Jeff Alpaugh Custom

Jeff Alpaugh & Emilee Boychuk
Fredericton, NB

The pitch

Jeff Alpaugh & Emilee Boychuk from Fredericton, NB, pitched Jeff Alpaugh Custom in Season 12, Episode 7, asking the Dragons for $100K for 10% of the company.

Asked for$100K for 10%
Valuation$1Mimplied by the ask
OutcomeDealwith Michele Romanow and Michael Wekerle
Final deal$50K for 30%valued at $167Kplus a royalty: 10% royalty on shirts

Offers in the Den

Dragon	Offer	Result
Joe Mimran	No offer made, costs too high and not different enough for the market	Out
Jim Treliving	No offer made, does not know enough about the business	Out
Arlene Dickinson	No offer made, cannot add value in this industry	Out
Michele Romanow	$100,000 for 40% equity plus a 15% royalty and a $100,000 order of shirts	Withdrawn
Michele Romanow and Michael Wekerle	$50,000 order for shirts, 30% equity stake and a 10% royalty, jointly	Accepted

Jeff Alpaugh and Emilee Boychuk, from Fredericton, New Brunswick, asked for $100,000 for a 10% stake in Jeff Alpaugh Custom, a custom dress shirt company. Shirts are manufactured in Vietnam, retail for $120 and cost $60 to make, and are sold online and through one retail store in Fredericton; since launching in February 2016 the company had sold 1,760 shirts to 555 people in eight countries, with online sales making up 20 to 30% of the business and a projection to double revenue to $270,000 that year.

Joe Mimran, Jim Treliving and Arlene Dickinson declined, citing high manufacturing costs, unfamiliarity with the business, and inability to add value. Michele Romanow initially offered $100,000 for 40% equity plus a 15% royalty and a $100,000 shirt order, then partnered with Michael Wekerle on a revised joint offer of a $50,000 shirt order, 30% equity and a 10% royalty, which Jeff Alpaugh and Emilee Boychuk accepted.

Pitch details from CBC’s Dragons’ Den pitch page.