Marcus Lemonis is Looking For “The Partner”.

(Insert Homer Simpson’s voice…) Woohoooo Whoohooooooooooo0000000000000000

I’m Estatic we’ll continue to see Marcus on TV even after the profit. CNBC prime show, The Partner featuring Marcus Lemonis will debut in summer 2016.

You bet your behind we here at theprofitfans.com will be following this new show and providing a platform for all you fans to discuss and comment the episodes here together.

Based on the Apprentice format, this new reality-tv show will be the platform for Marcus to find a partner to manage businesses he invested in the profit. In the end, a candidate will win the show and be chosen by Marcus.

the-partner-marcus-lemonis

CNBC says “Candidates from diverse business backgrounds will compete for the opportunity of a lifetime; a position working alongside Lemonis and an equity stake in a multi-million dollar company.”

So, if you think you have what it takes to become a business partner of Marcus’ as well as having a good TV personality, this is your chance to get on the partner.

Click here to signup for The Partner Casting.

Good luck to you all competing and we look forward to reviewing your performance on the show. For the rest of us who will be watching from home, mark your calendars and keep checking back on this page for updates.

Take care.

Rob

 

 

Planet Popcorn Given Second Chance

Planet popcorn update.

So Marcus revisits Sharla McBride planet popcorn episode. He says that Sharla lost her Disney contract and decided to contact Marcus again for another chance.

To Marcus once again meets Sharla and this time she’s dressed up elegantly and looks responsible.

sharla-mcbride-new-look

She shows Marcus around the business which looks a little bit more organized this time. Especially if you consider that that the last time Marcus went there, there was cash on the floor everywhere.

She even tells Marcus she has a bookkeeper now and that the relationship between her and her mom (who she may take out a mortgage on her home to help finance the business) is now good.

She now pays her mom’s mortgage in the bid to help repay the loan her mum gave her.

So there is no more money on the floor of her office, there are security cameras installed to keep an eye on the cash room and her business. The money gets put into a safe before it is transferred to the bank all this under the watchful eye of manager and the cameras.

Sharla has even updated her inventory system.

All this sounds very impressive but is it just the new face for us the TV viewers. Considering how much backlash got, even on this page, I believe it’s in her best interest to try to clean up her public persona.

It may also have to do something with it getting back that Disney contract does it?

Marcus and Sharla sit down to make a new deal.

They agreement to an investment of $50,000 for 40% of the business and the royalty of 50 cents for each pack of popcorn sold.

marcus-sharla-new-deal

Looks like Marcus is back in the popcorn business WITH SHARLA?????????

Well, theprofitfans.com wish them the best and hope nothing crazy happens in the future.

Rob

My Big Fat Greek Gyro NOW The Simple Greek – The Profit Season 2 Episode 17

Marcus Lemonis Vs My Big Fat Greek Gyro

The Company: My Big Fat Greek Gyro Now The Simple Greek

The Owner(s): Mike Ference and Kathleen Kamouyero-Ference

Website: http://www.thesimplegreek.com/

Intro

In this episode of the profit, Marcus Lemonis visits My Big Fat Greek Gyro. A small 5-locations gyros franchise that is looking to expand its business.

my-big-fat-greek-gyro-location

This McMurray Pennsylvania located business is run by husband-and-wife team Mike and Kathleen has seemed to lost their handle on  the business.

mike-kathleen-greek-gyro

So Marcus Lemonis goes in knowing that he would have to give a sense of direction and put a concrete plan into action to give the business a chance to grow.

Sons Andreas and Michael are now also helping to run the business and are in the process of buying the original location of my big fat Greek gyro.

Mike will like to expand the franchise business since it’s a good moneymaker. The franchisees pay USD10,000 upfront and an ongoing monthly royalty fee for using the brand. However, it looks like the franchise model is very dysfunctional and needs to be put right if the business is to succeed.

Problems/Issues In The Business Found By Marcus

  • Low quality food with little to no original Greek presence.
  • Serving expensive frozen food.
  • Unprofessional branding with the current trademark conflict.
  • Lack of leadership.
  • Under-performing franchises.
  • No help and assistance to franchisees.
  • Small tiny business location infrastructure and kitchen.

During The Show…

So we find out that Mike, is responsible for My Big Fat Greek Giro brand name and this is in a trademark conflict with another company using a similar name.

Sons Andreas and Michael are having friction with their step dad Mike about how to run the business. Marcus who has Greek origins, doesn’t understand why the restaurant doesn’t reflect the Greek culture as much as it should.

It looks like Mike shout at everyone and is trying to tone down the Greek heritage of Kathleen and her sons Andreas and Michael.

Marcus Lemonis sits down with Mike and Kathleen to discuss the state of the business. He finds out that my big fat Greek gyro has just recently set up the LLC for the franchise business. So even after running the business for over 10 years, My Big Fat Greek Gyro is a relatively new business when it comes to facts.

Mike tells him that in the most recent fiscal year, the parent location of the business generated revenue of $300,000 making in that profit of around $100,000. My big fat Greek gyro has no debt but lacks the cash flow. Marcus is impressed with the return on capital considering the states in which the business is.

The Deal

Marcus sits down with Mike and Kathleen to work out the deal. He is not happy with the total lack of support Mike provides to their franchisees. The business model needs a total makeover.

Kathleen ( who by now we know truly wants to invest everything into the business she loves) agrees with Marcus about dedicating more time to helping out their franchisees.

She feels held back and wants Mike to give her more of a free hand at running the business with the ideas she has.

The crux of the matter is that at the end of the day, Marcus really likes the financials of the business. It’s a money generating machine and with a little bit of tweaking, the potential to make money is huge.

Marcus offers My Big Fat Greek Gyro $350,000 for 55% of the parent company and full control. Mike counters he wants more, Marcus puts pressure on them and Kathleen agrees to accept Marcus’ deal.

They all agree to take Marcus’ check and the partnership begins.

The money will be invested in the franchise part of the business as that is where Marcus will make his returns from.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Create a new name and branding for the business
  • Reorganize the franchise
  • Update the menu to reflect more of the Greek culture and cuisine
  • Restructure the business
  • Add more fresh and authentic home-made food items
  • Get rid of frozen food items to maximize profit.
  • Install free Wi-Fi at the locations
  • Simplify the ordering process

Conclusion and Updates on the Business

After the deal Marcus takes Mike and Kathleen to meet all the franchisees to fixe the relationship and try to restore faith in them. He pledges to put as much money into the franchisee’s business to help them make money.

Marcus Lemonis believes that simplifying the process of the restaurants and making the ordering process more efficient is the best way forward. The location in Mount Lebanon was in the worst state so Marcus decides to try out the new business concept there first.

He renovates that restaurant at a cost $85,000 but it now fantastic. All of the locations will be renovated so they can all have the same look and feel ala McDonald’s.

the-simple-greek-mt-lebanon

Next, Marcus drops a shocker. He renames and rebrands the business “The Simple Greek“.

Kathleen hates the name, she says it kind of sounds pejorative to the Greeks. After a little bit of convincing she finally accepts that it looks nice but we see she still doesn’t really like “what it says”.

the-simple-greek

So the future looks very bright profitable for the new The Simple Greek gyros franchise. It now reflects the very high standard which will surely invite many more franchisees from all over the country into the business. This is what Marcus plans and it will be the way he makes his money back.

We wish The Simple Greek all of the best and will be following up with any new updates we find.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for checking us out..

Rob

<< Visit the previous episode ASL Sign Sales & Service – The Profit Season 2 Episode 16

ASL Sign Sales & Service – The Profit Season 2 Episode 16

Marcus Lemonis Vs ASL Sign Sales & Service

The Company: ASL Sign Sales & Service

The Owner(s): Anthony Leggio and Kristin Leggio

Website: http://aslservicesmb.com

Intro

In this episode of the profit, Marcus visits a one-stop shop sign manufacturing shop called ASL Sign Sales & Service located in Surfside Beach on the South Carolina coast.

asl-sign-sale-service

Created with the loan from Anthony’s father of around USD220,000, ASL Signs have both the infrastructure and machinery to manufacture and service:

  • Outdoor advertising Signs.
  • Banners.
  • For sale signs.
  • Signs on buildings.
  • Back-lit, front-lit and non-lit signs.

Anthony Leggio the owner, is a self-professed go-getter. He’s a go-go guy and incredibly ambitious. He wants to become anthony-asl-signsthe biggest signs vendor in the state, stop dealing with small mom and pop shops and go national. Is this episode going to be another delusions of grandeur situation?

ASL Signs as a business is doing pretty well thanks to its huge margins. In its 2nd year of operation, it generated a revenue of USD300,000 with a profit of around USD45,000. Antonio however is not satisfied and wants much more.

As the business already owns great infrastructure and machinery, Marcus believes that the real way to increase the business will be to work and think smartly, more efficiently and grow strategically.

Problems/Issues In The Business Found By Marcus

  • Total chaos in the sign showroom.
  • Personal finances to be sorted out
  • Lack of efficient leadership and know it all attitude
  • Disorganized business process from sales to production.
  • Short temper and disrespect by Anthony.

During The Show…

So even with all of his confidence it looks like Anthony doesn’t really know the exact steps to take in his business to create a functioning process. He didn’t even know what to do when a client came into the office asking for a refacing of his advertising sign. He looked totally lost at a sign of the potential customer.

To be fair, ASL Sign Sales & Service has a very clean financial situation with a lot of money in cash receivables and not too much debt. That is if you don’t count the USD200,000 investment from Anthony’s father.

Marcus is impressed with the growth and management of the business and I think it’s all thanks to Kristins’ management so it’s a shock to know that she doesn’t even have an equity stake in the business nor does she take a salary.

The Deal

Marcus sits down with Anthony and Kristin to find out why he was called to the seemingly healthy business. Anthony tells him of his expansion dreams. He was to tap into Marcus’s rolodex and influence to be able to get the bigger clients that he feels the business needs to explode.

Marcus reveals that he wants to get into the signs business simply because of how lucrative it is. The question is if Anthony’s business is the right one to partner with.

Marcus decides to hold off making a deal so he can look more into the business and see if he can change and improve the process. If he feels the time is right then he would offer ASL Signs a deal.

Looks like Marcus has learnt from his bad business experiences with previous episodes of the profits. He’s holding onto his money until he sees that investing is the right move.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Fix the process
  • Cleanup the highly cluttered business premises
  • Improve the presentation of the signs inside the shop.
  • Anthony has to delegate the right jobs to the right people

Conclusion and Updates on the Business

So Anthony just can keep his mouth shut even in front of a client and a potential sale. He tells Marcus that he wants neither a deal nor his money all he wants from him is his (signs) business.

Jeff, a previous client of ASL Signs contacted Marcus via Facebook. He warns Marcus about the bad reputation Anthony has in the small town and tells him he personally wasn’t satisfied with the work done by ASL Signs. Anthony even sued Jeff instead of refunding him (just USD600) for the sub-par work done.

Taking into account Anthony strong headed attitude and his short temper which got him into a heated discussion with Marcus. He even made Marcus drop the “Who Do You Think You Are?” bomb for the first time on the profits

Marcus calls together the key members of ASL Signs and tells Anthony that he will grant him his wish of not getting any money from him. He refuses to make a deal with Anthony and walks out the door.

Anthony breaks down and apologies to his family.

Too late now, because Marcus has walked out of the door and sometimes you don’t realize what you haven’t you lose it.

So the go getter ends up not getting anything this time.

I hope you enjoyed this review of this episode.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for visiting.

Thanks again.

Rob

<< Visit the previous episode Shuler’s BBQ Bar-B-Que – The Profit Season 2 Episode 15

>> Visit the next episode My Big Fat Greek Gyro NOW The Simple Greek – The Profit Season 2 Episode 17

Shuler’s BBQ Bar-B-Que – The Profit Season 2 Episode 15

Marcus Lemonis Vs Shuler’s Bar-B-Que

The Company: Shuler’s Bar-B-Que/BBQ

The Owner(s): Lynn and Norton Hughes

Website: http://www.shulersbbq.com/

Intro

In this episode of the profit Marcus Lemonis goes down south to meet Shuler’s BBQ.

A Latta South Carolina based all-you-can-eat barbecue buffet run by married couple Lynn and Norton Hughes. The name Shuler is however is of their adopted son and this is the legacy Norton and Lynn want to leave.

norton-lynn-shulers-bbq

Shuler’s BBQ serves Authentic South Carolina ribs, pulled pork and chicken. It has become a kind of the Mecca down south for all kinds of barbecue lovers. It attracts a lot of clientele who drive from very far in some cases just to sample its  southern home-made cooking.

shulers-bbq-location

Marcus sees huge potential for growth especially since the barbecue restaurant doesn’t lack the clientele.

Marcus is also very impressed with Shuler’s BBQ’s signature “little biscuit” and he immediately sees an opportunity to take this nationwide.

The business is profitable and generating a very comfortable life or its owners so Marcus just doesn’t understand why he was called.

Problems/Issues In The Business Found By Marcus

  • Restaurant too small for the amount of clientele it has
  • No credit cards accepted
  • Nosy family members wanting to take a piece of the pie
  • Lack of efficiency in the food serving process
  • Lack of control over the cost of food items

During The Show…

Enter Lynn’s creepy brother-in-law Ewell. This is where the story gets interesting. Ewell is supposed to be the marketing ewell-shulers-bbqgenius that wants to have a part of the business. He sees the massive opportunity to cash in on the hard work already done by Lynn and Norton.

Looks like Ewell made a couple of Facebook promotions and believes he is now marketing guru that deserves part of the business.

Marcus just doesn’t see the need for extra marketing when there is already a line of clients waiting to eat. He wants to build out the infrastructure to be able to accommodate all of the clients whose needs Shuler’s is currently struggling to meet.

Ewell laughs about not being able to cook and yet wants a part of a restaurant business. This stuff is not even funny. It simply the case of someone smelling free money like a rat smells cheese. If you think the planet popcorn episode had creepy characters, this episode blows it out of the water with Ewell.

Marcus tried to give a chance to Ewell by having him help out in the business as a manager/partner. Ewell however didn’t want to do this.

He wants to make a salary of over USD200,000 between him and his wife, but not do the work. This just cant happen, not on Marcus’s watch.

Norton knows this and is skeptical Ewell’s real intentions are good. He’s just going along with this because Ewell is the husband to his wife’s sister and so he can just kick him out and hurt his wife Lynn.

The Deal

So Marcus sits down with Lynn, Norton and Ewell to discuss a deal.

Marcus wants to build up the location to become a real attraction for all those looking for the highest quality barbecue in the area. He offers to put in USD500,000 for 40% of the business.

The money will go towards:

  • working capital
  • paying off the mortgage
  • to build out a general store which will sell Shuler’s BBQ products
  • to build a deck on the back of the restaurant to sit the overflow traffic.

Marcus however wants to be reassured that the property on which the restaurant sits is part of the deal. Marcus also wants the distribution rights for the Shuler’s BBQ little biscuits which he plans to expand across the nation.

As always Marcus needs hundred percent control of the business while he makes his changes. He believes that with his help, Lynn and Norton will finally be able to leave a really successful business to their son Shuler.

The family agrees to Marcus’s deal and the partnership begins.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Get rid of Ewell
  • Optimise the payment process to get rid of the long waiting lines.
  • Slightly raised the price of a meal at Shuler’s BBQ
  • Set up credit card payment processing and add another register.
  • Reduce the raw food costs
  • Mass produce and sell Lynn’s biscuits in shops and department stores across the nation

Conclusion and Updates on the Business

Marcus brings in his partner baker Kenny to help formulate a version of Shuler’s BBQ biscuits for the mass market. Though Lynn is not too happy about how the basic recipe will change, she goes along with the process.

Marcus goes on to make a deal with a butcher to get Shuler’s BBQ’s meat at a cheaper cost and this will go a long way to helping carve out more profits from the gross revenue.

Plans are made to build the store for the Shuler’s BBQ’s products and expand the deck which quickly materializes and looks beautiful. The new deck space at the back of the restaurant will guarantee expansion for the business.

shulers-bbq-deck

Let’s not forget this is the South and this is America, so Marcus builds a giant 130 foot American flag that can be seen for miles. This will become part of the attraction of the Shuler’s BBQ brand.

shulers-american-flag

The biggest victory for Shuler’s BBQ however was when Ewell abandoned his plans to come be a part of the business. Hiring a family member is already a very delicate situation.

Shuler’s BBQ dodged a bullet and got rid of a family member that wasn’t even motivated to help the business in its day-to-day activities.

Finally Marcus rewards the couple and Shuler with a trip to New York where he invites them to the grand reopening of Marcus’ Crumbs Bake Shop. He has a little surprise for Lynn and she is ecstatic when she sees her biscuits along with her watermelon cup cakes on the shelves of the store.

lynn-hughes-watermelon-cupcakes

The biscuits will be in all 26 Crumbs Bake Shop stores as well as in major grocery stores. This will not just be another revenue stream, it will also be a huge marketing strategy to bring back people to the Shuler’s BBQ restaurant in South Carolina.

Shuler’s BBQ’s future looks very bright and the dreams of Norton and Lynn to leave a thriving business for their son Shuler is taking shape.

So there you go. Another exciting episode of the profit comes to an end with a successful investment in a good family business.

We wish Shuler’s BBQ all the best.

Don’t forget to share this review on social media and share with us your opinions on the episode and its characters in the comments below.

Thanks again for visiting.

Rob

<< Visit the previous episode Coopersburg Sports – The Profit Season 2 Episode 14

>> Visit the next episode ASL Sign Sales & Service – The Profit Season 2 Episode 16

Courage b To Open A New Store In Atlanta Georgia.

New Courage b Update.

In this second season of the Profit, Marcus Lemonis made a deal with the Stephanie Menkin, Nicolas Goureau and Designer Noemie Goureau for a part in their company Courage b.

A high-end women fashion clothing business which currently has 6 locations across the US. Check out our review of that Courage b episode if you missed it.

Marcus invested $800,000 for 30% of the business in that episode and quickly turned it away from failure by renovating the stores, helping the family resolve its issues and improving the Courage b line and product.

courage-b
We have just gotten word that Courage b together with their new partner Marcus will be opening a new store in Atlanta Georgia. In the next 12 months, the company is planing to open new clothing stores in other large metropolitan cities like Dallas, Denver, South California, Miami and Chicago.

Expansion is key in Marcus’ plans for Courage b and this is how top CEOs do it. You go big or you go home…

The new Atlanta store grand opening will be in February 2015. It will be located in the new Buckhead Atlanta fashion center and will feature Courage b’s line of clothing, accessories and handbags.

courage-b-product-line

So business is about to seriously take off for the Courage b brand since the partnership with Marcus Lemonis on the profit. This is what can happen to a business when a great investor comes in and it gets nation-wide exposure on a reality TV show.

It also shows the dedication of owners Stephanie Menkin, Nicolas Goureau and Designer Noemie Goureau to make Courage b a huge success.

We here at theprofitfans wish Courage b and the Goureau family all the best in this new venture.

Rob

PS: Here is the full press release if you are interested in the details http://www.marcuslemonis.com/blogs/news/17873131-entrepreneur-marcus-lemonis-to-open-new-upscale-womens-fashion-brand-courage-b-in-atlanta-georgia

 

Artistic Stitch Queens Vibe – The Profit Season 2 Episode 10

Marcus Lemonis Vs Artistic Stitch

The Company: Artistic Stitch/Queens Vibe

The Owner(s): Sal Loretta and Nicolo Meola

Website: http://www.artisticstitch.com/

Intro

In this episode of the profit on CNBC, Marcus Lemonis visits a Queens New York based embroidery and silk screening/printing business called Artistic Stitch. Founded by Sal Loretta and partner Nick Meola 18 years ago in Sal’s garage, the company is facing a huge identity crisis as Sal Loretta has created a sort of Mall/Sports complex.

artistic-stitch-basketball

The facility includes a basketball court, a baseball batting location, a clothes shop, a restaurant/pizzeria and lets not forget, a printing and embroidery production facility. With most of these facilities not producing a profit, Marcus believes that the company will not make it if it doesn’t come back to its roots which is in the printing business.

Artistic Stitch generates $2,000,000 dollars a year with the bulk of their revenue coming from uniforms, hats and custom shirt. Recently the company moved the business to a 28000 square foot ware house facility using Sal’s half a million dollar savings. To increase revenue and take advantage of all the free space, Sal decided to add a few new businesses to the location.

The sub-businesses are struggling to make a profit and the building acquisition and rebuild has sunk Artistic Stitch into a 1.5 million dollar debt hole. Marcus knows that there is money to be made in the embroidery business, so if the company doesn’t get their identity sorted out and start paying off their debts, they will truly become un-stitched.

Episode Main Review.

So Marcus arrives at Artistic Stitch and finds himself in the worlds weirdest mini mall. It’s crazy to find that the primary business (silk screening and embroidery) is shoved in a corner of the complex.

fabio-artistic-stitchHe meets Fabio, Sal’s brother in law and the manager of the embroidery production floor and he gets the tour of the floor. Sal comes to meet Marcus, tells him Fabio has been with him all 18 years and they started the business together. Sal is highly impressed with where the business is right now and maybe more impressed with the HUGE facility HE BUILT FOR IT. sal-loretta-artistic-stitch

Sal tells Marcus the business is generating revenue and that the problem is mainly the debt. He confesses that the bank managers look at him funny and refused him loans when he told them he wanted to build a mall/sports complex/restaurant etc. Looks like only Sal can’t see how weird all these really are. To Sal, it is a Multiplex of Businesses that will cater to all its clients’ needs once they com into the building.

Marcus tells him that its called a Mall. There ins’t a correct vertical integration in Artistic Stitch simply because the integrated businesses don’t connect/relate well to each other directly. Embroidery and silk screening has nothing to do with batting cages.

nicolo-meola-artistic-stitch Next Marcus meets Nick Meola in the sign shop, Sal’s 50-50 partner and sales representative. How much sales Nick generates we will find out later in the show. Though he looks like a shy and timid guy, Nick tells Marcus he loves selling and he loves talking to people and stuff.

So the signs printing part of the business generated $170,000 and the embroidery and silk screening part of the Artistic Stitch business make around 1.3 million dollars. With around 75% margins on both sections of the business, the gross revenue was almost $900,000.artistic-stitch-saverios

Marcus and Sal continue the tour and see the restaurant part of the business. Called Saverio’s, the restaurant generated around $300,000 last year. The restaurant was almost empty when Marcus visited it so its clear why it generates less than $1,000 per day in sales.

Next Marcus was shown into the sports section of Artistic Stitch which generates around $400,000 a year in sales. It’s incredible that Sal invested so much money into the sports complex. It is not generating a significant income but takes the majority of the business floor space as well as running costs.

Marcus is pissed to find out that all the other businesses in the complex don’t even generate half the income that the embroidery and silk screening part of the business generates. Well I am pissed too :). I might just need a coffee.

The rent for the building is around $17,000 a month for the grounds and empty building lease. Considering that Sal put in half a million to build the building out, it’s incredible that at this point, Sal still doesn’t understand how expensive running the sport complex is.

joane-artistic-stitch

After finding out from Joanne, Sal’s wife, that they have put all their money into the business and she is worried, Marcus understands that he will have to talk Sal out of his delusions of grandeur.

Next Marcus meets Giovanna, the accounts manager and asks her for a full balance sheet. He sits down with her and Sal to discuss the company’s financials and finds out that even though the embroidery and silk screening part of the business generates over $900,000 in gross profit, the revenue is used to support the expenses of all of Artistic Stitch. This leaves a smaller real profit of $100,000 a year.

Marcus finds out that there are other debts owed too. Outstanding construction debts, rents owed, credit cards, real estate taxes. So, even with the $100,000 in revenue, it is hard to service those debts and their respective interests and the business is essentially cash flow negative.

artistic-stitch-debts

Sal tells Marcus the sacrifices he makes month by month to keep the business running. He takes it as a personal crusade to keep his employees on the job.

Problems/Issues In The Business Found By Marcus

  • Unfocused business strategy
  • Huge and inefficient business facility.
  • A 50% partner whose role in the business is very unclear.
  • Waste of revenue supporting unprofitable sub-businesses.
  • Mistrust and secrecy

The Deal

Marcus sits down with partners Sal and Nick to make a deal. He finds out that after 18 years in business, Sal and Nick don’t have a clear agreement stating the details of their partnership contract.

It starts to look like Nick is that friend that comes on the ride and you have to keep around because he was there from the beginning all along. What Nick actually contributes to Artistic Stitch is still unclear to Marcus.

Marcus asks the partners to make him an offer on what they want him to invest in the business. Sal wants to clear the debt which totals just about $600,000. Marcus finds out that there is an option to buy the building for around 2.5 million dollars after 5 years.

They all believe the building is valued at around 5 million dollars. So it all looks like the real reason Sal invested too much into the building was to be able to have an asset he could buy at a below market price that is worth more money than he invested into it.

Marcus is worried Sal may be in it for the real estate play. All he needs to do is keep the business running long enough to be able to exercise his option to buy the building. His instincts tell him that Sal may be looking for an investor to help him do just that.

This is worrying. Does Sal and Nick really want to keep this business alive? Or are they just buying time till they can flip the building for millions of dollars. Marcus tells them he invests in small REAL businesses and he is not interested in the real estate play.

He is however interested in keeping the business running and its employees being on the job. He wants to know that Sal is equally committed to this as well.

Marcus offers Nick and Sal, $660,000 to satisfy the debt for 50% of the business and it’s building. He also wants 100% financial control of the business forever. In case the option gets exercised, Marcus will be the first to get his money back.

Sal is not happy with this. He wants to know how he will get back the money he invested into the business. Marcus tells him that since he will have 50% of the business, Sal can get a higher split of the rest which he has to share with Nick AND his brother in law FABIO. Fabio is Marcus’ insurance. He is the one in charge of the embroidery and silk screening part of the business which is highly successful.

Sal agrees to give Fabio 10% of the business shares. He will have 25% and Nick will have the remaining 15%. Nick is not happy about this. The fact of the matter is that Fabio, having been in the business with him and Sal since the very beginning is just as important (if not more) as him.

Marcus believes it’s generous to give Nick more than what Fabio gets. Nick agrees to make a deal. He didn’t really has a choice anyway.

artistic-stitch-deal-making

They all shake hands and Marcus gives Sal the check. That money will be used exclusively for the debts of the business. Sal is visibly relieved. The burden of debt is now off his shoulders and he wants to concentrate on getting the business back in shape and profitable.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Focus on the parts of the business that make money and cut out the parasites.
  • Share the equity and roles in the business in a clear and correct way.
  • Get the sales system in shape and open new corporate accounts.
  • Create a new brand for retail with its own clothes product line.

After The Deal…

After the deal is made, Fabio is ecstatic. He is happy to be finally recognized in the business with a share of the company.

Marcus now wants to focus on getting corporate accounts for the embroidery and silk screening part of the business. This will entail having a strong sales force. He finds out that the sales man Nick is not really that big of a salesman anyway. He can’t mention a client that he brought into the company. I think he is just caught in the moment or lost for words.

Most of the clients were brought in by Fabio and after almost messing up a heart wrenching sales pitch at the local fire station with Marcus, Nick is relegated to a commission per sale only salary status in the company. He agrees and I am not sure if he knows he may have just signed away almost all his salary??? In fact, Nick really appreciates it.

Next, Marcus closes the Artistic Stitch for renovations. He creates a new brand for the design and printing part of the business called Queens Vibe.

queens-vibes-logo

The beautiful new facility will now reflect their focus on the silk screening and embroidery part of their business. There will also be a retails space where clients can come in, design and order their own custom prints. Marcus recruited local Queens graffiti artists to spray the walls and give the premises the New York cool hip vibe.

In the next scene, Marcus again finds out that Sal may have lied a bit about the total debt amount. It looks like business credit card expenses were labeled as building expenses while in realty they were personal living expenses. He is not happy about this and when Sal comes clean about the cards being used to survive, Marcus tells him to be more honest with him in the future.

So Marcus gets to renovating the facility and he acquires a direct to garment printer for $27,000. This will be used for clients that want to come in and design and print out the results. This will enable local artists or small businesses to come and produce their own clothes line.

artistic-stitch-printer

Next scene, Marcus finds out that Sal is keeping information from his landlord to whom he owes $120,000 in arrears instead of $52,000. Marcus speaks to the landlord and after some drama with a certificate of occupancy, it’s all settled.

Marcus takes Sal to the park and speaks with him about all the lies and misinformation he’s been getting. Sal breaks down and tells him he is scared to lose everything and that by telling things how there really were, he was afraid he would lose the investment. In business however, numbers don’t lie. The 2 bury the hatchet and move on.

Conclusion and Updates on the Business

In the concluding scene, Marcus mentions that the retail section of Artistic stitch will now be called Queens Vibe and the company is already adding lots of new accounts, both small and corporate.

The lobby is now a retail store featuring the new Queens Vibes product line which is proving to be very successful. The design center is also doing well and is making the most of the basketball court.

queens-vibes-product line

So Marcus invested $660,000 plus over $100,000 in renovation costs takes the total investment to around $760,000. So things are looking promising but there is still a lot of work to do to finally see big success. Marcus says he will leave the business encouraged, but not totally satisfied.

Now that is what you call a cliff hanger.

I hope you enjoyed this episode as much as I did. There are still a lot of unanswered questions and I will try to keep this review updated.

Don’t forget to like us on facebook and share this review with your friends on social media. The share button it floating on the left side of your screen.

Also, leave your comments and join in the discussion about this episode and its characters.

See you again soon.

Thanks again for visiting.

Rob

>> Visit the next episode Swanson’s Fish Market – The Profit Season 2 Episode 11

Coopersburg Sports – The Profit Season 2 Episode 14

Marcus Lemonis Vs Coopersburg Sports

The Company: Coopersburg Sports

The Owner(s): Scott Pino

Website: http://www.coopersburgsports.com/

Intro

Hello and welcome to this episode review of the profit with billionaire Marcus Lemonis. If you’re new to the profit and want to get the quick grasp of what it’s all about then visit this page.

In this episode, Marcus visits a Coopersburg Pennsylvania based baseball novelty business called Coopersburg Sports.

Founded in 1991 by Scott Pino, the company used to be owned by Scotts dad who ran Coopersburg Handle Works. The official information on the website regarding the company is “COOPERSBURG SPORTS is a division of COOPERSBURG ASSOCIATES, INC., of Coopersburg, PA. Family owned and operated since 1791.” coopersburg-handle-works Coopersburg Sports has just struck-out with their key major league baseball client but its owner remains stubborn and has a hard time letting go of the past.

Marcus has to help refocus the business in the right direction or the game may well and truly be up. coopersburg-sports-license

Coopersburg Sports has a license with the major league baseball company to produce merchandise. The company is known for their mini bat which can be found in every major league baseball park. Back then business was great and the company was pulling in over $4 million a year in revenue with great profit margins.

In 2008 however, a major sporting goods company entered the novelty market and almost immediately took over half of Coopersborg sports’ business. Today Coopersburg Sports operating in an old and outdated facility using very chaotic business process.

Scott has brought in his kids, Jackie and Ben, to help him run the business. Sales however continued to slide and Scott remains reluctant to let them make important changes to help the business perform better. Marcus Lemonis believes that he can help Coopersburg Sports get its business back on track. There is a lot of money to be made and they could literally knock the ball out of the park.

Episode Main Review.

Marcus arrives at Coopersburg Sports to find a very disorganized facility. Even though there is a fair amount of manufacturing going on, there seemed to be no flow nor process.

In a facility were paints and heavy chemicals are used, Marcus noticed there was no good ventilation. scott-pino-coopersburg-sportsHe meets Scott and gets to know a little bit more about the company and what they do. Scott tells him that the company’s best year was over $4 million but now the company is hovering around $2 million in revenue per year thanks to the poor economy and a major competitor (Louisville Slugger) that came into the market.

Scott shows Marcus his most famous product the mini bat made by an Amish wood worker. He tells Marcus that the bat can be found in all major league sports parks like the Los Angeles Dodgers, the New York Yankees etc.

The relationship Coopersburg Sports has with major league baseball and the fact that it has its products in all the stadiums is the reason Marcus decided to come see the business. This is the breakdown of the mini bat costs to produce versus revenue. It costs Coopersburg Sports around $1.15 including the royalties to produce the bat.

Adding the logo of the baseball franchise costs around 20 cents at the highest level. Scott pays MLB 12% for each bat sold, around 18 cents. The bat sells for around $1.50 giving a profit or around 30-37 cents.

These are very very slim margins for it to be the company’s (300,000 units per year) signature product. Marcus doesn’t like the fact that the bats are painted in-house and he is very interested in squeezing out more profit from this product by bringing in already pre-painted bats. This will save around 10 cents per bat on costs.

If you calculate that Coopersburg Sports sells 300,000 units per year of these bats, that is a cost reduction of around $30,000 per year. Add that to the $12,000 per year in waste/faulty products cost and the savings increase to $42,000. Scott tells Marcus that he inherited the production facility from his dad who ran a tool and handle turning business that supplied bats to major league baseball players.

When a major tool company came on scene, his dads was pushed pout of business. After a chance meeting with the Major League Baseball association, Coopersburg Sports was born to continue the bat creating tradition of the old business. The fact that Scott was able to evolve and turn his dads dying tool and handle business into Coopersburg Sports is a huge success story. However, he will need to evolve once again and branch out into new products to save the business once again says Marcus. coopersburg-sports-old-new-schoolMarcus continues his tour of the business and see something very cool. Scott has rigged up some old HP printers to print on the bats and that is very clever. Marcus is impressed. coopersburg-sports-printers In the next scene we are introduced to daughter Jackie who finds out that there is a shortage of boxes for a big order. jackie-pino-coopersburg-sports Jackie is in charge of collegiate marketing and sales.

She complains to Marcus that the lack of an inventory tracking system as well as a business management program has once again caused a shortage in material. Scott tells Marcus that such software is very expensive and may cost $30,000.

Marcus replies that it is costing them more in lost fulfillment not having the software in place. It looks like Scott is in control of everything and is not willing to delegate to his children roles that will help the business move forward. He is set in his old school ways while his children are dying to bring in fresh new ideas.

Scott takes Marcus to see the bats made by the Amish. This is a very interesting part of the business and a great relationship with the community.

Being based in the heart of Amish Country, Coopersburg Sports is sourcing its bats from the locals and this provides jobs. Scott however owes this bat supplier about $25,000.

The debts on the company is around $700,000. For the year, Coopersburg Sports is likely to generate about $2,000,000 of which just $40,000 will be profit. From this little profit, Scott is servicing the $700,000 loan which will take him a life-time or defaulting if things don’t change.

Marcus understands the situation is bad with this company. He is however very impressed with the relationship with the MLB. He still thinks that the business is focusing too much on just 1 income stream. This causes Coopersburg Sports to be a seasonal business since the MLB has off seasons.

There is a 4th quarter income missing from the business and Scott has lay-off people every year in the slow season because of this. wendy-coopersburg-sports

In the next scene Marcus meets Scott’s wife Wendy and Ben, his son. Ben is a plant manager so Marcus speaks to him about the production system. Ben tells him that the production process is so chaotic and inefficient. ben-pino-coopersburg-sports

He has been trying to change this for a long time but his dad Scott is stuck in his old ways and not is interested. The facility has no off-loading dock so inventory has to be walked from the trucks to the ware house where they are stacked.

Marcus believes that the ware house is not just inefficiently run, it could be a fire hazard as well. coopersburg-sports-warehouse Marcus asks Scott why he continues to stay in that old facility. Scott says Coopersburg Sports won’t be able to afford moving. The current rent is around $1300. Its cheap but as Marcus says, they are tripping over dollars to pick up nickles. With a bigger facility (even with higher rent) and the correct system, Marcus believes that the business can expand and generate more revenue and profit.

Problems/Issues In The Business Found By Marcus

  • Inefficient production facility and system.
  • Lack of modernization.
  • No inventory tracking system.
  • Old production systems.
  • No proper ventilation in the paint facility.
  • Seasonality of the business as it is focused on the Major League Baseball market.
  • Unserviceable debt.
  • Lots of payable owed to the business.

The Deal

So Marcus sits down with the Pino family to talk about the state of the business and the investments made. He looks through the financials and finds out that the business has $285,000 in total payables with over $600,000 in bank debts. The total debts are around 1 million dollars.

Wendy breaks down when Scott says he is tired of the problems. Marcus says that the business has to grow out of its seasonality by adding more product lines and improving its production process. Marcus offers Coopersburg Sports $630,000 to build out a new warehouse facility with new inventory system and pay off the payables. For this he will want 50% of the business.

Scott says that he has worked too hard, too long to give away 50% of his business. He asks Marcus to put more skin in the game. Marcus tells Scott that in the next couple of years, he wont have any return on his investment so the risk is too high for him. Scott counters with 30%.

Marcus says he is willing to go to 30% of the equity if he gets a 3% royalty on all of the products produced by Coopersburg Sports in perpetuity. This way, Marcus is more motivated to increase the sales since he will get a higher return with more sales. Scott agrees and gets the check. coopersburg-sports-marcus-deal

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Totally overhaul the business process.
  • Expand product line to get rid of seasonality
  • Product innovations
  • Get an accounting system in place
  • Get more licensing deals with other leagues and develop new relationships with big retailers.

After The Deal…

As soon as the deal is done Marcus takes the family to see a new facility he believes will be perfect for Coopersburg Sports. Marcus plans to get the facility for a 5 year lease but to get the first year for free.

Using the fact that the building has been empty for 2 years, he negotiates with the owners to get the first year for free. They counter him with 6 months but finally settle at 9 months. The rent is $8,000 dollars per month and represents an increase in rent of $80,400 per year. coopersburg-sports-new-facility With Coopersburg Sports selling over 300,000 bats a year, the greater storage space will permit a higher quantity order and this will in turn reduce the price.

The real difference however will depend on if the Pinos can come up with new products for the company. Scott just can’t see the need to add any other product apart from baseball bats. Looks like Scott wants to compete with giant Luisville Slugger instead on focusing on what can increase his business.

Marcus wants to use the technology and know-how Scott developed over the years to produce new personalized products. He is highly interested in those rigged printers and if they can print on other surfaces and shapes.

In the next scene we see Marcus pitching Scott an INK Credit card from Chase.

As these episode come, I am starting to notice that big companies are placing their products in the profit. The last time it was AT&T for the Unique Salon and Spa episode. I am sure it’s making a lot of money for the production company, but I am not sure it is helping the image the profit show has. marcus-private-jetSo next, Marcus visits Pittsburgh on a business trip and he is shown coming down the steps of a private jet parked outside a hanger just for added effects :).

He decides to visit a MLB park to see the Coopersburg Sports products as well as find new opportunities for more sales. He finds out that the bat Scott claims was in every MLB park wasn’t. Ooops…

So instead of being in all 30 MLB parks, the product is in just 5 of them. This is serious and Marcus is disappointed.

The fact Scott promised him they were in all 30 parks was one of the reasons Marcus offered him a deal in the first place. Once again, Marcus is about to get hustled and the profit lying trend continues. marcus-weaver In the next scene, Marcus visits Jerry Weaver at Weaver wood works, the Amish bat producer for Coopersburg Sports. He wants to see how the bats are made.

Marcus wants to know what else these highly skilled woodworkers can make for him. He finds a waste bat shaped like the leg of a table and asks if that could be formed into a stool.

With MLB branding on it that could make serious money. The ideas are always flowing with Marcus.

scott-criesIn the next very emotional scene, Scott breaks down in front of Marcus and his son Ben. He says the story of how hard he worked to get the MLB license and how much time and sacrifice he made.

This is the reason he holds on tight to his ways, which are mostly old and need to evolve. He now understand that his kids are the new generation and their ideas will be the future for the business.

Conclusion and Updates on the Business

coopersburg-sports-stool3 weeks later, Marcus comes back to find a display with prototypes for 15 new products. Yeeeee, finally someone does what Marcus “advices“.

Scott is now leading the way in this new era and it all looks good. Even the stool idea was realized and the final product looks very cool. There is even a line of MLB teams branded wooden kitchenware.

coopersburg-sports-kitchen-wares In the next scene Marcus takes Scott and wife Wendy to see the construction works going on at the new facility. Marcus even gets to play with some building tools, as always. This new facility coupled with new accounts will eliminate the seasonality.

Next Marcus takes the Pino family to his friend Johnny Moore Bass Pro Shops to pitch their new line of products. After having no results with his male oriented items, Scott passes the pitch over to daughter Jackie and she strikes a chord with the growing female demographic.

The buyers for Bass pro Shop are interested in the kitchen line as well as the branding and personalization technology Coopersburg Sports can provide them. bass-pro-shops Things are really looking bright. Scott is now in full support of his children taking the lead on new products and innovations. The successful Bass pro Shop pitch was a result of this.

We here at theprofitfans.com wish Coopersburg Sports and the Pino family all the best and will be looking forward to adding updates to this post about the business.

I hope you enjoyed this episode with us. Don’t forget to share this review on the social media by clicking the share button floating to the left of this page and choosing your preferred button.

Also, I’ll love to have your comments and discussion about this episode and its characters.

Thanks for visiting us and do come back for new episode reviews.

Thanks again.

Rob

UPDATE: It looks like the company have a new subdivision called Coopersburg Products LLC for their new product lines. Looks like they also have the NFL, NCAA and NASCAR coming on board soon with their licensed merchandise.

I believe this company will explode in revenue very very soon.

<< Visit the previous episode West End Coffee Company – The Profit Season 2 Episode 13

>> Visit the next episode Shuler’s BBQ Bar-B-Que – The Profit Season 2 Episode 15

West End Coffee Company – The Profit Season 2 Episode 13

Marcus Lemonis Vs West End Coffee Company

The Company: West End Coffee Company

The Owner(s): Rebecca Schramm and John Brown

Website: https://www.westendcoffee.com/

Intro

Welcome guys.

In this 13th episode of The Profit on CNBC, Camping World CEO Marcus Lemonis visits West End Coffee Company. A “freshly roasted” gourmet coffee company based in Greenville South Carolina, that services local restaurants and specialty/coffee shops.

west-end-coffee

Owned by ex-partners Becky Schramm and John Brown, The business was bought for $500,000 in 2012 at a period when the owners were in a relationship.

john-rebecca-inlove

Like most similar situations, things quickly turned sour for the business when the love went away a year later. Now the couple is fighting more than they are selling and this is ruining the business. Marcus is becoming quite the pro in mending businesses as well as emotional relationships so he really has his work cut out in this episode.

With the business relationship of owners Becky and John straining and the business debts mounting, time is running out for West End Coffee Company. The market for freshly grounded gourmet coffee is huge and Marcus believes that if he can keep the couple from fighting constantly and start to act as a team, there is a lot of money to be made.

Episode Main Review.

Marcus arrives at the West End Coffee Company production facility and immediately catches the smell of fresh grounded coffee.

west-end-coffee-company-complex

He likes it. However, just a few seconds later, we immediately hear John and Becky arguing about something. I can imagine how exciting it is for the employees having to hear personal relationship matters whenever their bosses are in a fight.

The couple suspend arguing to welcome Marcus to the business premises and take him for a tour. They show him their store front space and explain to him how the business works. As well as shipping to individual clients, West End Coffee Company has its products in big grocery stores like Wholefoods and Earthfair. marcus-meets-john-becky

John and Becky tell Marcus the business did $840,000 in the last year (2013) with a profit of around $40,000. The company pays around $2750 per month in rent for their warehouse/production facility and we all can agree that’s a bargain. The price will however increase to $3000 from September. Marcus is not impressed with this, he believes that a business should have a long lease so it can know what its immediate future is.

Marcus tastes a bit of coffee seeds and asks Becky and John how they learnt how to roast coffee. They both reply that they have not yet had the time to learn the process and Marcus is shocked. A business owner should know the basic details about how the business is running and its processes. In West End Coffee Company, there is a master coffee roaster who stayed with them when Becky and John bought the business. Becky’s son Bryan is learning the process of roasting coffee from the master roaster so he is a backup if the roaster decides to move on.

west-end-coffee-company-brian

So Marcus gets introduced to Bryan. Bryan likes his job but doesn’t really like the “dynamics” between his mom Becky and her ex-partner John. Marcus tells Bryan to turn on the coffee roasting machine, he wants to see how its done and get a chance to try it out.

He asks John if they get the coffee from the source or from a distributor, John tells him they get it from a distributor. Marcus isn’t impressed with this as the business could greatly increase margins if they decide in cutting out the middleman and getting the coffee directly from the suppliers. With just over a 100,000 pounds of coffee roasted per year, Marcus believes that getting just $0,30 cents per pound shaved off by buying directly from the suppliers can generate a potential saving of $30,000 a year. This is a huge amount and John and Becky should have gotten this sorted out a long time ago.

Marcus also asked how much coffee West End Coffee Company can roast a week if the production facility ran on a full day shift basis, he is told that they could roast about 360,000 pounds per year. Given that the business currently roasts 100,000 pounds, Marcus calculates a 33% efficiency. He believes that by pushing up production to full capacity and lining up sales, the same facility with the same equipment can generate 3 million dollars in revenue compared to their current revenue of around $840,000. With a 50% margin, Marcus is really interested in getting a piece of the coffee pie.

So Marcus is impressed with West End Coffee Company‘s product and the employees. He however needs to understand why there is tension between owners Becky and John. So he asks them how they met. John tells him that Becky was a friend of his ex-wife and they all had a “tight relationship”/”cohorts in crime”. We don’t really know how to explain all this but with Marcus blushing red, the image below may help.

john-rebecca-and-wife

Marcus asked if the relationship could be repaired if the couple is not working together, John tells Marcus he doesn’t want to have anything to do with Becky anymore and is in fact looking for a wife. Becky says John told her he wasn’t going to marry again and John replies that he said, he wasn’t going to marry HER. Oh noooo. This is a cruel thing to say John. Just like in the episode  Unique Salon And Spa, business never remains the same when a couple fall out of love.

 

In the next scene, Marcus wants to find out how the business is structured and asks about the equity split between John and Becky. John says its 82-12 in his favour. West End Coffee Company was purchased for $499,000 with Becky putting in $77000 in cash. John put $12,500 in cash and $300,000 from his 401K. The remaining $100,000 was gotten from a bank loan. This splits the direct investment/ownership at 82% for John and 18% for Becky. The business however seems to be run like it was a 50-50 share between John and Becky.

In the 2 years of running the business, John and Becky have taken a $5,000 office salary just once and they are living on savings which are now depleted. Marcus asks why the couple didn’t list the business for sale and Becky replies that she doesn’t want to sell.

It’s soon clear that John made an emotional mistake as he made Becky a director of HIS 401k pension plan and she has the shareholder voting majority. He goes on to say that she can fire him as CEO if a shareholders meeting ever took place.

Marcus sits the couple down and after taking a look at the financials (which are all in order) he asks a direct question to Becky. He wants to know how she ended up accepting to be in a position where she could fire John from the business when he put in over 80% of the money needed to acquire it.

Becky tells Marcus that since John has threatened in the past to fire her, her only security is to hold on to that position as the majority shareholder voter. Marcus tells her that this makes her in control of John’s money and basically his destiny and this is what is creating the anger, frustration and mistrust. Becky tells Marcus that it was a twist of fate, basically a paper work accident.

In a dramatic twist of events, John soft-side comes out when Marcus asks him if he will get rid of Becky if the contract is rectified. He says that he absolutely guarantees that she will have the right to remain in the business and wont be thrown out. Looks like Marcus has pulled out an Oprah moment. He really is good at connecting with people to bring out the best in them.

So the inevitable question hits Becky. Is she willing to take the chance and sort out the contract????? SHE SAYS YES.

Problems/Issues In The Business Found By Marcus

  • Broken relationship between the owners/partners.
  • Low productivity from the production facility.
  • Debt
  • Lack of trust between the owners.

The Deal

So with that detail sorted, Marcus is ready to offer a deal to West End Coffee Company owners John and Becky. He offers to put up $200,000 for 51% of the business. He plans to use half of that to pay off the loan John and Becky took from the bank when they acquired the business. The second half will go to the business as working capital. Marcus wants to increase coffee production and the money will be used to fund this.

John tells Marcus that $200,000 is not enough. That amount will value their business at less than $400,000. Marcus tells him that he valued it that low because of the wildcard discount. The wildcard being John and Becky. If they end up ruining the business then Marcus can mitigate his loses better at that valuation.

John and Becky talk about this and they promise each other to have a fresh start in their relationship as BUSINESS PARTNERS and even in their personal relationship I believe, if they can continue to talk this maturely to each other. John has to call Hank Maarse and get some flower for Becky quick…

John and Becky accept Marcus’ deal and he signs them a check right there.

marcus-john-becky-deal

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Resolve the conflict between the owners John and Becky.
  • Improve on sales, branding and packaging.
  • Restructure the business for increase productivity.
  • Sort out the ware house and inventory system.

After The Deal…

So now the deal is done, Marcus gets to work on trying to squeeze out as much production from the company in a bid to increase revenue and cut out waste. He tries his hand at making a packet of coffee but spills the beans on the floor and gets labelled a rookie. In typical Marcus fashion, he picks up a broom and cleans up the mess.

So Marcus organizes a sales meeting with Larkins restaurant. With 4 locations and a huge banquet facility, it’s the type of company West End Coffee Company needs to increase its sales. Not only is this a chance for the business to sign on a new account with Larkins, it is also a test to find out if this new partnership between the couple works.

larkins-potential-order-coffee

So Marcus, John and Becky meet with the owners of Larking to talk business. They find out that Larkins has a huge costumer base and rough calculations show that they may generate $42,000 per year in sales if they can bag this client. The couple starts pitching and Becky almost ruins everything. Maybe it wasn’t a good idea to have her there at the meeting with Larkins.

west-end-coffee-company-meets-larkins

Larkins agrees to purchase their coffee from West End Coffee Company. With this sorted, Marcus and the couple jump back to the business premises to streamline the inventory. They get rid of flavours that are not performing well in sales.

Marcus finds out that there was an excess purchase of smoothies and since it is a seasonal product, John and Becky were left with a lot of stock which has now expired. When Marcus asks why this happened, it starts an argument between John and Becky and HERE WE GO AGAIN…

In the next scene,  John asks Becky if the letter from her attorney stating that she has resigned from the trustee of the pension plan is ready. She says she will get it soon and John goes on about how she made a mistake with the smoothies order. Looks like John has more problems than we found out earlier. It’s like he thrives on the arguments.

Marcus comes in to ask if Becky has signed the resignation papers, she says not yet because she found out that John is looking to sell the business even with the deal in place with Marcus. So this is the problem with John. He wants out of the business and Becky. John claims he will love to do the deal with Marcus but not with Becky.

So we see that John has not kept his word and the moment Becky resigns as trustee of his pension plan, there are no guarantees she will be there in the business for much longer.

becky-reads-john-messages

She brings out her phone and reads a message from John which says and I quote:

“I am more than done, you have no saviour. We will sell this for our original investment and start over without each other.

Marcus is irrelevant at this time. The business will be listed for sale tomorrow. Miss 18% owner. You will be lucky to get your initial investment back and after that, GOODLUCK.”

Marcus tells John he has news for him. He is RELEVANT.

He made a deal and got 51% of the business and he can throw John out whenever he likes. This however is not how he does business. He is hurt John would even think of trying to under cut him as he is the only one that almost mediated a release from his contract with Becky as manager of his pension plan.

Marcus then says that the West End Coffee Company business is going well and the couple clearly can’t work together, He has to decide who stays and who goes. The roles the owners play in the business is clearly not defined.

Conclusion and Updates on the Business

Marcus believes that Becky signing the “trustee of John’s 401K” resignation letter is the first step to getting the business moving again.

He asks her to tell him why she hasn’t signed the papers yet and she confesses to him that she wants to have her own business. She wants to call the shots. The problem with that Becky is that you are holding John hostage and he is never going to run the business with you in peace as long as you do that.

Marcus tells her this exact same thing and lets her know that now that he is part of the business, there is no need to keep that leverage point. He promises to hold the form if she signs it. They go back to the office and Becky types the resignation letter and signs it in the presence of John. Marcus now tells John that by keeping this letter, HE now controls John and he wont be happy if John tries any funny business behind his back.

In the next scene, with the long war now effectually over, Marcus now moves on with business delegating clear roles to John and Becky. Becky gets to take care of inventory while John handles the sales.

So after leaving West End Coffee for a few weeks and then coming back, he is greeted once again by the great coffee smell and John and Becky fighting again. Marcus looks around the ware house and nothing he advised them to do was done. John and Becky are arguing and we really start to understand that John MAY WANT OUT OF ALL THIS. I can understand why. He has put in a ton of cash into this business and may be looking to cash out.

Marcus meets with the couple and tells them that Larkins has been waiting for West End Coffee Company to send them a quote for the coffee deal they made. This shows that John doesn’t want to be in this business even though he says he does. Or he just doesn’t want Becky in it with him.

Marcus tells John he has to show more respect to Becky and he is surprised how her son Bryan still hasn’t beaten him up for how he speaks to his mom. Bryan nods his head agreeing in the corner. Marcus concludes that as the couple cant work together, 1 of them has to go. John nods his head in agreement.

John believes that since he invested the majority of the money into the business, Becky has to go. He tells her she is not majority owner, she is 18% owner and had better started behaving like it. I believe 18% is a swear word in that household :)

Becky sits back and cries. She wants to have this business. Its her only lifeline for her and her son.

John says he left a $120,000 paying job to set up this business for which he has worked for free for 2 years. He believes that Becky brought in Marcus so she could get rid of him. John wants to take control of HIS business and run it the way he wants. Lets not forget “HE PAID FOR IT.”

Marcus says to Becky that she didn’t do anything he told her to and this is why he believes that if he brought in bigger accounts, West End Coffee Company under their guidance wont be able to handle the order.

It looks like John and Becky have become complacent and are not ready at this moment to expand their business to the level Marcus wants it to be.

For this reason, Marcus says he cant continue his deal with them. Marcus believes in People, Process and Product. 2 of which can be changed easily. The people however, is the hardest thing to change and he may have failed this time.

He hands back Becky her resignation letter, which puts John back into the “hostage cage“. He holds his hands to his head as he knows he has lost his chance.

john-hostage-again

Marcus wished them luck, shakes their hand and walks out. He reflects on the fact that West End Coffee Company could have become a huge success with him, but its owners were put in circumstances which prevents this from ever happening.

My real fear now is for Becky. How long she can hold a full grown man hostage is yet to be discovered.

So that’s all folks. I hope you enjoyed the drama in this episode. We sure did.

Don’t forget to let us know what you think about the episode and its characters in the comments below.

Don’t forget to share this review with your friends on the social platforms.

Thanks again for visiting.

Rob

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The Profit With Marcus Lemonis.

The profit is a new show that airs on CNBC Prime about struggling businesses finding a “savior” in the person of multi-millionaire Marcus Lemonis.

In each episode, Marcus, the CEO of Camping World and Good Sam Enterprises will find a business in dire need of help and radically change its’ core while investing a hefty amount of his money to save it.

marcusmoney

What I love about the profit show is that since it is very real, sometimes the deals work and sometimes they don’t. That’s life isn’t it?

So welcome to the fan blog of this exciting show. You can find out more about the show on its official CNBC Prime page or its’ facebook page.

Join us in cheering on Marcus as he rescues businesses in this roller coaster fun ride of a show.

Here is an interview with Marcus about his show, The Profit on CNBC.

UPDATE: A second season of the profit has been approved by CNBC.

Don’t forget to post comments and join the discussion about the show and what you think of it.

Thanks for passing by and enjoy your stay.

Rob