Kittrich Corporation Acquires Eco-Me.

Eco-Me Update

Congratulations to the team at Eco-me.

We are so happy for them. Thanks to their great work and business growth stimulated by Marcus and The Profit, they have now been bought by the huge home products company Kittrich Corporation in a “strategic asset purchase”.

Here is the official news on the eco-me site: http://www.eco-me.com/news.htm

>>Get Eco Me Products On Amazon<<

Again, our congratulations from theprofitfans.com

We love it when there is a happy ending.

If you haven’t read our review on the eco-me episode and company, you can view it here Eco-Me – The Profit CNBC Season 1 Episode 4

Mr. Green Tea – The Profit CNBC Season 1 Episode 6 Finale

Marcus Lemonis Vs Mr. Green Tea

The Company:mr-gree-tea-logo Mr. Green Tea

The Owner(s): Emanuele Family.

Website:  http://www.mrgreentea.com/

Intro

In this SEASON FINALE of the profit CNBC, Marcus Lemonis  is in Key-port New Jersey visiting Mr. Green Tea a gourmet ice cream company.

Founded by Santo Emanuele in 1968, Mr. Green Tea has continued to produce top quality hand crafted exotic ice cream.

Mostly supplying New York citys’ Asian restaurant market, Mr. Green Tea  boast flavors like green tea, ginger and red bean.

mr-gree-tea-ice-cream
Now run by Santo Emanueles’ son Richard and his family including wife Lori and his son Michael.

Unlike other businesses featured in the profit, Mr. Green Tea is not facing financial problems or closing doors.

The business generated $2,500,000 in the year of this episode taping (2013) providing the family a very good living.

The main problem facing Mr. Green Tea is stagnation. The lack of taking the right decisions to help the business grow is causing tension in the family.

Mr. Green Tea doesn’t seem to expand as the family wants it to and they look to Marcus to help out.

mr-gree-tea-family

Problems/Issues In The Business Found By Marcus

  • Family friction and disagreement.
  • No new flavors in over a decade.
  • Still not well situated in the retail market.
  • Co-packing used to produce the ice cream sucking up 20% of the profits.
  • No possibility to fill orders due to limited co packing slots.
  • Costly logistics and transporting.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Resolve father-son relationship
  • Start developing new flavors and expand the client base.
  • Become an house hold brand.
  • Stop relying on copackers by building a production facility.
  • New graphics and logos for the new brand.

The Deal

Marcus offers Mr. Green Tea $600,000 for 35% of the business.

Richard counters with the idea of giving royalties instead of giving up percentage ownership of his business.

Marcus says he wants to get a piece of the action and he believes in the business succeeding.

The business is safe for him to invest in and his return on investment will be good.

Richard says he has to think about it and Marcus writes a check for his investment amount and puts it on the table.

The family is impatient and waits on as Richard thinks about it.

We start to see that Richard is a very meticulous conservative guy and this may be keeping Mr. Green Tea  from growing.

Marcus steps outside for the family to talk about it. The other members are ready to take Marcus’ offer but Richard is scared to take the risk.

After questions and doubts are answered, Richard takes the deal and everyone is happy.

Marcus then goes on to say his famous “catch”. He needs control for a week. It is all agreed on.

Episode Main Review.

So the whole deal with Mr. Green Tea is the scaling of the business. This simply wont happen without the elimination of the co-packers and opening of an in-house production facility for ice-cream.

Michael takes Marcus to see a potential abandoned factory that could be the production facility of Mr. Green Tea.

Being in the path of hurricane sandy, the building was totally devastated and in need of huge repairs.

Michael says it could take around $600,000 to get the building back in shape for ice cream production and Marcus wants to make sure his numbers are right.

The fact that the company stands to make an extra 20% margin by having in-house ice cream production is an enticing one, but the numbers have to be right.

After the deal is agreed on, Marcus focuses on creating more flavor of ice cream.

Michael wants to launch a whole new brand in the gelato market called “SOLO GELATO” meaning “only gelato” or “1 taste gelato”.

Marcus wants to have a more general brand than Mr. Green Tea.

By having a general brand, the company will be able to expand into various products. The family agrees with the idea and start working on it.

Next in the episode, Michael calls the bank to buy the factory premises. A negotiation battle ensues between Michael and the bank until Marcus has to step in.

Marcus shows his true brilliance here when he offers the bank to buy their position on the loan.

This way he is able to get the warehouse as well as the other pieces of properties placed as collateral for the loan. With the ware house in foreclosure, Marcus can offer to buy the bank note and not only get the ware house, he would get the properties tied to the loan as well.

By liquidating the other pieces of property he could lower his investment from $240,000 to $140,000.

The bank agrees and the deal is made.

Marcus goes ahead and shows the Emanuele family drafts of the new graphic designs for logos and new brand “solo Gelato”. They all love it, even Richard.

In the next scene, Michael roll up in a new fiat 500 wrapped in Mr. Green Tea branding. It has a fridge installed and Michael plans to use it to test the retail potential of the brand by selling ice cream from the car in new york.

For the family, it’s is not just a surprise but a waste of $18,500. That is a lot of ice cream to sell to recover the costs. Richard is furious.

Looks like Michael is having problems figuring out his numbers.

The papers of the deal for the ware house arrives and Richard is overwhelmed with the pace things are moving forward.

Marcus takes him for a walk and explains to him that the deal is a good deal. His money will be made back easily as the economics are favorable.

His margins will take care of the factory purchase and make a return very quickly.

Richard finally sees the light and is ready to move forward.

Cleanup is finally underway at the facility and it all looks good until Marcus finds out that the $600,000 mentioned by Michael was very wrong.

It will cost a full $1,300,000 to get the factory ready to produce. More than double the amount.

Marcus has a stern conversation with Michael and reminds him that its HIS money on the line. He still intends to move forward with the deal but it will take him longer to make back his return on investment.

Conclusion and Updates on the Business

With the factory online and producing, it will be one of the best ice cream facilities on the east coast with huge potential for the Keyport community.

The factory is now scheduled to open soon (at time of taping) and with the million dollar order waiting to be fulfilled, it looks like Mr. Green Tea is finally on track to double its revenue in the next year.

With the co-packer gone and the factory producing, the margins will automatically double from $450k to $900k.

UPDATE: 1 month later.

Keyport Creamery (the new brand) is well under way to become a household name.

Michael is pushing the MOCHI and SOLO ice cream product sales with his FIAT 500 with fantastic response.

Mr. Green Tea is looking at retails space in New York City.

The brand is continuing to grow its restaurant clientele and the ice cream making equipment is on its way over from Italy and once installed will make MR. Green Tea the most state of the art ice cream production facility in the east coast of America.

It will produce 1,600 gallons of Ice cream a day, it will have 18,000 cubic ft of freezer space for product storage.

The major of Keyport has given the business the citys’ stamp of approval  to build the factory.

To cap it up, the father-son relationship is at an all time high.

I hope you enjoyed our episode review.

Feel free to comment below and let us know what you feel about the episode and characters in it.

Thanks again for your visit.

Cheers

Rob

<< Visit the previous episode LA Dogworks – The Profit CNBC Season 1 Episode 5

LA Dogworks – The Profit CNBC Season 1 Episode 5

Marcus Lemonis Vs LA Dogworks

The Company: LA Dogworksla-dogworks-logo

The Owner(s): Andrew Rosenthal

Website: http://www.ladogworks.com

Intro

In this “anger management” episode of the profit CNBC, Marcus Lemonis is in LA visiting LA Dogworks.

LA Dogworks is an upscale dog care and boarding facility in the hearth of hollywood California.

la-dogworks-center
It was founded by Andrew Rosenthal in 2004, LA dogworks is now a 24 hour dog facility employing 36 workers.

Specializing in all dog services from grooming to training, clients can count on their pets being hosted in a state of the art 7500 sq feet facility.

As a business, LA Dogworks generated $1,300,000 a year at the time of filming but the numbers are going down.

$150,000 in debt and with the business sales crumbling, LA Dogworks is hoping Marcus can help turn around the business.

So Marcus meets Andrew at the door and proceeds to take a tour of the facility.

It truly is impressive how complete LA Dogworks is when it comes to taking care of dogs.

We start to see the behavior of Andrew, which is a bit harsh regarding his clients.

Looks like he just doesn’t care what others think of the business and his services. He isn’t even phased by the presence of negative reviews online about the business.

It is also clear that according to his employees, Andrew is not the best boss you could hope for.

A number of his employees were even playing to leave.

Marcus confronts Andrew to find out the reason for the bad-blood with his employees. He needs to know the situation is calm enough for him to invest in.

Andrew confesses that if he could fire everyone and start from scratch, he would do that.

A true dictator.

Problems/Issues In The Business Found By Marcus

  • Sloppy business practices.
  • Bad management.
  • Little signage outside the premises listing the services provided.
  • No fixed price list of services provided.
  • Negative online reviews to the business.
  • Andrews’ call it like it is attitude which may hurt people including his employees.
  • Low occupancy of the boarding facilities.

Solutions Suggested/Implemented by Marcus To Improve The Business

  • Change management and help Andrew get rid of his problems with his employees.
  • Stop the yelling and abuse suffered by employees.
  • Increase moral of the business environment.
  • Raise revenue by increasing occupancy and creating a client membership reward system.
  • Create a whole lot of private label products for dogs under the LA Dogworks brand to be sold in mass retail, online and nationwide.
  • Opening up multiple locations based on the brand.
    Sprucing up the premises to bring it up to date.
  • Building repainted and its now has a list of the services it offers on the front vetrine.
  • New logos for branding.
  • Offering a first free service to those that adopt dogs in the area.

The Deal

Marcus Offers Andrew 1 million dollars for 50% of the business.

It is broken down into:

  • $150,000 to pay off incurred debt.
  • $150,000 to be set aside as working capital.
  • $700,000 for expansion opportunities.

Marcus will control the operations of the business and employees with Andrew controlling the brand.

As usual, Marcus asks for 1 week of full control of the business so he can start turning things around.

It took little convincing but Andrew finally agrees on the deal and the 2 shake hands.

Episode Main Review.

This episode becomes more of a therapy session for Andrew than a business transaction.

Andres true contempt for his employees reveal inner problems that need to be taken care of.

His employees see no empathy for the people that work for him. Shouting, yelling and stressing up his employees are comon place at LA Dogworks.

These all escalate with one of the employees, Jesse quits.

A workplace psycologist, Dr. Rivera had to be brought in to help and after making up and even hugging with his employee Neil, it looks like things are going to get only better.

la-dogworks-grooming
Andrew even pitches in with things to do and seems to find a new enthusiasm with his business. Could this be the great end we all wished for???

Well Sadly No :(

Conclusion and Updates on the Business

Andrew can’t seem to see anything positive in Marcus to his employees.

During a huge confrontation with Marcus, Andrew says he doesn’t need Marcus’ help to run the business and truly believes he can do it all on his own.

la-dogworks-marcus-andrew

At this point Marcus has had enough. After staring with frustration at Andrew, Marcus decides he can’t take it anymore and abandons the deal.

Andrew confesses to the camera that he can’t work with partners and the only reason is his ex business partner is alive is because murder is ILLEGAL

Looks like this guy has more problems than ANYONE could help him with.

Marcus withdraws his million dollar offer and drives off.

Personally, I knew Marcus was on a lost mission on this one and wasted his time even trying.

I hope you enjoyed our episode review.

Feel free to comment below and let us know what you feel about the episode and characters in it.

Thanks again for your visit.

Cheers

Rob

<< Visit the previous episode Eco-Me – The Profit CNBC Season 1 Episode 4

>> Visit the next episode Mr. Green Tea – The Profit CNBC Season 1 Episode 6 Finale

Eco-Me – The Profit CNBC Season 1 Episode 4

Marcus Lemonis Vs Eco-Me

The Company: Eco-Meeco-me-logo
The Owner(s): Robin Kay Levine CEO and Jennifer Mihajlov CFO
Website: https://www.eco-me.com/

 
 

>>Get Eco Me Products On Amazon<<

Episode Intro

In this episode of The Profit CNBC, Marcus lemonis, our favorite CEO visits Eco-ME.

Eco-Me is an all natural cleaning products company founded in 2006 by best friends  Founded in 2006 Robin Kay Levine CEO and Jennifer Mihajlov (CFO and 12% owner).

The idea was to create a safe, all-natural cleaning products line came when Robins’ sister was diagnosed with breast cancer. Robin decided to only use natural products while helping to clean her sisters’ apartment and the business was born.

eco-me-old-products

It is based in California and sells its’ 17 types of cleaning all around the country in wholefoods, target

The basic features of Eco-Me products are:

  • Made with food grade ingredients.
  • No Sulfates
  • No perfumes or dyes
  • No harsh preservatives
  • Is rated #1 on ECO SCALE by greenseal.org
  • MADE in the USA

Last year (2012), the business did half a million dollars in sales with 6 employees.

The business is basically running on fumes and is in need of serious help.

Marcus loves the idea of natural cleaning products and has a plan to turn Eco-ME into a $10,000,000 company.

In this multi-billion dollar industry of cleaning products, this is not going to be easy, as he soon finds out that friendship may sometimes get in the way of business success.

Problems/Issues In The Business Found By Marcus

  • Close to $500,000 in debt with friends and family levaraged to the hilt.
  • Owners of the business have not taken a paycheck in months.
  • No significant machinery for product production, making the process ultra slow, laborious and inefficient.
  • Manual product production.
  • Lack of manpower.
  • Lack of sales.
  • Sales manager Jen, based in the east cost, 3000 miles from the business office in the west coast.
  • Use of friends names (Bill, Emma etc…) on the various product which creates branding confusion with the clients.
  • Sub-par marketing and branding.

Solutions By Marcus To Improve The Business

  • Major re-branding and product packaging update.
  • Sales department has to be revamped.
  • Better overall management of the business.
  • Invest in machinery to increase production from 1200 bottles per day to 1200 bottles in 20 minutes.
  • Selling the cleaning product range to hotel chains.

The Deal

Marcus offers Robin $500,000. He promises to finance the inventory, machinery for product production, pay off the debt and fund working capital for 20% of the business.

Robin straight-up calls him crazy lol.

She doesn’t want to give up that much of the business she created from scratch. She counters with a deal of $250,000 for 10% of the business.

Marcus reminds her that the business may fail without the right investment.

They agree and the deal is done on Marcus’ terms of half a million dollars for 20% of the business.

As usual, for the deal to be effective, Marcus takes full control of the business for about a week. Robin is scared Marcus may fire her staff so he tells her that business is not personal.

All is settled and Marcus writes her a check of $500000 on the spot.

Episode Review Contd.

Now Marcus is in control of the business, he takes Robin and Jen to see ACCUTEK packaging equipment companies, the company that will be creating Eco-Mes’ bottling machinery.

It’s all oohs and aahs as they see machines that will totally eliminate their archaic bottling process and improve Eco-Me production 24 times over.

With this new increase in production, it’s up to the sales department now to generate the demand to keep up with the new production figures.

So Marcus brings in his camping world buyers to test the sales skills of Jen and she doesn’t really deliver on her pitch.

The personal names of people on the packaging present itself as a problem once again so it will need updating on a total brand level.

Drama ensues as Marcus tells Jen she is not good at selling. Robin says that is BS and that Jen deserves an apology.

Marcus says it’s a business and the fact that the owners are friends doesn’t mean that Jen is good for her sales position.

Later on in the show, at a camping world store, we finally see that Jen lacks the basic sales/persuasion tactics as she aggressively tries to force her products on clients. Slamming other products to try to sell hers wasn’t such a good idea either.

After that unsuccessful exercise, the Eco-Me team are made to interact with a focus group to determine how effective the current branding is.

They are shocked as the group is totally lost on what the product really is. They don’t care for the personal names on the products either.

The product packaging failed the focus group test. Potential customers of the product need to be able to identify with it so Robin and Jen agree it’s time to update it.

eco-me-brand-change
So enters Derek, the VP of creative of camping world. He has some new concept graphics to show the Eco-Me team.

Robin hates the new creative, she says its too “mass market”, too “P&G”.

Marcus reminds her that P&G is a multi-billion dollar company. He says he is in charge and he will move ahead with any change not just look better but generate more sales for the company.

Here are the before and after images of Eco-Me products.

eco-me-old-productseco-me-products

The branding and packaging looks much better now.

Next in the episode, Marcus explains how important hotel chain accounts are for a product, so he sets Jen a sales meeting with Strand hotel NewYork.

After almost losing the deal to lack of skill and unpreparedness, Marcus jumps in and tries to rescue it with an offer to do a free trial of the product.

Here again Marcus shows his genius and also that he is not scared to roll up his sleeves and work.

To the surprise of the hotel managers standing by, he takes the brush from Jen and scrubs the WC of the hotel room after Jen confesses that she DOESN’T clean her home toilet herself.

The Strand Hotel gave a very good feedback on the product and may be ordering a trial.

With Jen poor performance with the sales meeting/demonstration, Marcus drops a bombshell.

He won’t go ahead with the deal if Jen is in charge of sales.

Jen storms out for a quick cry.

eco-me-marcusc-jen
Calm returns to the episode as Marcus consoles Jen and asks her if she is willing to undergo sales training, she agrees.

Back in the office, Robin changed the final graphic of the product after agreeing to Marcus’ suggestion.

She and Marcus have a quick argument about it and they promise to agree together before taking big decisions.

Conclusion and Updates on the Business

Finally, Accutek delivers the bottling machine and it’s incredible how updated the Eco-Me production plant is now because of this.

The staff are present and in awe as the Accutek engineers show how the packaging is done by the machine.

At this stage, Marcus has paid of almost all the debt of the business and would have invested over $500,000 in the business by the time it is all said and done.

The brand of the product is now very clear.

The labels on the products explain what the product is and shares the Eco-Me story.

It’s all looking good on the road to 10 million dollars in sales.

In this very successful episode, Marcus was able to resolve problems with his People, Process and Product strategy.

Jen is now improving in her sales and has lined up many major deals across the country. Robin has grown a lot in her managerial skills.

Eco-me sales are up 50% in the very short period of Marcus’ presence and we can gladly say:

Congratulations!!! Eco-Me is now on the way to great SUCCESS.

I hope you enjoyed our episode review.

Feel free to comment below and join the discussion.

Thanks again for your visit.

Cheers

Rob

<< Visit the previous episode Planet Popcorn – The Profit CNBC Season 1 Episode 3

>> Visit the next episode LA Dogworks – The Profit CNBC Season 1 Episode 5

Planet Popcorn – The Profit CNBC Season 1 Episode 3

Marcus Lemonis Vs Planet Popcorn

The Company: Planet Popcornplanet-popcorn-logo

The Owner(s): Sharla McBride

Website: http://planetpopcorn.com/

Intro

In this weeks episode of The Profit CNBC, Marcus Lemonis visits Planet Popcorn, a milti-million dollar popcorn business with a huge Disney contract.

Run by Sharla McBride, the company started from a single cart and $250 to become a huge multi-million dollar business with 30 employees. Continue reading “Planet Popcorn – The Profit CNBC Season 1 Episode 3”

Jacob Maarse – The Profit CNBC Season 1 Episode 2

Marcus Lemonis Vs Jacob Maarse Florist

The Company: Jacob Maarse Floristjacob-maarse-logo

The Owner(s): Hank Maarse

Website: https://www.jacobmaarse.com/

Intro

In this episode, Marcus Lemonis visits the mega florists and gift shop Jacob Maarse in Pasedina California.

This high end florist has supplied flowers to huge events like presidential events and annual rose ball parades. Continue reading “Jacob Maarse – The Profit CNBC Season 1 Episode 2”

Car Cash – The Profit CNBC Season 1 Episode 1

 

Marcus Lemonis Vs Car Cash

The Company: Car Cashcar-cash-logo

The Owner(s): Brothers Jonathan and Andrew Baron

Website: http://www.carcash.com/

Intro

In the intro to the series (the profit season 2 details here), Marcus Lemonis (CEO of Camping World) introduces us to his 3 Ps:

  • People
  • Process and
  • Products.

Lots of shots of episodes to come make our mouth water. Looks like there will be loads of drama and emotions in this series. Continue reading “Car Cash – The Profit CNBC Season 1 Episode 1”

The Profit Season 2 Premiere Announced. Woo-hoo!!!

I am happy to announce that the profit new season 2 with Marcus Lemonis will premiere this month :).

February 25th, 2014 is the date to mark down on your calender. The show airs on CNBC Prime at at 10p ET/PT US time.

the-profit-season-2

Check your local listings for your time zone.

Here is the super trailer. HOT!!!

Surely, this is going to be fun. Don’t miss it.

Cheers

Rob