Marcus Lemonis Vs Jacob Maarse Florist
The Company: Jacob Maarse Florist
The Owner(s): Hank Maarse
This high end florist has supplied flowers to huge events like presidential events and annual rose ball parades.
Founded in 1966 by Jacob Maarse, the business has flourished till recently when its’ founder Jacod died in 2010 and his son Hank Maarse took over.
Jacob Maarse hasn’t made a profit since then and is in dire need of help to survive.
Driven down sales, pilled up debt together with close to $200,000 in predicted losses this year (2013), Jacob Maarse looks to Marcus to help turn the business around.
Hank has already borrowed $200,000 from his mother Clara and a further $100,000 from the bank to try and turn things around, yet the business hasn’t made a profit with him as the boss.
30+ employees depend on the business succeeding to keep their jobs and earn a living.
When Marcus arrives at Maarse, he is not even greeted by Hank at the door. Looks like Hank doesn’t even care.
From here on we start to understand the personality of Hank, drama ensuies.
Problems/Issues In The Business Found By Marcus
Here are some of the problems Marcus believed held the business back.
- Sloppy business practices
- Serious lack of correct management.
- Bad merchandise layout in the store confusing clients.
- Dirty business premises and old fittings.
- Flowers are not on front display even thought they account for 3/4 of the total revenue.
- Loose inventory management.
- Complaints from online reviews about the delivery service, the products and the business in general.
- Archaic delivery system, no GPSs or efficient vans.
- Lack of contact information on the delivery vans.
Solutions By Marcus To Improve The Business
Marcus suggested and implemented the following solutions to help Jacob Maarse make a comeback.
- Hank needs to be held accountable to the business with more action taken from the top.
- Getting rid of excess inventory.
- Modernizing of inventory system with electronic bar coding.
- Cleaning up the premises and renewing the fittings.
- Newly installed security cameras to monitor the business and various departments.
- Changing the layout of the store to displaying the products in a more enticing way for the clients.
- Packaging the product in a way that the true cost of the material and labor is clear and wastage can be eliminated.
- Pricing has to match the growing costs of materials to increase the margins.
- Tighter control on the employees.
- New vans with GPDs for the delivery system.
- Getting rid of excess inventory through a sales section in the store.
- Getting better deals while buying by bargaining with his product suppliers to help increase the margin.
- A re-grand opening to revitalize sales and get feedback from clients.
Marcus offers Hank a deal of $100,000 for 25% of the profit. All Marcus asks is that he doesn’t get screwed. Oh, how much was that a prophetic request.
Hank accepts the deal and it looks like the deal will move on.
As usual on The Profit CNBC, Marcus takes full control of the business for a week.
Conclusion and Updates on the Business
Throughout the show, Hank continues to be very confrontational and negative towards Marcus and the changes made to the store.
After learning that Marcus has invested more than $150,000 into the business, Hank confesses that it may take up to 30 years to make his money back.
Even with the re-grand opening making 30% more sales than an average day for Maarse, Hank refuses to see anything positive about all the work Marcus is putting into the business. He wasn’t even present till the end of the re-grand opening of HIS OWN BUSINESS.
Loads of drama ensuied with Hank and Marcus almost coming to blows live on TV.
Hank drops a bombshell backing out of the deal after Marcus’ money was already invested.
He accusses Marcus of not delivering on his promises about turning the business around even though it is clear for all to see that the business is picking up.
Hank goes as far as to say Marcus hasn’t spent the $100,000 in the business.
This is where the statement of the show is said by Marcus.
“You better call your mama and get my money back”.
That was freaking gold.
So after a deal was made and hand shakes sealing it, the deal falls throught simply due to the incompetence of Hank and his wierd behaviour.
There were many better ways of backing of on a deal and Hank chose the worst…
Looks like he wants to live the stereotype of the “second generation business owner”.
Let us know what you think about this episode and the drama.
Hope you enjoyed our recap of this episode.
Thanks again for visiting.
UPDATE: Hanks’ Mom keeps her promise and pays Marcus back the full amount he invested.
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