Marcus Lemonis Vs Inkkas Worldwear
The Owner(s): Dan and Dave Ben-Nun and David Malino
In this episode of The Profit, Marcus Lemonis visits Inkkas Worldwear. Inkkas Worldwear is a maker of handmade, fair-trade, and eco-friendly shoes. Owners Dan and Dave Ben-Nun and David Malino are crafting shoes with so much respect for the environment and the people. This custom-made shoe business creates casual footwear for both men and women using the best global textiles and inspirations.
Although Inkkas Worldwear has a very unique concept and already reached several wholesale customers, the business is close to losing it all. Most of the sales are coming from online sales, while the rest is from sales to retailers. The Inkkas Worldwear’s storefront in Brooklyn functions as a shoe store, part office and more.
Marcus likes their products and business concept; however, he believes that there were issues that need to be addressed to save the company from closure. Inkkas Worldwear is selling too many products that do not fit the bill. They did not enhance their core and highest selling products, the customers are ordering less.
Problems/Issues In The Business Found By Marcus
- Too many designs with limited sizes.
- Some shoes are not well-made.
- The store is unorganized.
- Lots of debts.
- The business is losing big and can be closed soon.
- Owners did not know their exact numbers.
- Their launching new products too fast.
- Dan’s financial decisions made the company fail.
- Dan struggles to listen to his co-owners.
Because Marcus sees a bright future for Inkkas Worldwear, he offered the Dan, Dave and David 750,000 for 51% ownership. He wants to give the three (3) co-owners $60,000 each as their salaries. Marcus also wishes to use some amount to resolve the debts, pay the service merchant loan, pay for inventory and product development. Marcus is completely in control of everything.
Dan was so excited about the deal but his brother Dave reminded him that he will regret the deal. Marcus gave them two (2) options: (1) $750,000 for 51% ownership; and (2) 600,000 for 40% ownership. But the second option should assure Marcus that he gets guaranteed 10% return. Dan, Dave and David decided to take the second proposal and the deal was sealed.
Solutions Suggested/Implemented by Marcus To Improve The Business
- Inkkas Worldwear stops being a retailer, they focus on being a wholesaler.
- They work on style and comfort.
- They transfer to a new location.
- They remodelled their space and make it more conducive.
- They focus on the core line.
- They stick to the basic.
- They stop reinventing the shoe line.
During The Show…
For the owners to get a real sense of the foot business, Marcus brought them to DNA Shoewear to assess what among the products people are actually buying. They collected necessary points that will give them the idea what should be done. Marcus challenged the Inkkas Worldwear’s team to focus on 5 models with 4 geographic influences.
Marcus and the co-owners visited the Modern Vice. Marcus proposed the idea that they must hire their services to build the prototype with the right style and comfort. Modern Vice can make the shoes with the right details.
Marcus was so glad how fantastic the new Inkkas Worldwear’s location is. He posts a challenge to the team to make 5 new products that will truly represent the company and its core values.
They visited the New York Elegant Fabrics to get the best fabrics. Marcus was disappointed that Dan cannot focus and he is all over the place. He does not want the company to spend money on developing new products every time. He kept reminding Dan that he needs to focus and listen to others.
Conclusion and Updates on the Business
Marcus gave Dan one last chance and let him worked with his team. He wants him to step up and be the leader of his squad. Dan is very creative but normally too aggressive. In the process, with the guidance of Marcus, he was tamed and learned to focus well. Inkkas Worldwear presented their banner products and the owner of DNA Shoewear was happy.
Inkkas Worldwear made a deal with this huge shoe retailer. Marcus was so proud with Dan and all the people of Inkkas Worldwear. They made exciting products that truly represent their company and their visions. Marcus knows that they will succeed.
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