Skip to main content

tv   The Profit  CNBC  October 7, 2014 12:00am-1:01am EDT

12:00 am
and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, >> tonight, on the profit, key west key lime pie company, buick, gmc or cadillac - with no limits. a pie company nationally recognized for their so every time you use it, award-winning desserts, run by you're not just shopping for goods. a temperamental owner... you're shopping for something great. who micromanages his selfless learn more at buypowercard.com employees. >> i call bull[bleep] to that. is there anybody that does they're about 10 times softer anything competent down in the and may have surface pores where bacteria can multiply. florida keys? >> with resources stretched thin polident kills 99.99% at multiple locations... >> you want me to order it even of odor causing bacteria though there may or may not be and helps dissolve stains. enough money to pay for it? >> don't worry about that. that's why i recommend polident. >> u.s. key lime pie company [ male announcer ] cleaner, has failed to make a profit on fresher, brighter every day. $1.4 million in sales. if i can't get this owner to focus on his core business of pies... if we don't make, we don't sell it--end of discussion. this business will crumble. >> i really don't want to filmed during this. i really don't. >> my name is marcus lemonis, and i fix failing businesses.
12:01 am
2.5 million people visit key west a year, and you only sell 40,000 pies. i make tough decisions. we're closing the store. we're done. i'm not talking about it anymore. and i back them up with my own cash. >> check that out. >> in order for you to be able to have good peace of mind, i'm >> it's not always pretty... >> tired of this bull[bleep]. gonna give you six months worth >> but this is business. of pay. >> we're gonna have a battle on okay? this one. >> i do it to save jobs... >> [laughs] i got to get some stuff done and >> when you come back, you will you're gonna be our leader here. and i do it to make money. be fully in charge of this this the profit. location, and i'm gonna pay you $1,000 a week so you don't have [theme music] ♪ to bartend, okay? >> [sobs] u.s. key lime pie company is a >> okay? i'm gonna give you a check and pie maker located in beautiful it should help you just kind and sunny key west, florida. of--just be able to rest, take jim brush... care of your baby, and then, >> jeff! >> and his girlfriend, when you come back, you're gonna alison sloat, bought the bust somebody's ass. >> [laughs] company, recipes and all, over >> all right? ten years ago for just $1,200, okay? >> [sniffles] and have grown the business from wow. selling pies on the side of the thank you. road to having their key lime pie named the nation's best pie i won't let you down. by the american pie counsel. >> i--listen, you haven't let anybody down. even though they generate just... $1.4 million in sales, they have >> wow.
12:02 am
>> take care of the oven. >> okay. yet to turn a profit. >> we really are a victim of our it means everything. own success right now. damn it, i'm tired of this! knowing i have a salary when i >> and they've stretched their come back, a salary that i can resources over multiple locations, including a shipping live on... facility that's not making any [laughs and sniffles] and still save money, like, money. >> today, i'm losing $1,000 by that's--i've never had that. not being able to deliver pies. i can't do this every week. >> jim and alison have a staff >> hey, what's up? of employees that are beyond dedicated. >> order it today, 'cause we >> marcus wrote me a check for need to get it into stores, 'cause we're very low on that [bleep]. $15,000 so that i can have some >> i know, i know. >> with increasing debt and mounting losses... >> there's, like, three weeks of outstanding bills here. you owe 2,400 bucks. time for maternity without being >> key west key lime pie company stressed out over my bills, and is facing major cutbacks. >> i don't want to see the i'm gonna be the manager, and company destroyed. that i will be paid $1,000 a at 56 years old, what do i start over with? week so that i don't have to >> but with the right process in place and a product that you have a second job. can't get anywhere else, i know >> [sniffles] this business will be successful. >> uh-- >> how many times through the years did i tell you i wanted to do that for you? >> i know. >> [sighs] all this time you put up with all my [bleep], i was hoping one day, it'd pay off for you.
12:03 am
[parking brake cranks] >> yeah. >> [sighs] >> hi, how are you? [kiss] >> hi, i'm marcus. >> amber, nice to meet you. >> you've stuck with me all >> nice to meet you. is jim here? these years. >> yeah. do you want me to go grab him for you? >> i haven't killed you yet. >> that'd be great. [both laughing] >> sure. >> the first thing i noticed >> day's not over. about key west key lime pie >> i know. company when i walk in, is there [both laughing] are a ton of random brands taking up most of the store. where's the pie? >> i brought in a team of >> greetings. workers to completely gut this >> jim! >> marcus. place. >> how you doing? this is one of our biggest >> good, nice to meet you. >> good to meet you. renovations to date at just over >> pleasure. >> well, there's no shortage of $200,000. everything key lime here. >> no. >> and so is all this stuff-- we're renovating all the walls and floors at just over $38,000. as an example, is this yours, >> well, we can also run it or-- >> no, that's not our product. along there. there's a lot of companies that do carry that. >> how about this one, >> since we now make everything floribbean? from scratch, i want to showcase is this yours? the kitchen with a sheet of >> no, that's not mine. >> it seems like a bit of a glass. key lime grocery store. >> this is where it's all gonna get set because this is where >> it is. one thing people come to the the customer pick-up area's gonna be. florida keys for are key lime >> the kitchen has been totally products. >> what kind of margin do you renovated and updated with new make on all this stuff? equipment and new appliances at >> these cost me about--i think a cost of $95,000. they're $2.30 and i sell 'em for i know these changes will draw $3.25. in more customers, which these are $4.50 and i sell 'em ultimately means more dollars. for $5.50. >> the retail margins on these
12:04 am
products are not great. they're between 20% and 25%, but they take up the vast majority of the floor space in the store, which is supposed to be a specialty pie shop. [indistinct chatter] can i try the pie? >> sure. >> this is just a--this is the >> wow. basic deal? tami! >> just basic slice of key lime pie. you're back. >> what are the ingredients? >> [laughs] >> we have the sweetened >> and the baby. condensed milk. second ingredient would be congratulations. the key lime juice. >> thank you. comes in 1-gallon pails. >> do you like my green sweater? it's already reconstituted, and we put a wet topping in there, which gives it the creaminess. i'm thrilled with the it's actually the same topping renovations. that's on top of the pie. i've spent over $200,000 to we put that in there and it convert what used to be a key fluffs-- >> in the actual-- >> in the actual pie itself, lime mini-mart to now a key west yes. >> and what is that made of? >> that is a powdered product. one-of-a-kind destination. >> i was really surprised to the cluttered retail space has find out that jim's pie is made been replaced with a comfortable with a pie filling from powder. seating area to accommodate more i would have thought that an customers and more profits. award-winning pie would have natural ingredients. >> our retail price for the pie i brought the pie-making process is $18.99. cost us $3.75 to make a key lime to the front of the store to put on a show for customers while pie. they're being made. >> and how many slices can i get no more keebler crusts and no out of that? >> typically, you get about eight slices out of it. more powdered mixes. >> uh-huh. >> and a slice is $4.50. the biggest change are our >> margins are good. products. >> margin's very good. no longer do we sell any product made from other companies. >> are you the only owner? >> the business belongs to instead, we've added a new myself and my girlfriend, dessert station and a beverage
12:05 am
alison. we're both 50/50. bar, using only the freshest >> is she here? >> she's in big pine. >> what's in big pine? ingredients. >> big pine, we have a retail if we don't make it in the store there, and we also do all store, we don't sell it. of our shipping fulfillment. >> okay. and as far as our pie is so how much will the business concerned, jim has spent weeks do in total revenue this year? >> the whole company, perfecting our proprietary $1.4 million. recipe with all-natural >> oh. >> non-branded product will generate probably about $250,000 ingredients. no more keebler crust, no more in gross sales. we still have payroll taxes that powdered filling. we're past due on. >> how much is that? >> 70. >> $70,000 in payroll taxes? it's really good. >> yeah. >> so how much do you have in your original pie wasn't bad, total payables? >> $66,000. but the fact that we didn't make >> whoa. all the ingredients was an issue it's about $130,000 that you owe for me. >> do you think that's an award-winning key lime pie? people? >> yes. >> i do. >> between the--and how much >> what happens if macy's says, cash do you have to--you have "it's not the same pie, we $130,000 in the bank? >> no. don't want it anymore." >> no cash? >> we run on a day-to-day, but-- >> then i'll take the 600 pies that macy's bought and sell 'em and it's almost been like that to somebody else, because i since day one. think there's a bigger market for an all-natural dessert than >> of their total revenue of there is for a $1.4 million, 80% of the revenue chemically-infused dessert. comes from selling pies, which i know that change is hard, but has fantastic margins. the new pie tastes great. the retail store generates 20% our all-natural ingredients are of their total revenue, which gonna translate into real has terrible margins. revenue increases. i can't figure out why they >> these look good. think it's important to dedicate
12:06 am
>> yeah. more than 60% of their space to >> so what is happening? >> the window panes to go up on a part of the business that generates no revenue and no the front doors here. >> oh, these came out great. margin. jim, what do you think? i'd love to see where the pies >> what's that? are made. >> sure, come on in the back. jeff, you got pies rolling? >> yeah, i just started 'em. what is that? >> it's the new logo. >> you can't use that on the-- >> yeah, you can. >> really? >> okay. >> yeah. >> but what is this? >> we're gonna run out of shrink >> okay, that-- >> you obviously don't like it. wrap today. >> uh, that's an awful big >> why? >> 'cause they're out of stock persian lime. because we waited to order do i have any say-so in whether until-- >> why did we wait to order? or not we can use the old logo? >> uh, sure, we could talk about >> i don't know, i brought it up before. it. >> jeff, do you have an answer >> well, just talking about it's for that question? not gonna do anything. >> well, it's right there. >> yeah, i know, it's right >> when did you tell me to order there. >> and so there's a little bit it? of history, right? >> oh, it's a lot of history. uh, i call bull[bleep] to that. it's a lot of history. >> and a little bit of new. is there anybody that does i want people to know we don't anything competent down in the have keebler pie crust-- florida keys? i want you to order it today. >> can--can i sit down for a minute? seriously, no, seriously. if they have any problems with it, then they can call me. >> you want me to order it even i'm looking at you and your though there may or may not be hands are turning red on me. enough money to pay for it, seriously. and-- >> don't worry about that i really don't want to be portion. filmed during this. i really don't. okay? >> okay. i'm tired of this bull[bleep]. >> i'm not feeling good right now. it's monday, >> jim, what's going on? >> well, every time i walk back here, i mean, things just don't get done. you unfortunately have not known me, except for a short time now. >> yeah, i just got a little
12:07 am
preview. >> and i just want things done, that's all, and i want it done my way. >> how we doing? everybody happy? you're not gonna have that baby today, are you? >> two weeks. >> you excited? >> well, i have eight-year-old twins already, so-- >> you do? a brand new start. with centurylink visionary cloud infrastructure, >> tami's probably the only one that i say, "okay, you're right," and i let it go. and custom communications solutions, she's a great employee. your business is more reliable, secure, and agile. she does everything that needs to get done, and she works 2 1/2 days a week at her other job. >> she works two jobs? how much do you pay her? >> about $300 a week right now. i mean, she's got two kids. she's got rent, every--i wish i could pay her more money, but i can't afford it right now. >> i'm very worried that somebody who seems to be a key employee is only making $300 a week. i need to really understand tami's role. can i chat with you for a today could be the day. minute? the day we give you hope. >> okay. >> the inventory, are you managing that? relief. >> yeah, and every week, it's a cure. a fight to find out what they today, need, which is just ridiculous. we believe every life deserves world-class care. >> and what else are you as one of the top four hospitals in the nation, managing? >> staffing, any human resource over 100,000 people from around the world issues... >> right. >> any customer complaints, scheduling, special events. come to cleveland clinic for care each year. >> employee issues? tami really impressed me. and we're ready for you for $300 a week, she's doing
12:08 am
with a second opinion everything. or a same-day appointment how do you get it all done? today >> i don't. today today and everyday. >> have you talked to jim about this? >> yes, but he believes that call today, for an appointment today. everybody should work really hard, and so it's disheartening. it's hard. >> how are you? >> good, how's it going? >> i'm marcus. >> stefanie. >> nice to meet you. what are these for? >> for the key lime pie that we sell in the store. just want to say, >> you guys don't make your own i bundled home and auto with state farm, crust? >> no, we don't. saved 760 bucks. love this guy. so sorry. okay, does it bother anybody else >> why would somebody buy from you when they can buy the crust? that the mime is talking? jim, has that--have you ever gotten any complaints about frrreeeeaky! that? >> we've never had complaint one [ male announcer ] savings worth talking about. state farm. about the product that we have. i mean, we've won numerous awards with these key lime pies. we sell to macy's, we sell them thousands of key lime pies every year, and the customers in new york love it. >> and i think what that proves is that you're a great marketer. the challenge that i have is, i can't invest in something that isn't proprietary, and here's why, if you make a pie and there's no secret ingredient or secret recipe, the next guy down the block can make it.
12:09 am
i want to be able to look people in the face and tell them that i have something that's special and that's unique. i'm on my way to big pine, the company's other retail location. i'm gonna meet alison, jim's 50/50 partner. i want to find out how this store is doing. >> the big pine key store. >> big pine. hello. >> hey, how you doing? >> how are you? i'm marcus. >> david. >> nice to meet you. >> nice to meet you. >> i'm alison. >> nice to meet you. >> it's an honor to meet you. >> nice to meet you. so what makes this location different from the one that i was at earlier on greene street? >> this store is a small percentage of our business, but we also do all of our shipping here. >> how much business will this store do, this location right here, a year? >> retail sales as opposed to the whole company? 10, 12%. >> okay. so what will i find in here? i mean, pretty much the same kind of stuff we saw at the other place? >> this has pretty much the same stuff. >> so you--how many pies do you make a year?
12:10 am
>> 40,000. >> do you make pies in this-- >> we do not make pies in this location. we only make pies in our greene street location. and this is our shipping area where david packs up our packages to ship. these are our products that we use for shipping, and we have dry ice here for shipping. this store costs more to run >> i really don't want to be filmed during this. i really don't. than it brings in, in revenue, >> okay. >> i'm not feeling good right but we need it because of-- now. >> okay. because we're doing our shipping out of here. >> oh. the big pine location has two functioning separate businesses, a retail location, and the other >> do you want some air? is their shipping department. >> want to go get some fresh air? the retail location accounts for less than 10% of the total >> yeah, let me walk outside. >> okay. revenue, but after you add rent >> walk outside with me. and labor and utilities, well >> i know that change is tough, that accounts for a lot of the loss. but to jim, it's absolutely but when you have high rent factors, every one of these terrifying. i've turned his world completely tiles, which is a square foot... upside down. >> has a dollar on it. hey. you're putting yourself under >> costs money. how much are you losing a year? too much stress. >> yeah, i know. >> this store's probably losing >> okay, and so here's the about $20,000, $25,000 a year. deal--and i know you know this. >> and how much is your rent? >> about $25,000 a year. you put yourself under a lot of >> so it's the same. pressure. so that's what you have to you remind me a lot of my dad. really be thinking about. >> okay. i think the place looks pretty
12:11 am
darn good. >> i think it looks beautiful. >> and i think you should be proud of yourself, so let it go >> key west key lime pie company does $1.4 million a year in a little bit, and take a deep breath. sales, but it's losing money we're gonna make a lot of money, and everything's not perfect, operating multiple locations. but that's okay. i know that if i can improve the product and consolidate all >> but i want it that way. >> i know you do, but i'm very the operations to one location proud of you. i tell you that from the bottom at greene street, we'll stand of my heart. to make a lot of money. you guys should be very proud of yourself. i mean, you have a $1.4 million business. >> yeah. >> thank you. >> here's the problem. you guys know that i'm a people, process, product guy, and i'm a little disillusioned by the product. i thought, when i came down, i was coming to see a proprietary you guys excited? >> all: yeah. recipe. that's why i came down. >> okay. >> today's the grand opening and >> but i'm not impressed that if jim can just let go and enjoy i walked in to the kitchen and it, it's gonna be great. are you guys ready? i found keebler pre-made pie >> i'm ready. >> okay. crusts. >> let's do it. >> well, those products-- >> let's open. >> i'm not impressed that it's pre-bought key lime juice. yes, we're open. >> we are, come on in. >> come on inside. i want to partner with people we're officially open. that have the best product, that >> whoo! have a good process, and they're >> how's everybody today? good people. >> well, right now, the process >> i would like a piece of key lime pie.
12:12 am
and the people we have. do you want one too? >> yeah, a slice. >> well, who determined that you have the process? >> looking good, looking good, guys. >> i do. >> i can tell you, you don't. >> so far, the opening is going great and the team is working very hard. when's the last time you took a more importantly, people love paycheck? >> six, seven months ago. the new pie, especially the >> okay. so your process has to be filling and the crust. a little broken. you're $130,000 in debt. >> this is great pie. >> best key lime pie ever. >> mmm! your business doesn't make any that's good. money today, but it generates >> we've had to make adjustments here and there. $1.4 million worth of sales. >> this counter can be moved back just a little--come out you can't produce more than this way a little bit more. 40,000 pies or the system really i'm gonna do that right now. go. >> and we're gonna get it right, breaks. >> correct. >> things have to change. but it's a model that will become a key west destination >> oh, it all depends on what you propose. >> give us your offer. forever. how's this feel to you? >> so my offer is, i will up to >> it's a lot. it's, you know--it's awesome. $450,000 to satisfy the payables i have a hard time believing that i deserve it. as needed, build out the >> [chuckles] you do. greene street location, but the >> [laughs] thank you. >> i'm proud of you. recipe has to be proprietary. >> thank you. >> i am really proud of you. >> i am so incredibly grateful i will have 51%. you will have 49%. to marcus. having one job and being able to >> no, that's not gonna happen. spend more time with my never would i do that. children, it's unbelievable. >> okay, so what are you opposed to? >> giving up control of the i can't. company. [laughs] >> i'm not opposed to that. >> no, no, no, no. i-i just am.
12:13 am
i-i am. i just don't like giving up what [sniffles] i started to somebody else. i'm not interested. this is a bunch of bull[bleep]. >> kids are working well together. >> you know, they are. >> they are. >> it's a good vibe. >> coming up... >> box it up and get it out. >> your idea of having this, i mean, it's not a new concept, >> i don't agree with that. >> everything's a dollar! come on in! but i have to agree with getting then later... we're closing the store. >> i don't like surprises like rid of all the other stuff. this! 20% of our sales was 80% of inventory. >> yeah. >> which i--every time i looked at that, i'm like, "i have to keep buying this stuff." >> it's like a dead weight. >> it was--it was a vortex that i just couldn't get myself out of. >> yeah. >> but now, it's like people are coming in and they're going, "this is all i want." >> i really believe that in this particular business, we've changed the product, and it's now fantastic. we've really improved the process, but we've probably had the greatest impact on the people. >> bye, guys, thank you. >> bye, thank you so much. >> see ya. >> thank you so much! >> take care. >> jim's a totally different person, and he realizes that if ameriprise asked people a simple question: he lets go, things will always in retirement, will you have enough money to live life on your terms? work out. i would say this one's a success. >> i'm extremely excited. >> i haven't had anybody tell me what to do for 20 years. >> yeah. i sure hope so. >> [laughs] >> well, now, tami's telling-- >> now tami tells me what to do.
12:14 am
with healthcare costs, who knows. >> we have work to do, guys. >> no, no, no. >> come on! >> you are a pain in my ass, you umm... know that? [laughter] everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need. start building your confident retirement today. could save you fifteen percent or more on car insurance. everybody knows that. well, did you know you that former pro football player ickey woods will celebrate almost anything? >> tonight on the profit... i go inside worldwide trailers, unh-uh. a custom trailer manufacturer number 44... whoooo! forty-four, that's me! in tampa, florida. and so is this essentially get some cold cuts... a commercial kitchen? get some cold cuts... >> yep. get some cold cuts! >> that's your serving area. >> co-owners struggle to work whooo! gimme some! together after their nasty breakup. geico. fifteen minutes >> you're a pathological liar, could save you fifteen percent is the way i look at it. or more on car insurance. >> i can't work with you. whoo! forty-four ladies, that's me! >> i have my work cut out for me. whoo...gonna get some cold cuts today! for me, it's all about business. >> none of it would've-- should've been anything except for business. >> i need to put the controls in place... my name isn't going on this if it looks like this. there's no way. >> we do track our money. >> but no, you don't track your money. and make sure these bitter
12:15 am
rivals can work together. >> yeah, you got that right! >> my name is marcus lemonis, and i fix failing businesses. i don't know how you run your business this way. i make tough decisions. i can tell y for goodnight. goodnight. for those kept awake by pain the night is anything but good. introducing new aleve pm. the first one with a sleep aid. plus the 12 hour strength of aleve for pain relief that can last until the am. now you can have a good night and a... good morning! new aleve pm. for a better am. [light instrumental music] ♪
12:16 am
female announcer: recycle your old fridge and get $50. schedule your free pickup at: >> i will have 51%. you will have 49%. >> i'm not interested. this is a bunch of bull[bleep].
12:17 am
>> all right, so let me ask you a question. what if we make for a wage $1 for every pie that we sell? if we sell 400,000 pies, you make $400,000. you make a million pies, you make a million dollars. you will have 49% of the stock and you will have a dollar for every pie that we produce. >> for the rest of my life? >> for the rest of your life. >> i just don't like giving up what i started to somebody else. >> you want to be in control. what if we flipped it and you were 51 and i was 49, and i got a dollar a pie and you didn't? i would be more than happy to give up 2 percentage points for a dollar a pie. if that control is that important to you, it's not that big of deal for me. >> i-- >> sounds different. >> i'd be glad to work for you. >> i think it's a-- >> but you're gonna pay me first. >> no, i think it's a control-- i-i-i'm sorry to say this, but i think it's a control issue for you. >> i guess i just don't want to wind up... >> yeah, we've met in our-- >> being the face of the company and that's it. >> i want the dollar of the pie.
12:18 am
i think you need to let go of the control issue. >> this is the way i've been my whole life. okay, maybe it's time to change. >> and how is that working for you? >> oh, stop it. >> take the offer. the original offer is better for us, and i like it. i think this is the right decision. take my hand and take a leap of faith. let's do it. >> okay. >> yes? >> yes. >> yes. >> we have a deal? >> we have a deal. >> we have a deal. >> we have a deal? good. so believe it or not, i'm actually gonna write you a check today. >> right now? >> right now. >> okay. >> you're kidding. check that out. salud. [laughter] >> tami?
12:19 am
>> yup, yup. >> everybody come on out here for a minute. >> tami? >> yup, yup, yup. >> okay. i wanted to get you guys together to let you know that yesterday, alison and jim and i made a deal. i agreed to put $450,000 in this business. the purpose of that is to take care of all the bills, put some working capital in the business. i'm 100% in charge. what i say goes. i believe in people, i believe in process, and i definitely believe in product. we're no longer gonna be pie assemblers. we're gonna be a pie-making company. if we don't make it, we will not sell it. jim, how's this sitting with you? >> yes? >> yes, i agree with you. >> in addition to that, we're gonna change the way this store looks. i actually think it looks awful. we want a flagship store where there's plenty of places to sit and that people walk an extra mile just to come here. the other thing is, we're gonna
12:20 am
pay a little bit better than everybody else in town, i have to be honest. we're gonna have high performance, high reward. it's my job to make sure that people feel like they can have one job, not two. and we're gonna come up with a small incentive plan, just like i gave the two of you an incentive plan. the team is gonna get a piece of every pie we make, because every one of you brings something to the table. tami, what i've noticed that you do for this business is overwhelming, dealing with employees and dealing with vendors. you don't make a lot. you work your fanny off. all of you work hard. we're gonna operate like a family. >> how soon? >> tomorrow sounds good. >> [laughs] >> i'm ready. >> i've been ready. [laughter] >> it's time to clear out the small-margin generic items from the store. the pies come with a huge 80% to 90% margin, but the retail stuff, it drags along a 20% to 25% margin, and so every square foot that we utilize to sell low-margin product isn't gonna help us make money. what i need to do is to convert
12:21 am
that space into faster-moving products like pies. so here's what we need to do, box it up and get it out. >> all right, box it up, get it out. >> yup. >> no, we haven't made a final decision on that. have you done your demographics on people who want to come in and get slushies and pie bars and key lime soda? >> i'm gonna get you whatever you need for amnesia. remember what i said, if we don't make it, we're not selling it. we all agreed on that. >> tami, you don't think people should have opportunity to buy these things? >> not here. it's all this same [bleep] that they have everywhere. >> i don't, uh--i don't agree with that. >> if we don't make it, we don't sell it. period, end of discussion. i mean, we need this to get done, like, today. >> where are we gonna put it? >> we're gonna liquidate it, but we need to start-- >> but why don't we leave it on the shelves and mark down the pricing? as people come in, we get rid of it that way. >> well, 'cause i don't want to wait till next christmas. >> sort that. >> well, marcus, what are we gonna do with this stuff now? >> sell it. why don't we put up a couple signs? and let's start working on that.
12:22 am
>> tami, make up signs. everything's a dollar. >> if we don't make it-- >> we don't sell it. >> everything's a dollar! come on in! >> get all of your souvenirs and save an amazing amount of money. >> how you doing? how you doing? everything's a dollar. >> we're gonna make it easier for people to buy stuff. >> we have a store full of customers. people have been coming and buying stuff like it's going out of style. i'm gonna make you a millionaire, but you have to trust the process. [cash register dings] what i want to do is, i rented out this commercial kitchen and i hired three chefs. we've got to figure out this recipe thing. key west key lime pie company has been using powdered mixes and pre-made crust in order to save money. i hired three of the best pastry chefs in the key west area to help me come up with a new and
12:23 am
better product. what we really want to do is come up with a proprietary recipe and know that we have a recipe that will last for the ages, something we can pass on. >> well, i got to say, marcus, my recipe has stood the test of time too. this has been around for decades. >> when people come into the store, they expect to get the pie that was from scratch, and they're not getting that, so we can't do that anymore. >> that is a tried-and-true product. >> would you use a keebler crust? >> no, i would make my own. >> 2.5 million people visit key west a year. you only sell 40,000 pies. all right, guys, well, listen, can we get started? >> oh, yeah. >> sure. >> that'd be great. >> absolutely. >> what is this base? >> this is 50 graham crackers, 50 oreos, and macadamia paste. >> it's all well and good to experiment, but-- >> you bake the crust. once the crust is set, then i have a pot here of chocolate. that gets poured across the bottom of it. >> very laborious. >> so-- there's no sweetened and condensed milk in this. yeah, it's just straight eggs, sugar, and lime juice.
12:24 am
>> i don't see it working. >> all right, so i'm doing a cereal crust. it's half honey nut cheerios, half graham cracker. for the filling, my secret ingredient is vanilla ice cream. now, with the ice cream going in, i upped the number of eggs. >> that one's good. >> the crust--i don't get a whole lot of flavor from the crust. it's all pretty and everything, but you can't do that for 100. you can't do it for 20. >> mine was taken, like, right out of here with the scoop. >> yeah. >> the idea is to have some of the crust on the side. my idea behind it, just let people play. to me, it's key west in a jar as well. >> it's a pain in the ass. >> well, jim, we can have our own preferences. i have mine, you have yours, but what matters is the consumer's opinion, right? they sign our paychecks. they pay our rent. so i'd like to take these pies back to the store and let people taste 'em and see what they think. >> we're gonna have a battle on this one. >> coming up... we're closing the store.
12:25 am
that's it. >> i can't put up with this [bleep] anymore. [glass breaking]
12:26 am
♪ who's going to do it? who's going to make it happen? discover a new energy source. turn ocean waves into power. design cars that capture their emissions. build bridges that fix themselves. get more clean water to everyone. who's going to take the leap? who's going to write the code? who's going to do it? engineers. that's who. that's what i want to do. be an engineer. ♪ [ male announcer ] join the scientists and engineers of exxonmobil in inspiring america's future engineers. energy lives here. it's in this spirit that ingu u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya.
12:27 am
changing the way you think of retirement. with centurylink visionary cloud a brinfrastructure, and custom communications solutions, your business is more reliable, secure, and agile. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy.
12:28 am
see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. >> let's bring this other table together. with the help of three professional pastry chefs, we've come up with three original takes on the key lime pie. i've asked the employees to not only taste but give us feedback on the creative process while we develop new recipes. let's try this one. >> no. >> tastes like a cereal, um-- >> um, it is, it's, um-- >> yeah. >> i like the crunchiness, but the flavor of the crust isn't that exciting. >> all right, let's go to the next one. >> okay. >> it tastes like lemon meringue pie. >> it's too sweet. this, you could put the lid back on. >> it's all on social right now too. >> yeah. >> everything in a-- >> mm-hmm, in a jar. >> salads in a jar, and-- >> oh, boy. >> okay, did you like that crust as something different? >> i like when jim makes his crust, like, for special events and stuff like that. >> jim, i didn't know you made a crust.
12:29 am
>> yes, he do. >> i do, for special events, sometimes we'll make 'em. >> i like his crusts. >> do you like his crust? >> absolutely. >> tami, do you like his crust? >> yeah, yup. >> why am i just finding out now that you make your own crust? i did not know that. >> i can't mass-produce my own. >> it's my job to figure out how to mass-produce it, so i want to taste your crust. >> okay. >> today, i'm headed to hogfish bar where tami works her second job. it is shocking to me that she's able to hold all of her managerial duties at key west key lime pie company and do this. tami's one of those amazing employees who goes above and beyond. without tami staying involved in this business and staying dedicated, we'd be in real trouble, and i have to figure out how to keep her motivated, not just financially, but emotionally. hey, tami. >> marcus! >> how are you? >> good! >> both: good to see you. >> can i get a iced tea? >> no problem. >> how long have you worked here? >> a little over three years.
12:30 am
>> hard with having the kids? >> it is. >> how many days a week do you work here? >> two nights. >> wow. hey, thanks. >> i try and take one day off a week. a nine-hour day on my feet is hard. i'm not 25 anymore. [laughs] >> so you're gonna have three kids and two jobs? >> yup, got to make the money, pay the bills. >> i-i hate to ask you this, but if you could make good money here, why wouldn't you just quit that job? it's 300 bucks a week. i think you could probably make that here. >> i could make that here in a night, but-- >> you could? >> yeah, absolutely. >> so why do you stay there? >> because i love the people. i love the idea of the company growing. i think that it's got the potential. >> you're a trouper. >> [laughs] i am. >> one of the biggest problems facing key west key lime pie company is the losses that it's incurring from their big pine retail location. i've asked jim and alison to meet me here so we can over the numbers and the plan of action. >> hi, marcus, what's going on? >> how's it going? >> good, what's going on?
12:31 am
>> okay. >> well, i wanted to dig in the financials of this location. how much business do we do here? >> this store does about $85,000 to $100,000 a year. >> and you did how much last year? >> the whole company? $1.4 million. >> so it's less than 10% of your business? >> correct. >> big pine is doing $85,000 a year in sales, but the cost of operating the store is more than the gross profit that's generated on that $85,000. between rent, utilities, labor, et cetera, they're losing $25,000 a year. to have a store open that doesn't make any money, it just doesn't make any sense. so we're gonna close it, and we're gonna close it today. >> what am i gonna be doing? >> you're gonna make a pie crust. you're gonna go out on the road and you're gonna help us sell pies commercially to grocery stores and other people, and you're gonna be the face of the business, but i do not need you making decisions, 'cause i don't want another store that loses 25 grand-- >> i've got a three-year lease left on this, how-- >> uh-huh, well, we got to sublease it, we got to figure it out. this business doesn't have the working capital to withstand it, and i'm not putting up to $450,000 in the business so i
12:32 am
can fund losses. >> uh, david, you're out of a job right now. how do you feel about that? >> what am i supposed to do? i took the bus up here. >> david, you're not out of a job. you got to finish the shipping over there, and then we're gonna figure out the transition plan. >> you're coming in here, and you're telling me-- >> look, jim, we're closing. >> no, wait, you're coming-- you're coming in here and you're telling me you're closing the store. >> that's right. >> okay, what are you gonna pull next? i mean, what--what--what's gonna happen tomorrow? >> whatever it takes to be very successful. >> yeah, but are we-- >> whatever it takes, because the plan that you guys have had didn't work. >> so i get to-- >> but, our-- >> i-i-i get to go to sleep at night and, you know, it's, like, lay there in bed and go, "what the hell's gonna happen-- >> here's what you get to do, you get to go to sleep at night and know that your i.r.s. bill's paid. you get to go to sleep at night and know that your payables are paid. you get to go to sleep at night and know that you're actually gonna make money. i'm gonna do whatever it takes to put a manager in charge that meets my standards so that you don't have to be there seven days a-- >> i don't like surprise like this! >> well, you know what? you're gonna continue to be surprised. you're also gonna be surprised when you get a check at the end of the year and you can actually put it in the bank.
12:33 am
>> that's enough, you're out of here, you're gone. it's my company. >> yeah. >> you don't like it? get out. okay, if i-- >> you're a minority partner. i'm 100% in charge. when you took my check and you agreed that i'd have 51%, and i told the employees that i was 100% in charge, i wasn't kidding! >> you better be right. you better be right. you better be right. >> i know i'm right. >> because if not, ali and i are [bleep]. we-we--walking back on the street. we lose our home. we lose our cars. we're done. >> so let's get this-- >> he's--he's--he's the one--is responsible for the rest of our lives right now. you understand that? >> well, no, you're responsible for the rest of your lives. >> no, but if--if you're take-- >> i'm responsible for your key lime pie business. >> okay-- >> i am not responsible for your life. >> but-- >> if we want to shut something down, you're gonna go with it. that's it. we're closing the store. we're done, i'm not talking about it anymore. >> i can't put up with this [bleep] anymore. [glass breaking] >> if your business is in trouble and you need my help, log on to theprofitcasting.com. ♪ turn around
12:34 am
♪ every now and then i get a little bit hungry ♪ ♪ and there's nothing good around ♪ ♪ turn around, barry ♪ i finally found the right snack ♪ [ female announcer ] fiber one. ♪ i finally found the right snack ♪ hi, credit report site andour i have a problem. i need to speak with your fraud resolution department. ugh, we don't have that. what should i tell him? just make that super annoying modem noise... (shuuuuuuuh....zzzzzzzz...de ee...dong...shuuuhh...) hello? not all credit report sites are equal. classic. experian.com members get personalized help plus fraud resolution support. join now at experian.com. with enrollment in experian credit tracker. you know.... there's a more enjoyable way to get your fiber. try phillips fiber good gummies. they're delicious and an excellent source of fiber to help support regularity. mmmm. these are good!
12:35 am
the tasty side of fiber. from phillips yoare you kidding me?oo? everybody's on woo-woo! [elevator bell rings] woo-woo? lock and load, people! we're going all in on woo-woo! ok? mark! comp us up a profile page! copy! susie! write us some posts! ready! grace! upload some videos! uploading! i want sponsored woos. i want targeted woos. we want to be all up in your woo-woo feeds! gordon! register our woo-woo handle! janice?! we need an ethnically ambiguous woo-woo mascot. we're cashing in the q4 budget, people, and we're buyin' some followers! hahaha! yeah! [applause] woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! woo! oh yeah! [laughing] dude. are you still on woo-woo? naaaahh, man, my mom's on woo-woo. ♪
12:36 am
♪ [ male announcer ] you're watching one of the biggest financial services companies in the country at work. hey. thanks for coming over. hey. [ male announcer ] how did it come to be? yours? ah. not anymore. it's a very short story. come on in. [ male announcer ] by meeting you more than halfway. it's how edward jones makes sense of investing.
12:37 am
>> we're closing the store. we're done, i'm not talking about it anymore. >> i can't put up with this [bleep] anymore. [glass breaking] he better be right. >> jim is really struggling with the fear of the unknown. in order for this business to be successful, i need him to trust me and get on board with these changes. >> even the fact that i am a
12:38 am
control freak, i know we are hemorrhaging so [bleep] bad, it hurts me to see this. it really, really does, and when i wake up every day and i know that this [bleep] store is losing this much money, and i walk into duval street, i'm like, "this place looks like [bleep]." because i'm very proud and passionate about what we do, it [bleep] hurts. >> it's below your standards. >> it is, but because of the resources that we've lacked, i get up and go, "why can't i fix this? i'm a smart person! i'm not [bleep] stupid, but i can't fix it." >> and so the way you do that is that you shrink things down. what we have to do is bring it all back together and tighten it down and go to one facility and really refine the process, and honestly, jim, you're not a failure. this location's a failure. this business idea was a failure, but that doesn't make you a failure. okay? i know you're struggling.
12:39 am
you'll be all right. okay? >> mwah. >> i know. >> start packing this [bleep] up. >> i'm gonna want to have reclaimed wood everywhere. >> okay. >> 'cause that feels to me a little more natural and island like. >> i like that. >> we have cypress, aged. it's readily available. we can get it on a truck tonight. >> now that we've liquidated the low-margin generic products and closed big pine, it's time for me to renovate the greene street location so that we have 100% of our focus on selling fresh, hand-made, all-natural pies. and i want the half drywall to go all the way down, and the difference between here and here... >> yup. >> is glass. when we get down to here... >> yup. >> i actually want to do a counter of just four seats. >> okay. >> the glass will stop wherever the production stops. >> right. >> i'm changing the layout to maximize the floor space for pie sales. i'm also bringing the kitchen up
12:40 am
front so the consumers can see that it's hand-made and all-natural. by expanding the seating and adding a viewing station, i want consumers to be able to have a unique experience watching us make pies and understand what goes into each one. with the change in our product and the change in the process, key west key lime pie company will start to increase revenues dramatically. with our margins being between 80% and 90%, we're gonna start to see big money on the bottom line. this all gets blown out 'cause all this will be gone. you're not gonna have the dry goods. look at all the space you just picked up. >> right. we'll put coolers and refrigerators along that back, so it'll be pies, pie bars, whatever we want to do. and then along that back wall, derek, is the menu wall. not only are we changing the look and feel of the store, but we're also changing the pie so that it's all-natural and proprietary. i learned from the employees that jim actually makes his own crust. i want to taste it. so you know, it costs $1.30 to make it fresh... >> mm-hmm. >> versus 98 cents.
12:41 am
it's 32 cents more. >> mm-hmm. >> on a product you sell for $19.00. a guy like you, who knows how to make a crust, doesn't need a 98-cent piece of garbage when it's 30 cents more. with the extra cost of labor and materials, the new pie crust is gonna cost $1.30, 32 cents more than the pre-made one, but our product will now be a real stand out. because of that, i know we'll sell more. that was good. the issue that i had before is that the filling had a powder substance. our pie filling also has to be revamped. i want an all-natural pie filling that tastes amazing. so this is the big difference. >> this is the big difference. a dairy, all-natural whipping ingredient, okay? >> more expensive? >> it is more expensive. it's about three times the cost. >> okay. oftentimes in business, people think you can make money by raising prices. in this case, we're gonna make money by raising volume. i'm actually gonna lower the price of the pie.
12:42 am
everybody in town sells their pie for $18.95 and everybody's crust is pre-made. ours is homemade, our ingredients are all-natural, and our pie is $16.95. i'm gonna beat 'em on all fronts. >> i think we're almost there. >> i think that's good. >> okay. >> okay, thanks. >> all right. >> what are you doing? >> [laughs] inventory. >> inventory? so you take the inventory too? >> of course. >> is there anything you don't do? >> no. >> look, i continue to be amazed by tami's work ethic. she's making $300 a week working two jobs, two kids at home with a third on the way, and she has to deal with jim, which is no picnic. i need to make sure that she knows how much we appreciate her, and although a pat on the back is often good, giving somebody financial stability goes a lot further. i have to tell you, we need you here, and this is more important than any pie we'll ever make, but i'm gonna need your help before you leave, 'cause i gotta get some stuff done and you're
12:43 am
gonna be our leader here. okay? >> okay. >> but in order for you to be able to have good peace of mind, i wanted to give you some money. i'm gonna give you six months worth of pay. okay? >> [laughs] >> can--can i sit down for a minute? seriously, no, seriously. i really don't want to be filmed during this. i really don't. i'm not feeling good right now. (receptionist) gunderman group.
12:44 am
gunderman group is growing. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome! i love logistics. i wish... please, please, please, please, please. [ male announcer ] the wish we wish above all...is health. so we quit selling cigarettes in our cvs pharmacies. expanded minuteclinic, for walk-in medical care. and created programs that encourage people to take their medications regularly. introducing cvs health. a new purpose. a new promise... to help all those wishes come true. cvs health. because health is everything. cvs health.
12:45 am
♪ oats go! wow! go power oats! go! go power! yayyyy! ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today. where the reward was that what if tnew car smelledit card
12:46 am
12:47 am
12:48 am
12:49 am
12:50 am
12:51 am
12:52 am
12:53 am
12:54 am
12:55 am
12:56 am
12:57 am
12:58 am
12:59 am
1:00 am

74 Views

info Stream Only

Uploaded by TV Archive on