tv The Profit CNBC January 23, 2018 12:00am-1:00am EST
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lemonis: tonihow are you?profit"... ...an actress comes home to ohio to build a health and home-goods brand. monica: i would make all of my own essential-oil products with my dad, with my sisters. lemonis: you've seen real results from this product, and other people have, too. but several years in, there's no happy ending in sight. monica: i am crying more today than i have on seven seasons of "parenthood." lemonis: she won't let her team make decisions, even though she lives and works thousands of miles away. caity: you think i'm going behind your back. i don't know how long i can do it for. lemonis: she is resistant to every change... monica: i hate it. lemonis: ...even though the business loses almost $100,000 a year. you're throwing money into the trash right now. and now the stress is pulling her family apart. monica: [ voice breaking ] anybody who wants to support my mom, [bleep] go for it.
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lemonis: if i can't convince her to trust my process, monica potter home may be at risk of closing forever. monica: i just -- i can't do it. lemonis: sit tight for a second. monica: i-i can't do any more. lemonis: my name is marcus lemonis, and i risk my own money to save struggling businesses. we're not gonna wake up every morning wondering if we have a job. we're gonna wake up every morning wondering how many jobs we have to do. it's not always pretty. everything's gonna change -- everything. but i do it to save jobs, and i do it to make money. this... let's go to work. ...is "the profit." you might recognize monica potter from nbc's long-running series "parenthood." but when she's not making movies or tv, she's making products like skincare, room sprays, and candles and selling them through her company, monica potter home. monica: the best part about the whole company
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is we are bringing jobs back home. lemonis: a cleveland native, monica opened her first retail store in nearby garrettsville in 2014, employing her sister jessica, along with other members of the community. they soon found success with their signature product -- a balm that monica personally developed. monica: sea buckthorn balm. people use it for eczema, burns, scar tissue. it's made of all natural ingredients. lemonis: before long, they opened a second shop in downtown cleveland, and sales blossomed to over 400,000 a year. but monica's expenses? well, they grew even faster. al: credit card's basically maxed out. lemonis: today, the business loses money. debts are piling up, and the downtown cleveland store has closed. monica: i don't want this to fail, because if it fails, you guys lose. lemonis: the personal-care industry is extremely competitive, but having a celebrity attached to the brand
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can separate it from the pack. so i'm headed to monica's store in garrettsville. oh, this is pretty. when i walk through the front door, it had a warm and homey feel, but i spent time trying to find these "skincare" products. i saw everything from scarves to jewelry to greeting cards to dishes, but that isn't what i thought i was coming to. hi there. how are you? i'm marcus. jessica: hi. jessica. hi. nice to meet you. lemonis: do you know where monica is? jessica: she should be here any second. lemonis: okay. jessica: i'm her sister. lemonis: oh, you're her sister? jessica: yeah, i'm her sister. lemonis: okay. i'm surprised she wasn't here. jessica: yeah. well... lemonis: you're surprised, too? jessica: no. lemonis: you're not surprised? jessica: [ chuckling ] you'll get me in trouble. lemonis: how often is monica here? jessica: once every, honestly, month, couple months. lemonis: every couple months? jessica: yes. lemonis: what do you do for the business? jessica: in the beginning, i started it with her,
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with the product line. i was kind of -- lemonis: where's the product line? jessica: very, very first product that we ever had was a candle. lemonis: okay. what's the reason that you guys started the business? jessica: this has always been a passion of hers. my dad was an inventor. we're very creative people. lemonis: parents still around? jessica: my mom is. dad passed. lemonis: dad passed away. your family's here. jessica: yeah. we're here. lemonis: okay. and what are all these products? jessica: this is kind of monica's baby right here. it is a product that -- it's all natural, made from the sea buckthorn berry. lemonis: and why do you say it's her baby? jessica: she had eczema as a kid, and it's good for scars, burns, psoriasis, eczema. lemonis: it's obvious to me that monica has come up with something unique with the sea buckthorn, but in order to really demonstrate that, you want to have the packaging reflect the uniqueness. the jar, to me, looks like somebody just bought a jar off the shelf and slapped a label on it. so who's in charge of the store? jessica: right now, officially, caity. lemonis: and where's caity's at? jessica: caity is...
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she's back here. caity: i'm caity. nice to meet you. lemonis: i'm marcus. caity: thanks for coming. lemonis: so you're really the person that runs this business? caity: yes. lemonis: okay. caity: but with the help of an amazing team. lemonis: do you guys sell online? jessica: we do. lemonis: how much does the web do? caity: it varies. we're really trying to increase web sales, but right now, year to date, our average is about $2,700 a week, and our goal is more like $5,000 a week. lemonis: oh! jessica: speak of the devil. monica: you guys, i am so sorry. hi. lemonis: how are you? monica: you're really cute. lemonis: nice -- thank you. but you're really late. monica: i said i was sorry. lemonis: i'm kidding. jessica: [ laughs ] lemonis: talk to me about the store. what are you thinking about? monica: this store and the website are both extensions of my home. lemonis: everybody said you don't spend much time here. monica: i don't. lemonis: why? monica: because my job and my kids are in los angeles. lemonis: makes sense. hello, ladies. welcome to monica potter. monica: hi. lemonis: come on in. monica: how are you? woman: hi. lemonis: how are you, by the way? i'm marcus.
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kali: i'm good. i'm kali. lemonis: nice to meet you. okay, so i want to understand who the full-time crew is. caity, kali. adrienne: hi. i'm adrienne. lemonis: adrienne, nice to meet you. adrienne: nice to meet you. lemonis: adrienne. so can you guys walk me through the store? it's a bit of sensory overload for me. like, i'm not really sure what i'm supposed to focus on if i came in here. who buys all of this -- monica? jessica: monica has a say in it, yeah. lemonis: like, who picked this? jessica: that i did not pick. lemonis: don't know? jessica: it's -- i -- lemonis: who picked stuff like this? caity: kali actually purchased the angel stuff. monica is big into angels, so she wanted to have some angel-inspired items in the store, so we purchased these. lemonis: and the dishes? jessica: that's probably caity. lemonis: and the clothes? jessica: the shirts were monica. lemonis: and the scarves? jessica: that would have been caity. lemonis: okay, it looks like you guys basically just buy stuff and put your sticker on it. like, is there a buying plan? jessica: no. i don't know. lemonis: 'cause i look around, and i see bowls and scarves and popcorn and coffee.
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it's like, am i at a country store? am i at a five-and-dime shop? am i at a flea market? i don't know where i'm at. ♪ so all this stuff they've just collected over the years? adrienne: yeah. kali: me and her have started throwing a lot of things away. adrienne: just making decisions. kali: we know it's junk. kali: but we're also told a lot, "don't throw it away, 'cause we'll know." lemonis: you guys have a lot of good stuff in here. monica: i already know where you're going with this. lemonis: how much money do you think is locked up in here -- $50,000, $60,000? so how many times have you guys tried to sell stuff or get rid of stuff? adrienne: we had a yard sale this summer. lemonis: did monica know about it? kali: i don't know. did you? monica: you guys, this is the [bleep] problem. there's no communication. so if i'm e-mailing you, like... adrienne: no, it's not -- i don't mean it to come across that way. monica: no, for real. no, it's like you guys are afraid. you can't walk on eggshells with me. tell me so we can address it.
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lemonis: it's a little odd that this early on, the business owner would go from cold to hot so quickly. and what i'm sensing is that there is this undertone of tension that exists between the people that work there and monica. lemonis: i think this really gets back to, what is the purpose of the business? jessica: oh... monica: don't look at me. jessica: we may need therapy for that. lemonis: is it a skincare company? is it a wellness company? what are we selling on the internet? adrienne: there's a whole shelf i can show you. lemonis: can you show me? adrienne: yeah. so, it's right over here. i do all of the shipping. lemonis: these are all the products that have your name on it, right? so there's diffusers, room sprays, candles? monica: right. lemonis: this is the facial oil. monica: the lip balm. lemonis: this is the buckthorn. monica: i had eczema growing up, and everyone always said to me, "what do you use on your skin?" and i would make all of my own essential-oil products with my dad, with my sisters. lemonis: you've seen real results from this product, and other people have, too. monica: that are tangible. lemonis: and it's the ingredients that you believe create the difference. my big question is -- hi, sir. al: i'm al. lemonis: how are you?
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jessica: this is monica's accountant. lemonis: you handle the financials? al: i do. lemonis: as you look at the financials, are you able to say how much revenue is generated from these items? al: it's significantly strong. lemonis: 50% of the revenue? al: probably more. lemonis: and what are the margins on these two products? al: the margin on both of those is 82%. lemonis: what's the total revenue that you guys do as a company? al: approximately $450,000. lemonis: $450,000? that's awesome. how do you break your revenue down? what are the categories that make up the $450,000? monica: skincare, right? lemonis: is that one? al: yes. we do manufactured goods. lemonis: manufactured goods. that's sprays, candles, balms. al: absolutely. lemonis: how much is that? al: $200,000, yes. lemonis: okay. the next category? al: branded wholesale. lemonis: private-labeled products where you source them, and you put your brand on them. al: yes. $45,000, $50,000. lemonis: okay. al: wholesale would be all of the items, some apparel, other home goods you'll see out there that don't have the monica potter brand on them. lemonis: third-party vendors that you buy and resell. al: right. lemonis: it's clear to me that this company needs to get very focused on the manufactured products --
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those are the skincare products, like sea buckthorn -- because their margins are exceptional. 80% margins means we need to pay more attention to that. do you guys have defined roles? does everybody know what their role is? caity: we all do everything we can do every day. there is a lot going on in this business. sometimes i end up having communication issues with monica due to her schedule. i was hired to make decisions. i don't feel like i can do those things without you thinking i'm going behind your back. really, i have your best interests at heart. there's a lot on my plate. i don't know how long i can do it for. lemonis: have you thought about quitting before? caity: yes. lemonis: has anybody else thought about quitting? jessica: i did. lemonis: what did you quit, jess? jessica: i felt like i had nothing enough to offer to help this business. i didn't want to fail her, and it was like, "i got to get out of here. i'm turning into a crazy person." lemonis: and you came back. jessica: yeah. i missed it. i missed the customers. lemonis: you can sense that jess has a level of insecurity.
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i don't know if the reason is because monica wants to drive the process. lemonis: have you always struggled with self-confidence. monica: can i answer? yes. jessica: i guess. lemonis: why? jessica: because she went and did the acting thing, and she's very successful. and i had resentment. money and myself and finances and paperwork -- i don't. lemonis: you don't have to apologize any more for, like, "i'm not good at something." we're here to find out what everybody's good at, not point out what they're not good at. jessica: i think, too, marcus, what i try to do is tell her what to do, and i can be extremely critical, because i'm critical of myself. lemonis: i think when jess compares her life to monica's, she feels less significant. and enables monica to take control. let's you and i go outside and get away from everybody. the family dynamic in a business like this really has an impact, so i want to take monica aside and see if i can get a little bit deeper on this issue.
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what was the real reason you started with this? monica: my dad. when i was little, i would go to the factory where he made fishing lures. i felt, you know, very inspired by that. and his products were good, and we have great products. and so it's just like with my dad, this goes way deeper. my dad thought i was gonna be a boy, so he designated me the boy of the family. and a week before he died, he was like, "make sure you take care of your mom and your sisters." lemonis: i think she's convinced herself that she was ultimately now responsible to be everybody's caregiver. and i think when she took that role, jess accepted that that was monica's role. and that's why there's this tension between them. so, what's the revenue for 2016? al: total gross sales were $427,000. lemonis: okay. that's a good number. monica: really? lemonis: yeah. monica: i didn't know that. that's really cool. lemonis: that's a problem. [ laughs ]
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$14,000 of gross profit a month, and the operating expenses are $20,000. and so there's a $6,000 loss a month, or $72,000 a year. and so where does that $72,000 loss come from? how does that get funded? al: in 2017, it has been funded by our payables. lemonis: which means you've deterred your vendors and said, "i'll get to you when i can"? al: right. and the credit card payable. lemonis: i can see that. so there's a credit card payable for $12,000. al: yeah. that's higher today. it's almost -- lemonis: there's a line of credit at city national for $44,000. there's a huntington line of credit for $50,000. there you go. you're funding your losses with debt or payables. something has to dramatically change. al: absolutely. lemonis: you have $99,000 of assets. that's made up of cash and inventory. what's the total paid-in capital? al: she's put over a million dollars in. monica: [ sniffles ]
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lemonis: that's a lot of money. monica: my job. i saved it up for -- lemonis: how many years? monica: 10. from shows and movies and stuff. yeah. lemonis: and it's all gone? monica: yes. lemonis: if you hadn't gotten new gigs, how would you be funding this? monica: i don't know. al: all of her advisers would have been telling her that she couldn't support this anymore. lemonis: you're throwing money into the trash right now. monica: [ sobs ] jessica: we were treated different by our dad, if you want to go way back. monica: [ voice breaking ] i'm tired of the resentment. if anybody wants to support my mom and the [bleep] city of cleveland, then [bleep] go for it.
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so you don't miss your favorite show. and with just a single word, find all the answers you're looking for - because getting what you need should be simple, fast, and easy. download the xfinity my account app or go online today. lemonis: you're throwing money in the trash right now. monica: sorry. [ sniffles ] lemonis: i'm gonna go talk to her. what's up? monica: i'm okay now. lemonis: huh? monica: i'm sorry. lemonis: there's a lot of emotion coming out today. monica: i'm crying more today than i have on seven seasons of"parenthood." you know, like, i'm -- lemonis: but this is real. monica: this is beyond real. lemonis: did you start this business because you thought it was gonna keep the connection between you and your dad together? monica: yes. but i also love people and want to help people. i thought, well, i can do more through acting
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and use that money for something good. lemonis: and you've done it -- put people to work, delivered people products that they can benefit from. and so i feel like i can help. i think that the business will need a cataclysmic change. ♪ there's no doubt that monica has some good ideas here, and i've had a few days to look over the financials. so i was out in california while monica was working, and i thought it'd be a good idea for us to sit down and see if there's a way for us to do business together. ultimately, the reason that i really like this idea is the sea buckthorn products have benefits to people, have purpose for you. the margins are great. it requires product development and packaging, and to me, that's the easy part, by the way. monica: yeah. lemonis: the hard part is, is that one person has to be in charge that isn't you.
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monica: i don't want to be in charge. i can't be in charge. lemonis: yeah, no. yeah. and so i'm willing to put up 100 grand to get things off the ground so that i can have full control of every change that has to happen, and we'll be 50/50 partners. monica: marcus, what about the million i've put in? lemonis: where is the million you've put in? monica: in all of the mistakes that i've made. it's gone. lemonis: so why would -- monica: but it's also in the products that we've developed, too. lemonis: how much did you spend doing that? just the actual product development. monica: you're smart. lemonis: probably what? monica: $100,000. lemonis: right. we got a deal? monica: deal. lemonis: it's your check. monica: can i give you a hug? lemonis: you can. monica: okay. that's my deal. lemonis: bye. monica: thank you. bye. i'll see you soon. lemonis: see you soon. monica: travel safe. lemonis: thank you. monica: thank you, dad.
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lemonis: so, i agreed to invest $100,000 into the business. i would like to invest in you guys. but at the end of the day, this business can't be managed from california. who's in charge of this business today? al: day-to-day operations is caity. lemonis: okay, and we're gonna respect that leadership. once we build out what this business needs to look like, jess, i want to work directly with you to try to figure out what a perfect role is here for you. what would you want to do? jessica: you know, business isn't my thing. i did take photography, and i did go to art school. lemonis: jess, if something like that interests you, i'd like to help you do that. monica: i don't know if that's the right decision. i need to okay what she does. this is the stuff that -- lemonis: yeah, we're moving forward. monica: i get that. but it still needs to be addressed. jessica... jessica: no, it's okay. monica: i think the biggest problem is -- jessica: it's okay. that's why i walked away -- 'cause i felt like a piss-on. all right? lemonis: you can sense that jess has a level of insecurity, and she became subservient 'cause monica wants to drive the process.
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and so rather than her trying to compete with monica, she just pulls back. lemonis: that's okay. we're gonna work through it. we just have to get everybody in the right roles so that everybody can be successful and we can sell product and everybody can smile again. we got to know what inventory is in this building and how much cash is here. we got to get it freed up. we have to rebuild the website and get every product on here, and if it doesn't belong, we got to get rid of it. we're gonna do more research about the sea buckthorn. we're gonna want to create scents around it. we're gonna want to create other products around it and build the whole lineup. monica: scents? lemonis: yeah. monica: that's so cool. lemonis: that's it. it's literally that simple. if you liquidated everything in this building other than the things that you absolutely had to have, how many skus would be left? monica: oh, can i just show you? lemonis: can we put them down right here? monica: yeah. let's do it. lemonis: everybody grab the things that they absolutely cannot live without. in order to develop a brand strategy, i'm having the team choose the top sellers
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so we can determine what we're gonna sell online and in the store. caity: one's essential oil. one's fragrance oil. jessica: the summer is our first candle ever that we ever made. lemonis: we'll have a whole candle lineup. monica: great. the essential oil, sea buck, and the full-size barn box. lemonis: the box thing is a great way to create gifts, centerpieces. monica: yeah. lemonis: anything missing? monica: um... yes, actually, a textile. lemonis: it's in the store. grab it, okay? lemonis: i'm comfortable moving forward based on four categories -- textiles and paper, number one, room scents, number two, gift box, number three, and then body care and skincare. now that we have the four categories that we're gonna move forward with, we can develop a plan of how we're gonna sell online and in the store. each category is scalable. for example, in the textile category, adding more scarves, linen, and paper will increase sales. in the home fragrance category, we can develop more candles,
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room sprays, and diffusers, including seasonal scents. the body care category includes a number of items, but it is anchored by monica's signature product, the sea buckthorn balm. and the last category is the gift boxes, allowing customers to compile the things from the previous three categories and create great gifting items. so is everybody on board on this is the business plan moving forward? monica: i don't agree to that right now. i'm not gonna agree to that. lemonis: what was the point of all this, then? monica: i need to think about it for a second. i really do. i'm not gonna be put on -- this took a long time to evolve. lemonis: obviously, i know there is extensions of this missing, and the full collection is missing. monica: got it. yeah, okay. then i'm on board. because we're basically coming full circle, which is really cool. lemonis: okay. caity: yeah, it is. lemonis: awesome. monica: yeah. lemonis: caity? caity: mm-hmm? lemonis: do you think maybe the three of us
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can just sit down for a minute? caity: sure. jessica: yeah. lemonis: we've made some really good progress in narrowing down the four categories, and now jess, caity, and i are gonna sit down to understand what's jess' role gonna be going forward. jessica: i'm all screwed up. lemonis: so i thought maybe the two of you guys could just talk about, how do we make this work for everybody? caity: we have had issues in the past with the dynamic between jess and monica that has caused chaos across the board because of the arguments or whatever that you have on a personal level, being sisters. if jessica is around, monica will call her and say, "what's going on?" or, "facetime me. i want to see everybody's desks." jessica: it does put me in a bad -- lemonis: stop it. monica! monica: yeah. lemonis: so, we were just talking about, in order for this relationship to work between jess and caity, they have to be able to communicate without any outside distractions. monica: that's great. like, i really want you to understand that's great. i want you to feel good about you.
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like, i see so much of dad in you sometimes, and it pisses me off because you're so [bleep] talented, and i think it goes deeper. jessica: i mean, we were treated different by our dad, if you want to go way back. it's just we were treated different. monica: i can't handle this. jessica: i'm proud of her. lemonis: tell her now. jessica: she knows how proud i am of her and the things she does for people or the things she's succeeded at. monica: [ voice breaking ] i just need to go for a ride. i'm tired of the resentment. [ bleep ] if anybody wants to support my mom and the [bleep] city of cleveland, then [bleep] go for it. jessica: monica is very resistant to change. she is a self-sabotager. lemonis: are you comfortable moving forward with not derailing the process? tell the truth.
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because each day she chooses to take the stairs. at work, at home... even on the escalator. that can be hard on her lower body, so now she does it with dr. scholl's orthotics. clinically proven to relieve and prevent foot, knee or lower back pain, by reducing the shock and stress that travel up her body with every step she takes. so keep on climbing, sarah. you're killing it. dr. scholl's. born to move. monica: [ voice breaking ] i'm tired of the resentment. i was told what i had to do to take care of the [bleep] family.
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i'm tired. i'm tired. no, marcus. lemonis: yes. monica: i need to go for a ride. lemonis: you're not going anywhere. monica: yes, i am. lemonis: monica, look at me. monica: i am tired. lemonis: i know you are. monica: i'm [bleep] tired of it. a week before my father died, i told you what he said to me. because i was the golden child and the favorite, that comes with a price. lemonis: but you're putting some of that on yourself, too. monica: of course i am. lemonis: it's clear to me that monica's dad has had a huge impact on her, and it's put a lot of pressure on her. and she has this notion that she has to put everything and everybody on her shoulders. come on. let's go. if this is gonna get resolved and not continue to impact the business in a negative way, then we're gonna need to have an open dialogue that involves everyone. i think monica feels like she's supposed to carry the torch of your husband. nancy: yeah, and she doesn't have to. that makes me feel bad, 'cause i can't help you. i don't know what to do.
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jessica: and by the way, he was a great dad. i just want to make that clear. monica: i'm not saying that he wasn't a good father. jessica: but you're carrying this pressure that you feel that's been on you. monica: mom, you shouldn't feel guilty. nancy: well, i do. monica: don't. please don't. nancy: i do. monica: please don't. [ voice breaking ] i love you. nancy: maybe it's good it came out. lemonis: you guys needed to have this conversation. i think we're in a better place. let's take a little break. let's get some food. let's take it down a notch. this was a good conversation for everybody, right? good morning. monica: good morning. jessica: hi. lemonis: are you ready? jessica: yeah! lemonis: all right. let's do it. jessica: all right. lemonis: come on. today, i'm bringing the team to a meeting that i've set up in pennsylvania. it's with the emerson group, one of the largest distributors of personal-care products to the retail industry. matt: welcome. hi. i'm matt. jessica: jessica. pleasure to meet you. welcome. monica: hi. i'm monica. matt: monica, i'm matt. welcome. lemonis: i'm hoping that we can get some professional feedback
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on the monica potter branding and to get some advice on how we can get the sea buckthorn product into stores nationally. matt: we did experience the product, and so i want to know a little bit more from your perspective how this is different relative to other brands in the category. monica: we developed it because i grew up with eczema, and people started using it for a variety of ailments. every home should have this. matt: but why? what you've got to do is you've got to tell them why. the consumer that's walking in a retailer today, they are not gonna know what sea buckthorn is. for a business of your size, the packaging is gonna be your number-one communication. i can appreciate some of the elements where you want some of the monica potter branding in there. and that's a little bit of a differentiator, as well, and that may help it stand out. monica: well, that's a huge differentiator. matt: sure. but not everybody knows you. there are people that know you, but not everybody knows you that would use this product. will the consumer care that it's coming from you? debra: and in 10,000 stores, it's gonna be hard to do.
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monica: but... matt: how does sea buckthorn as an ingredient differentiate versus other ingredients, like a petroleum or dimethicone or -- jessica: it's better than everything you mentioned. lemonis: but we have to tell people why. debra: we have to get that across to the consumer. monica: tell -- then that's -- okay, so we're stuck. debbie, how would we do that? lemonis: it's definitely concerning to me that anytime anybody has anything to say about monica's business that she doesn't like, she gets agitated so quickly. look, i understand what all this means to her, but she has to be able to talk things out in a professional manner. if we can explain all those things, they'll rep it. and if they rep it, it will be successful. thank you, guys. monica: well, thanks. matt: absolutely. lemonis: i'm excited to get started with the new products and the gift boxes. but first we have to get things right at the store. if you don't use it, chuck it. monica: hi. how are you? lemonis: we decided to have a neighborhood garage sale so that we can not only clear cash, but we can free up some much needed space for the online fulfillment center.
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caity: there you go. thank you for coming. so, this is looking at our online-ordering reports. lemonis: i'm also working on caity setting up a technology system that allows monica to track the financials, the ordering, the inventory in real time while she's in l.a. when she calls from california, when she's fancy, you can say to her, "well, you can just go into the system and look." my hope is that the systems, along with the open dialogue, will put monica's mind at ease and allow her to trust everybody, including caity. [ cellphone rings ] morning. caity: good morning. how are you? lemonis: how are you feeling today? caity: [ sighs ] i'm running on fumes, but i'm still going. lemonis: it's only been a few days since i left ohio, and i'm already getting a phone call from caity. this can't be good. caity: monica is very resistant to change. every time we try to do something, whether it's developing a new scent of candle, you know, develop the product line out, rebrand, all of these things that i feel are superimportant,
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it becomes a very tedious process, and monica pulled the plug on it. i think she's a self-sabotager. lemonis: i'm starting to notice this very odd pattern where monica agrees to changes, and then she backtracks from them. and she did it when we picked the four categories, and she's doing it again now. i want you to know that i'll continue to support you and i'll continue to push her. you just got to hang with me for a minute, okay? caity: all right. well, thank you very much. lemonis: okay, bye. caity: bye. ♪ monica: hi. lemonis: come on in. today i'm having monica meet me at my los angeles office. i want to present her with some new packaging options. but before we jump into that, i want to have a separate conversation with her. so i left ohio. i gave caity very clear direction to start working on certain things. she started working on it, and then all of a sudden she stopped.
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monica: mm-hmm. lemonis: and so when i asked her why she stopped, she said that you told her to stop. monica: that's the truth. lemonis: why? monica: because i didn't know what the outline looked like with you and i. and i have a lot of issues with trust right now. lemonis: right. but i took the keys and said i'm in charge. monica: and i didn't trust that. lemonis: yep. monica: and i'm sorry. lemonis: but it's inconsiderate. for me to be pushing people in a bunch of different directions, like, you didn't even have the courtesy to tell me that you wanted to stop. are you comfortable moving forward with not derailing the process? tell the truth. i thwell wait. what did you meetthink about her? it's definitely a new idea,
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lemonis: are you comfortable moving forward with not derailing the process? tell the truth. i don't want to feel like you're working around me. monica: that's fair. lemonis: are you comfortable moving forward with the four categories that we agreed to? monica: yes. lemonis: are you comfortable not derailing the process? monica: yes. lemonis: okay. you want to look at the boards? monica: i'm excited to look at the fun stuff. lemonis: let me get chloe. this situation ended up costing us days of progress in ohio, but we still have the chance to get something done today.
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monica, this is chloe. one of the things that i wanted to do is change the packaging. the packaging is so plain that it's not really gonna appeal to anybody. so i asked chloe, one of my best graphic designers, to start working up a logo. chloe: i have a few logo options. the first one is very similar to your current logo. i connected the m and the p. monica: it's a little thick. chloe: yeah? okay. all right. well, we'll put this one to the side. so, this one -- this one is the most modern, but it's very easy to read. monica: i just don't like the two lines between the "monica" and the "potter." chloe: okay. the last one is my favorite. monica: no. chloe: no? monica: i hate it. i don't like that at all. chloe: okay. monica: it feels very sterile. it gives me a little anxiety. i know that sounds weird. chloe: yeah. monica: but it also doesn't feel like me. lemonis: okay. you brought your computer, right? okay, so when you finish, maybe you want to take a crack at a couple? chloe: sure.
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so, you don't like that, right? monica: mm-hmm. chloe: so i could just take this off. monica: i feel like it feels very masculine now. lemonis: monica, i think you really need to decide who's gonna drive this. monica: jessica is the artist of the family. she went to art school. she has her art major. lemonis: so, do you want jess to work on this with chloe and let her really work on it? monica: yeah. lemonis: we're gonna connect you with jess so you can get some influence from her. but by next friday, we need to be done. monica: thank you, chloe. chloe: thank you. ♪ lemonis: hey, bill. bill: good morning. lemonis: good morning to you. i'm marcus. as we work to develop our own skincare line, i want to make sure that we know everything we can about the sea buckthorn berry. so i'm taking monica to a local farm to meet somebody that specializes in the plant. the more we understand the plant, the more we can develop products
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and communicate to our customers about the benefits. bill: see, in asia, this would be used as a vitamin c source. monica: so good. lemonis: you know what it tastes like? a sweetart. bill: right. lemonis: juli, go on to monicapotterhome.com. and can you make a list of all the things you need from us -- images, product images, everything? juli: yeah. lemonis: in order to maximize the revenue for the company and for me to get a return on my investment, i want to create an entire online marketplace and really inexpensively upgrade what they're doing today. so i'm having my team work with monica's. they'll have it done in a week. it will cost nothing. monica: like, that's amazing. lemonis: caity, you are now in charge of the web business. meanwhile, i'm having jessica work with chloe on finalizing the packaging and the logo. chloe: hi, jess. how are you doing? lemonis: and from what i'm hearing from chloe, she's doing an amazing job. chloe: awesome, yeah, i'll send over something as soon as i have something mocked up. [ cellphone rings ]
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lemonis: good morning. monica: hey, marcus. so, there's lots to talk about. i don't know if you have a minute. lemonis: so, what's up? [ sighs ] monica: well, here's my concern. i know that you have the utmost trust in caity. you said, "caity, you're gonna be the face of this company." lemonis: no, i didn't say she was gonna be the face, first of all. you're the face. i said she has to be in charge of the day-to-day. monica: for her to take things into her own hands --d i'. i said, "cait, listen, i'm twice your age. i know that you don't think that i understand business, but i do." lemonis: monica, look, other people can make decisions. i have to be honest, i'm starting to get annoyed that every time we start to move forward, monica puts a roadblock in front of me. if she really ultimately wants this business to succeed, she's gonna have to learn how to trust her employees. the role that you need to play in this company for it to be successful has to be different than it's historically been. okay? i'll talk to you soon. bye.
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monica: take care. [ horn honks ] natalie: hi. monica: hi. how are you? i'm monica. natalie: hi, monica. natalie. lemonis: today i'm taking the team to agilex. it's a company that specializes in designing custom fragrances that meet the business' brand. natalie: the perfumers make recipes, right? and this is where their compounded. lemonis: in order to make sure that our time is well spent at agilex, i sent in advance a number of things from our company to give them an idea of what our brand is, what our goals are, so that when they make their presentation to monica, there's some thought behind it. natalie: i spent a lot of time on your website and trying to understand your brand. christie: we've reviewed a lot of your products, and we spa'd, and we smelled. and kind of my feeling of your line is that it's very much an aroma wellness -- what we're calling aroma wellness. jeannine: so this is a citron honey tea. it has touches of sweetness, which brings you to the honey. monica: mnh-mnh.
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it's not my favorite. jeannine: okay. monica: honey -- mnh. because it can smell a little bit like bad foot odor. jeannine: okay, now we go into more of a fruity citrus. fruits and citruses, again, is a consumer favorite. jessica: see, i like that. monica: i don't like it at all. [ laughter ] lemonis: juli and chloe, you guys have done a lot in the last couple weeks with agilex, working on the packaging. why don't we go through the colors, just to see how the packaging in the boards works? chloe: for the packaging, jess created a pattern. and i think it would be really awesome for every line to have its own unique pattern. so we could have a lavender line, we could have a buckthorn, based on the different flavors. lemonis: yeah. nice job, jess. christie: i'm totally digging the label. the label's dead-on. chloe: this might be easier to see the pattern. it's really easy to show the different scents with the different colors. monica: it's...
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um... caity: in order for this to be successful, monica needs to be comfortable. monica: i'm sorry. then this is all on me. then this is all on me. no, i just -- i can't do it. lemonis: just sit tight for a second. monica: i can't do any more. [ voice breaking ] i don't know what else to say or do. directv has been rated number one in customer satisfaction over cable for 17 years running. but some people still like cable. just like some people like pre-shaken sodas.
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it's very, like, boho-chic, and the color palette's beautiful. it looks natural. lemonis: you don't like it? monica: mnh-mnh. it's not our customer. we're not boho-chic. to me, it looks like everything else out there. it feels like there should be a little bit more warmth to it. lemonis: you approved the colors, so the colors are not an issue. 'cause the colors came from you guys. monica: no, the colors are great. lemonis: we have a lot of people trying to collaborate here. my goal was to include jess in the process. monica: absolutely. jessica: for anything. monica: feels too busy, and i want a little bit more warmth. i mean, i can sit here and not give my opinion, but why the [bleep] am i sitting here? lemonis: that's sort of what i'm asking myself. because throughout this process, i've taken you down these steps and asked you to trust that i know what i'm doing. and so i brought chloe to the table with juli. we brought emerson to the table. let me finish, please. monica: i'm not saying anything. lemonis: we brought agilex to the table. and so everybody has really collaborated into this. is it perfect? definitely not. but we're taking all your feedback,
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and we're sitting here today, and we don't have [bleep] so... monica: okay. [ mutters ] lemonis: thank you, guys. and, jess, honestly, the work you did was very inspirational. jessica: i'm not -- juli: i think you really showed up, jess. i think that there was a real strength in what you presented and brought to the table. and i don't think chloe would have been able to create something that felt so intrinsic to, like, the brand without you. lemonis: thank you. natalie: okay. lemonis: thank you so much. natalie: oh... lemonis: obviously, at this point, there's more going on with monica than she wants to talk about, because we didn't even get to finish our agilex meeting. quite frankly we didn't get to finish a lot of the things that we started. and in order for this thing to actually not end badly, it's probably a good idea that we all sit down and understand what direction we're going. so, what do you guys think we do now? jessica: i don't know. whatever she's happy and decides.
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it's her money. it's her business. monica: i don't want this to look like every other brand. that's it. caity: in order for this to be successful, monica needs to be comfortable with what we're doing. and i think she has a lot of uncertainty, which makes me uncomfortable. monica: my whole thing about this whole process is not losing sight of why we started it, how we started it, and where we want to go. lemonis: are you really gonna try to sell me that? you've navigated the whole process. so i was at your office. i asked to take over the website. you told me that was fantastic. you asked me how much it was gonna cost. i told you "nothing." you're like, "oh, my god. i've been waiting for this for a year. this is amazing." you're supposed to get them everything. what happens next? caity: you had asked us not to provide that. monica: because we didn't -- marcus... lemonis: right, but you were there, and you gave me permission to do it. monica: because, marcus, i felt like everything was happening so quickly. caity: don't take this the wrong way.
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if you're uncomfortable, sometimes, so are we. monica: i'm sorry. then this is all on me. then this is all on me. jessica: it's you. monica: i don't understand. [ voice breaking ] no, i just -- i can't do it. lemonis: just sit tight for a second. monica: i can't do any more. i don't know what else to say or do. lemonis: you don't have to do anything, monica. monica: what i'd like to happen is for you guys to take it over. lemonis: really? if your business is in trouble and you need my help, log on to theprofitcasting.com. pssst. what? i switched to geico and got more. more savings on car insurance? a-ha. and an award-winning mobile app. that is more.
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does your bed do that? oh. i don't actually talk. though i'm smart enough to. i'm the new sleep number 360 smart bed. let's meet at a sleep number store. it's abor it isn't. ence in 30,000 precision parts. it's inspected by mercedes-benz factory-trained technicians. or it isn't. it's backed by an unlimited mileage warranty, or it isn't. for those who never settle, it's either mercedes-benz certified pre-owned, or it isn't. the mercedes-benz certified pre-owned sales event. now through february 28th. only at your authorized mercedes-benz dealer. you know what's not awesome? gig-speed internet. when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady,
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these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. monica: and what i'd like to happen is for you guys to take it over. lemonis: really? monica: [ sniffles ] lemonis: hey, monica, all we're doing is talking. monica: i just -- i can't talk.
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like, this is so messed up. jessica: why is this messed up? lemonis: i think the reality of it is, and this is you take two strong personalities, mine and monica's, and one person wants to take the car in a direction that he or she knows is better, it's not easy. and that's okay. that makes us friends. that makes us -- you can call me and get advice from me. and you want to drive the process, and maybe that's what makes you and i very similar is that i like to drive the process, you like to drive the process, and there's only one steering wheel. and i'm not gonna take it from you. monica: i want to protect things to a fault.kg and going, "okay, he's got my back." lemonis: it came down to trust. monica was really fragile throughout the process, and i believe that monica made it difficult because her connection to her father is so strong. and the idea of changing this business, maybe it possibly threatened her relationship in her mind
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with her father. but i wanted her to know that it was okay that it didn't work out, and that it didn't need to end bad. monica: and i feel like all the girls are in a better place, all of them working collectively. it's been such a huge change for them. each one of them feels superempowered, and i'm really proud of that. lemonis: there was a lot of good things that happened. jess, caity, the resources that i have, they're available to you from this day forward. and the good news is, monica, you're still 100% in charge. monica: shut up. lemonis: all righty. i'll see you soon, all right? okay. i feel good about the fact that i left the place better than when i found it. i'm disappointed that i'm gonna miss the opportunity. lemonis: keep in touch, okay? jessica: thank you. lemonis: but sometimes it's better to get out while you're ahead.
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♪ . tonight on the profit. dina: welcome to zoe's. lemonis: at a family-run chocolate shop in pennsylvania, the treats are delicious... lemonis: that was really good. -dina: yeah. lemonis: ...but the business is in meltdown. zoe: the last couple years, it's just been declining, and i can't figure out why. lemonis: though the owners, three siblings, have made great sacrifices, they've failed to properly market their product... sean: our initial reaction was that we didn't know how it connected to you. zoe: what's the story to this, that we're greek? lemonis: ...and they're resistant to even the smallest change. petros: we don't want to be mainstream and do what everyone else is doing. that's how we've gotten to 18 awesome chocolate pieces. lemonis: in 10 years. lemonis: if i can't get them to open up and try new things... zoe: i don't like the top. i don't like the cross.
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