let's understand it. let's learn, let's learn here. put him to work, dante. let's head inside. the things not selling doesn't mean that it's a failure. dante: all right. let's go. lemonis: put your pops to work. could be price. vinny: that's what we did. we need some cash in the cash register. we learned that there wasn't a price resistance at $12.99. dante: that's absolutely true. lemonis: let's rock and roll. lemonis: well, there must be if you only sold 10. did you try any at $7.99? vinny: that's the wrong assumption with this amount of traffic flow, period. am. ♪ vinny: come on over, guys. twe've got fresh coconuts here. lemonis: did you just hear what he said? lemonis: ...a ukulele-strumming hypeman because i want to make sure i processed it right. thinks he's cracked the coconut code, is this guy for real, or is he just trying to always sell me creating an exciting new way to market coconut water. with his "coco" character? vinny: it's not a price game. vinny: we do 108 to 130 coconuts an hour. this is a traffic game right here. it's 5 bucks... lemonis: okay. lemonis: that sounds so stupid when you say that. but is this a viable business concept vinny: this is the ultimate vacation beverage. or just simply a gimmick? lemonis: if we drop the price of our pie, michael: it just worries me because when you don't have would we sell more today? stephanie: oh, yeah. a patent, then you don't have a product. vinny: you really think so? lemonis: yes! vinny: but it's gonna happen because the coco dream is real. and you didn't follow the task, which was to learn. lemonis: i'm gonna have to help him overcome poor business skills... vinny: you told me to sell coconuts! vinny: when you want to sit me in a room and hammer numbers, that's what i'm doing! lemonis: in this box, to... vinny: i came right back here. lemonis: ...to learn, vinny. that's not my strength. i embody a whole different skill set of coco soul. vinny: that's what i'm learning right now. lemonis: you told me that you guys sold six cases, which is actually not true. lemonis: ...ratchet up his work ethic. you showed up late. you showed up late. you're out there walking all over town, vinny: you told me to sell coconuts. that's what i'm doing. lemonis: in this box... and that wasn't the task. vinny: i came right back here. lemonis: ...to learn, vinny.

...and drop his las vegas show facade. if you're looking to take your business to the next level, log on to... vinny: how we doing, guys? i'm the coconut man. ukulele and the hat and the coat and the beads. hey, it's not just some schtick. lemonis: are you aware that some people see it as that? i'm marcus lemonis, and i risk my own money to help businesses. i love investing in american businesses. these people are here because they care. it's not always easy, but i do it to create jobs, and i do it to make money. do we have a deal? vinny: we have a deal. lemonis: let's rock and roll. man: yeah! lemonis: this is "the profit." vinny: fresh coconut! i don't have to worry about that, do i? we got fresh coconuts right here! lemonis: in 2016, vinny zaldivar launched cocotaps, harmful bacteria lurk just below the gum line. crest gum detoxify, voted product of the year. pioneering a new way to get the juice out of a coconut. it works below the gum line to neutralize harmful plaque bacteria and help reverse early gum damage. it's extremely popular with the las vegas vacation crowd, gum detoxify, from crest. including me. vinny: open it. drink it. it's really good for you. lemonis: but i want to see if this is a product that will appeal to the mass market.

the coconut-water craze is huge, and if i can tap into this, well, i can make a ton of money. vinny: ♪ life can be a tough nut to crack ♪ ♪ cocotaps will get you right on track ♪ ♪ to great taste ♪ and less waste, too ♪ coconut water just flows right through ♪ woo! lemonis: oh, hi. vinny: hi. lemonis: i'm marcus. vinny: marcus, cocovinny, nice to meet you. lemonis: how are you? vinny: great. good to meet you. lemonis: cocovinny, is that your actual name? vinny: legally changing it this this year, yeah. all-in. lemonis: for real? vinny: full on, coco-committing. lemonis: you got the beads going. you live this lifestyle. vinny: this is it. so this is cocotaps hq. lemonis: i'm marcus. rob: i'm rob. vinny: that's cocorob. lemonis: cocorob? rob: yeah. lemonis: are you changing your name, also? danny-j: hi, i'm danny-j. lemonis: see, thank you, you're not cocodanny-j. danny-j: well, cocodj here. lemonis: okay. okay, listen, right now you're coco-nuts. vinny: that's cocojoe by the way. joe: nice to meet you. lemonis: joe, how are you? what is your actual name, joe? joe: joe cantino. lemonis: are you also changing your name legally like him? joe: no. lemonis: okay.

good. wow, this is big. vinny: we sublease from another produce company. this is our inventory up top. we're all coconuts. we all share the space. it's kind of like a working facility. lemonis: all coconuts meaning that you're all nuts? vinny: we're nuts. we're coco-nuts. this is our taproom, so this is where the magic happens. when we unwrap the coconuts... these come from thailand. lemonis: so how does it come into you, like this? vinny: this just came off the boat. lemonis: so can you take me through the tapping process? vinny: tap crew, set them up, cocojoe. lemonis: let's go. what's up, tap crew? vinny: show him how to tap the case. michael: so we have a branding iron, and we just slowly roll it across to put the logo on. lemonis: that's cool. vinny: we do 108 to 130 coconuts an hour. brand and tap, ship. lemonis: okay. michael: it goes in here. pass it down there. take one of these. it goes into a drill bit that fits perfectly around the plastic part. lemonis: then it gets wiped down, then packed.

vinny: right? that's the freshest coconut water you're gonna ever drink. lemonis: this coconut water tasted different than anything else that i've ever had. it felt so pure and so clean and so refreshing that i know leyou're out there walkinge. all over town when that wasn't the task. that consumers who like coconut water are going to love this, vinny: by the way, i also recorded some instagram videos and facebook, and i'm driving traffic. and i like the fact that vinny is bright, and he's bold, i just went live about an hour ago. and he's a salesman, and he's got a good idea lemonis: folks, i'm sorry. please step forward. i apologize. because the tapping process is clever we're here, acting a little coco-nuts. and actually looks like he's put some thought into it. i'm fascinated. woman #2: that's so funny. okay, i'm gonna...are there different-sized coconuts? lemonis: you and i are going to take a walk. vinny: okay, sounds good. vinny: yeah. lemonis: because this is a lot to drink. lemonis: actually, we'll just jump on the cart and go. vinny: alright. vinny: well, and that's why we made it resealable. lemonis: you can put it back in your refrigerator? vinny: yes, sir. this cap system keeps it fresh lemonis: the one thing that vinny has done really well for up to 3, 4 weeks in the fridge. is surround himself with a great team, but right now, lemonis: i want to go out into the... vinny: yeah, it's getting cold in here. i want to just spend all of my time working with him. lemonis: ...warehouse. it's getting cold. and so talk to me about the nutritional benefits. he hasn't made a good first impression, vinny: okay, so this has every electrolyte that your body second impression or third impression. like, is this [bleep] really happening? needs to produce energy -- more importantly, why am i still here? magnesium, potassium, calcium, phosphorous, iron, sodium. i don't know who the real vinny is, but i'm gonna find out right now, lemonis: do you only sell in las vegas? or i'm gonna send him home. vinny: right now, we're just focusing on las vegas. lemonis: isn't cocotap this? vinny: hemingway home. how long has this place been here? lemonis: let's go find out.

vinny: cocotaps. man #2: yes. vinny: oh, wow. lemonis: this coconut water tastes delicious, but what i'm not sure of it's nice and cool in here. is exactly what product he was making lemonis: the history is pretty amazing. vinny: it is. and what he was selling, and is he a coconut importer? lemonis: part of the reason why i wanted to take vinny is he a coconut distributor? is he a tap manufacturer? to ernest hemingway's house is because this is a gentleman what is cocovinny selling that's actually proprietary? who obviously wrote a lot of fiction, and what i can't tell with vinny is the difference in my mind, that's the only way to make money. between fact and fiction. you buy these from a distributor? so this is pictures of hemingway at different periods, vinny: yes. we have a produce provider. lemonis: and how much do you pay for a case? and in every single picture, he looks like a different character. vinny: nine to a case right now. vinny: he sure does. lemonis: puts the cost of one of these at what? lemonis: that's the creative side of him, vinny: $1.55 on average. but when it comes down to how many books were sold, plus we add our tap, our labor, our stuff, if he made or lost money, it's hard to mix the two worlds. so we're in at about $2.22 all-in. lemonis: and then what do you wholesale it for? i'm trying to be patient, vinny: right now we're at $5.55. lemonis: at wholesale, $5.55? and i'm trying to be open-minded. vinny: yeah, and they're going for 12 bucks on the strip, i just don't understand what's going through his mind, so they double, triple them from there. and i'm not sure if his insecurity and his nervousness we're very successful in... lemonis: so you're the only one with a tapping system for a coconut? and his anxiety have kicked into overdrive, vinny: yeah, they're only made in usa. we've got utility patents on the tap. and it's just making him say and do silly things. we have a whole bunch of international patents we're gonna be filing for the systems and the procedures. vinny: you know, cocovinny is somebody lemonis: a patent is the best way that was invented by me. lemonis: so it's fictional... vinny: sure. to protect your product and, more importantly,

lemonis: ...like ernest hemingway. make investors comfortable. vinny: but i also get to play that character, if you think about a castle, and i am that character. i'm shy. the reason that the king and the queen are safe i've been a fat kid my whole life, is because there's a giant ditch that goes all the way around it. so maybe it's a part of just wanting to fit in, anytime you can have something that protects you so there's a real story, a real person. from other people copying it, then it gives you real security i grew up really fast. i had to be really responsible really young, that the idea is not only scalable, so i just wanted to make my life as fun but, man, you can make a ton of money. and as carefree as i possibly can. that's why it's not just some schtick. so what prom i was the c.e.o. of a gaming company. lemonis: are you aware that some people see it as that? i was overweight, overworked, unhappy, vinny: sure. lemonis: i do feel like sometimes, so i took a stepon to... you get caught up in the character. if you could work on putting some precision behind the facts thegood for the planetwas going to do and good for me, fun.ople, and just checking yourself because i think what happens is, lemonis: start over. vinny: start...reset. it undermines the character. vinny: right. lemonis: wow, that takes a lot of guts. vinny: i wanted to get healthy. lemonis: it starts to click for me that he is the way he is i lost 60 pounds, and all these athletes are drinking packaged, because he's trying to overcompensate processed coconut water. for some insecurity that he has, it tastes like crap. lemonis: yeah. vinny: and it's very polluting to the environment, and i'm more sympathetic to that, but we have to understand when to turn it off. so 90% of everything that goes into recycle ends up in the ground or in the ocean again, i think vinny struggles with the dial. so that's why we're about zero waste. i think you have to look at what you've created

lemonis: i like the fact that vinny is very focused totally differently. vinny: okay. on his business being zero waste, which means everything essentially is biodegradable. lemonis: what's the golden nugget the business has? vinny: the tap. lemonis: that's it. vinny: this is the tap. now, i'm gonna test out this theory with you. vinny: okay. lemonis: if i were you, i would think about how i could split up the world lemonis: but it's plastic. you told me that your whole thing was about not having waste. geographically and financially to monetize my invention. vinny: it's just costs. i mean, we got to figure that one out. lemonis: yeah. vinny: territory licensing is what you're saying. what you have to be careful of is when you have a philosophy lemonis: just for the distribution rights of the tap. about who the company is and what it stands for, so the way that i want vinny to think about this you've got to have no instances where people can be, is how to slice and dice the united states like, "ah! i got you!" vinny: nobody is perfect. in a way where the areas can be defined as territories. lemonis: nobody is, but don't let costs compromise the edict, right? vinny: yeah. he would give people the rights to sell exclusively this tap lemonis: the manifest of the business. then cocovinny is like cocoscammy. in a specific geographic area. vinny: i don't know about that. the easy thing for vinny is that now, lemonis: no, but i'm not saying that, but you just don't want to let anybody say it. all he has to do is invest in inventory and taps -- vinny: right, right. lemonis: he told me earlier that he wanted a zero-waste company, no manufacturing, just simply buy the taps, and i'm not sure as i stand here, is that a goal in the future, shift them to the distributor or are you trying to sell me something and make the difference between the cost it took to make the tap and trying to convince me that it's correct now? and the amount of money that you could sell the tap for. and i'm a pretty good judge of character, but i'm having a very difficult time

trying to decipher vinny's real person that was pretty cool, wasn't it? vinny: that was cool. thanks for showing me that place. from this character he's playing. ♪ vinny: so you take the tap out. you just turn. if you have a spoon, just spoon out all that meat. lemonis: so i can just...whoa. i thought it'd be harder. vinny: no, it's soft, beautiful. hey, marcus. lemonis: yeah, hey, buddy. that's a young coconut, and that's the fat. vinny: good to see you. lemonis: how are you? vinny: i'm good. i'm good. oh, this is nice out here. lemonis: isn't it nice? that's the fat. you're not feeling it. you look nice. vinny: thanks. lemonis: so where do we go from here? so he's not a meat fan, we know that. lemonis: i don't even know how to describe it. because i have no interest in investing in the coconut business. vinny: okay. don't ever make me eat that again. look, i'm all for trying things, lemonis: it's a fun thing, but it's just not my thing. and i know that i probably seem narrow-minded in saying, i have interest in understanding where money can be made "never," but i tried it, so he can't say as it relates to the tap. vinny: great. that i didn't try it but never again, ever. lemonis: so where's your paperwork on the utility patent? i want to go sit down, and we'll go over the financials, vinny: so i have all of our attorneys' paperwork. and we'll talk about the business. vinny: okay. ♪ lemonis: and has the patent been issued? or is it... vinny: no. lemonis: ...patent pending? vinny: no. we filed a very, very broad patent. lemonis: and when do you expect to actually be issued that patent? lemonis: hey, bud. vinny: hey. lemonis: so walk me through... i'm struggling with the concept, vinny: well, i've talked to the attorneys, and i'd say, at the most, a year. to be totally honest with you. vinny: okay. lemonis: there's nothing that stops any of these people lemonis: so the offer that i want to make to you right now

from getting a coconut and putting a hole in them. vinny: if you put a hole in this and put it on the shelf, is that i'm willing to give you $100,000 down payment. it's dead in a day. if you put a tap in it, it's good for 3 weeks. lemonis: do you have your financials? i would want to be absolutely clear vinny: yes. i just had my guys pull the p&l for year-to-date that i can bring in two and then balance sheet, you know? to three licensees inside of my territory, lemonis: well, '13, '14, '15, '16, '17, '18, where are those? and they, without question, can get an absolute clear vinny: i didn't give last year's. i just gave you current. lemonis: you don't have them? training-module presentation on how to start, vinny: i have them, but i have to get them sent to me. how to executive, how to fulfill. lemonis: did you think i was gonna ask you for them? vinny: which territory would you want to talk about? vinny: i brought current. lemonis: well, the only territory i wanted to paint the picture where it's at now. that i have any interest in is south florida. lemonis: so this is year-to-date? vinny: yeah. vinny: south florida meaning miami? lemonis: so this is a half a year? vinny: yeah. lemonis: i would say orlando down. lemonis: so, so far for the year, $261,000 in revenue, vinny: orlando down? lemonis: yeah. vinny: that's all of florida. $171,000 in gross profit, lemonis: alright. all of florida. which means the margins are pretty decent. but if your utility patent is denied, vinny: they're good margins. lemonis: you've done $261,000. vinny: yeah. the agreement is off. lemonis: how many units did you sell? vinny: we sold... the other requirement is that i'm gonna want god, why am i drawing a blank all of a sudden? to see true financials on the las vegas market, okay? lemonis: by the way, vinny knew i was coming, vinny: yeah, okay. lemonis: do we have a deal? and he shows up with no historical financials, and what he has for the year basically

is a little bit of revenue. vinny: so basically, when we work together... i would say that after seeing that, it's clear to me alicia: do you have an offer for me? that he may have come up with a good idea, vinny: yeah, we definitely can...yeah. but the rest of his business doesn't seem to be airtight. lemonis: i really think there's a deal here, cocovinny at cocotaps should know how many coco-nuts he sold. but you got to get your [bleep] together. the quality of your financial information and your grasp of the numbers, how would you rate it? vinny: i'm an 8 1/2. lemonis: when it comes to your grasp of the numbers, i wouldn't give you 8 1/2. vinny: that's fair. lemonis: that's troubling. vinny: when you want to sit me in a room and hammer numbers, we can do that, but that's not my strength. i embody a whole different skill set of coco-soul and cocovinny. i'm the colonel sanders of coconuts. lemonis: i'm not comfortable yet, and because i don't have the financials, and i don't have a balance sheet, i can't even see how the puzzle would be put together, and what i don't like about vinny is that he's now becoming slightly dismissive about the facts that are in front of me. he's almost like, "don't pay attention to the numbers. look at the shiny object over here!" how many of these will you sell a year in vegas? vinny: couple hundred thousand.

lemonis: if you can sell 200,000 in vegas, in my mind, my bladder leak underwear.orried someone might see lemonis: if your utilityatent is denied, that's proof of concept in a very tight radius. so, i switched. to always discreet boutique. pick one market outside of vegas where you'd say, its shape-hugging threads smooth out the back. "okay, i'm going to do proof of concept somewhere else." so it fits better than depend. and no one notices. vinny: i'd say between orlando, always discreet. and between miami and fort lauderdale where you have the resorts, the cruise ships and all the theme parks. lemonis: and would you think about the keys as part of that element? vinny: yeah. lemonis: tourism. vinny: tourism. lemonis: okay. so i'll tell you what i'm willing to do to move forward. i'm willing to put you through coco-boot camp. vinny: how we doing, guys? i'm the coconut man. lemonis: you didn't follow the task. vinny: you told me to sell coconuts. that's what i'm doing! lemonis: in this box. you showed up late. you're out there walking all over town, and that wasn't the task.

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the agreement is off. for me to allow that money to be deposited is that i'm gonna want to see true financials on the las vegas market. vinny: yeah, okay. lemonis: do we have a deal? vinny: we have a deal. lemonis: okay then. vinny: thank you so much. lemonis: alright. vinny: thanks, marcus. lemonis: see you in a few weeks. vinny: okay. whoo! ♪ lemonis: how you doing, buddy? vinny: good to see you. lemonis: nice to see you, brother. i'm taking vinny to beyond green, which is a biodegradable company that makes things like storage and shopping bags, and i want to see if they could actually make a biodegradable tap so that when the coconut gets thrown in the garbage, it actually totally biodegrades. so what is this? is this it? veejay: yes. lemonis: and how does it happen? do you melt it?

and what does it cost to manufacture this? veejay: at maximum, for 25 cents apiece. lemonis: and what do you currently buy your taps for? vinny: we're in that same range. lemonis: to make a smart environmental business decision that has a price difference of essentially nothing, well, there's no question about it. we're moving forward with the biodegradable one. so you and i are gonna work on how the presentation of the product is going to work, how a licensee would understand, what's the steps to actually get somebody to actually buy off on, okay? let's go. vinny: alright. sounds good. ♪ lemonis: i'm gonna give you a marker, so you can outline how you believe lemonis: vinny: okay.to put you through coco-boot camp... lemonis: ...before i can determine the coconuts' territories should be divided up. what kind of investment i'm gonna make. i felt it would be a good idea to actually start to develop and so what i would rather do is go into a new market how the territories should be divided and understand, is the market viable? and clearly define what that would look like. does the consumer accept it? vinny: i need to focus on hot tourism spots. so the way that i want to do that is to hit the ground in key west, just gonna... lemonis: what are you doing?

and we're gonna see what that's gonna look like. vinny: i'm just circling territories. lemonis: you're circling states that... so normally, at this point, i would understand vinny: yeah, well, i mean, some of these states, i know... lemonis: ...that our forefathers already mapped out for us. whether i wanted to or didn't want to do a deal. if i wanted to do a deal, i would start negotiating, vinny: i mean, the top 10, i believe, are all right here. but i'm not comfortable yet. lemonis: alright. vinny doesn't have the basic disciplines so why don't you rank those territories from 1 through 10? required to be a business owner, and i don't understand vinny doesn't seem to necessarily have much thought exactly what he's asking me to invest in. about how the territories should be divided, so i'm willing to continue to work with him, and i would have thought that he would have mapped it out, to try to help him, and so i'm gonna put him through the paces, he would have thought about it, but i'm standing here like i'm talking to a deer in headlights. but in terms of writing a check right now? no way. number six is what? vinny: okay, we'll figure it out. vinny: i'm gonna say austin, texas. lemonis: no, no, there's nothing to figure out. next weekend... do you know where austin is? lemonis: i do. vinny: can you show me? lemonis: no, sir. vinny: it's gonna have to be the next one. vinny: alright. i think that covers austin, too, lemonis: i'm going next weekend. vinny: i won't be there. so we'll just call it west texas. lemonis: so where's vegas? lemonis: you got a wedding or something? vinny: i'd say vegas is probably number eight? vinny: i have a very important... i've got to travel. we've got a lot of work lemonis: you need to get more granular to do now to get all that stuff there and everything, than just drawing giant circles. vinny: okay. lemonis: it can't be like you're gonna get coco-love, so i would rather do it in 2 weeks, so... and you're gonna get me, and you're gonna get the brand. lemonis: i can't. vinny: you're already ready to go, huh? vinny: i get that. lemonis: i'm going. vinny: that's good. lemonis: because you're gonna find that some people lemonis: okay, brother. i'll see you there. will get that, and they'll appreciate it, vinny: appreciate it. and others, it's gonna feel intangible to them. ♪ vinny: okay. sorry.

♪ ♪ woman #2: ♪ oh, no ♪ lemonis: what's up, guys? joe and rob: good morning. lemonis: hi, there. alicia: hi. lemonis: are you alicia? alicia: i am. lemonis: on time. how you doing, brother? joe: doing good. rob: how you doing? lemonis: how are you? i'm marcus. i'm taking vinny to meet alicia. lemonis: how you doing? welcome to key west! she's the entrepreneur that owns a number of restaurants rob: thank you. joe: thanks for having us. lemonis: you guys ready to get started? in huntington beach, right on the beach. joe and rob: yes. lemonis: where's vinny at? joe: vinny is inbound. my primary objective here is to see i think he gets here probably about 10 minutes. if vinny has learned anything since the day i met him, lemonis: alright. alright. let's get started, i guess. and does he know the difference in order for this business between cocovinny and vinny the businessperson? to be anything interesting to invest in, i'm gonna want to understand the scalability of it vinny: so this is a fresh-tapped coconut. outside of the vegas market, so i came up with this idea alicia: so let me ask you this. you have the patent for this? to set up at my key lime pie company shop. vinny: i'm the inventor of that. alicia: okay. it was a business that i invested in years ago. vinny: we're patent-pending right now. alicia: okay, got you. hi. joe: i'm joe, with cocotaps. vinny: so basically, when we work together... stephanie: nice to meet you. rob: i'm rob. stephanie: rob, stephanie. we're doing licenses right now. lemonis: stephanie, who's the manager of that location, is a very successful businessperson, we show you how to tap and brand your own coconuts. and she can teach vinny a lot about business, but i'm here. alicia: so almost like a franchise. vinny: there you go. yeah, so... rob is here. joe is here. lemonis: you're confused? alicia: yeah. where's vinny?

so they are from cocotaps in vegas. lemonis: can i grab him real quick? alicia: sure. lemonis: alright. vinny: time-out. lemonis: so this is why one problem -- the owner is not here. i wanted to see you do this because it's clumsy as [bleep] stephanie: well, we can wait, or we can get started. joe: i'm down to get started. rob: let's get started. you've got to be able to give people a path, stephanie: let's do it. and it feels clunky right now. lemonis: i want to get feedback from customers. i want to understand what people think of the product. vinny: yeah, it is. i haven't sold it yet. i want to understand what people think of the price. lemonis: so i need you to slow it down, i want stephanie to understand what the process is like to tap, super clean, super tight. vinny: got it. let's do this again. lemonis: it's not that vinny doesn't know the concept. and i really want to get my head around, is this a coconut business, or is it a tap business? he doesn't have it written down and organized [ cellphone rings ] how to deliver a pitch vinny: this is your captain, cocovinny. in a very methodical, step-by-step way. please leave me your name and number, vinny: so right now, if you would buy this product, and i'll return your call faster than we can tap a fresh coconut. you would actually own this. nobody else could do it. make it a great day. i'm sending you coco-love. you would control the supply and the demand of the fresh-tapped coconuts on bolsa chica. lemonis: hey, coco-love, we are here in key west alicia: okay, so do you have an offer for me to do bolsa chica? trying this figure out where you are, vinny: yeah, we definitely can offer you that to you, so, yeah. so when you land, please call me on my phone. thanks. i mean, that... so do you guys have training modules for all of that? lemonis: i really think there's a deal here, but you got to get your [bleep] together. rob: there are bits and pieces of a lot of that documented. lemonis: yeah. because, like, if stephanie wanted to have these this mechanism was filed before yours was filed. in her company, you'd have to walk her through -- it looks pretty similar. this is the cost. these are the elements.

vinny: it's a little bit coco-crazy right now. this is the labor. this is the process. i've never seen that before. this is the suggested retail. lemonis: do you believe that this is what is preventing him from getting a patent? here's what your margins are gonna be. here's where the distributor is. joe: yes. dylan: oh, absolutely. lemonis: here's how you buy the taps. you got to go in almost and put things... stephanie: as simple as possible for me because i'm gonna get all of these questions, and i'm gonna have more. lemonis: have them all. come on down, folks! you want to try a real coconut with a tap on it? here we go. let's go. coconuts. man #3: over here! lemonis: how you doing, sir? enjoy the coconut. we'll see you guys later. thank you. how you doing, folks? vinny: you guys enjoying the coconuts? woman: ah, oh, yeah. lemonis: oh, hey. so just out of curiosity, why are you here at 11:00? because these guys all got here. vinny: yeah, well they came from vegas. i came from seattle. lemonis: so i'm just gonna tell you... vinny: okay. lemonis: ...being totally honest with you, you look like a bit of an ass showing up after they were here. vinny: okay. lemonis: when business owners don't show up to a scheduled meeting, it's rude and irresponsible. this is not a good start, vinny. we're here to work. his other teammates flew in. my team is there, and it's a sign of disrespect

to the other people that you're working with. look, everybody thinks that running your own business is gonna be easy. news flash -- it's actually harder. we're starting at noon. this is a standalone product that we think has a lot of merit. and so we're gonna want to understand where the price points are. vinny: got it. lemonis: so at any moment where you feel like you need to change prices... vinny: change it up. we'll change it. lemonis: ...you talk to katie and stephanie about it before... vinny: i think i'd like to start it at $12.99. lemonis: how many do you think you could sell a day? vinny: 500 a day. stephanie: alright. you feel good where we're starting? lemonis: it's...this is... i feel good for you because i know you're fine. stephanie: okay. lemonis: it's him that i'm worried about. stephanie: alright. vinny: i'll go sell coconuts. i'm good at that. lemonis: any time you're launching a product in a new market, it's good to understand what the elasticity of a price is. when you test it, you'll see where the volume works, and where it doesn't, and you'll land on the right price. if you sell 5 at $12.99, 15 at $11.99 and 100 at $10.99, the data has shown you that $10.99 is the most optimum price.

start your day with the fresh coconut tap! vinny: fresh coconuts, guys, fresh cocos. lemonis: do you like to dance? just shake it. vinny: i got to learn how to juggle. lemonis: would you like to try a coconut? claudia: i would! lemonis: okay. have you ever tried one before? claudia: no, i haven't. vinny: this is claudia. claudia: hi. lemonis: how are you? do you work at the company? claudia: part-time. lemonis: awesome. and what's your guys' relationship? claudia: friends... with benefits. lemonis: with what? i'm sorry. i had to...hold on, i have a coconut in my hand. are you guys in a relationship? vinny: yeah. we've been dating for a little while, yeah. lemonis: why don't you guys check your story with each other? vinny: oh, it's just that there's a lot going on. we just... we haven't slept much. we've been on the red-eye, so we're just trying to get our [bleep] together. lemonis: what starts to go through my mind is, is the reason that he's late for this entire process, and the reason maybe he didn't even want to come to key west is because but then just own it from the beginning.

don't make up some bull [bleep] story about why you couldn't come and why you couldn't be on time. just, like, be honest about it! alright. give me a quick break. vinny: cool. lemonis: look, i wanted to give him and the team a chance to do some work on their own, knowing that stephanie and katie would be taking a lot of notes for me. if this product is as good as you say it is, and you are as good as you pretend to be, prove it. vinny: ♪ selling coconuts is what we do ♪ ♪ makes me smile when the coco-cash comes through ♪ ♪ yeah ♪ every day, we just tapping and serving cold to you ♪ rob: fresh coconut samples. would you like to try some? claudia: would you like to try some fresh tapped coconut water? man #4: no, thanks. katie: hi, how are you all? vinny: yeah, we definitely offer can offer you that to you.ca? they are $12.99. lemonis: i really think there's a deal here. vinny: we got to get over to sloppy joe's, vinny: okay, i do. so let's do one case for now. lemonis: but you got to get your [bleep] together. vinny: we would come up with, like, a small down payment. what's going on, sloppy joe? call it 20 grand, right? alicia: okay. how we doing, guys? vinny: something like that. to keep your exclusivity, i'm the coconut man, so if you guys want a fresh-tapped coconut... it would be like 10,000 taps a year, ♪ take it back and just roll and then you would pay $1 a tap, and then we would come in

♪ my name is cocovinny, i've got soul, coco-soul ♪ and train your staff on how to produce them. ♪ that's all i got because i'm gonna take it up ♪ you would be our exclusive licensee distributor on bolsa chica. alicia: okay, so here's the deal. that's right, baby. i like the brand. i like the concept. come get some fresh cocos off the corner, y'all. the only thing is, $1 is just a little bit too expensive. alright. vinny: you know what else i see is, i play the ukulele. listen, coconuts, that's how it's done. you ring the bell. we walked in cold. so i'd be down here with the whole crew, that's how it's done. you spread the coco-love. and we could actually come and promote this and get behind it. lemonis: how's it going? lemonis: no, no, no ukulele, dude. vinny: you missed some action today. let's just sell some taps here. make some money. lemonis: how many coconuts have you sold here? then you can buy another ukulele, whatever. vinny: here in this spot we sold, what? alicia: in order for me to get behind something like this, about six cases? what i'm gonna need back is some support, lemonis: let me go check on the numbers. vinny: okay. lemonis: steph, how's it going? stephanie: alright. and that support has to come past a ukulele. lemonis: how many cases has he actually sold? stephanie: 10 have sold. lemonis: 10 cases? alicia: okay, yeah.at. stephanie: no. i mean coconuts. vinny: we'll work that out together. lemonis: come on, $120? lemonis: i'm disappointed. stephanie: yeah, i'm selling them at $12.99. he didn't have his training tools right. he didn't have his pitch down. lemonis: hey, vinny? vinny: yeah? he didn't understand the economics, lemonis: i just want to ask you a quick question, bud. the numbers and the territory concept. i was looking in the system, so there's nine in a case, right? i wanted him to get a deal done. vinny: yeah. you got to have your pitch right because it throws people off. lemonis: and you said you sold the six cases. vinny: okay. vinny: yeah, i know. lemonis: so 6 cases times 9 would be 54, right? ♪ and there's only 10 in the system, 10... vinny: okay, so...

we did good with the samples. so this is sales training and production training, we tried some different things. i got up onstage at sloppy joe's. i played music. so it gives you the overview. lemonis: it's been a week since the botched presentation lemonis: he was supposed to be testing prices, at sealegs, and i'm back to check in to see working on the process, teaching stephanie and katie how the training module is going, how it worked, proving to me that this was a good idea which, by the way, was due, like, 3 weeks ago. and not proving to me that he can go to a bar, vinny: we educate the people about the coconut, get onstage and sing. it feels like everything he does, packaging and labeling, palletization. lemonis: well, where's the... he kfor today?t wings it.e l you said that the distribution was in here? because the goal when we left was sell coconuts here. vinny: no, that's not in here. lemonis: where do i get the coconuts from? how do they need to be stored? what temperature does it need to be in? where is that in here? we need to add that in. vinny: we need to add that. lemonis: okay. i don't feel like he's putting in the effort and the thought to lay out a plan. i can't afford to have him winging it with other people's money. it's too dangerous. so i would encourage you to go back... vinny: okay. lemonis: ...and really think about refining this. vinny: yep, agreed. ♪

so that is called a diamond-cut coconut, and what we invented was the cocotap. lemonis: i wanted vinny to pitch his concept to contemporary marketing. it's a company that i've worked with with lots of different projects. michael #2: oh, yeah. lemonis: they represent tons of brands to lots of retailers, and i thought, "if vinny can make a good impression on mike and adam, then maybe there's actually something viable here. if not, then maybe my gut is telling me something different." vinny: one thing that nobody is gonna have is the colonel sanders of coconuts, and that'll hold strong to the end of time. we're building something that is coco-love. this is a purpose, a passion, a... michael #2: well, that's good, but let's... can we get into the numbers? because that's really where, "how do i make money?" vinny: sure. adam: and what's your growth from day one? lemonis: do you have your financials with you? vinny: actually, i just have my license and pitch. michael: there is a patent? vinny: we're patent-pending right now. we have protection. michael #2: that just worries me because anybody can changelown , and you don't have a patent, then you don't have a product.

vinny: but it's gonna happen because the coco-dream is real. lemonis: to be honest with you, i'm getting kind of embarrassed by what's happening here. instead of vinny dropping his facade, he continues to put up his wall and his facade confusing not only me but almost annoying everybody else. vinny: great meeting you, too. michael #2: nice to meet you, too, man. lemonis: look, vinny has continued to string me along with this whole patent-pending process. i've seen no documentation and have no confirmation. at this point, i want to get confirmation right now. ♪ dylan: dylan. lemonis: hey. hey, marcus. dylan: how's it going? it's good to meet you. lemonis: how are you? nice to meet you. so i decided to hire a utility-patent lawyer. all these documents and all the applications are public records, so i asked the attorney to actually pull all the records, so he could explain, how close are we to getting the patent? dylan: they've gone through a series of rejections and responses, rejections and responses, and they haven't been able to get the rejections resolved to the point where the examiner is convinced

that what's claimed is new and nonobvious. lemonis: how many times has the "this is what makes it different" rejection happen? dylan: four rejections and then responses to those rejections, and they currently have a rejection that came out late last month where all of their claims are rejected. lemonis: so if you were going out on a date, you'd probably move on at some point? dylan: yes. lemonis: hey, bud. vinny: how's it going? lemonis: how are you? vinny: good to see you. lemonis: how's it going? vinny: good. what's your name? dylan: dylan adams. vinny: hey, dylan. dylan: good to meet you. lemonis: so i reached out to him. he was able to pull all of the applications and all of the time lines. dylan: so the rejections are based on prior art, and this is the current prior art that is being used to reject them. lemonis: "young coconut insert that is used to deliver the contents of a young coconut in a hygienic and safe manner." you created a device that goes into the coconut and has a cap on it. vinny: right. lemonis: they have a device that goes into the coconut and has a cap on it. vinny: okay. lemonis: do you believe that this artwork is what is preventing him from getting a patent? dylan: oh, absolutely. lemonis: it looks pretty similar. i mean, if you look at it...

vinny: it's a little bit coco-crazy right now. i've never seen that before. lemonis: while i don't think vinny was being blatantly dishonest about it, i think he likes to just glaze over the details like the important ones, like the fact that you applied and were rejected four times. this mechanism was filed before yours was filed. vinny: mm-hmm, okay. lemonis: but this is the exact same thing. you told me that you were the only one that had it, and you invented it. vinny: i did invent this. lemonis: you invented that? vinny: yes. i have more foot to stand on with market success. lemonis: but the fact that it's been rejected four times is a problem. all along the way, you've said one thing, but the reality is something different. vinny: okay. lemonis: and rather than following it up with true data and facts, you go into a different direction.

vlemonis: but the factt to stthat it's been rejectedess. four times is a problem. vinny: i don't agree with you. dylan: there's no way he's going to be able to get a patent on the broad idea of sticking something in a coconut and then having it be sealed. lemonis: we also don't know that somebody else couldn't just create one. it may have different functions and features. vinny: right. lemonis: but if they create something that goes into a coconut, they're not gonna get protection, and you're not gonna get protection because of this. vinny: one thing we are protected against is that there's a real cocovinny that can sell this through. lemonis: i'm sorry. i don't understand. what's the patent on cocovinny? vinny: there's only one of me, and that's the brand, and that's the real true coco-soul and coco-love that's gonna drive this to the end of the earth. lemonis: you can tell that vinny is getting uncomfortable, and he's retreating back into his sales-y kind of pitch. when he gets into trouble, he starts selling me

about coco-this and coco-that and coco-love and coco-soul. coco-stop. the real business here is the tap and not cocovinny. there's nothing legally prevents somebody from entering the space. vinny: okay. lemonis: thank you so much. dylan: yeah, for sure, absolutely. glad to help. vinny: appreciate it. dylan: good to meet you. lemonis: hi, bud. vinny: hey. lemonis: did you bring any updated financials with you? vinny: they're all coming together. i've been working on it ever since we had that meeting. lemonis: okay, so in process. vinny: yes. lemonis: okay. i've asked vinny to meet me at my office where i can have an honest conversation about where his financials are, where the training module is and where we are on the patent. are the training modules totally complete? vinny: no, they're coming along, though. these didn't exist before. lemonis: all along the way, you've said one thing, but the reality is something different. vinny: okay. lemonis: and you have a tendency to speak in tenses that make it seem like it already happened,

and what you dream and what you want and what exists... vinny: i'm morphing something into reality. you're making it real before it's real. lemonis: yeah, and rather than following it up with true data and facts, you go into a different direction, and i think it hurts your credibility. look, i think the idea that you came up with is really good, but i'm not here to be a licensee today. i just think that, for me, the risk is too great. vinny: okay. lemonis: like, you're a good dude, but i don't want to be coco-nuts myself by moving forward. i give you a lot of credit for putting your heart and soul in it. vinny: i've grown so much since we met. it's been challenging. you've brought some amazing ideas, advice. thank you. lemonis: and i give you a lot of credit for that, and i think you're a super dude in that regard, okay? vinny: thank you. i really appreciate it. lemonis: i wish you a lot of luck, buddy. we'll see you around. vinny: alright. thanks, marcus.

lemonis: ultimately, i blame it on myself because i wasn't able to get him to learn the important building blocks required for running and owning a business. i hope he learned through this process that ultimately, business isn't just about being silly or funny. vinny: oh, that kind of sucked, but actually it didn't, i guess. ♪ won't you be my sexy coco-queen? ♪ ♪ scream and shout ♪ you know we tap it out ♪ you're so fine ♪ you make me blow my mind ♪ tonight coco-love always. ♪ lemonis: i meet a spicy former lawyer... ana: i got called to do "real housewives of miami." don't hold that against me. lemonis: ...with dreams of a marinade empire. ana: it's not only a marinade. it's a flavor-enhancer so you can use it on everything. lemonis: despite having a product people love... woman: mmm, it's finger-licking good.

lemonis: it actually is pretty good. ...her business has been struggling to grow. ana: [ voice breaking ] it's hard for me that this isn't further along given that i've given up so much for it. lemonis: to grow this company, she's going to need to change her branding... john: you have an illustration that is almost exactly like skinnygirl. lemonis: ...learn how to take some criticism... kathleen: what did you write? aaron: skanky. her, she takes over the whole image. ana: do you really, like -- what else do you want me to put on the label, you know?