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tv   The Profit  CNBC  January 1, 2020 12:00am-1:00am EST

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ision shows you missed a bullet. she doesn't know what she's doing wrong. no, no. the fact that she made that decision proves that she's terrific. ♪ >> tonight on the profit... i go inside worldwide trailers, a custom trailer manufacturer in tampa, florida. and so is this essentially a commercial kitchen? >> yep. >> that's your serving area. >> co-owners struggle to work together after their nasty breakup. >> you're a pathological liar, is the way i look at it. >> i can't work with you. >> i have my work cut out for me. for me, it's all about business. >> none of it would've-- should've been anything except for business. >> i need to put the controls in place... my name isn't going on this if it looks like this. there's no way. >> we do track our money. >> but no, you don't track your money. and make sure these bitter rivals can work together. >> yeah, you got that right! >> my name is marcus lemonis, and i fix failing businesses. i don't know how you run your business this way. i make tough decisions.
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i can tell you for damn sure, you're replaceable. and i back them up with my own cash. there's your check. it's not always pretty. everybody's working hard, not just you. but this is business. >> i was just gonna try to stop you in your tracks. >> you'll never to stop me in my tracks. i do it to save jobs, and i do it to make money. >> ching-ching. >> this is the profit. [upbeat music] ♪ worldwide trailers designs, builds, and sells concession trailers, mostly to food vendors. tom etheridge and nancy pappas started the company in 2001, and took it from a backyard start-up to a multimillion dollar business. >> you got 50%. i got 50%. >> tom and nancy were a couple, and although their relationship came to an abrupt end three years ago, they have continued to work together. >> working with nancy is difficult. nance, you never agree with anything i say anyway, so what's the point? >> i not only run the company, but i also have to watch my back on a regular basis. why would you do this and not
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tell me? >> worldwide trailers brings in $4 million in revenue, but their profits have flat-lined around $400,000. from my experience in this industry, worldwide trailers should be making way more than 10% profit. >> i want to see some doublin' in our numbers, triplin' in our numbers. >> we invested a lot of money, almost $1/2 million, to get our factory open. that was our life savings. it was a huge risk for us. >> with almost 20 employees, there's a lot at stake. >> i want to keep this job. >> we have a lot of people that depend on us, so that's why i work hard every day. this business means everything to me. >> i know there's a huge market for what tom and nancy make. if i can grow this company as big i know it can be, i stand to make millions. hi, i'm marcus. nice to meet you. what do you do here? >> what everybody needs me to
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do. i'm the office assistant. >> well, where will i find tom and nancy? >> in the back. >> this is where everything takes place. they outfit here. >> walking into the worldwide trailer tampa facility, i'm surprised at how small the whole plant is. there's not a lot of people here, and for a company that puts out hundreds of trailers a year, i'm not sure where everything is. and so are they made here too? >> no. they're actually built from steam up in our georgia factory, and then they're delivered down here. so they pretty much come to us like a empty house, and we install everything here. >> the fact that they have split this manufacturing into two facilities is a very big issue. i know it's costing them money. well, i'll find my way. it's just on the way back there. i'll find my way. >> nice meeting you. >> nice meeting you. take care. >> thank you, yes. >> how you doing? i'm marcus. >> nice to meet you. rick. >> you build all this? >> i install it and put it together. >> what happens if a trailer comes here damaged? >> if it's something that i can fix here, then i'll take care of
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it. if not, it'll go back to the factory. >> that seems costly to bring it back and forth. >> i mean, gas prices these days? [whistles] >> any time you run manufacturing out of two separate spaces, you're gonna have additional labor costs. and then what about the cost of moving the product back and forth? it'd be like manufacturing a car in detroit and then towing it to ann arbor to put the tires on. all right, well, thanks, man. i appreciate it. >> no problem. >> hi, marcus. how are you? >> how are you? >> nancy pappas. >> both: nice to meet you. >> hey, marcus. tom etheridge, nice to meet you. >> tom, how are you? >> good. >> this is the headquarters for worldwide trailer? >> this is the headquarters. >> did a little research. the product you guys make is good. >> yeah. >> now, how much--how much revenue is your company doing? >> we did 4 million last year. >> and so how much of that actually fell to the bottom line? how much did you make? >> maybe 400,000. >> how many will you make a year? >> about 125 trailers a year. keep in mind, not all trailers are food trailers. even though that's what we specialize in, we'll build emergency command post trailers. we've built mortuary trailers,
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casket trailers. we're pretty good at what we do, marcus. we've been doing it for a long time. >> who's that? >> that's kita. >> that's kita. that's the shop dog. >> yeah. >> whose dog is that? >> mine. >> it's my dog. >> no. >> [laughs] >> no, that's my dog. >> your dog, his dog? >> no, it's mine. >> oh. >> used to be my dog. >> no, it was ours, and she stays with me. >> oh. >> we were a couple for 20 years, but we're not together for the last 3. >> how is it working together and--is that odd? >> i don't really have any issues as long as nobody gets in my way. >> i'll make sure i stay out of your way. i was hoping i could get a tour of the place. do you guys want to give me a tour? >> both: sure. >> oh, wow. >> yeah. >> and so is this essentially a commercial kitchen? >> yes. >> so i can cook like a-- >> you can bake-- >> oh, this is like an oven in your house. >> yep. >> okay. french fries. >> yes. >> is this the pass-through window for-- >> that's your serving area.
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>> and so i'd come up, order my--order one window, pick up in another window. >> right here, yep. >> and so what does something like this cost? >> close to 50,000 retail. >> and so what is the cost to make something like this? >> you know, that's a good question. >> i could figure it out in my head real quick, but i need a piece of paper and a pen. >> i thought you said your head. >> well, if i had a piece of paper and a pen-- this one, though, i do have to say, is because we have a lot of specialty things-- >> $10,000? >> it'd be under 20, marcus. >> tom and nancy don't know what it costs to make a trailer. they don't know their numbers. they're not sure how much money they make. i mean, this is a classic case of doing well in spite of yourself. so nancy, why do you make 'em in two different places? >> because everybody who works at the factory in georgia has been doing it for 20 years plus, so they're very good at what they do. the reason we have an office down here is 'cause he and i are here. so we wanted the finished product to be here to see the
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end result. >> so how much efficiency can be improved if you made everything in one place? >> we're paying two mortgage payments. that's like 2,300 bucks a month. and also, we--every trailer that gets built there has to be transported here. >> 60 grand is what we're paying in a year to transport 'em just down here. >> to me, efficiency equals margin, margin equals profit, profit equals another bmw. right? >> why not? >> would you move? >> absolutely not. i live on the beach. i can't move. [laughs] >> by operating two locations hundreds of miles apart, they are eating into the profits. real estate expenses, around $50,000, including the mortgage payment. transportation costs, around $60,000. the damage that happens when we transport things, around $50,000. maintenance, taxes, utilities, another $50,000. at a minimum, we could save $210,000 a year. you guys have a successful business here. it does $4 million dollars
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a year. you didn't just wake up on the wrong side of the bed and trip into $4 million. you've done very well, but i can see why you guys called me. >> um, who called you? we--you all called us. >> what's that? >> you all called us. oh, you called him? >> well, i spoke to them. >> oh, you did? >> mm-hmm. >> oh, okay. in the first place, that right there, i was never aware of that. so yeah, i'm not happy about this at all. you sendin' somethin' in. you been lying all this time, making it look like, "oh, they called us and picked us out of the blue, and out of 100,000 people," and all this kind of stuff. in the meantime, you're sittin' there lying every day. >> some people don't know any better, so you have to help them help themselves. >> i don't need no help. >> you sure do. >> no, you need help because you're a pathological liar, is the way i look at it. what did you say about me?
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>> nothing that everybody don't already know. >> okay, well, i need to see what was said. >> it's funny how you're more interested in the application than improving the business. >> listen, i have to tell you-- but i came to do business. for me, it's all about business. >> that's it. that's why none of it should've been anything except for business, so hopefully, that's all that was in it. >> i'm telling you, that's-- i wouldn't have come. if i thought it was gonna be a circus, i wouldn't have come. >> that's it then. we don't have a problem. >> nancy, why don't we go outside and talk, okay? >> all right, let's go. >> i'm already sensing that these two can't communicate well together. any time you're in business with somebody that you have a scorned relationship with, that doesn't bode well for the business. >> i mean, i'll be honest with you. if we didn't have this business, i would never speak to him again. >> why don't you buy him out? >> because he wouldn't let me. >> has he tried to buy you out? >> mm-mm. no. and we're not in positions to basically buy each other out, as far as the amount of money. the thing is, yeah, we were together 20 years. tom has made some really bad choices since he starts bangin' his girl.
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she just kept workin' him and workin' him. she's like, you know, "hey, can i [bleep]?" this took place for about a month before i found out. i knew he was up to somethin'. so 2011, february 6th, i get my abbed her [bleep] hair. her eyes were like [bleep] cue balls. she rolled out. tom turned over and he's like, "nancy!" i [bleep] punched him so [bleep] hard, i gave him a black eye. and then our $50,000 viper, which was a '95 with 6,000 miles, ain't never been touched but with white gloves, i took my [bleep] keys like a pitchfork and i wiped out every panel that i could basically get my hands on. went home, packed my [bleep] up and i left, and i ain't never dealt with it since. >> that was way too much information for me. i don't mind open lines of communication, but, man. >> so what's a guy like you doin' bein' single? i already laid it out.
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i told my sister, i said, "oh, he's a great guy. great guys always--" >> you don't even know me yet. i could be crazy. >> i said, "oh, he's gonna have three kids..." >> no, no kids. >> "be married." >> no. >> ching-ching. >> did that just happen? i came here to do business. i didn't come here for, like, speed dating. tom and nancy clearly have leftover issues that are affecting the business. they're gonna have to prove to me they can work together as a team. but before i make any investment decisions, i want to go to waycross, georgia, and see this manufacturing facility. >> so is this an entire manufacturing process? >> this is it here. we build everything from scratch, you know, from the frame up. if you want to take a look at-- >> yeah, i would. >> this trailer, that's a mobile daiquiri trailer. he has his daiquiri machines, and he'll serve out of this side. >> and so, walk me through the process of how it works. >> we order the steel components. some of it is sized. some of it we have to cut. but basically, the frames--the first thing we do, the main
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frame, is the walls come up, then the ceiling goes on. >> come on, there you go. >> this is normally about a three-day process. >> okay. >> and then we start doing the interior. we work from the inside out. >> and how much land do you have here? >> it's about 10 acres. >> why is there just stuff everywhere? >> you know, we don't want to have axles outside. if we have room to put them inside, they need to be inside. >> the way tom and nancy treat their inventory is very disrespectful. things outside rusting--axles, metal, wood. they might as well just put a bunch of cash in the middle of the floor and light it on fire. do you know how much in raw materials you have on the ground at one time? >> i couldn't tell you right now. >> you don't inventory it? >> in four years, we have not done an inventory. >> i mean, in a manufacturing business, right, you always want to know what your raw materials are and what your finished goods are. 'cause that's really where your working capital is, right? >> that's right. >> well, i have to tell you. just seeing the product that's made, y'all do a good job. >> thank you. >> this product is nice.
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>> we appreciate it. thank you. >> so how many of you guys have been down to the tampa place? y'all seen it? >> never been down there. >> why do they have that facility down there? >> i have no idea. >> you guys think you could finish it here if we had the right facility? >> yes. >> oh, we know we could. >> yeah. >> we know we could. >> yeah, without a doubt. >> i went out and met all the guys in the shop, lot of experience, lot of enthusiasm. to be honest with you, i was very pleased with what i saw in waycross. i'm gonna make a lot of money. you guys want to show me how to weld something? show you how to do your job? >> there's the man right there. >> come on, let's go. show me how to do this. >> [laughs] >> all right, so here we go. >> yes, sir. [upbeat music] ♪ [laughs] >> did i do it? >> yeah, that'll hold it. [laughs] >> you don't want me to take your job, do you? >> i don't think i got to worry about that. [both laugh] >> i've seen both facilities now, and i think worldwide trailers has a lot going for it. although there are some real
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issues between inventory, shipping, and the production process, what i'm really concerned about is the behavior between tom and nancy. as long as i can keep them professional, we're gonna be okay. if they can remain professional, we're gonna make a lot of money here. >> so when'd you start drinkin'? >> oh, i-i've always drank. >> not--not 20 years i knew you. >> oh, yeah. well, hello. >> how are you? >> marcus. >> hi, good. >> both: good to see you. >> i met a labor force in waycross that i was really impressed with their dedication and their effort, and i was impressed by the guys there. >> they're good. they're very good. >> considering what they have to work with. i think the inefficiency that i found there is bad, but fixable. and if you take good people and a bad process, and you can fix the process, then their output can grow dramatically. i want to figure out how to make more money. i mean, i don't spend my time-- i'm not a consultant. i don't put money in for fun. i put money in to make money... >> right.
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>> and if i don't think i can make money, then i don't do it. communication is a risk. it's very obvious to me here. do you guys think you can work together? >> should you be concerned about our relationship? i'm not gonna sit here and lie to you. absolutely. do i feel that nancy and i can come to some sort of terms if we develop a relationship and a partnership with you? i think we can. >> nancy, how about you? >> if it's business, we don't really have to have a personal relationship. i mean, i do have one thing i will say though. i will not be willing to hire certain people. >> you focus too much on the past. >> i am never gonna be willing to ever work with your girlfriend. >> she's got nothing to do with our business. >> she thought she was gonna work for our business. >> you conspire these things in your head that are untrue. >> trust is everything to me, loyalty. >> you can't explain yourself. you have no proof. >> oh, i explained myself very clearly. the bottom line is, when you're disrespectful to me and you try to hurt me and my business, i'm not cool with it. >> well, then you probably should've checked yourself.
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>> guys, i don't know if i can do a deal with you guys, because i'm concerned that you guys can't even have a conversation and just be calm about it. my name isn't going on this. i mean, i got a brake light that's crooked. there's no finish on this. look at this seam right here. i mean, this unit really should go back. and later... i asked you to see your financials. two days in a row, you didn't have 'em. i can't move forward unless i have some sort of idea. is there illegal activity? fine, no one leaves the table until your finished.
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>> guys, i don't know if i can do a deal with you guys, because i'm concerned that you guys can't even have a conversation and just be calm about it. >> you know what? there's always problems there. >> obviously. >> marcus. >> what, nancy? >> i really, really want to work this deal. >> it doesn't feel like it to me. look, i want to get down to business. i don't want to be in the middle of all that drama. >> there's gonna be no drama. >> so you guys can either work it out, or you can't. >> there's gonna be no drama,
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'cause he knows that's not a good idea. >> you guys work that out. >> it's done. we're gonna go ahead, and i want you to come back in. and let's work a deal, but that's where--our personal business is done. it's gonna be a-- >> i don't have time for it. >> i know. >> honestly, i'm not interested in what happened in their personal relationship. that's not why i came here. i came here to do business and make money and not to play therapist. so earlier, tom, you told me you made 400,000 in profit last year. >> oh, absolutely. 400,000. >> so here's my offer. my offer is $1/2 million into the business for 50% of the business. >> yeah, no, that's-- >> i'm agreeable. >> you're in agreement? >> i'm agreeable. >> my number was higher, so i'm kind of-- >> well, tell me what your number was. >> my number was $1 million. >> for 100% of the business? >> absolutely not, marcus. [laughs] >> so what i think you have to think about is my ability to add margin to the current business,
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pays for itself immediately. my purpose is to invest in the company, and in the people, and in the process, and in the product so that this business can be built from a $4 million company to a $10, $20, $40 million company. >> yes. i know for--i know it would be no problem for me. >> nancy, how about you? >> well-- >> nance, i think with marcus onboard-- >> and no money in our pockets? that's kind of-- >> listen, i'm not saying it's the greatest deal and all. but on the path we're on now, it doesn't work for me the way it is. so i'm willing to go down a different path. >> 50% is not good for me for 500 grand. the way i feel is, i don't want to be left with 25% of the company. you know, we started it from the bottom. i just-- >> she can play hardball all she wants, but here's the deal. if i give up more percentage, i go home and collect the check, and i'll go do something different. >> right, i need you to be interested. >> here's what i--here's my final offer. >> okay. >> okay? so i'll go to 700,000 and you'll each put 50,000 in your own pocket, and the rest will go
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into the business. >> now we're talking a little bit. >> no, now we're talking, and that's it. >> think about it. >> i think worldwide trailers has the potential to be a $20 million business. and although it's only 4 million today, it still makes $400,000. so the way i see it, i'm paying 700,000 for the rights to own 50% of a business that makes 400,000. that's a pretty good return. the check that i write will be 700,000. 50,000 goes to tom, 50,000 goes to you, 600,000 goes into the business, and i get 50% of the business. >> we got a deal. >> we got a deal? >> we got a deal. thank you, marcus. >> i was gonna work you a little bit more, so-- >> [scoffs] the final deal that we make is for $700,000. now remember, anything that i decide to do with this money, whether it's buy a building or buy equipment, i'm gonna own those assets. and even the $50,000 checks that
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i wrote to tom and nancy, well, they can't be cashed until the deal is finalized. that's how i protect myself. >> they sure are. >> there's your check. >> okay. >> i was just wondering if i have a boss now after all these years of-- >> when you take my money, i'm in charge. do you understand that? >> i'm completely willing, yep. >> all right, guys. i'll see you tomorrow in waycross. >> all right, partner. >> steve, let's meet up. >> all right, fred, come on. >> guys, i want to thank you for comin' today. and i'm very excited to give you some news. tom and nancy and i have made a deal. i'm gonna be putting in $600,000 into the business, and i will own 50% of it. and i'm gonna be 100% in charge. that $600,000 is gonna go into building a new facility in waycross. it doesn't make sense to me to run a company in two places. worldwide trailers has two separate facilities where they operate their business.
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waycross, georgia, is where they manufacture the trailer. they send the trailer down to tampa and complete the trailer. and the only reason tampa exists is 'cause nancy lives there. i want to consolidate both locations into one facility and build a new building in waycross, georgia. without changing anything else, we're gonna save $60,000 in transport costs alone. one of the ways we're gonna make more money is by putting an inventory system in place. i'm gonna redesign our manufacturing process. a new inventory system will help us understand exactly what it costs to build each trailer. that information will allow us to anticipate our needs and have the necessary parts on hand, so we can maintain a steady and efficient manufacturing line. so i believe in people, process, and product, but people is the most important thing. most people could not work in this environment. there's no process in place, and the issues that have existed between these two have impacted the business. but that's not gonna exist any longer. that's why i'm 100% in charge, because i don't want everybody else in the organization having to be subjected to whatever
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drama, whatever the nonsense is that goes on. i don't want it. >> there wouldn't be no drama out here. >> there has been drama. >> they don't know about that. >> they think communication's fantastic? >> well, i'm just saying, as far as you saying that between me and him. >> i'm talking about as co-owners of a business, your ability to communicate to your employees and have the message be clear. and it isn't about personal drama, nancy. >> well, i was just gonna try to stop you in your tracks if you were talkin' about that because there's no drama that comes out here. >> well, here's a newsflash for you. you'll never stop me in my tracks... >> well-- >> because i'm focused on two things: making money and protecting my guys. >> yeah, so am i. >> so you should visit them, and then we'll be on the same page. >> okay. >> okay? let's get to work. [applause] tom and nancy are headed back home to tampa, but at the same time that they're arriving, a $100,000 smoker trailer's arriving. it's going to a big barbecuer out of texas. >> yeah, just keep an eye on the dip.
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>> we're good. >> what's up, guys? did everything come in right? >> um... >> hey, how are you? >> i'm good. i was just walking the unit, trying to do a little bit of an inspection. what happens if it comes here damaged? do you have a check-in checklist? >> um there is no--some sort of a checkout list. >> it's silly to me. if i'm paying 100 grand for this unit... >> uh-huh. >> it may seem silly to somebody that this thing's crooked, but i want it to be straight. >> oh, i want it to be exactly coect too. >> and then i got a brake light that's crooked. i got a side light that's crooked. i mean, look at the wave here. this thing isn't even a day old, and i got waves. the product is still great, but there are still quality control issues that need to exist. and if tom and nancy were in waycross, inspecting things before they left to the customer, these kind of problems wouldn't happen. when i see stuff like this, and these walls bowing, i mean, this
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unit really should go back. how much is this unit? how much does it cost us to make? >> marcus, we didn't do a cost analysis on it, so i couldn't tell you. >> nancy, i'm confused. i mean, you should know down to the nickel what it costs you to make an 8 1/2x20, right? >> right. >> you won't get that. >> so we need to go get our price list, right? >> i won't get that? >> you won't get that. >> why is that? >> because we don't have it. nance, you don't--you don't-- >> not the hat channels-- >> you will not be able to go through this trailer and identify all the costs for him. that's not possible. we don't have that. >> i'll go grab some stuff and see what i can-- >> why don't you go grab what you can, and grab the financials while you're at it? >> sure. >> so let me understand this, guys. this is the first time i've seen the financials. where is 2013? >> financials? >> uh-huh. >> um, we don't have them yet. >> do you have january through today? any month this year? >> no. >> how come? >> uh, truthfully, because our accountant is behind, and we have probably not provided him
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with everything he needs. >> this is a real problem. i don't know how you run your business this way. >> well... >> and so how much does your business make on an annual basis? >> about 400,000 a year. >> why does this say 200? >> let's be honest. i mean, we don't keep good track of stuff. i mean, that's the bottom line. >> let's be honest. why would i put my money in something that you guys don't know how much you make. we negotiated on something. you told me there was $400,000 of earnings. it's $200,000 of earnings. who's in charge of the accounting here? >> nobody really. when you come in, that's all gonna stop. it has to have a format. it has to have a procedure. >> you mean do all the work? >> no, not do all the work. i'll be right in there with you workin', but-- >> did you guys think you knew your numbers before i came? >> we're making money, and i kind of know-- >> but you don't know how much? >> no. >> so these tax returns show the same thing. it's 200 and something thousand of earnings. it's half of what you guys told
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me it was. >> like i--truthfully, i haven't had that much time to look at it. >> do you know how much you have in the bank account? >> yeah. >> what your payables are? >> pretty close. >> i always tell people, and this shocks me that people don't know this, you have to know your numbers, and you can't lie. when i'm standing there, looking at the financials, and i've been told that these things are 400,000, and i'm making an offer based on 400,000, and i see something that's 200,000, we got a problem. did you guys accept a deal from me? >> yes, we did. but you also came here--you also came here today and said that, you know, you've got to think about it, and i understand that. >> i do have to think about it. you told me the numbers were "x," and they're really not "x." >> it's underhanded, the way i look at it. >> from him? >> yeah, somebody lying to me for months, including everybody else. >> you guys were lying about your financials. >> no, we're not. no, we're--yeah, whatever. >> yeah, you guys are. you guys were lying about your financials. you guys shook my hand. you took my check based on certain numbers. >> that's right, and we worked a deal. >> and you never told me anything last night, you needed to see me-- >> if you're not in the picture, we're not gonna have a couple hundred grand in [bleep]-ups.
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that's all i can say. >> if i'm not in the picture, you guys aren't gonna be open. >> we [bleep] up a lot. >> you guys better get your [bleep] together. everybody's working hard, not just you. >> i've been proud of what i've done in business. you come in here and make me feel like a piece of [bleep]. >> i'm replaceable, and i can tell you for damn sure, you're replaceable. [farmers bell] ♪
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♪ just sell it to carmax. we'll buy any car. even this one. the way it should be. carmax. yeah. only pay for what you need with liberty mutual. even this one. only pay for what you need with liberty mutual. con liberty mutual solo pagas lo que necesitas. only pay for what you need... only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ >> you guys have spent a lot of time telling me about trust. >> sure. >> you don't trust him, he doesn't trust you, all the nonsense back and forth. i moved forward in theh. negotiation based on trust. i made a deal with tom and nancy because they said they were making $400,000 in profit, but when i look at these financials, it says $200,000. i need to get to the bottom of this. i asked you to see your financials. two days in a row, you didn't have 'em. i feel like you guys are [bleep] with me a little bit. >> not at all. >> so has somebody stolen from you guys? >> no. >> illegal activity? >> no, absolutely not. >> are you guys taking money out
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that you're not supposed to? >> no. >> i'm getting the feeling that tom knows something he doesn't want to say in front of nancy. nancy, can you give us a minute, please? >> mm-hmm. >> i'm hoping that a one-on-one will get me the answers. >> tom, if it's not illegal, what's your concern? >> um, i've tried to explain about the difficulties nancy and i have had trying to run this business, and it's just been the past couple of months where we've actually been able to even be in the same office together. >> what's going on between you guys personally doesn't show up in revenue. >> sure. >> it doesn't show up in cost of goods. >> yeah. >> it doesn't show up in the expenses. so how does it tie to the net income? >> i don't think you fully grasp the seriousness of the situation here between nancy and i. >> you show me 2012, and it's half. >> marcus, listen, i have to hide money from nancy. >> uh-huh. >> listen, i was locked out of the bank account at one time. she's president. she took me off the bank account. >> so then you do more than 4 million?
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>> yeah. the breakup was not a pleasant one, so i do have to do secret stuff from time to time. she [bleep] held me hostage. my boat was taken, my r.v. my home in st. pete beach was taken, so all those were gone. i don't want to rehash all this stuff with her, because even though it's not civil, for the first time in 2 1/2 years, nancy and i can have somewhat of a conversation. >> i understand. i've seen this before. any time you have a relationship go bad, there's trust issues, and they start hiding information and money from each other. and while i understand why tom may have thought it was a good idea, it's toxic for the business. you wouldn't be the first person to do that. >> sure, i understand that. >> but it's got to stop. >> let's go, come on. now, get over here. hey, guys. >> i've asked tom and nancy to meet me in waycross. >> hey, marcus. >> good to see you again.
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they've never done an inventory, and that's a problem. the main point and the main reason that you do inventory is to know what cash left the system and what's still here, 'cause this is essentially a bank account, right? >> sure. >> and so you said there was how much in inventory in total? >> probably 100 grand. >> understanding how much money you have invested in raw materials is the same as understanding how much working capital you have to run the business. so i brought in an inventory audit team. i wanted them to tell me what was really on the ground. tom and his team are from w.i.s., and they go around and they really do a lot of inventory audits. >> so, do you have any reports for me? >> you know, we don't have. >> do we have a person who's responsible here, in this location, for inventory? >> no. >> we'll start up here. >> do you have a sheet saying, like, what you have, what you've used? do you have a system in place to put--to do that? you don't use--oh, okay.
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>> the inventory is so scattered and the audit team is having a hard time finding it. >> where are all the cabinet parts? >> i have no idea. >> um... >> more importantly, the waycross team doesn't even know where it is. >> yeah. >> i mean, why is there stuff everywhere? is all this garbage? >> no. >> no. >> and then what about all these out here on the side of the building? understanding the inventory and monitoring it prevents us from losing hundreds of thousands of dollars a year because things don't get broken and rot on the side of the building. hey, guys. rodney wanted to give you guys an update. >> okay, guys. marcus, to be honest with you, this is one of the worst inventories i've seen. right now, the p.o.s are given, but they're not matched up to a packing slip. so you guys are ordering parts, and when the parts come in, you're not actually accounting for those parts when they actually come in. the items back there, they didn't have part numbers on them. we found that many of the items
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that represented 30 or 40 count only had maybe 10 or 15 items. you guys said you had roughly $100,000 worth of inventory on hand. you'd be lucky if you've got $20,000 on hand right now. >> this is a good example of when you're not present in your business, and then when you don't have that process in place, you can't track this. >> well, i can't wait till you get in here, marcus. that's all i can say. >> i am here. what do you, mean wait till-- >> well, good. i can't--well, i'm waitin'-- >> i've been to waycross more in the last couple months than you've been. >> i'm just kind of feeling like you're kind of beatin' up on us on, you know, "the worst inventory," this and that. i myself feel that we've been quite successful with what we've done, and we haven't been present. >> it sounds to me like you're not open to systems. >> no, i'm open to systems-- >> because every time i turn around, you're telling me how putting something in place to make the business better isn't a good idea. >> no, i have not said that one bit. >> but i'm feeling that. i have to tell you that i'm sensing-- >> it's just, like, we're still a growing company. >> i've seen a lot of businesses over the years, and they've had great sales, but they don't track their cash and they don't track their financial statements. they don't know how much they
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make, and they don't know what's leaving, and they go out of business! >> well, we do track our money. >> but no, you don't track your money. it's nobody's fault but tom and nancy that the place is in the shape it's in, but nancy doesn't have the skill of self-reflection or admission of guilt. i think she's so caught up in the fact that she's doing it right and the way she does it is right, and it's not a good thing, not for any business. i have to be honest with you, and the difference between you and tom is that tom has put his pride aside and he has said, "i want to get better." >> i guess what it is, i just don't look like--kind of looking like we haven't, you know, done such a good job. i mean, we've done the best job we could. >> go ahead and pat yourself on the back one time. >> no, i don't need to do that, 'cause one thing about me, i don't look at myself as one person. i look at myself as about 85. why? 'cause each one of them guys out there probably got two to three kids. they're all depending on-- >> stop giving me lines that you think i want to hear. >> oh, so you think-- >> everybody's working hard, not just you. >> i could care less if i get any credit for any of this out here, as long as it's moving and going and making money.
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>> you don't want any credit? >> you make it sound like-- >> you keep telling me that, we're--we do awesome. we're $4 million. we're this, we're that. >> i guess what it is, up until this point... >> yeah. >> i've been proud of what i've done in business. you come in here and make me feel like a piece of [bleep]. just like our inventory's off by 80 grand. i would beg to differ on that. >> then go out and count it yourself, if i'm wrong. these people do this for a living, and we want to move forward, and we can't rely on any one person to make sure that happens. i'm replaceable, and i can tell you for damn sure, you're replaceable. >> whose phone number is tammy's? whose number is this? >> you want to start airing the dirt, nance? maybe you shouldn't have been [bleep] some guy in a bathroom. >> you know what? the deal's off. the deal's off! ♪
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comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. oh, hi, samantha. you look more like a heather. do you ever get that? it's nice to finally meet you in person. you're pete nocchio? oh, the pic? that was actually a professional headshot. i'm sure that's it, yeah. i, uh, i think i've lost a few pounds recently too. i'm actually doing a juice cleanse. wait! you don't... (glass breaking) (gasp) ah! oh...! with geico, the savings keep on going. just like this sequel. 15 minutes could save you 15% or more on car insurance. it's the ikea winter sale. aka-the-up-to-50%-off- already- low-prices-sale. aka-the-look-we-can-touch-every thing-before-we-buy-it-sale.
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>> you come in here and make me feel like a piece of [bleep]. just like our inventory's off by 80 grand. i would beg to differ on that. i mean, we're off. >> then go out and count it yourself, if i'm wrong. these people do this for a living, and we want to move forward. tom has acknowledged that he doesn't have an inventory process in place, and he's copped to it, but he's willing to make the changes necessary to get it right. nancy, on the other hand, doesn't want to admit it at all. it's almost like she's allergic to change. it's her way or no way. i've made the same mistakes. i was a punk kid who thought inventory didn't matter, until my father grabbed me by the hair and said, "i'm gonna teach you how to count $2 million of
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inventory, and i'm gonna explain to you why it matters. because it ain't your cash, kid. it's my cash." and so, it ain't nancy's cash. it's our cash, and i want everybody to have the same respect for the cash. that's the issue that i have, and so that's why i'm as intense as i am. not because i want to chop you down, because i don't want to make the same mistakes. >> well, i'm on board. there's no question about that. >> and so, i have some place i want to take you, okay? >> oh, i'm excited. >> go ahead and take this bend. i'm surprised by how much development's goin' on around here. >> waycross is--in the last five years, has been blowing up. >> has it? >> it's growin'--oh, yeah. and this is just an old georgia town. >> i'm taking nancy to a house in waycross in a neighborhood that i think she'll like. i want her to understand how important it is to her business that she live here. does your house in tampa look like this? >> no, i have a beach house. um, i have a nice house. >> is it this nice? >> no, not at all.
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>> nancy. >> mm-hmm. >> you want to know why i brought you here? >> 'cause i'ma be able to buy this house in about five years after doing business with you? >> uh, you're gonna be able to buy it now. it's only around 250,000. >> really? >> in order to be in this business, you have to live here. >> [sighs] >> you have to live in waycross. you have to live where the business is. i showed you, today, examples of if you're not where the business is, things happen. inventory isn't counted right. you can't get the books and the records right. and a lot of it is because you're not actually there. and so everything needs to consolidate, and that includes you. >> that's not something i've really considered or thought about. >> moving to waycross, not something you've thought about? >> mm-mm. >> it doesn't make sense to me that you don't think it's important to be where the business is. >> mm, i'm not sure. i do love the beach. >> but the beach isn't where we make trailers. >> but--exactly, that's not my business. >> do you believe that if you lived in waycross and you went to the office every day, it would be a more successful business? waycross is a nice place, and so yes, she's not gonna be able to
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lay on the beach every day. she's not gonna be able to go shopping in whatever district in tampa she goes shopping in. and maybe the restaurants are a little different. but she's the business owner, and she needs to be where the business is. those people need leadership and they need supervision. >> what's up with tom? >> tom says he's willing to move. >> i can't imagine, in a million years, that tom would move to waycross. he likes the city life, and he likes the rolexes, and he likes to be a big shot. >> you think he was lying? >> he does that a lot, so-- >> he does lie a lot? >> oh, god. >> has he been lying to me? >> oh, no, i'm just saying that i would believe it when i see it. >> and wa--his girlfriend's there? >> where? >> in tampa? >> oh, i don't know. i'm the type, i don't do any drama at all. >> yeah. >> tom was just--took advantage of a situation. he would've hooked up with anybody. like i tell him, he'd have hooked up with a girl that had no teeth and whatever if she'd have came onto him, 'cause he knew that would never, ever--he would never, ever have a chance with me again.
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head back to tampa to see what tom and nancy were working on. i gave them the task of coming up with a new product, and them working together is important to me. >> all right, let me pull up the file here. >> and so did you do the sketches on these? >> yeah, i did the sketches on these. i did a-a-- >> hey, guys. we got to have a little conference here. hey, do me a favor. walk through the shop there and grab the guys, okay? real quick, i want to go ahead and pass this out and let everybody take a look at it, okay? and then we're gonna go into some [bleep] right now. you see, this is a customer service order. there's an imaginary tammy that works for this company, in one of our dealers, that he will not allow me to meet. whose phone number is tammy's? whose number is this on tammy's piece of paper. >> why don't you call your dealer? >> just so we all know, tom's girlfriend has been workin' in this company for three [bleep] years! i have so much proof right here that she's been workin' in this
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company, it is un-[bleep]-real. this is her cell phone--tammy's cell phone--which is your girlfriend. so it is his girlfriend, tammy. this is the number. this is her direct line, period. >> tom, is that--does she work there? >> sure does, yeah. >> your girlfriend works for a dealer that sells your product? >> that's correct. >> she's not allowed to be working anything to do with this company. >> a dealer who produced half our volume last year. >> i don't give a [bleep]! >> i'm realizing, watching tom and nancy go at it, they're never gonna get over this breakup. >> you know what, nance? you've--you've put us in this situation. take your drama and take it elsewhere. >> and they'll never stop harboring resentment. >> you want to start airing the dirt, nance? maybe you shouldn't have been in--at a wedding and [bleep] some guy in a bathroom. >> there is no way they're gonna be able to put their differences aside and just focus on business. >> i can't work with you. >> you know what? the deal's off. the deal's off! >> if your business is in trouble and you need my help, log on to theprofitcasting.com. -that's how a home and auto bundle is made.
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some things are too important to do yourself. ♪ get customized security with 24/7 monitoring from xfinity home. awarded the best professionally installed system by cnet. simple. easy. awesome. call, click or visit a store today. >> tom's girlfriend has been workin' in this company for three [bleep] years! >> take your drama and take it elsewhere. i can't work with you. >> the deal is off, because what happened-- >> i don't give a [bleep]. marcus, give me a call when you leave here today. you don't need to threaten me, nance, 'cause i don't shake because of you. >> i'm not threatening you. >> you can [bleep] walk around here and intimidate eva and all these other [bleep] people that work here, but you-- >> do i intimidate you, eva? >> yeah, they're [bleep] so scared, they won't say a [bleep] word. >> bull[bleep]. >> everybody [bleep] sees it. >> i am so good to everybody who works for me. >> whatever. this is why i'm gonna pick my [bleep] up and go home. i don't have to listen to this [bleep]. >> good, 'cause you're a [bleep] scammer and a liar, [bleep]. gut liquidate this company and go start your own place?
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>> no, the bottom line is, is that i'm not liquidating anything. >> but i invested $1/2 million in this company. >> i shouldn't have to be dealing with somebody like him. >> nancy, tom--guys, shut up! for a minute, shut up! cool your jets for a minute. >> this is fine? >> why would you bring your employees in here to witness this? >> because i want them to understand what's been goin' on as well. >> how does all this stuff you just talked about do anything to help you sell more trailers? >> it doesn't. but what i'm saying is that it shows that he is underhanded. and how can i make this company grow, grow, grow when i'm dealing--i mean-- >> you have bigger issues than that. >> no, i have no issues. >> no, nancy, you do. when i came to worldwide trailers, i was really excited about the product and where i could take this company. i thought i can get tom and nancy to put their company first, but obviously, that'll never be the case. >> the thing is, he's got to just be up on up. >> nancy, i can't--i can't do business with you guys. i can't do business with you guys. >> well, when you want to do business, give me a call. >> that's all right. i mean, as far as that goes, there's other--there's other people. i have a backup plan, so-- >> these two can't be my
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partners, because a good partner would have their priorities in order, and that will never be tom and nancy. i'm out. >> i still love you, though, marcus. can we go out on a date now? marcus. can we go out on a date now? >> [bleep] you. lwoman:: ttheir soups are amazing.. lemonis: ...at one small soup chain in milwaukee, wisconsin, the owner is writing a recipe for disaster. no [bleep] you should be very careful about what you're saying. his behavior is alienating employees. kevin: he needs to trust me. lemonis: his menu is alienating customers. it's heavy. and a private feud with one mysterious person... stephanie: her name is grace. mayra: grace. lemonis: ...is threatening to destroy everything. grace: you need to be brought out and be told it's not okay to treat people like that. it's not. how dare you! lemonis: everybody's talking about her except you. if i can't bring this situation down from a boil... dave: this does not interest me anymore. lemonis: dave. ...this lid's gonna blow right off.

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