tv The Profit CNBC February 11, 2020 11:00pm-12:00am EST
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are so adorable. lulu: and they have been so amazing is just a know-it-all, and i don't thinkanit's. because i've traveled a lot. lemonis: it's okay to hug your mom. lemonis: ana can't help herself but to react negatively come here. watch this. lulu: group hug! lemonis: see, group hug. are you gonna join us or not? when somebody gives feedback. xander: yeah, i... lemonis: alright. it's literally got to stop. that's awesome. kathleen: how many think it's a diet, kind of low-calorie product? ♪ aaron: i would think that immediately. lemonis: i meet a spicy former lawyer... kathleen: yeah. aaron: just by the name. ana: i got called to do "real housewives of miami." woman: is this bethenny frankel's brand? don't hold that against me. kathleen: so, you think it's skinnygirl? lemonis: ...with dreams of a marinade empire. what would you think if it was not? ana: it's not only a marinade. woman: you're just getting a free ride it's a flavor-enhancer so you can use it on everything. off the skinny brand. lemonis: despite having a product people love... rivly: i had that same issue, too, because i felt like it was a rip-off of skinny margarita. woman: mmm, it's finger-licking good. lemonis: it actually is pretty good. ...her business has been struggling to grow. lemonis: the logo, the look, the name, and the fact ana: [ voice breaking ] it's hard for me that this isn't further along given that i've given up so much for it. that there's a woman with red on, it's tripping people up between ana's skinny latina lemonis: to grow this company, she's going to need to change her branding... and skinnygirl, the brand. john: you have an illustration kathleen: guess what we get to do now. that is almost exactly like skinnygirl. all: taste it. kathleen: so, if you want to pass it around, that's fine. 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?
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lemonis: come on, baby. bring it home. lemonis: ...and most of all, learn her numbers. it's going to be excellent. ana: listen, guys. i can't give you exact numbers. ana: it worries me because it's supposed to be on food. lemonis: i'm not going to write a check for somebody lemonis: everybody's going to love it. that doesn't have their [bleep] together. i won't do it. giancarlo: um, excellent. the flavor is great. man: it's got a great taste, but it is light, i'm marcus lemonis, and i risk my own money to help businesses. so i could see it being the skinny deal. i love investing in american businesses. woman: i like that there's little chunky pieces of, like, vegetables or whatever the product is. woman: these people are here because they care. lemonis: it's not always easy, but i do it to create jobs, like, to me, i know that makes it the natural part. and i do it to make money. they want you to see it. alice: it's tangy. do we have a deal? let's rock and roll. it's definitely latino flavor. man: yeah! i can just eat it up like this. kathleen: okay. lemonis: this is "the profit." rivly: one of the things that i questioned was ♪ whether or not you could use it as, like, as sauce. and it says right here, you can bring it to a boil, and it becomes a delicious sauce, i was contacted by a miami-based former lawyer so i'm really happy about that. named ana quincoces. kathleen: anybody going to try this when you go home? she has a marinade and sauce company called skinny latina. aaron: i'm going to try it. woman: i'm definitely going to try it. ana started the business 6 years ago, but so far, rivly: i'm going to publix after this so, yeah. she hasn't been able to make the brand bigger ana: wow. kathleen: really appreciate everybody's honest opinion, and good deal. than a regional product. the sauce and marinade industry is a gigantic opportunity, lemonis: i thought the feedback was very honest, and in some cases, it was a little harsh. but i have two primary questions. but even though you may not like the feedback,
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number one -- what makes this sauce stand out in a crowd? you still have to absorb it. this was excellent for you to get validation on something and number two -- is this a real business, or is this just a side-hustle? you've worked so hard for, and we should spend the time woman: everything else was on top of it, right? for the barbecue. lemonis: hi, everybody. and the money to go through the process of seeing ana: of course i would meet you with this on. what would tell the message better. lemonis: that's all right. how are you? i'm marcus. nice to meet you. ana: yeah. lemonis: what i want ana to take away from the positive comments all right, so, i want to go through the process of how it's made. i would love to understand it. is if people are willing to be complimentary, and you love it, can you take me around? ana: yeah, sure. lemonis: got to love hair nets. and you accept it, and you believe it, i actually was going to rock this tonight at the club. then you have to give credence to the negative ones, as well. ♪ ♪ woman: so, we're constantly cooking it and then pumping it into this kettle. we label it, we seal it, coat it, fill it. lemonis: okay. i did like the fact that it was ana: when my daughter went to versailles a small-batch manufacturer. it's almost like craft brewing. in france, she texted me. sometimes, the smaller it is, maybe even the better it is. she goes, "this is not versailles. there's no croquetas here." lemonis: [ laughs ] exactly. and is there only one recipe? any time i'm in miami, i love going to versailles. ana: no, i have four skus. it's a place where you can feel the community come to life. this is the flagship recipe, the million dollar marinade. there's a lot of energy there, then i have a guava-fig barbecue sauce, and i thought it would be a fun place for ana and i to sit down and just share a meal. and a mango-apricot barbecue sauce, and a hot sauce. that focus group today for me, it was like in a vacuum, it's a flavor-enhancer, and it's not only a marinade. it basically a cooking sauce, so you can use it on everything. it was your personality.
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you went in expecting the worst. you can grill with it. you can roast with it. the lady made some comments, you're like, you can add it to soups and stews. "pfft, what does she know?" then, the minute you heard positive reinforcement, lemonis: how did you come up with the idea? ana: i'm cuban, so for cubans, the mois, like, you're like, "i like that lady." that's cuban ketchup, right? lemonis: yeah? ana: yeah, but i was surprised by the positive. it's so funny. ana: we put that on everything, and, so, i started making one, lemonis: why were you surprised? ana: i don't know. lemonis: but everybody has told you the product is good, and then friends started asking me for it. so what are you surprised about? ana: i know. i don't know. and i was like, "maybe i should bottle this." lemonis: do you not have self-confidence? lemonis: are you a chef? ana: i do, but it's just that comes from my upbringing. ana: well, i'm not a chef because i went to the culinary institute of my mom, like, you know? my whole life. my mom would compare me to all her friends' daughters. but i'm as much of a chef as most of the people on food network. she doesn't like people that are overweight. i've written three cookbooks, and i've competed on food network. like, she thinks it's a... and if you ask bobby flay, the greatest cook ever. lemonis: like a lack of self-respect. ana: ...lack of character, yeah. and, so, when i went to law school, during that time, lemonis: okay. ♪ i, like, gained a lot of weight, and she would just tell me, ana: when the second book came out, "but look at this one. why does she" -- whatever. they had done this big thing in the miami herald so, the weight thing was a big issue. about my new book, so i started getting, i just thought that if i weighed 5 more pounds, like, calls for endorsement deals and things like that. she loved me less. lemonis: people's behavior today is a product of their history, and i got called to do "real housewives of miami." don't hold that against me. lemonis: so, you were on "real housewives of miami"? and if ana felt criticized as a child, how many seasons? ana: yeah, for two seasons. that is why she reacts the way she does to criticism. i'm a terrible housewife because, to me,
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everything is attorney-client privilege, normally, at this point, i would have made a deal so i don't perpetuate rumors. so, no, it didn't work for me. with the business owner. ana: oh, i know. lemonis: okay, and i haven't lemonis: so, the million dollar marinade? because i have to mitigate the risk. how'd you come up with that name? ana: i don't know. it rolls off the tongue. the liability in this particular business lemonis: what's funny about it is is the way you look at people. you told me a lot of different things about it. i think what has to happen now, ana: yeah? lemonis: "it does this. we're going to do the investor conference. it could do that. it could do this. you have to put a 15-minute, it could do that." how do i know that? ana: you don't. lively, animated presentation together. lemonis: because million dollar sauce is, like, i don't -- does it cost a million dollars? it's going to bring your personality to life am i going to feel like a million dollars? so people are like, "i want to be part of that." ana: yeah, it's going to get you the accolades, and you're going to feel good. lemonis: my first impression of the bottle itself isn't great. i need you to show me that it's possible. "in 2018, this is what i sold at these kind of margins." this wouldn't exactly catch my attention. where do they go from here? i want to make sure that with ana, ana: the distributor picks them up and takes them. i allow her passion and her vibrance i'm in publix, whole foods, milam's, and her enthusiasm and her love for her product to live, and then i'm at fresh market. but most importantly, i want her to have the numbers. lemonis: just in the florida market? south florida? ana: yeah. lemonis: what's the price point? i'm 100% positive, and i would not say this to you ana: publix has it at $4.99, fresh market has it at $5.49, if i didn't mean it, 100% positive and whole foods has it at $5.99. lemonis: how many bottles a year are you actually producing? that you're going to kick ass, okay? ana: thank you. ana: a lot, but not a lot. ♪
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i mean, it depends what "a lot" is. lemonis: like, 10,000 bottles? ana: more. maybe somewhere around 20,000? lemonis: i never expect, on the fly, for a business owner nice. lemonis: yeah, it is cool, isn't it? to have an exact number, but "how many bottles did you sell?" i made a call to black dog, which is one of the best branding agencies shouldn't have a range of 10,000. 10,000, maybe 20,000? in all of miami, to help me show ana can we get a little closer to the actual number? some new ways to think about her product, how long has the company and what i'm hoping they can do is show her the possibilities actually been bottling and selling? ana: 2013, i think, was the first. of what could be done if she was open-minded. lemonis: so, it's been a while. ana: i know. ana: oh, boy. i'm a little nervous. i think i haven't grown it like i should have john: you shouldn't be nervous. this is exciting. because i didn't want to put the company in debt. we were tasked to kind of evaluate your product label. lemonis: how much money have you invested? ana: okay. john: but i don't think ana: probably around $50,000. that we can do that without looking at your overall brand, lemonis: okay. how many employees do you have? and it is slightly all over the place. ana: everyone's part-time. lemonis: no full-time employees? ana: [ chuckles ] yes. john: you've got a very popular ana: no. and i just moved to an office, like, two weeks ago. instagram where you have "ana qooks" with a "q." lemonis: and, so, the only thing you do today to make money skinny latina does not have your name forefront on there at all. is the sauces and appearances. we want people to be able to recommend your product ana: and endorsement deals and, you know, whatever my books -- or recommend your brand. and i have a concern of the scalability of your product you know, books don't make a ton of money. lemonis: i like the fact that ana has real skin when you have an illustration in the game, $50,000. that is almost exactly like skinnygirl. that's doesn't include the amount of money
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she passed up on by not being a lawyer. ♪ she's really committed to this. we're thinking about taking your script so, i want to take you to my friend's place, and really playing up on the "q" part. woodpecker in st. augustine. we think it's fun. we think there's some elegance to it. lemonis: we'll see if -- ana: if skinny latina has legs. now the drum roll can happen. lemonis: so, i'll see you there. ana: okay. ♪ and this is very different. it's bright, colorful. ana: um... ♪ [ sighs ] okay. i don't like this. this place is so neat. i think it's really busy. lemonis: [ laughs ] what's up, hot stuff? i hate that the little woman is not there at all, you know? lisa: there you are. so good to see you. i love her. lemonis: does it look bold and flavorful? lemonis: did you get dolled up for me today? lisa: i did. you look so good! ana: it does. it's appealing. lemonis: i want you to meet my friend, ana. i just don't know that it's me. lemonis: okay. lisa: hi, ana. ana: hi, nice to meet you. ana: you know, you become attached to something, lemonis: my friend lisa. lisa: nice to meet you. and so it kind of freaks me out. john: yep. ana: he has said such nice things about you. ana: oh, i'm going to start crying. lemonis: so, she's got some sauces and marinades. i know they sent them to you? lisa: yes. yes. [ voice breaking ] oh, god, it's really hard. lemonis: did you have a chance to marinate anything? lemonis: i get it. lisa: we did. lemonis: in order to really ana: it's just so different. understand the marinade better, ♪ i asked lisa to marinate something overnight and cook it so that when i got there, would you invest in my product? we can actually get right down to business. man #1: i don't think so. are you the smokemaster? joe: yes, i am. man #2: uh, no. ana: no? man #3: no. ana: no? man #4: no. ana: no? lemonis: okay. all right. let's dig in. woman: no. no. lemonis: what should we try first?
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i'm going to follow your lead. man #5: no. joe: why don't we start with turkey? lemonis: if you're looking to take your business ♪ to the next level, log on to theprofitcasting.com. ana: it's really good. lisa: that is good. lemonis: who wants to try a few ribs that are marinated? ana: come on, guys. try it. lemonis: everybody, come on down. lisa: don't be shy. come on. lemonis: what do you think? man: they're very good. lemonis: it's good, right? man: yeah. woman: fabulous. ♪ joe: this one is injected and rubbed. lisa: mmm, now that's got a nice flavor. (woman) no matter what business you are in, digital transformation never stops. ana: come on. lisa: it's finger-licking good. lemonis: it actually is pretty good. lisa: mike, what do you think, babe? lemonis: he's busy. he's like, "don't be bothering me." veecd virtualize their operations... lisa: may i chime in? lemonis: please. (third man) and could even build ai into their customer experiences. lisa: if i put in my barbecue, and i said, we also keep them ready for the next big opportunity. "i'm introducing my ribs with skinny latina," like 5g. all my men that come in here, (woman) where machines could talk to each other and some women who are meat eaters, and expertise could go anywhere. they're going to go, "not for me." you can't say "skinny" and "ribs." it just doesn't work. (woman) when it comes to digital transformation, verizon keeps business ready. they're going to think, all of a sudden, "well, it's going to taste low-cal. not going to be good." ♪ you need it to be, like, some beefy latina -- no, just kidding. no matter how much you clean, does your house still smell stuffy? ana: but people are buying it, marcus. lemonis: well, they're not, or i wouldn't be here. that's because your home is filled with soft surfaces
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typically, celebrity-endorsed products have great branding, that trap odors and release them back into the room. so try febreze fabric refresher. but the product itself isn't that great. in the case of skinny latina, febreze finds odors trapped in fabrics and cleans them away as it dries. the product itself is spectacular. the branding, not so much. use febreze every time you tidy up, to keep your whole house smelling fresh air clean. why don't you and i go somewhere else, and we'll dig into the financials. ana: okay. lemonis: okay? all right. great. fabric refresher even works for clothes you want to wear another day. ♪ make febreze part of your clean routine for full home freshness. la la la la la ana: so...okay. lemonis: thank you so much. woman: welcome. my pleasure. itso chantix can help you quit slow turkey. lemonis: so, what financials do you have? along with support, chantix is proven to help you quit. ana: just 2019. lemonis: so, you don't have financials from '15, '16, '17? with chantix you can keep smoking at first and ease into quitting. ana: i didn't have time, and i didn't think it was -- chantix reduces the urge so when the day arrives, lemonis: you know that that's not going to fly with me. you'll be more ready to kiss cigarettes goodbye. ana: no, i know, but it wasn't making enough money to, you know, warrant the time and -- lemonis: think about it -- when you try to quit smoking, with or without chantix, do you know how much revenue you did in the last 12 months? you may have nicotine withdrawal symptoms. ana: yeah, like 2019, so far, is $41,000. stop chantix and get help right away if you have changes in behavior or thinking, aggression, hostility, depressed mood, lemonis: okay. let's just back up here for a second. suicidal thoughts or actions, seizures,
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the cost of the product, raw cost today, new or worse heart or blood vessel problems, sleepwalking, $1.96 for the marinade, $1.71 for the guava barbecue, or life-threatening allergic and skin reactions. decrease alcohol use. use caution driving or operating machinery. $1.63 for the mango, and then the hot sauce has not yet been returning. tell your doctor if you've had mental health problems. ana: not yet, because i'm working on it. lemonis: but, again, that doesn't include the labels. the most common side effect is nausea. 14 cents apiece? ana: what, do you have a better label? quit smoking slow turkey. lemonis: it's a sticker. where are the financials, on a different page? talk to your doctor about chantix. ana: i have no financials. this is all i have. lemonis: okay, well -- the minute you start a business, it's important to start keeping good financial records it's either the assucertification process. like how much revenue you do, what your margins are, or it isn't. it's either testing an array of advanced safety systems. what your expenses are, are you making a profit or not. in order for you to grow your company, or it isn't. it's either the peace of mind you have to make decisions based on facts, not your gut. of a standard unlimited mileage warranty. okay, so, let's put the papers away for a minute, or it isn't. for those who never settle, and let's just assume that there's not much revenue. it's either mercedes-benz certified pre-owned. or it isn't. ana: no, yeah. the mercedes-benz certified pre-owned sales event. lemonis: so, am i supposed to be excited by that or petrified? now through march 2nd. ana: excited because you know what? only at your authorized mercedes-benz dealer. you've got the benefit of my experience, and i've never lost money. there's always been a profit margin, 30%, 40%. places like costco are calling.
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i don't owe anybody money. i don't have partners. lemonis: which is awesome, yeah. ana: i mean, there's some value in that. lemonis: mm-hmm. yeah. ana: it's hard for me to -- that this isn't further along given that i've given up so much for it. lemonis: what do you think you've given up? ana: relationships. lemonis: you feel like you chose this over personal relationships? ana: yes, i'm going to be crazy cat lady. i'm going to have 15 cats, be in a ratty bathrobe, surrounded by my skinny latina empire, you know? lemonis: this is that important to you? ana: 'cause i don't know. i just believe in it. lemonis: you believe in what you're doing. that definitely counts for something. ana: yeah. i need you to help me think big and help me get to the next level. lemonis: the challenge is i don't know what i'm investing in because there's no financials, and there's no real revenue, and i don't know what -- ana: i mean, it's not real revenue to you. lemonis: it's not real revenue because it's not on paper because you can't show it to me. it's like i'm losing myself. it's just so different. so, it's phantom, but i know the proof of concept is there. i just worked really hard without knowing anything,
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this is one of the rarest occasions and that's what i came up with. and if it's [bleep] it's [bleep] but it's me. where somebody has an amazing product, lemonis: any time i'm looking at a business, but they don't have all the other building blocks around it i want to see emotional stakes that show me that this business is everything to people. to give me or any other investor the confidence to move forward. ana's reaction proved to me how much this thing means to her. i want to help her, and i eventually hope to be able to invest, but i feel like, in this moment, let's try to be objective for a minute. ana: okay. lemonis: okay? it would be irresponsible for me to do so. what i like about what they did, ana, for something like this that's a startup, is that they clearly marked out the calorie content, i think the company needs a couple hundred thousand dollars, which people in the focus group said, just to get it moving, right? "tell me that it's healthy." ana: right. and i'm willing to put in a portion of that, lemonis: tell my why it's skinny. and they understood who the brand really was, but not by myself. i think i need more people in the boat which was you. from a business standpoint, ana q is the brand, than just you and just me. how many people have you talked to and skinny latina is a product inside of ana q. about investing in the business? ana: nobody. lemonis: never? ana: i mean, i want the girl somewhere, even if she's tiny. ana: no. lemonis: not one time? ana: no. lemonis: why not? ana: i didn't want them. lemonis: why? maybe a more refined version of that girl. ana: because they wouldn't be silent partners. john: the use of illustration is not a problem, but it has to be done well. lemonis: number-one rule in negotiating? lemonis: it looks a little bit like clip art. know your audience. if you did a live instagram, will people comment? silence? yeah, that's not going to be me. ana: yeah, i think so. lemonis: great. ana: it's just more opinions and more stupid people get your phone out. ana: hi, everyone.
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that don't know anything about this, i'm here with the team from black dog ad agency. and then i'm going to have to explain the same [bleep] over and over. ugh. these are the new suggestions for evolving skinny latina, and i want to know what you guys think. woman: i think it's just so cliché that when we think of latina, lemonis: what are people saying? ana: "love the new one." we always think that they're just showing cleavage. "really like the ana q focus." "like the new label." aaron: skanky. "i like the new label with no girl." what?! lemonis: stunning you a little bit? ana: so shocking. lemonis: what i don't want you to do is just compromise because everybody else loves it. there's a balance between everybody else love it and what you love, and, somehow, you've got to find the middle of that. thank you very much. amazing work. ♪ ♪ lemonis: so, today, i'm at the biltmore hotel in miami for ana's investor presentation. are you freaking out? t-mobile has the first and only, ana: there's a part of me that's excited, nationwide 5g network. but mostly, i'm terrified. and with it, you can shape the future. lemonis: i told ana that i wanted to put we've invested 30 billion dollars
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a roomful of investors together, and built our new 5g network for businesses like yours. and if she can convince them about her product, while some 5g signals only go a few blocks, about her process, and about her financials, t-mobile 5g goes for miles. it they're in, i'll be in. no other 5g signal goes farther ana: hi. man: hi. or is more reliable in business. ana: welcome. man: thank you. tomorrow is in your hands. ana: i really want you to try some food. lemonis: yeah, let's do that. partner with t-mobile for business today. ana: i've made a few different things for you because i wanted to show you the versatility of the sauce. lemonis: i'm kind of blown away by what ana put together. that little vent that won't stay it's no big dopen.really. she actually put out a whole section of food it's not like the engine doesn't work. so people can actually taste the product and validate it. just position the other vents so they're aimed at you. she looks like she's ready to really kill it. ana: i really came up with this sauce it's no big deal. when i was a young mom juggling a growing law practice except it is. and these little girls, and it was really a time-saver for me. that little vent that won't stay open... is like a little window of your automotive happiness and now this has become -- skinny latina is my third child. boarded shut. lemonis: she knows her story. that's why the vent is one more thing she can very well explain her passion, we check before a car can be a certified carmax car. but for an investor, they care about your numbers because that's the way it should be. because people aren't going to write a check into a black hole. carmax. they're just not going to do it. ana: the condiment market is growing exponentially. it's expected that by 2025, it's going to hit about $174 billion. i mean, we want a piece of that, right?
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we're on the shelves next to some of the biggest brands. i'm at fresh market. i'm also at whole foods and at 400 publix stores. man #1: is it a sugar-free marinade, or is lower calories? ana: yes, it absolutely has lower calories, and it has ingredients that you can pronounce. man #2: how attached are you to the current branding? ana: i'm attached to the name because i think it's a great name. man #2: i'm just thinking, who's going to, like, go after this sauce. i believe it'd be, maybe a woman like you that worked, that don't have a lot of time. but how about a guy that's like me? ana: actually, i do think men buy skinny latina. lemonis: it's interesting watching ana's evolution, because as people are firing questions at her, there's some that she's handling with ease, and she's not being defensive and judgmental. man #3: what is the growth potential that you see in your sauce, you know, if we invest, you know? ana: okay, well, that's a very good question. i have a three-year growth plan, in getting key nutrients peopfrom food alone. and part of it is expanding to more skus. one a day, covers all of them. i think that's really important to present to new retailers, in just one serving. to develop new products,
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but i can't do that without an injection of capital. one a day, and done. man #4: so, last year, what were your total sales? ana: last year, we sold 200,000 units. man #5: do you know the profit of that? ana: i think it was about $116,000. man #6: what's your anticipated net profit for 2019? ana: we're kind of on track for very similar, maybe a little more. oh no, here comes gthe neighbor lemonis: do you have a forecast in your presentation? probably to brag about do you have a slide for that? how amazing his xfinity ana: i don't have a slide for that. customer service is. lemonis: while ana has done well so far, i'm mike, i'm so busy. as we turn the corner into financials, good thing xfinity has two-hour appointment windows. the wheels are falling off the bus, and they're falling off the bus fast. they have night and weekend appointments too. are there any financial slides in here he's here. that show revenue per year and then profit per year? bill? karolyn? nope! no, just a couple of rocks. how much inventory are you sitting on? how much cash are you sitting on? what are your payables? how is it going to grow? download the my account app to manage your appointments how much capital do you need to actually grow into that? making today's xfinity customer service simple, easy, awesome. ana: no. lemonis: nothing like that? i'll pass. ana: no. ♪ lemonis: for exclusives, extras and business advice, visit theprofit.cnbc.com.
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about investing in the business? ana: nobody. ugh. it's a waste of time. i don't have that kind of time. lemonis: all right. so, i'm willing to invest in this business if other people are also willing to invest, and the only way that i'll let them invest is if they go through a full-blown investor presentation. ana: by me? lemonis: by you. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. i want a legitimate business plan. ana: you want me to have even more hurdles. lemonis: no. ana: when is my easy time? from managing inventory... lemonis: no, your easy time is after you actually do it the right way. to detecting and preventing threats... ana: i thought it was by calling marcus lemonis, but, apparently, i have more work ahead. lemonis: well, no, because you called me to scaling up your production. is why you have more work ahead of you. giving you a nice big edge over your competition. and i'm not going to write a check for somebody that doesn't have their [bleep] together. that's the power of edge-to-edge intelligence. i won't do it. okay?
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ana: yes. we got a deal. no money, no whatever, but, yeah. in getting key nutrients peopfrom food alone. lemonis: no, no. we have a deal. ana: we have a deal. lemonis: and you will have money once you can prove one a day, covers all of them. that you can raise money from other people in just one serving. in the orthodox way. ana: i'm down. lemonis: okay? ana: i'm game. i'm excited about it. one a day, and done. lemonis: okay. all right? ♪ all right? we're good? ana: yes, we're totally good. ♪ ♪ lemonis: i wanted to really understand how skinny latina lived in the marketplace, so i asked ana to set up a meeting at a local grocery store where she sells her product, and i wanted her to bring in a friend because i thought if there were two people there that she may be more open-minded to constructive criticism. do you think your package stands out? do you think it -- ana: yes, i do think it stands out in this sea of very masculine-looking stuff. lemonis: it's the only female character on any bottle...
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ana: except cholula. lemonis: ...except cholula. trevor: and that's a hot sauce. ana: who is the best-selling sauce in the world. trevor: yes, the packaging is more feminine, but i see a clear messaging with most of them, especially the national brands. if you look at these, i know that, that one right there is garlic and herb. i know that this one is made from lemon, and that one has teriyaki. if i look at yours, i don't know what's in there. i don't know what it's going to do for me or for my dish. lemonis: i'm going to grab the manager and see if they have any feedback. one second. the sauces and condiments business in the united states but after roman was born, is roughly $42.7 billion. i started transitioning out to spend more time with the family. of that, a decent-sized percentage of it i found this job as an operations manager on linkedin. will be spent on specialty sauces and marinades. i applied, and i ended up getting the job. big companies have a lot of money to spend marketing their product and even buying shelf space to dominate the category. >> man: what's my my truck...is my livelihood. so when my windshield cracked... the experts at safelite autoglass came right to me. for ana to even have a chance, she's going to have to come up with the brand >> tech: hi, i'm adrian. and a look to compete with the big boys on the shelf. >> man: thanks for coming. ...with service i could trust. right, girl? lee, when you saw the product or heard about it the first time, >> singers: ♪ safelite repair, safelite replace. ♪
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what kind of product did you think it was? lee: definitely get the impression that it's a lower-calorie-type option. ana: mm-hmm. aveeno® with prebiotic striple oat complex lemonis: and has it been selling through? balances skin's microbiome. lee: it's been a little bit on the lower end of our sales, so skin looks like this what we'd expect for the category. and you feel like this. ana: you know we have other flavors? aveeno® skin relief. when you have more space, get skin healthy™ it kind of gets people to pay attention, and obviously -- lemonis: your calories are 25 for 1 tablespoon. yeah. only pay for what you need with liberty mutual. only pay for what you need with liberty mutual. this competitive marinade is 10 calories. con liberty mutual solo pagas lo que necesitas. it feels a little misleading that you're calling it skinny. only pay for what you need... ana: but i don't know right now in this day and age only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ a single person that is counting calories as a way of dieting. lemonis: are there any financial slides in here it's just not done anymore. lemonis: i'm pretty sure that people still look at calories. that show revenue, margin, expenses? ana: i don't think so. ana: no. trevor: i count my calories. ana: right. i mean, i can -- listen, guys. i don't know many people that count them. i can't give you exact numbers because i've been -- lemonis: well, you know one. ana: didn't know that about him, this is just me. but let's make something with each of those products. i haven't been great at, you know, just doing all this, there's only one of them that you'll eat. you know, perfectly financial things, and he's wincing, and i'm sorry. guarantee you. lemonis: yeah. but i'm not going to lie to you, either, her way of justifying her decisions because, you know, i have to be honest. are to refute everybody else's feedback. lemonis: i told her that if other people didn't buy
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into what she was doing, i wouldn't move forward, you want to be able to be partners with somebody and give them feedback. if every single idea you have is shot down, and right now, nobody in the room is buying off on this. doesn't it put your money at risk? what i thought we could do now, so, we're going to go to a focus group in miami. this is where it's a little awkward, but i'd like -- ana: this is a little awkward now? ana: oh, okay. lemonis: they have the product, and they're going to give us honest feedback lemonis: no, what we're going to do now. ana: okay. because it's been awkward the whole time. about a list of questions. [ laughter ] lemonis: not for me. i'm fine. ana: okay. trevor: you got to be open. ana: i just don't -- you're right. of course. you have to be open. ana: yeah. i am. lemonis: what i'd like you to do is go around the room. lemonis: is this what open looks like? we want to understand from people, ana: this is as open as you're going to get today. would you invest in this company based on this presentation? i'm a work in progress. lemonis: trevor, i think it would be good if you come. it's a yes or a no. trevor: of course. ana: based on my presentation, would you invest in my product? lemonis: only because i think i need some backup. trevor: yeah, i got you. man #1: yeah, i don't think so. man #2: uh, no. ♪ ana: no? man #3: no. ana: no? man #4: no. ana: no? woman #1: no. woman #2: no. no. man #5: no. lemonis: okay. lemonis: how are you? kathleen: hi. welcome to focus groups. lemonis: nice to see you again. so, if you asked the question differently and said, so, i'm taking ana to a focus group today, take the numbers out of the equation, which is essentially a controlled environment, would you invest in me and the product? and it allows people to give real, honest feedback ana: okay. paul, would you invest in me and the product? without feeling uncomfortable. it's going to open her eyes. paul: yes. ana: yes. kathleen: so, we have 10 people selected at random. would you invest in me and the product? woman #3: yes. man #6: yes. there's a camera and two-way mirror. ana: yes? man #7: yes.
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so, you can see them, they don't see you. ana: yes? man #8: yes. ana: yes? man #9: yes. ana: really? yes. woman #4: absolutely. ana: right. so, if they're here, man #10: it's be a yes with some conditions. isn't there this kind of presumption that they're trying to find what's wrong with something? ana: yes. lemonis: okay, so, what -- kathleen: no. okay, but what is the difference between the "noes" and the "yeses"? there's going to be people that really like it, as well. ana: the fact that i wasn't solid on my numbers. lemonis: let's go do it. kathleen: it'll be a learning experience. let's go. lemonis: people in the room were excited by what was there -- hi. ♪ the fact that she was in publix, the fact that they liked the way it tastes. thank you all for coming. she had had a lot of success, but what people kept saying i would like you to circle what you like on that label, to her is the same thing i'm saying -- cross out what you don't, and put a question mark when you get your numbers together, by anything that you are confused about. we'll take a look at it. the one thing that i thought you did really well today is done? so, now what i'd like you do, for the first time that we've been together, just without thinking, give me one word -- you didn't judge anybody that was asking you questions, what are your first impressions? lemonis: oh, boy. kathleen: what did you write? and that, to me, was the biggest win. i feel like we've made progress, but in terms of me aaron: i actually wrote "skanky." her -- she takes over the whole image. investing right now, i'm not there yet. alice: i agree with aaron. ana: okay. i'm okay with "yet." it's great that there's a woman on the label, but we can put a woman differently and no so...skanky. lemonis: well...that's good. it makes it looks like if a latina woman ♪ is supposed to look like that. woman #1: i think it's just so cliché i assigned ana a variety
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that when we think of latina, we always think that they're just showing cleavage. of things to do while i was gone. i want her to work on refining the packaging with black dog, kathleen: okay. tell me something that you liked on this. and i really want her to get to a conclusion that everybody can live with, including her. what did you circle? giancarlo: gluten-free, for health reasons. ♪ kathleen: okay. woman #2: i circled "skinny" and the "all-natural" i also want her to go back to the drawing board because i try not to use marinades and start working on her numbers to put the forecast together that have a lot of sugars. kathleen: okay. somebody else? to get the margins right so that she is dialed in. woman #3: i'd like to see low-sodium and maybe how many calories on the front. ♪ kathleen: okay. lemonis: what? i'm sorry, did she want to know what the calories were? the last thing i want to do before we move forward trevor: it's so weird. do you think she counts that? is to have ana submit her product to a food lab lemonis: how rude. trevor: nobody does that anymore though, marcus. because in order for me to invest or for me kathleen: okay. what else? to be comfortable with being associated with it, i want to know that everything that's in the bottle rivly: i crossed out "all-natural" because it doesn't say much. and on the label is factually correct. it doesn't mean much to me. kathleen: okay. man: the nutritional content, caloric content was 18.5. what would make that mean something to you? rivly: it would have to say organic, gluten-free, no preservatives, no added sugar, lemonis: okay. man: it tested negative for the presence of soy, low sugar, you know, all of that. ana: oh, dude, really? and expressed to gluten is less than 5 ppm. like, what else do you want me to put on the label, you know? lemonis: so, it would qualify...? that's just one of the those people that, man: as gluten-free. lemonis: well this is great. now i feel more legitimate. for me, likes the sound of her own voice, is just a know-it-all. ♪
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lemonis: i'm disappointed that somebody gives feedback she doesn't like, "oh, they don't know what they're doing." ♪ ana: hi, how are you guys? mike: how are you? ana: i hate that the little woman's not there at all. ana: nice to meet you. mike: hi, mike. lemonis: let's try to be objective. lemonis: contemporary marketing is a company ana: okay. [ voice breaking ] it's really hard. that i use to launch products to market. it's just so different. if ana can land this meeting and have contemporary agree to rep her marinade, she'll have exposure to grocery stores across the country. not selling 100,000 bottles, she has the potential of selling a million bottles. ana: okay. so, four skus of a brand called skinny latina, and they're marinades and sauces. lemonis: i connected her with a marketing agency in south florida that worked on a rebranding, and i'd like her to show you where we're thinking about going. this is what is and what it's transformed into. man: all of them pop better. mike: yeah, that's weak. that's confusing. i mean, this clearly states the brand and the product. she is on her way to our house. what? you know, the hot sauce, the barbecue sauce, the marinade. i got it. alexa, start roomba. the lexus es. eagerly prepared for the unexpected. i like it. lemonis: so, i want you to take mike and the team lease the 2020 es 350 for $389 a month for 36 months. through your numbers so they can understand the financials
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experience amazing at your lexus dealer. to understand how strong the business is. ana: so, in 2018, our total revenue was $94,824.80, lease the 2020 es 350 for $389 a month for 36 months. you try to stay ahead of the mess. but scrubbing still takes time. now there's new powerwash dish spray. which left us a gross profit of $35,056.03. it's the faster way to clean as you go. just spray, wipe and rinse. i sell all three of these products for $3.30 a unit. it cleans grease five times faster. new dawn powerwash. a bottle of marinade from the co-packer costs me spray, wipe, rinse. $1.91, including labels and costs, i wrote this a long time ago. i don't know how old i was. and the margins on this is 42.12%. i hope someday i will be on a real football team. the barbecue sauces, the mango, it's $1.72 to make it, i'm katie sowers, offensive assistant coach for the san francisco 49ers. so it's 47.88%. i'm not just here to be the token female, lemonis: the way that you're speaking about your margins i'm here to help us win. the surface pro helps me get what's in my head and the costs, you're like a whole different person. ana: thank you. so, is this something and get it out on to the field. you guys would consider taking, skinny latina and me on i would want to tell this little girl to keep pushing herself, as a customer and helping me grow this thing? your dream's coming. ♪ mike: we definitely would. ana: yes. mike: yeah. ana: thank you so much. that really means a lot. dimitri's on it. lemonis: i was stunned by this meeting -- eating right... ...and getting those steps in? on it! her professionalism, dimitri thinks he's doing all he can to manage the presentation of the new branding, his type 2 diabetes and heart disease, the quality of financial data that she brought. but is his treatment doing enough to lower his heart risk? i was even wondering if it was, like, an ana impersonator.
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maybe not awesome job. ana: i had a positive attitude, jardiance can reduce the risk of cardiovascular death for adults and it went well. lemonis: you get a high five on that one. who also have known heart disease. you did it. i'm proud of you. so it could help save your life from a heart attack or stroke. very proud of you. ana: thank you. ♪ and it lowers a1c! jardiance can cause serious side effects including dehydration, genital yeast or urinary tract infections, i'm ready to sit down with ana and sudden kidney problems. ketoacidosis is a serious side effect that may be fatal. and really consider doing a deal with her because i feel like she's done every single thing a rare, but life-threatening bacterial infection... ...in the skin of the perineum could occur. that i've asked her to. how are you? ana: i'm good. stop taking jardiance and call your doctor right away lemonis: good to see you. if you have symptoms of this bacterial infection, and while she maybe rolled her eyes a few times or pushed back, ...ketoacidosis, or an allergic reaction in the end, she made the changes. and don't take it if you're on dialysis or have... she made the progress. she deserves a shot. ...severe kidney problems. so, one of the things that i said to you was, taking jardiance with a sulfonylurea or insulin may cause low blood sugar. through this process, lower a1c... is if you can get somebody else to invest, i'll invest. ...and lower risk of a fatal heart attack? ana: yeah. right. lemonis: so, how's that working? on it with jardiance. -ask your doctor about jardiance. ana: it's working okay. i mean, there's somebody here that wants to meet with us. so i started looking on linkedin. lemonis: one of the people that ana invited to her investor conference a few weeks ago i found a role at this amazing school. was her friend, nick molina. i applied, and landed the job. ana: hi, nick. thanks for coming. i love sharing what young women are capable of. nick: hi, how are you? lemonis: nick, how are you, sir? nick: good to see you.
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lemonis: nick is miami-based and has a track record of successful startups. this is a real serial entrepreneur. i adad..amazing honey.hing.ob. i'm curious to see if ana can actually negotiate ♪ with the both of us. ana: so, we've already talked about the possibility of nick investing. lemonis: yeah? kraft. for the win win. ana: so, do you think you want to invest in my business. nick: well, i mean this in the nicest way, but i think you need me to be honest with you. ana: thlikes the soundf those peof her own voice,, you've got a great product. i think i can add a tremendous amount of value. ana: my next concern is, like, numbers and percentages, and -- lemonis: well, let's back up for a second. what's the company worth in your mind today? ana: skinny latina is worth $500,000 based on five times revenue, which last year was close to $100,000. lemonis: a half a million dollars? ana: yeah. there's risk for everybody here, marcus. lemonis: not for me. i haven't written a check yet. ♪ ana: we need to do a rebranding.
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we need to do a full rollout, but -- lemonis: the first amount of money needs to go into what? ana: into inventory. lemonis: okay, great. so, start there. ana: i don't think $75,000 is enough money. lemonis: that is the best you're going to get from me. if you're 55 and up, t-mobile has a plan designed just for you. and, for a limited time only, now you can get two lines for just $55, including unlimited talk, text and data. plus no annual service contracts. only at t-mobile. uhh, excuse you're in a is there a problno parking zone. oh, i... i didn't know. you didn't see the sign? that... that wasn't there when i was here earlier. (whimper) really? you know, in italy, they let you park anywhere.
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have a good day, sir. with geico, the savings keep on going. just like this sequel. 15 minutes could save you 15% or more on car insurance. (glass shattering) (frustrated yell) (car horn blast) (yelp) there's room for more than just the business you came for. ♪ whether that's taking in every moment... or capturing a moment worth bringing back. that's room for possibility. ♪ how far we can go, oh oh ♪
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with the cd changer that's stuck playing limp bizkit. ♪ just sell it to carmax. we'll buy any car. even this one. the way it should be. carmax. so i started looking for a job on linkedin. and i found this one at specialized bikes. when they offered me the position, i said, of course, yes. it's not just a job, it's a purpose.
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♪ lemonis: a half a million dollars? ana: yeah. there's risk for everybody here, marcus. lemonis: not for me. i haven't written a check yet. ana: the way that you invest, to my understanding, is that you invest in the process and the product and the people. it's a great product. what's my value, right? lemonis: are you asking me that? ana: no, i know what it is.
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lemonis: well, what is it? ana: it's a lot more than $500,000. lemonis: that confidence is what i love about you. what do you think the investment should be? ana: i think $200,000 for 40%. we need to do a rebranding. we need to do a full rollout. lemonis: when i first met you, you said to me, "i have grocery stores who want the product, and i don't have the capital to give it to them." the first amount of money needs to go into what? ana: into inventory. lemonis: okay, great. so, start there. okay? the deal that i'm willing to make is to agree to your $500,000 number. i would want to lock that valuation up for 12 months, and i would want to have the right to invest up to $125,000 for 25% of the company and no less than $75,000, for 15%. so, what it does for me is it gives me the flex to go from $75,001 to $125,000, but if at some point,
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i feel like the wheels are coming off the bus, i can mitigate my risk for the other 50. and your progress and your performance and your results would determine whether i would go from $75,000 to $80,000 to $90,000 to $125,000. ana: right. lemonis: that is the best you're going to get from me. ana: i do think it's a fair offer. the only problem i see there is that i don't think $75,000 is enough money. nick: listen, ana. let me jump in here for a second. you're short $75,000 from the $200,000 you were asking for, right? he's committing up to $125,000, okay? i'll jump in for the remaining $75,000 with the same premise. i want to mitigate mine through the same percentages as marcus'. ♪ ana: okay. ♪ that sounds...like a good plan, and i feel kind of really fortunate to have both of you. lemonis: i think ana really proved herself, and there are plenty of entrepreneurs
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who just need a shot, and they need a chance. in this case, she needed the opportunity, but she also needed some tough love and some direction. i think this idea of her feeling like she was a victim turned into her feeling like she was a champion of her own product, and, honestly, i think she's a badass. so, do we have a deal? ana: yes, we have a deal. lemonis: okay. we have a deal? nick: we have a deal. lemonis: great. ana: thank you. neiman marcus, here i come. lemonis: that's -- i wouldn't lead with that. [ laughter ] ultimately, what i want ana to have is a million-dollar business, not a million-dollar marinade. cheers. ana: cheers. thank you. lemonis: you did good, lady. ♪ ♪ lemonis: you ever had shaved cream? a young entrepreneur dreamed up a fresh take on an asian-inspired dessert. tony: it's a very unique flavor. lemonis: it's really good. eventually bringing it to four shops across new york city. east village did $329,000,
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down from $600,000 the year before that. it's down almost 50%. but four years in, snowdays is melting. owner tony quach grew his business so fast, he failed to figure out the fundamentals. so, the mold's plastic. tony: mold's plastic. michael: you can't do that. with the new fda laws, you'd have to test that those chemicals aren't breaking down the plastic, which they probably are. lemonis: now he's letting down his customers... carolyn: there would be like five flavors out. lemonis: that'd be like going to baskin robbins
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