happy ending that's available. craig melvin: that's all for this edition of "dateline." i'm craig melvin. thank you for watching. [theme music] travis: how are you? amber: i'm good. brad: good to see you. amber: are you ready to watch yourself? travis: not really. amber: [ laughs ] no? have you -- when's the last time you saw the episode? brad: yesterday. amber: oh, my god. you did? travis: it's crazy, watching it. like going back to that mental state. amber: yeah. ♪ lemonis: what are we doing tonight? amber: today, we're doing an inside look on flex watches. lemonis: that's the best you got? amber: you know what? lemonis: tonight, we're... you know what? amber: go. lemonis: can i start? amber: yes, please. lemonis: okay. amber: please start. don't you want to tell everyone like who they are and like what -- lemonis: yeah. can i tell everybody what we're doing, first, before i introduce them, ed mcmahon? [ laughter ] amber: i'll just sit here. lemonis: that'll be a first. [ laughs ] in the last seven years of doing "the profit," i've visited nearly 100 businesses.

let's go make some money. [ horn honking ] i've traveled the country trying to fix the people... and you do $1 million a year. you should be proud of it. man #2: but we don't know how to keep any of it. lemonis: fix the process... see? it is flimsy. don't ever make these again. you don't sell them. ...and create a few products. woman: it reduces anxiety and depression. lemonis: i kinda like it. i spend countless days working on these companies. man #3: [laughs] how much money did you burn through? man #4: $650,000. ♪ lemonis: but we can't always fit everything i'm thinking into the show. [ musical powerdown ] so tonight, we're gonna take an inside look at an episode from season 4, "flex watches," a business with purpose. travis: each color represented a different charity that we partnered with to give back 10%. lemonis: it was essentially a social mission and it used a rubber watch as the vehicle. over the next hour, i'm gonna take you behind the scenes to share with you what i was actually thinking during filming... why wouldn't the box speak to the charities? where's the story? amber: you're still upset about this packaging.

lemonis: honestly? ♪ [ laughter ] amber: oh, my god. lemonis: ...share some secrets... i mean, honestly, if you had not told me the story about why you guys created it and how you got inspired, i would've been like, "i don't need you guys." this particular moment was the instant that i knew that i did not want to invest in the watch business. i was investing in them. brad: and this is the moment we thought we lost a deal. travis: yeah. lemonis: ...and give you an honest assessment of my decisions. my offer would total about $400,000, for 40% of the business. the money that i put into the business was essentially buying a team. my name is marcus lemonis, and this is an inside look at "the profit." so tonight, we have travis and brad, the founders of flex watches. they started a social outreach company that happens to use watches. amber: and also, these two guys are lifelong friends, business partners, doing all of your businesses right now. lemonis: they're in a lot of 'em. amber: i remember actually 'cause,

through the casting, you didn't love the business, but you loved them. brad: you told us that at the deal table. lemonis: i did? brad: yeah. that you were investing -- lemonis: oh. lemonis: brad, you're gonna talk tonight? 'cause you didn't talk much in the episode. amber: he's been talking more. travis: i positioned him perfectly. lemonis: do you think we should just watch the episode? amber: well, no. i think we should talk about it. whatever. alright. let's -- lemonis: let's watch the episode. amber: let's watch it. ♪ lemonis: i've been looking for an accessories business to pair with my fashion brands and flex's social mission just increases its appeal. i was fat. if i can get these guys back on track, we should be making money, and a difference, in no time. hi, guys. brad: hey. how's it going? lemonis: i'm marcus. brad: brad. nice to meet you. lemonis: nice to meet you. trevor: trevor. lemonis and trevor: nice to meet you. travis: nice to meet you. lemonis: how are you? what are you guys doing? you were fat, too. travis: me too. all of us. [ laughter ] lemonis: we're losing time. okay. are those the watches? travis: yeah. so we basically started with a interchangeable watch, so the face pops out of the band. yeah. pull back. pop up.

lemonis: it's a cool watch. what does a watch like that sell for? travis: $35. lemonis: these are nice-lookin' watches at a great price point. trevor: we wanted to do an accessory that was bright, that could match with all different things: hats, shoes. lemonis: pause. right now, everybody at home is wondering why there's two of you, when, on the episode, there was three of you. amber: i mean, we have to address that. where's trevor? travis: trevor's still a good friend of mine -- lemonis: great friend of yours. travis: i was in his wedding, best man. after about a year, i think he just kinda wanted to do his own thing and he ended up getting a creative director job with a big health company. lemonis: he's a good dude. this is a comfortable watch. travis: it's lightweight. lemonis: yeah. travis: it's durable. initially, we had 10 colors. each color represented a different charity that we partnered with to give back 10%. lemonis: that's pretty slick. travis: yeah, right? trevor: we wanted to do something different and no one was doing charity in the watch space, so, we started partnering with charities and people loved it. amber: how important to you was it that flex had a social message? lemonis: that was the only reason i was there. i mean, there was no reason for me to be there,

other than that because, candidly, the watch that you guys made, i mean, there's no barrier to entry to make one. travis and brad: yeah. lemonis: it was essentially a marketing company that had a social mission and it used a rubber watch as the vehicle. are these still made today? travis: no. that's the first generation, five years ago. lemonis: so that's first-generation. what happened after that? where's generation two? travis: so we made a sport version, at $119. lemonis: and i look for watches that aren't expensive. like i don't like expensive watches. why did you change your model? travis: well, we wanted to fit in with retail stores, when they said it needed to be about $100. buying it at $15 and selling them for $35, they just weren't getting the right ticket per door. they told us to make a higher price point watch. trevor: it wasn't gonna make it into the case. lemonis: at $35. trevor: no. lemonis: so you changed your whole business model over retailers asking you for a higher price point. travis: yeah. lemonis: so this is generation two. travis: yeah. lemonis: is there a generation three?

that cheap-ass gold watch. travis: so that's gen three. lemonis: where's the charity angle on this generation? brad: a lotta people don't realize we still do the charity aspect. lemonis: i think this is a total mess. who's in charge of the three of you? trevor: travis and i own flex together. travis: yeah. and my brother came down and he was like the shipping center. lemonis: oh, you guys are brothers? brad: yeah. travis: we each own 41%. lemonis: okay, so 82% between the two of you? travis: yeah. lemonis: and then there's somebody else that owns 18? travis: we have an investor. lemonis: why weren't you part of the business from the beginning? brad: i was. i was doing all the day-to-day, all the customer service, all the sales. lemonis: why didn't you have equity? brad: 'cause i'd never asked for it. travis: honestly, between me and him, i had discussions and i was like, "you're gonna be part of this business with me." brad: it's true. travis: and he never pushed and i never made paperwork. amber: so, brad, how did you feel during all the...? did you feel that you were, you know, ignored or not treated well or...? brad: yeah. it was kinda just a hard dynamic being three of us, so i did step back a lot of the time and i definitely appreciated marcus coming on and seeing my value in the company.

lemonis: i actually felt like -- and this is not against you, but i actually felt like brad was the most equipped to run the company, to run it. travis: for sure. lemonis: what are your guys' individual roles? trevor: so i'm the creative. everything you see flex, whether it's a video -- lemonis: trevor has marketing. travis: yeah. trevor -- sorry. just to jump in. and trevor's visual. i source all the components and trying to work with the factory to figure out what can i get the quickest at the most affordable price? lemonis: do you literally do it like that? travis: yeah, literally. lemonis: yeah. that's obvious. it shows. how much revenue does the business do? travis: $500,000 after we launched. brad: 2000. lemonis: that's strong. travis: yeah. $979,000 the next year. lemonis: getting stronger. travis: and then, we changed the product. our sales dropped a half a million. lemonis: because of generation two, sales went down. travis: yeah. they dropped 50%. lemonis: i'm a big believer that numbers don't lie. the further they got away from their original story and the charity aspect and started making watches that weren't fun, looked like a watch you could buy on a street corner, the worse their numbers got.

what gave you guys this idea to get in the watch business? travis: so his mom ran a breakfast program in mexico. lemonis: okay, food program. trevor: yes. we would go down there and volunteer and so we wanted to make an impact with something that we really felt was cool and affordable. lemonis: is your mom still doing the breakfast program? trevor: she was until she.... she got breast cancer eight years ago. we lost her three years ago. lemonis: she passed away. trevor: yeah. lemonis: how do you keep her momentum alive? what do you guys do to do that? trevor: nothing. we started as a purpose brand, but i think we'd be more of a surf-beachy brand. just didn't feel right, pushing a story of, "this watch will provide meals for children in need." we wanted to make sure that people knew that it was still a cool watch and not just a donation piece. lemonis: the story that trevor's telling me confused the heck outta me because, in one sense, he's telling me that it was about his mom and the charities, and then the next minute, he's telling me about surfing brands and cool things. i think the fact that you have that as your purpose

is a very big deal. you're driven to have this succeed because that's your connection to her. trevor: i don't think about that. i think i've pushed it out. losing her is just -- i haven't like dealt with it, you know? i'm just bitter. but, yeah, we keep moving, for sure, 'cause she would love that. lemonis: i lost my mom, you know, not too long ago. trevor: i didn't know that. lemonis: yeah. you know, i appreciate your vulnerability, i mean, talking about your mom. i think that's always tough, but you gotta deal with it. you know that, right? trevor: i do. lemonis: and the way to deal with that is to have this business fulfill what she wanted you to do with it. amber: do you think it's important that a person has to open up emotionally in order to push through in their business? lemonis: i think it's actually important for me, with anybody, that there's full disclosure about who they are, why they do what they do, and what actually drives them. he needed to actually just peel the onion back. alright. let's head to the warehouse. trevor: alrighty. ♪

[ horn honks ] travis: hey, guys. naim: hey. hey. how are you? lemonis: i'm marcus. nice to meet you. naim: pleasure. nice to meet you. lemonis: how did you connect with them? travis: our office used to be two blocks away. lemonis: okay. travis: we came across this building, walked in, and said, "hey. how's it going?" within five minutes, we were creating a new watch. [ laughter ] damn it! amber: within five minutes. travis: there's so much good stuff in this. wow. i was so goddamn honest. lemonis: yeah. so why did you make decisions like that? travis: i really just wanted something to happen [snapping fingers] quickly, you know? i was impatient. lemonis: as they developed new products and they would come, sit down with you, show you a sketch. i want to see that whole process. naim: yeah. let's do a tour. so this is a family-run business. we've been doing this for about 15 years and all their product is here. i ship it out for them. lemonis: pause. this particular moment was the instant that i knew that i did not want to invest in the watch business. i was investing in them. brad: and this is the moment we thought we lost the deal. travis: yeah. lemonis: because i was like, "what is this?" brad: yeah.

lemonis: it just looked like you guys were taking stuff off somebody else's shelf and slapping your label on it. brad: yeah. lemonis: who came up with the box design? travis: well, we actually were in a rush, and we -- lemonis: it looks like that. brad: [ laughs ] this box takes the value way down. when this is at point of purchase, the packaging is gonna be more important to me than the watch itself because this is a commodity business and so you have to find ways to differentiate yourself. this is one of them. is there anything patented about the product? travis: no. lemonis: nothing proprietary. anybody can knock it off. travis: it's just design and to get a design patent like takes years. ♪ lemonis: i was like, "hmm." amber: you were like "uh-huh." travis: so, i'll show you the process of building a watch. we pick a shape. step two is the band. lemonis: okay. travis: what kind of band does it go with this casing? colors wouldn't matter. nothing would matter, and then we'll pick the movement. lemonis: this feels a little on the fly. i mean, honestly, if you had not told me the story about why you guys created it and how you got inspired, i would've been like, "i don't need you guys." you have to bring that stuff to life.

what is your real story? why do you guys care about it so much? why do you want other people to care about it? all the charities that you're involved with, you should have things posting their events. trevor: that's an image that we try to uphold. travis: but there's no pulse. there's no like real story. yeah. you've held back, and i feel like it's not only a part of our story, but part of your life and like you're allowed to talk about the fact that we did charity and your mom was involved and talk more about the breakfast program. brad: i feel like we did that a lot more when we first started, when it was all the charities. lemonis: when you did $1 million a year. you have really two interesting dynamics happening right now. you have trevor, who wants to get as far away from the original brand story as he can; and travis, who wants to do things as fast as he can; and, when you combine those two things together, you end up with a company that makes gold watches in [audio drop] boxes. [ laughter ] travis: oh, my god. lemonis: that was a little -- amber: that's the best line, ever. lemonis: that was rude. amber: that was amazing. travis: that was so good. lemonis: so one of the things that travis doesn't like to talk about publicly, but it's important to know,

is that he's now working with a lotta companies who are coming to him, saying, "hey, can you help me understand how to market my product? can you help me understand how to communicate my story?" and i think that, for me, is probably one of the more satisfying things and for him to be able to take how he was before and what he learned, then being able to transfer that knowledge or coach people... amber: come a long way. travis: yeah. i appreciate you guys' patience with me and working with me through that. lemonis: i didn't really have a lotta patience with you, but, that's fine. amber: you never have patience. lemonis: i do, actually, but just not with travis. [ laughter ] amber: alright. let's play. ♪ travis: hey, marcus. lemonis: how are ya? travis: how you doing? good. lemonis: so, 2011, you did $500,000 worth of business, gross profit of 129,000. 2012, $979,000 of revenue, which is a good job, by the way. 2013, the sales go to $436,000. they drop in half. you lost 200 grand. travis: that would be the year we started basically redoing the brand.

lemonis: 2014, $311,000. lost $87,000; 2015, $279,000. lost 34 grand. what's at stake for you guys in this business? travis: [sigh] the last five, six years of my life and my future, so, everything. brad: i moved home with my parents and my wife. trevor: the three of us have given blood, sweat, and tears into this business. brad: it broke my heart 'cause the whole charity aspect and giving back was what drove me to work so hard for the company. lemonis: and not take a pay. brad: yeah. lemonis: and move back with your wife to your parents' house. that's a big sacrifice. brad: trevor went through a tough time, obviously, after his mom passed. trevor: because of me, we just haven't talked about it and discussed it as much as we should and i don't know how to tell that story. it's tough. travis: [crying] i feel bad. i feel bad for my best friend. [sniffle] that's it. i mean, no one deserves to like go through all that stuff. just, it hurts, you know? lemonis: wow!

brad: all those emotions came out at that table and -- amber: "marcus is gonna leave," or -- brad: yeah. we literally thought we lost the deal with you. this is our last chance. like if we miss this opportunity, like maybe there is no more flex. i mean, it was everything to us. travis: and like i started really like thinking like, "holy jeez. i've put so much time, effort, and energy into this thing and i've got nothing." ♪ lemonis: why is the back so plain? this thing looks like rushed and unfinished. this, to me, feels like a high school art project. amber: in that moment, did you think marcus was gonna walk out the door? brad: mm-hmm. travis: yeah. brad: we literally thought we lost the deal and i think both of us were just like, "oh, [bleep]." travis: yeah.

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lemonis: you're emotional because you believe in what you're doing. brad: you okay? travis: i started really like thinking, "i've put so much time, effort, and energy into this thing and i've got nothing, except a gold watch and a [bleep] box, so." [ laughter ] and this kid lost his mom. it almost felt like we let her down. amber: and, in that moment, did you think marcus was gonna walk out the door? travis: oh, yeah. lemonis: play. what's the business worth today, in your mind? trevor: we'd like to think that it's close to about a $2 million evaluation. lemonis: business that did $279,000 last year and lost 34,000? ♪ and it's a plastic watch. my offer, in paying off the liabilities,

putting $100,000 of inventory, putting $100,000 of working capital in the bank so that rent and salaries and things can get paid, and then dedicating $100,000 specifically towards mass marketing to the world would total... travis: shocked. lemonis: ...about $400,000, for 40% of the business. travis: oh, a $1 million value. lemonis: that's what it is. ♪ travis: so, obviously, we have to discuss this. lemonis: brad's -- brad: like "what?" amber: brad. brad: what is there to discuss? lemonis: brad's like, "uh, i don't think there's much to discuss." travis: where we're at, we have to dilute each 20%. trevor: it's not about that. we need marcus as a partner. ♪ travis: i think we're gonna take your deal. lemonis: before i write this check, there is no question that i'm 100% in charge. we have a deal? brad: we have a deal. trevor: we appreciate it, marcus. thank you so much. lemonis: absolutely. trevor: wow. lemonis: congratulations, guys. travis: thanks again. lemonis: get your ass to work. amber: just wondering like

how do you put a valuation on a business? lemonis: in this particular case, the money that i put into the business was essentially buying a team and, oftentimes, in business -- and this is a really important thing -- big, large corporations will make acquisitions and they'll make acquisitions for the talent, not the asset. that was literally the math on the deal. it had nothing to do with the watches, nothing to do with the revenue. i kinda got a hell of a deal. amber: got a great deal. yeah. ♪ karlo: hello, guys. welcome to shiekh. lemonis: how are ya? karlo: how are you doing? lemonis: i'm marcus. karlo: nice to meet you, marcus. lemonis: are you the manager here? karlo: i'm the store manager. lemonis: how has flex watches done with your store? karlo: they did very well. good price point. we had the other, different design. it wasn't these. it was a different rubber-style watch. lemonis: generation one. and you still carry those today? karlo: that style, no. lemonis: what happened to the old style? travis: there was a corporate office and they requested that we had a more expensive price point 'cause it was just not worth his time to sell the watch. lemonis: so you did $1 million with the watches

and then, all of a sudden, you're like, "that's too much." travis: essentially. lemonis: brad, were you consulted in that process? brad: yeah. i was. if it's not broke, don't fix it. lemonis: what do you think this company, the corporate office, would say if there was a display that was built on our dime just for them that was really beautiful and it told the story? trevor: i think they'd be onboard. lemonis: do you know what a silent salesperson is? trevor: something that sells itself. lemonis: sells itself. and so, if we had something built, probably cost 300 bucks, what's the wholesale order that would go into that first slot? travis: $1,000. lemonis: what's your margin on it? travis: about 500 bucks. lemonis: okay. $300 investment, $500 in gross margin, $200 in profit. if we provide retailers with a simple, affordable, silent salesman display, it makes it easier for everybody. [ clock ticking ] they don't have to invest the valuable time that it takes telling the initial story. the silent salesman display will cost flex about $300 to provide to the retailer, but, it will be able to carry about $1,000 worth of inventory,

the 50% margin, so, while we'll only net $200 with the first order -- $500 of gross profit less the $300 from the silent salesman -- every order after that will yield the full $500 in gross profit. what we're gonna do is we're going to design a freestanding trade display. i wanna task you guys with coming up with a vision board that incorporates everything that you think you are. amber: to do a silent salesman, you need to know your vision, right? and know your story. lemonis: yeah, because, if you don't have a clear vision of who you are and why you do what you do and why the customer should give a crap, then i don't know what you put on this contraption you're building. brad: you don't know what you're selling with the silent salesman. lemonis: yeah. travis: that scene was the first time that i was having the visual realization that like my story is not working. like this packaging doesn't tell a story and i was like seeing it. at that moment, i was like, "alright. maybe he does know what he's talking about." ♪

trevor: let's see here. i thought this would be good. this is newport. this is where i learned to surf. this is where i grew up goin' to the beach. travis: obviously, san diego, since we started in san diego. brad: i feel like there's a lotta beach. the whole brand isn't beach. you're not gonna wear this to the beach. ♪ trevor: let's move on to these. travis: okay. travis: i think something like this shows having fun. i mean, personally, i skate, so, i feel strongly about this. trevor: so, here's my thing with skating. obviously, we don't make skateboards. i don't like the street side of it. i don't like the grungy skate-wear, asphalt, the colors. it just feels like it doesn't fit. travis: should we kind of include something about your mom and the meal program? trevor: i don't wanna use it. travis: it fits into our brand. trevor: i think we're way more of a -- travis: so you would say -- trevor: they're fine. travis: i'm kinda lost. brad: trevor, you're gonna want this, right? travis: hold on. don't cut me off. i'm in the middle of trying -- brad: well, i'm trying to back you up here. travis: alright. let me just make my point real quick. i'm telling us who we are. trevor: this is not the imagery that fits our watches, the style. that is not our direction. travis: let's be honest.

trevor: that doesn't have to be the brand! travis: this is who we are! amber: how hard was that, to work on the vision board? travis: it was very hard. that was like a four-hour process. it was very difficult. there was different personalities and things were clashing in the office and then like we just couldn't make a brand that like made sense. kate: tell me more about why you're doing this. travis: we started with 10 colors, 10 charities, and we donated 10%. lemonis: you have a flex watch on? amber: i do. what charity is it going to? travis: that's the anti-bullying one. amber: i am so into anti-bullying. lemonis: you are? 'cause i feel amber: i'm 100. lemonis: very bullied, right? amber: you bully me all the time. lemonis: if you're looking to take your business to the next levevel, log on to...

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my bladder leak underwear.orried someone might see so, i switched. to always discreet boutique. its shape-hugging threads smooth out the back. so it fits better than depend. and no one notices. always discreet. (sensethe lack of control when iover my businessai, made me a little intense. but now quickbooks helps me get paid, manage cash flow, and run payroll. and now i'm back on top... with koala kai. (vo) save over 40 hours a month with intuit quickbooks. which is, i think, really interesting. how many episodes have you been in? brad: at least five. travis: yeah. amber: five. lemonis: you guys have seen a lot of people come and go. brad: mm-hmm. travis: jd customs. lemonis: brad, who deals with a lot of fulfillment in retail, and they wanted to talk to you a little bit about some product.

travis: the diaper dudes. brad: brad. chris: nice to meet you. brad: nice to meet you. we handle all the operations for all the brands that we bring in. chris: right on. awesome. travis: feat socks. travis: for you to call yourself a leader, and then discredit me... taylor: but that's why -- travis: you haven't taken the time to learn [bleep]. i'm over it. like, you guys figure it the [bleep] out. brad: it wasn't our fault they're not around anymore. amber: play. travis: could we kind of include something about your mom? trevor: this just isn't us. travis: it is. it's part of who we are. trevor: that doesn't have to be the brand! travis: this is who we are! walk away, then. ♪ ugh. i'm literally over this. like, i can't do this. ♪ lemonis: hey, guys. travis: hey. trevor: hey. travis: marcus, how you doing? lemonis: i've engaged a renowned branding agency based in los angeles, called oishii. they're experts at really giving people good feedback, and helping them develop their brand. ismael: hi. how's it going? travis: hey, guys. ismael: hey. great. brad: brad.

travis: travis. kate: hi, travis. i'm kate. express yourself. get creative, flexible. ismael: how about this? "flex isn't just a fashion statement. it's a lifestyle." kate: i mean, obviously, this is a very... california-inspired mood board. ismael: it feels like a travel agency, you know, like you're enticing me to go to california. lemonis: did you know it was a watch company? kate: no. amber: pause. i'm curious as to when you decide to basically outsource, to go to someone for branding. lemonis: well, because i felt like they needed -- along the way, i wanted them to continue to hear it from other people, because i didn't feel like they were listening, or -- i didn't actually think they believed what i was telling them. amber: did you? travis: the positive reinforcement from other people telling us we didn't do it right helped, for sure. lemonis: that's code for "no," right? amber: no. lemonis: play. amber: okay. play. trevor: i think a lot of middle america buy that california lifestyle. kate: mm-hmm. the market is very crowded with people wanting to tell the california story. sometimes, it can come across as very disingenuous.

trevor: this is like home to me. i feel like this is part of who we are. lemonis: i saw you shake your head. travis: i'm just bummed. lemonis: well, what are you bummed about? travis: our story doesn't come across. amber: in this moment, like, how embarrassed are you, when you're... brad: you can see it on his face. amber: i could see -- 'cause -- in your face more than anybody's. brad: yeah. we all wanted to impress marcus, you know, and again, our story wasn't coming across. travis: i understood digital marketing, but i couldn't execute it in the way that i do now because i couldn't tell the story. so, like, once he kind of unlocked me, i really started to find my way, and i could sell shoes. i could sell glasses. i could sell cookies. i could sell pretty much anything. lemonis: in my opinion, you've really evolved as a person. because a lot of people come to you for you to help them. travis: for sure. i think just... lemonis: just like a giant twist of faith. travis: giant twist. ismael: a lot of brands try to infuse lifestyle. part of the problem of that is that it becomes a cacophony of lifestyle images. at the end of the day, it's like, "who cares?" kate: tell me more about why you're doing this.

travis: we started with 10 colors, 10 charities, and we donated 10%. so, it was 10 colors, 10 charities. ismael: i love that. you guys have to understand that creating a brand with a cause goes above and beyond the product that you sell. what i'm buying is you guys. kate: right. ismael: it's the story. it's the belief. it's a conviction. it's a passion. you guys have it, but you've missed it completely. kate: now that we have that, i can actually see why you're doing what you're doing, and i'm definitely more in love with what it is. ismael: thank you very much. travis: yeah. thank you very much for all the help. lemonis: very nice. thank you. kate: thank you. lemonis: thank you so much. ismael: thank you, guys. lemonis: the fact that you didn't make your mom the showcase of it all, i can't understand it. we've talked about it. what is it that didn't make it the big front-and-center thing? trevor: i really feel like too much of that, i don't... for this board, i'm not gonna put pictures of me and my mom on there. this is not who i want flex to be. amber: can you tell me why a customer would, like, crave a clear story? lemonis: a customer wants a clear story so they understand how to connect to it.

and people like to buy from people or connect to a cause. and if we look at how the millennial trend is moving, they want to buy from small companies with a story. travis: like the autism watch, for instance, it's like all people who have identified as someone with an interest in autism, because they like an autism page, or they follow an autism group. right? amber: right. travis: so, that's how we find our customers. lemonis: you have a flex watch on? amber: i do. what charity is it going to? travis: that's the anti-bullying one. amber: i am so into anti-bullying. lemonis: you are? amber: 100. lemonis: because i feel very bullied, right? amber: you bully me all the time. i'll give you 100. maybe it'll shut him up. brad: done. lemonis: coming up... travis: i need to make a display as fast as possible. naim: it's like 20, 30 days. travis: i don't care. we have to rush it. i just need to throw artwork together, dude. can you help me throw some artwork together? lemonis: this will go down as the worst scene in the history of "the profit." it was so bad. i watched this episode, and i was like, "what in the piss is this?"

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what do you think to yourself? brad: "damn, we were fat." [ laughter ] amber: "damn, we were fat." brad: i mean, i feel like we're in a lot better place mentally, physically, like, in business. travis: you actually have to slow down, instead of speed up, and really assess what's happening around you, so that you can make the right decisions. and i was, like, frantic, and you were the one who was like,

"slow the [bleep] down." you know what i mean? lemonis: and i move fast. amber: speaking of slowing down, what did you call him in the very beginning, the minuteman, or the minute rice? travis: yeah. amber: minute rice? and then, there was, like, a meme? brad: his face on the minute rice box. amber: can you pull that up? do you have it? lemonis: for real? brad: yeah. amber: yeah, for real. it went viral. amber: oh, my god. lemonis: let's keep going. we're finally ready for production, but candidly, these guys still lack in their process, and i'm not just gonna let them run loose. we're gonna start with something much easier first. travis: we could change the pattern on this to match what's on the watch. lemonis: i've arranged a meeting with tinsel, a worldwide packaging design company, to come up with a special box that will separate us from everybody else. trevor: when you open this, there'd be something else right here, cut out, and this would be a different color. lemonis: also, i've asked travis to come up with a new display case, and make a list of various manufacturers. travis: i need to make a display as fast as possible.

naim: it's like 20, 30 days. it's conceptualizing, then drawing it -- lemonis: pause. pause. pause. amber: okay. lemonis: there's moments where i'm not there, and there's moments where i should be there. this is one of those moments. when we make our last episode, this will go down as the worst scene in the history of "the profit." i watched this episode. i was like, "what in the piss is this?" travis: this is gonna be the first box. lemonis: box is cool. are these the towers? travis: yeah. this is more of your freestanding store. lemonis: i'm gonna pull this out, if that's okay. travis: yeah, yeah, totally. lemonis: does it have wheels? travis: no. lemonis: why is the back so plain? this thing looks, like, rushed and unfinished. i couldn't be more disappointed with the display case that i'm seeing. this silent salesman has to be able to sell the product on its own, but the one that i'm looking at right now isn't selling me anything. this was travis' responsibility, and yet again, it looks like he's rushed through it. lemonis: when you make a freestanding display for a store, they want to move it around. it has to be seen from all sides.

where's the story. this, to me, feels like a high-school art project. that ended up being the coolest box ever. brad: yeah. it was cool. travis: yeah. lemonis: because it has weight, and because it has structure to it, and hard walls, it made the watch seem infinitely more expensive. and then, you guys ended up... you ended up... brad: moving to that for 30 cents. travis: $3 versus 30 cents. lemonis: and i disagreed with this change -- cutting it, and making a crappy cardboard thing. travis: well, i made a version of it, trying to be economical, because when you use a lightweight packaging it saves you a lot of money on the packaging and the shipping. lemonis: bad move. amber: bad move. why? lemonis: when you start to cut corners -- a dollar here, a dollar there -- i don't think the savings in cost outweigh the perceived value. and i told him that, and he did it anyway. travis: i still really like this box, though. lemonis: yeah, no, clearly you do. good luck to you. [ laughter ] coming up... how is that on story for the company?

trevor: i don't think every design has to be on story. lemonis: i knew that, if they could grasp this concept, it would change the business forever. for exclusives, extras, and business advice, visit theprofit.cnbc.com.

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thirty percent? really? sure! get a quote in 3 minutes at easyaspie.com. that is easy. so, need another reminder? no, i'm good. reminder for what? oh. ho ho, yeah! need worker's comp insurance? get a quote in 3 minutes at easyaspie.com. lemonis: i am upset about it. but we'll move on. travis: we'll go back. lemonis: no, don't go back. don't -- unh-unh. don't do it now. travis: no. i want to go back. lemonis: no, go play. travis: i'm still learning. lemonis: play.

the base feels plain. there's no casters. the back is plain. the top is plain. but we saved $2. travis: it doesn't represent the charity at all. lemonis: why not? travis: the watch will, but... lemonis: but why wouldn't the box speak to the color? as a consumer, do i know what the message is if i just walk by it quick? you've got to fix that case. you guys have to come up with something better. i'm sorry to keep coming back to this thing. amber: oh, no. lemonis: the product inside the box... amber: oh, my gosh. lemonis: okay. can i have the watch, please, for a second? take the watch off. amber: can i have it back? lemonis: there's nothing magical about what this does. people don't buy it because they want to know what time it is. people buy it because they want to support an organization that's meaningful to them. in this particular case, i wanted to give the sender of the gift 100% comfort that what they were sending was gonna be perceived as value. and that's why the box mattered. amber: okay. it's a great business lesson, everyone, on perceived value.

lemonis: it's the receiver that perceives the value. amber: i get it. why are you angry at me? they didn't listen to you. lemonis: honestly... amber: oh, my god. lemonis: yeah. i've just got to move on. amber: i'd like that. ♪ travis: wow. awesome. russell: how you guys doing? lemonis: the silent salesman is an important marketing tool, but it's not the most important one. that would be the website. so, i've set up a meeting with my friend, russell brunson, one of the world's top experts in internet marketing. he's gonna give the team some feedback, and he's gonna help us go to the next level. russell: i was looking around flexwatches.com. looking around. there's all these options. kind of got bored. was the charity thing obvious to you when you first went on the site? russell: not at all. like, the story wasn't clear. trevor: yeah. russell: i own a company called clickfunnels, so any entrepreneur can build a sales funnel. lemonis: at its most basic, an online sales funnel is a series of pages that leads consumers to the checkout --

introducing the product, telling the story, getting them invested in it, finally, taking them to the sales page, and even upselling them additional products. it's a great way to convert visitors into customers because you're giving them step-by-step guidance. lemonis: did you put some ideas together on paper for them to see? russell: i did. the first thing i want to show you for a redesign for the home page... we did this, right here. so, what happens is, it shows right here, and then, there's a video of you guys telling your story. and then, you tell them, "look down below, and find the cause that matches what you care about the most." they come down here, and they say, "oh, hey, i'm interested in breast cancer." lemonis: look at travis shaking his head. russell: ...how much money has been raised so far, and they can come click on it. then, it takes them to the first funnel. trevor: this is sick. travis: i'm floored. i'm literally floored. this is... lemonis: okay. let's get some more boards. travis: alright. brad: he'd been talking to me about russell brunson that morning, so it was like... amber: yeah. you were a big, like, russell brunson fan. travis: i loved it. yeah. i watched all his youtube videos on how to do funnels and e-commerce. lemonis: what did you think when he showed that to you?

brad: it was awesome. travis: i thought that he finally -- like, we could finally tell the story online. it was the first time that i'd actually seen the story told so clearly. russell: if someone was to click on breast cancer, for example, so what's the process, now, we take that person through? here, we would have a very emotional video of somebody telling their story about the cause. we have whatever the watch offer is, person's story here. if we can connect with them here, then we've got them as a customer for life. travis: that, honestly, is beautiful. russell: you get hit with the cause, not the product right away. travis: exactly. that's awesome. lemonis: any other boards? russell: yep. so, now, they've purchased the watch. they need more watch bands. if i got the yellow one, i wanted want the black and the blue and the purple one. i would want the whole kit. so, make a very special one-time offer, where they can get a big discount on all six watches. all they do is click "yes" on this button. trevor: it all just looks so good. lemonis: any final direction for them? russell: the biggest core thing we need is a really good emotional catchy video from you guys, telling your story, and you need a really good video for each charity. lemonis: anybody could sell a watch,

and i want to know why you want me to buy it. create that connection with somebody. i really want you to work on that. amber: okay, so, i have a question about -- you redesigned your website, obviously. travis: now, we use a combination of shopify and clickfunnels. we still have those funnels. amber: and how have the funnels really helped your business? travis: they help a lot. once you get into a funnel, you can really only buy that product, and upsell what's predetermined. and, like, with a shopify website, you can have a shopping cart, and you can have multiple products. so, the funnels are still really good. lemonis: come on in. trevor: hey, marcus. lemonis: how are you guys? trevor: good to see you. jason: hey, guys. nice to meet you. trevor: trevor. travis: travis. brad: brad. lemonis: printed village connects artists from around the world with companies looking for unique designs for their products. lemonis: take a minute, the three of you, and i want you to pick out designs. trevor: alright. i like this. i like that it's different. i think the skull thing is kind of fun. brad: i don't think skulls, and the edginess, and the darkness i'm not a fan of. travis: don't like the skulls. it's a "no" for me.

brad: no. amber: when you come into this business, and you see someone like travis, that is very, like, shoot from the hip, and doing a bunch of different things, and trying new things, is that risky for you? lemonis: no. because i see a lot of myself in travis. when i was his age, i was always trying stuff, throwing stuff against the wall, seeing what worked, seeing what doesn't work. and i didn't have the blessing of having somebody like brad that close to me, so i would make a lot of mistakes. travis' risks were mitigated by brad's conservativism. but there's one common thread that connects the two of them, and that's their sincerity and integrity. we haven't seen it very often. amber: no. lemonis: all jokes aside, i think you guys are the reason that our relationship has lasted as long as it has, is because i can call you at 2:00 in the morning, and ask you to drive to kentucky, and you would go -- no joke. amber: i'd go, too, for you. lemonis: no, you wouldn't. amber: yes, i would. lemonis: no. you would tell me that you'll check it out, and then you have a blow-dry appointment and a dry bar appointment in the morning.

i mean, i still love you, but... amber: let's continue. lemonis: yeah. play. trevor: i still like it. brad: how does it have to do anything with who we are? trevor: well, people love halloween, though. i could argue that this is a fun thing to launch in october. travis: you lost your mom to breast cancer, so i don't think we want to push skulls. trevor: i think that's irrelevant. travis: i don't know that that's irrelevant. i think that's pretty relevant, but... lemonis: how is that on story for the company? trevor: it's a design. it's patterns, right? i mean, this is... lemonis: but how is it on story for the company? trevor: i don't think every design has to be on story. lemonis: coming up... i'm proud of you guys. nice job. watching their personal development, it's a better payoff for me than the financial side. like, all the other stuff just doesn't matter. amber: like the box that he didn't change. lemonis: no, the box still matters. [ laughter ]

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fun. travis: i think that's the complete opposite for what we want to be pushing. trevor: it's a cool design. i like that. lemonis: we went to the creative agency. what did they tell you? brad: we were trying to be cool. lemonis: and what did they tell you would happen when you started to market it? travis: you get swallowed up by everyone else. lemonis: we cannot depart from story. find out what the story is, and have a business with purpose. alright? next? brad: this one, i think, is the most fun. trevor: i don't care for those colors. there's a lot going on. travis: i personally like the other geometric shapes that you chose with the right color, so.... brad: i prefer that one, as well. travis: when we do the meal program, there was, like, arts and crafts in mexico. so, like, all these kids get around, and like make fun stuff. lemonis: and that's a great story. you've seen the path that i'm looking for you to go down. i'm looking for you to come up with a cause, and then, we're gonna submit it to printed village. so, i want to do the one about your mom, okay? trevor: absolutely. lemonis: okay.

thank you, buddy. appreciate you. i like the printed village scene because i really feel like it started to pull them together. and it was another exercise of immersing them in a situation where, they weren't all gonna agree, and that's okay, but they were starting to understand that they needed to have some sort of connectivity. ♪ when we met with russell, we talked about a video. any progress been made on the video? trevor: yeah. we have a couple things, actually. lemonis: can i see it? trevor: yeah. lemonis: i'm nervous and excited at the same time. while this video is gonna give me the indication of whether trevor is qualified to be the marketing guy, more importantly, it's gonna tell me if he's really ready to tell his story. woman #2: hi. ♪ ♪ the same pain man #5: what does she do?

doesn't she lay there, and read her magazine? trevor: no. she slobbered. man #5: oh. woman #2: love my kid. man #5: hold it up. lemonis: not only does the video tell the story, and not only will it resonate with people, but trevor really has come to grips with the reality of why they started the business. but on an emotional level, he's made a ton of progress, and that's good for business. it's really nice. trevor: thank you. travis: he produced the song. lemonis: you wrote that? trevor: i wrote it. i played guitar, sang. we feel so good. it's crazy. we feel so inspired, again, to share with people about these causes that we care about. lemonis: the reality of it is, is that the reason your business was good is because people like the story, and you had to fall in love with the story again yourself. brad: this is why i was so gung ho about flex. it was about doing positive things,

and about raising awareness. i have more pride in our brand. i am excited to tell the story. lemonis: i'm proud of you guys. nice job. nice job. nice job. brad: thank you. lemonis: the video was, for me, the most important thing that happened. i knew that, if they could grasp this concept, it would change the business forever. travis: i think that was the first time that all of us kind of had, like, one vision. after seeing that, and meeting with russell, and, like, putting together the displays, and the packaging, and really, like, going through that process, i felt like we all had our confidence back. that was the beginning. like, we could have closed any deal after that, it felt like, you know? amber: yeah. lemonis: watching their personal development, and watching their success, it's a better payoff for me than the financial side. what happened after this episode, i think, is more important. the business really exploded. it became a legitimate business pretty quickly. what was the most that you sold since the show aired in 1 year?

brad: a million two. lemonis: $1.2 million. we made good money. travis: yeah. lemonis: brad and travis have raised hundreds of thousands of dollars for charities since this episode aired. amber: that's incredible. lemonis: we've raised almost $100,000 for autism alone. brad: yeah, and bullying. amber: wow. travis: yeah, bullying. i mean, we've planted... brad: bullying, clean water, breast cancer. travis: we've planted tens of thousands of trees. we've given tens of thousands of meals. we've given clean water to hundreds of people for life. amber: wow. lemonis: like, all the other stuff doesn't matter. it just doesn't matter. amber: like the box that he didn't change. lemonis: no, the box still [bleep] matters. the box still matters. amber: you better change that package back, i guess. lemonis: or not. he owns the business now. he can have a sucky package, like he did before. amber: on that note... brad: buy flex watches. [ laughter ] ♪

it's 5:00 a.m. at cnbc global headquarters. another wednesday whips off for wall street after stocks stage a wild rally into yesterday's close. no biden bump this morning despite the former vice president securing more key delegates in his fight to become the democratic presidential nominee. and washington on alert, the trump administration exploring multiple options to shore up the u.s. economy in the face of the growing coronavirus threat worse than after september 11th, strong words from the ceo of one of america's largest airline operators, when it comes to fallin