tv The Profit CNBC March 31, 2020 11:00pm-12:00am EDT
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e ifou yr business makes $100 million. that's it. kathy: yeah. lemonis: i'm out. kathy: great vetting process, i love it. lemonis: kathy, thank you for joining us. we really appreciate it. kathy: oh, marcus, thank you. amber: thank you, kathy. kathy: thank you, amber. lemonis: everybody learned a ton. kathy: thank you, everybody. what an awesome team you have. ♪ breannlemonis:is what you don't have a bathroom? breanne: we do. [ laughter ] lemonis: tonight on "the profit," three family members have tapped into an rv revolution. breanne: we're a van-conversion company. lacey: or a dream-builder company is what i like to call it. lemonis: okay. in a growing facet of a multibillion-dollar industry... breanne: it's grown 540%. lemonis: ...they're struggling to refine their process... people are like, "i came to you because i like seeing staple guns." ...and their van-conversion business has stalled out. breanne: we can't afford our rent. we need to do something to survive. lemonis: their amateur workmanship... the finishing of the inside is really important, not having sharp edges by your head.
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...and family drama... breanne: i know there's a lot going on. that is not an excuse for not communicating. alan: mm-hmm. lemonis: ...lead to a shocking twist that you've never seen before. laurie: i'm not gonna be blamed here. lacey: i'm not blaming you. laurie: i'm -- i'm done. lemonis: no, no, no. please. i'm marcus lemonis, and i risk my own money to help businesses. i love investing in american businesses. woman: these people are here because they care. lemonis: it's not always easy, but i do it to create jobs, and i do it to make money. we have a deal? let's rock and roll. man: yeah! lemonis: this is "the profit." ♪ i'm in downtown los angeles today visiting a company called sd campervan. now, i know the rv business really well as the owner of camping world, but the van business is a growing segment inside of the rv industry. i know the company has experienced a lot of bumps in recent years, and i want to figure out if there's an opportunity for me to help them and to make money.
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hi, there. how are you? breanne: good. lemonis: i'm marcus. breanne: breanne. lemonis: nice to meet you. breanne: nice to meet you. lacey: marcus! thank you! it's so exciting you're here! lemonis: nice to meet you. lacey: i'm really happy you're here. thank you. lemonis: this is really cool. and the two of you own it together? lacey: yes. breanne: we do, along with my stepdad. lemonis: so, what would you guys call yourself? are you a van-conversion company? breanne: yeah, we're a van-conversion company or camper-van-upfitting company. lacey: or a dream-builder company is what i like to call it. lemonis: do you guys convert shells? is that how i should think about it? breanne: yes, so... lemonis: is this an example of one? breanne: exactly. yeah. so, a customer calls us, and they tell us what van they have, and then we work with them based on that. so we don't actually buy the vans. we work with the customers' vans, and we upfit them. lemonis: okay. breanne: this is our personal van. all of it is aftermarket. the inside is our conversion. lemonis: and when you say that's your van, that's the company van? that's kind of the model? breanne: this is what lacey and i live in. lacey and i live in it. lemonis: oh.
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lemonis: you're living the van life. breanne: we are. lemonis: i like the fact that they also live the lifestyle because it shows me that they understand exactly who the consumer is, what they need, and how to address their needs. breanne: would you like a tour? lemonis: yeah. breanne: awesome. come on in. lemonis: this is cool. lacey: so, this was built a year ago, one of our first designs, and we call it home. lemonis: for not having a lot of manufacturing experience, they've done a nice job taking an empty shell and building modular furniture that allows this to actually be livable. it's bright, it's open, and it's airy. where'd you learn how to do this? breanne: lacey and i have always traveled internationally. like, we're backpackers. we're travelers. lemonis: yeah. breanne: we were teachers. i taught at a university, and lacey was a fifth-grade teacher. for summer break, we wanted to go tour the united states, so we rented an rv, and we're like, "this thing is big and clunky, and it's just not for us." a couple months later, her dad came over with an empty cargo van, and he's like, "i'm gonna convert this into an rv." so that march, we bought our van,
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and we took off in june for our first trip and, like, absolutely fell in love with van life and the community. we had no idea there was a community. lemonis: huge community. breanne: yeah, totally. lemonis: huge. lacey: yeah. lemonis: as you study the overall rv market, you'll notice a trend away from large motor homes skewing down towards smaller motor homes and travel trailers. smaller, more gas-efficient is absolutely the trend. would you guys consider yourself a subset, part of, or completely separate from the rv lifestyle? breanne: the demographics are very different. lemonis: buyer profile is different. breanne: yes. winnebago and the other class b rv manufacturers... lemonis: roadtrek. right. breanne: ...are not meeting the needs of our community and our lifestyle. lemonis: is that true? breanne: yes. lemonis: how? kat: well, like, the bulkiness. like, you get a lot of unnecessary things. here you see, like, a minimalist, sleek design. also, the outside, the exterior, like, winnebago and stuff like that, you see that's an rv. it has a certain look to it that's not necessarily appealing. breanne: so i would actually --
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lemonis: i don't know if i agree with that. but you have to know that i know this space. breanne: yeah. oh, for sure. lemonis: the rv market is essentially made up of six different classes of vehicles. a "class a" motor home is the largest, most expensive. the class c motor home is smaller than the class a but bigger than a van, and then there's the class b market, which the van category fits in. to round out the balance of it, there's a fifth wheel, which is essentially a tow-behind, and there's a travel trailer that hitches to the back of your truck, and then there's the traditional pop-up, like ken and barbie had. so the b van, right? breanne: mm-hmm. lemonis: which is what this is. it's a b van. is very different from a c class, right, with the overhead cabin, which is probably what you rented. breanne: mm-hmm. lemonis: right? you rented the typical, like, el monte, cruise america-type unit. breanne: yeah, like, 24-foot. lemonis: yep. which is very similar. the difference is that you don't have a bathroom. breanne: we do. [ laughter ] kat: surprise, surprise! [ laughter ]
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lemonis: they like to say they have a bathroom. well, they have a mobile toilet in the middle of your kitchen. lacey: we have a composting toilet. lemonis: you do, okay. and, so, does it qualify for the same things that an rv does with the shower and the toilet? breanne: we do external showers, so, like, the outdoor shower. lemonis: totally fine. breanne: yeah. lacey: and we're working on designs for internal showers. lemonis: for me, the finishing of the inside is really important -- the cabinets not having sharp edges by your head. there's little, teeny things in terms of everything that's gonna give you the maximum amount of space. as i look at the unit, i give them credit for mocking something up, and it may work for them, but at the end of the day, for this to have real mass distribution, everything is gonna have to be right inside. the consumer's looking for the most efficient, best use of space that they can possibly get. breanne: on tuesday, we had a vanlife event, and then i had another team meeting with a remote crew from my other business, so, yeah.
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lemonis: what's your other business? breanne: it's called the vanlife app. lemonis: so, when you say -- is it literally an app? breanne: yeah. lemonis: can i see it? breanne: yeah. we started it two years ago. the vanlife app is a central database of the places that you can camp for free. we help other people connect with others on the road through the app. lemonis: based on the geolocation you're at? breanne: exactly. lemonis: i love the fact that bre has foresight to understand that technology is an important instrument for rvers. she's ahead of the curve. lacey: we've been consistently doing two per month for the last year and a half, but our goal has been trying to get to three, four a month. we really want to scale this. lemonis: two a month is all you can make because of human capital? or is it two a month what you make because that's all the demand is right now? lacey: we have demand. average about four inquiries a day. breanne: probably about 50% are like, "i'm ready. i choose you. i want to go. i love what you're doing." lemonis: and your response is, "i'm sorry. we don't have space"? i like the fact that they're getting 15 leads a month, but the fact that they can't even address a third of them is a problem. clearly there's some breakdown
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in the process where people are saying, "hey, i want to give you money," and you're saying, "hey, i'm sorry. i can't take it." i want to see what the process is here. let's go inside the warehouse. ♪ how you doing, sir? i'm marcus. justin: i'm justin. i used to work for you. lemonis: oh, you did? where? justin: camping world. lake city. lemonis: what is your name? jean-luc: jean-luc. lemonis: jean-luc. what do you do here? jean-luc: i'm a technician, so i do all the electrical prep. i'll do demolition work. lemonis: all the cool stuff. how are you, sir? alan: very good, sir. i'm alan. lemonis: so, what is your role in the process? alan: i kind of oversee the work in the shop. breanne: he's my mom's husband. lemonis: okay. breanne: yeah. lemonis: oh, very cool. well, that's awesome, right? alan: yeah, it's... well, there's the whole dynamic, but, yes. [ laughs ] lemonis: but you guys have a good relationship. breanne: yeah. and my mom is somewhere. this is my mom. lemonis: are you mom? laurie: hi, marcus. i'm mom. lemonis: nice to meet you. laurie: nice to meet you, darlin'. lemonis: well, you have a really amazing daughter. laurie: i know. lemonis: and your husband is pretty cool, too. laurie: i know. yeah. he's --
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they're both just amazing. lemonis: how long have you guys been together? laurie: twelve. alan: we've been married for 7, and we've been together for 12. lemonis: okay. i was surprised at how many people were actually working and completing only two vans a month. i mean, there was, like, eight or nine people there. so, i wanted to have a little fun exercise. if you were mapping each one of you out on a time line, who starts the process and who finishes it? alex: i think you guys would go first 'cause you do all the marketing and stuff... woman: oh, yeah, marketing. alex: ...and the branding. lacey: and then you filter. alex: and then you come here. and then it's alan, because we go back and forth here. alan: and then... lacey: that's been one of our biggest issues, is that we all have to wear multiple hats to make sure that this process even flows in the first place. breanne: the reason we're getting all this confusion was a cash-flow issue. we couldn't pay employees. the whole team took a week off on pay so that we didn't have to lay someone off. lemonis: i definitely have interest in the van space because of its growth in the total market, but i don't know what kind of operation this is. can i use the word "janky"? it feels super janky.
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breanne: and then kat volunteers for us about 10 hours a week. lemonis: you don't get paid? okay. does anybody else not get paid? lacey: alex hasn't been getting paid. lemonis: you haven't been getting paid? alex: not yet, but we have an agreement that it's gonna work out. lemonis: and how long have you been here? alex: three months. lemonis: with no pay? alex: no pay. because i believe in what they're doing. breanne: we have everything on the line here, so... lemonis: what does that mean? breanne: our savings, our credit. my mom and alan, they're living in the shop. they literally live here, so, like, there's a lot of pressure. lemonis: you guys live here? alan: we're here 24. ♪ desire: our quality, our turnout is actually really good, though, so it's not like going to ikea. lemonis: i don't think the quality of your cabinetry is very good.
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they're living in the shop. there's a lot of pressure. lemonis: you guys live here? alan: we're here 24. breanne: and it's been, like, a struggle, so that stress, i think, puts a lot of pressure on our family relationship. lemonis: look. i love the fact that everybody is making sacrifices to keep the doors open here, but the reality of it is, is that if nobody is taking a paycheck and people are living in the space, i'm wondering if this feels more like a liability than an asset.
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breanne: it sucks because on one end, it's just business, so my business mind is like, you know, "we need to fix this." but it's my mom and my stepdad and my wife. lemonis: which makes it interesting when you're sharing a meal and don't agree. breanne: i wouldn't trade it for anything. [ horn honks ] we have a customer here who's dropping off his van. lemonis: yeah. i would love to be part of that. breanne: yeah. that'd be awesome. [ laughs ] lemonis: i like the fact that there was a live customer there wanting to talk about converting their van because i want to get feedback from the customer on exactly why they came here as opposed to the hundred other van-conversion companies that exist. hi, how are you? i'm marcus. man: marcus. pleasure to meet you, sir. lemonis: so, are you guys getting into the lifestyle? jeannie: yeah. man: yeah, yeah. lemonis: are you -- do you have a home today or an rv today? man: we actually own our own home, but we plan on spending the rest of our useful life traveling in the van. lemonis: and will you sell your home? man: no. jeannie: uh, no. lemonis: so, how did you find this company? man: man, we called everybody. jeannie: we did. the internet, yeah. man: yeah.
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lemonis: what will it cost you to do the conversion? man: a little better than $40,000. lemonis: and what did the van cost you? man: $37,000. lemonis: so you're gonna have a big chunk of change in it. jeannie: yeah. lemonis: why did you not go with a traditional rv? man: we couldn't find anything that was suitable for jeannie. [ laughter ] jeannie: i just didn't want this bulging motor home where you can't even move. a little freedom. and lower gas and... lemonis: well, nice meeting you guys. jeannie: nice meeting you. lemonis: thank you. for $77,000, you can get a perfectly crafted, well-made rv that is engineered to be pretty close to perfect. for people to be comfortable paying a premium for custom work, they're gonna expect it to be even better than a typical prefab. so, this is the schematic to build? marianne: yes. lemonis: because i'm just trying to understand how 50 a month want to do it and only 2 end up doing it. so, you take an empty shell, put the insulation in, put the electric in, put the plumbing in, put in your standard features. why is it taking you two weeks to do that? marianne: we do everything from scratch,
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so we're cutting all of the sheets, to sanding, to laminating, to putting it in. breanne: and we're doing custom work, 100%. lemonis: what's a typical conversion cost the consumer? lacey: we can do a standard conversion for $32,000. lemonis: okay, and what's your cost to do that? lacey: so total cost would be about $15,600. lemonis: labor and materials? lacey: correct. lemonis: so a little better than a 50% margin? and what does it cost you to run the business on a monthly basis? breanne: around $30,000. lacey: with two vans, we're breaking even. lemonis: the custom labor model creates a severe bottleneck that limits sd campervans to producing two vans per month. in order to actually have this business be viable, they would have to make eight vans a month. the other thing they need to do is improve the efficiency of making one, which will allow them to make eight. you could find a manufacturer to actually make all the parts and pieces, put it on a pallet, shrink-wrap it, and deliver it for unit number seven, unit number eight, unit number nine.
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lacey: absolutely, yeah. desire: our quality, our turnout, is actually really good, though. so it's not like going to ikea. lemonis: i don't think the quality of your cabinetry is very good. desire: oh, really? lemonis: i just saw it in their van. can we look at the finished goods? look at this. there's already a lamination problem there. if you look at how the cabinets are lined up, it starts flush, and it bows in. and then you look at this side, and it's flush. after seeing all the workmanship, i have less confidence in the carpentry and the craftsmanship of everything inside this van, and in order for me to get comfortable to even consider investing in this business, i want to see how they can complete a very simple task. i don't know if you guys could make a set without installing it of all the cabinets and everything, where we can lay them out on the ground and just go through them. breanne: yeah. absolutely. lemonis: okay? the idea is good. i just don't know how viable it is yet. breanne: right. lemonis: okay? nice meeting you guys. breanne: bye, marcus.
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♪ lemonis: while the whole crew is busy making all the parts and pieces that i asked for, i asked bre and lacey to put a presentation together to help me better understand the van life and their community. i think we should just work here every day. breanne: i know. welcome to the board room. lemonis: how are you? i'm intrigued by their ability to educate me and bring that community and connect it to my business. so, when you describe a person who lives the van lifestyle, can you give me some statistics about them? breanne: so, they have four-year degrees. they're generally around the age of 28 to 35. lemonis: okay. breanne: they are generally leaving a job that is close to six figures. lemonis: how many van-lifers are there in america? breanne: there's a million people living full-time right now. and just to give you a little bit of information on the vanlife app, currently there's a freemium model. we have about 500 premium subscribers. you pay $4 a month to be able to connect with other people.
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lemonis: currently, the vanlife app has a freemium model where users can get the app for free but have to pay to access additional features, but there's also additional streams of revenue that the company should think about to monetize their software. the first opportunity would be a master-sponsorship deal where one company brands the entire app. the second would be to bring in traditional advertisers that can place their specific ads on specific screens. the last is to take their software and technology and license it to companies inside the outdoor and rv space who may want to offer the features and benefits inside their own app or their own website. breanne: one thing that i have that we started is this list of products, stuff that van-lifers need. lemonis: can i have it? breanne: this is part of the value that we have. lemonis: can i see it? look, i like the fact that she's done a little work to put a list together of products and services that she believes van-lifers need and there's a void in the market,
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but then i thought it was odd that she yanked it back as if she's solving some sort of crime with it. breanne: so, the thing that i'm having a hard time with now is we're adamant about me not giving information away. lemonis: then we're at a fork in the road where i'm willing to spend time and money trying to help, but i'm not gonna play the game of, like, what you can have and what you can't have. i'm really confused right now because they called me to come help them with their business. are we gonna work together, or am i just wasting my time here? breanne: this is, like, one of the events that we host in san diego. the whole goal is to galvanize the van-life community. like, this is the event of van life. we generally get $5,000 sponsorship. the only reason we would bring a sponsor in is to really go beyond what we normally do with a budget because we are very picky with the people that we choose to work with. lemonis: so explain that to me. what does that mean? like, if coca-cola wanted to participate, you'd say no? breanne: probably not, yeah. lemonis: what if it was kentucky fried chicken? breanne: no. lemonis: i was just throwing names out, and the fact that she was rejecting them one after the other, i don't know if self-righteousness
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is the way to describe it, but it feels snotty as hell. nike? breanne: no. lemonis: okay, so, you're in this really weird zone between self-righteousness and business. it's a really, really, really hard place to be. and that's the huge dilemma. breanne: yep. ♪ lemonis: it's been a few weeks, and i've asked sd campervan to bring their products to the camping world store in los angeles. i wanted to look at the quality and the finish. how are you? lacey: how are you? lemonis: this is a really important step in my process to ensure that they can make something that's investable. jean-luc: these are our cabinets. these are what we standard build. ♪ breanne: our woodworking, our manufacturing needs work. we need help on it, for sure. but our aesthetic is good. a lot of our customers come to us because of our cabinetry. lemonis: people are like, "i came to you because i like seeing stable guns"?
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breanne: well, that's not -- lemonis: "i like seeing uneven seams"? ♪ breanne: we had no more money. we can't ask our employees to work and then not be able to pay them. lacey: we ceased operations. lemonis: what?! breanne: yeah. lemonis: if you're looking to take your business to the next level, log on to theprofitcasting.com.
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♪ ♪ ♪ when you take align, you have the support of a probiotic and the gastroenterologists who developed it. align naturally helps to soothe your occasional digestive upsets 24/7. so where you go the pro goes. go with align, the pros in digestive health. a lot of our customers come to us because of our cabinetry. lemonis: people are like, "i came to you because i like seeing stable guns"? breanne: well, that's not -- lemonis: "i like seeing uneven seams"? what about this top? is this flush, do you think? alan: nope. it's off a little bit. lacey: we can definitely improve upon our builds. lemonis: you can't get away with misaligned cabinets,
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things not being right, 'cause nobody wants crooked stuff. you're not cabinetmakers. alan: no. lemonis: you're not sink builders. what you guys are trying to be is all of those things, and you're just not. lacey: yeah. breanne: how do we transition from being a cabinetmaker, which we're not, to that rv manufacturer? lemonis: i'll show you. okay. ♪ right to me. the best way to demonstrate my point to the team would be to do it visually, so i wanted to pull up a b van and compare what campervan does to a van that the traditional rv market already makes. breanne: people don't want this, and that's why 70% of our community builds their own. lemonis: i respect that the van-life community is different, but it's different to a degree. breanne: mm-hmm. lemonis: people still poop. they still sleep. and they still eat. every single rv manufacturer is really an assembler, and the parts and pieces that you see inside this traditional rv van
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are an accumulation of parts and pieces from experts. in the case of sd campervan, they want $77,000 for a virtually homemade van conversion. ♪ the difference in this unit is that somebody made choices for you. they made color choices. they made finishing choices. they made floor choices. you don't have the technology... like, look. this is technology. breanne: i think we're just serving a different market. lemonis: no, you're behind. breanne: all the technology in here is the reason you can't go off-grid. lemonis: and how are you running -- off solar? breanne: off of solar, off the alternator, also lithium-ion. lemonis: great. so, what you have to do is find the middle ground to embrace that and not say to people, "oh, you like technology? no, no, no, not us." lacey: yeah. lemonis: "we're earthy." desire: "we're earthy!" lemonis: but i think the challenge i'm having is i don't feel like you guys embraced the manufacturers that make the parts and pieces.
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so, get an empty shell. i'll buy it, and we'll start from scratch. you can't build anything inside of it, 'cause i want to teach you how you can source all those things for less. you're thinking something. breanne: i want -- i want -- when are we gonna sit down at the table and show you our financials? lemonis: and instead of her listening and asking questions and making notes, she wants to rush right into, "when are you gonna write me a check that i can cash?" anytime you want to scare off an investor, take this approach. breanne: i was hoping you had your checkbook out. but this will work. lemonis: i had my -- no. the check you're getting is for the finished product, right? you're gonna get my money one way or the other. [ laughter ] i think you need to determine if this is actually viable. because i left last time thinking, "it's not viable." lacey: what is not viable about it? like, what is your thought process behind that? lemonis: it's too homemade. lacey: right. okay. lemonis: it's not scalable. you can't do volume the way you're doing it today. lacey: but with what we're gonna be doing, then it will be?
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lemonis: we'll see. lacey: we'll see. okay. okay. high five. breanne: yes. lemonis: thank you so much. i'll see you guys soon, okay? breanne: thanks, marcus. bye. ♪ lemonis: today i'm back at sd campervan, and i want to see what options they've found for the van that i want to buy, and i also want to start to line up some third-party manufacturers to help them with their cabinets and their furniture and a variety of other issues. lacey: hey, marcus. lemonis: oh, hey, guys. how are you? lacey: we're okay. lemonis: you guys working today? breanne: no. lacey: no. how you doing? lemonis: what do you mean, no? lacey: well, we ceased operations. lemonis: what?! breanne: yeah. lacey: yeah. we ran -- lemonis: you closed? lacey: we had to close, yeah. lemonis: wait, wait, wait. i was just with you guys a couple weeks ago. breanne: i know. it just came to a point where we had no more money. we can't ask our employees to work and then not be able to pay them. we literally have no money. we can't afford our rent.
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we're $200,000 in debt. we need to do something to survive. lemonis: is there somewhere we can sit down and talk about it? look. this is terrible information. i've never in the history of doing this been in the middle of working with a company and they close. now i understand where the desperation to get a check from me was coming from. i didn't know they were literally operating on fumes. lacey: it's been -- it's been really hard. the family's not even doing well. lemonis: hi, alan. hi, sir. alan: hm? hi. lemonis: sorry we got to this point. alan: me too. me too. breanne: my mom and alan think that we're just sitting back, like, collecting paychecks. i mean, this morning, he was texting lacey for money. he doesn't understand the position that we're in. he thinks that we went out of business because we just decided to do that. alan: no. that's not what i thought. i knew the business was struggling and we were having problems with finances, and i stepped in as much as i could.
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breanne: the hardest part about this is, like, we didn't do this for fun. we didn't do this 'cause we had extra money. i wanted to take care of them. ♪ [ sniffles ] um... lemonis: alan, is what she's saying make any sense to you? alan: yeah. it does. yeah. lemonis: and your wife, obviously, is upset, as well. alan: yes. lemonis: this idea that people have that business isn't personal is just a bunch of b,s. when you get in business with your family, unfortunately, it becomes personal. we got to get this resolved. there's no way a business should tear apart a family. what do you think happened here? laurie: they wanted it so badly, but they didn't know how to do it. everybody's under pressure, and the pressure is so high. but there's too much blaming. lemonis: are you having a difficult time looking at her? laurie: mm-hmm. both of them. lemonis: is it because you're angry? laurie: because i'm sad. i miss my family.
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♪ breanne: honestly, we wanted to give up on this business a year ago. we wanted out. we stayed in for you. you remember that conversation. alan: mm-hmm. breanne: the common goal, it's for them not to struggle financially. that's still my end goal. like, that's why i work as hard as i do and lacey's been working as hard she does. laurie: it didn't feel that way. breanne: that decision to say, "we can't bring our employees back on monday," was one of the hardest decisions me and lacey have ever had to make, and when we called alan to say we can't have them come back, you said, "are they [bleep] us?" and that's not fair. laurie: okay. there you go. ♪ breanne: the worst part of this whole thing is the lack of being able to take responsibility. ♪ laurie: you know what? i'm not gonna be blamed here. lacey: i'm not blaming you. we're just telling you we care. you're telling us that we don't care. laurie: i'm -- i'm done.
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lemonis: no, no, no. i'm here. i'm -- i'm -- please. ♪ i gave you $5,000 to sponsor your event. where's my signage? how about, like, a banner? nothing! have you heard? for the first time ever. you can watch the brand new "trolls world tour" movie... wait for it. at home. what? -what? ooh! [ gasping ] what a troll. and here we have another burst pipe in denmark. if you look close... jamie, are there any interesting photos from your trip? ouch, okay. huh, boring, boring, you don't need to see that. oh, here we go. can you believe my client steig had never heard of a home and auto bundle or that renters could bundle? wait, you're a lawyer? only licensed in stockholm. what is happening? jamie: anyway, game show, kumite, cinderella story.
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lacey: i'm not blaming you. i'laurie: i'm -- i'm done.re. lemonis: no, no, no. please. ♪ it is true that businesses don't make it. there's businesses that i've invested that have failed, and the most important thing is understanding how to recover from a failed business. breanne: we told you we wanted out, and you said, "i promise i will not do this again," and you continued to do it. lemonis: do what again? breanne: not order on time. he had to build a cabinet three times. it took two weeks to build a cabinet. we told you, you were taking us down. lemonis: now, is that a fair statement to make? laurie: how do you not feel like a failure when you know you're taking your kids down? how do you not? lemonis: i said to you the day i met you, "this is not a viable business model," and the reason it's not is because we're in a garage trying to convert an $80,000 van
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with no tools, no equipment, no financial resources, nothing technical. you guys knew nothing about manufacturing, nothing about process, and you did take care of a lot of customers. there were a lot of people that were happy with their work product. the minute that you can accept the fact that what was accomplished here was actually pretty damn amazing, the better off you're going to be as an individual, and your relationship's gonna work. so where do we go from here? breanne: [ sniffles ] laurie: i love you, breanne. and i just want to be okay. breanne: i...am sorry for... laurie: don't be. alan: no. laurie: don't be. i am, too. don't be. alan: hey, we accomplished a great deal with what we were working with. laurie: and you tried so hard. breanne: it'll be okay. like, i think if we can get on talking terms and, like, figure this stuff out, that we're...
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laurie: she doesn't like this, but i do. 'cause i need my baby. breanne, i'm so sorry. lemonis: look. honestly, i have experienced a ton of failures, and it would be easy for me to crawl into a corner and hide, but at the end of the day, to be successful in business, you'll be defined by how you recover from your failures. in this particular case, i need the family to come back together. the rest, that's the easy part. so, let's talk about how we move on. so, i think all of us should take a ride to valencia. we'll map out a plan, but what won't work for me is if this doesn't work. laurie: yeah. lemonis: because i'm not interested in investing in people that can't invest in each other. i just can't do it. breanne: thanks, marcus. lacey: thank you. laurie: thank you. ♪ lemonis: so, what i'm gonna do, if it's all right with you guys, i'm gonna have the two of you go into the shop,
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and i want you to make a list of what you think somebody needs from outside the van and inside the van. we're gonna develop the vanlife assortment. you could download the app. you could do all that, and you can get it online by going onto the vanlife section, all the products curated by you guys. you can come in the store. breanne: wow. lemonis: there's all the products curated by you guys. breanne: hmm. [ laughter ] lemonis: although sd campervan the conversion company has closed, what hasn't closed is their knowledge and understanding of the van community. by creating a new section in my store exclusively for the van life, i think there's a way for both of us to benefit. they'll drive traffic and customers to my business, and in return they'll get a piece of the revenue and free advertising in all of my stores. you're gonna go do that, and i'm gonna spend some time with them. breanne: okay. cool. thanks. lemonis: mom's coming with. the burden of caring for her parents is crushing breanne, so i want to give her parents an opportunity to be self-sufficient and provide for themselves. so, what i think, just after seeing how hard you work,
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i think the right kind of job for you is maybe working in a service department like this. there's electrical work that'll happen here. there's appliance work. there's installation work. alan: i've worked in service departments before. i have no problems working with my hands. it's something i enjoy. lemonis: look, i know that alan is going to need full-time work, and if he's actually willing to do the work, well, i want to give him a full-time opportunity. alan: this is great. lemonis: so you want to work together? ♪ alan: yeah, i think i'd like that. lemonis: you got a job here. alan: okay, cool. lemonis: okay? and i'm gonna set you up with somebody, get the paperwork done, and get your benefits. should we go tell your wife? alan: sure. she'll be happy. lemonis: good. as long as she's happy. ♪ alan: i'm gonna go to work in san bernardino. laurie: you really are? my god. lemonis: we're gonna start at $17 an hour, plus incentives. laurie: okay. you really are! oh, my god! oh, my god! lemonis: this is gonna be awesome.
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look, it was important for me to help laurie and alan get back on their feet, and it's an opportunity, not a guarantee. let's walk and look at our list. so, stuff like this -- lights. helpful? lacey: yeah. breanne: we use different lights -- the, like, puck led recessed. lemonis: okay. did you put that on there? breanne: yes. lemonis: okay. great. how about all the cleaning stuff? breanne: what you're missing is an eco-friendly option like dr. bronner's. lemonis: so, what i want you guys to do is walk the store one more time. make a list. put it on paper. i really believe that what you guys have is an understanding of a community that my business needs, and what i think i have is what your community needs. breanne: that sounds great. lemonis: but you have to curate the products. breanne: okay. lemonis: when is the van meetup? lacey: january 25th. lemonis: and where is it? breanne: san diego. lacey: fiesta island, san diego. lemonis: and how many people are you expecting? breanne: five hundred. lemonis: okay. is it your event? breanne: yes. it's the vanlife app's event. lemonis: do you need a sponsor? breanne: yeah. lemonis: i'm gonna give you a sponsorship. breanne: cool.
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lemonis: but it's gonna be good sam. breanne: good sam. that's fantastic. lemonis: good sam is another company that i own that's inside of camping world. we offer products like roadside assistance, insurance, and a variety of other things that make it easier once people are on the road. breanne: i'm, like, really excited. lemonis: well, get to work. i'll see you guys soon, okay? i want you to walk the store 'cause i want that list tight. breanne: okay. lacey: okay. ♪ lemonis: alan, did you ever call the manager? 'cause i got an e-mail from him that says he hasn't heard from you. breanne: i know there's a lot going on, but that is not an excuse for not communicating. there shouldn't be this confusion. alan: mm-hmm. lemonis: for exclusives, extras, and business advice, visit theprofit.cnbc.com.
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♪ lemonis: it's been over a week since i saw breanne at camping world, and i want to understand if she's been able to let go of any of the tension and pain between her and her mom. how are things with you and your mom since when i saw you last? breanne: honestly, i... like, last week was really hard. i feel like i don't have time for this. i don't have time for getting into it with my mom because i have so many other things to think about, right? i have a business that i have to close, and i have this other business to run. lemonis: it's easy to immerse yourself in business so that you don't have to deal with all the other stuff. it's sort of -- and i'm the king of it.
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it definitely impacts business, whether you recognize it or not. it's really weird how it works. breanne: yeah. i mean, i do the same thing that you do, and i think having the intention to make it better is the only way for it to get better and actually taking those steps to make it better, and i think that's what you really propelled in our last meeting because i wouldn't have sat down. like, i wouldn't have. lemonis: i think you're a super-loving and warm person. i find you to be that way. very kind. right? ♪ ♪ today, i'm in san diego at the vanlife meetup that good sam is sponsoring. bre and lacey put this together so people who live the van life can network. i'm really hoping there's a real turnout here because i want to learn and get information from those people who live the lifestyle and can teach me something. woman: what we're trying to do
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is empower everyone in our community. on the app, we have messaging and connections with friends, so make sure that you're using all of the resources that we're providing. thank y'all. yeah, let's give a big hand. [ applause ] lemonis: how are you doing? breanne: good, good. lemonis: everything good? did you guys get a good turnout? breanne: yeah. awesome. you probably can't even see the end. lemonis: how many people did you get? breanne: 600, 700. lemonis: oh, cool. breanne: yeah. lemonis: i just want to walk... breanne: okay. lemonis:...and just sort of get a feel for all this. breanne: so... lemonis: how have things been going with your mom? breanne: good. our relationship is good. lemonis: okay. because you know that's a nonstarter for me. breanne: yeah, and what's good -- so, lacey also went over to l.a. 'cause they're working together and, like, spent time together, and i wasn't able to be there, but... are you freaking kidding me?! laurie: i love my child. [ laughs ] breanne: dang it! aah! laurie: she just hit me really hard. lemonis: is she doing better? laurie: yes. she is. she's working hard at it. lemonis: alan, what -- what's happening with you? 'cause i was surprised to see you here today. did you ever call the manager?
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alan: well, my wife and i are looking into other options. i've been closing up the shop, selling off the stuff. lemonis: but you and i had a brotherhood deal that you were gonna follow up on that one. alan: yes. lemonis: because i got an e-mail from him that says he hasn't heard from you. laurie: we're having garage sales. we're trying to get everything sold. breanne: i know there's a lot going on. there's -- but that is not an excuse for not communicating. lemonis: that was the girls' biggest complaint, is that you did have trouble following through on things that you said you were gonna do. breanne: there shouldn't be this confusion. alan: mm-hmm. lemonis: so, monday, you're gonna make contact with the service manager, and if you don't by the end of monday, the job offer's off the table. alan: okay, cool. lemonis: i would never really force my manager to hire somebody, and i got him a job at a decent wage so that he could pay his bills and not be homeless, and the dude's standing there drinking a beer like it doesn't matter. maybe that's why your business closed. ♪
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good sam exists to support a community -- people that stay in tents and that's how they camp, people that are hikers and bikers and skateboarders and blah, blah, blah, blah. the opportunity that you have is that there's an infrastructure that exists. woman: i bought a class b van 3 months ago, and we have been sleeping in it overnight, sedona, grand canyon. right outside the lodge. we cook in it. we sleep in it. good sam -- you're one of my favorite. i just walked up. i had no idea you were here. lemonis: yeah. right. but hold on a second. did you know that good sam was sponsoring the event? woman: i had no idea. lemonis: to have a good sam member tell me that they didn't even know good sam was here is realupsetting. i gave you $5,000 to sponsor your event. where's my good sam signage? and don't point to the little sign on the stand. breanne: we just -- we needed the logo. we needed whatever material that you wanted passed out. lemonis: you have google, do you not? and i received a presentation from you last week, did i not? did it have the good sam logo on it? breanne: mm-hmm. lemonis: where'd you get it? breanne: the internet, for sure. lemonis: thank you. earlier in the week, they cashed by $5,000 check.
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that little sign looks like you went to kinko's for, like, 12 cents. breanne: i was working until -- from 8 a.m. until 11 p.m.... lemonis: no one cares. i don't care. but how about, like, a banner? nothing! ♪ i was thinking that i want you to do the work. breanne: i just want to make sure i'm not giving away my time. i want to know what we're getting. she lookshe's one of the most important peopleyeah. in all of peytonville. really? mayor? insurance agent. wow, she must be really good. the best. that's why she chooses nationwide to help protect all the families, businesses, and dreams in peytonville. (horn honks) people really count on her.
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she must be really famous around here. she is. i got her autograph back at home. must be small. it is. you can barely read it. here's another cleaning tip from mr. clean. cleaning tough bathroom and kitchen messes with sprays and wipes can be a struggle. there's an easier way. try mr. clean magic eraser. just wet, squeeze and erase tough messes like bathtub soap scum... and caked-on grease from oven doors. now mr. clean magic eraser comes in disposable sheets. they're perfect for icky messes on stovetops... in microwaves... and all over the house. for an amazing clean, try mr. clean magic eraser, and mr. clean magic eraser sheets.
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breanne: you have an awesome infrastructure, and i have an awesome community that needs stuff, and we can work together to serve them. lemonis: okay. look. i gave them an opportunity to shine and really impress me, and they didn't seize it again. it reminds me of what happened with alan, where i gave him a job opportunity, and he didn't even show up or call. i'm sensing that there's no follow-through and, honestly, no passion to even do anything with me. ♪ where are you guys on putting that list together of products that you think this community would like? what do we want to do with that? breanne: um, yeah. i think we -- we haven't, like, fully curated the list. lemonis: you haven't fully -- breanne: what were you thinking? lemonis: i was thinking that i want you to do the work, and i want to give you the exposure, and even if we have to figure out what the economics are, i'm fine with that, but i don't want to do the work. breanne: okay. i just want to make sure i'm not working and giving away my time. i want to know what we're getting. lemonis: i'm not sure -- help me understand.
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i'm not sure i'm following. breanne: we've been going through this for years to see what people use and what they do. that's not something that i'm really willing to just hand off, but we know the community, so, like, we need money. lemonis: i don't need your help. i can find vanners just by myself. ♪ it's not like a secret code to launch the space shuttle. i'm not even sure i understand what bre just said to me. she wants to make sure she's working and not giving away her time. like, i just gave you $5,000, and you did nothing for me. i don't want to be in business with somebody that expects me just to write checks and give me nothing back in return. that's not business. that's, like, charity. and i don't want to be in the charity business with them. breanne: we are fundraising. like, we need money. so we're -- we've -- we're all-in on the vanlife app, and we need to make sure we're not completely pulled away. you know what i mean? lemonis: yeah, but do you think it would be better for us to put the project on pause
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so you're not distracted from the fundraising and then when you get that funding done we pick back up? breanne: yep. lacey: that's it. ♪ lemonis: one of their businesses just failed, and i gave them a lifeline to make a living and generate some revenue, and they pursued it about as lacklusterly as anybody could. i'm gonna tell you something. so, in the future, you have to be, as a business owner, and i think you are -- i've told you before. i think you're so bright, and i think you have unbelievable potential. i know you have what it takes to be an amazing business owner, and i'm not ever going to let you off the hook. 'cause that's my job. breanne: thank you. lemonis: my job isn't to make it easy for you. breanne: yeah. lemonis: and you knew that. you knew that when you called me. okay? we got a deal? breanne: yeah. lemonis: okay. all right. the van-life community is something that i'm definitely going to pursue, and while i would have liked to have them help me with it, breanne and lacey weren't ready for a partnership with me.
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but there is a silver lining. a couple of weeks ago, alan called my manager, and he started working for camping world. in order for him to stay, he's gonna have to prove himself. but it helps me hold out hope for this family. ♪ -you're steven, also? to-steven: yes. profit"... lemonis: three generations right here. steven: right here. lemonis: a multigenerational custom-furniture business... do you and your dad have blowups here? steven: all the time. lemonis: ...struggles to stay up with the times... [ screeching noise ] steve: some of the machinery here are 50 years old. lemonis: ...and a father who won't give up control... steve: do you have a packing list? steven: are you really gonna micro me again right now? steve: please. lemonis: ...leaves a son struggling to make his mark. steven: oh, my god. lemonis: if i can't bring these two together... steven: when it's done, it has a sticker. if this doesn't have a sticker, is it done? -steve: no, it's not done. -steven: okay. lemonis: if he can't do the job, you fire him. ...there may not be a next generation of grafton furniture.
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