tv The Profit CNBC April 7, 2020 10:00pm-11:00pm EDT
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-talk about a hail mary. -i was with you! i'll be the first to admit, it was, like, bam! man: man #2: that looks pretty good. woman: might as well keep rolling. lemonis: tonight, we're going to give you an inside look at an episode from season 5 called tankfarm in seal beach. john: california. mike: california. lemonis: california. now, who's the better-looking one? john: i guess probably me. mike: i don't think so. [ laughter ] amber: marcus, you want to introduce them? you didn't say their names. lemonis: oh, no, they'll say -- why don't you introduce yourselves? john: so, where -- am i looking at you? amber: no, just-- [ laughs ] lemonis: just talk. mike: be regular. so, i'm mike anderson, this is my brother john anderson. john: hi. amber: oh, my god. wow. john: i'm john -- i'm john anderson. lemonis: by the way, their names are mike and john anderson. they're the anderson brothers. john: design and supply company. lemonis: no, we're just introducing you. everything doesn't have to be a plug for your business.
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john: oh, okay, well -- lemonis: okay, so we're going to have a little bit of fun tonight. in the last seven years of doing "the profit," i've visited nearly 100 businesses. let's go make some money! [ horn honking ] and i've traveled the country trying to fix the people... and you do $1 million a year? you should be proud of that. man: 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. juli: it reduces anxiety and depression. lemonis: i kind of like it. i spent countless days working on these companies. how much money did you burn through? parker: $650,000. lemonis: but we can't always fit everything i'm thinking into the show. so tonight, we're going to give you an inside look at an episode from season 5 called "tankfarm." mike: you want to be my boss sometimes where i'm like, "dude, we're partners." john: no, want to talk real? let's talk real. john: at that time, you know, mike was pretty lackadaisical in that area. you kind of just didn't care. mike: mm. i don't think you did as much as you thought you did.
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lemonis: over the next hour, i'm gonna take you behind the scenes to share with you what i was actually thinking during filming... both of you, get your [bleep] together and figure out how to coexist and have mutual respect. john: at that time, we were at our -- really at our bottom. we don't do a lot of things -- lemonis: as a family? john: yeah, because it's too painful. mike: our family, you know, just, like, broke apart. lemonis: ...share some secrets... ashley: we might want to spell "barbeque" correctly, though. mike: i start using spellcheck. i didn't know it existed before. lemonis: ...and give you an honest assessment of my decisions. that store's closing, unfortunately, no matter what. whoo! my name is marcus lemonis, and this is an inside look at "the profit." this is one of the best investments that i have made in the history of the show. when i look at investments, i look at getting a good return on my capital, which i've definitely gotten, but i also look at the integrity, the character, and, quite frankly,
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the quality of the people i do business with. now, mike is definitely that guy. amber: [ laughs ] john: he is. it's true. mike: and my brother. lemonis: okay, john's not a bad guy, either. john: i'm pretty good. lemonis: why don't we go ahead and start the show? amber: let's do it. ♪ lemonis: i have a number of investments in the fashion space, and if this one goes well, it could fit in very nicely. ♪ woman: hi, how's it going? lemonis: hey, how are you? woman: good, thank you. ♪ mike: it's -- honestly, that's a good-looking store. lemonis: you know what? here's what i'll say, of all of the businesses that i've ever gone into, the retail merchandising of this particular store could have been one of the best. amber: the best, i think. mike: john picked out some cool stuff. i designed some cool stuff. you know, we were always fine-tuning it, you know, changing it, adding fixtures. but because of that, we learned
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how to merchandise for our new customers. lemonis: yes. john: so, tankfarm is supplies for gentleman of sport and leisure. our strong demographic is male. 25 to 45, that's our audience. mike: that's a good pitch. not too bad. lemonis: he practiced in the mirror that morning. john: i should have. this is our brand. it's great. it looks great. we buy the blank, mike designs the graphic. it's really high quality. lemonis: are these all your house brand, or is there a combination? john: we have about 65 brands. a guy comes in, he can get everything from his socks, his boots, to sunglasses. lemonis: what's your store do in revenue? this location? john: about $540,000-ish. lemonis: $540,000 out of this store. john: and about $560,000 out of the other store. lemonis: huntington beach store make any money? john: $15,000 last year. lemonis: this store? say goodbye to huntington. john: like 5 grand. lemonis: okay. mike: but also, we have a private label design business that we do on the side. lemonis: oh, really? john: the private label is a different company. lemonis: and that's designing and producing for other people? john: anderson brothers design and supply. lemonis: how much revenue? john: last year, 1.7.
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lemonis: wow. solid. i'm learning that there's actually two separate companies. tankfarm, which has the two retail stores that are struggling, and anderson brothers, which is basically an apparel company that helps other companies manufacture goods and products with their name on it, a bit of a private label apparel company. it's clear to me that these guys really understand how to design and manufacture and distribute products. but running two stores? not so much. pause. you just shook your head. john: no, no, i was like, "no, you're right. not so much." lemonis: no, 'cause i think you don't actually agree with me on that one. it's okay. we're friends now. john: well -- lemonis: you think you run retail stores really well. john: no, no, no. it was a lot of work, and it didn't pay off, but when you think of all the lessons we learned from having retail stores -- mike: oh, exactly. lemonis: and i think it's important for viewers to understand this -- that there are things that you're going to do inside of your business career, and the things that don't work, you probably learn more from than the things that do work. john: totally. it gave us a phd in that part.
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not so much the back-end financials, but i was like, "wow, we're so great at doing this. marcus is going to call us and want to do 20 tankfarm stores," and -- mike: big surprise with that. lemonis: did you actually think that was going to happen? john: i thought that was a possibility. mike: we actually thought that you were going to expand the tankfarm retail experience. john: like shopping shops. but it was, like you said, a great way to learn, and now we can pass on some of those jewels to our customers and help them be successful at what they're doing. lemonis: i really do agree. ♪ lemonis: who does the planning? john: i do that part. lemonis: oh, so you're the "buyer"? mike: but i do the hands-on graphic design. john: i buy the best of the best. lemonis: are you 50/50 partners? john: yes. mike: yeah. lemonis: how did you start the business? mike: we're third-generation printers. john: our grandfather, he started the print shop in the '70s, and now it's paper goods. and then in the '80s, our dad started doing t-shirts. mike: but he still prints our stuff. john: so ink's in the blood. mike: where we grew up, orange county, there's a 3-mile area of these big oil tanks, and that was called the tankfarm. wife's like, "you should really open up your own store."
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john: everyone told us. lemonis: you're married? mike: married, yeah. i have three boys, little boys, and he has two girls. and my wife owns the women's boutique across the street. lemonis: oh, very cool. [ chuckles ] mike: too much? mouthful? lemonis: just so you know, i almost think that the editors had to slow it down. sometimes i go in, and people are, like, ho-hum. they're debbie downers. when i came in, you guys are full-force octane. your energy is infectious. it made me want to do business with you guys. i remember looking at the rest of the crew, saying, "oh, this is going to be a fun one." amber: yeah. john: cool. mike: that was fun. it was a blast. singer, our younger brother, played guitar and wrote a bunch of stuff. lemonis: how many brothers? john: three. lemonis: okay, so there's one more. mike: he passed away. lemonis: oh, he did. mike: yeah. so about almost two years ago. john: cancer. lemonis: oh, man, i'm sorry. both: that's our brother, ricky. john: he's the talented one. mike: yeah, he was singer-songwriter. super talented. we have his record here. john: i mean, there's a lot of pain that goes through cancer. hard thing to talk about.
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mike: when things happened and kind of went to, like, stage four and all that, we're like, "this is not making sense. this does not add up. this doesn't happen to us." john: yeah. mike: we're the andersons. john: we don't vacation anymore together. we don't do a lot of things -- lemonis: as a family? john: yeah, because it's too painful. mike: our family, you know, just, like, broke apart. lemonis: and you guys were -- you guys were always close as a family. john: super close. we were blessed with, like, this lifestyle of it -- of it being all kinds of fun stuff. and you're like, "wait a second. not anymore." lemonis: how old was he when he passed? mike: 34. amber: 34. john: four years ago. lemonis: holy moses. john: there are some real feelings there, you know? mike: ah, you know what, it's -- john: it's still pretty -- it still stings to see that stuff. mike: it's like two extremes, you know? one extreme is how great things are, and the exact opposite is how crappy things are without ricky, you know? amber: right. right. mike: that's how it is. john: okay, so this is the office.
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lemonis: hi, there. amy: hi. lemonis: i'm marcus. mike: this is amy. amy: so, i'm the production manager for anderson and tankfarm, and then i do the finances for anderson, as well. lemonis: i never like the brand on the door to be the brand on the product inside that store. the idea of creating brands and doing what you do inside of anderson is great. but what i would prefer to see is anderson on the door and then inside of the store, other brands that you may own in your back pocket. amber: why did you say that about the name on the door and the stuff inside? like gucci, chanel, they -- lemonis: that's different. they're retailers. for example, you don't walk into target and see "target" on their clothes. you don't walk into walmart and see "walmart." they create their own brand as an adjunct to their primary business. and so when i saw tankfarm on the door and tankfarm inside, it just throws me off, because i see a bunch of other brands, as well. john: mm-hmm. lemonis: mike tells me that his wife's in the apparel business, and so i wanted to get a flavor for how her store would look.
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john: oh, great. mike: my better half, candi. candi: hi. lemonis: how are you? candi: i'm good. lemonis: nice to meet you. candi: nice to meet you, too. mike: look at that pretty girl. lemonis: what a beautiful store. candi: thank you. lemonis: maybe you guys should come over there and teach us something. candi: hey, i will. [ laughs ] lemonis: what do you think their store looks like? candi: i always tell 'em it looks like a museum. i tell them, let me merchandise, but, you know, so... john: i don't really agree. woman: i think it's a little in there, a little maybe too cool. john: i don't agree with the too cool thing. i don't agree with it at all. candi: i don't want to step on any toes. lemonis: i was surprised how quickly john got, like, really defensive. mike: that's the moment you're like -- john: forget it. mike: you weren't faking it. the cameras didn't matter. you were getting irritated. and you saw it right away. amber: john, are you better at taking criticism now? john: yes, i'm cool -- totally cool with it. no, really. no, yeah. i can take it. mike: he is, yeah. john: [ whispering ] i can take it. lemonis: play. lemonis: yeah, buddy. what i really want to do now is go to the dad's print shop. whoo! which is ultimately where it all started.
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mike: yeah, this is the best part. lemonis: it was a long ride, too. mike: it was. john: [ laughs ] lemonis: whoo, that was fun. just so you guys know, i was scared out of my mind. john: hey, dad. lemonis: mr. anderson. nice to meet you, sir. oh, wow. this is a big shop. i honestly was surprised with how big the screen-printing shop was. mike: angle, good pressure all the way in. lemonis: what i like about what i see here is it's connected to the family, so i know there's good pricing. rick: slick. lemonis: come on with the gold. and, amber, just so you know, all the "profit" merchandise that's on the internet, that we give away every week for fun, these guys made it, designed it, did everything. amber: wow. lemonis: all the fun stuff. john: whatever you need, that's what we do. amber: so cool. rick: mike is a great graphic artist. john is the sales guy. he's very determined. can't think of anything better. mike: thanks, dad. john: thank you, pop. rick: we've been through a lot with my son. [ sniffles ] lemonis: yeah.
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mike: we could show you a video, a video he did for his daughter. lemonis: i would love to watch that video. did he write this song? mike: he wrote it and sang it for his daughter. ricky: ♪ don't ever stop loving ♪ ♪ don't let anyone take your crown ♪ ♪ you're my angel ♪ there's nothing on earth as beautiful ♪ mike: growing up, we never saw our dad shed a tear until, you know, all this stuff. lemonis: till ricky, yeah. lemonis: if you guys could say one thing to him right now, what would it be? john: oh. mike: geez. [ laughs tearfully ] [ groans ] ricky: ♪ wide open ♪ don't let your emotions take away your love ♪ john: just, "i miss you." mike: yeah, about the same. but also, you know, "hey, your -- you know, rachel's good. the kids are good."
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ricky: ♪ if you lose your way ♪ just listen for your name mike: life is never going to be the same. ricky: ♪ you'll hear me in the way john: you think you'd get used to talking about it, but you don't. ricky: ♪ our hearts will sing again ♪ mike: he actually told us, "you guys -- you guys have each other." when it was getting close, he says, "you guys have each other." you know? so... john: yeah. lemonis: you can tell by the way they feel about their father and their brother that they have character. and any time you meet people that are rich in family tradition, those are the underpinnings of good business partners. ♪ john: this was a long day. lemonis: that's the idea. amber: break you down. that's what we do. lemonis: how does this store do? mike: we're not hitting the numbers that we thought we would. lemonis: how much is the rent here?
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john: about $10,000 a month, where it's about $6,500 in seal beach. lemonis: when's your lease run out? mike: next month. john: next month. lemonis: did you bring your financials? john: we did. lemonis: let's sit down and go over 'em. john: okay. so this is tankfarm seal beach. lemonis: seal beach, $530,000, and the store made $16,000. you go to huntington, $539,000 in business. this store shows that it made 13 grand. very little return. anderson brothers. $1,742,000 of revenue. business made 155,000 bucks. between all the entities, $2.7 million in total revenue, $184,000 of profit, i think where this business has potential is largely in product development. okay, so here's what i want to do. my offer is $2 million, a million dollars in equity and a million dollars in a line of credit. mike: [ laughs ] john: i'm like, holy [bleep]
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lemonis: i'll tell you guys a funny story. it was like three days before i got married. john: yeah, we met your wife. lemonis: and my wife was sitting outside, and i can see her through the window along with alex the producer. amber: yeah. lemonis: when i made the first offer, i literally thought i saw her fall off of the flower base that she was sitting on. and i went outside, and alex and her were like, "what in god's name -- for some t-shirt business?" the million dollars of equity, i want 50% of the business for it, 50.001%. i like the idea of tankfarm, but i do not like the idea of the name on the building is the name on the product. ♪ john: could it be 33%, 33%, 33%? then we could have something -- lemonis: it could be. whether it's 33% or 50.1%, i'm going to have full control. john: got it. lemonis: so, if 33%, 33%, and 33% is more comfortable for you, then great. i'll back my number down to a million. $500,000 and $500,000 instead of a million and a million
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is a better deal for me financially that $2 million for 50.01%. john: i think we should stick with the $2 million, and i think he should -- he should do it that way, and i think you and i should -- lemonis: unh-unh. that deal's off the table. my first offer is my best offer all the time. really? wait, right here. john: let's call it $1.5. lemonis: [ laughs ] aw, come on. mike: that's what he's good at. john: let's go a little bit more. let's get back to the first -- closer to the first deal. lemonis: i was looking outside. could you see me looking outside? amber: yeah, i can. john: come on, let's go -- let's go closer to the first deal that we should have done. lemonis: yeah. john: yes. [ laughter ] mike: you're all, "i did it. i sold him." lemonis: no. john: [ chuckles ] that sucks. [ laughs ] "that sucks." mike: "that sucks." lemonis: that was one of the more fun negotiations we've had. amber: yeah, it was, definitely was. john: this is all wrong if this is all we have. that corner's wrong -- mike: no, but we have lots of pieces -- candi: i think that's perfect.
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john: what we have here isn't working. mike: i should have told john, just, "you got to leave, take a coffee break." lemonis: i wouldn't have let him take a coffee break. mike: yeah, that's a good point. lemonis: my final offe goodbgoodbye fred. [ toilet flushing ] what if he gets hungry? kohler revolution 360 with continuousclean. stays clean five times longer. it's okay, dad. only from kohler. people know aflac... aflac! ...but not what they do. so we're answering their questions. aflac is auto insurance, right?
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[ laughter ] john: "it's gonna get worse." mike: it was like, after two hours, you're like, "let's get up and walk." i'm like, "no, we're not going to walk anymore!" john: okay. you got a deal, marcus. lemonis: okay. what do you think your brother would say right now? john: he'd be giving you a high five, and he'd be saying, "good job, guys." mike: [ voice breaking ] no, he -- [ clears throat, sniffles ] ♪ he'd be very, very stoked for us right now. john: thank you. lemonis: okay, guys. john: thank you, partner. lemonis: you got it. john: that was awesome. lemonis: alright, guys. ♪ we made a deal for me to invest a million dollars. there isn't really anybody out there creating men's fun, cool, trendy things. and when there are, they do really well. are the two retail stores profitable? andy: no, sir. mike: our lease is up in huntington beach. lemonis: that store's closing, unfortunately, no matter what. ♪ mike: this is a client.
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john: it's a pissed client. mike: and people ask, "did that really happen?" i'm like, unfortunately, yes. amber: you can't plan that. you can't produce that. mike: i sent to the printer a mix-up on the art. it still looks cool, but i was like, oh, my -- 440 shirts printed. amber: what was going through your head? mike: i was pretty stressed about it, 'cause it's embarrassing, obviously, 'cause i approve everything. no problem, you know, going back, but -- john: hey, mariana, this is john. mike: wait, let's -- john: look. so real quick -- fully should have let you handle that, 100%. what i was hoping is that you could take these shirts. it's hard to even see the difference. you could take these shirts at a small discount. mariana: no, the palm tree's not done right, either. mike: yeah, there's two things. we're going to fix it. not a problem. mariana: okay, awesome. mike: awesome. thanks, mariana. we'll talk to you soon. ohh, it's freakin' painful to watch. john: just reprint the shirts 'cause they're wrong. lemonis: why are you involved in his situation? if he made the mistake, whatever it is, he was working on it. john: i felt like he wasn't going to give her an option of, like, "hey, do you want these at a discount price?"
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that's all. i cringe a little bit sometimes. i'm like, "oh, i should have just shut up. mike: when you interrupt, it's like you don't trust me. if i trust you, then i shouldn't -- then i won't interrupt. john: well, i don't, not anymore. both: you just did. [ laughter ] john: that -- aw, come on. mike: i'm joking. john: geez. lemonis: okay, play. john: marcus, we took what you said to heart about creating different brands, and so we did outsiders, and we did some research. lemonis: does anybody have it trademarked? john: no. so we actually call it the outsider collection. it's great. it's not motorcycles and switchblades. it's going outside and being outside. lemonis: it's okay if it's motorcycles and switchblades, though. john: it'd be cooler. it's get outside. let's go do something. lemonis: i think it's spectacular. pause. i don't think they ever knew this, but we were trying to actually get guys from the "outsider" movie to the grand opening. amber: we were. we were. lemonis: how hard did we work? john: that would have been cool. amber: hard. ♪
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lemonis: hey, john and mike. john: yeah? lemonis: i hate to say this to you, but your whole store... could be right here. mike: the fact that you just figure that out like that, it, like, seems so freaking obvious, and we never -- would never have thought of doing that. lemonis: yeah, but in fairness, the advantage that i have is that i don't work there every day. if you went into somebody else's business, you could do the exact same thing. mike: well, we do it in a way with the apparel for companies. lemonis: yeah. let's get everything that's tankfarm to the front. let's merch it the right way. let's get some extra help. can your wife come over and help? mike: yeah. lemonis: let's call her and just see if they can come just help for 10 minutes. mike: got it. lemonis: alright? mike: yeah, cool. you're all, "uh-oh." lemonis: john's like, "wait, what? who's coming over now?" i remember the producers that were there were like, "why are you bringing his wife over?" i was like, "just -- hold on, i got this." mike: well, yeah. you saw her store. you liked that. lemonis: well, and i saw his reaction.
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mike: oh, yeah. john: you're like, "this is really going to get john." mike: [ laughs, hisses ] lemonis: okay, here's the deal. this yellow line, can't cross it. if you can't fit it in the front of the store and it doesn't turn, it doesn't stay. mike: we kept that line, too. john: that's where the glass doors are. lemonis: we want you guys to help john re-merchandise the front area. we would love your ideas because your store's perfectly merchandised. do your thing. candi: we have less space. we need to make it feel really, like, maximizing, you know, but set the floor plan, and then merchandise. john: no, no, andy -- let andy do this part, and then we'll move things around, but let andy help you. mike: i should have -- i should have told john, just -- "you got to leave, take a coffee break. just see what would happen." lemonis: i wouldn't have let him take a coffee break. mike: yeah, that's a good point. lemonis: well, actually, let's do this. i'm going to take you out of the equation for just a second. let her provide the direction. mike: you're all, "what? what?" john: "what are you doing?" mike: "what's happening?" [ laughter ] mike: where do you want the cash wrap? candi: i would do it right at the end, way over here. john: i'm like, "are you crazy?" candi: yeah, because i don't want to lose this space. door.
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john: i wouldn't put a cash wrap here. amber: john, your face right now. you're like -- mike: [ laughs ] candi: let us, like, play with it, and then we'll see, 'cause it's so hard. we're going to put your bread and butter in the middle. john: i actually don't agree with that. i think we should do all the t-shirt walls 'cause we sell tons of t-shirts. candi: i know, but you want them to buy the flannel and the t-shirt. john: this is all wrong if this is all we have. that corner's wrong -- candi: i think that's perfect. i don't think there's anything wrong with that. lemonis: i think i was even laughing to myself. amber: you were. mike: john, calm -- slow down. john: mike, i'm not upset. mike: you're not -- like, let's have a conversation. john: i'm not upset, but what we have here isn't working. we need to get rid of these. candi: i promise you we're gonna make it work, though. i envision it. it's gonna look good. john: you're all, "come on, man, just chill out." mike: i'm like, "please, please, just listen to my wife, please." john: "just go with it." i know. amber: [ laughs ] john: sorry now. sorry, everybody. john: you want to talk real, let's talk real. you gotta look at the things that you're being lazy on. mike was pretty lackadaisical. mike: i don't think you did as much as you thought you did.
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we need to get rid of these. [ quietly ] "shut up." mike: i'm like [quietly] "please." i was a little too nice. john: okay, let's -- let's play legos and redo it tomorrow. i told you this is the part i didn't want. lemonis: all right. john, i'm gonna just have a moment of truth. maybe they have a better way that we haven't thought about.
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john: we -- i don't think we need their help. ♪ mike: ooh, look at that look. amber: john, how hard were these change for you? were you very emotionally attached? john: just too much. mike: i was happy. i'm like, "sweet. change this thing up." john: i think it was just overall just a lot of changes and just so much at one time, all like right in a row. mike: close the store. shrink the store. change the name. john: just everything. and i just -- i'm pretty sentimental guy. when i like something, i like it a lot. lemonis: it's okay. it's called pride of authorship. usually makes people go bankrupt, but it's fine. i mean, if you like it -- john: no, i've learned. i've learned my lesson. lemonis: okay. ♪ today i'm taking the brothers to lucille's, which is one of the biggest regional barbeque places in all of california. if the company's going to really start expanding the number of businesses that it designs and manufactures product for, well, this is a great one to start with. john: this is mike's favorite part. mike: [ sarcastically ] yeah, this is awesome. john: i wanted to show you some of the artwork
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that mike and our team put together. brad: great. mike: this has a really cool music motif here. what about doing, like, rhythm, blues, and barbeque? john: because your -- your logo pops out here, i said, "why don't you make that a guitar?" ashley: we might want to spell "barbeque" correctly, though. john: you know, mike did this earlier. mike: dang it! john: "barbara"? what does it say? lemonis: look, i love you, mike, but you whiffed that one. i mean, it wasn't like you misspelled "onomatopoeia." you misspelled "barbeque" at a barbeque restaurant. pause. do you guys still do business with them today? john: they're doing four to five times... mike: more. john: ...what they did back then. amber: wow. lemonis: and you spelled everything okay? john: mike, he did a good job. good job, mike. mike: yes. i started using spellcheck. i didn't know it existed before. someone told me. i'm like -- lemonis: thanks, bill gates. mike: yeah. ashley: okay, this one, i don't like, mostly because we're trying to move away from this pig. it's too aggressive. john: got it. and how about rhythm, blues, and barbeque? i just thought that was really a great tag line and a lot of fun. brad: i really like this one. ashley: i like it, too.
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brad: it's eye-catching. it's got the spirit of lucille's kind of in the design. john: sounds good. mike: so we'll put that together for you. that does well. lemonis: it sells? john: yeah, it sells well. mike: $20,000 order in every couple of month. john: pretty good. versus one t-shirt a month. ♪ lemonis: what's up, guys? john: what's up? in order for them to really expand their horizons and create new lines and diversify the product offering, i'm taking these guys to a cut-and-sew factory. how are you? i'm marcus. robby: pretty good. nice to meet you. lemonis: nice to meet you. robby: so here, we do cutting, pattern making, design, development, production. everything mostly we do is u.s. cotton. john: it's really nice quality. lemonis: do you have different price-point shirts here? robby: of course. lemonis: can you bring us three levels? robby: sure. lemonis: good, better, best model. the key behind the good, better, best model is to really explore all avenues of revenue in all price points. in the good category, we're looking for entry-level price points, maybe something that's under the $39 range. in the better category, you're going to try to stay under $55, $60.
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and above that, the best category, you're going to stay under $80, maybe even $100, capturing all of the available market. so, who is the outsiders for? mike: what is more elevated? tankfarm or this? john: and i would say that outsiders would be the elevated brand. lemonis: that's the best. john: that's the best. lemonis: what's the better? john: the better would be tankfarm, like this. lemonis: and what's the good? mike: we need to develop a new -- something like grit and gravel. lemonis: i still like that name. you want to go to another meeting and you want to have a chance? i want you to make the presentation. john: uh-oh. lemonis: john, hang on. mike, i know you're just as capable even though maybe not everybody else thinks that. mike: he doesn't realize that certain things come down to respect. it's like you saying, "i don't trust you. i don't resp--" and it's like -- you want to be my boss sometimes, where i'm like, "dude, we're partners." john: no, you want to talk real, let's talk real. you gotta look at the things that you're being lazy on. 'cause i'm like, "hey, man, i'm gonna spend
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$3,000 on shoes, come look." and you did not care. mike: i did look sometimes. you sometimes act like you know best. i'm like, i should have just been a little more involved. and maybe the stores would have actually made more money. john: so it's all my fault the stores didn't make as much money. if you would have done it... mike: no, if i would have helped. john: and i asked you to help me, and you didn't do -- mike: no, what i'm trying to say is -- john: you're saying two separate things. mike: no, what i'm trying to say is -- john: whatever, dude. you're trying to, like, push it off. mike: no, john, come on. john: oh, my gosh, man. you know, mike was pretty lackadaisical in that area. and you were disconnected to a big part of the work. mike: mm, i don't think you did as much as you thought you did. john: come on. jackie: john turned around and told us, "you need to work harder to, like, earn your keep." john: she quit. mike: what do you do when you have employees that maybe aren't the right fit? lemonis: let mike handle them. amber: [ laughs ] john: now, i go, "be my guest."
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mike: i don't think you did as much as you thought you did (burke) at farmers insurance, we've seen almost everything, so we know how to cover almost anything. even a "three-ring fender bender." (clown 1) sorry about that... (clown 2) apologies. (clown 1) ...didn't mean it. (clown 3) whoops. (stilts) sorry! (clowns) we're sorry! (scary) hey, we're sorry! [man screams] [scary screams] (burke) quite the circus. but we covered it. at farmers, we know a thing or two because we've seen a thing or two. ♪ we are farmers. bum-pa-dum, bum-bum-bum-bum ♪
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and your employees closer than ever. our network is resilient. our people are strong. our job is to keep your business connected . it's what we've always done. it's what we'll always do. goodbgoodbye fred. [ toilet flushing ] what if he gets hungry? kohler revolution 360 with continuousclean. stays clean five times longer. it's okay, dad. only from kohler.
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and they need all this stuff, and then he'll do something that really he shouldn't be spending his time on. i'm like, "hey, mike, this is really important." he'll push it off to the last minute. mike: i have so much creativity to give. i just can't give it to one company. yeah, i... i can get distracted. lemonis: i'm not sure we resolved anything, but that was fun to watch. play. you both have responsibility in mistakes. he thinks you're lazy, and you think he's controlling. what does matter is that you guys lost one brother. it broke both of your hearts. it changed your business. you guys don't want to lose each other. get you [bleep] together and figure out how to coexist and have mutual respect, because the last thing you want to do is wake up one day and have more regret. mike: that's true. that's true. lemonis: okay? alright. john: can i pause it? so, i feel that, at that time, we were really at our bottom as brothers and as friends. but never been better now. mike: pretty insane. john: it's, like, awesome. amber: do you think the show helped you? would you be in the same place you are in today?
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john: no question. mike: it changed everything. john: you, man. lemonis: not me. the experience. john: but you brought it in. lemonis: i'm just the guide. mike: you're the guide. that's for sure. lemonis: it's been a couple of weeks since we started construction on the seal beach location, and so i wanted to drop in and see how much progress they're making. hi. how are you? you guys excited about the new space? and then you guys will each have your own room. you don't have to be bunkmates. jackie: yeah. lemonis: anything happen since i was here? they were like, "yeah, we're already quitting." jackie: well, after you guys were getting ready to head out, john turned around and told us, "you need to work harder to, like, earn your keep." john: that's not true. amy: he's just feeling a little bit out of control and so, therefore, he's, like, micromanaging all of us. mike: that's -- that's true. jackie: if i had another job opportunity, i would take it. john: she quit. mike: and that's fine. john: there's just too much going on. mike: also, what do you do when you have employees that maybe aren't the right fit? lemonis: let mike handle them. john: yeah, sure. honestly, i --
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amber: [ laughs ] john: now, i go, "be my guest." lemonis: i talked to the ladies, and we need to talk with them. john: okay, let's do it. lemonis: i really feel that, in this moment, it isn't that john is a bad person or doesn't like his employees, but he doesn't know how to have awareness about how his actions or his words are affecting other people. mike: the floor is yours. amy: you could tell, like, all the other times that he's been here, you're putting on a show. like, you're trying to just protect yourself, and you don't want to look like an idiot. john: amy? mike: she's not done. she'll let you know when she's done. john: okay. amy: i mean, i've never had a boss mock me to my face, behind my back, to other employees. john: can i say "time" on this? mike: i should have actually interrupted on that one, because she coughed funny one time, and you copied her cough. john: that's the only time i mocked her. mike: i know. i know. john: 'cause she did it funny. it was funny, you know? mike: and i held back my laugh, but i'm like -- john: you did laugh, 'cause it was hilarious.
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mike: no, i didn't laugh, i held it in, 'cause i'm like, "don't do that, dude." john: but it was funny, and i was wrong. i shouldn't have mocked her. mike: but we did have a lot of good times, too, but towards the end, it was getting pretty stressful. john: it was getting stressful. lemonis: [ laughs ] amber: you were mocking coughs. john: i mocked. lemonis: you're like in stereo. play. amber: "i mocked." amy: it's so rude, like, it's just mind-blowing sometimes. john: "it's mind-blowing." mike: don't -- dude, see? john: i mocked again. mike: you just did it. john: shoot. aaron: i am kind of with amy in where we can be a little bit more professional about some things that we do, little things like something that happened yesterday with a shirt color being off. instead of saying that they're being picky, you know, it's -- john: but i did -- hold on. i did say, "if they don't like it, just fix it." aaron: no, no. john: i don't want half the story. i just want you to tell the whole story. aaron: sure. lemonis: john, you don't have to go on, like, full drive, bro. mike: but, see, that kind of -- that energy right there, that kind of, like, negative energy,
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i haven't seen that for -- lemonis: two years? mike: probably two years, since we made all these changes. john: thanks, man. i feel totally different. straight-up. aaron, the guy you're, you're seeing there, he's my right hand. he's amazing. the team we have, it's special, and we want to keep it special. amber: real quick, you are really good to your employees, you guys, right? you've taken employees to disneyland. you've given random bonuses. john: literally, once a month, as a team, we all go to lunch. and we had a really great month. we're like, "you know what, guys? everyone deserves a bonus." we do beer 30 couple of times a week. amber: beer 30? i'll come down for beer 30. lemonis: what's beer 30? john: it's like a lot of free beer. mike: 3:30 on a friday is beer 30. lemonis: well, what's the 30? mike: ah, it's what they say. instead of 3:30, it's beer 30. lemonis: you ever heard of that? amber: yeah. lemonis: has anybody else ever heard of that? john: i think the rest of the country heard about it. lemonis: except me? john: yeah. mike: come on. john: i'm the one getting, like, pummeled. lemonis: no, you're not. john: i feel i'm getting crapped on, you know -- amy: it's hard to get crapped on, too. lemonis: i feel like what you did
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is you took some of these and just changed the label. you did. mike: true. john: we only had two weeks. lemonis: it feels like you rushed this. he's like "[bleep] it didn't work." for exclusives, extras, and business advice, visit... goodbgoodbye fred. [ toilet flushing ] what if he gets hungry? kohler revolution 360 with continuousclean. stays clean five times longer.
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amy: it's hard to get crapped on, too. lemonis: john, when you're, you know, crusty, it throws us all off. it throws me off. and so all i'm asking is that we just have respect. john: i mean, i agree, all the way. lemonis: and you're a loving guy. john: i try to be. lemonis: you are. john: thank you. jackie, i'm sorry for making you feel bad or making you feel like you didn't count. so, you count. i'm sorry. jackie: thank you. john: amy... lemonis: you can't even say it with a straight face. john: ...i'm sorry. i want you to feel respected and to know that i care for you. i'm sorry, for real.
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are we good? amy: yeah. lemonis: we're good if the words turn into actions. but we need to feel it, or we're not going to work here. me included. john: okay. ♪ lemonis: while the team puts the final touches on the seal beach store, mike and john are heads down designing new products and expanding their existing ones. john: it's nice. mike: it's kind of cool. ♪ john: ta-da! [ laughs ] mike: hey, marcus. good to see you. john: marcus. lemonis: how you doing, buddy? john: good. good to see you. lemonis: i think it looks spectacular. john: thank you. lemonis: and the best of the best of the best is here. it looks good, guys. i think we undersold how different the store was. amber: yeah. john: you did say to me, you're like, "i could work out of here." lemonis: and it took a lot longer to do that renovation than it was supposed to. mike: i think we said two weeks,
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and it took -- lemonis: two months. john: it was hard. mike: two months, yeah. amber: and how much did it cost? john: about $90,000. mike: it was about $80,000, $90,000, yeah. amber: over $100,000? $120,00? mike: yeah, that's about right. lemonis: $137,000. mike: and we're surprised that you weren't facetiming us like, "what's it look like? let me see the plan." you just said, "go for it." amber: he doesn't always do that. lemonis: i never do that. mike: that's why i was surprised. and it took a long time, but it came out awesome. lemonis: yeah, you boned our show, but that's fine. mike: that tape line -- john: this is literally where you put the tape. it was exactly right here. mike: that's where the tape was. lemonis: you can see that if i pushed you guys hard enough, this is what we ended up with. mike: yeah. lemonis: i see absolute perfect execution. now there's the proper meeting space, the proper design space, and any potential client that comes in knows that these guys are for real. john: good, better, best. lemonis: why don't you guys take me through as if i was buying? john: grit and gravel. all hand drawn, all custom. lemonis: the quality still feels good, though.
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john: yeah, nice. lemonis: for an $18 t-shirt, it's not bad. mike: exactly right. lemonis: so why don't you guys take me through the better? can i see a flannel? john: great hand. lemonis: the quality is fantastic. john: goes. lemonis: plaid's not my thing, though. who is the best model? john: the elevated brand, outsiders. that's the best. lemonis: they did a great job with the design and the choices of fabric. it was really spot-on, but there's one issue i'm noticing. this outsiders, it feels like you're swinging for something, and i don't know what it is. john: like better detailing. lemonis: i feel like what you did is you took some of these and just changed the label. you did. mike: true. john: we only had two weeks. lemonis: like on this. did this used to be in tankfarm? john: this used to be in tankfarm. lemonis: it feels like you rushed this. he's like, "[bleep] it didn't work." john: go, go. awesome. all: oh, wow. candi: i love it. rick: marcus, that's incredible. that's cool. candi: that's so cool. mike: it's awesome.
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lemonis: it feels like you rushed this. at t-mobile, we know that connection is more important than ever. we've increased network capacity, given more access to unlimited data. and provided free data for schools and students. visit t-mobile.com to learn more. you can also manage your account, make payments, and find t-mobile stores that are open near you. we've been asking, are you with us? but we want you to know, we're with you. businesses are closing. living rooms are now offices and schools. our world is suddenly different. but one thing stays the same. sate farm is there. to any of our customers currently facing financial burdens, call your state farm agent because we're here to help make this "new" normal,
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mike: yeah, yeah, please. john: yeah, yeah. lemonis: are you mom? mary: i am. lemonis: you have good boys. she's like, "and if they're not, you tell me, and i will whip their ass." john: she will. lemonis: when we first did our deal, the two of them told me that it's a family business. she's awesome. as you can see, it's a family business. candi: yeah. lemonis: as a family, i think we should open the store. mary: okay. candi: austin, go for it. lemonis: he's so cute. mary: austin! wow. mike: we added more lights in the interior. john: yeah, it's even better. mary: wow. rick: it looks cool, though. girl: he said small. lemonis: it's a lot smaller, right? rick: it's a lot smaller. mike: but the craziest thing, though, is even the small little store that we have right now actually does similar numbers that big old store. john: pretty much the same amount. lemonis: oh, it's ironic. john: yeah. candi: doesn't it look good? rick: great design. rick: this looks incredibly professional. lemonis: john and mike, i know that i gave you the task to come up with three brands. but i didn't want to task you guys with having to do the fourth. where it goes from here is gonna be up to you.
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john: oh, wow. candi: that's cool. mike: [ voice breaking ] that's cool. it's great. that's awesome. that's awesome. mary: it's beautiful. john: wow. mike: yeah, that got us right there. john: yeah. lemonis: you should print it and just have that one shirt even if it never -- even if it never sells. john: yeah. mike: it's awesome. candi: wow, that's so cool. mary: it's really amazing. mary: i love it. let me see that one. lemonis: we want to have the fourth line be a t-shirt line called ricky's. rick: marcus, that's incredible. theresa: [ sniffles ] lemonis: i was trying to come up with something that felt like a record label or something. john: oh, i love it. i love it. lemonis: his legacy will live forever. rick: he's here. he's here. john: thank you, marcus. that's really cool, man. candi: thank you. john: thank you. lemonis: with the new product lines, this business should see at least a 50% increase over the next 12 to 24 months. which is what happened. actually 100%. mike: yeah. lemonis: more importantly, john and mike
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seem to have really repaired their relationship. there's no question that they're a work in progress -- john in particular. [ laughter ] but if they continue to listen to each other and respect their staff, with this business, the sky's the limit. mike: crazy. wow. lemonis: let's start with the numbers real quick. john: thank you, marcus. lemonis: so, 2018, you did how much business? john: anderson did $2.5 million. lemonis: okay. 2019? john: $4.5. mike: $4.5. lemonis: so, what are you going to do this year, 2020? mike: thinking $6.5. amber: million? lemonis: no, you'll do more than that. they're going to do about $8 million, by the way, and they like to be modest. i think your secret sauce is humility. even as your business continues to grow, i actually think you becomore humble. john: you know what? my wife tells me, like, "you're changing in good ways." mike: no, the amount of times my brother tells me, "man, i'm so grateful. i'm so grateful." i'm like, "okay, you told me yesterday. i know."
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but that's true. i mean, it kind of feels like ricky's pulling strings, too. john: totally. well, without the sweet -- sorry. without the sour, then there's, you know -- how do i say this? without the sweet, there's no -- you know what i'm trying to say, right? mike: yeah. lemonis: that's kind of how i feel about you guys, because in all the businesses that i've done, there's been -- you know, i've had my share of sours. but when i get the good ones, they make the bad ones seem like they don't matter. and you guys are definitely in the top three. john: wow. mike: being a fan of the show and watching it, you know, it's cheesy to say, you know, "dream come true." but it's like idolizing someone like you, and people go, "hey, what's it like working with marcus?" i'm like, "the real deal, right here." lemonis: thank you, brother. john: it's crazy. it's like we woke up in some new dream world where everything works. lemonis: you better sell a lot of damn shirts, 'cause you got five kids who are going to go to college. but you also have ricky's kids that you're going to help. john: yes, we do. lemonis: so that's a lot of kids to be responsible for.
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john: that's for sure. ricky: ♪ i'll always look out for you ♪ ♪ i'll always look out for you ♪ lemonis: tonight on at a family furniture business with nearly 40 years of history... ana: we have great people, we have great clients, we do a great product. lemonis: ...but the future is growing darker by the day. ana: february, march, april -- we almost couldn't make payroll. lemonis: their margins are paper-thin. what jobs are you making money on, 'cause you're not making money on this. their process is non-existent. lemonis: yeah, really bad. steve: they didn't sand it properly. lemonis: and the founder's poor health... ana: he was diagnosed with parkinson's a couple years ago. lemonis: ...has his daughter living in fear. ana: i don't want to see my dad one day just drop dead. lemonis: if i can't help them build a more stable foundation, this great american success story could come to an end.
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