but itoo lks very profitable. all: opa! [ cheers and applause ] kathleen: opa! jay: how are you, my friend? jay: good to see you. welcome to the garage. lemonis: good to see you. this is awesome. jay: well, thanks, thanks. ♪ lemonis: so, tonight, we're gonna give you a very special inside look at, actually, my first episode ever almost seven years ago. but we're with a friend of mine in his -- what would you call this? a compound? jay: a garage, not a compound. that'll sound bin laden. lemonis: oh, by the way, first of all, don't call this a garage. jay: it's a garage. it's jay leno's garage. lemonis: right, but my garage has two cars in it, and i shut the garage door. jay: well, that's your garage. my garage has 189 cars in it, and i shut the door. it's a big garage. it's still a garage. lemonis: okay.

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... you see? it 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 gonna give you an inside look at an episode from season one called "car cash." you probably are one of the better car guys i've ever seen, but you are one of the worst managers of people that i've ever seen. jay: you know he's not one of the better car people you've ever seen, which is the right thing to say, which is what i would say, too. you know, you're one of the funniest guys i've ever seen, it's just you don't get any laughs, you know? you know what i'm saying? lemonis: over the next hour, i'm gonna take you

behind the scenes to share with you what i was actually thinking during filming... one of the contractors actually came over and put jon up against the wall. jay: oh, is that right? lemonis: he said, "you can't talk to your brother that way". jon: that's a terrible idea. are you out of your mind? it's a [bleep] waste of time. you're totally out of line. [bleep] your décor, man! lemonis: ...share some secrets... these people that are really in trouble can't get out of their own way. jon: this isn't chicago. this is new york city. this is my [bleep] town. don't tell me about my guys. lemonis: you don't know anything, but you got till the end of the day. ...and give you an honest assessment of my decisions. if you can't tell him what's wrong, then you shouldn't be in business together. my name is marcus lemonis, and this is an inside look at "the profit". ♪ jay: that is a doble steam car. that is the greatest steam car ever invented. that one over there belonged to howard hughes. lemonis: everything in here is pretty old, huh? jay: including us, yeah. lemonis: no, not me. what do you mean, "us"? not me.

jay: okay, me. lemonis: it's beautiful, jay, in the automotive world. so, i'm a big fan of "jay leno's garage," and that's part of the reason why i wanted you here today, is to join us. amber: and, before we start, jay, how did your love of cars start? jay: well, i mean, i grew up in new england, where your dad would teach you to fix things, you'd watch your dad, and then you get your first tool set when you're, you know, 6, 7, 8, something, whatever it might be. plus, we went places in reality. i mean, now kids have a cellphone. so you don't have to go places. lemonis: to go anywhere, right. jay: yeah, literally, kids sit in their room, "hey, susan, send me a naked picture". okay, great. and a naked picture. in my day, we had to go to their house, somehow convince the girl to take her clothes off, take the picture, go two towns over to a drugstore where they didn't know your parents, get the picture developed, so it's just different. amber: [ laughing ] so that's where your love of cars started? jay: that's where my love of cars came from. lemonis: we're gonna go ahead and start the episode on that note. amber: why don't we roll? lemonis: 35 years ago, bruce barron dreamt up car cash, a business that allows you to sell a used car for cash

without all the hassle, and bruce brought his sons, jonathan and andrew, into the company. andrew: pleased to meet you. lemonis: i've been buying and selling cars since i was a teenager, and i know this business. and with over 50 million new and used cars sold in this country last year, well, i see big opportunity with the car cash brand and i want a piece of it. it's funny to watch that for me. i think about this particular show and how scary it was for me to do this for the first time. and the episode tonight is the first episode. jay: well, i love the suit you have on. i haven't seen that. it looks like one of those '69 -- with two pairs of pants? okay, that's great. lemonis: i've dropped the suit. [ dog barking ] hello? andrew: oh, hi. lemonis: hey! how are you? andrew: hi, marcus. lemonis: i'm marcus. andrew: hi, i'm andrew. lemonis: andrew. both: nice to meet you. andrew: this is murphy. lemonis: where's your brother at? andrew: he's right in here. lemonis: good morning. jon: marcus. lemonis: i'm marcus. jon: it's a real pleasure. thank you so much. lemonis: nice to meet you. so, i want to get a little, quick tour. jon: right here, we're in the buying office. when we buy the vehicles, we sit the customers here. this is where we negotiate all the deals. lemonis: jay, i want to make sure that you

and everybody else understands the basic premise behind the business. so, essentially, this business operated like a pawn shop. they did not sell cars. you would only be able to seyour car. the goal for this business was, "how cheap can we buy somebody's car, and how much can we re-sell it to the wholesale market?" how many square feet do you have in total? jon: i think 4,500. lemonis: which is this garage and this? and that's it. jon: yeah, that's it. and we do have a small office upstairs, also. lemonis: what's the rent here a month? 10 grand? jon: oh, well over $20,000. almost $30,000 a month. lemonis: almost $30,000? jon: yeah. lemonis: space is very expensive in manhattan. having a large overhead, well, that puts a lot of pressure on a business. amber: marcus, how important is the visual appearance of a business like this? lemonis: i think, ultimately, what the customer wants is some level of confidence that where they're going into and they're dropping their car off is professional. and that's the biggest fear that people have when they sell their car. what's interesting is, is i look around your garage

and i look at the cleanliness of the floors or the cleanliness of the walls. essentially, what i was looking for the inside of that place to be, was that -- an indoor showroom. what's your biggest challenge today? jon: getting customers to come in. i also need working capital. i'm dangerously low on cash right now, which means i can't buy cars. lemonis: how much do you spend on advertising? jon: between $5,000 and $10,000 a week. lemonis: a week? and how many people actually come here a day? jon: you know, some days we get five, maybe 10 a day. lemonis: and what's your buying rate? how many are you buying? jon: we're probably closing like 80%. lemonis: what's typical margin on a car? jon: anything under $10,000. we have to make $500 on the car. lemonis: that's a slim margin. jon: it's a very slim margin. lemonis: the overhead at car cash is close to $100,000 a month. a month. and they buy about 80 cars with an average profit of $50,000 to $100,000, which means they're losing money every single month. my first impression is that the place looks tired and worn down. andrew: i would love to, you know, spruce up the place. lemonis: how about clean it with a mop?

andrew: the orange is a little dated. you know, i want bold, vivid colors. it's got to pop. jay: the orange, it's just too bula-bula. lemonis: too aggressive. jay: yeah, too aggressive. aggressive is the word. jon: i don't think so. i don't agree. the orange and black works because it's striking and it stands out, and the office is very inviting. lemonis: what office is inviting? jon: the buying office. no? lemonis: no. jay: well, right away, i can see the dynamic. i mean, the younger brother -- i guess he's younger. the one dressed as fredo. amber: [ laughs ] jay: i mean, he's got the hat on. i mean, i see where this episode is going. lemonis: you do? jay: and what's gonna happen. well, yeah, i assume that the younger brother is somewhat the creative artist, just doesn't want conflict. and the other brother seems to sell everything through conflict, you force that. lemonis: he's definitely the creative guy. lemonis: so, guys, i wanted to spend a little time, kind of, understanding the traffic that comes through here. i mean, obviously west 55th gets a ton of traffic. jon: it's a fantastic location.

we're basically the only outlet to the west side highway. so there are literally thousands of cars every day driving down 55th street. lemonis: so, what kind of advertising do you do? do you do radio advertising? jon: radio and web. lemonis: so you're in charge of marketing? andrew: for the most part. lemonis: you can already tell. and much to what you were saying is that the younger brother doesn't even feel comfortable voicing his opinion, he doesn't feel comfortable answering me. any question that i had, jon, who's the older brother, always took the lead. what do you mean, "for the most part"? andrew: well, with the radio, jon handles that. and -- lemonis: isn't that marketing? jon: this is -- yes. it's, sort of, a disconnect that jon and i have. lemonis: 50% of the business belongs to him, so my guess is that either you're not fighting for it or he's just not listening to you. one of the two's happening. jay: i just love the fact that the older brother is just -- i mean, i feel like i'm watching "death of a salesman" with willy loman here, you know? lemonis: pretty close. you have experience in advertising? andrew: yeah. lemonis: and what kind of things have you pitched to jon that he's just kiboshed, said no to?

andrew: i would have a fleet of cars that would drive around to do mobile appraisals that would be wrapped up in a car cash advertisement. it would be bright -- jay: but look at him! look, look. lemonis: he's like, "no". jay: hilarious. jon: we never did that before. it just seems so silly. lemonis: these are some good ideas. why aren't you fighting for it? andrew: you know, to be candid, there's only so many times you get kicked in the balls until you stop trying. lemonis: [ laughs ] lemonis: hey, how are you? steven: hey, how you doing? lemonis: marcus. steven: steven. both: nice to meet you. lemonis: is this your car? steven: no, no. we're wholesaling them. lemonis: wholesaling them? you buy cars from them? steven: yes. lemonis: how many do you buy a month? steven: 40 to 50, something around that number. lemonis: that's what you're buying? steven: yeah. lemonis: so, this guy would basically determine what the number was gonna be... ...and then tell him how much money they could make. and they couldn't figure out why they weren't making money. how often is he here? jon: my friend steven? all the time. he's actually a wholesaler. i sell most of my cars to him. lemonis: of course you do. the question that i have is that you're giving up the spread. what did you put on the car? jon: $8,000.

lemonis: what did steven pay for it? jon: $8,500. lemonis: this car will retail for what? $12,900? jon: i was gonna say $12,900. lemonis: they're gonna go somewhere else and make, between the time you buy to the time the final customer gets it, $4,000 to $5,000 on a car like that. whereas, you only make $500. that's too much money. that's the difference between making money and losing money. jon: i don't think so. i don't agree. because he puts very aggressive numbers on cars. lemonis: he's in it to make money. jon: he's in it to make money. but he was very close with my dad, also. he's like family. lemonis: he's like family. jay: oh, yeah. lemonis: wholesalers like steven and sold directly to dealers, i think there's an extra $1,000 to $2,000 a car. and when you buy 80 cars a month, that's $80,000. that's $960,000 a year without buying one more car. so, walk me through the process. jon: i scan the car into my software. it brings up numerical values on the car. and then, from there, i take a look around the car. yeah, something like this i can probably get $8,500 for. so i'm going from $8,000. lemonis: okay.

now the next step is to actually speak with the customer. lemonis: jon needs to definitely make more than $500 on average per car. jon: the book value is $8,200 on the car. i'd feel comfortable paying $8,000 for it. lemonis: you and i have a difference in philosophy on appraisal. i like the customer with me during the appraisal. i want the customer to know that what i'm doing is fair. if i take them around the car and i point out the defects with the car, the imperfections with the car. when these lights turn yellow, you can get this replaced. it costs 300-400 bucks. and when i give them a number that's lower than what they originally thought it was gonna be, their expectations are probably more in line. they're less surprised, and they feel like you're hiding less. i would rather ask these questions with them. when you leave somebody in the office, then you come back with the number, it seems like you set me up. jon: i don't agree. lemonis: jon and andrew are great guys. jay: it's your first line. "jon and andrew are great guys, but"... lemonis: they're nice guys! jay: you don't like the older guy. i can tell that. lemonis: i actually don't like him.

i like him as a person, but not as a business person. jay: they invite you in, and they're disappointed when you don't agree with them. "why don't you agree with me? my business is failing. it's not doing well. why don't you agree?" you know. amber: it's always ridiculous to us, though, when someone reaches out to marcus and then fights him. jay: but that's probably more the norm, isn't it? lemonis: less now than it used to be. this is very simple for me. i came here to make money, and i like the concept, but the concept has to grow. for me, this is about opening more locations and signing up licensees around the country. entrepreneurs can come here and see a prototype. any licensing deal that we do, you guys will share in a percentage of those profits without having to put up a dime or do a day's worth of work. that sound okay? jon: sounds great. i'm, like, blown away. lemonis: does he seem blown away to you? jay: yeah, blown away. lemonis: ...is that i have to be convinced that the prototype works. like andrew mentioned earlier, the place needs to be jazzed up. the other thing that needs to change is the relationship between the two of you.

do you feel underappreciated here? andrew: sometimes. because there's times where we don't talk, we don't communicate. lemonis: why is that? andrew: you know, i have a lot of ideas. i'm full of ideas. lemonis: and good ones, too. jon: i don't have time to discuss things for an hour. lemonis: if you guys can't communicate as business partners, you can't be in business together. if you can't tell him what's wrong, then you shouldn't be in business together. i asked him several times, "do you not want your brother in the business?", "no, i definitely want him in the business." he didn't. jay: i think he wants the brother indebted to him. i mean, this is shakespeare, isn't it? lemonis: it is. jay: it's the oldest story. the sibling rivalry, whatever it might be. the older brother, the younger brother. it's the oldest story in the world. andrew: he and i really don't, you know, "hang out" and... ♪ [ sniffles ]

♪ [ sniffles ] [ sighs ] i just want us to click. right now, it's not clicking. [ sighs ] lemonis: andrew is far more concerned about his relationship with his older brother and in getting accepted, and his brother knew it. and he just wanted acceptance. he just wanted to be in the family business. jay: i think he genuinely loves his brother and looks up to him and wonders why he doesn't get anything back in return. lemonis: coming up... jon: i would also like to ask for a line of credit. lemonis: what's the interest rate? jon: is 5% fair? lemonis: no. jay: suddenly, he went all michael corleone on him. "no, son. and i want you to pay".

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andrew: i just want us to click. right now it's not clicking. jon: yeah, and we're not clicking because when i come in here, i'm just so focused on trying to make money. lemonis: andrew, what are you thinking? andrew: i'll do anything to fix this business. i'm 100% committed to change. lemonis: is your brother committed to that? andrew: i can't answer that. only he can. jay: yes, he can. lemonis: he knows the answer is no. ...if he doesn't change, his business is gonna fail. so, the deal that i have has me writing you a check. so i'm willing to give you guys $200,000. it allows you to solve the debt that you have, it allows you to put some cash in the business

and bring things current, and it allows you a chance, in addition to that, to collect an annuity on the brand name and the website forever. pause. i want to explain the deal. i wanted to own the concept, and so when i looked at their business, i saw that they were short about $200,000 to clean up their debt, put a little cash in their jeans, and i was essentially buying the rights to the business. jay: but they didn't invent this concept. lemonis: the didn't invent it, but they were the closest to a well-packaged concept of it. and the fact that they had the 1-800-car-cash -- you literally dial the phone number, the fact that they had the website, the fact that they were in new york city and were buying a lot of cars. it was proof to me that the concept worked, and you'll find out later on that i don't know that they necessarily understood that. i'm gonna be very clear. i'm in charge for the next week. so what i say goes, which means you're not in control... at all.

jon: i'm a control freak. it's hard to let go of that. lemonis: we didn't notice. your business needs cash like -- jon: like, yesterday. lemonis: like, yesterday. jon: but we also need capital to buy cars. i don't know if $200,000 is gonna be enough. so i would also like to ask for a line of credit. lemonis: so how much is the line of credit you want? jon: okay. let's say, can we start with $300,000? lemonis: what's the interest rate you're gonna pay me? jon: is 5% fair? lemonis: no. you know what, jay, i was just thinking about what you had said about jon, and i think he was so off-putting to his brother, and my flexibility to make the deal work for him really was pretty watered down. you wonder how much the deal could have been better for him had he not been a bit of an ass about things. jay: right. suddenly, he went all michael corleone on him. [ imitating corleone ] "no, son. and i want you to pay". lemonis: i need 10% because it's unsecured. jon: well, it's unsecured, but you have to understand something -- we're giving you an opportunity to make millions and millions of dollars. lemonis: but i'm putting up all the money.

jon: you're putting up all the money, but you're putting up the money based on the idea our dad created. and it's his vision and his blood, sweat, and tears -- lemonis: okay, selling it. jon: ...the name brand that you're gonna make millions of dollars on. we're your flagship. you need us to be the most successful franchise that you have. if we're not your most successful one, then nobody's gonna buy in. amber: marcus, what do you think when someone pushes back on you like that? lemonis: i like it 'cause i want them to defend their position, and a lot of times, i'll actually throw a number out that i think is ridiculous, hoping and testing them to say, do they believe in their business, are they gonna fight for more, and are they gonna fight for the money after we're partners the same way? i'll split the baby with you at 8%. jon: how about 7 1/2%? lemonis: okay, we got a deal. so when you take my check for the next week, i'm 100% in charge, which means what i say goes. amber: for the next week, you're 100% in charge. lemonis: so, when we first started this show, i would tell people, "for the next week", because we had not been on television

and we didn't want to scare away applicants. when we got into season two, it's like, "i'm 100% in charge forever". jay: right, right. lemonis: do we have a deal? jon: i'm in. lemonis: do we have a deal? do you ever look at pictures of yourself on television 20 years ago and think, "what was i thinking?". jay: i think that last week on television. lemonis: my team shows up tomorrow and starts gutting this place, 'cause i wanted to get some ideas of what you'd like to see happen. andrew: if we could freshen up the -- maybe get a new awning. right, now we have this, sort of, an epoxy paint. i would love to do the entire garage in an epoxy paint. so that way, it's easy to clean. jon: that's a terrible idea. the sound of it when you walk on it is gonna sound like corduroy pants swishing together. absolutely not. lemonis: andrew's an equal owner in this business, and it's time he stood up to his brother. he should be free to do his job, and he needs to demand it. jon, do you ever listen to any of his ideas? jon: he's my brother and i love him, but i don't have time to listen to a lot of these ideas. lemonis: i'd like to hear some of his ideas. i mean, let's see what he has to say. andrew: there's marketing, there's advertising, and part of advertising is the radio.

jon: honestly, drew, this is like a broken record to me. i don't feel comfortable with it, i'm sorry. lemonis: andrew's supposed to be in charge of marketing and advertising, and car cash spends between $20,000 and $50,000 a month. most of that's spent on radio. now, jon won't let him control the radio. so, really, in the end, andrew's in charge of nothing. andrew: radio is really, really important. it's a way for us to connect with our customers. we need to learn how to communicate with them. jon: okay, i did all that, though, and i got us killer deals doing that. what are you gonna do differently? andrew: the creative. jon: okay, basically, you want to rest the single biggest cash-bringing option that we have, you want me to rest that in your hands, you want to write the copy, you want to handle the media-buying when you've never done it before? andrew: yep. jon: are you out of your mind? it's a [bleep] waste of time. lemonis: look, jon. i don't like the way you talk to your brother. for you, you probably are one of the better car guys i've ever seen, but you are one of the worst managers of people that i've ever seen. maybe there's excuses and there's reasons and there's all these other things,

but i think one of the things that i have to get convinced of is that you can actually manage people. i'm not convinced you can. jay: i like how you play to him. you know he's not one of the better car people you ever seen. he's probably one of the worst. lemonis: worst. jay: but to keep him from exploding, you say that, which is the right thing to say, which is what i would say, too. you know, you're one of the funniest guys i've ever seen, it's just you don't get any laughs, you know? lemonis: [ laughs ] jay: you know what i'm saying? lemonis: how different is delivering news in business from delivering a joke? jay: well, the economy of words is the best way to get it done. the shorter a joke is, the funnier it is. so the quicker you convey the business news, the quicker it's over and the quicker you should move on to the next thing. these people go, "you know, how can i say this? i don't want to -- okay." get to the point. just say it, you know. lemonis: get to the punchline. jay: yeah, you've got to speak in a way that makes you easily understood. lemonis: coming up... jon: did you order $7,500 worth of new furniture for the office? andrew: yeah. jon: there's no [bleep] way you're gonna spend $7,500

on furniture for the office. lemonis: one of the contractors actually came over and put jon up against the wall. jay: wow. lemonis: if you're looking to take your business to the next level, log on to theprofitcasting.com.

do you ever sell cars? jay: one day, they made me a salesman. this older woman came in. she was a school teacher. she had her life savings, and she wanted to buy a new mercedes because, "they never break, right?" "no, they are reliable." "but they never need any work or anything, do they?" and my boss is going -- [ muttering ] and i just -- lemonis: couldn't lie. jay: i couldn't do this to the lady. i said, "how about you just get a chevy or something?" lemonis: and she'd be fine. jay: anyway, the boss says, "you're not a salesman". alright, i went back to new car after that. lemonis: people always ask me, "if i lost everything that i have today, what would i do?" and my answer is, "i would go back and sell cars." because i know i can do it. jay: right, right. lemonis: i know i can do enough to pay my bills and eat. jay: right, right. ♪ man: let's go, guys!

♪ lemonis: today's a big day. this whole place is getting redone. pause. 48 hours, no permit, new york city. jay: no, you had no permits at all? lemonis: permits? you know this better than anybody. when you're making a show, there's not time. and so i brought in a crew. i timed it knowing that i had to start on a friday night when the city department was gone, and i had to be done by monday morning at 5:00 a.m. that was, like, my own theory. i wasn't sure that was right, but it sounded right. amber: and remember, marcus, we were staying down the street in a hotel, and we stopped by, it was, like, 11:00 at night. lemonis: right here where we're standing is where the offices were, right here. the contractors and paint everywhere and construction everywhere and $100,000 gone. jay: wow. lemonis: play. i would say i'm gonna end up spending way over $300,000 to get this way. maybe it was $300,000. but when licensees come here, i need to know we are absolutely putting our best foot forward. so let's go inside and take a look. ♪

jon: wow. lemonis: andrew, come here, buddy. how frustrated have you been that your brother won't let you do stuff? andrew: pretty frustrated. lemonis: let me see it. please hit that wall. hit it like you mean it, though. harder! andrew: you guys do this all day? ♪ jon: hey, hold up for a second. andrew: what's up? jon: did you order $7,500 worth of new furniture for the office? andrew: yeah. jon: to say i'm pissed would be an understatement. you should never have spent that money without asking me because i'm controlling the budget. you're totally out of line. what's your explanation? andrew: the furniture that we have now does not match the décor of the new way -- jon: oh, [bleep] your décor, man!

there's no [bleep] way you're gonna spend $7,500 on furniture for the office! andrew: i get that. i understand why you're upset. lemonis: pause. there's a little more to that story. i don't even think we shot it, but one of the contractors actually came over and put jon up against the wall, and said, "you can't talk to your brother that way". and it was a good reality check for him to realize that it wasn't about making a television show. it's about just treating people right. jay: right, yeah. lemonis: play. jon: next time you want to make a $7,500 purchase, you better have come to me first. that's number one. number two, you better call this furniture company and cancel the order. just had it, man. i'm done with this conversation. jay: what i find fascinating, he talks to his brother like he's 7. lemonis: come here for a second. why was your brother yelling at you? is it okay with you that he does that to you? andrew: no, of course it's not okay. lemonis: then why do you allow it? andrew: there's a certain level that he's like -- he's my older brother, and i listen to him. lemonis: hey, jon? jon: yes.

lemonis: why am i hearing from some of the painters that you were yelling at your brother earlier? jon: got upset because he okayed to purchase furniture. lemonis: but i'm paying for the [bleep] furniture. i'm paying for it. how much do you think i've spent? jon: a quarter of a million dollars. lemonis: more. how much was he asking you to spend? jon: i don't know. a couple thousand dollars. lemonis: okay, so your brother goes out on a limb to approve what you think is going to be a couple thousand dollars, and you lose your mind? it's not about the furniture, but it's about showing some respect to him. you're more concerned about this than you are him. jon: that's not true. lemonis: then why do you treat him that way? jon: it was one situation -- lemonis: i know, jon. jon: but, marcus, it was -- lemonis: jon, he's a human being. forget about the fact that he's your brother. we shouldn't be talking to people that way. jay: to me, you always get more flies with honey, i always find. i never quite got the anger 'cause the only trouble with anger is even when they're successful, they're still mad. people make mistakes. that's fine with me. as long as it's not a mistake done out of spitefulness. lemonis: just don't be mean. jay: yeah, that was, sort of, the thing of "the tonight show." lemonis: i've been very impressed with all your ideas.

you're willing to take some chances. so what i did is i went out on a limb, and i don't want jon to know about this. andrew: about what? lemonis: hired some people that are gonna give you the chance to go into a studio for three, four hours, and you're gonna be able to make a 15- and a 30-second radio and tv spot. andrew: wow. lemonis: and it's 100% up to you. i hope that jon will finally see that andrew has a lot to offer this business. let's go get to work. andrew: got it. ♪ jon: hey, how you doing? jake: hey, how's it going? jon: what's up? i'm jon. jake: i'm jake. jon: nice to meet you, jake. so what's cooking? jake: i was interested in selling my car. jon: so what do we have here? 2011? jake: yeah. jon: okay, what's the mileage? jake: it's about 26,000 miles. jon: okay, let me take a quick look around the car. jake: yeah, sure. jon: we'll figure it out, okay? just hang tight. if i gave $16,000, you'd pay $17,000 for it.

what do you think? james: that'll work. lemonis: that the guy that yelled at me? amber: yes. lemonis: jon is outside appraising a car, and i see two wholesalers hovering around the car. i thought we were past this. guys, give us a minute. let me talk to him inside. man: yeah, okay. lemonis: i can't believe this. i told jon specifically to get rid of these wholesalers. if he doesn't change his ways, he's gonna put himself out of business. amber: you were mad. lemonis: i was pissed. hey, look, i don't know if you thought this was my first rodeo, but my job here is to make money for myself and for you. i don't get it. they're taking [bleep] margin right out of your pocket. do you not see that? jon: who the hell am i gonna sell my cars to? lemonis: dealers. jon: these guys are great buyers! they know how to look at a car. they're great with people. lemonis: then hire them! jon: i'd love to hire them! lemonis: then why don't you? jon: because i need them to sell cars to, also, 'cause they pay me a lot of money, too, for cars. and they're honest guys. these guys aren't dishonest. they're honest guys. lemonis: it's not about them being honest or dishonest. it's about having the fox in the hen house. it doesn't make any sense to me. jon: but they're not the fox! lemonis: if you make your living off of selling cars

and the margin between those cars. you buy a car for $10,000, you don't know what the market is. you sell it to them for $11,000 they're selling it for $12,000. jon: time out! in your world, maybe that's how it works, okay? but in my world, it's different, okay? this isn't bakersfield, california, this isn't dallas, texas, this isn't chicago. this is new york city. this is my [bleep] town, okay? i know what goes on here. jay: i mean, i would have said, "it is bakersfield, california, it is jacksonville, florida." it's all the same. it's still a middleman. so that whole premise there doesn't make any sense. amber: play. jon: i know what goes on here, and i know my guys. don't tell me about my guys. lemonis: you don't know anything. you got till the end of the day. they go or i go. coming up... andrew: selling your car? then call 1-800-car-cash -- lemonis: wait. no, no, no. got to get it right. andrew: selling your car? selling your car? selling your car? man: no. lemonis: [ scoffs ] oh.

♪ man: got to paint the whole hood. jon: hey, guys, i got to talk to you for a second. sorry. look, i got to make some changes around here. jay: if it really was new york, his head would be on a stick in the trunk. lemonis: that's a good point. jon: i just can't have you guys here anymore. i'm sorry. i have to cut you guys out. lemonis: really? "i'm gonna have to kill you and put you in the trunk." james: we've been here since your father was around. jon: i know. james: and we've been doing business for him for years. jon: i'm sorry, man. it's nothing personal.

i have to stay afloat. i have to stay alive here. james: that's it for now, right? it's your business. you got to do what you got to do. lemonis: it's hard to cut ties with people you've done business with for years. but in order for this business to survive and make real money, the middleman, the wholesalers, have to go. lemonis: ugh. amber: that douche-y car. lemonis: today, i'm taking andrew to the recording studio to make this commercial, and i am really excited. so, andrew, are you ready for this? andrew: i am ready. lemonis: did you write the spot? andrew: absolutely. lemonis: let me see it. what i'm really proud of is that andrew did a good job preparing for this. he wrote out the script, he timed it, he put a lot of thought into the words. i'm thinking he's gonna do a great job. oh, hey, doug. doug: hey. lemonis: great seeing you. doug: how's everything? lemonis: this is andrew. doug: andrew. andrew: hi, i'm andrew. doug: pleasure to meet you. lemonis: why don't we head on in? we just need to make sure that whatever we do today, it's tight and it's fast and you're on point, okay? ♪ alright, let's get started. andrew: i'm ready. doug: okay, we're rolling whenever you're comfortable.

andrew: selling your car? then call 1-800-car-cash. doug: we're gonna stop. we're gonna stop. that, "selling your car", is too soft. lemonis: strong, andrew. "selling your car?" andrew: alright. selling your car? both: no. andrew: selling your car? doug: no. andrew: selling your car? lemonis: no, no, no. got to get it right. it's really about him getting his confidence, right? doug: yeah, being comfortable. lemonis: it's got to sound like you're pissed! andrew: okay. it takes a long time for me to get pissed, so... jay: apparently. lemonis: because your brother beats on you and it doesn't matter. i want you to read this like your brother just told you you were a dumb ass. andrew: oh, great. let's go. no hassle! just instant cash! lemonis: nice. amber: marcus the acting coach. lemonis: great job! andrew: thank you very much. ♪ lemonis: the manhattan car cash location is gonna be my flagship. it's my prototype. it has to be right. it's gonna set the standard for every other licensee

and location that opens in this country. we're rebuilding all of the offices to maximize the space better. we're redoing the uneven and dirty floors. we're painting the walls and ceiling with the new colors. we're replacing the entire store front. we're replacing the dilapidated awning with a bright, new one. we're improving the lighting so it's more inviting and we can see the cars better. we're rebuilding the bathrooms from scratch so the customers and the employees aren't scared to use them. and we're adding a new sales area where the customers can feel like they're part of the process. god, we did a lot. amber: a lot. lemonis: oh. i'm very happy with the progress. i spent way more than expected. i've spent over $350,000, but i know it's got to be right if this is the prototype. does it look better to you? jay: looks better. jon: it's very professional-looking. i mean, this is a can't-miss. andrew: to say that th [ exhales ] it's quite overwhelming. i wish my father was alive to see this, to show him his new... [ exhales ]

i wish he was here. he would have loved this. he'd love this place so much. this was his baby. he's still here. lemonis: coming up... amber: jay, are you the one that negotiates when you buy your cars? jay: oh yeah, i negotiate. but you have to be careful. i told my friend about this. he says, "any chance of an upgrade?" she sees the $20, slaps him right in the face. lemonis: [ laughs ] ♪

lemonis: so, what's the oldest car in the building? jay: the oldest car would be a 1906 stanley steamer. lemonis: can we see it? jay: sure, come on. i'll show you. this car has the distinction of being the oldest car ever stopped for speeding on the 405 freeway. steam car's a little bit different. you're carrying an open fire 'cause you've got to make steam. and the way it works with a stanley steamer is if the car does catch fire, well, you just shut off the fuel and you increase the speed until the fire blows out. so i'm going down the 405 one day and flames are coming over the front. lemonis: you're literally driving this on the 405? jay: oh, yeah, yeah, yeah. so, i go by this cop. and he actually did one of those things from the '30s where the cop goes like this, you know. he goes, "whoo!" he comes chasing me. and i don't want to stop because then the flames will engulf the car. anyhow, i increase the speed to about, i think it was 91 miles an hour, and that blew the flame out, and then i pulled over, and then...

lemonis: did you get a ticket? jay: no, actually. i got out of the ticket. ♪ lemonis: it's now time to see what jon has learned about doing appraisals. i expect him to make a bigger profit. the whole process, okay? jon: yeah. hey, guys. how are you doing today? my name is jon. what's your name? nick: nick. jon: nick, nice to meet you. woman: nice to meet you. jon: nice to meet you, too. pleasure. let me explain a little bit about what we do here. we'll take a look at the car, i'll scan the vin number, i'll assess a value to the car. i hope i can meet your expectation levels. what were you guys trying to get for it? nick: what i checked online is i should be able to get around $15,000 for this car. jon: it's not what a book says a car is worth, it's what someone offers you for the car. lemonis: does his demeanor seem different to you a little bit? jay: yeah. amber: do you think it's real? lemonis: yeah, i thought it was genuine. jon: i noticed the wheels are a little scuffed. that's, like, the only rim that didn't get damaged. on most cars, it's not the end of the world, but unfortunately, on a bmw, you know, four rims can cost you well over $1,000. based on what i just pointed out, the rims, the bumpers, i'd like to pay $14,000 for it.

lemonis: pause. jay: well, see, the trick there is the wheels are a little scraped. doesn't affect the driving of the car, the handling of the car. that's just a ploy to get the price down. i get that. lemonis: is it a ploy or is it -- jay: oh, of course it's a ploy 'cause it works. "oh, look at that scratch here. oh, gosh. bob, you see that?" "yeah." lemonis: [ laughs ] jay: you know, i mean, nobody does that. you know, it's just a scratch in the wheel. it doesn't really hurt anything. lemonis: so, usually, i do it, jay. not to just drive the price down, it's to not have them feel like they can argue to go up. and so i need some sort of neutralizer. jay: so it's not to drive it down? lemonis: nope. jay: marcus? lemonis: no, sir. jay: sure? lemonis: i'm positive. jay: oh no, now you're looking away. you see, you're doing that. your eye contact. it's not to drive the part down. so you didn't even look me in the eye when you said it. lemonis: okay, it's not to drive it down. jay: aha! aha! lemonis: it's to justify the value. jay: i agree with the premise. you have to justify why you're driving the part down.

lemonis: or not letting him drive the price up, which is the same thing, right? jay: yeah, alright, which is the same thing. lemonis: okay, we'll play. amber: let's play. ♪ nick: let's do it. jon: okay. lemonis: jon did a great job on the appraisal. not driving the price down. now he's doubling his profit on that purchase. i'm introducing jon to an auto dealer in new jersey. i have high expectations that he's gonna dramatically increase his margins. i'm expecting him to make $3,000 to $4,000 more per car. michael: hey! jon: how's everything? michael: michael. what's up? lemonis: hey, michael. marcus. michael: pleasure. lemonis: hey, nice to meet you. jon: beautiful bmw for you. what do you think? michael: i got to look at it. jon: it's definitely front-line material. michael: as long as the number's good, we're in. jon: '07, mileage in the 60s. take a look. michael: mind if i take a look? jon: go ahead. jay: i never do business with anybody wearing sunglasses. lemonis: me neither. jay: yeah. never. you never do business with somebody in sunglasses. lemonis: you can't see their face.

amber: marcus, you're wearing sunglasses. jay: i wasn't doing business. michael: it's all up to the number. jon: i'm gonna put you in the money. i want to start this off right. $17,500. michael: i was thinking more closer to $16,000. would that work? jon: it would work if the car wasn't so nice. it was an original-owner car. the customers took very good care of this car. michael: but it's not like a 30 or 40k. it has 60,000 miles. jon: it's retail-ready. $17,500. come on, man. michael: $16,500 tops. jon: well, it's got a clean vehicle history, car is retail-ready, brand-new tires, maintenance records, one owner. michael: i'll go $17,000 just 'cause it needs nothing. jon: really want to get $17,500. i'll go $17,200. you know what, i'm gonna bring you more retail-ready cars. this is the first of many. ♪ michael: done. amber: jay, are you the one that negotiates when you buy your cars? jay: oh yeah, i negotiate. lemonis: but are you the person that actually does it? jay: oh, i do it. yeah, i do everything myself. yeah, i don't -- lemonis: nobody does it for you? jay: no. plus, cash always works.

when you take out two stacks of $10,000... it's right there. i used to do that. i used to always buy an economy ticket, but this was before i was well-known. because then i'm not flying economy anymore. but when i was flying economy, you know, yeah. so i would buy an economy ticket, and then i would try to pick the sales representative for the airplane that looked they could be had. lemonis: right. jay: and i would slip a $20 in. "any chance of getting an upgrade?" "yes, sir". and boom, it's first class. amber: for $20? jay: yeah, for 20 bucks. but the funny thing is, i told my friend abut this. i said, "but you got to be careful. make sure there's nobody behind you." and, of course, he completely ignores this. he goes up and he says to them, "i'm on an economy ticket." he says, "any chance of an upgrade?". she sees the $20, looks up, sees the guy standing behind, slaps him right in the face. amber: [ laughs ] jay: hilarious. lemonis: coming up... andrew continued to feel less-than. he ended up parting ways with his brother.

jay: it's hard to believe that that turned out successful.

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[ knock on door ] jon: come in. andrew: hey, you got, like, 30 seconds or something? jon: sure, of course. what's cooking? andrew: want to show you something. andreselling your car? 1-800-car-cash is the fastest and easiest way to sell your vehicle since 1977. whether you're selling your car, truck, or suv, visit carcash.com and get a free cash appraisal now.

or call 1-800-car-cash for a location near you. jon: [ laughing ] wow! that was fantastic, man! andrew: thanks. jay: that's the first honest moment the brother had. lemonis: it's an emotional experience. jon: yeah, it's to learn to value his judgment because i did doubt it, you know, and this along with, probably, a thousand other things over the past couple weeks have literally proved me wrong. and i feel humbled, you know, to be honest. lemonis: what would your dad say? jon: he would go crazy for that. andrew: i know, if someone gave me a chance then i can shine, man, you know. jon: yeah. you certainly did, man. i'm on team andrew, believe me. lemonis: pause. jay, for me, it wasn't whether andrew truly had the knowledge to be in the business or not. it was really more of jon recognizing that his brother was trying. jon: what do we have to pay him in royalties for using his voice? lemonis: zero. jon: phew! ♪ lemonis: car cash is now flourishing.

andrew's tv spot is running. and as a result of the new marketing plan, transactions are up 30%. jon is now following my procedures on appraisals and selling cars. this has led to a $2,000 increase in profit per car. we've added a call center, mobile marketing vehicles are on the road, and licensees are opening up locations as we speak. most importantly, the relationship between andrew and jon is on the mend, and things are headed in the right direction. i am confident that car cash and these two brothers are gonna be wildly successful, something their father would be very proud of. amber: where's car cash today? lemonis: so, car cash grew, and then it ended up getting bought by sonic automotive, which is a public company. amber: with you, it grew to over 70 locations. it was huge. lemonis: yeah. with me, it grew everywhere. jay: so they made some money on the big sale. lemonis: they made some money, everybody made money. the good thing for me is that the brothers are in good spots. the younger brother runs a marijuana dispensary in denver today. he struggled for a while, jay.

and after the episode aired, the business got better, and andrew continued to feel less-than. and he ended up parting ways with his brother and going and doing his own thing. jay: well, that's what i thought. yeah, i mean, it's hard to believe that that turned out successful. lemonis: he turned out successful once he got away from his brother. i think this episode gave him the confidence that he can go do something else. jay: the brother still in the business? lemonis: so, the brother is actually working for a big auction house, and at the end of the day, the show is really more about getting people to find their way and getting people who watch it to see that it doesn't have to be nasty and negative all the time. that's the purpose of it. thank you for joining me. jay: hey, thanks for having me on. i had a lot of fun. lemonis: i learned a lot about cars and about looking away when i say i'm not trying to drive the value down. jay: no, but that just made me laugh. when i played poker -- "oh, i got a nine." ♪

happy friday, "options action" fans we have another big show lined up tonight first up, carter worth might have found a marvel in marvell technology he'll chart that course. tony zhang explores another covid cure candidate and he'll outline how to proceed with caution. plus, as the saying goes, you don't know what you don't know mike khouw dives deep inside the calculations and implications of implied volatility find out why you might want to review the fundamentals. time to risk less to make more let's get to it. semi-stocks getting a boost this week as strong results from names like nvidia helped restore confidence in the space.