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tv   The Profit  CNBC  March 31, 2019 3:00am-4:00am EDT

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lemonis: amber... amber: what? lemonis: ...i went out and got you flowers since we were... amber: did you get it, or did you have a p.a. get it? lemonis: i mean, i asked for them. this episode actually is the first episode you and i ever shot. amber: it's 5 years ago. lemonis: it's 5 years ago? amber: we've done over 70 episodes since then. lemonis: we're still together. amber: we are. we don't like each other that much, but... lemonis: i actually like you a lot. amber: oh, my bad. lemonis: can we start, please? amber: just play it. lemonis: in the last 5 years, i've visited over 70 businesses. it was delicious. and i've traveled the country trying to fix the people... woman: i don't want to be that person that cries on tape. lemonis: ...fix the process... i don't think you guys have any idea what's in your inventory.
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holy [bleep] ...and create a few products. welcome to your new store. man: oh, my god. woman #2: i owe my life to this company. lemonis: that is the reason that i'm here. i spend hundreds of days a year working on these companies. why didn't you do it? man #2: i thought that we did. lemonis: holy [bleep] but we can't always fit everything i'm thinking into the show. tonight, i'm gonna give you an inside look at the first episode we ever shot of this series -- maarse flowers in pasadena. you don't make a deal with somebody and then renege. that's not how it works. hank: yeah, i know. lemonis: hey, you know what? i'm not gonna waste my time. i remember there was days where i said, "what did i get myself into?" over the next hour, i'm gonna take you behind the scenes to share with you what i was actually thinking during filming... like what? hank: you said you were gonna give us $100,000, and you didn't. lemonis: i spent over $100,000. hank: well, i don't know what you did spend. i mean, i didn't see anything. lemonis: this episode still infuriates me. he was ungrateful and debbie downer the whole time. it was hard to keep my emotions in check.
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for the first time, you grew a set of balls? hank: i don't know. are you checking? lemonis: i actually am looking for them. i can't find them. hank: whatever. lemonis: ...and give you an honest assessment of my decisions. on the first couple of days of shooting, i was terrified, and i remember being very insecure. was i really qualified to do it? my name is marcus lemonis, and this is "an inside look." man #3: "a" rolling. "b" rolling. man #4: "c" cam. man #3: each feed. cameras rolling, cameras feeding. amber: so this one was the first one we ever shot, but when did it air? lemonis: second. amber: second. lemonis: "car cash" was actually the first episode that aired. that was the premiere episode of the entire series. amber: right. right. lemonis: can we get started? amber: mm-hmm. lemonis: thanks. jacob maarse florist is a pasadena institution. for 52 years, he was the go-to florist. the business made millions, supplying flowers for presidential inaugurations, celebrity events and the annual rose bowl parade. when jacob died in 2010, his son, hank, took over the business.
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it's been a very tough transition, and hank has struggled to lead. hank: there will be some growing pains. well, first of all, i'm on the top. i'm the president. i'm the owner. lemonis: yeah, thanks for clarifying. to keep the business up and going, hank took a $200,000 loan from his mom and borrowed another $100,000 from the bank. clara: i would agree. we're not making money. hank: right. lemonis: hank hasn't made a profit in 3 years, and he's $300,000 in doubt. that's not a good sign for the 30-plus employees who depend on this company to earn a living. the flower industry generates $6.5 billion a year, and i want a piece of that. if hank maarse is willing to follow my lead, i know i can turn this place around and show profits within a very short time. there is so much stuff in here. the layout of the store makes absolutely no sense to me. i mean, there is merchandise everywhere. seems like a lot of stuff.
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like, you don't even know where to look first. amber: what would you say was the toughest thing for you on day one? lemonis: well, in the first couple of days of shooting, i was terrified. in other instances where i had done tv, in my mind, i didn't have to carry the load. it wasn't the show that i was driving, and i remember being very insecure. was i really qualified to do it? amber: right. lemonis: burned-out bulbs and cobwebs. it's filthy. it's dirty. this is ridiculous. no arrangements here, nothing. i've been here for over 5 minutes, and i don't see an employee anywhere. anytime i go into a business and they don't greet me within the first 5 minutes, i turn around and leave. my godson called me one day, and he said, "i went into a furniture store, and they didn't help me for 10 minutes, and i left," and i asked him, "where did you learn that?" he said, "from the flower guy." amber: right. lemonis: there's little nuggets of takeaways in all of these. amber: yeah. lemonis: hi, guys. so there you are. i'm marcus. david: david. lemonis: there's barely any flowers on display, and the floral designers,
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well, it's like they've hidden them in the back. do you know where i find hank? as i walk through the store, i don't understand where hank is. does anybody know where hank is? probably has his hands full with something. if this was my business, i'd be out front and center. when you went and met hank, why did you think he was a good candidate, or why did you think he needed help? amber: based on his finances alone, he was struggling. lemonis: would you be friends with hank maarse today? amber: today? no. lemonis: why? amber: i think what happened was really crappy, and the end was awful. lemonis: don't tell people what the end is. amber: people already know what the end is. lemonis: maybe they haven't seen it. amber: okay. lemonis: you always spoil things like that. amber: i don't spoil things. lemonis: don't tell people what's happening, okay? please. hello. marina: hi. lemonis: i'm marcus. how are you? marina: marina, nice to meet you. lemonis: nice to meet you. you've been here how long? marina: close to 10 years. lemonis: 10 years? are you responsible for the showroom? marina: yes. lemonis: so why would all the bulbs be burned out? marina: we've been working on getting new light fixtures.
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lemonis: you know what's funny? that nobody thinks it's a big deal that the bulbs are burned out. things like cobwebs and light bulbs being burned out are representative of how you think about the details. amber: right. lemonis: and if you don't think it's important enough to do those things, what happens to the things you can't see? do you guys think you have good inventory management? marina: as far as knowing what's coming and going? lemonis: when i meet a general manager, i expect them to understand the fundamentals of business, especially inventory. you have to know what you have, how much it costs, what you're selling it for, how old it is. all those things add up to making money. hank, i'm marcus. hank: marcus, nice to meet you. lemonis: nice to meet you. how are you? hank: thanks for coming by. doing well, thank you. lemonis: well, you got a beautiful shop here. hank: thank you. lemonis: a lot of history. hank: a lot. lemonis: by the way, that's a killer picture of your dad. when you took over officially... your dad passed 2 years ago? hank: yes. lemonis: is that when you officially kind of stepped in? hank: yeah. lemonis: how much money will this business lose this year, $100,000? hank: no, less.
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lemonis: and last year, how much did it make or lose? hank: last year was $20,000, a loss of $20,000. lemonis: $20,000, and the year before? hank: $40,000. lemonis: and if you had a couple bad months and you ran out of cash, what do you do? "call my mom." hank: get a loan from the officer. lemonis: your mom? hank: yes. lemonis: "yeah, my mom." and how much would you say she's put in here in the last 3 years? hank: probably close to $200,000 as loans. lemonis: is that the only debt on your books? hank: and we've used our line of credit at the bank. lemonis: how much is that? hank: $100,000. lemonis: what i'm concerned about here is, hank's mother continues to write checks to keep this business open. if i said to you, "okay. what is this place?" how would you describe it? hank: flower shop. lemonis: you would say a flower shop? hank: and gift shop. lemonis: is selling flowers the most profitable? hank: to be honest with you, i don't know. lemonis: you know you got to know these numbers, right? hank: yeah, i know i do. lemonis: does your mom ever ask you?
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hank: no. lemonis: okay. oh, my goodness. there is so much inventory in here. do you know how many are in this pallet? hank: uh...uh... lemonis: one of the reasons why i thought this business was interesting is really understanding the generational gaps that happen in businesses, right? we know that second-generation businesses have a failure rate. had that entered your mind at all? amber: what we liked about it is that it had been around for so long and that we thought you could keep it going for many years. why do you think second and third-generation businesses don't succeed? is it because the kid doesn't really want it? they feel they have to take it or... lemonis: i think, a lot of times, they're not interested in it. amber: right. lemonis: you know, hank may have wanted to be, you know, an architect, and he got stuck running his dad's flower business. amber: i mean, i thought hank didn't, like, really want to be there but was going through the motions and probably was doing it for his mom because she's still alive but wasn't that into it. lemonis: the family name. amber: family name. lemonis: is there a location in l.a.? hank: there was.
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lemonis: when did this one close? hank: 10 years ago? lemonis: it closed 10 years ago, and you haven't taken it off yet? and where's the phone number? who do you call? hank: i didn't like having the phone number on it. lemonis: yeah. i don't want too much business. no, no, no. no because that would mean business would go up, and... hank: yeah, and i'd have to work. lemonis: have to work harder. hank: then i'd have to work more and buy more flowers. lemonis: maarse does over $3.6 million a year in sales, and flowers account for three-quarters of that, and since most of it is delivered, i need to get out and see if this delivery process is actually working. i went online to learn more about this business, and the one thing i noticed -- there are a lot of complaints about the deliveries and the products once they got there. so are we going the right way? chris: i believe so. lemonis: chris, we can't do it that way. we need to know where we're going. chris: i'm kind of an old-school-analog guy, so a map book provides an overview of the area as opposed to just, "turn left. turn right. turn left," kind of stuff. lemonis: right. their delivery process is extremely archaic.
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chris: this isn't legal, but i'm doing it anyway. lemonis: they have no gps. they use a map when they're gonna leave the store. they have no routing system. no wonder these deliveries are late. chris: don't hit the cat. el gato. amber: as far as a thomas guide, i mean, that's a little, like... lemonis: i don't know what that is. amber: it's, like, a 300-page book. it's, like, a map from the '70s or '80s when we grew up. what you would do is, you'd have to, like, pull over, pull out this map, look at where the street is. there's, like, five steps to finding where the address is... lemonis: no wonder you were late. amber: ...where you could put it on the aftermarket garmin. lemonis: did you use a thomas guide to get here today? is that why you were late? amber: no. lemonis: okay. amber: i just thought you'd be late. lemonis: so you have a business that has a broken process. your mom puts money in the business, and you have to run most of the decisions by your mom. hank: yes. lemonis: and you're 49. hank: yes. lemonis: how's that sound to you? it sounds pretty [bleep] let's pretend for a minute that your mom didn't want to write any more checks. what would happen to this business in a year?
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hank: i don't know. lemonis: so do you agree that you need a financial partner that's not your mom? hank: yes. lemonis: do you agree that you could use a business partner that's not your mom? hank: mm, i don't know that i would want to have a partner other than... lemonis: well, you have one now. hank: well, my parents, yeah, but i would like to maintain 100% ownership here. amber: i know first season was so much harder to cast this show. today, there's an application process. that wasn't the case first season. people didn't know what they should have for you, or they didn't know that you were gonna take a percentage, and he didn't know to, like, know his numbers and financials and... lemonis: okay. all right. amber: well, okay. lemonis: the fact that...okay. all right. amber: i know. i understand. someone's coming to your business to... lemonis: you should know. amber: invest. yeah. lemonis: or even if they're not coming, if you own a business, you should know... amber: what things cost, yeah. lemonis: much things are. hank, let me be very clear. you need some help, and you need it now. you're gonna keep calling your mom every time you have a problem? am i wasting my time here, or are we about to get down and get to business? which one is it?
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i don't think hank is making this very clear. amber: normally, you'd go after someone like hank here, and you didn't. you went after marina. lemonis: you're being demoted. lemo(danny)'s voice)ike to go of course you don'te? because you didn't!? your job isn't doing hard work...'s making them do hard work... ...and getting paid for it. (vo) snap and sort your expenses to save over $4,600 at tax time. quickbooks. backing you.
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the biggest week in television is almost here. xfinity watchathon week. starting april 8th, enjoy free access to the best shows and movies from hbo, showtime, epix and more. what! whether it's more jaw droppers, standing o's upon standing o's or tv's biggest show stoppers. get more into what you're into. get ready to watch with xfinity x1 or the xfinity stream app. xfinity watchathon week. free starting april 8th. boop! amber: you think you know everything. lemonis: no, i don't. that's a defense mechanism. see? you're just like the people in the episodes. amber: no. you, like, gave me a look,
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and then i knew what you were thinking. like, "i'm gonna get her." lemonis: no. amber: "i'm gonna..." lemonis: nobody is trying to "get you." your financials will get you just on their own. am i wasting my time here, or are we about to get down and get to business? which one is it? is that your mom? hank: yeah. lemonis: is she coming here to help you negotiate? she's the real check-writer, right? so why don't we bring her in? hank's not the decision-maker here. very nice to meet you. clara: nice to meet you. lemonis: he may own 100% of the stock, but he doesn't even own 1% of the decision-making. she's a really nice lady, actually. amber: yeah, for sure. lemonis: and she seemed tough. amber: yeah. lemonis: it's not a woman that i would want to cross. amber: yeah. lemonis: but you know what's funny in watching that scene? that wasn't the real me. back in season one, we were trying to make this show harsher... amber: right. lemonis: ...where we didn't want anybody to be nice or soft, and i think you and i sort of got tired of that. amber: i think you're right. lemonis: i was asked to come here by hank. i want to be very clear about that. i've concluded that this business is a total mess,
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and, mrs. maarse, i wish jacob could be here because i'm sure jacob would throw me out, but the difference is, is that i don't think things would be this way if jacob was here. hank, look, if you continue to do the same thing, your business is going to close at some point. i know that she can afford to write checks forever because she doesn't want her husband and her name... clara: absolutely. lemonis: okay. mrs. maarse, what i'm telling you is, if you continue to write the checks on a monthly basis, he will never have to fend for himself. he needs someone like me to hold him accountable for poor performance. i don't think you're willing to do that, and i understand why, but i have to tell you that, that's not the way to run the business, so i'm going to give you my offer. clara: okay. lemonis: okay? i'm gonna give you a check for $100,000, but for this $100,000, i want 25% of the profit so that i'm incentivized to help you
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grow your business with you, side by side. hank: i was thinking more of 20%. lemonis: hank, look. my time is valuable. i don't have time to be doing this all night. 25% is really the number that i need that incentivizes me to do the things that i think need to be done. amber: why did you do a deal on the profit and not the business? lemonis: because i remember there being all these other assets, including the building, tangled up in the company, and the number would've had to be so much bigger to get a piece of all of it that it was an easy way for me to dip my toe into a business, try to get something changed and get a good return on my capital. and you understand, for the next week, i'm 100% in charge? hank: is this a now-or-never deal? lemonis: you're gonna make a decision right now. hank: all right. i'm okay with that for one week. lemonis: but all i ask is that you don't screw me. you don't take my money. clara: we're not the type. hank: yeah. you won't find anybody that...
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lemonis: well, why did it take you a while to say that to me? your mom said it right away. why did you have to think about it? clara: i think... hank: i'm just surprised you would even say something like that. lemonis: well, sure. you have to say things like that. clara: yeah. lemonis: we have a deal? hank: this is all done on a handshake? lemonis: is your handshake not good? hank: mine is. lemonis: yours is good? clara: always. lemonis: okay. we have a deal? hank: deal. amber: hank was different than anybody else on any show because hank really felt like this was a tv show. most businesses realize that they're in it because they need help, and hank felt like, "all right. yeah. let's play tv for a week," and i think that that was kind of his attitude through it. lemonis: i think the thing that the people participating in the episodes think sometimes is that somebody other than me calls the shots, and i think that they learn over time that there aren't these puppet strings being pulled from somewhere else or this big strategy around exactly what's gonna happen. my name is marcus lemonis, and some of you have seen me around, and i'm here to help fix this business so people don't lose their job. for the next week, i'm in charge.
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so what we're gonna do is we're gonna make some massive changes, and at the end of this week, we're gonna have a grand reopening. we're gonna let our customers tell us if we've gotten it right. i need to get rid of excess inventory, make time-saving changes, and i need to organize what's left. maarse has a viable product here, but in order to make it good, we need to display it to the customers in a way that's appealing, and it needs to be presented in a less cluttered, less disorganized manner. we're gonna become profitable together, okay? so let's go get to work. thank you. man #5: uh-huh. lemonis: what i want to do is have you guys understand what i think is the single biggest reason that the place loses money today. i want to actually make an arrangement. somebody called in a $75 order. bart: well, i'm... this is $85. lemonis: $85, so there's two things that go into this arrangement -- raw materials and labor. how much is the bowl? bart: $10. lemonis: how much is your time? bart: 15 minutes.
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lemonis: 15 minutes at 20 bucks is how much? hank: $5. lemonis: so now we're up to $15, okay? keep going. how much are the hydrangea? bart: the hydrangeas are $3 each for the white. lemonis: so now we're at $33. how much are the tulips? bart: $15 a bunch. lemonis: okay, so now we're at $48. bart: one bunch of hyacinths, they're $15 a bunch. lemonis: okay. now we're at $63. bart: i'm gonna do garden roses. lemonis: how much is that? bart: $2.50 each. lemonis: $7.50, we're at $70.50 right now. bart: three stems of lilac. lemonis: how much is that? bart: lilac, it's $60 a bunch. lemonis: so we'll call it $10.50 for this discussion. hank: yeah, that's good. yeah. lemonis: so we're at $81 in cost. so if you're selling this for $85, you know what? good job. we just made $4. amber: so what was the actual margin? lemonis: 4.7%. it was less than a 5% margin. i don't know in the history of our show if we've ever had a product that had a 5% margin. it wasn't that the florists were wrong. they were given this creative liberty, and artists,
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by definition, are creative people, and what one flower costs over another flower wasn't really relevant to them. hank hadn't determined a good-better-best model. this arrangement is between this price and this price, and these are the kinds of flowers you can use inside of them, and this is the quantity they could use. is raoul here today? erick: he was asleep, so he kind of forgot, so he's coming right now. lemonis: employee tardiness costs businesses thousands of dollars each year. not only is it bad business, it's not gonna happen on my watch. i talked to erick about raoul... marina: mm-hmm. lemonis: ...who's not here. marina: right. lemonis: people can kind of not show up, and they would just kind of get away with it? as general manager, marina needs to set the tone, and showing up for work late is not acceptable, and having the employees respect you is more important than having them like you. do you know what this thing costs? marina: our cost? no. lemonis: marina is the first general manager i've ever met that doesn't understand her business. do you know what your sales per square foot are?
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marina: no. lemonis: you ever even... marina: no. lemonis: ...thought about that? you ever even heard that phrase? marina: no. is that bad? lemonis: what kind of general manager is this? the thing that i really want you to do is build the team around you, and i've been here a couple days. one thing that glares for me is that marina is not your general manager. she's not going to be after today. there's a need for a retail manager. this is the right job for marina, selling and taking care of customers. do you agree with that? hank: yeah. lemonis: and if marina doesn't cut it in this new role, then unfortunately she's gonna be out. marina has not proven to me she's capable of being a general manager. hey, marina. marina: yeah. lemonis: can hank and i borrow you for a minute? marina: yes. lemonis: okay. amber: normally, you'd go after someone like hank here, and you didn't. you went after marina. lemonis: i wasn't going after marina. this was more about highlighting what hank needed to be doing than it was about minimizing what marina did.
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in a business like this, it really is a sole-proprietor business, meaning that the owner has to also be the operator, and in this particular case, hank layered himself with a general manager between him and the rest of the organization, which is why, i think, he knew nothing about his costs or about pricing or anything. it's important, hank, that marina understands from you with a more clear job description. hank: i agree. lemonis: what do you want her to do long-term? hank: okay, sales, weddings, parties, whatever. lemonis: anything that goes through the register, right? hank: right. lemonis: does she need to mess around in the warehouse anymore? hank: no. lemonis: does she need to be in the plant department? hank: no. lemonis: does she need to worry about the air conditioning is broken? hank: no. lemonis: all that stuff -- relieved. how does that make you feel? marina: am i completely being withdrawn from the staff? because usually now the employees will kind of report to me, and then if it's a bigger problem, i'll go to him. so is that still gonna happen? hank: i would like you to still be responsible for that.
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marina: okay. lemonis: well, that's different than what we talked about. marina, look. i don't think hank is making this very clear. for me, this is business, and from my perspective, you're being demoted. marina: why is that? lemonis: i don't know if you're qualified. i just... marina: what makes you feel that way? lemonis: quite frankly, i don't think that the people that work here have any discipline or any structure, and am i supposed to blame hank, or am i supposed to blame you? you're the general manager. who do you want me to blame? marina: i don't know where marcus is coming from. he doesn't know everything that i do in the store. i work hard everywhere that i've been, and that's how i've been taught. that's how i've been raised, but hank just doesn't take action, and that adds a lot of pressure. lemonis: it was tough because it wasn't meant to tear marina down. it was clear to me that she had more passion and more emotion and probably more vested in the business than hank did. she just didn't possess the information needed.
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if your business is in trouble and you need my help, log on to...
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lemonis: can you do me a favor and work on your energy? energy is a little low today. isn't that what you used to tell me? amber: that your energy is low? lemonis: yeah. you'd be like, "your energy is really bad today." you used to be a lot more critical of me. amber: well, you're just perfect now. lemonis: okay. ♪ marina: when hank and marcus demoted me, it was hard, but i still want to do everything in my power to keep, you know, the family business going. lemonis: she had a good attitude, and that's usually when you can find out how committed people are is if their attitude is better when things aren't good. i want you to see the lines of sight, okay? hank: right. lemonis: and we want to have clear lines of sight so when the customer comes in, it's inviting. if there's one thing i know about a business, appearance matters, so i'm bringing in some designers to help me reorganize the store and remerchandise.
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all i'm thinking about is customer flow and ease of access to products. shannon: okay. lemonis: if the customers can find the inventory, they can buy it, and that's how we'll make money. because this was the first episode we ever shot, how hard was it to put the idea of the show together? because there really... we hadn't had a format. there was nothing to go off of. amber: i think it took a long time. i think, you know, on average, 12 to 14 weeks to put shows together in the edit bay, and i want to say this one took maybe 20. you're not, like, a normal person shooting a show, like, normal talent. they'll go in. they'll shoot their scene. they'll leave. you are up for hours and hours, and our camera guys are just... they're just shooting you, like, going in and out and bobbing and weaving in a business, so our show takes longer to put together in the edit bay. lemonis: how many hours of footage do you think we have for one episode? amber: gosh, 70, 80 hours. yeah. lemonis: really? amber: so when you call up and you're like, "why wasn't the buh-buh-buh in the show?" it's like, "really? maybe someone just missed it watching 80 hours of you."
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you know, these people get to see 44 minutes of you. i see 80 hours of you. lemonis: not only is this building old, but it hasn't been maintained in years. i'm replacing fixtures, wiring, everything you can think of. we are installing security cameras, so i'll be able to literally on my phone click something and see all the different cameras. the security cameras are going to tell me what departments are busy and which ones aren't and the traffic patterns of the customers. i also ordered gps's for all the vehicles. i've put a new inventory system in place so i know where all the inventory is. i'm replacing the filthy flooring with fresh, new carpeting. we're replacing the absolutely ridiculous plastic windows with glass. we're also decluttering the inventory by moving things into a brand-new sale section in the warehouse. we're gonna turn this inventory, and we're gonna free up our cash. hank: well, marcus took a lot of stuff out of the store and just kind of dumped it in the garage. this doesn't seem like a great plan at all. i mean, i couldn't... lemonis: oh, my gosh. please, please stop.
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amber: you just dumped it in the garage. lemonis: the only reason that i put all that stuff in the garage was to sell it. put it at 50% off and just get your money back and more importantly to get him to pay attention to it. i didn't just dump it in the garage. amber: was hank there the entire time? was he with you for the 8 hours or... lemonis: no, he wasn't with me at all, but marina was. she was working. marina: is there a way because we've talked about this, to, like, frost that window so that way you can't see? lemonis: yep. yeah. marina: because it looks real... i mean, the floors do look trashy when you're walking that way, especially if we're throwing... lemonis: you're saying all the way down? marina: yeah. lemonis: i like that idea. marisa: this is really, really nice. i think now you know you're in a flower shop. lemonis: okay. i feel really good about the progress these team members are making, and the vibe in this building is the best it's ever been. dennis: good. lemonis: we'll get these tables set up so that tomorrow morning when the fresh-cut stuff comes out, this power aisle will have the right stuff here, so i think we're good. he looks so pissed off. yes, no? hank: well, when the store opens,
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i don't want it to look like we're going out of business or... lemonis: or renovating stuff? hank: ...or somebody came in and stole the tables that the arrangements go on. lemonis: hank, why don't we go... hank: all right. lemonis: ...just chat. you're tired. it's been a long day. you're frustrated. you're seeing all your cash sitting out here, and you're thinking to yourself, "this guy came in here. he took all the [bleep] out of my store, and he's acting like it's not worth anything." am i pretty close? hank: well, you took it all out, and now it's in the garage, and now what are we gonna do? this is all the new stuff. how long is this gonna sit here, or are you gonna tell me what to do with it? lemonis: don't get frustrated, but when you say to me, "everything is new"... hank: no, 90% of that cart is new. lemonis: you have no idea about your inventory. hank: yeah, but that doesn't clear the fact that this pile of stuff is sitting here, and we still don't know what we're gonna do with it. lemonis: i want to make it easy. is this new? hank: no. lemonis: what else? amber: so all the dead inventory they have, have you seen a business collapse because of all that?
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lemonis: i think business owners let their inventory create this gridlock that ultimately puts them out. if your business is losing money, you have to find a source of capital to pay your bills, and i was frustrated by the fact that he didn't see it in the inventory. $400,000 of stuff around the building, go free up $50,000 or $60,000 of it. do you know where hank is? dennis: i don't know. i don't know if he's gone home or what. lemonis: i remember thinking in that moment, "did you send him away?" he really left? marina: yeah.
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lemonis: do you remember when you used to pick me up? amber: i did. lemonis: it was like a carpool back when you were really interested in me and what i was doing. amber: we were getting to know each other. lemonis: i would not carpool with you again. amber: oh, really? what is that supposed to mean? i picked you up every day and drove you to set and took you home. i've never done that for any cast member on any of my shows ever. lemonis: apparently, it's important to you. i had no idea you were gonna have this emotional reaction. amber: i mean, like, you turned on me. like, you're not gonna take a ride from me again, like... lemonis: ooh, i remember this. we went early in the morning. you know, hank is not totally comfortable with all the changes i'm making, but he will be when he sees his bottom line in a couple months. i'm gonna take him to the flower mart, and i'm gonna show him how easy it is to make more money. if hank takes cash to the flower mart,
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i think he can pick up 10 to 15 points of margin on what he buys. well, maarse buys $1 million a year in flowers, so just with that simple advice, i think he could pick up $100,000 to $150,000 in profit. 70% of second-generation businesses fail in this country. i need to figure out if hank really is committed to this business and if he really wants to be in it. how do you think you did before we got here... hank: as far as... lemonis: ...i mean, really as a business owner? hank: i mean, to be honest, between you and me, i've felt terrible for the last...i don't know. lemonis: couple years? hank: at least, yeah. lemonis: i mean, you got to be a little sick of it. hank: yeah, completely. lemonis: i mean, the stuff that we're doing, the $100,000 that's been spent... hank: i think you just spent more than that, though. lemonis: how much do you think i've spent? hank: i think you've probably spent, like, $150,000. lemonis: why? hank: because you believe in the business. lemonis: that's exactly why. i think the worry i have is that i don't think you want to do it anymore.
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this car ride was actually, in my opinion, the first time that hank was actually real. he was being more honest... amber: sure. lemonis: ...about the fact that he really didn't want to do this. when i take a car ride, it's usually to get people out of the environment. when we're in their business and there's other people around and there's an actual cameraman or woman standing in front of them, their body language changes. their mind-set changes. hank: i mean, you know i'm going to make money eventually. it may take you 30 years to get back your investment, but you know i'm going to make money eventually? lemonis: did you actually just tell me that it's going to take 30 years? oh, my god. ♪ as i look at these vans, i can't understand why hank doesn't have the phone number on them, so i ended up wrapping all the vans with not only new artwork but the actual phone number and website. the new van, check it out! dennis: unbelievable. lemonis: good. dennis: i love the way it's going around the whole bottom of the truck. it's very classy. woman #3: wow. woman #4: yeah, it's fantastic, and the telephone number is on there and...
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oh, it's beautiful. hank: instead of the decal being a photograph, i would've done it in a painting instead because it's easy to buy this online or wherever and just slap it on the truck. lemonis: i feel like watching this is bringing back... amber: bad memories or something? lemonis: ...all the frustration that i had with the guy. because this was the first episode we ever shot, i remember there was days where i used to think to myself, "what did i get myself into?" amber: the whole show? lemonis: mm-hmm. amber: and what did that voice tell you? lemonis: run. all this hard work is finally coming to an end. i'm excited about the regrand opening. marina: tell people to come in here. woman #5: okay. marina: and tell them we're having a regrand opening quickly. be back in, like, 10 minutes at most. run! lemonis: we're just doing a regrand opening.
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marina: have a great weekend. man #6: thank you. woman #6: the decor inside has changed a lot. i love shopping here. man #7: the store is definitely inviting. i noticed a lot more prearranged flowers to choose from. they had a great variety today. lemonis: in a typical year, maarse averages about $10,000 a day. so far, this business has done $13,000 today. that's a 30% increase in business. i'm happy with the progress, and there's a clear standout. marina is doing a great job. she's interacting with customers. i really thought she did do a good job. she's doing all the things that, quite frankly, hank should be doing. have you seen hank? dennis: i saw hank not too long ago. lemonis: a successful business owner subscribes to one theory. they show up first, and they leave last. do you know where hank is? dennis: i don't know. i don't know if he's gone home or what. amber: you're not happy. hank is nowhere to be found, and you're redoing his store, and you're having a regrand opening, and hank is not there. lemonis: i was pissed. amber: yes, you were. lemonis: who could literally be this inconsiderate?
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somebody is at you're store. they're redoing it. they put a bunch of money in, which you've acknowledged. the store is getting totally redone. you're hoping to make your mom proud about your dad's legacy. all this work is being done. carpet is getting laid down. arrangements are getting made, and you're not there. amber: yeah. lemonis: yeah. he really left? like, he's gone? marina: as far as i know. lemonis: he literally disappeared. i'm pissed. oh, hey, hank. where'd you go, buddy? we have a grand opening. hank, i don't understand why you left. amber: to me, that was sort of hank's mentality is that, "you're here for a week," you know? lemonis: "you're almost out of here." amber: "you're almost out of here." like, "we're doing a tv show. it's almost done." lemonis: the fact that he was ungrateful and debbie downer the whole time, i would've never stayed this long. i would've never... i would've just been like, "why am i wasting my time with you?"
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this is [bleep] ridiculous. you need to [bleep] come back here. i've been here for a week. i'm doing all this stuff. this is ridiculous that you left. turn the car around. get your ass back here and be a leader right now. you know what? i'm not gonna waste my time dealing with somebody... hank: you didn't keep up your part of the bargain. lemonis: i'm gonna call your mother. don't touch me. i thought i was going to punch him. amber: yeah. you were mad.
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(danny) after a long day of hard work... have to do more work? every day you're nearly fried to a crisp, professionally! can someone turn on the ac?! no? oh right... ...'cause there isn't any. here- (vo) automatically sort your expenses and save over 40 hours a month. without you, we wouldn't have electricity. our hobby would be going to bed early. (vo) you earned it, we're here to make sure you get it. (danny) it's time to get yours! (vo) quickbooks. backing you.
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get your ass back here and be a leader right now. hank has turned out to be a real disappointment, not only walking away from his regrand opening but his unwillingness to make the changes necessary. he's pushed me on everything. he doesn't want to get rid of old-age inventory. he doesn't want to take cash to the flower mart. he doesn't want to raise prices. i need to make sure there's a leader in place, and that leader for me is marina. i will tell you that, based on what i have seen since the day where you were taken out of that job, you are a totally different manager. i've watched you interact with the employees. i've watched you discipline them properly. i've watched you work, and you've fought through it, and you said, "you know what? i'm not gonna worry about the demotion. i'm not gonna worry about anything else. i'm just gonna do my job." that's the attitude that i saw. you should be very proud of yourself. marina: well, thanks. lemonis: so in my opinion, you know, you need to clearly be the leader
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when hank is not here and even when hank is here. there's no question about it. marina: thanks. lemonis: congratulations. marina: thank you. lemonis: you earned it. ♪ it's been a couple days since the regrand opening, and i've talked to marina. she tells me business is really picking up. don't wear a red sweater and drive an orange car. amber: that's awful. lemonis: do you notice the difference in my shirts today versus how they were in this episode? see how tight and right this is right here? look. amber: how does your tie get to a business lesson? no one cares about how your collar is. lemonis: do you want to know what the business lesson is? amber: what? lemonis: don't have your collars go out like that. today, i showed up for a meeting with hank, who said he needed to talk. it'll be the first time we've seen each other since he took off before the regrand opening. how you doing, buddy? hank: good. how are you? lemonis: i'm good. what's the good word? hank: well, it's been a disruptive two weeks. i appreciate your effort, but whatever you tried didn't really work. between you and me, i'm not gonna take your deal. lemonis: why is that? hank: well...
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lemonis: we made a handshake on it. hank: yeah, i mean, there's a lot of stuff that you promised that didn't... lemonis: like what? hank: ...that didn't go through. like, you said you were gonna give $100,000. lemonis: i spent over $100,000. hank: well, i don't know what you did spend. i mean, i didn't see anything. lemonis: how much do you think i've spent? hank: $150,000. lemonis: yeah. you didn't see all this being spent? hank: well, i saw some lights and stuff going up, but that was about it. lemonis: some lights? you saw some lights? how about the gps's that went in the vehicle? how about the inventory system? hank: i saw some... lemonis: how about the camera system that went in there? hank: i saw some graffiti being painted on the garage that... lemonis: how about the new glass being done on the front of... hank: well, a couple panes of glass is not worth $100,000. lemonis: hank, are you [bleep] kidding me? hank: yeah, no. i'm not [bleep] kidding you. lemonis: you're trying to tell me that i didn't put money in your business? hank: i don't know what you did because you didn't show it to us so... lemonis: would you like to see it? hank: well, it's too late now. lemonis: why is it too late? hank: we had a deal, and you didn't do it, and you said business was gonna... lemonis: you're kidding me. hank: sales didn't go up. lemonis: in a matter of 2 days? hank: you said... lemonis: that's because you're never here. hank: you said a week. lemonis: that's because you don't know how to manage this place. hank: well, that's your opinion. lemonis: you better call your mama and get my money back.
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i could've made more money from this episode selling pillows, t-shirts, hats, mugs... amber: saying "call your..." lemonis: ..."call your mama and get your money back." amber: but you did make those shirts and... lemonis: i made them, like, a year later... amber: right. lemonis: ...because people loved them. amber: they were great.
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lemonis: i keep a lot of notes because, one day, i'm going to write a little... amber: memoir? lemonis: mm-hmm, about the experience. amber: about this experience? lemonis: about this whole experience -- people that i met, the money that i spent... amber: i'd probably have to give you approval. lemonis: no, i don't need your approval. amber: i know i'm going to be a part of it. lemonis: you're gonna be many chapters. okay? hank: sales didn't go up. lemonis: in a matter of 2 days? hank: you said... lemonis: that's because you're never here. hank: you said a week. lemonis: that's because you don't know how to manage this place. hank: well, that's your opinion. lemonis: you better call your mama and get my money back. jacob maarse hasn't turned a profit in years. i've turned this place around in one week, and one thing i know for sure, i care about this place more than he does. why did you choose to take this path? hank: because i don't think it's a good deal for us. it's not... lemonis: then why wouldn't you just call and say that? hank: because i wanted to do it in person. lemonis: this way? hank: well, it's kind of your style, you know? i learned from you. lemonis: you're a punk, hank.
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hank: wow, thanks. lemonis: when hank maarse decided to back out of the deal, i wasn't disappointed. i was pissed. [ phone rings ] clara: hello. lemonis: clara? clara: yes? lemonis: hi. this is marcus. how are you? when you and i first talked, you told me that if i spent the money and you didn't want to do the deal, you'd give me my money back, so i would like my money back. i mean, he's gonna have to get it from you, obviously. perfect. clara: and... hank: why are you talking to my mom? mom, you don't have to talk to them. lemonis: she actually was... hank: i'm handling it. lemonis: she's actually on speaker. hank: what are you doing? lemonis: so she can't... i'm telling her what happened. i'm telling her that you don't want to honor what we agreed to... hank: right because you didn't. lemonis: ...25% of the profits. hank: because you didn't honor it. you said you'd do it in a week, and you didn't. lemonis: no, i said i was in charge for a week. i didn't say the world was gonna change in... hank: well, you pretty much made it sound like it was, and it didn't, so you happy now
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that you had to call my mom to do that? lemonis: well, i had to call your mom. i mean, it's her decision. hank: no, it's my decision. lemonis: hank, it's your mom's decision. hank: no, it's not. okay. are you done now with her? thanks, mom. i'll handle it. lemonis: you just hung up on your mom now? hank: why are you calling her? you can't handle it? you can't deal with me? lemonis: for the first time, you grew a set of balls? hank: i don't know. are you checking? lemonis: actually, i'm looking for them. i can't find them. hank: okay. well, whatever. lemonis: you don't make a deal with somebody and then renege. that's not how it works. hank: yeah, i know. you didn't keep up to your... lemonis: hank, you know what? i'm not gonna waste my time dealing with somebody... hank: you didn't keep up your part of the bargain. lemonis: i'm gonna call your mother. don't touch me. amber: that must be the miami in you or something. lemonis: i thought i was gonna punch him. amber: yeah. you were mad. lemonis: i was so angry. amber: he got you so riled up. he was so ungrateful. lemonis: it was hard to keep my emotions in check, and i had a red sweater on.
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you told me that you thought i spent $150,000, which is not the number, by the way. hank: yeah. lemonis: well, why'd you say it then? hank: i didn't say that. you probably said it. lemonis: hank, it came out of your mouth. hank: no, it came out of your mouth, marcus, just like a lot of stuff comes out of your mouth. lemonis: so you're telling me this place... hank: "the sales will go up 200%. buh-buh-buh, buh-buh-buh." well, it didn't happen. lemonis: hank, are you 49 or 14? hank: yeah, i'm 49. lemonis: really? hank: yeah. thanks, marcus. lemonis: hank, how would your dad feel about you doing something like this? somebody comes in. they put money in with a handshake. do we have a deal? they work their ass off. we try to make this nice thing. if you want to change the deal, you should be a man about it, but to tell somebody they did nothing... hank: i'm not saying you didn't do anything. lemonis: ...your dad would be fricking embarrassed of you. hank: i'm just saying... i'm not saying you did nothing. i'm saying you didn't do what you promised. lemonis: get out of my face. hank: oh, all right. lemonis: you're a thief and a liar and a cheater. before i walked in there, you knew something was gonna happen. amber: well, no, i didn't. lemonis: you're telling me that you did not know
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that hank was going to say these things to me? amber: not outright like that. i didn't... lemonis: what...what... amber: but here is the thing. it's not like i had this information for a long time. lemonis: how long did you have it for? amber: not long. lemonis: a day? amber: hold on. it's not like i had this information and that you spent $150,000 while i had this information. lemonis: okay. amber: then i would've been like, "hey, stop. stop spending money." i think that this was a hard position to be in as a producer. sometimes in a show that's not scripted, it's better to find out as it's happening. lemonis: oh, i found out all right. amber: right. lemonis: he duped me. i felt totally taken advantage of. the week after, i put a lien on the building, but i thought the easier path than making a stink was to get ahold of the mom, and i kept trying to reach her, and i finally got a phone message from her, and i called her back, and we talked for a good half-hour, and she ended up writing me a check, and she said to me, "the only thing i want in exchange for me giving you your money back is to tell people that my son is not a bad guy,"
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and i actually didn't think that hank was a bad person. amber: he's not a bad kid. no. he's not. lemonis: i thought he was just way out of his league. i thought he was trying to live in his father's footsteps, and there was no chance of that happening, none. ♪ oh, are you gonna take it? are you gonna do this one? all right, you go. lemonis: you go. amber: you're the star of the show. lemonis: actually, apparently, according to social media, you're the star of these shows. amber: i got recognized last week. lemonis: yeah, okay. why don't you just take it from here? amber: tonight we're gonna take an inside look at my favorite family, my favorite product. lemonis: ice cream's not your favorite product. shoes and handbags are your favorite product. amber: i don't know about that. lemonis: it's my favorite family, and it's one of my best investments. amber: okay. lemonis: yeah. amber: what is it? lemonis: what? amber: what are we watching? lemonis: uh, bentley's? amber: mr. green tea! [ laughs ] bentleys! lemonis: in the last five years, i've visited over 70 businesses. it's delicious. and i've traveled the country trying to fix the people...


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