Transcripts For CNBC The Profit 20240714

Were closing the store. Were done. Im not talking about it anymore. I back them up, spending my own money. Its not always pretty. Man perfect flavor. Lemonis . But this is business. You got to trust the process. I do it to save jobs, and i do it to make money. Thanks for your business. This is the profit. Coopersburg, pennsylvania is about an hour north of philadelphia, in the heart of Amish Country. And its home to coopersburg sports, a noveltyandsports business. Scott pino started the business in 1991. Scott i cant find the yankee order out here. Lemonis . Shortly after he secured the coveted license from Major League Baseball. He eventually was able to place his mini bat, his top seller, in every Major League Baseball park. Business was great, and they were pulling in over 4 million a year and making a hefty buck. But in 2008, a major sportinggood company entered the novelty game, and almost immediately, coopersburgs business was cut in half. Today the Company Operates in a facility thats outdated, using a process thats pure chaos. Scott were supposed to have 3,000, which is what the orders for. Ben whoever pulled it didnt put it on the Inventory System. Lemonis while scott recently brought his kids, jackie. Jackie dad lemonis . And ben to help run the company and bring in a fresh perspective. Jackie can we talk about sales goals . Scott [ sighs ] i got to get this done today. I mean, i dont have time. Jackie whatever. Lemonis . Scott is reluctant to let them make changes. Ben theres batteries that have been sitting there for five years. Lemonis . And sales continue to slide. Ben what are we doing with those . Jackie we need to get our. Together. Lemonis if i can get coopersburg sports on the right path, we will definitely knock it out of the park. I wouldnt call coopersburg sports one of the more organized facilities ive ever seen. There are boxes stacked everywhere. Theres a fair amount of manufacturing going on, but theres no flow, no process. Quite frankly, theres no rhyme or reason to any of it. Its obvious to me there is no ventilation. How are you . Scott whats happening, buddy . How are you . Scott. Nice to meet you. Lemonis im marcus. Nice to meet you. So, tell me a little bit about what you do here. Scott we produce all kinds of licensed products for Major League Baseball. Baseballs probably the bulk of what we do. Lemonis how much total revenue were you doing . Scott our best year was about 4. 38 million, and were way down. Its like 2. 2 million. Lemonis okay. Scott and thats been part of the problem a number of Different Things the economy, a major competitor whos really stolen a lot of our business. Lemonis whos the major competitor . Scott Louisville Slugger. Itd be like you selling rc cola going up against cocacola. Lemonis right. Show me the product that youre making. Scott this is an 18inch miniature bat with a fullcolor, heattransfer logo going to the mariners. Lemonis and who makes the bat . Scott the amish and the mennonites. This is the basic item thats in every majorleague stadium. Its in los angeles dodgers, its in new york yankees in all 30 parks. Lemonis the reason im here is because scott has a relationship with Major League Baseball, and hes got his product in all the parks. Quite frankly, i dont even know if Louisville Slugger is in all the parks. Its kind of a big deal. For me, im trying to understand the economics of everything, and so, a bat like this, for example what does this cost you . Scott including the royalties, about 1. 15. Lemonis okay, and then what does it cost to add the logo onto it . Scott 20¢ at the highest level. Lemonis so, thats 95¢. And then how much are you paying mlb on a bat like this . Scott 12 , so 18¢. Lemonis and so 95¢ and 18 1. 13 . Scott 1. 13. Lemonis and what do you sell this thing for . Scott for around 1. 50. Lemonis so youre making 37¢ on this bat. Thats not great. Scott its not. Its a terrible margin. Lemonis why do you paint these in house . Scott in case we run out of a certain color. Lemonis and what about the waste . Scott the waste is minimal probably 12,000. Lemonis waste in manufacturing is when you create products that have mistakes on them, but the costs associated with those mistakes are sometimes hidden. And so, while scott tells me that the loss is 12,000, hes only counting the materials themselves. Hes not factoring in labor, the lost time to buy the product a lot more than 12,000. If youre telling me that its a 1. 13, if i source this bat, logo already on, whats it cost . Scott 85¢. Lemonis including the royalty . Scott no. Lemonis so its only 10¢ . Scott maybe 10¢. Lemonis thats the difference . And how many bats a year . Scott 300,000. Lemonis there are two specific reasons that i want to bring in the bats already painted. One, i can save 10¢ per bat if we do it. Across 300,000 bats, thats 30,000. In addition, the 12,000 in waste that its costing the company per year. Thats 42,000 reasons to not paint the bats in house. But this building has its challenges. Scott i inherited the building. My dad bought the building and the property and the business. Lemonis so, your dad started this company . Scott he bought the company. Lemonis what kind of business was this when he bought it . Scott it was a handleturning company tool handle and that was a very big business until power tools kind of put us out of the business. After owning the company for three or four years, we discovered the bat business as a result of the handle business because Major League Baseball players came here in the 50s to buy bats. At that point, we contacted Major League Baseball and told them the story. Lemonis so, you turned a toolandhandle business into coopersburg sports. Scott coopersburg sports a baseballbat manufacturer. Lemonis kind of a cool story. Scott its a very cool story. Lemonis in order for a Small Business to be successful, its gonna have to evolve and transform. And years ago, scott was able to do that when he turned a handle company into a baseballbat company. But if hes not able to go through that same transformation again and come up with some new products, i dont know if he can make it. Im fascinated by this because it doesnt look like a sticker heatpressed. Scott we have an exclusive deal for the life of the patent to produce it on miniature baseball bats. Lemonis lets go see the rest of the place. Scott all these printers are hewlettpackard printers that have been converted to print baseball bats. The printer thinks its printing paper its printing a bat. Lemonis you basically rigged this machine. Scott its amazing. Lemonis how you doing . Im marcus. Dylan good. How are you . Dylan. Lemonis nice to meet you. Dylan nice to meet you. Lemonis is this done . Dylan yeah, that ones done. Lemonis is this the only product that you print this way . Dylan i mean, weve never printed really anything else on printers other than bats. Lemonis people like to buy products that are personal to them, whether its their Favorite Sports Team or family reunions or their favorite personality. And so anytime you can take a basic product and customize it, youre going to get a lot higher margin. And thats whats gonna make this Company Money in the long run. Wendy you have 300 boxes for 1,500 pennants. Were probably gonna lose about 10,000. Jackie this is the fifth time this has happened this week. Scott this is my daughter, jackie. Jackie ill call them back. Hi. Nice to meet you. Lemonis hi, jackie. Im marcus. Nice to meet you. Jackie thank you so much for coming. Lemonis so, what do you do here . Jackie i was hired to mainly handle the collegiate market and sales, which i am doing on top of, like, [laughing] 30,000 different other things so. Lemonis and so why did you get spread so thin . Jackie i really wanted to take a lot of his plate cause i think that was the problem. Lemonis he has too many hands in everything . Jackie yeah. Lemonis shes nicely just telling you that youve jacked things up around here, and shes putting law and order in place. Jackie it needed to happen, though. Scott shes helping me a lot. Lemonis what would be your biggest complaint . Jackie i hate having to chase my order all the time and wonder where it is. Lemonis from the inbound call to taking the order to the process, theres nothing that tracks that whole process . Jackie nope. Scott program we need is very expensive, and we cant afford to buy it. Its 30,000. Lemonis its expensive, but you also cant afford to not have it because if youre not delivering on expectations, then you lose that customer. Next question how do you track all this inventory . Jackie thats something i need to talk to you about. We have a problem. How did we not realize that we wouldnt have enough boxes to fulfill the order . Lemonis how many are you short . Jackie about 1,200. Lemonis if you dont have an ordertracking mechanism, customers either arent gonna get their order filled, or theyre gonna cancel it halfway through. Its a lost opportunity, and lost opportunity is lost money. Scott and this is how the bats come in from the mennonites, from the amish. Some of the equipment, we gave them, some they bought themselves. We actually taught them how to turn bats. Lemonis how much do you owe them . Scott about 25,000. Lemonis how much debt is on the company today . Scott right now, including our line of credit and our new term loan, we have about 700,000, and im out 800,000 my life savings, gone. Lemonis how much revenue will the business do this year . Scott hopefully a little over 2 million. Lemonis and how much will you cash flow positive . Scott probably about 40,000 to 50,000 at that level. Lemonis so how are you servicing the debt . 40,000 . Scott just told me that he has 700,000 of debt. That doesnt include his payables. And he does 2 million a year in revenue. Problem is no profits. He only has 40,000 in working capital. And you cant service 700,000 of debt with 40,000 in working capital. At some point, youre gonna have a default, and things are gonna come crashing down. You know what . I have to tell you, im impressed by the fact that you have an mlb relationship. But im concerned about the fact that youre relying solely on that. Scott were only an mlb company. Lemonis so, right now, youre a seasonal business. Have you had to lay people off . Scott we do it every year this time of year because we dont have that fourthquarter item. Lemonis why havent you fixed that seasonality . I mean, ill tell you, the biggest challenge that you and i are gonna have is figuring out how to vary up this business model, or your lights are off. [ chuckles ] is this what you were talking about . This is your tracking system. It looks crazy. Jackie its unfortunate. Lemonis hows working with your dad . Jackie me and my dad argue all the time. He can definitely be stuck in his ways. So many of our skus are bat items. I want us to be not so seasonal. I want definitely some new, more innovative products. Hes been doing this for so long, that all these products, i feel like, are just sacred to him, and its so hard to let go of that. And i get that. I mean, i know theres, like, an emotional tie to the products that have put us through college. And you know what i mean . Its business, and you cant take it personally. You have to just move on. Scott thats my wife, wendy. Lemonis nice to meet you. Im told you have a son that also is in the business . Scott thats benjamin back there. Lemonis ben . Ben hi, marcus. Lemonis how you doing . Im marcus. Ben nice to meet you. Lemonis nice to meet you. And so, whats your role here . Ben i mainly help manage these guys in here, keep things moving. Do a little bit of everything right now. Lemonis and wheres your Raw Materials . Ben Raw Materials are in the warehouse. We run out to the warehouse, grab the Raw Materials, bring them in here, and we allow that to dry. And then they return to that room again. Lemonis that sounds kind of. Ben yeah, its all over the place. Thats what i want to change. Lemonis you know what i feel like when im in this building . Like a mouse looking for his cheese. You start in one room, and you have to visit at least eight of those rooms to finish the product. This place is wildly inefficient. Ben theres not a flow. Lemonis why doesnt your dad want to get it fixed . Do you ever talk to him about it . Ben hes kind of just like, you know, stuck in his old ways. Its just how weve been doing it for 20plus years. Lemonis right. How frustrating is that . Ben its pretty frustrating. Without having space to store things, youre just gonna be stepping over stuff. Lemonis theres stuff piled everywhere. These ceilings are so low, they couldnt even add the right inventory racks to maximize space. They dont even have a loading dock, so big orders, they have to be walked out of trucks. This facilitys a mess, and in my opinion, its also a fire hazard. Why do you stay here . Scott i just dont think we can afford to move. Lemonis how much is it a month . Scott 1,300. Lemonis which is cheap. Id rather you paid. 8,000, but the process was perfect and you didnt lose orders, and you didnt have materials go bad, and you kind of trip over dollars to pick up nickels. Scott thats what i need. Cashflow savings is what im looking for. Hello. Lemonis i thought maybe we could all chat a little bit about what do you guys have invested in this business . Wendy pretty much everything. Scott these kids lost their inheritance money that went in to cover payroll in times where we couldve laid people off, and we kept them on. Lemonis do you financials . Scott i do. This is what my accountant and i had done based on this years sales, okay . Lemonis how much money will the business lose this year . Scott well probably break even or lose a little bit if we dont do more than 2 million this year. Lemonis 285,000 is your total payables. Scott i mean, a third of it is seriously past due. Lemonis so, the bank loans are somewhere around 630,000. Scott mmhmm. Lemonis and so, if i take the accounts payable and the bank loans, im pretty close to a Million Dollars. Scott 900,000something, yeah. Lemonis were drowning in debt right now. Wendy my kids and i, we all agree as a family he needs help. This might be it. Lemonis are the kids here now . Wendy jackie . Lemonis business like this has to constantly evolve. And so, what were talking about is kind of the number of issues that exist inside the business. Jackie i mean, just based off of our conversations at every dinner table, were wearing too many hats, and were involved in so many things. And i think that thats gonna, like, run us ragged after a while. Lemonis does he give you the opportunity to do your job fully . Jackie no. Ben thats the thing that bothers me the most. Lemonis 25 years ago, scott came in, and he saved this company. Now scott needs to let his kids do for him what he did for his father. If its okay with you guys, id like to spend a minute with your parents just alone if thats all right. Jackie mmhmm. Lemonis thank you. Scott [ sighs ] lemonis lot of stress. Scott im tired of it. Lemonis you okay, wendy . Scott [ sighs ] wendy [ voice breaking ] well, its just highly unusual for him to talk this way. So, it really hurts. You know, it just its scary to me because it really makes me realize somethings really, really wrong. Lemonis i know that you put on a good face for your kids. Scott we need help. Thats it was their idea to call you. Lemonis the kids idea . Scott yeah. [ sighs ] lemonis ready to get down to business . Scott believe me, ive been through so much i can handle anything. Lemonis the issues that i see right now is your process is totally broken. Its maybe one of the worst ive ever seen ever. Product innovation we need new things because you can only sell so many bats in the world. Scott a mini bat will be around forever. Lemonis thats the base that pays the light bill. Scott well, we do have other things from minor league. We do the hands. Lemonis if you werent selling your product in all the stadiums, i wouldnt be here. But in the long run, you cant make it just on mlb. Its too seasonal. So, my offer is the following. 630,000 to build out a new warehouse, put the Inventory Systems in place, and then pay off all of the payables. For that, i would want to be 50 50 partners with you. Scott i mean, youre asking for 50 of my business. Thats 30 years of my blood and sweat. You have to have more skin in the game. Cowboy up. Lemonis whats gonna be my return on my investment in the first couple years . Zero. Thats too much risk for me. Scott if we put a half a million to a Million Dollars of sales on this business in the next year, we can turn this thing around. Lemonis but you need the 600,000 to do that. Scott i think heres the way i look at this. When a doctor wants to break into a practice, he buys his way in correct . To become a partner. Lemonis youre not interviewing me, im interviewing you. Im not a bank, im not a consultant, and im not the fairy godmother. I dont just sprinkle money around. Scott i think thats a lot, marcus, for that amount. Lemonis if your business is in trouble and you need my help, log on to. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Bleech aww awww its the easiest because its the cheesiest. Kraft for the win win. Liberty mutual customizes your Car Insurance, so you only pay for what you need. I wish i could shake your hand. Granted. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. 6, 7, 8 big dreams start with small steps. But dedication can get you there. So just start small. Start saving. Easily set, track and control your goals right from the chase mobile® app. Chase. Make more of whats yours®. The ncome on. Y glc. [ cars honking ] its so late. Yay. It fights traffic. No parking. I told you. Oh, a spot hold on. It fights tension. Seriously, did you take my phone . Passenger light on. It even fights. Fighting. Innovation that keeps people together. The 2020 glc. Lease the glc 300 suv for just 479 a month at your local mercedesbenz dealer. To the wait did frowe just winners. Prouders everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy a new samsung note. Click, call or visit a store today. Lemonis so, my offer is the following. 630,000. For that, i would want to be 50 50 partners with you. Scott i think thats a lot, marcus, for that amount. That kind of an offer lends itself to 30 , not 50 . Lemonis im willing to lower my percentage. Im not willing to put any more money in, and so 630,000 for 30 of the equity and financial control. Im gonna want a 3 royalty on every product we sell. Scott forever, or until your debt is repaid . Lemonis forever. If the sales only go up to 2. 5 million, my 3 royalty will be about 75,000 a year. With my investment being 630,000, thats a pretty nice annual return. But what they also have to realize is that im now motivated to drive those sales. The more we sell, the more we both make. I know how important this business is to you and your family. I also know how i want to get a return on my money. We got a deal . Scott we got a deal. Thank you very much. I appreciate it. Lemonis so, i plan to take 150,000 to pay down debt, 180,000 for pastdue payables, 150,000 to build out a new facility, and 150,000 for working capital and product development. Lemonis got a lot of work to do. Scott lets do it. Lemonis well see you soon. Scott thanks. Appreciate it. Lemonis i wanted to let everybody know that the family and i have made a deal for 630,000. And while ive negotiated for 30 of the business, im gonna be 100 in charge. First of all, this is a great business. I believe in the people. What i dont believe in right now is the process. Today, the system doesnt work. We need to have the right process not only to make the product, but to store the product. Were gonna go ahead and get a new facility cause this one doesnt work. Woman yeah. Lemonis this facility doesnt lay out right, and theres no way to even check the orders. Literally, it looks like total chaos everywhere. I want to put an Inventory System in place, i want to put an Accounting System in place, and what im worried about is the fact that we cant just be a baseballbat company. Were gonna need new products. Were gonna use the technology and the resources we already have, whether its the printers or whether its the wood source we have. This companys been around since 1791, but in order for this company to be successful, they have to diversify. They cant just sell one product and have a relationship with one company. They have to do more. They have to expand their product line and be less baseballcentric. And they have to broker more licensing deals with other leagues and develop new relationships with other big retailers. Were gonna have new and innovative ideas. Scott seems a little daunting right now. We are heavily dependent on the baseball business. Lemonis i dont feel the need to swim upstream against Louisville Slugger. Lets not compete with somebody thats the official baseball bat. Were not getting out of the baseball business. Scott right. Lemonis were gonna try to be creative and innovative and look for new ways. Are you guys excited . Man very excited. Woman yeah. Lemonis okay, we got a lot of work to do. Lets go. [ applause ] jackie all right. Thank you. Lemonis i wanted to meet the family at this facility that would be perfect for coopersburg sports. We need to move now. The layout at their current facility just doesnt work, and its toxic, and we need to make the move to plan for the future. Well, ill tell you what i like the most i could actually breathe in here. [ jackie and ben chuckle ] and so, how i envision this, scott, is youd have a sorting area, youd have finished goods, and then theyd leave out the back so, in the front, out the back. Scott how many years are you thinking about . Lemonis five, but im gonna want the first year free. I can tell you that. Jackie is that normal . Lemonis is it normal . It is with me. [ laughter ] how you guys doing . Im marcus. Jerry marcus, im jerry. Lemonis jerry, how are you . Jerry very good. Nice to meet you. Jeff jeff. Lemonis nice to meet you. Couple struggles that i have. I think the fact that its not truly a total clearspan building changes things a little because your space layout now has to work around poles, and the way you move your forklift and your shelving changes for what we need it for. How longs it been sitting empty . Jerry about two and a half to three years ago. Lemonis so, its been a while. Jerry yeah. Lemonis whats the term youre looking for . Jerry for a fiveyear term on the lease. Lemonis so id be willing to start with a sixyear term, then two more five options. And so im willing to pay you 8,000 a month in rent. But i would need that first year for free. The buildings been sitting empty for three years, and so. Jerry six months of free rent . Lemonis go to nine, call it a day . Nine months . We got a deal . Jerry we got a deal. Lemonis while moving to this facility may be more efficient, it also makes us more profitable. The difference in rent is about 80,400 a year. This Company Sells over 300,000 bats a year. If im able to buy 10 pallets instead of 1, instead of my bats costing me 1. 15 a bat, theyll cost me 85¢ a bat. So, while my rent went up by 80,000, my gross went up 90,000, putting me 10,000 ahead. And thats just one product. But now comes the hard part. In order for this business to be successful, i have to challenge the family mainly scott to come up with some new products. Im nervous. The key to this is new products have to be developed. We got to get the products right, we got to get rid of the paint, we got to find other licenses we got a lot to do. Thats the thing thats gonna keep me motivated and keep me excited. If i feel like you guys arent delivering that, its gonna freak me out. Jackie the stuff that isnt working, we just need to nix it. Like, its time. This batandball set ben i think thats kind of a dying product. Jackie yeah, its not selling. Right now the latest trend is athome tailgating for tailgating parties, and that could be in all sports. Maybe some home decor. We could do a pizza tray, a wing tray, a salad bowl, little mini bowls. Its endless. Ben stretching outside just wooden bats is something that dads not gonna be real receptive to. Jackie i think hes gonna be nervous. Ben i think dad has a problem letting go, whether its been successful or not. Scott i want to get marcus in here. Hes afraid that our business is so focused on the mini bat. And as he said, toetotoe, we cant compete with Louisville Slugger. Marcus, you got a minute . cause im a little bit upset, and i want to talk to you. Theres something that you have to understand about our competition. Youve got competition in your business. Everybody does. Lemonis im suggesting that you dont double down and chase something that may look good today, but i want to be building the business for five years from now. Jackie you guys want to talk about new products that we want to come up with . Lemonis yeah. Yes, please. Jackie i mean, is the point here that were kind of, like, wanting to get away from the bats . Scott wait, i dont want marcus to take his focus off the bats right now. Lemonis i think chasing Louisville Slugger is like barking up a dead horses ass. Well, lets hear about these other ideas. Now, are you in agreement that we need to have products outside of bats . Jackie absolutely. I need more products to sell. Even on our collegiate catalogue, one of the entire pages is bat items, and baseball just isnt that big in college. Lemonis okay. I dont know what scotts father was like, but he had to be a little reluctant, which is why his son, scott, had to come in and take it from a toolhandle business to a baseballbat business. Now that scotts kids are here, he needs to let them take the business to the next level, as well. I want to understand where the opportunity is. Jackie we just had an appointment with penn state, and they were extremely helpful. They gave us an entire list of needs. Lemonis cause thats the kind of research i want to know. Jackie lighters. They wanted coasters. We were thinking of looking into a footballshaped cutting board. Lemonis cups, mugs. Since you guys are really driving all these new ideas, i want to see 20 ideas of things other than bats. Scott he wants to take the focus off the mini bat, and i dont agree. Ive been doing this for 25 years. Lemonis for you to have this huge delusion that youre gonna beat Louisville Slugger in the long run, its just dangerous. Holy. Scott. My moneys not safe. Yeah, ive had some prettyeer. Prestigious jobs over the years. News producer, executive transport manager, and a beverage distribution supervisor. Now im a director at a Security Software firm. Wow, youve been at it a long time. Thing is, i like working. What if my Retirement Plan is i dont want to retire . Then lets not create a Retirement Plan. Lets create a plan for whats next. I like that. Get a plan thats right for you. Td ameritrade. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Introducing a razor that works differently. The gillette skinguard. Designed with a guard between the blades that helps protect skin. It guards against razor burn on the neck and irritation on the face. Get the shave youve been waiting for. Gillette skinguard. Lemonis the fact that they were smart enough to come up with technology that differentiated themselves is one thing, but this technology can be used on other things in addition to bats. How versatile are these machines . As an example, if you wanted to print on this. Ben yeah, use this machines over here. Scott we cant just print anything on here. The printhead is set a certain height above the bat, so if we put something thicker in, it would hit it. Ben but i can do that. Lemonis lets try it. Lemonis this is for my edification so i can learn. While scott is usually the most optimistic, salesy person ive ever met, when it comes to trying new things in innovative ways, hes not. Ben check out how cool this thing looks. Scott did it cut through, ben, or just. Ben its just taking the top layer of paint off. Lemonis youre really running two business models. Business model one is here are the products that coopersburg is in, we have the licenses for. Model number two is coopersburg embellishment takes other peoples products and makes them better for a fee. I like this one cause this is how i make money. Ben yeah, i like that idea. Lemonis today, im spending some time talking to scott about the importance of putting processes in place on his finances. In order to play with the big boys, you have to have working capital. Whats your relationship like with your current bank . Scott we just switched banks recently. The previous relationship was not good. Lemonis you could find a bank thatll help you, it makes a big difference. You know, when i first started out, i started buying all these Small Businesses. My bank came to me and said, look, how are you gonna manage the people from 1,000 miles away . And so they put together a system that really allows for it, and it was chase. Ink by chase is a credit card that allows you to manage and see expenses. For me, its about visibility. Scott this is great because youre creating spending limits for people, rather than letting things get out of control. Lemonis in this organization, right, you have sales reps all over the place. And so it allows you to see, daybyday, what are the reps spending. You can see account balances. You can know when your payments due. We have to know how much money we have, what were spending it on, and keep track of our expenses at all times. And most importantly, as the business grows, you can manage the working capital to help it grow. And jackie pulled me aside to give me an update on the products i asked her to work on. Jackie we were thinking of doing higher end money clips, ashtrays, seat cushions. Lemonis i like these ideas. Pull the ones out of here that either utilize woodworking or uses the technology we have to print on things, okay . Jackie okay. Lemonis while on a business trip to pittsburgh, i wanted to visit a few parks and talk to Major League Baseball. Not only did i want to see the coopersburg sports product, but i wanted to see what other products we could expand into. After visiting a few parks and having a meeting with Major League Baseball, i was disappointed about what i learned. Scott, i have to tell you, im thrown off by learning that this bat isnt everywhere, and thats the reason i made a deal with you. You told me that you were in every single park, and here was your signature item. Scott we are in there. Lemonis yes, you had a competitor. We were gonna try to figure out how to beat him. But now im finding out that youre only in five or six parks. Scott we were in 30 parks, and we are in 30 parks, but were in every park with something, but that item, weve lost a tremendous amount of business. This is the basic item thats in every major league stadium. Its in los angeles dodgers, its in new york yankees in all 30 parks. Lemonis i didnt think i had to interrogate you specifically, but when you say to me, were in every single park, and this is the item we sell. My moneys not safe. For you to have this huge delusion that youre gonna beat Louisville Slugger in the long run, its just dangerous. Holy. Scott. I feel like youre hustling me. Ben sometimes i just dont know what to do. And to see him feel hopeless, its. [ voice breaking ] i mean, its hard. It is. Scott i just feel like i failed. Well, if youre celebratingt by eating reeses. Ween . Then no, youre actually late. Not sorry, reeses. Still fresh. Unstopables inwash scent booster downy unstopables why accept it frompt an incompyour allergy pills . E else. Flonase sensimist. 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Ecommerce deliveries to homes hey google, fill 150 milliliters from faucet. Voiceiq technology. See what delta can do. Lemonis for you to have this huge delusion that youre gonna beat Louisville Slugger in the long run, its just dangerous. Holy. Scott. The problem with scott is that hes in denial. Hes not realistic about what trouble hes in. Hes not realistic that he doesnt let jackie and ben do the things they need to. In order for this business to move forward, hes got to come to grips with what is. Does this company have the ability to do other things other than Major League Baseball . I dont want to be in anything thats not proprietary and thats not insulated. And this technology is the only insulated thing you have. How are you, sir . Im marcus. Jerry im jerry weaver. Nice to meet you. Lemonis hey, jerry. How are you . I wanted to take a drive to weaver woodworking in the heart of Amish Country to see where the bats are made. Can we see the process, like, from here . Jerry sure can. Lemonis i want to do it. Like this . Scott . And over. Like willy wonkas chocolate factory. Lemonis the key is is that its up to you to figure out what else youre gonna sell. Weaver woodworking isnt just about seeing how the bats are made. Its finding out what else we can make there. These are some of the finest woodworkers on the planet. Scotts got to clear his head and realize how coopersburg sports could better utilize this resource. What is this . Why does this look like its a leg for a table . Jerry it didnt get the ends trimmed off. Lemonis but i mean, it looks like it could be a stool. Scott theres an idea, yeah. Lemonis do you have any more of these . Jerry yeah. Lemonis and so, i mean, like, if we could somehow have, you know, a stool obviously, it has to be the right size and the right shape. Then you essentially could put yankees or red sox. Scott like a cocktail table . Like a little cocktail table . Lemonis well, or a stool. What does one of these cost . Jerry 8, delivered to his door. Lemonis each baseball bat costs 8 in Raw Materials and another 4 each to actually turn them. Thats 48 for the four legs. And add another 20 for the top. Thats a total of 68. A licensed, handcrafted, customized stool like this could sell for as much as 200. Thats over 100 margin. Ben yeah, you could make a bedroom set for a little kid. I mean, you can do a whole line like that. Lemonis ben is just so much more open to new ideas and looking to the future. I wonder, if he actually had scotts full support, what the future may hold. These are good people. Ben mmhmm, yeah. Lemonis and theyve put a lot on the line for you guys. Ben this is where it all starts. Lemonis do you think your dads willing to change . Ben yeah, at this point, its a massive amount of stress thats been going on for too long. Sometimes i just dont know what to do. Lemonis did you know this . Scott lot of sleepless nights. It reflects on everybody. It reflects on him, on his mom. They try to take the load off of me, and then that makes me feel worse, i think. You know, it raises my guilt level more. You know, i started this out of nothing. This was an idea. When i went to Major League Baseball, they wouldnt give me a license. They said, go away, kid. I was 23 years old. And i kept at them. I was being the salesman, and i kept at them, and i kept at them. And after probably a year, they finally said, what will it take to make you go away . And i said, give me a license, and they did. Thats how it all started persistence. Thats one of my best qualities. I never wanted to quit or give up anything, and i really feel like this is one of the toughest things ive ever gone through in my life. Lemonis the guilt why do you feel guilty . Scott i dont know why. I shouldnt. [ voice breaking ] you know, hes seen me, as a kid, work 12 hours a day. When they were little, id come home to cold dinners. My wife would be playing with the kids, and id miss it all. But i was building a business. [ sniffles ] ben and to see him feel hopeless, its. Its hard for me. Its not the first time ive seen it. Its difficult. Scott [ sighs ] i just feel like i failed. Snow leopards are almost impossible to find, with ai we can protect what we cant see. But we need to know where they are, because they are threatened. Our camera traps allow us to have and eye in the mountains, taking thousands of pictures. Microsoft ai scans through all these images, and separates Snow Leopards from everything else, in ten minutes instead of ten days. It gives us time to do better research, and save this threatened species. Herebuy a bunch of reeses. Ck. uh huh, there you go turn off all the lights in your house. yeah yeah trick or treat and then just dont answer the door. Not sorry, reeses. You spend days researching bed sheets. And weeks picking a dog bed. So why would you settle for just any bank . Just do what you do with everything else. Ask the internet ask your friends. Ask your co workers. Were pretty sure theyll send you over to us. Because were not just a bank. Were an ally. Ally, this is pamela how can i help you . For big savings on the hunting equipment you need and brands you trust. Like cabelas, redhead in true timber camo, and black out. Your adventure starts here. So, every day, we put our latest technology and unrivaled network to work. The United States Postal Service makes more ecommerce deliveries to homes than anyone else in the country. Ecommerce deliveries to homes burger i want a sugar cookie i want a bucket of chicken i want. Its the easiest, because its the cheesiest kraft. For the win win. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Lemonis listen, one thing you have to accept you are not a failure. Scott well, i want to stop feeling that way. Lemonis well, thats why im here. Scott and i probably hung on too long to some of the things youve talked about and not reacted quickly enough, thinking somehow i can fix it. And sometimes, certain things you cant fix. Lemonis the only thing that youre guilty of is just not being able to handle the curve ball no pun intended. And now youre at a fresh place, and you do need to reset. Scott yep. Lemonis i feel like i always struggled just scratching the surface with scott. I never feel like hes real and open with me. Until now. Scott appreciate it. Lemonis okay, buddy. All right . Ben yeah. Lemonis your task is to come up with some new stuff. This could be a great staple for us. Scott cause we have the foundation. We have the product. Lemonis okay . Scott okay, and thanks. [ cow lows ] lemonis im back in pennsylvania, and the familys come up with prototypes for about 15 new products. Hey, guys. Jackie how are you . Lemonis good. Im excited to see what theyve come up with. How cool is this . Scott thats the whole package. How you been . Lemonis how are you, buddy. Scott good to see you. Jackie how was new york . Lemonis it was good. Lemonis how are you . This display looks nice. Scott isnt it nice . Lemonis really nice. Scott thats our typical tradeshow setup. Lemonis i love it. Scott this is my favorite. Isnt it cool . Its a little bat rack for your toothbrush. You could put any toothbrush in there, but thats the concept. I think it turned out so cute. Bed bath beyond will definitely carry that. Lemonis thats a nobrainer. Scott and theres the stool. Thats new. What do you think . Lemonis love it. This looks awesome. Scott pretty neat . Everyone seems to love that. Lemonis and i like what you did here. Scott it looks more wood, authentic, i think, yeah. You like it . Lemonis yeah. This stuff came out great. Scott so, jackie, why dont you explain the kitchenware. Jackie homegating is like a big thing thats really in right now, so were trademarking the name to basically be our homegate, like, a partyware line athome tailgating. Thats, like, really hot right now. So, were keeping it all wood. Lemonis this is awesome. It looks really good. Honestly, i think it all looks really good. Jackie yay im so excited lemonis todays an exciting day. Were starting construction on the new space, and i took scott to check out the progress on the new facility. Jerry how you doing . Lemonis good to see you. It looks good. Scott amazing, isnt it . No, its gonna be great. Its gonna turn out nice. Lemonis its gonna take a few more months for everything to be completed here. So, my goal is to establish new accounts and eliminate the seasonality. Ive scheduled a meeting for scott and the family to pitch their new ideas to a friend of mine, johnny morris, who owns bass pro shops. And more importantly, i want to see if scott can let jackie and ben finally take the lead. When you think hunting and fishing and outdoor, this is the real deal. When we first met, i told you that i did not want you to be a baseballbat company only anymore. I rarely like to mix personal relationships and business, and johnny morris, the owner of bass pro, is a friend of mine. And so i dont want to put any pressure on you, but i cannot have you mess this up. cause this is a game changer. Scott this is it. I think theyre gonna like what we have to show them. Lemonis so, lets go inside. All right. I wish you guys luck. Jackie this is crazy. Lemonis i want to take them inside of the bass pro shops. I want them to understand the magnitude of not only this business, but the opportunity. Isnt that awesome . You can go fishing. This account is important in forcing the development of new products, and it eliminates the risk of seasonality in our business. Wendy okay, good luck, guys. Lemonis today were meeting with kelly, one of the buyers for bass pro shops, and jim, the store manager. Jackie thank you guys so much for making time to meet with us today. Were really excited to be here. Scott i want to tell you briefly a little bit about us. Were familyownedandoperated, one of the oldest woodworkers in america. Our history goes back to 1791, which is pretty interesting. In 1991, we became a licensee with Major League Baseball, and now, with marcus help and his partnership, weve kind of morphed and evolved into a fullline woodproducts company. And the purpose of our visit today is to show you what we do and what we can do with the existing technology that weve got. Yeah, that is what sets us apart. Some of this technology is very, very unique, and its patented, and its not on the market today right now. So, i think id like to start with, for example, this is what you call a fish whacker, okay . Jackie [ chuckles ] jim as a fisherman, to me, that. That would seem kind of big. Scott too big. Jim and it would be clunky. Scott okay. We do a lot of ponchos container loads, hundreds of thousands of ponchos in our other business. Lemonis so far, it doesnt look like bass pro is responding to anything that were pitching. Its definitely not looking good. Jim as far as having i would have Something Like that as an emergency. If im going out hunting or fishing, and i know its gonna rain, im not gonna wear a poncho. Kelly yeah, i. It doesnt make sense to me. Well, if youre celebratingt by eating reeses. Ween . Then no, youre actually late. Not sorry, reeses. So you dont have to stash antacids here. Tc and take control of heartburn. Here. Or here. Kick your antacid habit with prilosec otc. One pill a day, 24 hours, zero heartburn. You wanna see something thatamazing . Ing. 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Jim those like i said before if im going out hunting or fishing, and i know its gonna rain, im not gonna wear a poncho, personally. Yeah, i. It doesnt make sense to me. Lemonis how about this stuff here . Why dont we keep going . Scott this is a coat rack that we actually fashioned out of the shape of a bass. Jim it has broader applications. Kelly i think thats a great idea. Jim i do like the knife. Im thinking downstairs there are fillet knives with a wooden handle on it. Ben is there anything on the wooden handle right now . Is it just blank . Jim its blank, yeah. Scott so, possibly brand. Kelly in general, the logo aspect is what appeals to me. Lemonis personalization. Kelly exactly. Jackie and something im kind of interested in learning is what are your needs, like, as a company . I know theres a trending female presence. Its not just males. Like, i kind of want to learn a little bit more about your demographic. Kelly our demographic is its very broad. And that women demographic is definitely growing significantly. Scott this is what we call homegating. Its a very popular trend now. Jackie can explain to you what we do here. Jackie basically, a big trend in Sports Licensing would be athome tailgating, people gathering together, the family coming around. I just feel like the natural look of this appeals to the bass pro customer, and its kind of more of a highend look, as well. The quality is just outstanding, so i think thats an item that would sell very well. Kelly promoting our brands is very important. Ben youre talking about branding anything, like, this is things we can do at our factory, so. Kelly whats the lead time on Something Like that . Ben probably do that easily within 30 days. Kelly i like this a lot just because i think it does appeal to that female customer. Jim i think Something Like that can be merchandised in a lot of places, too. It could go in multiple areas of the building. Kelly i dont know of anything like this that were currently offering. Lemonis seems like we have some winners. Kelly absolutely. I think theres a lot of opportunity here. I think you guys did a good job. Lemonis well, listen, i appreciate you guys taking this meeting and taking the time. Jim yes. Kelly definitely. Lemonis im really excited that scott is giving jackie and ben an opportunity to shine. Well, whatd you think . Scott i think we did great. Lemonis i think you did really well. Jackie and ben, i thought you guys did a great job. And what i liked most about what you did you let them do their thing. We had that talk in the parking lot at weaver, and i dont know if they heard it or not. Scott i dont think so. Lemonis but i think that scott felt in that moment that he let you guys down, and that he was a failure, and we talked about it. I think youve proved as the leader that by no stretch of the imagination, in any universe, were you ever a failure. I think this is just an example of things to come. This is one meeting, one day. This could be a milliondollar account, no problem. Jackie thats what hes most excited about. Im so grateful that you picked our company, and i just am excited to see where it goes from here. Lemonis i look forward to that partnership. Scott we appreciate everything. We really do. Lemonis i look forward to it. Scott thanks, man. Lemonis tonightlori hey. Rofit. Lemonis two years ago, i bought an interest in mr. Green tea ice cream. Young man this is actually amazing. Lemonis and while weve been able to increase sales by nearly 100 . Is that your car . Michael thats my car. Lemonis . Success has spawned a whole new set of challenges. Michael the entire future of the brand is based off of my vision. Richard thats something im not so sure of. Lemonis the owners son is pushing for a piece of the pie. Michael i think 7 to 10 would be more than fair. Lemonis but his cavalier attitude isnt helping his case. Michael who cares about a 10,000 upfront cost . Lemonis i think we all kind of care about the 10,000. And now a family feud is brewing in the business. Richard whats important to me is the most important thing. Michael youre not making any sense