Transcripts For CNBC The Profit 20240714

Travis this is who we are lemonis if i cant help these guys return to their roots. So you did 1 million with the watches, and then youre like, thats too much. Brad if its not broke, dont fix it. Lemonis . This business will stop ticking for good. Travis walk away, then. Lemonis my name is Marcus Lemonis, and i risk my own money to save struggling businesses. Were not gonna wake up every morning wondering if we have a job. Were gonna wake up every morning wondering how many jobs we have to do. Its not always pretty. Everythings gonna change. Everything. But i do it to save jobs and i do it to make money. This. Lets go to work. Is the profit. In 2010, lifelong friends trevor jones and Travis Lubinsky founded flex a watch company with a cause. Trevor we make watches that give back. Every purchase helps provide meals for children in need. Lemonis with their positive message, a reasonable price point, and bright, fun colors, the company stood out in a crowded field. Travis the watches are actually all gonna be interchangeable. Its also a great upsale opportunity. Lemonis and soon, sales were approaching the Million Dollar mark. Travis the components will be here in two weeks. Theres half a Million Dollars of these watches sitting around. Lemonis but when flex started introducing new styles, customers stopped buying. Travis what orders do you need to fill . Brad i mean, no ones committed yet. Travis this is ridiculous, bro. Lemonis now their revenue is in free fall, and their once healthy profits have turned into mounting losses. I have been looking for an accessories business to pair with my fashion brands, and flexs social mission just increases its appeal. If i can get these guys back on track, we should be making money and a difference in no time. Hi, guys. Brad hey, hows it going . Lemonis im marcus. Brad brad. Nice to meet you. Trevor trevor. Lemonis trevor, nice to meet you. Travis im travis. Lemonis how are you . What are you guys doing . Brad just going over inventory. Lemonis is this the whole office . Travis youre looking at it. And then the warehouse is downtown. Lemonis okay. Are those the watches . Travis yeah. So, we, basically, started with an interchangeable watch. So the face pops out of the band pull back, pop up. Lemonis its a cool watch. What does a watch like that sell for . Travis 35. Lemonis these are nice looking watches at a great price point. Travis we wanted to do an accessory that was bright, that could match with all all Different Things hats, shoes. Lemonis this is a comfortable watch. Travis its lightweight. Its durable. Initially we had 10 colors. Each color represented a different charity, that we partnered with to give back 10 . Lemonis thats pretty slick. Travis yeah, right . Trevor we wanted to do Something Different, and no one was doing charity in the the watch space. So, we started partnering with charities, and people loved it. Lemonis are these still made today . Travis no, thats the first generation, five years ago. Lemonis so thats first generation. What happened after that . Wheres generation two . Travis so, we made a sport version at 119. Lemonis i look for watches that arent expensive. I dont like expensive watches. Why did you change your model . Travis well, we wanted to fit in with retail stores, and they said, you need to be about 100. So, that watch for the retailer, buying it at 15 and selling it for 35, they just werent getting the right ticket per door. Trevor they told us to make a higher price point watch. It wasnt gonna make it into the case. Lemonis at 35 . Trevor no. Lemonis so, you changed your whole Business Model over retailers asking you for a higher price point. Travis yeah. Lemonis so, this is generation two. Is there a generation three . Travis you see right here . Were trying to profile it now. So thats gen three. Lemonis what does this retail for . Travis this, specifically, had to go backwards now, to go 65 to fit in between. Lemonis and so you just dropped the price, thinking you were finding a hole in the market. Travis yeah. Lemonis wheres the charity angle on this generation . Brad a lot of people dont realize we still do the Charity Aspect. Lemonis i think this is a total mess. It doesnt feel onpoint with the brand. If you guys have a mission, you should stick to your mission. This is what happens to a brand when they try to appeal to retailers. Their first generation watch had great colors, had great story, had a Charity Aspect, and then they, all of a sudden, changed directions. And then they wonder why it stopped working. Whos in charge of the three of you . Trevor travis and i own flex together. Travis and my brother came down and he was, like, the shipping manager. Lemonis oh, you guys are brothers . Brad yeah. Lemonis what do you do now for the company . Brad im the general manager. Travis we each own 41 . Lemonis okay. So 82 between the two of you. And then theres somebody else that owns 18 . Travis oh, we have an investor. Lemonis what are your guys individual roles . Trevor so, im the creative. Everything that you see flex, whether its a video. Lemonis so trevor has marketing. Travis yeah, and trevor sorry, just to jump in trevors visual. I source all the components. Kind of work with the factory to figure out what can i get the quickest at the most affordable price. Lemonis do you literally do it like that . Travis yeah, literally. Lemonis travis says he does everything fast and on the cheap. Yeah, thats obvious. It shows. How much revenue does the business do . Travis 500,000 after we launched. Lemonis thats strong. Travis yeah. 979,000 the next year. Lemonis getting stronger. Travis and then we changed the product. Our sales dropped to half a million. Lemonis because of generation two, sales went down. Travis yeah, they dropped 50 . Lemonis so, how much business did you do last year . Travis 300,000. Lemonis and what did you end up making . Travis we lost 70,000. Lemonis now, who funded the loss . Travis we all did. Just personal stuff. Lemonis so on your personal cards . Travis yeah. I mean, right now, its 70,000 were in debt. Lemonis im a big believer that numbers dont lie. The further they got away from their original story and the Charity Aspect and started making watches that werent fun look like a watch you could buy on a Street Corner the worse their numbers got. What gave you guys this idea to get in the watch business . Travis so, his mom ran a Breakfast Program in mexico. Lemonis okay, a food program. Trevor yes. We would go down there and volunteer, and so we wanted to make an impact with something that we really felt was cool and affordable. Lemonis is your mom still doing the Breakfast Program . Trevor um. She was until she she got Breast Cancer eight years ago. We lost her three years ago. Lemonis she passed away. Trevor yeah. Lemonis what was your moms name . Trevor karen. Lemonis is your moms name incorporated in stuff . Trevor no, weve actually talked about that, but were just not able to go there yet. Lemonis how do you keep her momentum alive . What do you guys do to do that . Trevor nothing. We started as a purpose brand, but i think wed be more of surfbeachy brand. It just didnt feel right pushing a story of this watch will provide meals for children in need. We wanted to make sure that people knew that it was still a cool watch and not just a donation piece. Lemonis the story that trevors telling me has confused the heck out of me because in one sentence hes telling me that it was about his mom and the charities, and the next minute, hes telling me about surfing brands and cool things. So, i wanted to get the actual story from him. I think the fact that you have that as your purpose is a very big deal. Youre driven to have this succeed because thats your connection to her. Trevor i dont think about that. I just i think ive pushed it out. Losing her is just i havent, like, dealt with it, you know . Im just bitter. But yeah, we keep moving, for sure, [ voice breaking ] cause she would love that. Lemonis i lost my mom, you know, not too long ago. Trevor i didnt know that. Lemonis yeah. You know, i appreciate i think thats always tough. An, but you gotta deal with it, you know that, right . Trevor i do. Lemonis and the way to do that is to have this business fulfill what she wanted you to do with it. Ii feel bad for him. Look, i get the fact that trevors struggling with this whole thing, because, in his mind, the Charity Aspect connected to the watches is a direct connection to his mom, and its tough for him. But its had a direct impact on business, and trevor needs to deal with this because it hasnt been good for him either. All right. Lets head to the warehouse. Trevor all righty. Travis hey, guys man hey lemonis how are you. Im marcus. Nice to meet you. So, how did you connect with them . Travis our office used to be two blocks away. Lemonis okay. Travis we came across this building, walked in, and said, hey, hows it going . Within five minutes, we were creating a new watch. Lemonis what i just heard seemed like speed dating for business. Im gonna meet you in five minutes, were gonna do a deal together. Maybe a little due diligence, maybe a little shopping, maybe a little research. Not for travis. As they developed new products, they would come sit down with you, show you a sketch. I would wanna see that whole process. Naim yeah, lets do a tour. So, this is a familyrun business. Weve been doing this for about 15 years. All of their product is just here. I ship it out for them. Lemonis who came up with the box design . Naim well, we actually were in a rush and we s lemonis it looks like that. This box takes the value way down. When this is at point of purchase, the packaging is gonna be more important to me than the watch itself because this is a commodity business. And so you have to find ways to differentiate yourself. This is one of them. Is there anything patented about the product . Travis no. Lemonis nothing proprietary. Anybody could knock it off. Travis and to get a design patent is like, takes years. So, ill show you the process of building a watch. We pick a shape. Step two is the band. What kind of band does it go with this casing . Colors wouldnt matter. Nothing would matter. Then well pick the movement. Lemonis this feels a little on the fly. I have a new job for travis. He should be the spokesperson for minute rice. You know why . It doesnt take a lot of thought or preparation. With him and the watches, he doesnt think about getting a patent, hes not worrying about the packaging, hes not putting any thought into the design. I mean, in the past, they had a brand, but now. Theres nothing here. I mean, honestly, if you had not told me the story about why you guys created it and how you got inspired, i would have been like, i dont need you guys. You have to bring that stuff to life. How do you take social media . What are you doing today that accomplishes that . Trevor were doing everything you could imagine with video and posting and stuff. Lemonis so, heres your Instagram Page for flex watches. So thats a picture of a surfer. I dont know the co why theres a connection. Trevor uh, were in l. A. Were in, like, the heart of l. A. , so it was kind of appropriate for the watch. Lemonis you are, people buy stuff all over the country. To me, the best branding is the authenticity branding. What is your real story . Why do you guys care about it so much . Why do you want other people to care about it . All the charities that youre involved with you should have things posting their events. Trevor theres an image that we try to uphold. Travis but theres no pulse. Theres no, like, real story. Youve held back, and i feel like its not only a part of our story but a part of your life. Like, youre allowed to talk about the fact that we did charity and your mom was involved and talk more about the Breakfast Program. Brad i feel like we did that a lot more when we first started, when it was all the charities. Lemonis when you did a Million Dollars a year. You have, really, two interesting dynamics happening right now. You have trevor who wants to get as far away from the original brand story as he can, and travis who wants to do things as fast as he can, and when you combine those two things together, you end up with a company that makes gold watches in [bleep] boxes. I feel like i have a decent idea of the process, or lack thereof. Id like to go somewhere else and sit down and look at the financials and start to dig in. Guys. Travis hey, marcus. Lemonis how are you . Travis how you doing . Trevor good to see you. Lemonis what i thought we could do is just really get a sense of what the revenues look like and whats happened each year. So, 2011 you did 500,000 worth of business. Gross profit of 129,000. 2012 979,000 of revenue, which is a good job, by the way. 2013 the sales go to 436,000. They drop in half. You lost 200,000. Travis that would be the year we started, basically, redoing the brand. 2014 311,000, lost 87,000. 2015 279,000, lost 34,000. On the balance sheet, the total liabilities are 71,987. Does that include the credit cards that you guys told me about . Trevor yeah. Lemonis and you didnt take any significant pay. Whats at stake for you guys in this business . Travis [ sighs ] the last 5, 6 years of my life and my future, so everything. Brad i moved home with my parents and my wife. Trevor the three of us have given blood, sweat, and tears into this business, and we all believe in it so much. Brad it broke my heart cause the whole Charity Aspect and giving back was what drove me to work so hard for the company. Lemonis and not take a pay. Brad yeah. Lemonis and move back with your wife to your parents house. Thats a big sacrifice. Brad trevor went through a hard time, obviously, after his mom passed. Trevor because of me, probably, we just havent talked about it and discussed it as much as we should, and i dont know how to tell that story. Its tough. Travis [ voice breaking ] i feel bad. I feel bad for my best friend. Thats it. I mean, no one deserves to, like, go through all that stuff. Just, it hurts, you know . Lemonis yeah, but youre emotional because you believe in what youre doing. Whats the business worth today, in your mind . Trevor we like to think that its close to about 2 million evaluation. Lemonis business that did 279,000 last year and lost 34,000. My offer, after considering paying off the liabilities, putting 100,000 of inventory, putting 100,000 of working capital in the bank so that rent and salaries and things can get paid and then dedicating 100,000 specifically towards Mass Marketing to the world, would total about 400,000. So my offer is 400,000 for 40 of the business. Travis a Million Dollar value. Lemonis thats what it is. Travis um, so, obviously, we have to discuss this. Where were at, we have to dilute each 20 . Travis should we include something about your mom and the meal program . Trevor this is not the imagery that fits our watches, the style. Travis im telling you the past and who we are. Trevor that doesnt have to be the brand why does the imagery have to be that . travis this is who we are big dreams start with small steps. But dedication can get you there. Easily set, track and control your goals right from the chase mobile® app. Chase. Make more of whats yours®. 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Make more of whats yours®. 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. Travis we have to dilute each 20 . So me and you are dropping to 21 right there, and im pretty confident the companys worth 2 million. Trevor well, as much as we want to believe that its so much more, the numbers dont tell that story. I mean, its not about that. We need marcus as a partner. Travis so, i think were gonna take your deal. Lemonis before i write this check, there is no question that im 100 in charge. We have a deal . Trevor well, we appreciate it, marcus. Thank you so much. Lemonis congratulations, guys. Get your ass to work. Whats happening, guys . Trevor hey, Marcus Lemonis one of the things that i thought we could talk about is what the plan and the process are gonna be. Were gonna rebuild a brand using social media, using packaging, using product development. My biggest concern is, i dont know what your story is today. We probably need to go back and make a brandnew generationone watch. And it needs to be Something Different and proprietary that nobody else can get to. Were no longer gonna downplay the fact that this company has a mission. In fact, were gonna amp it up. Were gonna get back to the 10 colors and the 10 charities, and then were gonna add some things that make it even more unique. All right. Lets go to work, guys. Trevor beautiful. Karlo hello, guys. Welcome to shiekh. Lemonis how are you . karlo how you doing . Lemonis im marcus. Karlo my name is karlo. Nice to meet you, marcus. Lemonis are you the manager here . Karlo yes, sir. Im the store manager. Lemonis one of the things that the guys need to think about as we relaunch the brand is how their products gonna sit inside of the retail space, how the customers are gonna react to it. How its gonna be merchandised, how the Sales Associates are gonna think about it. So im taking them to shiekh shoes a store that already carries their product. And i want to see what theyre doing now and what we need to do better. How has flex watches done with your store . Karlo they did very well. Good price point. We had the other, different design that wasnt these. It was a different rubberstyle watch. Lemonis generation one. And do you still carry those today . Karlo that style, no. Lemonis what happened to the old style . Travis theres a Corporate Office, and they requested that we had a more expensive price point cause it was not worth his time to sell the watch. Lemonis so, you did a Million Dollars worth of watches and then, all of a sudden, youre like, thats too much. Travis essentially. Lemonis brad, were you consulted in that process . Brad yeah, i was. It its not broke, dont fix it. Lemonis a store like shiekh has a very small staff two to three people and its not realistic that theyre gonna be able to spend a lot of time selling a 35 watch. They asked for a more expensive watch. Travis just jumped right to it. Rather than just making a more expensive watch, what id rather do is invest the time and money into a more creative, thoughtful way of merchandising the product or selling it and giving the store a crutch or a way to make the sale easier for them. What do you think this company the Corporate Office would say if there was a display that was built on our dime just for them that was really beautiful and it told the story . Trevor i think theyd be on board. Lemonis do you know what a silent salesperson is . Trevor something that sells itself for you. Lemonis sells itself. And so if we had something built, probably cost 300, whats the wholesale order that would go into that first slot . Travis 1,000. Lemonis whats your margin on it . Travis about 500. Lemonis okay. 300 investment, 500 in gross margin, 200 in profit. If we provide retailers with a simple, affordable, silent salesman display, it makes it easier for everybody. They dont have to invest the valuable time that it takes telling the initial story. The silent salesman display will cost flex about 300 to provide to the retailer, but it will be able to carry about 1,000 worth of inventory, with a 50 margin. So while well only net 200 with the first order 500 worth of gross profit less than 300 from the silent salesman every order after that will yield the full 500 in gross profit. What were gonna do is, were going to design a freestanding trade display, but not yet. First step who we are. I want to task you guys with coming up with a vision board that incorporates everything that you think you are, and you got to Work Together as a team to do that. See you guys soon. Brad thank you, marcus. Trevor thanks, marcus. Travis so, how do you want to start this, trev . Trevor i thought this would be good. This is newport. This is where i learned to surf, this is where i grew up going to the beach. Travis obviously san diego, since we started in san diego. Brad i feel like theres a lot of beach. Our whole brand isnt beach. Like, youre not gonna wear this to the beach. Trevor lets move on to these. Travis i think Something Like this shows having fun. I mean, personally, i skate, so i feel strongly about this. Trevor so, heres my thing with skating. Obviously we dont make skateboards. I dont like the street side of it. I dont like the grungy skatewear, asphalt, the colors. It just feels like it doesnt fit. Travis should we include something about your mom and the meal program . As much as skating and artwork is part of it, so is charity. Trevor i dont want to use it. Travis it fits into our brand. Trevor i think were way more of a surf vibe. Travis so would you im kind of lost. Brad question, trevor. Youre gonna want this . Travis hold on. Dont cut me off. Im in the middle of trying to brad well, im trying to back you up here. Travis all right, let me make my point real quick. Im telling us who we are. Trevor this is not the imagery that fits our watches, the style. That not our direction. Travis lets be honest. Trevor that doesnt have to be the brand travis this is who we are lemonis if your business is in trouble and you need my help, log on to. Through the at t network, edgetoedge intelligence gives from using feedback tovery co 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. 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So save big at Bass Pro Shops and cabelas gear up sale. Your adventure starts here. Trevor that iswe inotude somethour direction. Mom . Travis lets be honest. Trevor stop cutting me off i literally dont understand how were still talking about this. I this just isnt us. Travis it is. Its part of who we are trevor that doesnt have to be the brand travis this is who we are walk away, then. [ sighs ] im literally over this. Like, i cant do this. Lemonis hey, guys. Travis hey trevor marcus, how you doing . Lemonis ive engaged a renowned branding agency based in los angeles called oishii. Theyre experts at really giving people good feedback and helping them develop their brand. And i wanted to get their unbiased opinion about what they thought about the board the boys put together. Travis hey, guys trevor hey, great brad brad. Travis travis. Kate hi, travis. Im kate. Lemonis if i can just get these guys to actually tell their story, the chances of selling that watch are increased dramatically. I tasked them with putting together a simple board that told their story, create a silent salesman that said exactly what you do and why you do it. Travis all right. Kate express yourself. Get creative. Flexible. Ismael how about this . Flex isnt just a fashion statement, its a lifestyle. Kate i mean, obviously this is a very. Californiainspired mood board. Ismael it feels like a travel agency. You know . Like, youre enticing me to go to california. Lemonis there was a story. It just wasnt the story that i was gonna invest in. It felt like venice beach meets, i dont know, hawaii five0. Did you know it was a watch company . Kate no. Trevor we were trying to make it cool in some way. I think a lot of Middle America buy that california lifestyle. Lemonis so youre a californialifestyle brand now . Trevor well, we grew up here, and so all of us lemonis i grew up in miami, but i dont put pictures of miami everywhere. Trevor unless you really liked miami. Lemonis i do like it, but if im selling rvs, i dont put pictures of south beach. Kate the market is very crowded with people wanting to tell the california story. Sometimes it can come across as very disingenuous. Trevor this is like home to me. I feel like this is part of who we are. Lemonis i saw you shake your head. Brad im just bummed. Lemonis what are you bummed about . Brad our story doesnt come across. Ismael a lot of brands try to infuse lifestyle. Part of the problem of that is that it becomes a cacophony of lifestyle images. At the end of the day, its like, who cares . Kate tell me more about why youre doing this. Travis we started with 10 colors, 10 charities, and we donated 10 . So it was 10 colors, 10 charities. Ismael i love that. Lemonis was their story apparent from that board . Ismael not at all. Kate not at all. Ismael you guys have to understand that creating a brand with a cause goes above and beyond the product that you sell. What im buying is you guys, is the story, is the belief, is the conviction, is the passion. 9 out of 10 companies that come through our doors have no vision, have no passion, have none of that. You guys have it, but you missed it completely. Kate now that we have that, i can actually see why youre doing what youre doing, and im definitely more in love with what it is. Lemonis thank you very much. Thank you. Kate thank you. Lemonis the fact that you didnt make your mom the showcase of it all, i cant understand it. Weve talked about it. What is it that didnt make it the big frontandcenter thing . Trevor i really feel like too much of that iii dont for this board, im not gonna put pictures of me and my mom on there. This is not who i want flex to be. Lemonis its obvious to me that trevor continues to run from the original purpose of this brand, but without this story and without the purpose, there is no brand. Whats going through your mind right now . Trevor i dont know if the face of the brand is supposed to be so much about me and my mom. As much as thats our story, like, i just struggle with talking about it. Lemonis why . Trevor i dont know. I dont want to mess it up. You know . Lemonis for who . Trevor for her. Shes shes a big part of flex. She was our team mom, and she helped us get off the ground. I mean, we had nothing, and even just some connections with the Breakfast Program and connecting us to charities. Lemonis so, that feeling that you have that makes you feel like youre connected to her again is what has to come out. So heres what were gonna do. One of those 10 watches is gonna be solely dedicated to your story and your moms story. And you can celebrate her life, and people could wear it, and people could be excited about it, but you got to tell it with everything you have. You cant leave anything on the table. Trevor i really appreciate you understanding. I mean, cause it is tough to build that in, and this would be really special. Lemonis what would the cause be that the sales would benefit . Trevor i mean, the obvious move is to fight cancer. Lemonis cause i think once you could tell that story and get it out, its gonna free you up to do everything else. Were finally ready for production, but, candidly, these guys still lack in their process, and im not gonna just let them run loose. Were gonna start with something much easier first. Trevor we could change the pattern on this to match whats on the watch. Lemonis ive arranged a meeting with tinsel a worldwide packagingdesign company to come up with a special box that will separate us from everybody else. Trevor when you open this, thered be Something Else right here, cut out, and this would be a different color. Lemonis also, ive asked travis to come up with a new display case and make a list of various manufacturers. Travis i need to make a display as fast as possible. Naim its like 20, 30 days. Its conceptualizing and drawing and then this and this and that. Travis i dont care. We have to rush it. I just need to throw artWork Together, dude. Can you help me throw some artWork Together . Naim yeah, lets go. Lemonis hey, guys. The guys invited me to come down to their office to look at some boxes that were prototypes for the watches. They tell me that they want to show me the new display case. New display case . I never even saw a design. Travis this is gonna be the first box. Lemonis box is cool. These the towers . Travis yeah. This is more of your freestanding store. Lemonis im gonna pull this out, if thats okay. Travis yeah, yeah. Totally. Lemonis does it have wheels . Travis no. Lemonis why is the back so plain . This thing looks like rushed and unfinished. I couldnt be more disappointed with the display case that im seeing. This silent salesman has to be able to sell the product on its own, but the one that im looking at right now isnt selling me anything. This was travis responsibility, and yet again, he looks like hes rushed through it. When you make a freestanding display for a store, they want to move it around. It has be seen from all sides. Wheres the story . This to me, feels like a highschool art project. Brad i dont think skulls and darkness iim not a fan of. Trevor i like that its different. I think the skull thing is kind of fun. Travis you lost your mom to Breast Cancer, so i dont think we want to push skulls. Trevor i think thats irrelevant. Why accept it frompt an incompyour allergy pills . E else. Flonase sensimist. Nothing stronger. Nothing gentler. Nothing lasts longer. 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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. So josh, you going for our drive safe and save discount . Yup, using the app. Driving safe. You wanna go bro . Do not mess with my discount. Woooo sighs get a discount up to 30 with drive safe and save™. Lemonis the base feels plain, theres no casters, the back is plain, the top is plain. What charity is this one . Travis it doesnt represent a charity at all. Lemonis why not . Travis the watch will but. Lemonis but why wouldnt the box speak to the color . 10 colors, 10 charities. Wheres the story . When i first met you, travis, you rushed things, just to get something moving, moving, moving. So i need you to just take a minute, slow the [bleep] down, and say to yourself, as a consumer, do i know what the message is if i just walk by it quick . Part of the reason that im so frustrated about the lack of quality with the silentsalesman display is that ive set up a pitch with flip flop shop. They have over 200 Stores Across the world. Im not taking them this. This is a big account. You gotta fix that case. You guys have to come up with something better. Trevor wow russell. Russell how you guys doing . Lemonis the silent salesman is an important marketing tool, but its not the most important one. That would be the website. So ive set up a meeting with my friend russell brunson, one of the worlds top experts in internet marketing. Hes gonna give the team some feedback, and hes gonna help us go to the next level. Russell i was looking around flexwatches. Com. Looking around, theres all these options kind of got bored. Lemonis was the charity thing obvious to you when you first went on the site . Russell not at all. Travis like, the story wasnt clear. Russell i own a Company Called click funnels, so any entrepreneur can build a sales funnel. Lemonis at its most basic, an online sales funnel is a series of pages that leads consumers to the checkout. Introducing the product, telling the story, getting them invested in it, finally taking them to the sales page and even upselling them additional products. Its a great way to convert visitors into customers because youre giving them stepbystep guidance. Did you put any ideas together on paper for them to see . Russell i did. The first thing i want to show you for redesign for the homepage, we did this right here. So well have something that shows right here, and then theres a video of you guys telling your story, and then you tell them, look down below and find the cause that matches what you care about the most. They come down here and they say, im interested in Breast Cancer, and i can see whats happening. I can see how much moneys been raised so far. They can click on it, then it takes them to their first funnel. Travis this is sick. Im floored. Im literally floored. Lemonis okay, lets get some more boards. Russell if somebody was to click on Breast Cancer, for example. So whats the process, now, we take that person through . Here we would have a very emotional video of somebody telling their story about the cause. We have whatever the watch offer is, persons story here. We can connect with them here, then we got them as a customer for life. Travis that, honestly, is beautiful. Brad you get hit with the cause, not the product right away. Trevor exactly. Lemonis any other boards . Russell yep. So, now theyve purchased the watch. They need more watchbands. cause if i got the yellow one, i would want the black and the blue and the purple and the i would want the whole kit. So make a very special onetime offer where they can get a big discount on all six watches. All they have to do is click yes on this button. Trevor it all just looks so good. Lemonis any final direction for them . Russell the biggest core thing we need is a really good emotionalconnection video from you guys telling your story and, then we need a really good video for each charity. Lemonis anybody can sell a watch, and i want to know why you want me to buy it. Create that connection with somebody. I really want you to work on that. So, the goal is, in the next couple weeks, get the site up, get the videos made. This exercise that trevor has to get done of making these videos will determine whether hes qualified to be the marketing person or not. Because if he cant tell the story, including his own story, this sales funnel wont matter. Its putup or shutup time. The pitch meeting with flip flop shop is coming up fast, so we need to get our nose to the grindstone. Trevor lets do this. Lemonis trevors focusing on content for the new website. Meanwhile, travis is taking the lead on production of the new watches. Travis waterproof the heck out of it. Naim thats time, and we have to go back to the drawing board for that. Lemonis and he better put more thought into this than he did the display cases. Travis lets make it thinner. Lets make it smaller. Naim sure. Lemonis and those new features i wanted to add to the watches to make them more unique, well, the time is now. So ive arranged a sitdown with my friends from printed village. Come on in trevor hey, marcus. Lemonis how are you guys . Trevor good to see you. Jason hey, guys. Nice to meet you. Trevor trevor. Travis travis. Brad brad. Lemonis printed village connects artists from around the world with Companies Looking for unique designs for their products. The artists earn a royalty, the company gets some great designs, and everybody wins. Its a business with purpose, and it makes it a great fit for our company. Take a minute, the three of you, and i want you to pick out designs that were gonna launch. Travis okay. Lemonis okay . Guys, theres all these, as well. Stay on story. You were selling these watches for 35 retail price, and they were costing you. . Travis 5. Lemonis 5. And so if they end up costing you 10 or 11, i think that the perceived value difference between plain one and this, its got to be 15 or 20. Flexs watches used to cost them 5 to make, and they would sell them for 35. Licensing printed village designs will cost as additional 5, bringing the total to 10. But it will also boost the perceived value of the watch, allowing us to raise the price of the watch by as much as 20. So that 5 investment will end up yielding the company an additional 15 in gross profit. Trevor all right. Like this. I like that its different. I think the skull thing is kind of fun. Brad i dont think skulls and the edginess and the darkness iim not a fan of it. Just dont like the skulls. Travis its a no for me. Brad no. Trevor i still like it. Brad how does that have to do anything with who we are . Trevor well, people love halloween, though. I could argue that this is a fun thing to launch in october. Travis in october. You lost your mom to Breast Cancer, so i dont think we want to push skulls. Trevor i think thats irrelevant. Travis i dont know that thats irrelevant. I think thats pretty relevant. Lemonis how is that onstory for the company . Trevor its a its a design. Its patterns, right . Lemonis but how is it onstory for the company . Trevor i dont think every design has to be onstory. Travis each watch represents a different charity that weve partnered with to give back 10 . Brian my biggest concern is the watch category. Watches is a tough one. Were Flip Flop Shops, we dont carry watches at all. Woof alexa, ask delta to fill dog bowl. low, gruff woof. Voiceiq technology. See what delta can do. 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See how investing with a j. P. Morgan advisor can help you. Visit your local chase branch. Un. Brad i think thats the complete opposite for what we want to be pushing. Trevor its a cool design. I like that. Lemonis we went to the creative agency. What did they tell you . Brad we were trying to be cool. Lemonis and what did they tell you would happen when you started to market it . Travis you get swallowed up by everyone else. Lemonis we cannot depart from story. Find out what the story is and have a business with purpose. All right . Next. Brad this one, i think, is the most fun. Trevor i dont care for those colors. Theres a lot going on. Travis i personally like the other geometric shapes that you chose over the bright colors. Brad i prefer that one, as well. Travis when we do the meal program, theres, like, arts and crafts in mexico, so all these kids get around and make fun stuff. Lemonis thats a great story. Youve seen the path that im looking for you to go down. Im looking for you to come up with a cause, and then were gonna submit it to printed village. So, i want to do the one about your mom. Okay . Travis absolutely. Lemonis okay. Thank you, buddy. Appreciate it. When we met with russell, we talked about a video. Any progress been made on the video . Trevor yeah, we have a couple things, actually. Lemonis can i see it . Trevor yeah. Lemonis nervous and excited at the same time. While this video is going to give me the indication of whether trevors qualified to be the marketing guy, more importantly its gonna tell me if hes really ready to tell his story. Man there she is karen hi. Trevor in 2012, my mom, karen kaganjones, passed away from Breast Cancer. [ soft piano plays ] this aint betty man what did she do . Doesnt she lay there and read her magazine . Young trevor no, she slobbers. Man ohh. Karen love my kids. This aint just lizzie man hold it up. Trevor her greatest mission was to help others. Lemonis not only does the video tell the story, and not only will it resonate with people, but trevor really has come to grips with the reality of why they started the business. Hes able to not shy away from it. Look, i still think trevor is still getting used to the brand direction, and we saw that a little bit at printed village, but on an emotional level, hes made a ton of progress, and thats good for business. Thats really nice. Trevor thank you. Travis he produced the song. Lemonis you wrote that . Trevor i wrote it. I played guitar, sang. It makes me feel so good. Iiits crazy, we feel so inspired again to to share with people about these causes that we care about. Lemonis the reality of it is that the reason your business was good is cause people like the story. You had to fall in love with the story again yourself. Brad this is why i was so gungho about flex. It was about doing positive things and about raising awareness. I have more pride in our brand. I am excited to tell the story. Lemonis it was one of those moments where everybody had a breakthrough at the same time, whether it was brad realizing that he came to the company for the right reasons and trevor realizing that his story, it resonates with people, but most importantly, hes able to feel proud about it. Proud of you guys. Nice job. Nice job. Nice job. Travis thank you. We need to slow down, take our time. Lemonis the new display case has come in, and so have the new watches. Travis make sure that theyre perfect. Make sure that the bands and the faces, everything fits perfectly. Man that looks good. Lemonis so, todays the day were gonna pitch the flip flop shop. Trevor marcus. Good to see you, buddy. Travis been all right . Lemonis looks awesome. Couple changes here and there. Why dont we get this inside . Looks awesome. Finally watches that have color and vibrant, beautiful patterns on them. Im blown away with how good they look. This pattern is amazing. When you saw these out of the box, whatd you think . Trevor i lost it. Lemonis the watch that trevor made for his mother, it is really pretty and its going to resonate with people. Pull the display out and take me through it. Travis we color coded each individual cubby so there was no confusion what each thing represented. Lemonis okay. Travis we added the causes to the front. Lemonis okay. Travis we added brand information. Lemonis i think it looks amazing. And you know what it doesnt look like . Rushed. Im very proud of what you guys have done. Very proud of you, okay . All right, lets go. Make sure your setups right, put your boards in order. Hello travis hi, guys. Lemonis how are you . Brian trevor . Brian curin. Trevor nice to meet you, brian. Thanks for coming in. Travis thank you for having us. Brian how much do you guys know about Flip Flop Shops . Trevor were very familiar. Travis i buy my Rainbow Sandals there. Brian awesome. The concepts been around since 2004 and quickly grew. Were all over the u. S. , canada, caribbean, middle east, south africa. Travis thats awesome. Trevor were on a mission to create change. Each watch represents a different charity that weve partnered with to give back 10 . Travis so, if you look at, like, this location, if you can sell one watch a day at an average of 55 per location, were gonna do 1,650 on average per month per door. Now, if you extrapolate that out to, say, 120 locations, then you can do 2. 3 million in total revenue. And 10 , well be donating over 200,000 to those in need through our giving program. Brian watches is a tough one. You know, every article you read lately, i mean, watch companies in general, its not easy, right . Theyre having a tough time. Were Flip Flop Shops. We dont carry watches at all. But allstate helps you. With drivewise. Feedback that helps you drive safer. And that can lower your cost now that you know the truth. Are you in good hands . 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The United States Postal Service makes more ecommerce deliveries to homes than anyone else in the country. Ecommerce deliveries to homes hey. You must be stevens phone. Now you can know whos on your network and control who shouldnt be, only with xfinity xfi. Simple. Easy. Awesome. Lip flop shops. We dont carry watches at we do have some accessories. Were starting to expand that. Travis its a great item to match with, you know, you get the blue and yellow flip flop, you got a watch that matches that. Brian would we be competing as a retailer, then, with your online direct to consumer with this specific line that youre offering us . Were not gonna trade dollars, right . We already get customers cause were in the best real estate, best markets. What are you going to do to drive customers to us . Travis we have a couple hundred thousand social media followers that we obviously market to. Were working with russell brunson, the inventor of clickfunnels, so that each unique person who visited our site and fell off, theyll get remarketed to. Brad and im currently emailed daily asking, where can i go like, i like your watches online, but i want to go touch and feel them. I want to see them. There are Flip Flop Shops everywhere, so theyd be able to go to your closest flip flop shop. Brian why are you doing this now . Brad well, because of our causes. Trevor we truly want our customers talking about their cause thats on their wrist. Im wearing a watch thats actually a special edition in honor of my mom, and i lost her a few years ago to Breast Cancer. So many people see this on your wrist, and im not very good at talking about it, but if someone asks, i can. When i wear this watch, its like having a piece of her with me at all times, and i get to tell her story every day. Brian the story and everything, i can tell you guys are pretty great guys, so, you know, we appreciate you guys showing it to us. Marly i believe that it does have a lot of potential with the causes, and it resonates. Every cause is gonna resonate with someone. I think thats whats gonna sell this product. Brian theres a real story behind it of where these came from. Thats what makes this special. And if you guys can tell that through the marketing and the packaging, which it looks like you guys have really got a good start on that and where youre headed, we can absolutely tell that story to every consumer that comes in our door. Lemonis looking forward to doing some business. Brian we are, too. I really appreciate it. Marly thank you so much. Lemonis thank you so much. Marly its a pleasure. Lemonis when i first met these guys, they didnt have a direction, they didnt know who they were, but watching them today inside the flip flop shop, they collaborated really well. Maybe the biggest win for me today was seeing trevor really be comfortable with talking about his mom and the story. All three of you guys did an amazing job. Every question they had, you had an answer for it. Theyve built something that has energy and enthusiasm with a really good price, but more importantly, a great purpose. At a minimum, i expect them to do a million. Im very proud of you. Brad hell yeah. Trevor thanks, marcus. Im craig melvin. And im natalie morales. And this is dateline. Woman it was a small new years eve party. We took off and then shortly thereafter we saw the police car. My gut was telling my feet to run back to that house. This cant be happening. Narrator when the party ended, the mystery began. It was just crazy. I didnt understand what was happening and why. Narrator his wife, the hostess, had seemed fine all night. Then tom my wife just shot herself in the head please, help me please help me narrator her death was ruled a suicide,