Transcripts For CNBC The Profit 20240714

Advice. Im putting up millions of dollars of my own money. If you dont know your numbers, you just dont know your business. Ill work by their side. Ill put in the hours. cause i have the same risk that they do. Wheres accounting . Shes counting. No, wheres accounting . Um. Oh, my god. This business is a total mess. I judge businesses based on three things its pretty damn good. Most often, businesses fail because of people. I trusted people to manage. Thats not fair what are you talking about . Dont you even go there. Im not going anywhere. Youre strangling things. Back up. Im there to lead, but if they dont follow, this business doesnt make it. Youre a thief and a liar and a cheater. You didnt do what you promised. Get out of my face. All i hear is a bunch of noise. [crying] i dont want to lose my company. Ill make the tough decisions they wont. Youre being demoted. Anything to turn these unsuccessful businesses around. What the [bleep] is your problem . That people dont [bleep] want to do it anymore. Are you challenging me . Youre making me look like a stupid liar, and im not. How am i supposed to trust you . And if they cant cut it. I gave you very simple instructions, and you failed. The deals off. This is my [bleep] town. You wanna lose the deal with me . They need to go, today. If they get with the program. Give me a hug. Ill teach them how to succeed. I think him coming in here has been absolutely fantastic. I think its a dream come true. I mean the morale is better than its been in a long time. Any time you want to say thank you, ill be fine with that. Thank you. Im rescuing the American Dream one business at a time. It just changed our look. Congratulations. You earned it. It may take 30 years, but you know im gonna make money. Did you actually just tell me that its gonna take 30 years . Oh, my god. Tonight on the profit. Im marcus. Its a real pleasurethank you so much. Nice to meet you. I go inside car cash, an autobuying business run by two brothers in new york city, which is on the brink of failure. Were dangerously low on cash right now, which means i cant buy cars. If i cant fix the business. If you dont like money, dont follow my process. And the brothers relationship. Are you out of your mind . Theres no [bleep] way car cash will be closed for good. 35 years ago, bruce baron dreamt up car cash, a business that allows you to sell a used car for cash without all the hassle. The business thrived, making upwards of 50,000 a week, and bruce brought his sons jonathan and andrew into the company. Nice to meet you. In 2007, the recession hit. The business tanked, and the family struggled to keep it profitable. My job is on the line. Bruce passed away last year, making the situation even worse as the brothers mourn their father, struggle with business, and each other. Im about to blow my top here. Never tell somebody again to do that. Last year, the Company Generated 13 million in sales, but posted a 200,000 loss. Now sales are down 70 from their peak, and the brothers find themselves 200,000 in debt and counting. Theyve had to lay off many employees, and neither of them have taken home a paycheck in months. Im in the heat of battle. Im busy downstairs generating income mounting debt, combined with lagging sales, means that they could be mere weeks away from shutting the doors on this manhattan institution. Im sick of this bull[bleep]. Ill do anything to fix this business. Ive been buying and selling cars since i was a teenager, and i know this business. And with over 50 million new and used cars sold in this country last year, well, i see big opportunity with the car cash brand, and i want a piece of it. If jonathan and andrew follow my lead, i will turn this place around and make it profitable again. Good, right there is good. Thank you. Hello, good morning, warren. Hi, this is malissa from 1800carcash, carcash. Com. [dog yipping] hello . Oh, hi hey how are you . Hi, marcus. Im marcus. Hi, im andrew. Andrew, nice to meet you. Nice to meet you. This is murphy. Wheres your brother at . Hes right in here. Oh. Good morning. Marcus. Im marcus. Its a real pleasure. Thank you so much. Nice to meet you. So, i want to get a little quick tour. Right here, were in the buying office. Okay. When we buy the vehicles, we sit the customers here. This is where we negotiate all the deals. Where do you sit, then . Right there . Yeah, they sit here, we sit behind the desk. Wow, okay. I like the mascot. Yeah. Hes awesome. How many square feet do you have in total . Uh, i think 4,500. Which is this garage. Yeah. And this . Yeah, thats it. And thats it. And we do have a small office upstairs also. Whats the rent here a month, 10 grand . [scoffs] ovwell over 20,000. Almost 30,000 a month. Almost 30,000 . Yeah. Yep. Space is very expensive in manhattan. Having a large overhead, well, that puts a lot of pressure on a business. Are both of you here every day . Six days a week, yeah. Youre the general manager . Yeah, thats right. And your role is . Marketing, internet, social media. Whats your biggest challenge today . Getting customers to come in. I also need working capital. Were dangerously low on cash right now, which means i cant buy cars. How much do you spend on advertising . Um, between 5,000 and 10,000 a week. A week . And how many people actually come here a day . You know, some days we get five. Yeah. Maybe ten a day. And whats your buying rate . Whahow many are you buying . Im in the ratiowere probably closing, like, 80 of whats typical margin on a car . Anything under 10,000, you have to make 500 on the car. Thats a slim margin. Its a very slim margin. The overhead at car cash is close to 100,000 a month, and they buy about 80 cars, with an average profit of 50,000 to 100,000, which means theyre losing money every single month. My First Impression is that the place looks tired and worn down. I would love to, you know, spruce up the place. The orange is a little dated. You know, i wanted bold, vivid colors with white. Its got to pop. I dont think so. I dont agree. The orange and black works because its striking, it stands out, and the office is very inviting. What office is inviting . The buying office. No . No. So, guys, i wanted to spend a little time kind of understanding the traffic that comes through here. I mean, obviously west 55th gets a ton of traffic. This is a fantastic location. Were basically the only outlet to the west side highway, so there are literally thousands of cars every day driving down 55th street. So what kind of advertising do you do . You do radio advertising . Radio and web. So, youre in charge of marketing . For the most part. Whatwhat do you mean, for the most part . Well, with the radio, jon handles that, and internet isnt that marketing . Ithis isyes. Itsits sort of a disconnect that wethat jon and i have. 50 of the business belongs to him, so my guess is that either youre not fighting for it, or hes just not listening to you. One of the two is happening. Do you have experience in advertising . Yeah, yeah. And what kind of things have you pitched to jon that hes just kyboshed, said no to . I would have a fleet of cars that would drive around to do mobile appraisals. That would be wrapped up in a car cash advertisement. It would be bright. It would be vibrantthe color. It would catch peoples eyes. We never did that before. It just seems so silly. These are some good ideas. Why arent you fighting for them . You know, to be candid, theres only so manyso many times you get kicked in the balls until you stop trying. The baron brothers are waging their own little war, and thats bad for business. Andrew needs to find his place and stake his claim. Was this a fourcylinder or a sixcylinder . Hey, how are you . Hey, how you doing . Im marcus. Steven. Both nice to meet you. Is this your car . No, no, were wholesaling them. Wholesaling them . You buy cars from them . Yes. How many do you buy a month . 40 to 50. Something around that number. Thats what youre buying . Yeah. Wholesalers are a broker who stand in the middle of a transaction. They buy cars from jon, they mark up the price, and they sell it to a dealer. Why do we need middlemen around here . How often is he here . My friend steven . Mmhmm. All the time. Hes actually a wholesaler. I sell most of my cars to him. Why . Um, because i trust him very much. Hes a good friend of mine. But the issue that i have is that youre giving up the spread. What did you put on the car . Uh, 8,000. What did steven pay you for it . 8,500. This car will retail for what . Id say 12,900 . 12i was gonna say, 12,999, yeah. How much margin is that, in between you and the final customer . 8,500 to 12,999, yeah. Its almost 5,000, right . 4,500 . Theyre gonna go somewhere else and makebetween the time you buy it to the time the final customer gets it 4,000 to 5,000 on a car like that, whereas you only make 500. Thats a lot of money. Thats too much money. Thats the difference between making money and losing money. I dont think soi dont agree, because he puts very aggressive numbers on cars. Hes in it to make money. Hes in it to make money, but hehe was very close to my dad also. Hes like family. If jon eliminated wholesalers like steven and sold directly to dealers, i think theres an extra 1,000 to 2,000 a car. And when you buy 80 cars a month, thats 80,000. Thats 960,000 a year, without buying one more car. When a customer came in, i wanted to stand back and watch jon appraise the car. Okay, come inside the office. Car cashs profit is determined by two factorshow much they buy the car for, and how much they sell it for. So walk me through the process. I scan the car into my software. Right. It brings up numerical values on the car. Then from there, i takei take a look around the car. And then i have to figure how nice the car is, how close to the book value. Is it worth in excess of the book value. Um, yeah, Something Like this, i can probably get, like, 8,500 for it. So, ill go up from 8,000. Okay. Now, the next step is to actually speak with thethe customer. Jon needs to definitely make more than 500 on average per car. The book value is 8,200 on the car. Id feel comfortable paying 8,000 for it. Um. Right now, car cash is in real trouble. Theyre out of money, and if they dont change their process, this business isnt gonna make it. You and i have a difference in philosophy on appraisal. I like the customer with me during the appraisal. I want the customer to know that what im doing is fair. If i take them around the car and i point out the defects with the car, or the imperfections with the car. When these lights turn yellow, you can get this replaced. It costs 300 or 400 bucks. Then when i give them a number thats lower than what they originally thought it was gonna be, their expectations are probably more in line. Theyre less surprised, and they feel like youre hiding less. I would rather ask these questions with them. Make sense . I like that. I like that approach. You too . Last year, car cash generated over 13 million in revenue. Thats 13,500 per car, since they bought 960 cars. If jon followed my process and took the customer through the appraisal process, he would be able to buy cars for 5 or 10 lower than hes paying today. Thats about 1,000 a car. 960,000 a year, without buying one more car. When you leave somebody in the office, the level of anxiety thats happening, as you sit there, as the minutes tickoh, god. Then you come back with the number . It seems like you set me up. I dont agree. Look, jon and andrew are great guys, and this is a great concept, but theyre hurting. And i know that if i make the changes that i want to make, this business will be profitable, but they have to listen. Ththis is very simple for me. I came here to make money, and i like the concept, but the concept has to grow. For me, this is about opening more locations and signing up licensees around the country. Entrepreneurs could come here and see a prototype, and then in perpetuity, forever, any licensing deal that we do, you guys will share in a percentage of those profits without having to put up a dime or do a days worth of work. Does that sound okay . It soundit sounds great. Yes. Imim, like, blown away. Im. With this plan, my expectations are really simple. I look at one location. If i can buy an average of 50 cars per location, and just average 1,000 per car, i can generate 50,000 a month. After i pay my expenses, i expect to clear, after all the bills, 20,000 to 25,000 a month just with one location. You do the math, if you open 100. So the catch to this whole deal, uh, is that i have to be convinced that the prototype works. Like andrew mentioned earlier, the place needs to be jazzed up. Its a little crusty and rusty. Would you agree with that . The other thing that needs to change is the relationship between the two of you. Do you feel underappreciated here . Sometimes. cause theres times where we dont talk, we dont communicate. Why is that . [sighs] you know, i have a lot of ideas. Im full of ideas. Mm. And good ones, too. I dont have time to discuss things for 45 minutes to an hour. Its just, im wired differently. Like, i cant sit and talk about stuff like that. If you guys cant communicate as business partners, you cant be in business together. If you cant tell him whats wrong, then you shouldnt be in business together. [sighs] he and i really dont, you know, hang out, and. [sniffles] [sighs] i just want us to click. Right now, its not clicking. Coming up. The catch to this deal is that im in charge for the next week, which means youre not in control. And later. The furniture that we have now, it does not match thethe decor of [bleep] your decor, man its not pretty good or nothing. Its not acceptable or nothing. And its definitely not close enough or nothing. Mercedesbenz suvs were engineered with only one mission in mind. To be the best. In the category, in the industry. In the world. Lease the gla 250 suv for just 329 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. [narrator] do you remember that day . That day you met your hero . Ms. Bird, do you think i could be a champion like you . Of course you can. And you can call me sue. [jibber] jibber jabber, coming through salutations, famous female of orange round ball. Would you like an autograph . [jabber] excuse me. crowd muttering [woman] is that paper mache . Its you. [woman] wow. [narrator] jibber jabber ruins everything. Is it . [woman] i am confused. [narrator] at Symetra Life Insurance Company were cutting through it, to help you choose the Retirement Benefits and Life Products that work best for you. groans hmph. food grunting menacingly when the food you love doesnt love you back, stay smooth and fight heartburn fast with tums smoothies. Tum tumtum tum tums with tums smoothies. On one hand, its healthy. But on the other hand, its delicious. Healthy. Delicious. Healthy. Delicious. Heldelhede nonsense healthylicious. ding i like that. Bai. Great flavor and good for you. A taste of both worlds. Hey that was mine i just want us to click. Right now, its not clicking. Yeah, were not clicking because when i come in here, im just focso focused on trying to make money. Andrew, what are you thinking . Ill do anything to fix this business. Im 100 committed to change. Is your brother committed to that . I cant answer that. Only he can. Jon doesnt seem willing to change. But what he doesnt realize is that if he doesnt change, his business is going to fail. So the deal that i have, uh, has me writing you a check. So im willing to give you guys 200,000. It allows you to solve the debt that you have. It allows you to put some cash in the business and bring things current. And it allows you a chance, in addition to that, to collect an annuity on the brand name and the website forever. 200,000 up front and a Licensing Partnership Going Forward is a great deal for them. I mean, theyre really gonna benefit. Im gonna sign up licensees around the country, and theyre gonna get mailbox money, which means every time a new car cash opens, well all get a check without having to put up any money or do any work. So the catch to this whole deal, uhi want to be very clearim in charge for the next week, so what i say, goes. Which means youre not in control. At all. I dont know if giving controlyou know, 100 control, basicallyto somebody that, you know, we just met and, um [sighs] how do i put it . Im a control freak. Its hard to let go of that. The Business Needs cash like. Both like yesterday. Obviously, its gonna take capital to change the complexion of the business. But we also need capital to buy cars. I dont know if 200,000 is going to be enough, so i would also like to ask for a line of credit. So how much is the line of credit you want . Okay, uh, lets say, can we start with 300,000 . Whats the Interest Rate youre gonna pay me . Um, is 5 fair . No. Oh. Really . Really. Its 10 . I need 10 , because its unsecured. Well, its unsecured, but you have to understand something. Were giving you an opportunity to make millions and millions of dollars. But imbut i am putting up all the money. Youre putting up all the money, but youre putting up the money based on the idea that our dad created. And its his vision, and his blood, sweat, and tears that got us to this point and built the name brand that youre gonna make millions of dollars on. For the sake of both of us, we need to do Good Business here. We need to make a lot of money here. Were your flagship. You need usyou need us to be the most successful franchise that you have. If were not your most successful one, then nobody is gonna buy in. One of the things i like about jon is that hes willing to push back. Right after i give him 200,000, he then comes back and asks for another 300,000 for working capital. I mean, i thought it was bold, but i like that about him. It shows me he has some fire in his belly. Ill split the baby with you at 8 . How about 7. 5 . Okay, we got a deal. Yep. So when you take my check, for the next week, im 100 in charge. Which means, what i say, goes. Do you understand that . Yep. You better buckle up. Yeah. Because change is coming. Once i make a deal, i dont waste any time. Im gonna turn this place upside down. Do we have a deal . All right. Do we have a deal . Sounds good. Thank you so much. Lets get to work, right away, okay . Hey, everybody i wanted to tell you what has happened. Very exciting news. Jon and andrew and i have cut a deal where im now going to be part of car cash. Im a big believer in three thingspeople, process, and product. I think we have the right people, but we need to make some improvements. Look, i didnt come here today to do one single business deal on west 55th street. I came here because i think 1800carcash should be a national brand. Were gonna add licensees around the country who are going to pay us a fee to license 1800carcash in an area thats relevant to them. In order for this Business Model to attract licensees, were gonna have to show them its profitable. Theyre not just gonna buy off on an idea. So one of the first things we need to do is make more money. We need to fix the appraisal process by bringing the customer into it so we can buy our cars for less. Jon, the wholesalers have to go. More importantly, we need to get rid of these wholesalers, because we need to make that extra money that theyre making between here and there. That extra money could be 1,000 a car. If we can fix this business, then licensees are gonna love it, and theyll sign up like its going out of style. If were going to be a national brand, were going to need to look like a national brand. As part of building a prototype, i need to do an entire overhaul of the building, but not just the building. We also have to change the appearance, because appearance is one of the most important things in business. We need to make sure that we look as good as we sound. Lets go to work. [claps] all right . Lets go. One of the things that i wanted to do before my team shows up tomorrow and starts gutting this place is i wanted to get some ideas for what youd like to see happen. If we could freshen up the maybe get a new awning, i would make everything consistent. I would love to redo the floor. Right now we have this, like, its sort of an epoxy paint. I would love to do the entire garage in epoxy paints. So that way its easy to clean thats a terrible idea. The sound of it when you walk on it, its gonna sound like corduroy pants swishing together. Absolutely not, man. Sometimes my brother will just, like, tune out what im saying, and its extremely hurtful to me because i have valid ideas. These arethese are ideas that would save the [bleep] business so this is our lovely bathroom. Theres a leak in the pipe here, uh, the seat is loose. I dont like being in here. [laughs] how do you think the customers feel . I would not feel very comfortable if i was a customer. I just dont want to get into arguments with my brother anymore. He doesnt want to spend the money to do anything internally because hes so focused i understand hes focused on that thing. Theres a lot of things i want to focus on. Andrew is an equal owner in this business, and its time he stood up to his brother. He should be free to do his job, and he needs to demand it. Jon, do you ever listen to any of his ideas . I listen to some of them. But hes your brother, who owns half the business. Hes my brother, and i love him, but i cai dont have time to listen to a lot of these ideas. Id like to hear some of his ideas. I mean, lets hear what he has to say. I want to start advertising with zipcar, andand doing some crosspromotional advertising with them. Whats thewhats the next idea . No, thats a valid idea. Thats a great feature to have after the sale, but doesnt generate people coming in here. Theres marketing, theres advertising, and part of advertising is the radio. Itshonestly, drew, its likethis is like a broken record to me. I dont feel comfortable with it, im sorry. Andrew is supposed to be in charge of marketing and advertising, and car cash spends between 20,000 and 50,000 a month. Most of that is spent on radio. Now, jon wont let him control the radio, so really, in the end, andrew is in charge of nothing. I want to hear you tell him why radio is the right thing for you. Boom hit the spot. Radio is really, really important. Its a way for us to connect with ourwith our customers. We need to learn how to communicate with them. Okay, i did all that, though, and i got us killer deals doing that. What are you gonna do differently . Ithe creative. Okay, basically you want to restthe single biggest cashbringing option that we have, you want me to rest that in your hands. You want to write the copy. You want to handle the media buying, when youve never done it before . Yep. Are you out of your mind . Thats a [bleep] waste of time. Look, jon, i dont like the way you talk to your brother. Youyou probably are one of the better car guys ive ever seen, but you are one of the worst managers of people that ive ever seen. Maybe theres excuses and theres reasons and theres all these other things, but i think one of the things that i have to get convinced of is that you can actually manage people. Im not gonna let you down. Coming up. Hit it like you mean it. [bleep], this is hard and later. This is new york city. This is my [bleep] town, okay . I know what goes on here. You dont know anything. Youve got till the end of the day. They go, or i go. I get it all the time. 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. door bell rings its ohey. This is amazing. 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With humira, control is possible. 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. I cowe can do theyour screening at her house. Hi. This is the man thats going to check your eyes grandma. Cognizant ai solutions are helping Healthcare Companies advance diagnostics and prevent blindness in patients with diabetes. Everything looks good. You have beautiful eyes. Lets go, guys today is a big day. This whole place is getting redone. I have 40 contractors inside. Wow. Everybody from builders to electricians to painters. I would say im gonna end up spending way over 300,000 to get this right. I had estimated 200,000, but when licensees come here, i need to know we are absolutely putting our best foot forward. So lets go inside and take a look. Wow. Andrew, come here, buddy. How frustrated have you been that your brother wont let you do stuff . Pretty frustrated. Let me see it. Hit it like you mean it, though. Harder [bleep], you guys do this all day . Marcus wrote a check for 200,000 and counting. I gotta live up to his standards. Hey, hold up for a second. Whats up . Did you order 7,500 worth of new furniture for the office . Yeah. Imimto say im pissed would be an understatement. You should never have spent that money without asking me, because im controlling the budget. Youre totally out of line. Whats your explanation . The furniture that we have now, it does not match thethe decor ofof the new way oh, [bleep] your decor, man theres no [bleep] way you ju youre gonna spend 7,500 on furniture for the office. All right, ii get that, and i understand why youre upset, but at the same time, this is part ofpart of my field. This isi youryour field . Totally absurd. Dont spend money on Pretty Things to make the office look nice. Next time you want to make a 7,500 purchase, you better come to me first. Thats number one. Number two, you better call this Furniture Company and cancel the order. Ive had it, man. Im [bleep] done with this conversation. Come here for a second. Yes. Why was your brother yelling at you . Is it okay with you that he does that to you . No, itsof course its not okay. Then why do you allow it . You know, theres a certain level that hes, likeeh, hes my older brother and, you know, ii listen to him. Andrew has a lot to offer this business, and jon better start recognizing. If this business is gonna succeed, jons behavior has to stop. Hey, jon . Yes . Why am i hearing from some of the painters that you were yelling at your brother earlier . I got upset because he okayed to purchase furniture but im paying for the [bleep] furniture. Im paying for it. Wellbut, your money how much do you think ive spent . 1 4 million . More. How much was he asking you to spend . I dont know, a couple thousand dollars. Okay, so your brother goes out on a limb to improve what you think is gonna be a couple thousand dollars. Right. And you lose your mind . Its not about the furniture, but its about showing some respect to him. Youre more concerned about this than you are him. Thats not true. Well then why do you treat him that way . But, its one situation i know, jon. But itbut, marcus, it was jon, hes a human being. Forget about the fact that hes your brother. We shouldnt be talking to people that way. In a situation like this, these brothers need to be working together, not working against each other. I didnt mean to embarri if i embarrassed you, im sorry. I wanted to get out of the office a little bit and spend some time with andrew. I have a surprise for him. Ive been very impressed with all your ideas. Youre willing to take some chances. Thanks, marcus. So what i did is, i went out on a limb, and i dont want jon to know about this. About what . I hired some people. Uhhuh. That are gonna give you the chance to go into a studio for three, four hours, and youre gonna be able to make a 15 and a 30second radio and tv spot. Wow. And its 100 up to you. Wow, thats amazing. Thank you. But. You got to get it right the first time. You get a chance, without your brother influencing you. Right. To get something done, and come back and say to him, look, you said i didnt know how to make a commercial. Heres my spot. I hope that jon will finally see that andrew has a lot to offer this business. Ii definitely feel pressure. He doubts me. In his mind, he doesnt see me, uh, accomplish anything. Nothing shuts people up like performance. Performance and success. Performance and success. Lets go get to work. You got it. Hey, how you doing . Hi, hows it going . Whats up . Im jon. Im jake. Nice to meet you, jake. So whats cooking . Im just interested in selling my car. So, what do we have here, a 2011 . Yeah. Okay, whats the mileage . Oh, its about 26,000 miles. Okay, let me take a quick look around the car. Yeah, sure. And well figure it out, okay . You just hang tight. If i gave 16,000, youd pay 17,000 for it . What do you think . Yeah, i would. Yeah, thats whatthats what i thought. I think i would, yeah. Yeah, the wheels need some reconditioning. Yeah. Jon is outside appraising a car, and i see two wholesalers hovering around the car. I thought we were past this. Are you, uhare you selling this car . No, im just a buyer. No, no, hes not the customer, theyre were buyers. What do you mean, youre buyers . Tried to buy the car. Okay, thesethese are the wholesalers. Guys, give us a minute. Let me talk to him a second, okay . Yeah, okay. I cant believe this. I told jon specifically to get rid of these wholesalers. Having them here is costing this business hundreds of thousands of dollars. If he doesnt change his ways, hes going to put himself out of business. Hey, look, i dont know if you thought this was my first rodeo, but my job here is to make money, for myself and for you. I dont get it. Theyre taking [bleep] margin right out of your pocket. Okay. Do you not see that . Who the hell am i gonna sell my cars to . Dealers. These guys are great buyers. They know how to look at a car. Theyre great with people. Then hire em id love to hire them. Then why dont you . Because i need them to sell cars too, also, because they pay me a lot of money, too, for cars. But, theyre tak and theyre honest guys. These guys arent dishonest. Theyre honest guys. Its not about them being honest or dishonest, its about having the fox in the henhouse. It doesnt make any sense to me. But theyre not the fox that you make your living. Theyre not the fox. Off of selling cars, and the margin between those cars. Okay. If you buy a car for 10,000, you dont know what the market is. You sell it to them for 11,000, theyre selling it for 12,000. The only reason theyre here is because they make a spread between you and the next person. Time out. In your world, maybe thats how it works, okay . But in my world, its different, okay . This isnt bakersfield, california, this isnt dallas, texas, this isnt chicago. This is new york city. This is my [bleep] town, okay . I know what goes on here, and i know my guys. Dont tell me about my guys. You dont know anything. Youve got till the end of the day. They go, or i go. Coming up. Ii have to cut you guys out. Thats your final decision . And later. Selling your car . Both no. Selling your car . Both no, no, no, no. Youve got to get it right. Selling your car . Our dad was in the hospital. Because of smoking. But we still had to have a cigarette. Had to. But then, we were like. What are we doing . The nicodermcq patch helps prevent your urge to smoke all day. Nicodermcq. You know why, we know how. On one hand, its healthy. But on the other hand, its delicious. Healthy. Delicious. Healthy. Delicious. Heldelhede nonsense healthylicious. ding i like that. Bai. Great flavor and good for you. A taste of both worlds. Hey that was mine my body is truly powerful. I have the power to lower my blood sugar and a1c. Because i can still make my own insulin. And trulicity activates my body to release it like its supposed to. Trulicity is for people with type 2 diabetes. Its not insulin. I take it once a week. It starts acting in my body from the first dose. Trulicity isnt for people with type 1 diabetes or diabetic ketoacidosis. Dont take trulicity if youre allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. Stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. Serious side effects may include pancreatitis. Taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. Side effects include nausea, diarrhea, vomiting, belly pain, and decreased appetite, which lead to dehydration and may worsen kidney problems. I have it within me to lower my a1c. Ask your doctor about trulicity. Pain happens. Saturdays happen. Aleve it. Aleve is proven better on pain than tylenol. When pain happens, aleve it. All day strong. Filmgate is growing really staffing a small bquickly and. Is challenging. I needed to fill a production coordinator role. I was looking for someone with specific skills. So i posted a job on linkedin. Maribel had all the skills i was looking for. And looking at her profile. I saw shared connections. That was a plus. But the most important thing. Is the ability to connect to people and she had it. And i knew. She was the one. Post a job today at linkedin. Com grow got to paint the whole hood. Hey, guys, ive got to talk to you for a second, sorry. Okay, man. Look, ive got to make some changes around here. This is not gonna be easy for me because, i mean, im very loyal to people. I just cant have you guys here anymore. Im sorry. Ii have to cut you guys out. Weve been here since your father was around. I know. And weve been doing business with him fromfor years. Im sorry, man. Itsits nothing personal. I have to stay afloat. I have to stay alive, here. So thats it for now, right . Thats your final decision . You guys have to go. Sorry. You know what, man . Forget about you, all right . Is this you changing your way of doing business . Im changing everything. Im doing a 180. Its your business. You gotta do what you gotta do. Its hard to cut ties with people youve done business with for years. But in order for this business to survive and make real money, the middlemen, the wholesalers, have to go. [engine roars] today im taking andrew to the Recording Studio to make this commercial. I am really excited. So, andrew, you ready for this . I am ready. Did you write the spot . Absolutely. Let me see it. What im really proud of is that andrew did a good job preparing for this. He wrote out the script. He timed it. He put a lot of thought into the words. Imim thinking hes gonna do a great job. Oh, hey, doug. Hey. Good seeing you. Hows everything . Heres andrew. Andrew. Hi, im andrew. Pleasure to meet you. Why dont we head on in . Is that all right . You ready . Yeah, lets do it. We just need to make sure that whatever we do today, its tight and its fast and youre on point, okay . Yep. All right, lets get started. Im ready. Okay, were rolling whenever youre comfortable. Selling your car . Then call 1800carcash. Were gonna stop. Werewere gonna stop. That selling your car is too soft. All right. Strong, andrew. [forcefully] selling your car . All right. Selling your car . Both no. Selling your car . Now, instead of going down, i want you to stay up and strong all the way through. [forcefully] selling your car . Selling your car . No. Selling your car . Both no, no, no, no. Gotta get it right. Its really about him getting his confidence. Yeah. Right . Yeah, being comfortable. Its got to sound like youre pissed. Okay. Itit takes a long time for me to get pissed, so. Well, the boss is coming, and the boss is pissed, so its not gonna take too much longer. I want you to read this like your brother just told you you were a dumbass. Oh, great. Lets go. [angrily] selling your car . I could work with that. Yeah. That feels better. Yeah. That feels better, andrew. Oh again . Read it that way. Be pissed. No hassle. No hassle no hassle screw off no hassle just instant cash nice. That was good, andrew. Great job. Very much. The manhattan car cash location is gonna be my flagship. Its my prototype. It has to be right. Its gonna set the standard for every other licensee and location that opens in this country. Were rebuilding all of the offices to maximize the space better. Were redoing the uneven and dirty floors. Were painting the walls and ceiling with the new colors. Were replacing the entire storefront so that customers can see in, and employees can see out. This isnt shatterproof. Yes, it is. It is . Oh, yeah. Were replacing the dilapidated awning with a bright new one. What if we put some plexiglass, their logo. Strong colorsright. Backlit. That works. Lets do it. Were improving the lighting so its more inviting, and we can see the cars better. Is this as bright as its gonna get . Were actually in the process of changing those out right now, and then you can tell me if you want to add more. Were updating the electricity and the wiring. Were rebuilding the bathrooms from scratch, so the customers and the employees arent scared to use them. And were adding a new sales area, so the customers can feel like theyre part of the process. Hey, jon, come on over. Wow. When you license a business, you have to also license your image, so ive rebranded the company, including getting uniforms for our employees. Itsits a totally different feel. We look legit. Im very happy with the progress. I spent way more than expected. Ive spent over 350,000, but i know its got to be right if this is the prototype. Im confident that im gonna get my money back after four or five licensees, and after that theres going to be a really nice profit. Its clean, its bright, its very professionallooking. I mean, this is a cantmiss. To say that this is a transformation is an understatement. [exhales sharply] its, uh, quite overwhelming. Ii wish my father was alive to see this, to show him his new. I wish he was here. He would have loved this. He loved this place so much. This was his baby. He loved this place so much. This was his baby. This washes still here. Introducing tmobiles most powerful signal, reaching farther than ever before. Wherever you go, youll find us working to create the most advanced Wireless Network in history. With more engineers. More towers. More coverage connecting big cities. Connecting small towns. Its a network that gives you. Freedom because coverage means connection, were with you. Because moments are for sharing, were with you. Because life can take you almost anywhere, tmobile is with you. With every engineer, every tower, and every innovation. No signal goes farther or is more reliable in keeping you connected. The amount of Student Loan Debt i have im embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free not owing anyone anything is the best feeling in the world, i cannot stop smiling about it its now time to see what jon has learned about doing appraisals. I expect him to make a bigger profit. The whole process, okay . Yeah. Hey, guys. Hey. How you doing today . My name is jon. Whats your name . Vic. Vic, nice to meet you. Im lizzie. Nice to meet you. Nice to meet you, too. Pleasure. Let me explain a little bit about what we do here. Sure. Well take a look at the car. Ill scan the vin number. Ill assess a value to the car. I hope i can meet your expectation levels. What were you guys trying to get for it . Itits not what a book says a car is worth, its what someone offers you for the car. So, lets start in the front of the car. I happened to notice when you guys were pulling in, there was a littletheres some damage on the bottom. Yeah. Some scrapes. I notice the wheels are a little scuffed also. Thats, like, the only rim that didnt get damaged. On most cars, its not the end of the world, but unfortunately on a bmw, you know, four rims could cost well over 1,000. Based on what i just pointed outthe rims, the bumpersid like to pay 14,000 for it. Yeah. Okay. Jon did a great job on the appraisal. He held firm with the customer, and now hes doubling his profit on that purchase. Im introducing jon to an auto dealer in new jersey. I have High Expectations that he is gonna dramatically increase his margins. Im expecting him to make 3,000 to 4,000 more per car. Hey. Hows everything . Michael. Whats up . Hey, michael. Marcus. Pleasure. Hey, nice to meet you. How are you . A beautiful bmw for you. What do you think . I got to look at it. Its definitely frontline material. As long as the number is good, were in. 07, mileage in the 60s. Take a look. Do you mind if i take a look . Go ahead, go ahead. Okay. Okay. The car ran brandnew. Yeah, these usually do. Cold a c, paint is still they usually do run great. [clears throat] good tires. Its all up to the number. Im gonna put you on the money. I want to start this off right. 17,500. I was thinking more closer to 16,000. Would that work . It would work if the car wasnt so nice. It was an original owner car. The customers took very good care of this car. But its not like a 30k or 40k. It has 60,000 miles. Its retailready. 17,500. Come on, man. 16,500, tops. Coming up. You got like 30 seconds or so . Sure, of course. Wanna show you something. Male announcer selling your car . Its not pretty good or nothing. Its not acceptable or nothing. And its definitely not close enough or nothing. Mercedesbenz suvs were engineered with only one mission in mind. To be the best. In the category, in the industry. In the world. Lease the gla 250 suv for just 329 a month at your local mercedesbenz dealer. Mercedesbenz. The best or nothing. groans hmph. food grunting menacingly when the food you love doesnt love you back, stay smooth and fight heartburn fast with tums smoothies. Tum tumtum tum tums with tums smoothies. On a scale of one to five . One to five . Its more like five million. Theres everything from happy to extremely happy. Theres also angry. Im really angry clive actually, really angry. Thank you. But what if your business could understand what your customers are feeling. And then do something about it. Turn problems into opportunities. Thanks drone. Customers into fanatics change the whole experience. Alright who wants to go again . I do i do i have a really good feeling about this. On one hand, its healthy. But on the other hand, its delicious. Healthy. Delicious. Healthy. Delicious. Heldelhede nonsense healthylicious. ding i like that. Bai. Great flavor and good for you. A taste of both worlds. Hey that was mine . Owning and running the biggesta Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow 17,500. Come on. 16,500, tops. Wow. Its got a clean vehicle history. The car is retail ready, brandnew tires. Maintenance records, one owner. Ill go 17,500, just cause it needs nothing. I really want to get 17,500. Ill go 17,200. And, you know what . Im gonna bring you more retailready cars. This is the first of many. All right. You got it. Ill take it. Okay. Thanks for your business. Sure appreciate it. Thank you. Car cash used to sell their cars to wholesalers for a measly 500 profit. This transaction generated 3,200 of profit. Thats a 640 increase over what they used to do. With this new process in place, its only a matter of time before car cash is really profitable. Thank you. Thanks again. [knock at door] come in. Hey, you got like 30 seconds or so . Sure, of course. Whats cookin . Wanna show you something. Male announcer selling your car . 1800carcash is the fastest and easiest way to sell your vehicle since 1977. Whether youre selling your car, truck, or suv, visit carcash. Com and get a free cash appraisal now or call 1800carcash for a location near you. [laughing] wow. That was fantastic, man. Thanks. Thank you. Really, wow. Its, uh. Its an emotion experience. Yeah. You learn to value his judgment, because i did doubt it, you know . Andand, uh, thisthis, along with probably 1,000 other things over the past couple weeks have literally proved me wrong. And, uh, i feel humbled, you know, to be honest. What would your dad say . He would go crazy for that. I knew, if someone gave me a chance, that i could shine, man, you know. Yeah. You certainly did, man. Im on team andrew, believe me. It was great. I feel incredibly proud of what ive accomplished. I feel that i have proved to my brother that i have what it takes to make this business, uh, thrive via my creativity. What do we have to pay him in royalties for using his voice . Zero. Whew. Car cash is now flourishing. Andrews tv spot is running, and as a result of the new marketing plan, transactions are up 30 . John is now following my procedures on appraisals and selling cars. This has led to a 2,000 increase in profit per car. Weve added a call center, mobile marketing vehicles are on the road, and licensees are opening up locations as we speak. I like the idea that its been open since 1977, doing the same thing, you know. So is this something youd like to sign up for . How do i sign up . Where do i get started . What do i gotta do . Im interested. Most importantly, the relationship between andrew and john is on the mend, and things are headed in the right direction. With these basic changes, car cash is now profitable. I am confident that car cash and these two brothers are going to be wildly successful, something their father would be very proud of. Tonight, on the profit, i go inside athans motors, a used car dealership started by a guy with no car experience. I dont have cars, but i have a Good Business. But you dont have cars that the business no, im done arguing with you. He spent so much money building the most opulent dealership i have ever seen that now he cant afford to buy cars or pay bills. If i cant stop the wasteful spending. Whatd you spend on these walls . 100,000. Wow. And sell some cars. I wont sell it. That cars worth 30 all day. Athans motors will be out of business. My name is marcus lemonis. I fix failing businesses. This month you lost 150,000. I make tough decisions. Youre not gonna come behind every Single Person and change the deal. I didnt agree to this [bleep]