Ashley we might want to spell barbeque correctly, though. Lemonis . And morale withers away. Jackie if i had another job opportunity, i would take it. Amy its just mindblowing sometimes. Lemonis if i cant mend their fraying relationship. Both of you, get your [bleep] together and figure out how to coexist and have Mutual Respect. Their beloved brand will go bust. That store is closing, unfortunately, no matter what. 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. [ applause ] mike and John Anderson founded tankfarm back in 2003, and today, they have two stores one in Huntington Beach and the other in their hometown of seal beach, which is where im heading right now. I have a number of investments in the fashion space, and if this one goes well, it could fit in very nicely. Woman hi, hows it going . Lemonis hey, how are you . Woman good. Thank you. John whats up, man . Lemonis how you doing . John [ laughs ] im john. Lemonis john, how are you . John nice to meet you, man. Lemonis nice to meet you. Mike mike, awesome. Lemonis mike, how are you . Can you guys give me a tour of the store . Im trying to understand the concept. John absolutely. So, tankfarm is supplies for gentlemen of sport and leisure. Our strong demographic is male 25 to 45. Thats our audience. This is our brand. Fits great. It looks great. We buy the blank. Mike designs the graphic. Its really high quality. This is seal beach. This is the seal beach pier. Lemonis all 29 . All your tshirts . John they are. Lemonis cost . John about 6 bucks. Lemonis killer margins. Good quality. John great quality. Lemonis and the product is well done. Mike thank you. Lemonis you guys understand color. You understand quality of fabric. You understand design. Are these all your house brand, or is there a combination . John we have about 65 brands. A guy comes in, and he can get everything from his socks, boots, to sunglasses. Lemonis exceptionally high margins or average margins . John i would say the nontankfarm, our average is 40 margin. Lemonis the margin expectations that should be in that store should be north of 55 , maybe even north of 60 . These thirdparty brands should actually add fuel to the retail business, not drag it down. Whats this store do in revenue . This location . John about 540ish. Lemonis 540 out of this store. John and about 560 out of the other store. Lemonis Huntington Beach store make any money . John 15,000 last year. Lemonis this store. John i mean, like, what, 5 grand . Lemonis okay. Mike but also we have a private label Design Business that we do on the side. Lemonis oh, really . John the prime label is a different company. Lemonis and thats designing and producing for other people. John the Anderson Brothers design and supply lemonis how much revenue . John last year, 1. 7 million. Lemonis wow. What kind of profitability does anderson have . Mike 2017, after 1. 7 million, about 200,000, after we get paid. The stores dont pay us. Lemonis wow. So, wow. As i dig into john and mikes business a little bit more, im learning that theres actually two separate, distinct companies. Tankfarm, which has the two Retail Stores that are struggling, and Anderson Brothers, which is basically an Apparel Company that helps other companies manufacture goods and products with their name on it. A bit of a private label Apparel Company. Its clear to me that these guys really understand how to design and manufacture and distribute products. But running two stores . Not so much. Who does the planning . John i do that part. Lemonis oh, so youre the buyer . John im the buyer. Mike but i do the handson Graphic Design. John i buy the best of the best. Lemonis are you 50 50 partners . John yes. Mike yeah. Lemonis how did you start the business . Mike were thirdgeneration printers. John our grandfather, he started the print shop in the 70s, and that was paper goods. And then in the 80s, our dad started doing tshirts. Mike he still prints our stuff. John yeah. Lemonis oh, thats cool. John so, yeah, inks in the blood. Mike where we grew up, orange county, theres a threemile area of these big oil tanks. Lemonis okay. Mike and that was called the tankfarm. John we kind of claimed it since were from there. Hey, lets start a record label and call it tankfarm. We were both in bands. Mike we had to make merch for the shows. John we were really good at merch, and all the tshirts sold, but the music didnt. Mike wifes, like, you should put up your own store. John everyone told us, make your own. Lemonis youre married. Mike married, yeah. I have three boys, little boys, and he has two girls. And my wife owns the womens boutique across the street. Lemonis oh, very cool. Mike that was fun, it was a blast. Singer, and younger brother played guitar, wrote a whole bunch of stuff. Lemonis how many brothers . John theres three. Lemonis so theres one more. Mike he passed away. John yeah. Lemonis oh, he did . Mike yeah, so about almost two years ago. John almost two years, cancer. Lemonis oh, man, im sorry. Both thats our brother, ricky. John hes the talented one. Mike yeah, he was the singer songwriter, super talented. We have his record here. John theres a pain that goes through cancer. Hard thing to talk about. Mike when things happened, and it kind of went to, like, stage four and all that, were like, this is not making sense. This does not add up. This doesnt happen to us. John yeah. Mike the andersons. You know, vacation every year in the mountains for snowing, up north for water skiing. John we dont vacation anymore together. We dont do a lot of things because its just too lemonis as a family. John yeah, because its too painful. Mike our family just, like, broke apart. This back area is a little too cramped. Lemonis because youre trying to run two businesses out of em. Mike exactly. John so this is the office. Lemonis hi, there. Val hi. Lemonis im marcus. Val val. Nice to meet you. Lemonis val, nice to meet you. What do you do . Val im the office manager, and i take care of finances for tankfarm. I do lemonis the stores . Val the stores. I do, like, the deposits at the banks. I do payroll. Lemonis and are you guys all paid through anderson . Val correct. Lemonis okay. John this is amy. Amy im the production manager for anderson and tankfarm. Lemonis okay. Amy and then i do finances for anderson, as well, too. Lemonis are you on andersons payroll, or are you amy yes. John we know. Mike andersons paying the bills. Lemonis but anderson does not produce product for tankfarm. Amy they cant pay on time. John tankfarm cant pay on time. Lemonis is that the truth . Amy yeah. Lemonis so, i never like the brand on the door to be the brand on the product inside that store. The idea of creating brands and doing what you do inside of anderson is great, but what i would prefer to see is anderson on the door, and then inside of the store, other brands that you may own in your back pocket. When the brand on the door and the name on the product is the same, the customer is gonna see that as almost a house brand, like generic cereal. And the high margins that you were actually going for, they may not come to fruition. Whats it like working for these two guys . Val the way that they treat us, theyre fair. Theyre nice. I will say that they are kind of spread thin. Amy usually, its pretty stressful, and you know, john is going, give me the new art, new customer, new business, sales. And hes just very pressured and wanting to make sure were doing our jobs. Sometimes i feel like they just need to focus on one thing. Lemonis are they late with their deadlines . Amy sometimes. Lemonis and whos late . Mike me . John and im like, get this done so we can shift the goods. Lemonis bye, ladies, thank you. Amy bye. Thank you. Lemonis thank you for the honesty. [ laughter ] we should just you guys should just change the street to anderson way. Mike tells me that his wifes in the apparel business, and so i wanted to get a flavor for how her store would look. I was just curious. Mike my better half, candi. Candi hi. Lemonis how are you . Candi im good. Lemonis nice to meet you. Candi nice to meet you, too. Lemonis what a beautiful store. Candi thank you. Lemonis maybe you guys should come over there and teach us something. Candi hey, i will. [ laughs ] lemonis what will this store do in numbers on an annual basis . Candi this one did 1. 3 million. Lemonis shes basically doing more than the two stores combined in one store. What do you think their store looks like . Candi i always tell em it looks like a museum. I tell them, let me merchandise, but you know, so. John i dont really agree. Woman i think its a little in there, a little maybe too cool. John i dont agree with the too cool thing. I dont agree with it at all. Candi i dont want to step on any toes. Lemonis i was surprised how quickly john got, like, really defensive. Whyd you get all whacked out . John its hard for anybody to go in a place, like, this is amazing. You guys are terrible. Thats not easy. Lemonis nobody said that. John it felt that way. Lemonis whose motorcycle . John mine. Well, its ours. Mike mine is actually right there with the side car. Lemonis im riding in that thing. John oh, 100 , yeah. [ engine revs ] lemonis yeah, buddy. What i really want to do now is go to the dads print shop. Whoo which is ultimately where it all started. John [ laughs ] lemonis whoo, that was fun. John hey, dad. Lemonis mr. Anderson. Nice to meet you, sir. Rick nice to meet you. Lemonis oh, wow. Its a big shop. Rick this is the Screen Printing side. Lemonis okay. How much could you crank out of here . Rick the other day, we did 2,600 shirts. Lemonis in one day . I honestly was surprised with how big the Screen Printing shop was. Mike angle, good pressure all the way in. Lemonis what i like about what i see here is its connected to the family, so i know theres good pricing. Oh. Rick slick. Lemonis come on with the gold. And this business could really grow. There is a ton of capacity. Rick mike, hes a great graphic artist. John is the sales guy. He gets the sales. Hes very determined. I cant think of any better. Mike thanks, dad. John thank you, pop. Rick weve been through a lot with my son. [ sniffles ] lemonis yeah. Mike we could show you a video. A video he did for his daughter. Lemonis i would love to watch that video. Did he write this song . Mike he wrote it and sang it for his daughter. Ricky dont ever stop loving dont let anyone take your crown ill always look out for you rick [ sniffles ] lemonis wow. His voice is amazing. Mike he loved to have a good time. We dont want to just always be sad about it. We want to remember john celebrate his life. Mike celebrate his life. Lemonis you can tell by the way they feel about their father and their brother that they have character. And any time you meet people that are rich in family tradition, those are the underpinnings of Good Business partners. Guys . John hello, again. Mike hey, marcus. Lemonis how does this store do . Mike were not hitting the numbers that we thought we would. Lemonis what did you forecast for this store . John a million a year. Were doing lemonis half of that. John half of that. Lemonis how much is the rent here . John about 10,000 a month. Where its about 6,500 in seal beach. Lemonis whens your lease run out . Mike next month. John next month. Lemonis did you bring your financials . John we did. Lemonis lets sit down and go over em. John okay. So this is tankfarm seal beach. Lemonis seal beach, 530,000, and the store made 16,000. 56 margins. 56 for a store is slightly less than average. You got huntington, 539,000 in business. This store shows that it made 13 grand. Very little return. Anderson brothers. 1,742,000 of revenue. 40 margins. Total expenses are 544,000. Business made 155,000 bucks. Between all the entities, 2. 7 million in total revenue, 184,000 of profit, 530,000 of real, tangible assets, 511,000 of liabilities between payables and loans. So youre not upside down. So whyd you call . John heres what im gonna say. Mike hold on. John wait, no, hold mike wait, no. John let me say it. Stop. Mike geez louise. John i gotta say something. Just let me say it. Okay. Somethings off. Tankfarm should be a bigger brand. Lemonis i think where this business has potential is largely in product development. I think whatever i offer, its gotta just be everything in a pot. I dont like money moving like this. It scares me. Okay, so heres what i want to do. John okay. Lemonis my offer is 2 million. A Million Dollars in equity, and a Million Dollars in a line of credit. The Million Dollars of equity, i want 50 of the business for it. 50. 001. I want to have more than a seat at the table. I want to have a seat at the table, and i want to have a rubber stamp. Mike let me ask. Where do you see tankfarm in this . Lemonis i dont know. I like the idea of tankfarm, but i do not like the idea of the name on the building is the name on the product. John this is something ive always been thinking about. So we said, hey, were gonna do something called Anderson Brothers. Its gonna be for our family. Its gonna be for my little girls. Its gonna be for our nephews, rickys kids. Its gonna be for his sons. Were gonna build this thing, and theyre gonna work for us. Thats our dream. Thats my dream. And i want to give them equity in this thing. Thats why im its harder for me to be, like, sure, yeah. Mike theres not a lot there. John im struggling with that because theres not a lot left over. Thats where im struggling. Could we be 33, 33, 33 . Then we could have something. Lemonis it could be. Whether its 33 or 50. 1, im gonna have full control. John got it. Lemonis so, if 33, 33, and 33 is more comfortable for you, then great. Ill back my number down to a million. 500,000 and 500,000 instead of a million and a million. Its a better deal for me financially than 2 million for 50. 01. John that is, i was just i think we should stick with the 2 million, and i think we should do it that way, and i think you and i should lemonis unhunh, that deals off the table. My first offers my best offer, all the time. John lets call it 1. 5 million. Lets go a little bit more. Lets get back to the first closer to the first deal. Come on. Lets go closer to the first deal that we should have done. Lemonis yeah. No. John [ laughs ] that sucks. Lemonis if your business is in trouble and you need my help, log on to. alarm beeping welcome to our busy world. Where we all want more energy. But with less carbon footprint. Can we have both . At bp, were working every day to make energy thats cleaner and better. And we see possibilities everywhere. To make energy thats cleaner and better. Im Christina Stembel and i chose the spark cash card from capital one with unlimited 2 cash back on everything i buy why wouldnt i get this card . i redeemed 115,000 in cash back, which doubled our Marketing Budget last summer. Whats in your wallet . Can a banana peel fuel your flight. Bp and Fulcrum Bioenergy think so. Together well reduce emissions and Landfill Waste by turning garbage into jet fuel. At bp, we see possibilities everywhere. By turning arbage into jet fuel. But she wanted someone who loves with the cats. Ng. So, we got griswalda. Dinners almost ready. But one thing we could both agree on was getting geico to help with our renters insurance. Yeah, switching and saving was really easy drink it all up. Good could have used a little salt. Visit geico. Com and see how easy saving on renters insurance can be. Here, hello starts with hi mple. How can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. Come on, lets go closer to the first deal that we should have done. Lemonis no. John [ laughs ] that sucks. Lemonis my final offer is a Million Dollars. 500,000 in equity. 500,000 in a line of credit for 33. 3 . 100 control. John [ laughs ] well, then, thats the deal. Lemonis do you guys need to take a walk for a minute . John yeah, yeah. Mike no, no, no, no. No, i dont step. Change it again, dude. Sit down. Lets freakin do this thing. John oh, man. Okay, you got a deal, marcus. Lemonis okay. What do you think your brother would say right now . John hed be hed be giving you a high five, and hed be saying, good job, guys. Mike [ voice breaking ] he [ clears throat ] hed be very, very stoked for us right now. Lemonis boom. John thank you. Lemonis okay, guys. John thank you, partner. Lemonis you got it. All right, guys. Whats happening, everybody . John yeah, whats up, marcus . Lemonis yes john so excited. Good to see you. Lemonis how you doing, buddy . Can we just get everybody together so they know what the hecks happening . John yeah, absolutely. Lemonis so lets talk about whats whats actually gonna happen. We made a deal for me to invest a Million Dollars. There isnt really anybody out there creating mens fun, cool, trendy things. And when there are, they do really well. We shouldnt be doing things that dont make us money and that are distractions. Are the two Retail Stores profitable . Andy no, sir. Lemonis what does that lack of profitability, what pressure does that put on the other business . Amy a lot. I mean, because if they need financial help, then anderson is the one that has to help them out. John i dont feel its that that much of a, you know, of a burden. Amy i have to, you know, scurry and figure out who am i maybe not gonna pay to support the Retail Stores. Mike our lease is up in Huntington Beach. Lemonis that store is closing, unfortunately, no matter what. [ cellphone ringing ] mike this is a client. John its a pissed client. Mike mariana . No problem. I wasnt sure if you got my email. Ive been doing this for 20 years, and im super frustrated with myself because i sent the printer a mixup on the art. Its just inverted. Mariana ugh. Mike it still looks cool, but i was, like, 440 shirts printed. We can no problem, you know, of going back, but. John hey, mariana, this is john. Mike wait, lets john well, look. So real quick, what i was hoping for is that you could take these shirts. Its hard to even see the difference. You could take these shirts at a small discount. Mike yeah, yeah, im yeah, theres two things. Were gonna fix it. Not a problem. Awesome. Thanks, mariana. Well talk to you soon. Lemonis what do you think im gonna ask you right now . John just reprint the shirts cause theyre wrong. Lemonis why are you involved in his situation . If he made the mistake, whatever it is, he was working on it. John i felt like he wasnt gonna give her an option of, like, hey, you want these at a discount price . Thats all. Mike but i told you, please let me handle it. Trust me, i will always do whats best for the business. I want to make Anderson Brothers as big as possible, tankfarm as big as possible, but i have to convince you, im allin. Lemonis as broken as their process is, theyre able to attract really good accounts. I mean, kona is a legitimate company. Hooking the customer is one thing. You have to now execute on it. And the attention to detail, thats gonna actually ensure that youre gonna get the customer back a second time. John marcus, we took what you said to heart about creating different brands, and so we did outsiders, and we did some research. Lemonis does anybody have it trademarked . John no, so we actually call it the outsider collection. Its great. Its not motorcycles and switchblades. Its going outside and being outside and doing surfing, rock climbing. Its everything. Lemonis get outside. John its get outside. Its go do something. Lemonis i think its spectacular. Anderson brothers is the design firm and the Manufacturing Company and the Apparel Company. Thats the thats the umbrella. Underneath it, you have different brands. Tankfarm is a brand. Outsiders, great. Whats the product gonna look like . Whats the assortment gonna look like . John i mean, well design our team will design it in this room. Lemonis okay, guys, awesome. Good job. Hey, john and mike . John yeah. Lemonis i want to understand what sells and what doesnt sell, so id love to see the sales report by product and brand. John okay, okay. Lemonis so this is basically here. Between the two Retail Stores, 34,838 items were sold. 22,181 of them were tankfarm. The next brand sold 1,132. So the whole store is filled up with stuff that you can make. Were not gonna have a store where we sell other peoples [bleep] mike yeah. Lemonis right . Mike right. Lemonis by the way, guys, i hate to say this to you, but your whole store could be right here. John and then make the rest of it offices. Lemonis you want to have a storefront that doubles as an office, that doubles as a creative space. Lets get everything thats tankfarm to the front. Lets merch it the right way. Lets get some extra help. Can your wife come over and help . Mike yeah. Lemonis lets call her to see if they can come just help for 10 minutes. Mike got it. Lemonis all right . Cool. Theres two real key issues that exist in this space. Number one, there isnt enough space for everybody to work in. And when i think about the entire space, and i look at the revenue thats created with socks, tshirts, hoodies, well, you dont need an entire store to do that revenue. So i want to give the creative part and the manufacturing part more space. Okay, heres the deal. This yellow line, cant cross it. If you cant fit it in the front of the store, and it doesnt turn, it doesnt stay. John got it. Lemonis this is the new section right here. Candi do you want me to go back and get it . Wait, wait. I stole all my plants from my store. Lemonis i like that cactus. Candi what can we do . Lemonis we want you guys to help john remerchandise the front area. We love your ideas. Candi all right. Lemonis because your store is perfectly merchandized. Do your thing. Candi we have less space. We need to make it feel really, like, maximizing, you know, but set the floor plan, and then merchandise. John no, no, andy let andy do this part, and then well move things around, but let andy help you. Lemonis actually, lets do this. Im gonna take you out of the equation for just a second. John okay. Lemonis let her provide the direction. You guys will work together. John okay. Candi we need a table this size. Half this size. Mike where do you want the cash wrap . Candi i would do it right at the end, way over here. Mike so you want the cash wrap here . Candi yeah, because i dont want to, like, lose this space. John i wouldnt put a cash wrap here if thats the front door. Theres no way to get through. Candi let us let us, like, play with it, and then well see, cause its so hard and what were gonna do is, were gonna balance it. Were gonna put your bread and butter in the middle. All flannel. John i actually dont agree with that. I think we should do all the tshirt walls cause we sell tons of tshirts. Candi i know, but you want them to buy the flannel and the tshirts. I want tshirts, flannel, flannel, and then denim. Mike lets move it over, okay . Yes, were gonna move it, okay. John this is all wrong if this is all we have. That corners wrong mike no, but we have lots of pieces candi i think thats perfect. I dont think theres anything wrong with that. Lemonis [ laughs ] john we have to rethink we have to rethink the whole thing. Mike john, okay, slow down. John mike, im not upset. Mike youre not like, lets have a conversation. John im not upset, but what we have here isnt working. We need to get rid of these. Candi i promise you were gonna make it work, though. I envision it. Its gonna look good. Mike john, can you just let her do her thing . John we brought some new ideas, and we wanted to show you some of the artwork that our team put together. 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I told you this is the part i didnt want. Lemonis all right. John, im just gonna have a moment of truth. John lets just throw stuff all against the wall and see what looks good. Lemonis maybe they have a better way that we havent thought about. John we i dont think we need their help. Lemonis i felt like i needed to take him out of the room and sit down with him and really understand whats driving this reaction. Whats going on . John all these people, all this stuff. I just would rather plan it out. I dont like having outsiders come in and be, like, no, do this, do this, do this. We talked about how we arent doing the right things in our shop. Those are hard things to talk about. Lemonis um, i think you really have to work on letting things roll off your back a little more. John totally. But im good. Im good. I truly am. I appreciate you. Lemonis did the tequila make you good . John it did. It actually calmed the nerves a little bit. Lemonis all right. Lets go. John okay. Lemonis so, when i come back, what i ultimately want to see is this store finished. Im gonna give you time, so you guys have to figure all this out. All right, guys. Ill see ya. John okay, thank you, marcus. Lemonis you got it. As we begin construction on the seal beach store, the huntington employees are beginning to wind the store down and to liquidate it. With the Huntington Beach lease coming to an end, well be able to get rid of the cash drain and take all that money and focus on growing Anderson Brothers. Today, im taking the brother to lucilles, which is one of the biggest regional barbeque places in all of california. If the companys gonna really start expanding the number of businesses that it designs and manufactures product for, well, this is a great one to start with. John well, right on, guys. We brought some new ideas. And i wanted to show you some of the artwork that mike and our team put together. Mike this is kind of a fun concept to bring your flying pig. John when you use interestinglooking shapes, its just people are drawn to it. Mike it has a really cool music motif here. What about doing like rhythm, blues, and barbeque . He threw that out there. Thats pretty cool. John because your logo pops out here, i say, why dont you make that a guitar . Ashley we might want to spell barbeque correctly, though. John you know, mike did this earlier. Barbara . Mike dang it john what does it say . Lemonis look, i love you, mike, but you whiffed that one. I mean, it wasnt like you misspelled onomatopoeia. You misspelled barbeque at a barbeque restaurant. Who proofed this . John i did not proof it. Mike my fault. Lemonis okay. We talk about attention to detail. We sort of missed the most important detail. [ laughter ] john so, is there anything about this that you liked . Did you like the concept . Ashley okay, this one i dont like mostly because were trying to move away from this pig. Its too aggressive. John got it. And how about rhythm, blues, and barbeque . I just thought that was really a great tag line, and a lot of fun. Brad i really like this one. Ashley i like it, too. Brad its eyecatching. Its got the spirit of lucilles kind of in the design. John sounds good. Mike so well put that together for you. Lemonis were leaving with some redeeming value where they like the item, but to say this meeting was a home run, i would say it was more like a bunt. We barely got on base, and it was by accident. Howd you think that went . John i think i rushed it. Lemonis you step on him constantly. John okay, sorry. Lemonis and i dont think you realize it. Mike he just took over, and and john [ laughs ] i didnt mean to. Mike but then the problem is, people read that, and theyre like, dude, why cant they just whats up with these brothers . Its funny sometimes, but after a while, its not professional. I knew we could do better, and i lemonis its about making yourself better, too. Mike exactly. Lemonis and so if you strive for always making sure that you proof stuff before you come. Somebody looks at every last detail. John good. Lemonis all right. Youve got some work to do. John all right. Good stuff. Lemonis whats up, guys . In order for them to really expand their horizons and create new lines and diversify the product offering, theyre going to need to have Additional Resources at their fingertips. So, im taking these guys to a cutandsew factory. How are you . Im marcus. Robby sir, how are you . Pretty good. Nice to meet you. Lemonis nice to meet you. Robby so here we do cutting, pattern making, design, development, production. Everything mostly we do is u. S. Cotton. Lemonis thats really nice quality. Anderson brothers is a manufacturing, design, and sourcing company. And so you have to think about different bodies and different fabrics, being able to live in different brands and different price points. John okay. Lemonis good, better, best model. Mike yeah. John gotcha. Lemonis do you have different price point shirts here . Can you bring us three levels . Robby sure. This will be one level, which is mass mass market. Lemonis why dont you guys work on that . Bring things that you think are good, better, best. The key behind the good, better, best model is to really explore all avenues of revenue and all price points. In the good category, were looking for entrylevel price points. Maybe something thats under the 39 range. In the better category, youre gonna try to stay under 55, 60. And above that, the best category, youre gonna stay under 80, maybe even 100, capturing all of the available market. So, who is the outsiders for . Mike what is more elevated . Tankfarm or this . John i would say that outsiders would be the elevated brand. Lemonis thats the best. John thats the best. Lemonis whats the better . John the better would be tankfarm. Lemonis whats the good . Mike we need to develop something new, like grit and gravel. Lemonis mmhmm. You want to go to another meeting, and you want to have a chance . I want you to make the presentation. John uhoh. Lemonis john, hang on. Mike, i know youre just as capable, even though maybe not everybody else thinks that. Mike he doesnt realize that certain things come down to respect. Thats like you saying, i dont trust you, i dont resp its, like, you want to be my boss sometimes, where im like, dude, were partners. John no, you want to talk real, lets talk real. You gotta look at the things that youre being lazy on. cause im like, hey, man, im gonna spend 3,000 on shoes, come look. And you did not care. Mike i did look sometimes. You sometimes act like you know best, and i should have been a little more involved, then maybe the stores would have actually made more money. John so its all my fault the stores didnt make as much money. If you would have done it. Mike no, if i would have helped. John and i asked you to help me, you didnt do you say you want to avoid a con youre saying two separate things. Mike no, what im trying to say is john youre trying to, like, push it off. Mike no, john, come on. John oh, my gosh, man. John were all the same. Were all the same. Jackie id like to think that were all the same, but thats not how everybody is treated here. Amy ive never had a boss mock me to my face, behind my back. Its just mindblowing sometimes. Mike i should have been a little more involved, pain happens. Saturdays happen. Aleve it. Aleve is proven better on pain than tylenol. When pain happens, aleve it. All day strong. They give us excellent customer otservice, every time. E. Our 18 year old was in an accident. Usaa took care of her car rental, and getting her car towed. All i had to take care of was making sure that my daughter was ok. 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Humira can lower your ability to fight infections, including tuberculosis. Serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. Before treatment, get tested for tb. Tell your doctor if youve been to areas where certain fungal infections are common, and if youve had tb, hepatitis b, are prone to infections, or have flulike symptoms or sores. Dont start humira if you have an infection. Be there for you, and them. Ask your gastroenterologist about humira. With humira, remission is possible. Then maybe the stores would have actually made more money. John so its all my fault the stores didnt make as much money. If you would have done it. Mike no, if i would have helped. John and i asked you to help me, you didnt do you say you want to avoid a con youre saying two separate things. Mike no, what im trying to say is no, john, come on. John oh, my gosh, man. Lemonis i feel like both of you both have some responsibility in the stores failing. You both have responsibility in mistakes. He thinks youre lazy, and you think hes controlling. What does matter is that you guys lost one brother. It broke both of your hearts. It changed your business. You guys dont want to lose each other. Get your [bleep] together and figure out how to coexist and have Mutual Respect. Because the last thing you want to do is wake up one day and have more regret, okay . Mike thats true. Lemonis all right. Its been a couple of weeks since we started construction on the seal beach location, and so i wanted to drop in and see how much progress theyre making. Hi, how are you . You guys excited about the new space . Amy yeah. Lemonis then you guys will each have your own room. You dont have to be bunkmates. Jackie yeah. Lemonis anything happen since i was here . Amy yeah. Jackie well, after you guys were getting ready to head out, john turned around and told us, you need to work harder to, like, earn your keep. Amy yeah. He just was feeling a little bit out of control, and so therefore, he is, like, micromanaging all of us and just really riding our asses. Jackie if i had another job opportunity, i would take it. Lemonis you would . Jackie yes. Amy same. Lemonis same thing for you . Amy mmhmm. Lemonis does does he know that . Jackie no, because hes never asked. Amy no. No. Lemonis are you guys open to having a frank discussion with him about it . cause i wont do business here if hes that way. Its just not its not okay. Jackie yeah. Lemonis so let me talk to them and see if we can just find a place to just have a quick chat, okay . Jackie cool. Lemonis thank you very much for being honest. Look, my expectation is that employees are treated the right way all the time, whether im here or not. Yo john hey. Lemonis hey, what . Mike almost almost there. John so, as you can see, its coming together. Were feeling really good about how its looking, and then mike, he wanted to go ahead, mike, tell him about mike well, i mean lemonis mike, i just want you to know that john says its okay for you to talk now. John [ laughs ] lemonis no, im serious, cause thats how it comes off. Mike so we want to do, like, a whitewash. The floor is being cleaned. John well have it all figured out. We were actually able to sell a ton of our old, antiquey stuff. Lemonis theres a lot of junk. John. I talked to the ladies, and we need to we need to talk with them. John okay, lets do it. Lemonis i really feel that in this moment, it isnt that john is a bad person or doesnt like his employees, but he doesnt know how to have awareness about how his actions or his words are affecting other people. To be clear, this open dialogue that were gonna have is not gonna result in somebody getting blasted when i leave or tomorrow. So, i think were all in agreement that were not gonna do that anymore. And that the only way this is gonna work for me to be involved, honestly, because ill walk away, is if theres a Mutual Respect amongst everybody. Were treating people with sincerity and respect. Mike the floor is yours. Amy you can tell, like, all the other times that hes been here, youre putting on a show. Like, youre trying to just protect yourself, and you dont want to look like an idiot. John amy lemonis shes not done. John okay, sorry. Amy shell let you know when shes done. Amy i mean, ive never had a boss mock me to my face, behind my back, to other employees. Its so rude. Like, its just its just mindblowing sometimes. John if theres something im not doing right, just tell me. Theres a lot of changes, a lot of things happening, so its a little different. I feel like youre just as were all the same. Were all the same. Jackie id like to think that were all the same, but i dont actually feel that. Thats not how everybody is treated here. John oh, okay. Jackie i feel like it could be a lot more professional. I feel like there could be more tact and more grace. Aaron i am kind of with amy where we can be a little bit more professional about some things that we do. Little things like something that happened yesterday with a shirt color being off. Instead of saying that theyre being picky, its john but i did hold on. I did say if they dont like it, lets fix it. Aaron no, no, i john i dont want half the story. I just want you to tell the whole story. Aaron sure. Lemonis john. You dont have to go on, like, full drive, bro. John im the one getting, like, pummeled. Lemonis no, youre not. John i feel im getting crapped on. Amy its hard to get crapped on, too. Lemonis i feel like what you did is you took some of these and just changed the label. It feels like you rushed this. John i dont want half the story. The army has been an awesome but after roman was born, i started transitioning out to spend more time with the family. I found this job as an area manager on linkedin. I applied, and i ended up getting the job. I cantwhat . Ve it. That our new house is haunted by casper the friendly ghost . Hey jill hey kurt movies . Ill get snacks no, i cant believe how easy it was to save hundreds of dollars on our Car Insurance with geico. I got snacks ohhh, i got popcorn, i got caramel corn, i got kettle corn. Am i chewing too loud . Believe it geico could save you fifteen percent or more on Car Insurance. I just want you to tell the whole story. Aaron sure. Lemonis john. You dont have to go on, like, full drive, bro. John im the one getting, like, pummeled. Lemonis no, youre not. John i feel im getting crapped on, you know amy its hard to get crapped on, too. Lemonis john, when youre, you know, crusty, it throws us all off. It throws me off. Thats all im asking is that we just have respect. John i agree, all the way. So, jackie, im sorry for making you feel bad or making you feel like you didnt count. So, you count. Im sorry. Jackie okay. Thank you. John i didnt mean to make you feel bad, and im excited to see what happens in the next few months. Jackie thank you. John amy, im sorry. I truly from the bottom of my heart want you to feel respected, and i want you to know that i care for you. I am sorry, for real. Are we good . Amy yeah, yeah. John okay, okay. Lemonis were good if the words turn into actions. John totally. Lemonis and we know that this business is more than just a business for you. But we need to feel it. John got it. Lemonis or were not gonna work here, me included. John okay. Lemonis while the team puts the final touches on the seal beach store, mike and john are heads down, designing new products and expanding their existing ones. John thats nice. Mike thats kind of cool, and then lemonis they were smart enough to use their fathers Screen Printing shop. John green looks really nice. Rick i told you to do the green. Mike that was dads call. Lemonis it gives them flexibility and speed on delivery. Meanwhile, ive been checking in with amy and jackie regularly, and im happy to hear that john, hes calmed down a bit. John you have your own office. Youve got a key. Amy awesome. Thanks. John yep. John bye, girls. [ bird squawks ] john tada [ laughs ] mike hey, marcus. Good to see you. John marcus. Lemonis how you doing, buddy . John good. Good to see you. Lemonis i think it looks spectacular. John thank you. Lemonis good. It looks tight, and the best of the best of the best is here. John yeah, exactly. Lemonis it looks good, guys. Mike thanks for pushing us cause that tape line john this is literally where you put the tape. It was exactly right here. Mike thats where the tape was. Lemonis you can see that if i pushed you guys hard enough, this is what we ended up with. John yeah. Mike this process, a lot is to ask people. John candi did a phenomenal job for us. Lemonis the fact that you were even open to somebody elses idea is tremendous progress. John yeah. Lemonis lets look inside. I see absolute perfect execution. Now theres the proper meeting space, the proper design space, and any potential client that comes in knows that these guys are for real. John good, better, best. Lemonis why dont you guys take me through as if i was buying . John grit and gravel. All hand drawn, all custom. Mike the illustrations were done by our team, and Graphic Design was done by me. Lemonis the quality still feels good, though. John yeah, nice. Lemonis for an 18 tshirt, its not bad. Mike exactly right. Lemonis so why dont you guys take me through the better . Can i see a flannel . John absolutely. Lemonis just a flannel. John great hand. Lemonis the quality is fantastic. John if you look at the buttons, its like a natural twill liner. Lemonis who is the best model . John the elevated brand, outsiders. Thats the best. Lemonis they did a great job with the design and the choices of fabric. It was really spoton, but theres one issue im noticing. So, i would give grit and gravel a 10 out of 10. John awesome. Lemonis nailed it. I feel like the graphics are right. I feel like the price points right, and i feel like the quality is right. I would say tankfarm, it feels the most complete. You could take this to market right now and be fine. John totally. Lemonis and this outsiders, it feels like youre swinging for something. I dont know what it is. John like better detailing. Lemonis i feel like what you did is you took some of these and just changed the label. Like on this. Didnt this used to be in the tankfarm . cause this was actually in the store when i first got here. John this this used to be in tankfarm. Lemonis it feels like you rushed this. Lemonis it feels like you rushed this. 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Phew, its back with lobster mac cheese. Its gone again. Oh, its back with shrimp now steak lobster starting at only 15. 99. Hurry in before these three are gone again. Outback steakhouse. Im learning to cookgy, at a restaurant. Ter work when i was looking for jobs on linkedin, i found a company that would support my passions outside of work. I hit apply, and here i am. John we upcycled it. Lemonis right, but it doesnt feel right to me. Mike it needs to be different enough. Lemonis or do something different. John wash, a rivet, something cool. Lemonis something that makes it feel john would it look cool with a leather label . That would definitely make it look more elevated. Lemonis right, but its something thats, like, a signature thing. John i like that. Mike theres work to be done. John theres work to be done. We really tried to give this an overall theme, a look, a vibe. Lemonis look, im very happy with the progress. Lets open the store and get people in here. John yeah, please. Mike yeah, yeah. Lemonis i think the most important thing for me is that all of you together open the store. And are you mom . Mary i am. Lemonis you have good boys. Mary i do. Thank you. Lemonis you have good boys. You should be very proud of them. Mary we are. Lemonis when we first did our deal, the two of them told me that its a family business. As you can see, its a family business. Mike now the family names on the roof. Lemonis as a family, i think we should open this store up. Mary okay. Candi go for it. Mary wow. I love this. Girl that looks really good. Mary wow. Rick it looks cool, though. Girl he said small. Lemonis its a lot smaller, right . Rick its a lot smaller. Lemonis you want to give your parents a tour of the inside . Mary yeah, lets do it. Lemonis go, walker, first, go, walker. John go, go, go. Awesome. Candi doesnt it look good . Rick great design. Mary ooh, this is all your designs . John this is an inspiration wall, so we have our three new brands. Mary thats awesome. John outsiders. We have tankfarm, and we have grit and gravel. Lemonis doesnt it look nice . Rick this looks incredibly professional. Lemonis john and mike, i know that i gave you the task to come up with three brands. But i didnt want to task you guys with having to do the fourth. Where it goes from here is gonna be up to you. John oh. Mike thats cool. Its great. Thats awesome. Thats awesome. Mary its beautiful. Mike thats awesome. Beautiful, great job with that. Its awesome. Candi wow, thats so cool. Mary amazing. Candi i love it. Let me see that one. Lemonis we want to have the fourth line be a tshirt line called rickys. Rick marcus, thats incredible. Woman [ sniffles ] lemonis i was trying to come up with something that felt like a record label or something. Rick i love it. I love it. Lemonis his legacy will live forever. Rick hes here. Hes here. Mike thank you, marcus, thats really cool. Candi thank you. [ applause ] lemonis with the new product lines, this business should see at least a 50 increase over the next 12 to 24 months, but more importantly, john and mike seem to have really repaired their relationship. Theres no question that theyre a work in progress john in particular. [ laughter ] but if they continue to listen to each other and respect their staff, with this business, the skys the limit. Lemonis tonight on the profit. Ive pretty much established that this whole thing sucks. At an iconic snowboardandskate shop in chicago. Chris in the summertime we do skateboards, standup paddleboards. Lemonis . The owners are headed a nasty collision. This business looks like its on life support. Chris i think things kind of fell apart pretty quickly up here. Lemonis their new location loses money hand over fist. Theres nobody here. Its empty. Their original location suffers from low margins and the wrong inventory. Salena its about creating a reputation. Lemonis this business doesnt have a good reputation. Did you know that . And now, their partnership is spinning out of control with two of the owners sidelining the third. Chris it felt like we financed your pregnancy