Transcripts For CNBC The Profit 20240712

And drop his las vegas show facade. Vinny how we doing, guys . Im the coconut man. Ukulele and the hat and the coat and the beads. Hey, its not just some schtick. Lemonis are you aware that some people see it as that . Im marcus lemonis, and i risk my own money to help businesses. I love investing in american businesses. These people are here because they care. Its not always easy, but i do it to create jobs, and i do it to make money. Do we have a deal . Vinny we have a deal. Lemonis lets rock and roll. Man yeah lemonis this is the profit. Vinny fresh coconut we got fresh coconuts right here lemonis in 2016, Vinny Zaldivar launched cocotaps, pioneering a new way to get the juice out of a coconut. Its extremely popular with the las vegas vacation crowd, including me. Vinny open it. Drink it. Its really good for you. Lemonis but i want to see if this is a product that will appeal to the mass market. The coconutwater craze is huge, and if i can tap into this, well, i can make a ton of money. Vinny life can be a tough nut to crack cocotaps will get you right on track to great taste and less waste, too Coconut Water just flows right through woo lemonis oh, hi. Vinny hi. Lemonis im marcus. Vinny marcus, cocovinny, nice to meet you. Lemonis how are you . Vinny great. Good to meet you. Lemonis cocovinny, is that your actual name . Vinny legally changing it this this year, yeah. Allin. Lemonis for real . Vinny full on, cococommitting. Lemonis you got the beads going. You live this lifestyle. Vinny this is it. So this is cocotaps hq. Lemonis im marcus. Rob im rob. Vinny thats cocorob. Lemonis cocorob . Rob yeah. Lemonis are you changing your name, also . Dannyj hi, im dannyj. Lemonis see, thank you, youre not cocodannyj. Dannyj well, cocodj here. Lemonis okay. Okay, listen, right now youre coconuts. Vinny thats cocojoe by the way. Joe nice to meet you. Lemonis joe, how are you . What is your actual name, joe . Joe joe cantino. Lemonis are you also changing your name legally like him . Joe no. Lemonis okay. Good. Wow, this is big. Vinny we sublease from another produce company. This is our inventory up top. Were all coconuts. We all share the space. Its kind of like a working facility. Lemonis all coconuts meaning that youre all nuts . Vinny were nuts. Were coconuts. This is our taproom, so this is where the magic happens. When we unwrap the coconuts. These come from thailand. Lemonis so how does it come into you, like this . Vinny this just came off the boat. Lemonis so can you take me through the tapping process . Vinny tap crew, set them up, cocojoe. Lemonis lets go. Whats up, tap crew . Vinny show him how to tap the case. Michael so we have a branding iron, and we just slowly roll it across to put the logo on. Lemonis thats cool. Vinny we do 108 to 130 coconuts an hour. Brand and tap, ship. Lemonis okay. Michael it goes in here. Pass it down there. Take one of these. It goes into a drill bit that fits perfectly around the plastic part. Lemonis then it gets wiped down, then packed. Vinny right . Thats the freshest Coconut Water youre gonna ever drink. Lemonis this Coconut Water tasted different than anything else that ive ever had. It felt so pure and so clean and so refreshing that i know that consumers who like Coconut Water are going to love this, and i like the fact that vinny is bright, and hes bold, and hes a salesman, and hes got a good idea because the tapping process is clever and actually looks like hes put some thought into it. Im fascinated. Okay, im gonna. Are there differentsized coconuts . Vinny yeah. Lemonis because this is a lot to drink. Vinny well, and thats why we made it resealable. Lemonis you can put it back in your refrigerator . Vinny yes, sir. This cap system keeps it fresh for up to 3, 4 weeks in the fridge. Lemonis i want to go out into the. Vinny yeah, its getting cold in here. Lemonis . Warehouse. Its getting cold. And so talk to me about the nutritional benefits. Vinny okay, so this has every electrolyte that your body needs to produce energy magnesium, potassium, calcium, phosphorous, iron, sodium. Lemonis do you only sell in las vegas . Vinny right now, were just focusing on las vegas. Lemonis isnt cocotap this . Vinny cocotaps. Man 2 yes. Lemonis this Coconut Water tastes delicious, but what im not sure of is exactly what product he was making and what he was selling, and is he a coconut importer . Is he a coconut distributor . Is he a tap manufacturer . What is cocovinny selling thats actually proprietary . In my mind, thats the only way to make money. You buy these from a distributor . Vinny yes. We have a produce provider. Lemonis and how much do you pay for a case . Vinny nine to a case right now. Lemonis puts the cost of one of these at what . Vinny 1. 55 on average. Plus we add our tap, our labor, our stuff, so were in at about 2. 22 allin. Lemonis and then what do you wholesale it for . Vinny right now were at 5. 55. Lemonis at wholesale, 5. 55 . Vinny yeah, and theyre going for 12 bucks on the strip, so they double, triple them from there. Were very successful in. Lemonis so youre the only one with a tapping system for a coconut . Vinny yeah, theyre only made in usa. Weve got utility patents on the tap. We have a whole bunch of International Patents were gonna be filing for the systems and the procedures. Lemonis a patent is the best way to protect your product and, more importantly, make investors comfortable. If you think about a castle, the reason that the king and the queen are safe is because theres a giant ditch that goes all the way around it. Anytime you can have something that protects you from other people copying it, then it gives you Real Security that the idea is not only scalable, but, man, you can make a ton of money. So what prompted you to get in this business . Vinny i hated my life before. I was the c. E. O. Of a gaming c the next thing that i was going to do had to be good for people, good for the planet and good for me, fun. Lemonis start over. Vinny start. Reset. Lemonis wow, that takes a lot of guts. Vinny i wanted to get healthy. I lost 60 pounds, and all these athletes are drinking packaged, processed Coconut Water. It tastes like crap. Lemonis yeah. Vinny and its very polluting to the environment, so 90 of everything that goes into recycle ends up in the ground or in the ocean again, so thats why were about zero waste. Lemonis i like the fact that vinny is very focused on his business being zero waste, which means everything essentially is biodegradable. Vinny this is the tap. Lemonis but its plastic. You told me that your whole thing was about not having waste. Vinny its just costs. I mean, we got to figure that one out. Lemonis yeah. What you have to be careful of is when you have a philosophy about who the company is and what it stands for, youve got to have no instances where people can be, like, ah i got you vinny nobody is perfect. Lemonis nobody is, but dont let costs compromise the edict, right . Vinny yeah. Lemonis the manifest of the business. Then cocovinny is like cocoscammy. Vinny i dont know about that. Lemonis no, but im not saying that, but you just dont want to let anybody say it. Vinny right, right. Lemonis he told me earlier that he wanted a zerowaste company, and im not sure as i stand here, is that a goal in the future, or are you trying to sell me something and trying to convince me that its correct now . And im a pretty good judge of character, but im having a very difficult time trying to decipher vinnys real person from this character hes playing. Vinny so you take the tap out. You just turn. If you have a spoon, just spoon out all that meat. Lemonis so i can just. Whoa. I thought itd be harder. Vinny no, its soft, beautiful. Thats a young coconut, and thats the fat. Thats the fat. Youre not feeling it. So hes not a meat fan, we know that. Lemonis i dont even know how to describe it. Dont ever make me eat that again. Look, im all for trying things, and i know that i probably seem narrowminded in saying, never, but i tried it, so he cant say that i didnt try it but never again, ever. I want to go sit down, and well go over the financials, and well talk about the business. Vinny okay. Lemonis hey, bud. Vinny hey. Lemonis so walk me through. Im struggling with the concept, to be totally honest with you. Vinny okay. Lemonis theres nothing that stops any of these people from getting a coconut and putting a hole in them. Vinny if you put a hole in this and put it on the shelf, its dead in a day. If you put a tap in it, its good for 3 weeks. Lemonis do you have your financials . Vinny yes. I just had my guys pull the p l for yeartodate and then balance sheet, you know . Lemonis well, 13, 14, 15, 16, 17, 18, where are those . Vinny i didnt give last years. I just gave you current. Lemonis you dont have them . Vinny i have them, but i have to get them sent to me. Lemonis did you think i was gonna ask you for them . Vinny i brought current. I wanted to paint the picture where its at now. Lemonis so this is yeartodate . Vinny yeah. Lemonis so this is a half a year . Vinny yeah. Lemonis so, so far for the year, 261,000 in revenue, 171,000 in gross profit, which means the margins are pretty decent. Vinny theyre good margins. Lemonis youve done 261,000. Vinny yeah. Lemonis how many units did you sell . Vinny we sold. God, why am i drawing a blank all of a sudden . Lemonis by the way, vinny knew i was coming, and he shows up with no historical financials, and what he has for the year basically is a little bit of revenue. I would say that after seeing that, its clear to me that he may have come up with a good idea, but the rest of his business doesnt seem to be airtight. Cocovinny at cocotaps should know how many coconuts he sold. The quality of your Financial Information and your grasp of the numbers, how would you rate it . Vinny im an 8 1 2. Lemonis when it comes to your grasp of the numbers, i wouldnt give you 8 1 2. Vinny thats fair. Lemonis thats troubling. Vinny when you want to sit me in a room and hammer numbers, we can do that, but thats not my strength. I embody a whole different skill set of cocosoul and cocovinny. Im the Colonel Sanders of coconuts. Lemonis im not comfortable yet, and because i dont have the financials, and i dont have a balance sheet, i cant even see how the puzzle would be put together, and what i dont like about vinny is that hes now becoming slightly dismissive about the facts that are in front of me. Hes almost like, dont Pay Attention to the numbers. Look at the shiny object over here how many of these will you sell a year in vegas . Vinny couple hundred thousand. Lemonis if you can sell 200,000 in vegas, in my mind, thats proof of concept in a very tight radius. Pick one market outside of vegas where youd say, okay, im going to do proof of concept somewhere else. Vinny id say between orlando, and between miami and Fort Lauderdale where you have the resorts, the cruise ships and all the theme parks. Lemonis and would you think about the keys as part of that element . Vinny yeah. Lemonis tourism. Vinny tourism. Lemonis okay. So ill tell you what im willing to do to move forward. Im willing to put you through cocoboot camp. Vinny how we doing, guys . Im the coconut man. Lemonis you didnt follow the task. Vinny you told me to sell coconuts. Thats what im doing lemonis in this box. You showed up late. Youre out there walking all over town, and that wasnt the task. That Liberty Mutual customizes your insurance, i just love hitting the open road and telling people so you only pay for what you need [squawks] only pay for what you need. Liberty. Liberty. Liberty. Liberty. Youre having one more bite no one more bite kraft. For the win win. To deliver your mail and packages and the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. We have rolled out teams across. Our network, and we went from essentially no televisits to approaching 5,000 visits a day. These visits are surprisingly intimate. I can actually share my screen and show the xrays. We really moved some mountains in our network, and teams has been a huge part of that. This is going to be a game changer for medicine. What do we wburger. Inner . I want a sugar cookie. Wait. I want a bucket of chicken. I want. Its the easiest because its the cheesiest. Kraft. For the win win. Hellbut you already itknew that. And ive got some tips to help you get through these challenging times. First, practice physical distancing. Im sorry, i did not see you there. Ive been doing it my whole life. Or there. Plus, there are lots of things you can do at home. Like, stay active with some sick dance moves. Be daring. And whip up a new dish. I love the combination of gummy bears and meat. You can do video calls for all of your important meetings. What . Sorry. Or just have some fun. Ok, not that much fun. Now, this does not come naturally to me. But, try to be kind to each other. This is a tough time for everyone. So thats it. Stay home. Stay healthy. And remember, were all in this together. What . But totally separate. You know what i mean. Yaaaaay lemonis vinny okay. To put you through cocoboot camp. Lemonis . Before i can determine what kind of investment im gonna make. And so what i would rather do is go into a new market and understand, is the market viable . Does the consumer accept it . So the way that i want to do that is to hit the ground in key west, and were gonna see what thats gonna look like. So normally, at this point, i would understand whether i wanted to or didnt want to do a deal. If i wanted to do a deal, i would start negotiating, but im not comfortable yet. Vinny doesnt have the basic disciplines required to be a business owner, and i dont understand exactly what hes asking me to invest in. So im willing to continue to work with him, to try to help him, and so im gonna put him through the paces, but in terms of writing a check right now . No way. Vinny okay, well figure it out. Lemonis no, no, theres nothing to figure out. Next weekend. Vinny its gonna have to be the next one. Lemonis im going next weekend. Vinny i wont be there. Lemonis you got a wedding or something . Vinny i have a very important. Ive got to travel. Weve got a lot of work to do now to get all that stuff there and everything, so i would rather do it in 2 weeks, so. Lemonis i cant. Vinny youre already ready to go, huh . Lemonis im going. Vinny thats good. Lemonis okay, brother. Ill see you there. Vinny appreciate it. Lemonis whats up, guys . Joe and rob good morning. Lemonis on time. How you doing, brother . Joe doing good. Rob how you doing . Lemonis how you doing . Welcome to key west rob thank you. Joe thanks for having us. Lemonis you guys ready to get started . Joe and rob yes. Lemonis wheres vinny at . Joe vinny is inbound. I think he gets here probably about 10 minutes. Lemonis alright. Alright. Lets get started, i guess. In order for this business to be anything interesting to invest in, im gonna want to understand the scalability of it outside of the vegas market, so i came up with this idea to set up at my Key Lime Pie Company shop. It was a business that i invested in years ago. Hi. Joe im joe, with cocotaps. Stephanie nice to meet you. Rob im rob. Stephanie rob, stephanie. Lemonis stephanie, whos the manager of that location, is a very successful businessperson, and she can teach vinny a lot about business, but im here. Rob is here. Joe is here. Wheres vinny . So they are from cocotaps in vegas. One problem the owner is not here. Stephanie well, we can wait, or we can get started. Joe im down to get started. Rob lets get started. Stephanie lets do it. Lemonis i want to get feedback from customers. I want to understand what people think of the product. I want to understand what people think of the price. I want stephanie to understand what the process is like to tap, and i really want to get my head around, is this a coconut business, or is it a tap business . [ cellphone rings ] vinny this is your captain, cocovinny. Please leave me your name and number, and ill return your call faster than we can tap a fresh coconut. Make it a great day. Im sending you cocolove. Lemonis hey, cocolove, we are here in key west trying this figure out where you are, so when you land, please call me on my phone. Thanks. So do you guys have training modules for all of that . Rob there are bits and pieces of a lot of that documented. Lemonis yeah. Because, like, if stephanie wanted to have these in her company, youd have to walk her through this is the cost. These are the elements. This is the labor. This is the process. This is the suggested retail. Heres what your margins are gonna be. Heres where the distributor is. Joe yes. Lemonis heres how you buy the taps. You got to go in almost and put things. Stephanie as simple as possible for me because im gonna get all of these questions, and im gonna have more. Lemonis have them all. Come on down, folks you want to try a real coconut with a tap on it . Here we go. Lets go. Coconuts. Man 3 over here lemonis how you doing, sir . Enjoy the coconut. Well see you guys later. Thank you. How you doing, folks . Vinny you guys enjoying the coconuts . Woman ah, oh, yeah. Lemonis oh, hey. So just out of curiosity, why are you here at 11 00 . Because these guys all got here. Vinny yeah, well they came from vegas. I came from seattle. Lemonis so im just gonna tell you. Vinny okay. Lemonis . Being totally honest with you, you look like a bit of an ass showing up after they were here. Vinny okay. Lemonis when Business Owners dont show up to a scheduled meeting, its rude and irresponsible. This is not a good start, vinny. Were here to work. His other teammates flew in. My team is there, and its a sign of disrespect to the other people that youre working with. Look, everybody thinks that running your own business is gonna be easy. News flash its actually harder. Were starting at noon. This is a standalone product that we think has a lot of merit. And so were gonna want to understand where the price points are. Vinny got it. Lemonis so at any moment where you feel like you need to change prices. Vinny change it up. Well change it. Lemonis . You talk to katie and stephanie about it before. Vinny i think id like to start it at 12. 99. Lemonis how many do you think you could sell a day . Vinny 500 a day. Stephanie alright. You feel good where were starting . Lemonis its. This is. I feel good for you because i know youre fine. Stephanie okay. Lemonis its him that im worried about. Stephanie alright. Vinny ill go sell coconuts. Im good at that. Lemonis any time youre launching a product in a new market, its good to understand what the elasticity of a price is. When you test it, youll see where the volume works, and where it doesnt, and youll land on the right price. If you sell 5 at 12. 99, 15 at 11. 99 and 100 at 10. 99, the data has shown you that 10. 99 is the most optimum price. Start your day with the fresh coconut tap vinny fresh coconuts, guys, fresh cocos. Lemonis do you like to dance . Just shake it. Vinny i got to learn how to juggle. Lemonis would you like to try a coconut . Claudia i would lemonis okay. Have you ever tried one before . Claudia no, i havent. Vinny this is claudia. Claudia hi. Lemonis how are you . Do you work at the company . Claudia parttime. Lemonis awesome. And whats your guys relationship . Claudia friends. With benefits. Lemonis with what . Im sorry. I had to. Hold on, i have a coconut in my hand. Are you guys in a relationship . Vinny yeah. Weve been dating for a little while, yeah. Lemonis why dont you guys check your story with each other . Vinny oh, its just that theres a lot going on. We just. We havent slept much. Weve been on the redeye, so were just trying to get our [bleep] together. Lemonis what starts to go through my mind is, is the reason that hes late for this entire process, and the reason maybe he didnt even want to come to key west is because he had alternative plans . But then just own it from the beginning. Dont make up some bull [bleep] story about why you couldnt come and why you couldnt be on time. Just, like, be honest about it alright. Give me a quick break. Vinny cool. Lemonis look, i wanted to give him and the team a chance to do some work on their own, knowing that stephanie and katie would be taking a lot of notes for me. If this product is as good as you say it is, and you are as good as you pretend to be, prove it. Vinny selling coconuts is what we do makes me smile when the cococash comes through yeah every day, we just tapping and serving cold to you rob fresh coconut samples. Would you like to try some . Claudia would you like to try some fresh tapped Coconut Water . Man 4 no, thanks. Katie hi, how are you all . They are 12. 99. Vinny we got to get over to sloppy joes, so lets do one case for now. Whats going on, sloppy joe . How we doing, guys . Im the coconut man, so if you guys want a freshtapped coconut. Take it back and just roll my name is cocovinny, ive got soul, cocosoul thats all i got because im gonna take it up thats right, baby. Come get some fresh cocos off the corner, yall. Alright. Listen, coconuts, thats how its done. You ring the bell. We walked in cold. Thats how its done. You spread the cocolove. Lemonis hows it going . Vinny you missed some action today. Lemonis how many coconuts have you sold here . Vinny here in this spot we sold, what . About six cases . Lemonis let me go check on the numbers. Vinny okay. Lemonis steph, hows it going . Stephanie alright. Lemonis how many cases has he actually sold . Stephanie 10 have sold. Lemonis 10 cases . Stephanie no. I mean coconuts. Lemonis come on, 120 . Stephanie yeah, im selling them at 12. 99. Lemonis hey, vinny . Vinny yeah . Lemonis i just want to ask you a quick question, bud. I was looking in the system, so theres nine in a case, right . Vinny yeah. Lemonis and you said you sold the six cases. Vinny okay. Lemonis so 6 cases times 9 would be 54, right . And theres only 10 in the system, 10. Vinny okay, so. We did good with the samples. We tried some different things. I got up onstage at sloppy joes. I played music. Lemonis he was supposed to be testing prices, working on the process, teaching stephanie and katie how it worked, proving to me that this was a good idea and not proving to me that he can go to a bar, get onstage and sing. It feels like everything he does, he kind of just wings it. Where was that for the goal for today . Because the goal when we left was sell coconuts here. Lets understand it. Lets learn, lets learn here. Vinny well, when you have a shop that was empty and. Lemonis but im seeing a lot of people in here. The things not selling doesnt mean that its a failure. Could be price. Vinny thats what we did. We learned that there wasnt a price resistance at 12. 99. Lemonis well, there must be if you only sold 10. Did you try any at 7. 99 . Vinny thats the wrong assumption with this amount of traffic flow, period. You could put them at a dollar, wed sell the same amount. Lemonis did you just hear what he said . Because i want to make sure i processed it right. Is this guy for real, or is he just trying to always sell me with his coco character . Vinny its not a price game. This is a traffic game right here. Its 5 bucks. Lemonis that sounds so stupid when you say that. Vinny this is the ultimate vacation beverage. Lemonis if we drop the price of our pie, would we sell more today . Stephanie oh, yeah. Vinny you really think so . Lemonis yes and you didnt follow the task, which was to learn. Vinny you told me to sell coconuts thats what im doing lemonis in this box, to. Vinny i came right back here. Lemonis . To learn, vinny. Vinny thats what im learning right now. Lemonis you told me that you guys sold six cases, which is actually not true. You showed up late. Youre out there walking all over town, and that wasnt the task. If youre looking to take your business to the next level, log on to. Yeah, im married. Youd do that for me . Really . Yeah, id like that. Who are you talking to . Uh, its jake from state farm. Sounds like a really good deal. Jake from state farm at 3 in the morning . Who is this . Its jake from state farm. What are you wearing, jake from state farm . Uh. Khakis. Hey, do they ever ask you what youre wearing . Uh. Yeah. Red sweater, button down shirt. Like a good neighbor, state farm is there. Youre having one more bite no one more bite kraft. For the win win. For adults with moderately to severely active crohns disease, stelara® works differently. Studies showed relief and remission, with dosing every 8 weeks. Stelara® may lower your ability to fight infections and may increase your risk of infections and cancer. Some serious infections require hospitalization. Before treatment, get tested for tb. Tell your doctor if you have an infection or flulike symptoms or sores, have had cancer, or develop new skin growths, or if anyone in your house needs or recently had a vaccine. Alert your doctor of new or worsening problems, including headaches, seizures, confusion and vision problems. These may be signs of a rare, potentially fatal brain condition. Some serious allergic reactions and lung inflammation can occur. Remission can start with stelara®. If youve been financially impacted by covid19, janssen may be able to help. Whats gonna happen next in the market, can i get rich quick . , companies are saying. We dont know how we are going to be doing in the next couple of months. Were withdrawing our financial guidance. So, there seems to be a massive disconnect between whats going on in Corporate America and what investors are believing is going on in Corporate America. The message to you dont trade because you think youre gonna get rich quick. Because you think. Leyoure out there walkinge. K youre gall over town quick. When that wasnt the task. Vinny by the way, i also recorded some instagram videos and facebook, and im driving traffic. I just went live about an hour ago. Lemonis folks, im sorry. Please step forward. I apologize. Were here, acting a little coconuts. Woman 2 thats so funny. Lemonis you and i are going to take a walk. Vinny okay, sounds good. Lemonis actually, well just jump on the cart and go. Vinny alright. Lemonis the one thing that vinny has done really well is surround himself with a great team, but right now, i want to just spend all of my time working with him. He hasnt made a good first impression, second impression or third impression. Like, is this [bleep] really happening . More importantly, why am i still here . I dont know who the real vinny is, but im gonna find out right now, or im gonna send him home. Vinny hemingway home. How long has this place been here . Lemonis lets go find out. Vinny oh, wow. Its nice and cool in here. Lemonis the history is pretty amazing. Vinny it is. Lemonis part of the reason why i wanted to take vinny to Ernest Hemingways house is because this is a gentleman who obviously wrote a lot of fiction, and what i cant tell with vinny is the difference between fact and fiction. So this is pictures of hemingway at different periods, and in every single picture, he looks like a different character. Vinny he sure does. Lemonis thats the creative side of him, but when it comes down to how many books were sold, if he made or lost money, its hard to mix the two worlds. Im trying to be patient, and im trying to be openminded. I just dont understand whats going through his mind, and im not sure if his insecurity and his nervousness and his anxiety have kicked into overdrive, and its just making him say and do silly things. Vinny you know, cocovinny is somebody that was invented by me. Lemonis so its fictional. Vinny sure. Lemonis . Like ernest hemingway. Vinny but i also get to play that character, and i am that character. Im shy. Ive been a fat kid my whole life, so maybe its a part of just wanting to fit in, so theres a real story, a real person. I grew up really fast. I had to be really responsible really young, so i just wanted to make my life as fun and as carefree as i possibly can. Thats why its not just some schtick. Lemonis are you aware that some people see it as that . Vinny sure. Lemonis i do feel like sometimes, you get caught up in the character. If you could work on putting some precision behind the facts and just checking yourself because i think what happens is, it undermines the character. Vinny right. Lemonis it starts to click for me that he is the way he is because hes trying to overcompensate for some insecurity that he has, and im more sympathetic to that, but we have to understand when to turn it off. I think vinny struggles with the dial. I think you have to look at what youve created totally differently. Vinny okay. Lemonis whats the Golden Nugget the business has . Vinny the tap. Lemonis thats it. Now, im gonna test out this theory with you. Vinny okay. Lemonis if i were you, i would think about how i could split up the world geographically and financially to monetize my invention. Vinny territory licensing is what youre saying. Lemonis just for the distribution rights of the tap. So the way that i want vinny to think about this is how to slice and dice the United States in a way where the areas can be defined as territories. He would give people the rights to sell exclusively this tap in a specific geographic area. The easy thing for vinny is that now, all he has to do is invest in inventory and taps no manufacturing, just simply buy the taps, shift them to the distributor and make the difference between the cost it took to make the tap and the amount of money that you could sell the tap for. That was pretty cool, wasnt it . Vinny that was cool. Thanks for showing me that place. Hey, marcus. Lemonis yeah, hey, buddy. Vinny good to see you. Lemonis how are you . Vinny im good. Im good. Oh, this is nice out here. Lemonis isnt it nice . You look nice. Vinny thanks. Lemonis so where do we go from here . Because i have no interest in investing in the coconut business. Vinny okay. Lemonis its a fun thing, but its just not my thing. I have interest in understanding where money can be made as it relates to the tap. Vinny great. Lemonis so wheres your paperwork on the utility patent . Vinny so i have all of our attorneys paperwork. Lemonis and has the patent been issued . Or is it. Vinny no. Lemonis . Patent pending . Vinny no. We filed a very, very broad patent. Lemonis and when do you expect to actually be issued that patent . Vinny well, ive talked to the attorneys, and id say, at the most, a year. Lemonis so the offer that i want to make to you right now is that im willing to give you 100,000 down payment. I would want to be absolutely clear that i can bring in two to three licensees inside of my territory, and they, without question, can get an absolute clear trainingmodule presentation on how to start, how to executive, how to fulfill. Vinny which territory would you want to talk about . Lemonis well, the only territory that i have any interest in is south florida. Vinny south florida meaning miami . Lemonis i would say orlando down. Vinny orlando down . Lemonis yeah. Vinny thats all of florida. Lemonis alright. All of florida. But if your utility patent is denied, the agreement is off. The other requirement is that im gonna want to see true financials on the las vegas market, okay . Vinny yeah, okay. Lemonis do we have a deal . Vinny so basically, when we work together. Alicia do you have an offer for me . Vinny yeah, we definitely can. Yeah. Lemonis i really think theres a deal here, but you got to get your [bleep] together. You know limu,g after all these years lemonis if your utilityatent is denied, its the ones that got away that haunt me the most. [ squawks ] cause youre not like everybody else. Thats why Liberty Mutual customizes your Car Insurance, so you only pay for what you need. What . Oh, i said. Uh, this is my floor. Nooo only pay for what you need. Liberty. Liberty. Liberty. Liberty. Its a thirteenhour flight, tfifteen minutes until we board. Oh yeah, we gotta take off. You downloaded the Td Ameritrade mobile app so you can quickly check the markets . Yeah, actually im taking one last look at my dashboard before we board. Excellent. And you have thinkorswim mobile so i can finish analyzing the risk on this position. You two are all set. Have a great flight. Thanks. Well see ya. Ah, theyre getting so smart. Choose the app that fits your investing style. When you think of a bank, you think of people in a place. But when you have the chase mobile app, your bank can be virtually any place. So, when you get a check. You can deposit it from here. And you can see your transactions and check your balance from here. You can detect suspicious activity on your account from here. And you can pay your friends back from here. So when someone asks you, wheres your bank . You can tell them heres my bank. Or heres my bank. Or, heres my bank. Because if you download and use the chase mobile app, your bank is virtually any place. So visit chase. Com mobile. [shouting] [clapping and shouting] [cymbals clanging] [knocking] room for seven. And much, much more. The firstever glb. Get 0 apr financing up to 36 months on most models, and 90day firstpayment deferral on any model. The agreement is off. For me to allow that money to be deposited is that im gonna want to see true financials on the las vegas market. Vinny yeah, okay. Lemonis do we have a deal . Vinny we have a deal. Lemonis okay then. Vinny thank you so much. Lemonis alright. Vinny thanks, marcus. Lemonis see you in a few weeks. Vinny okay. Whoo lemonis how you doing, buddy . Vinny good to see you. Lemonis nice to see you, brother. Im taking vinny to beyond green, which is a biodegradable company that makes things like storage and shopping bags, and i want to see if they could actually make a biodegradable tap so that when the coconut gets thrown in the garbage, it actually totally biodegrades. So what is this . Is this it . Veejay yes. Lemonis and how does it happen . Do you melt it . And what does it cost to manufacture this . Veejay at maximum, for 25 cents apiece. Lemonis and what do you currently buy your taps for . Vinny were in that same range. Lemonis to make a Smart Environmental business decision that has a price difference of essentially nothing, well, theres no question about it. Were moving forward with the biodegradable one. So you and i are gonna work on how the presentation of the product is going to work, how a licensee would understand, whats the steps to actually get somebody to actually buy off on, okay . Lets go. Vinny alright. Sounds good. Lemonis im gonna give you a marker, so you can outline how you believe the coconuts territories should be divided up. I felt it would be a good idea to actually start to develop how the territories should be divided and clearly define what that would look like. Vinny i need to focus on hot tourism spots. Just gonna. Lemonis what are you doing . Vinny im just circling territories. Lemonis youre circling states that. Vinny yeah, well, i mean, some of these states, i know. Lemonis . That our forefathers already mapped out for us. Vinny i mean, the top 10, i believe, are all right here. Lemonis alright. So why dont you rank those territories from 1 through 10 . Vinny doesnt seem to necessarily have much thought about how the territories should be divided, and i would have thought that he would have mapped it out, he would have thought about it, but im standing here like im talking to a deer in headlights. Number six is what . Vinny im gonna say austin, texas. Do you know where austin is . Lemonis i do. Vinny can you show me . Lemonis no, sir. Vinny alright. I think that covers austin, too, so well just call it west texas. Lemonis so wheres vegas . Vinny id say vegas is probably number eight . Lemonis you need to get more granular than just drawing giant circles. Vinny okay. Lemonis it cant be like youre gonna get cocolove, and youre gonna get me, and youre gonna get the brand. Vinny i get that. Lemonis because youre gonna find that some people will get that, and theyll appreciate it, and others, its gonna feel intangible to them. Vinny okay. Sorry. Woman 2 oh, no lemonis hi, there. Alicia hi. Lemonis are you alicia . Alicia i am. Lemonis how are you . Im marcus. Im taking vinny to meet alicia. Shes the entrepreneur that owns a number of restaurants in huntington beach, right on the beach. My primary objective here is to see if vinny has learned anything since the day i met him, and does he know the difference between cocovinny and vinny the businessperson . Vinny so this is a freshtapped coconut. Alicia so let me ask you this. You have the patent for this . Vinny im the inventor of that. Alicia okay. Vinny were patentpending right now. Alicia okay, got you. Vinny so basically, when we work together. Were doing licenses right now. We show you how to tap and brand your own coconuts. Alicia so almost like a franchise. Vinny there you go. Yeah, so. Lemonis youre confused . Alicia yeah. Lemonis can i grab him real quick . Alicia sure. Lemonis alright. Vinny timeout. Lemonis so this is why i wanted to see you do this because its clumsy as [bleep] youve got to be able to give people a path, and it feels clunky right now. Vinny yeah, it is. I havent sold it yet. Lemonis so i need you to slow it down, super clean, super tight. Vinny got it. Lets do this again. Lemonis its not that vinny doesnt know the concept. He doesnt have it written down and organized how to deliver a pitch in a very methodical, stepbystep way. Vinny so right now, if you would buy this product, you would actually own this. Nobody else could do it. You would control the supply and the demand of the freshtapped coconuts on bolsa chica. Alicia okay, so do you have an offer for me to do bolsa chica . Vinny yeah, we definitely can offer you that to you, so, yeah. I mean, that. Lemonis i really think theres a deal here, but you got to get your [bleep] together. This mechanism was filed before yours was filed. It looks pretty similar. Vinny its a little bit cococrazy right now. Ive never seen that before. Lemonis do you believe that this is what is preventing him from getting a patent . Dylan oh, absolutely. However, there is one thing you can be certain of. The men and women of the United States postal service. Were here to deliver cards and packages from loved ones and also deliver the peace of mind of knowing that essentials like prescriptions are on their way. Every day, all across america, we deliver for you. And we always will. If your child doesnt 1 iseem themself at times,ed. They may not be hydrated enough. Wabba wabba all new, Plant Powered creative roots gives kids the hydration they need, with the fruit flavors they love, and 1 gram of sugar. Find new creative roots in the kids juice aisle. A newlywed. A guy who just got into college. Thats why behind these masks, Johnson Johnson scientists are working to accelerate development of a covid19 vaccine, drawing on decades of experience responding to Public Health emergencies like ebola and hiv. For the life behind every mask, the clock never stops and neither do we. We aint stoppin believe me go straight till the morning look like we wont wait, were taking everything we wanted we can do it all strength, no sweat for just 100 a month. Switch to sprint and get four lines of unlimited plus, were throwing in four Samsung Galaxy phones, on us. And now, sprint customers enjoy access to expanded coverage on the tmobile network. For people with hearing loss, visit sprintrelay. Com. Original crown molding, walk in closets. We do have a ratt problem. Round and round with love well find a way, just give it time. At least geico makes bundling our home and Car Insurance easy. It does help us save. Round and round with love well find a way, just give it time. Round and round what comes around, goes around. For bundling made easy, go to geico. Com vinny yeah, we definitely offer can offer you that to you. Ca . Lemonis i really think theres a deal here. Vinny okay, i do. Lemonis but you got to get your [bleep] together. Vinny we would come up with, like, a small down payment. Call it 20 grand, right . Alicia okay. Vinny Something Like that. To keep your exclusivity, it would be like 10,000 taps a year, and then you would pay 1 a tap, and then we would come in and train your staff on how to produce them. You would be our exclusive licensee distributor on bolsa chica. Alicia okay, so heres the deal. I like the brand. I like the concept. The only thing is, 1 is just a little bit too expensive. Vinny you know what else i see is, i play the ukulele. So id be down here with the whole crew, and we could actually come and promote this and get behind it. Lemonis no, no, no ukulele, dude. Lets just sell some taps here. Make some money. Then you can buy another ukulele, whatever. Alicia in order for me to get behind Something Like this, what im gonna need back is some support, and that support has to come past a ukulele. Yeah. Vinny well come up with that. Alicia okay, yeah. Vinny well work that out together. Lemonis im disappointed. He didnt have his training tools right. He didnt have his pitch down. He didnt understand the economics, the numbers and the territory concept. I wanted him to get a deal done. You got to have your pitch right because it throws people off. Vinny yeah, i know. So this is Sales Training and production training, so it gives you the overview. Lemonis its been a week since the botched presentation at sealegs, and im back to check in to see how the training module is going, which, by the way, was due, like, 3 weeks ago. Vinny we educate the people about the coconut, packaging and labeling, palletization. Lemonis well, wheres the. You said that the distribution was in here . Vinny no, thats not in here. Lemonis where do i get the coconuts from . How do they need to be stored . What temperature does it need to be in . Where is that in here . We need to add that in. Vinny we need to add that. Lemonis okay. I dont feel like hes putting in the effort and the thought to lay out a plan. I cant afford to have him winging it with other peoples money. Its too dangerous. So i would encourage you to go back. Vinny okay. Lemonis . And really think about refining this. Vinny yep, agreed. So that is called a diamondcut coconut, and what we invented was the cocotap. Lemonis i wanted vinny to pitch his concept to contemporary marketing. Its a company that ive worked with with lots of different projects. Michael 2 oh, yeah. Lemonis they represent tons of brands to lots of retailers, and i thought, if vinny can make a good impression on mike and adam, then maybe theres actually something viable here. If not, then maybe my gut is telling me something different. Vinny one thing that nobody is gonna have is the Colonel Sanders of coconuts, and thatll hold strong to the end of time. Were building something that is cocolove. This is a purpose, a passion, a. Michael 2 well, thats good, but lets. Can we get into the numbers . Because thats really where, how do i make money . Vinny sure. Adam and whats your growth from day one . Lemonis do you have your financials with you . Vinny actually, i just have my license and pitch. Michael there is a patent . Vinny were patentpending right now. We have protection. Michael 2 that just worries me because anybody can change a little bit of a widget, and your patent is blown up, and you dont have a patent, then you dont have a product. Vinny but its gonna happen because the cocodream is real. Lemonis to be honest with you, im getting kind of embarrassed by whats happening here. Instead of vinny dropping his facade, he continues to put up his wall and his facade confusing not only me but almost annoying everybody else. Vinny great meeting you, too. Michael 2 nice to meet you, too, man. Lemonis look, vinny has continued to string me along with this whole patentpending process. Ive seen no documentation and have no confirmation. At this point, i want to get confirmation right now. Dylan dylan. Lemonis hey. Hey, marcus. Dylan hows it going . Its good to meet you. Lemonis how are you . Nice to meet you. So i decided to hire a utilitypatent lawyer. All these documents and all the applications are public records, so i asked the attorney to actually pull all the records, so he could explain, how close are we to getting the patent . Dylan theyve gone through a series of rejections and responses, rejections and responses, and they havent been able to get the rejections resolved to the point where the examiner is convinced that whats claimed is new and nonobvious. Lemonis how many times has the this is what makes it different rejection happen . Dylan four rejections and then responses to those rejections, and they currently have a rejection that came out late last month where all of their claims are rejected. Lemonis so if you were going out on a date, youd probably move on at some point . Dylan yes. Lemonis hey, bud. Vinny hows it going . Lemonis how are you . Vinny good to see you. Lemonis hows it going . Vinny good. Whats your name . Dylan dylan adams. Vinny hey, dylan. Dylan good to meet you. Lemonis so i reached out to him. He was able to pull all of the applications and all of the time lines. Dylan so the rejections are based on prior art, and this is the current prior art that is being used to reject them. Lemonis young coconut insert that is used to deliver the contents of a young coconut in a hygienic and safe manner. You created a device that goes into the coconut and has a cap on it. Vinny right. Lemonis they have a device that goes into the coconut and has a cap on it. Vinny okay. Lemonis do you believe that this artwork is what is preventing him from getting a patent . Dylan oh, absolutely. Lemonis it looks pretty similar. I mean, if you look at it. Vinny its a little bit cococrazy right now. Ive never seen that before. Lemonis while i dont think vinny was being blatantly dishonest about it, i think he likes to just glaze over the details like the important ones, like the fact that you applied and were rejected four times. This mechanism was filed before yours was filed. Vinny mmhmm, okay. Lemonis but this is the exact same thing. You told me that you were the only one that had it, and you invented it. Vinny i did invent this. Lemonis you invented that . Vinny yes. I have more foot to stand on with market success. Lemonis but the fact that its been rejected four times is a problem. All along the way, youve said one thing, but the reality is something different. Vinny okay. Lemonis and rather than following it up with true data and facts, you go into a different direction. We have rolled out teams across. Our network, and we went from essentially no televisits to approaching 5,000 visits a day. These visits are surprisingly intimate. I can actually share my screen and show the xrays. We really moved some mountains in our network, and teams has been a huge part of that. This is going to be a game changer for medicine. Add some resistance. Sara, your movie plus trial is about to expire. Do you want to continue or cancel . Capital one knows life doesnt update you about your credit card. So meet eno. The capital one assistant that looks out for charges that might surprise you and helps you fix them. Another way capital one is watching out for your money when youre not. Whats in your wallet . burke at farmers, we know a thing or tweve seen a thing or two. Like how nice it is to save on your auto policy. But its even nicer knowing that if this happens. Or this happens. Or this. Or this. Or even this. Weve seen and covered it. So, switch to farmers and you could save an average of three hundred ninetyfive dollars. Get a quote today. We are farmers. Bumpadum, bumbumbumbum i geh. Common bird. E. Ooh look over here something much better. There it is. Peacock, included with xfinity x1. Remarkable. Fascinating. Very. It streams tons of your favorite shows and movies, plus the latest in sports news and. Huh run the newest streaming app has landed on xfinity x1. Now thats. Simple. Easy. Awesome. Xfinity x1 just got even better with peacock premium included at no additional cost. No strings attached. Just say peacock into your voice remote to start watching today. Vlemonis but the factt to stthat its been rejectedess. Four times is a problem. Vinny i dont agree with you. Dylan theres no way hes going to be able to get a patent on the broad idea of sticking something in a coconut and then having it be sealed. Lemonis we also dont know that somebody else couldnt just create one. It may have different functions and features. Vinny right. Lemonis but if they create something that goes into a coconut, theyre not gonna get protection, and youre not gonna get protection because of this. Vinny one thing we are protected against is that theres a real cocovinny that can sell this through. Lemonis im sorry. I dont understand. Whats the patent on cocovinny . Vinny theres only one of me, and thats the brand, and thats the real true cocosoul and cocolove thats gonna drive this to the end of the earth. Lemonis you can tell that vinny is getting uncomfortable, and hes retreating back into his salesy kind of pitch. When he gets into trouble, he starts selling me about cocothis and cocothat and cocolove and cocosoul. Cocostop. The real business here is the tap and not cocovinny. Theres nothing legally prevents somebody from entering the space. Vinny okay. Lemonis thank you so much. Dylan yeah, for sure, absolutely. Glad to help. Vinny appreciate it. Dylan good to meet you. Lemonis hi, bud. Vinny hey. Lemonis did you bring any updated financials with you . Vinny theyre all coming together. Ive been working on it ever since we had that meeting. Lemonis okay, so in process. Vinny yes. Lemonis okay. Ive asked vinny to meet me at my office where i can have an honest conversation about where his financials are, where the training module is and where we are on the patent. Are the training modules totally complete . Vinny no, theyre coming along, though. These didnt exist before. Lemonis all along the way, youve said one thing, but the reality is something different. Vinny okay. Lemonis and you have a tendency to speak in tenses that make it seem like it already happened, and what you dream and what you want and what exists. Vinny im morphing something into reality. Youre making it real before its real. Lemonis yeah, and rather than following it up with true data and facts, you go into a different direction, and i think it hurts your credibility. Look, i think the idea that you came up with is really good, but im not here to be a licensee today. I just think that, for me, the risk is too great. Vinny okay. Lemonis like, youre a good dude, but i dont want to be coconuts myself by moving forward. I give you a lot of credit for putting your heart and soul in it. Vinny ive grown so much since we met. Its been challenging. Youve brought some amazing ideas, advice. Thank you. Lemonis and i give you a lot of credit for that, and i think youre a super dude in that regard, okay . Vinny thank you. I really appreciate it. Lemonis i wish you a lot of luck, buddy. Well see you around. Vinny alright. Thanks, marcus. Lemonis ultimately, i blame it on myself because i wasnt able to get him to learn the important Building Blocks required for running and owning a business. I hope he learned through this process that ultimately, business isnt just about being silly or funny. Vinny oh, that kind of sucked, but actually it didnt, i guess. Wont you be my sexy cocoqueen . Scream and shout you know we tap it out youre so fine you make me blow my mind tonight cocolove always. Im craig melvin. And im natalie morales. And this is dateline. Vestigators brought somebody over to me, saying this is our Violent Crime advocate. I was steeling myself for it already because of the Massive Police presence. They said that they believed that he had been murdered. Craig melvin craig rideout, dad of seven, cared deeply about his kids. Robbyn he was a loving man, provider, warm. Craig melvin so it was puzzling and alarming when he vanished. Pj she said, craigs not here. I said, thats weird. I didnt know what was happening. I know something is wrong