We need to tweak it. Lemonis his sales pitch definitely needs work. Lemonis ethan is concerned about needing more space i think you guys have done a [bleep] job explaining to them why they need to own it. As the business continues to grow, but in order to accommodate that growth, and his Business Plan needs a reality check. You dont have to actually just get bigger yourself, i think your numbers are obscenely wrong. You can find Strategic Partners you can get help from. If i cant get him to loosen up and work on collaborating. And so, im taking them to miami to rocket trailers, ethan i think there were a lot of people that were saying the same thing about a car, a company that understands the marine space when henry ford came out with the car. And, quite frankly, can build any trailer they were happy with the horsedrawn carriages, for any size product. But i think that, you know, longterm, worked out in a different way. Mario whatever you want custom, you can get done. Lemonis . This company may be up a creek without a paddle. Ethan uh, well, for me and what, you know, weve got a deal . I like to do, is just innovate and change things quickly ethan uh. Uh, well, i, the. And work on things, like, right there. Um. Mario instead of doing things and messing up lemonis my name is marcus lemonis, and doing em over again, well do the messing up and i risk my own money to save struggling businesses. And youll get the product you want. Mike which allows you to work on your innovation. Were not gonna wake up every morning wondering if we have a job. Were gonna wake up every morning leave the trailer manufactures to the trailer people. Wondering how many jobs we have to do. Its not always pretty. Lemonis how much did the trailer that you make everythings gonna change. Everything. At home in ohio weigh, and what does it cost . But i do it to save jobs, and i do it to make money. Ethan it weighs about 400 pounds, and it costs us about 2,000 bucks. This. Lets go to work. Lemonis to make. Ethan to make, yeah. Is the profit. Lemonis what does this weigh . Frank this one weighs around 4 1 4. Lemonis okay. So, pretty close. Ethan pretty close, yep. [ train whistle blows ] frank and then the retail price in this one is 1,395. Lemonis the retail price . Ethan yeah. Im heavily invested in the outdoor space lemonis so, what would you sell this to a dealer for . Frank a dealer, we sell it at 10 off. With Companies Like camping world and gander outdoors. And so when the company reached out for help lemonis its half the price. Ethan yeah. And i went online and did a little research, lemonis you can see that the quality of the rocket trailers i was intrigued because there were products is infinitely better than what ethan was doing. That i had never seen before. Theres a level of technical ingenuity and thats no criticism of him. That you just dont find in most outdoor products. Its just not his core competency. If you think this is a good quality. And if i can figure out a way to strike a deal ethan yeah, i think it matches, and its what were looking for. And get access to distribute these products, lemonis it matches your brand. Ethan yeah, yeah, i think so. It could be a winwin for everybody. I think its a good fit. Ethan hello. Lemonis hey, how are you . Lemonis pretty good. How are you . Lemonis im good. Im marcus. Ethan yeah, welcome. Nice to see you. Lemonis what is your name . Ethan im ethan. Lemonis hi, guys. Nice to see you again, brother. Lemonis ethan, nice to meet you. This is cool. Ethan yeah. How are you . Ethan how you doing . Lemonis this is ethan and jules. Lemonis so, smithfly, tell me a little bit about the company. Ethan and jules keep telling me that theres a lot are you a fly fisherman . Ethan oh, yeah. Of International Demand for this product. And i was just frustrated with what was on the market at the time. I started doing some of my own design work. And its not that i dont believe them, but i want to validate that. So, this was the core product line, so, im taking them to cala marine. Which is based on kind of the military concept its a distributor that focuses on most of south america, of modular packs and bags. Like, this is molle webbing, which stands for latin america, and the islands. Modular lightweight, loadbearing equipment. And i want to hear their feedback if jules and ethan you can mount multiple pouches, too. I sort of introduced it to the fly fishing side of things. Are actually on the right path. Jules okay. So, like, i brought it to them. So, one of the things that has made this the raft lemonis so, what is this bag used for . That Everyone Wants is the weight. Ethan uh, so, it holds tippets, spools, and like, fly boxes its superlight. And kind of everything you need to be on the water to fish. The bottom has little holes so that the water selfbails. Lemonis this is for fly fishing. Ethan mmhmm. Yep. Ethan and it floats in nexttono water, lemonis and are these straps right here . So were talking inches of water. Ethan those are for, like, a belt. Ethan we did a version of it but the cool part is, straps mount to here that were calling the palapa raft. Or a padded like waist belt mike whats the Weight Capacity . Ethan we say about 1,200 pounds, that you can mount multiple patches to. But the hull design should float more like 4,000. So, the idea is people can build their own packs. Lemonis this is awesome. Ethan yeah. Jules its the same class as the raft, lemonis whats really cool about ethans designs so its superdurable. Is that the user can actually customize mike whats the weight on it . Ethan uh, its about 75, 80 pounds right now. Exactly how theyre going to use his products, mike thats heavy. Kurt if you could lighten and its almost like legos for an outdoorsman, this up for Emergency Response market where they can bolt on Different Things or strap them on. By using a thinner fabric. Ethan thinner fabric, smaller tubes all the way around. Its kind of fascinating. Thatd be cool. What did you do before this . Lemonis allinall, you guys think this is a decent idea . Ethan uh, i was in retail design. All yeah. Lemonis the two of them we actually did the original Gander Mountain design, are doing an infinitely better job like, believe it or not, like. Lemonis the inside of the store . Of presenting the company and its products ethan yeah, the whole retail design was like, our package. Than they did back at gander. Lemonis did you design all this, as well . Ethan yeah. And the interesting part about this is, i feel like jules feels more comfortable in her environment, these little lasercut slits is a pretty unique feature that i designed. And ethan is allowing people to give feedback, lemonis is it ventilation . And hes not defensive every time they say something. Ethan no, its actually for my pouches. Ethan this is our rain jacket that we developed lemonis so, all these slats have a purpose. That has lasercut panels up here ethan right. And theres nobody else that makes this. That allow you to put whatever tools youre going to use. Lemonis this stuff is fricking awesome. I think we can really sell the pants off of those. Its more of a tool than it is a jacket. Marcos i was going to say, chile, i think its going to be very interesting. But feels a little big. Ethan mmhmm. Marcos you guys planning ethan ive always said that like, to have a catalog with full line of products and Everything Else . Im not really in the fashion business, im like an industrial designer. Function comes first for me a lot of times, lemonis when will we see that . So like, in the industry, jules well, i would say that we ive gotten a lot of critiques from the soft goods side we havent moved ahead on some of these things, just because of name, you know, looking at. That say my stuffs a little drab. But im like, hey, you know, like, theres ethan just finalizing things, finalfinal. The people who get it, get it. Jules . You know, what thats going to be. Lemonis i thought it was odd that ethan got really defensive lemonis did you guys just hear ethan and jules over something as simple as me tell the team at cala that the name hasnt been finalized, commenting that the product that i just put on was a little big. Because, in my mind, it has. I wasnt criticizing the product. If jules and ethan arent fully sold on this whats the name of the boat . Ethan the big shoals raft. Umbrella name change idea, shoals means, you know, shallow water, and big means big. It probably wouldve been a good idea for them so, its a big thing that you can put on really shallow water. To bring that up outside of this environment. Were doing it better than other people jules we have been predominantly fly fishing, cause it weighs 125 pounds, so the name is smithfly. So two guys can pick it up and carry it to water. And we use materials that are really, really good. You think that would be, um, so, the competitions making stuff in china, a problem to keep as smithfly on products . And were using really thickwalled aluminum, doing all the bending and welding inhouse, would that be confusing . Rob as far as like, in the islands, solid onepiece welded frame. And thats what people love about it, is its stability, theres not much fly fishing going on. The lightweightness. Lionel fly fishing in the fishing market, lemonis this. Ethan yeah. Lemonis and then, whats this . Its a small, small market. Ethan thats the same boat, just different color. It fits in the back of a pickup truck. We talking maybe 3 . Lemonis what does this cost to make . Ethan 1,500 bucks. Kurt i dont think you should wrap yourself lemonis and what are you selling it into one market segment. Directtoconsumer for . Ethan right now, were at 3,848, is the msrp. Lemonis thats a pretty good margin. Lemonis if your business is in trouble and you and need ethan its okay. That includes 500 bucks for shipping. My help, log on to theprofitcasting. Com. Lemonis mmm. Ethan cause then the people i know. And its like, logistics on these things have been a fricking nightmare. Lemonis heres the problem, right. We have the same problem in the rv business. People are going to shop the price, and if you bury it in the price, your competitors are going to prey on that. In todays competitive ecommerce environment, consumers are going to start by shopping on price. Ethan gives himself an immediate disadvantage by the way he presents the price to the consumer. Because the competition is going to sell the product, then theyre going to add shipping and whatever other costs are associated with that. Right out of the gates on a comparative basis, he loses. I mean, honestly, i would buy one of these, and i dont in a highly capable lexus suv i dont even know what i would do with it. At the golden opportunity sales event. Ethan youd have a lot of fun. Lemonis id probably put it in my pool or something. Lease the 2020 nx 300 for 339 a month for 36 months. How did this come to be . Ethan its pretty cool, isnt it . Experience amazing at your lexus dealer. I said, how about we merge the raft and the tent . Its a big thing that you can put on really shallow water. Lemonis im going to say, this is the coolest fricking thing ive ever seen. Ethan weve had 100 million views on facebook of this. Theres never been one in the world. Like, this is the first one. Lemonis i think theres things that you can still add to it. Ethan we just tell everybody like, when they buy this, did you know the existing chlorine in your homes water experience amazing [ ] you have to know and understand your safety regulations. So youve got to have life jackets, can cause your clothes to fade . Youve got to have an anchor, youve got to have paddles, try new snuggle supercare®. You know, youve got to have backup paddles the supercare® Technology Helps neutralize the chlorine in your laundry cycle, lemonis and you have all that . Ethan no, we dont sell that lemonis you should sell all of it. Helping to keep your clothes looking newer for longer. Ethan oh, i know. Lemonis how many have you try new snuggle supercare®. Sold of these . Ethan 50. 50 or 60. I cant ive lost track right now. Lemonis and what does it cost to make this, fully set up . Ethan its about 500 bucks and it sells for 1,499. In a highlyconnected lexus vehicle at the golden opportunity sales event. Lemonis dude . That price needs to go. Lease the 2020 es 350 for 359 a month ethan up, you think . For 36 months. Lemonis yes ethan im im with you. Experience amazing im just not that hardass, and i need to be more. At your lexus dealer. Lemonis ill ill be the hard ass. Ethan thats why youre here. Lemonis have you ever been to an event hers smell this. Experience amazing where you go into this booth and theres wind and theres cash moving around . Ethan oh, yeah. upbeat music thats why febreze plug has two alternating scents lemonis thats what this thing is. Okay . This thing is a giant cash machine. And eliminate odors for 1200 hours. Ethan oh. Well, im glad you think so, too. Breathe happy febreze. La la la la la. Lemonis how do i get from point a to point b . Ethan we build a trailer thatll hold this and the tent. Theyre going to be paying for this for a long time. Lemonis how do you sell today, directtoconsumer . Ethan pretty much. Yep. Lemonis online . They will, but with accident forgiveness ethan yep. Everythings ready to go. We just have to be caught up on production, allstate wont raise your rates just because of an accident, even if its your fault. Which weve never been able to get, cause i cant float all that money out there. Cut lemonis are all of your inventory issues exclusively sonny. Was that good . Line the desert never lies. Related to working capital . Isnt that what i said . Ethan almost entirely. No you were talking about allstate and insurance. Lemonis whos handling, like, the ordering overseas . Raw materials, picking the colors, i just. When i. Lets try again. Everybody back to one. Coming up with new ideas . So, theres no help . Ethan jules. Like, its me and jules. Jules hi. Click or call for a quote today. Lemonis and, jules, what is your role here . Jules to do whatever ethan asks me to do. Lemonis you do the accounting . Jules i do. Ethan the office manager, admin kind of position. Jules and i really wanted to work here. So, i took guiding trips and learned to fly fish and lemonis just for this job . Jules just for this job. But i totally believe in what hes got here, and theres so many opportunities that we miss. We have rafts that are back ordered right now. And we lost sales on the tent because we couldnt fulfill the orders. Lemonis and you didnt have them in stock because you didnt have the working capital to actually put them in stock, right . Jules right. Lemonis if you dont have excess working capital, it could be just as detrimental to a business that has too much inventory. Its like everything just gets locked. Ethan oh, yeah, stuff gets pretty tight and scary. Lemonis and what about where they would all get stored . Like, if you had halfamillion dollars in cash, you could buy inventory, where would it go . Ethan ive got a huge basement that i can store stuff in, and i do have like but like, were working on buying the building across the street. Lemonis how big is it . Ethan its 55,000squarefeet. Lemonis im not sure i understand what ethans business logic is, of wanting to buy a 55,000squarefoot building to store inventory that he doesnt even have, and furthermore, in a highly capable lexus suv. Hes got a building that has a basement. Jules when i started last year, at the golden opportunity sales event. It was ethan and his dad and his fatherinlaw. Get zero percent financing on all 2020 lexus models. Lemonis oh, your dad works here, too . Ethan uh, he did for awhile, yeah. Experience amazing at your lexus dealer. My mom kind of got sick again, and so hes been taking a break for a little while. Lemonis your mom okay . Ethan yeah. On all 2020 lexus models. Yeah, yeah. Its a small, small market. Well, actually, the day i quit my last job we talking maybe 3 . To start this, she got diagnosed with stage 4 lung cancer. Kurt i dont think you should wrap yourself lemonis oh, man, im sorry. Ethan yeah. Into one market segment. And, um, yeah, so, sh lemonis i dont want to alienate hunters um, it was the same day i left my job. Or regular fishermen. But, like, they think theres lots of options, still. So, they went back to the drawing board, and they came up with different ways for his company to exist. Shes still got a lot of life in lemonis hows she doing now . Ethan actually, shes doing pretty well. So, anyway, hes hes kind of taking a little bit of a break. These are the name options. Youll see one of them is smithfly. But then weve got some new guys in from the Welding School what we said is, lets call the Holding Company something different, and you would that are absolutely topnotch, like, worldclass welder. Have these different rob right, different brands. Lemonis you would have smithfly, smithgear, smithwater. Rob i saw smithtech, which i liked, because its telling people that this is not only a technical, but an innovative company. Lemonis so, what, are these the frames . Ethan yeah, these are the frames that are raw lemonis well come back to you with the catalog, before they go across the street for powder coat. Hoping that you guys can rep us in that part of the world. Lemonis so, what does that frame cost . Ethan probably 750 bucks. Lemonis your boat costs about 1,500 to make today, well, guys, thank you so much. Ralph thank you, marc. Lemonis thanks, ralph. And the frame is half of it, at 750 . Thank you, sir. Luckily, we were able ethan right. Lemonis hey, ethan, im going to get everybodys head right about it. To spend a minute with jules, without you, but what i dont like is surprises like that, if thats all right . Especially in front of a potential distributor. What do you ultimately want to do here . So, the part that i didnt think went well, jules me . Lemonis yeah, you. Jules i personally think i would be awesome at the sales. Was your comment about, were waiting to figure out the branding. Lemonis you do . Jules im passionate jules okay. Lemonis okay. When i left last time, i thought, about the products. When people call and i get the call, not ethan, hey, were all in lockstep, but it sounds like i can sell the boat just like ethan can. The three of us are not in lockstep about it. Lemonis any time i meet somebody thats raising their hand saying, jules weve already made the name as smithfly, i want to be part of the sales organization, so people know us for all of these things. Tells me that they believe in the product and they want to be part of the future of it. Lemonis the business that brought you to the dance, thank you for chatting. Jules oh, no, of course. Smithfly, is not going away. Lemonis see you in a little bit, okay . Jules yes. Its just inviting other people to the party. Ethan its not necessarily a terrible idea. Its good. Ethan okay, so this is one of the trailers. Lemonis its good that its not terrible. Lemonis is it pretty sturdy . I set up a meeting for the end of this month. Ethan yeah, you can climb up there. Lemonis yeah. The trailer looks janky. And were going to go the headquarters for realtree. Ethan janky . Lemonis see like, theres a lot of sharp edges on this. We want to create a licensing relationship with them, but you can tell its its homemade. cause you just need somebody that does mass welding. Where we have the rights to use their very popular prints i give ethan a lot of credit that hes thinking outside the box, and fabrics across the boats, the tents, the apparel, looking for additional products to add to the company. And while that may happen in the future, and were going to let jules take the lead. Its probably better for him to outsource some of those things and focus on making so, lets get prepared for that. Jules okay. Ethan sounds good. The Core Products that he has perfect. Lemonis all right. Talk to you later. Ethan yep. Lemonis thanks, guys. Wheres our tent . Blow that bad boy up. Ethan comes already set up. Lemonis hold on, im going to time this, cause thats important. Okay. Realtree is the company that specializes [ air pump whirring ] in camo prints for the outdoor lifestyle. Its almost like getting the Good Housekeeping [ whirring stops ] ethan what happened . Jules i dont know. Seal of approval on one of your products. Lemonis fuse . Ethan blew a fuse. Lets go jules oh, look what hes got on lemonis try again. Lemonis were ready ethan hey, look at that so, if im spending how many thousands . Jules hey, nice. Lemonis were here on a pitch. Ethan 1,500. Lemonis 1,500. Weve got to be dressed with our stuff, right . Youve got to just remember that this changes if the camo print is part of or connected to that product the experience for somebody. Theyre like, what the. . Ethan yep. And it has realtree on it, retailers almost see that as a big check to put it in their stores. Lemonis if you we so, what do you guys have set up here . Jules yeah, so we brought a little bit of of everything. Lemonis so, what is this print . Big problem to solve. Jules mmhmm. Jules that is a realtree knockoff. Lemonis huge. Ethan no, its thats the real deal. Yeah. Jules oh, it is. Ethan i can go get the other pump, lemonis this is recent, just made. And we can be pumping both at the same time. Ethan mmhmm. Pretty recently. Lemonis yes, please. Jules [ laughs ] lemonis it looks good. Ethan yeah, so thats all the new features. Where are we . Lemonis what size is this . Lemonis 22 minutes. Jules your size. Ethan i believe thats a large. Ethan its coming alive. Jules it looks good. Lemonis hold on a second. Lemonis ready . Ethan yep. Can you see me now . Lemonis turn sideways, ethan. So, how are you going to explain your appetite for realtree . What is your pitch . Ethan its easier to paddle from the side. Well, more importantly, what is yopitch . Lemonis this thing is awesome. Ethan thank you. Jules no, its not my pitch, its his pitch. Theres an airbnb for nature in australia he did it. Lemonis well, i thought you were doing it. Jules well, ethan did it. Ethan were a team. That wants to do, like, 500 of em. Lemonis the fact that ethan has demand from a place she, you know, was talking to the customers and doing other stuff. As far away as australia tells me i didnt want to burden her with that or take her away. So we got to divide and conquer a little bit. That theres an international play here. Thats the way i look at it. Ethan highfive. Lemonis i have zero doubt in your ability lemonis whats to say that people in south america to be creative, but in order to move forward, right, if this business isnt going to be a oneman band, or in europe may not have the same interest . Ethan we wouldnt be able to do this with a real, you do have to lean on people a little bit more. You know, heavy jon boat so, lets divide and communicate, or Something Like that with a big motor on it. Not divide and conquer. Lemonis i still think you could figure out ethan sure. Lemonis do you want to head up . How to take weight out of it. Ethan sure. Absolutely. Ethan uh, no, you cant. Lemonis couple comments on the seat. It is flimsy. Ethan dont lean back like that. Lemonis oh, my gosh. Jules wow. Lemonis and its a little yeah, but you need to be lemonis this place is awesome. Youve got to think that somebodys going to want to. Bill bill jordan. Jules hi. Hi, bill. Ethan pull it up, pull it up. Lemonis am i holding im jules. Very nice to meet you. My hand right . Ethan yep. And then just throw the line back. Lemonis im annoyed at the fact that ethan put this entire its really a stop at 10 00 and 2 00 is what they say, presentation together without involving jules. So its 10 00 on the clock face. Lemonis stop. Ethan yep. A lot longer on that back half. Shes the one that is going to lead the sales organization. Lemonis i feel like i fly fish very well. You didnt see my wrist, how about it . I dont know why he would do that. And candidly, if we dont secure the licensing deal, my outfit was right, i was good. Im going to question whether my investment makes sense or not. Ethan so, we started pretty small, and we started in that niche market of fly fishing where do you think the business can get in the next five years . Because it was something i could wrap my brain around. Ethan ive got a plan that i think we could do 20 million in revenue. So we basically took that military concept were not there now. Like, this years breakeven. And designed a set of pouches for fly fishermen we lost money last two years in a row, so. So they could configure their own gear. Brian do you have any kind of design patent on that . Lemonis you did . How much did you lose . Lemonis and how are you funding that loss . Ethan patents in apparel are very difficult, cause they change one thing and its different. Ethan with duct tape and bailing twine. No. Lines of credit. So, thats kind of where we started in 2011, like, ive just not paid myself at all. And then we expanded. But yeah, i mean, i think with the right scale instead of picking up the normal inflatables that were out there, i designed my own, and the right partners, cause there just wasnt what i was happy with, out there. You know, we could get to 10 million, 20 million a year so, i found a good inflatable manufacturer. A friend of mine approached me about making a raft in revenue, i mean lemonis okay. cause my inflatable supplier made rafts. Well, why dont we go back, lets dig into the financials, so, he said, could we make a raft . And lets see if we can do something. And i said, sure, well do that. Brian what is the target market there . Ethan okay. Yeah, yeah, absolutely. You know, from a first glance, [ train whistle blows ] you think, what is a tent on water . Bill you almost need to break down each market. You know, fishing, hunting, and see how it fits. Ethan no, thats more like a party cove, kind of beer drinking platform. Lemonis any feedback that people gave, ethan was somewhat dismissive about it. Lemonis how are you, buddy . Ethan good. How are you . Lemonis everything good . Im standing here watching the realtree folks, ethan yeah, yeah, have a seat. And you could tell that they almost cant wait lemonis yeah. Ethan its great. For the meeting to be over. Lemonis so, did you bring your Financial Statements . Ethan uhhuh. I dont know what we want to ethan wed love to bring Something Back to you guys and not just be a licensee, if possible. Start with or whatever, but. Lemonis lets start with the pnl. Lemonis before we jump into that, can we take a twosecond timeout . Ethan okay. Lemonis what year is this . Ethan these are just vendors. This is this year. Can you guys just give us a minute . Lets huddle over here for a second. These are sales, raft sales here. Lemonis 238,000. Ethan and then theres shoal tent sales here, was 70,000. Lemonis so, the business, you think youll do 400,000 for the year . Ethan yeah. Lemonis 400,000 a year, plus or minus some revenue. What was your revenue last year . Ethan about 250,000. And about 150,000 the year before that. Lemonis 150,000 of revenue you lost. Ethan 48,000. Lemonis 2017. Ethan 68,000. Lemonis 68,000. And this year, youll probably do around 400,000. Ethan we could be close to breaking even. Lemonis how much debt do you have today . Ethan 240,000. Theres a sheet over here with that. Lemonis liabilities, 36,000 in payables, which are just your vendors. Ethan mmhmm. Lemonis and 238,000 in loans. Ethan mmhmm. Lemonis you own 100 of the Business Today . Ethan mmhmm. Lemonis i like the product, i like the way it was made. I like the fact to visit all the places we didnt know meant so much. S to get out and go again. That a lot of the parts and pieces are made here. I like the fact that you think about the functionality of it. But were all going at our own speed. And so, id like to make an offer to invest in you at enterprise, peaceofmind starts with our complete clean pledge, curbside rentals and lowtouch transactions. And invest in the business. My offer would be 1 million for 50 of the business. With so many vehicles of so many kinds, you can count on us to help you get everywhere you want to go. Again. Weve got a deal . Whenever youre ready, were ready for you. Ethan uh. Uh, well, i, the. Enterprise. So, um. No matter what challenges life throws at you, were always here to help baker when i think party raft, with Fast Response and Great Service i think of, how do you put a cooler in it, and it doesnt stop there how do you put cup holders in it . Ethan and we got 100 million views of it, right . Were also here to help look ahead its a unique product. Thats why were helping members catch up chris its a tough sell. Bruce yeah. By spreading any missed usaa insurance payments over the next twelve months lemonis i think you guys have done a [bleep] job explaining to them why they need to own it. So you can keep more cash in your pockets for when it matters most and thats just one of the many ways were here to help the military Community Find out more at usaa. Com to help the military community crankypated a bad mood related to a sluggish gut. Miralax is different. It works naturally with the water in your body to unblock your gut. Puts cash back in your wallet. Earn 5 cash back free your gut, and your mood will follow. On everything you buy at walmart. Com. Mom paper towels . Including things for the science fair. Whats in your wallet . Tnow that sprint is a part ofd. Tmobile we have more towers, more engineers, and more coverage than ever before. This is not just a Bigger Network its a better one. And now you can get an Awesome Network at an amazing price. Welcome to tmobile. Americas largest 5g network. Lemonis heres the numberone tip when you go into a presentation. Impressive. There is one more thing. Know your audience, ah. Jake from state farm. And go in there excited to talk about them, heres the dealwith the drive safe save app get them engaged and get their feedback. Youll save up to 30 for being a safe driver. Jules were really excited to be here, like a good neighbor, state farm is there. ® cause i know a little bit of your story. When you were going to that first show. Bill mmhmm. Jules and that you only had what you had in the booth that day and how walmart and bass pro came in and really, uh, partnered and helped you and developed relationships and that type of thing. Those are the things that were looking at, working with marcus, and then also working with you, so were excited to be here today. Bill we are, too. Glad to have you guys down. Lemonis i love the fact that jules did her research and that she opened up with the founder of realtree, creating this relatability about realtrees history. I could watch his engagement elevate instantly. Man oh, dang. Jules you can even stand up inside. Bill its stable. Man yeah, yeah. Jules yeah, its a dropstitch floor, so its got that taut when its inflated all the way. Brian when you show this on a presentation, were all sitting there thinking, what is the use of that . Bill right. Brian when you actually physically see it, feel it, touch it, it changes your perspective. Lemonis and with jules taking over, you can tell that she set the tempo perfectly. Jules this is our wader jacket. Brian tell you, its some goodlooking stuff. Man yeah, i love this. Lemonis shes engaging with them, shes having them try the products. Shes not overtalking them, and shes listening. Brian thats a highend jacket. Its got welded seams. You know, the zippers are sealed zippers. I mean, its very wellmade. Its a good product. Youll save up to 30 for being a safe driver. Jules so, bill, what do you think . Bill of course, thats a natural. Uh, well, i, the. Jules right . Bill i think that right there has just, uh, got a lot of possibilities. So, um. Jules yeah, i think so, too. So, uh so, like, we can do some business . Weve got a deal, yeah. Lemonis im excited. Ethan i am, too. Bill yes. For you. Itll itll be good. Jules [ laughs ] lemonis all right, my man. Ethan awesome, man. Lemonis glad were going to do some business together. We had fun. Lemonis okay, my man. Ill see you soon. Ethan thanks. Bill i am, too. Lemonis thank you very much. Lemonis thank you. Bill im glad you come down. Im really glad you came down. Lemonis thank you so much. Bill pleasure to meet you. Bill thank you for coming down. Jules yes. Lemonis i thought you guys did good today. And you were really good at warming them up. The two of you were talking, he was getting more comfortable. Welcome to kenosha in order to hit the ground running, and i like the fact that she went in for the ask. I brought ethan and jules to my gander outdoors store in wisconsin. And you went into the right person because he fell in love with the product. What i ultimately wanted to find out is, jules yes. Lemonis so, they love this. Do the people that work at the stores and the people that shop at the stores jules yeah. Ethan its fun. Actually like the products . Jules well, who doesnt love it . What are the things they think could be better, yeah, once youre in lemonis so, lets say and what do they think would sell right away . That you only sell 1,000 of these next year. Ethan the frame we make inhouse. Its all one piece, so its never going to creak okay, so how much is two a day . Ethan its 1. 9 million or squeak or get loose. Chris the seat would worry me a little bit. If we do lemonis and then if you do ethan but they are the lightest seat on the market. 1,000 of those, how much is that . Ethan yeah, thats 3. 4 million. Bruce if the seat breaks, you kind of lose lemonis so, how much is that in total revenue . A little bit of credibility with the quality of the boat. Ethan its like 5. 5 million. Lemonis selling two products, youve got to get the seat right. Being very focused and having really good partners. Lemonis chris, does it need to have a trailer . Jules amazing. Ethan yeah, its tremendous. Ethan inflated, it fits in the back of a pickup truck. Lemonis okay. In order for this company to be successful, lemonis okay. But not everybody has a ethan oh, right, right. It doesnt have to hit a grand slam. It can hit singles and doubles. Bruce itd have to be a pickup. Lemonis well, lets lets take it a step further. And ultimately selling 1,000 rafts a year, whats our primary business . Its not a stretch. So, how is this transporting in an rv . This company could easily do 5 million in the next year. And the margins are good enough that frames not fitting in there. That this could be a very profitable business. Ethan no. Chris youd still have to lets just take it slow and make good money. Break it, sidetoside. Lemonis were going to need a frame that is anything for me . Jules anything for you . A collapsible frame as an option. This is what i have for you. Bruce nothing fits right now, so youre really limiting yourself to only be a toy hauler owner lemonis i think ethan learned that hes got to be a better listener, he has to incorporate jules. That can take the boat. We need to tweak it, we need to get it right. If he can match up his skills with other peoples feedback, lemonis what do you think of the brand name, smithfly . Hes unstoppable. Okay . Jules yeah. Chris in this, it makes me think about fly fishing. Lemonis all right, lets get cleaned up. I mean, you might pigeon hole. Jules awesome. Lemonis get out of here. Would definitely, you know, see it as a fly fishing application. I notice everythings green, green and black. Is there different colors . Youve got. Ethan we dont do a ton of different colors right now. I mean, its pretty drab. Fly fisherman are pretty boring. Chris could you see it as a hunting application . Could you see it as camo . Ethan no. This is the jacket weve probably sold the most of, but its, uh, for fly fishermen. Lemonis i understand that ethan cut his teeth on fly fishing, but in order for the company to truly grow, what is this batmobile . Tonifeels like tron. He has to change his thinking. Two brash millennials use their socialmedia skills lets get away from singularly fly fishing, and lets think much broader. To build a booming online sock business. So, i thought itd be a good idea taylor be sure and like, subscribe, and comment below. To maybe let jules take this one. Tell a friend to tell a friend to tell a friend lemonis what did you say to me when we were together . To tell a friend. Lemonis . Racking up more than 2 million in sales. Jules i would like to sell this thing. Then they pretty much blew it. Sales . Lemonis there we go. Well, how much money did you burn through . Perfect. Lets go. So, heres your audience. Jules okay. Parker 650,000. Well, this is our shoal tent. Lemonis now taylor offer and parker burr uh, evolution of the shoal tent was really, um, well, theyve come to me for help. Parker a big thing on our mind right now is q4 of this year. Sort of very quick. We had to take such a bet to make that happen, so, what we have here is, uh, the initial, uh, model, all the purchasing, all the manufacturing. And it scares us. Lemonis and i think i have a very unique way but wed like to improve it. To tap in to their talents um, i would ask you to step inside, cause i think thats one of the biggest selling points, is really seeing that hardstitch floor. We can take sides off. If youre the owner, youre going to learn very quickly that one panel at a time probably makes it a little bit easier. Bruce does it come with a pump . Jules it comes with a foot pump. Bruce a foot pump. Okay. Baker for 1,500, it needs to come with a real pump. Ethan i mean, its a piece of electronics that youre putting in a water boat that like, you know, its a point of failure that, like, we might be introducing. Chris does it come with any type of anchors . Ethan it does not currently come with anchors. You know, anchors are pretty specific to what water type youre on. Baker the other thing i was thinking was, its a party raft. So when i think party raft, i think of, how do you put a cooler in it, how do you put cup holders in it . It has speakers . Yes or no . Ethan no. We got 100 million views of it, right . Its a unique product. Chris its a tough sell. Bruce yeah. Ethan i think there were a lot of people that were saying the same thing about a car, when henry ford came out with the car. They were happy with the, you know, horsedrawn carriages, but i think that, you know, longterm, worked out in a different way. Lemonis im a little surprised how ethans handling the feedback from people who potentially could sell his product. Instead of him being openminded and just taking it and processing it, he gets a little snarky and sarcastic, which is a little embarrassing for me, to be honest. Lemonis i think you guys have done a [bleep] job explaining to them why they need to own it. Tomorrow morning, were going to work on some products, i want to work on some ideas, so i hope you have a sketch pad of some kind. Ethan i dont generally lemonis you dont . Jules we do. We have a sketch pad. Well get it. All right. Lemonis i didnt feel like ethan really accepted the criticism very well yesterday when we were at gander. So, in order to make sure that he truly understands where i want him to go, were going to meet again today so that theres no confusion on what my expectations are. What did you guys hear . cause i know what i heard, and so, for me, i want to understand how well you processed the feedback. Ethan i think we got, you know, compliments on the size of it and the height of it. Its got a lot of room in it. So, i heard that a lot. I didnt hear a lot of the negatives, though, and i dont know what changes they really suggested. Like, i dont know. Um, as far as i do . Lemonis no, dont help him. Because this is why i think its best that you and i found each other. Because you hear the positives, as you should, cause you should get recognition for the solid work that you did. But you dont tend to hear the negatives. Ethan right. Lemonis . Either because you dont want to or because ethan i get defensive. Lemonis or you dont agree. And typically when people get feedback and they dont agree with it. Ethan yeah. Lemonis so, we both heard things. What did you heard nothing . Ethan i mean, i i, yeah, i guess i just dont remember any of the negatives, so just like, like you said, just kind of. Its 55,000squarefeet. There were some epa issues. Somebody poured some chemicals out back here. So, they just need to dig out some dirt. Its just, the bill was going to be, you know, 2 million. So, weve actually come to a well, yeah. Honey, did you hear about these new geico savings . Mom . Youll get an extra 15 on top of what geico could already save you. Can i call you back . Your fathers been researching our geneology. Were vikings theres never been a better time to save with geico. Switch by october seventh for an extra 15 on car and motorcycle insurance. Hey, we lost the wifi password. Do you remember what that is . Ok, so, magnificent mile for me i thought i was managing. My moderate to severe Crohns Disease. Yes until i realized something was missing. Me. You ok, sis . My symptoms kept me from being there for my sisters. Flight boarding for flight 2007 to chicago. So i talked to my doctor and learned. Humira is for people who still have symptoms of Crohns Disease after trying other medications. And the majority of people on humira saw significant symptom relief. And many achieved remission in as little as 4 weeks. Humira can lower your ability to fight infections. Serious and sometimes fatal infections, including tuberculosis, and cancers, including lymphoma, have happened, as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. 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 doctor about humira. With humira, remission is possible. If you cant afford your medicine, abbvie may be able to help. If you cant afford your medicine, all strength 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 crankypated a bad mood related to a sluggish gut. Miralax is different. It works naturally with the water in your body to unblock your gut. Free your gut, and your mood will follow. What did you heard nothing . Ethan yeah, i guess i just dont remember any of the negatives. Lemonis its a bit bizarre to me that ethan literally has zero recollection about the feedback that he just received yesterday. And its either because hes basically tuning everybody out because he doesnt want to hear it, or hes not processing it because he doesnt agree with it. But in either case, not acceptable. Can i just borrow this for a minute . Jules sure. Lemonis this has an interesting look to it. Ethan uhhuh. Lemonis these are a lot of feedback notes. This is listening. Ethan mmhmm. Lemonis this is the difference. And so, ethan, i wanted to give you a little feedback last night of what i got from the team. Two comments. One, everybody wanted a camo pattern. It has to exist. The other comment was, what accessories exist, and what accessories can be developed for different categories. And they said that they probably could double or triple the sales if the name was different. Ethan oh, ive actually gotten quite a few compliments from the industry just because smith has the whole, making things with your hands, sort of metal working background. Like, thats, you know thats my family. Lemonis according to them, you could potentially lose somebody jules the fly part. Ethan right. Lemonis what they want to do, is they want to order all of this for spring. They just want it to be smith. I would be thinking about name alternatives. Ideally, you would land on one thing that can be merged everywhere so you dont have to have multiple skews. Ethan yeah. Lemonis if ethans company ever has a chance of being successful, he has to understand that hes going to have to accommodate the feedback that hes getting or theyre not going to buy the product. And if they do buy it, theyre not going to be excited about selling it. But dont think negative. Ethan yeah, yeah. Lemonis constructive criticism is constructive, meaning that it makes things. Better. Ill see you guys in a couple weeks, okay . Jules yep. Lemonis ill see you in a couple weeks. Jules thank you so much. Lemonis thanks, guys. Ethan wanted to show me the building that hes contemplating purchasing, and so were going to head over, and ill take a look with him. Is this the building . Ethan this is the building, yep. Lemonis wow. The buildings huge. Ethan its 55,000squarefeet. There were some epa issues. 40 or 50 years ago, we dont really know when, somebody poured some chemicals out back here. So they just need to dig out some dirt and then put fresh dirt in it. Its just, the bill was going to be, you know, 2 million. So, weve actually come to a well, yeah. But if we do the work ourselves, it can cost a lot less. So, we can probably get it down by a factor of 10, to maybe 200,000 or 300,000. Lemonis i dont like the fact that ethans like, oh, its only 200,000 or 300,000, as if there was just money flowing everywhere. And thats just for the outside of the building, which makes me wonder what the inside of the buildings going to look like. Holy moses. Ethan he rented this out to a guy who stores like, stuff to flip on craigslist and whatnot. Lemonis are you seeing what im seeing . Jules oh, yeah. Theres some good stuff in here, too. Ethan yeah. This is just the tip of the iceberg. So, you have to kind of look beyond all this stuff. This is all junk, basically. Like, all of this is what wed clean out and occupy. And then all these windows replaced, everything cleaned up. Like, this is kind of the admin space up here. And the sewing section would kind of either be out here on the. I knew youd be overwhelmed, but we havent seen upstairs yet. Lemonis okay. Um. Ethan so, this, you put a railing around it, and its the patio lunchroom. Like, theres third floor is right here lemonis is he serious, or is he just messing with me . Jules oh, no, hes serious. Ethan im not messing with ya. Come up here. So, when were a 100 million business, the final buildout has that third floor on it, right. Now, i mean, how much does it cost to build this out . Another million dollars. But then weve got a 13 Million Building instead of a a 5 million of a 3 million. Lemonis why would i want to put 1 million or 2 million in a dilapidated building when i could put 1 million or 2 million in Product Innovation and inventory and actually sell it and make margin . This is a really simple lesson for most Business Owners called Capital Allocation. And Capital Allocation is a term that a business would use to determine where it is that they want to spend their money. If they have a finite amount of capital, they have to really prioritize where they think that capital is going to get the company the best return on investment. In the case of smithfly, its Product Innovation and inventory that the markets going to sell, not warehousing and stockpiling stuff. Hes almost trying to be too big, too fast. Baby steps here. I love the fact that its here, though. Thats awesome. Ethan yeah, its right there. Lemonis it probably would only take six years to get all this stuff out of here. Ethan [ laughs ] lemonis now that ive slammed on the brakes of building this massive corporate campus, ethan is buckling down and working on ways to upgrade the shoal tent. Jules so, the Little Shoals is a twoman, uh, raft, but the big shoals holds three, as well as the great big shoals. Lemonis meanwhile, jules is working on sales, focusing on the Core Products that they already carry. Jules thanks for calling, and we look forward to working with you. Lemonis . So that ethan can focus on upgrading and developing new products, things that could bolt on to tents and improvements to the current apparel products. Im looking forward to seeing how everything turns out. Ethan told me that he finished the branding changes and the Product Modifications based on the feedback he got from gander. I would be lying if i wasnt telling you that i was nervous to see if he actually did it. This looks different. What did you do differently here . Ethan so, this is, like, the new frame, so itll break down and go in the bottom of an rv. So, this is kind of the prototype of it, so its not donedone. But basically, its an erector set and everything comes apart. Lemonis this seat looks different. Ethan yes, the upgraded seat weve been doing. Lemonis ooh, the seats a lot sturdier. Honestly, the fact that you got it done that quick is a testament to how you move. Ethan so, the tent was one of the hot topics that we talked a lot about, right . Lemonis yeah. Ethan so, basically, you know, we talked a lot about color, so i think we can do some cool color toppers, right . We can make something work there. Weve got the interior light kit kind of concept. Lemonis all led . Ethan mmhmm. Yep. This is our inflatable drink and cooler caddy that we talked about. Lemonis this is exactly why i took a chance on ethan. You can tell that his Technical Knowledge really, really got implemented here, and he also used the feedback. I feel like were making Real Progress with him. Ethan so, on the way back from kenosha, jules and i racked up a list of potential addons to the word smith. We kind of did some explorations around color and logos. I really like the camp thing. I think that turned out really well. We just came up with what symbolizes each thing. Lemonis love the fact that you put a lot of thought into it. And i think its important that the customer understand every product they buy from this company has a lot of technical thought behind it. Its where technical thought meets adventure. Ethan i love it. Lemonis so, i would start to say lets build the 500 rafts, and i would say, give em to me as fast as you can. Ethan but then we need the building across the street. Lemonis enough with the building. I thought we had already dealt with this. I am concerned about the building. I told you how i felt about it. Ethan i mean, from an equity standpoint, if you can have a piece of property that could potentially be worth 5 million, people, banks, especially, they like to have collateral. Lemonis why do you need a bank to have ethan well, we dont now cause youre here. Thats well i mean, what im saying is, i see it as this potential that we could grow into. We could spend 20 years there and still have a great business. 100 million business could be operating out of there. Lemonis but how do you know that . You dont have any numbers to support it. Jules we have been predominantly fly fishing, so the name is smithfly. Do you think that would be a problem . Kurt i dont think you should wrap yourself into one market segment. Ethan i see it as this potential Gillette Proglide and proglide gel. Five blades and a pivoting flexball designed to get virtually every hair on the first stroke, while washing away dirt and oil. So youre ready for the day with a clean shave and a clean face. 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