CNBC’s “The Profit” Episode 315 Review

This week, “The Profit” went the way it usually does… Some dude started crying and then Marcus needed to psychoanalyze him.

This week, “The Profit” went the way it usually does… Some dude started crying and then Marcus needed to psychoanalyze him.

Granted, as a video editor (who has nothing to do with this show), I’m fully aware that people can be made to look crazy by how you arrange the footage. 😀 .. At one point in this episode, someone was speaking to Marcus, but when the camera cuts to where Marcus is supposed to be listening, his mouth is moving and we can’t hear him saying anything at all, so that was clearly some footage they just threw in there for effect.

Having said that, you could tell there was something wrong with the dude from how his business was being improperly run and what his actions were and were not when Marcus told him how to do things the right way.

Start From The Start

First things first.. If you call Marcus Lemonis and beg him to save your failing company, it’s because you know LESS than he does, not MORE. 😀

It never ceases to amaze me how people continuously argue with Marcus about how their business is run.

If you knew how to run your business, he wouldn’t have arrived with a camera crew for a “reality” show.

If you knew how to run your business, you would be having some sort of “Everyone here at this table knows what they’re doing” actual business meeting with him.

It’s like if a teacher gave me a C in a test in elementary school and then I walked up to the front of the class and started explaining why I actually deserved a B. 😀 hahahaha If I would have KNOWN how to get a B, I would have answered that amount of questions CORRECTLY in the first place.

Being that I received a C, I need to STFU and listen to what the teacher has to say so I can learn something and next time I can score higher.

What was quickly established was that dude is a control freak. What they didn’t get into until way later in the episode was WHY he’s that way.

Basically, this dude wanted to:

a) make up fantastic stories about his candles he was making…. Ummmm…. They’re candles… They stay lit for a while and then you have to buy another one. \o/

b) draw the designs to go on the packaging based on the fantastic stories that nobody cares about…

c) decide how much fragrance was going to go into each candle, even though his wife and the other chick working there wanted more of it in there than he did…

d) fill the candles himself because I don’t know what he hired those two other people in his shop for other than filling the candles…

e) take out $16,000 USD in probably-high-interest-rate loans (credit cards) behind his wife’s back, though, to his credit, he wasn’t charging the company for his entire life like that lobster-restaurant idiot from episode 313…

f) hold a grudge against someone that is better, stronger, and faster at making and packaging candles than he is, over something that was probably HIS FAULT to begin with, as the manufacturer cited paperwork but they decided to leave proof of which side was correct out of the final edit…

g) directly disobey an order NOT TO TALK ABOUT THE GRUDGE when they went to speak to said manufacturer…

So generally, this dude was off his rocker from the giddyap.

You Are *NOT* The Father

They did a good job of making him look like he was just some stubborn dude until Marcus had enough of the situation and pressed him for information.

Obviously, (again), they edited out a lot of what the dude actually said, most likely because it was too personal to put on front street and they didn’t require ALL of the information to make their point about the source of this dude’s mental problems.

They let it slide by having him say that every time he used to do something as a kid, some family member that wasn’t his father or mother used to tell him he was doing everything wrong, then they skipped in the edit to where he mentioned that this family member said something about his looks, then they cut to Marcus saying something like “They verbally abused you?”

Both that dude and his wife know what really happened because they both started vehemently vetoing Marcus’ request for information. It doesn’t actually matter what happened, so I applaud their editing around it to protect his privacy.

What *DOES* matter is that whatever his family member did to him in his childhood, he was carrying that sense of “I’m going to do what *I* want to do, no matter what anybody else says” into his business dealings, which was running his company into the ground.

It was like he was trying to prove to himself that he’s self-determining.

All Day, Every Day.

He lied and said he didn’t mention his $16,000 USD credit card debt to his wife so he wouldn’t hurt her.

Like Maury says… *THAT* was a lie! 😀 hahaha

When Marcus asked them how much they were making from the business, the answer was “We’re losing money in this business”. When the question was how they can afford to live, the answer was that the wife has another job.

She may as well have had another job! 😀 Dude wanted to do everything himself anyway. I don’t know what was left for her and the two employees to do! 😀 haha

This guy didn’t mention his debt because as soon as he would have said he was 16k in the hole, his wife would have told him “You’re doing this wrong”, which would have triggered his PTSD about what his family member did to him.

So this dude was a shambles to begin with and he still didn’t get over it after agreeing that Marcus had 100% control over the company.

In fact, I was surprised that he didn’t argue when Marcus said he wanted 30% of the business, although he was dropping $200,000, wiping out this dude’s debt to his father, and bringing his business relationships and influence to the table.

I can’t imagine that he was perfectly clear about how poorly his business was doing, yet fought ’till the bitter end to keep doing things his way instead of getting with Marcus’ program.

The Fix Is In

The fix for this business was an easy one.

The formula is People. Product. Process.

As I just finished telling you, the People part was jacked up because dude was still reacting to his PTSD.

The Process part was jacked up because dude refused to play his position and hire people who are better than he is at necessary parts of his business.

They told dude they can output 6,000 a day when he can output 400 a day… He still didn’t call them.

They told dude that they can build his candles for less money than he can… He still didn’t call them.

They told dude that they can package his candles for less money than he can… He still didn’t call them.

Marcus gave him a direct order to call them… He STILL didn’t call them.

The worst part of that entire scenario was that he told Marcus he was going to call them and then he didn’t, and then when Marcus asked him what he was supposed to have done, dude rattled off the information about what he had been told and then admitted that he didn’t do it.

He deserved way more of a shellacking than Marcus gave him for that. Maybe he did get it and they edited it out.

The Product part was jacked up because dude refused to listen to his friend who owned the successful candle store when he said NOBODY CARES about the extra stories and whatnot that this dude was wasting his time on.

“If Woody had gone straight to the police, this would never have happened.”

If this dude would have listened to professionals off the bat, he would never have had to call Marcus or Tyrone or whomever for help.

If this dude would have listened to his wife and his employee and added more fragrance to their product, maybe Marcus wouldn’t have asked “Can I get more in here?”

If this dude would have gotten over the problem he had with the manufacturer, which I totally don’t understand, because the way they edited it, not only did the manufacturer say that he had paperwork stating that dude didn’t request a blend, but he SAID that he told this dude that if he wasn’t satisfied with his order to bring it all back, and they decided not to continue that storyline.

My guess in that situation is that the manufacturer HAD the paperwork, AND that there’s some kind of written Customer Satisfaction policy that he could have pointed to and then it would have been clear that this dude was just plain buggin’ out and causing more problems for his own business than he was solving.

That wouldn’t have worked for the flow of the show because if Marcus had found out at that point that this dude can’t be trusted, there wouldn’t have been a setup for later in the show when he returns, presses dude for information and then we see the PTSD reveal scene.

Either way, it would have been very easy to prove right then and there who was wrong in that situation.

Also, that manufacturer had no reason to lie because that dude made up approximately 0.0000000% of his business.

Changes

The necessary changes were obvious (since I’ve seen every episode of this show, haha).

This dude was getting in his own way.

In fact, the only thing he was actually good at, when Marcus arrived, he had to fix it for the dude.

He basically said “Everything you made here, as far as looks and smell, is for WOMEN, and there’s nothing here for MEN.”, and then you saw the dude give a funny look, which as I said before, may have been his actual reaction to what Marcus said, or it may have been something they snatched from some other part of the conversation to make dude look like he disagreed with or didn’t like what Marcus was saying.

Marcus had to sit dude down in Photoshop or whatever that was and school him on how to set up the packaging colors.

That’s one of the funny things about the show. These people never seem to be aware how many businesses Marcus owns at least a part of. They really think that because they make a few candles that they know more than he does about making candles.

Is it possible that Marcus had his own focus group discuss your product before he walked in the door? o_O

Is it possible that Marcus already owns businesses that make candles? o_O

Is it possible that Marcus likes to purchase candles himself? o_O

Is it possible that Marcus knows anyone in the world who could explain the candle biz to him? o_O

One of the things I got from this episode is that I’m going to have to tighten up on my interactions with people in 2016.

I’ve let a few people slide with incompetence and I’m completely over it.

Marcus said what’s going to probably be my favorite word in 2016.

“Stop.”

hahaha That’s what I need to do. Just plain interrupt people when they’re going down the wrong path, assuming *I* know what the right path is already.

Time is wasted when you let people ramble on about things that aren’t actually going to turn into good business.

It was good that Marcus gave dude that ultimatum, which was basically “Unless you tell me why your screwed-up thought process is about to **** up my money, I’m outta here!” 😀

So get dude to play his own position, which is making up fantasies and drawing pictures.

I’m not sure what the wife’s role was in the business other than being a 50% owner (diluted to 35% after Marcus got his 30%) trying to get her husband to do the right thing.

I’m not sure what happened to the two employees they had making candles at their location, since their only function seemed to be pouring candles, boxing and shipping them, and that was going to be handled now by their new ally.

I’m not sure what happened to their location because if they didn’t need those two employees anymore and they didn’t need to warehouse candle wax and glass and boxes, all they needed to do their business was their laptop and they could have done this business from home, saving themselves from bleeding rent money because of the business location.

So let’s assume the business location closed. That’s a monetary win right off the bat.

The new manufacturer is outputting more candles at less cost per candle, which is a double-win because you get to put more product on the shelves while enjoying the bulk discounts that come with the relationships a business that size has with their suppliers.

The new packagers are creating gift baskets and whatnot so you have more items to sell to people without having to create more fragrances and without having to figure out how to create and fill gift baskets yourself.

That’s one of the benefits of having Marcus buy in and join your team. You get to interact with people who have already done it all, seen it all, and know the best things for your company to do. He isn’t starting from scratch when he gets construction done or completely revamps someone’s clothing or food store. 🙂 He has his people that specialize in all those areas, and that’s part of where your budget goes when he says he’s going to invest $200,000. Some of that is getting paid to his professionals to put in work.

Speaking of money, dude’s father got his $20,000 back out of that 200k, so I’m sure that took a load off of dude’s mind as he was concerned about looking like a failure, which he was about to be if Marcus hadn’t saved him.

The $16,000 was going to get paid off because now, dude and his wife owned 70% of a well-run, expanding business instead of 100% of a failing business.

Not having to fill candles means the wife had more time to do her 2nd job at the television station.

If the business location actually did close, they got to save the yearly salary of their two employees.

They got a new company name which included their name, which is something Marcus likes to do, personalize products.

In fact, they probably had so much free time after Marcus bought in that they could start working on that what-if kid the wife mentioned. 😀

Scalability

Ultimately, if you want to do your own business, you should consider what might happen if you’re successful with it.

Scalability is the capability of a system, network, or process to handle a growing amount of work, or its potential to be enlarged in order to accommodate that growth.

In this case, the company’s ability to scale was being blocked by one of the co-owners trying to wear everyone else’s hats along with his own.

If everything you output depends on you, what happens when YOU aren’t a part of the equation?

What happens on the day you get sick?

What happens when you want to take a vacation?

What happens when you want to quit or retire?

What happens when you want someone to take over for you but there’s nobody you can trust?

What if there *is* someone you can trust, but there’s only one of them, so you’re still not scaling your business, just keeping it afloat until they make the same decision you did?

Like the wife said.. What if they have a kid?.. Especially if her job is being on-air talent. She mentioned taking 3 months off from work (before Marcus offered them the deal), which probably meant that she wasn’t going to be invited to do her job while she actually appeared to be pregnant.

What happens when the dude wants to learn how to mix records but he’s stuck playing candlemaker all day? 😀

By delegating responsibility, they traded money for better service.

Let the husband do the drawings and make up the fantasies.

Let the wife bring in the extra money and handle the finances.

Pay the manufacturers to manufacture and get the bulk discounts and have factories in several parts of the country so you can save on shipping and have your products sent from the closest location.

Pay the packagers to come up with new ways to make you money from the same products.

Pay the distributors to leverage their business relationships and get your products on the right shelves in front of the right customers at the right prices.

Pay Marcus for his expertise, network, bankroll, consulting, and partnership in your business.

Pay an actual psychoanalyst so you can stop dwelling in the past, move forward, and live a happier life.

~ Bill ~

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