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tv   The Profit  CNBC  May 20, 2017 4:00am-5:01am EDT

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lemonis: precise graphix creates" custom designs for stores and shops... this is something that you designed? dean: yes. lemonis: by two brothers who produce solid work, but not a solid profit... keith: what are we gonna do? we're gonna get rid of somebody? dean: if you went by these, we'd get rid of everybody. lemonis: ...and paralyzed by a lack of vision... keith: i've always been concerned about getting a customer and then losing them. lemonis: but you got to get one to find out if you're gonna lose them. they have debt on their books. jess: you don't know if you're gonna have a job in another couple weeks. maria: i don't want to go look for a job. i love my job. lemonis: ...and equipment that's out of date. people still do business on floppy disks? [ laughs ] without major changes, precise graphix will be just another factory who can't keep up with the times.
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50 miles north of philadelphia just outside quaker country, brothers keith and dean lyden have established their very own graphics and millwork company, precise graphix. from interior design to fabrication to installation, precise has been providing signage and decor to retailers for over 12 years. as an owner of several businesses, i know how important it is to create a great retail environment, and that's one of the reasons i'm excited to go to precise graphix. tina: hi. how are you? i'm tina. lemonis: hey, tina. how are you? i'm marcus. tina: nice to meet you, marcus. lemonis: nice to meet you. is this the main office? tina: this is the main office, yes. lemonis: okay. tina, what do you do here? tina: i do payroll and human resources, most accounting functions. lemonis: you love it here? tina: yeah. i'm keith's wife, so... lemonis: okay. i didn't know that. i didn't even know that. tina: yeah, so i have a little different perspective on it. lemonis: i'd love to meet keith.
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tina: yes. come on. i'm assuming he's right next door. you have visitors. lemonis: how are you doing? i'm marcus. keith: marcus. keith lyden. lemonis: nice to meet you, keith. how you doing? dean: i'm good. dean lyden. -nice to meet you. -lemonis: dean, how are you? keith: my brother. lemonis: oh, this is your brother? okay. when did you start the business? keith: 2004. lemonis: and who put in all the money? keith: all the finance came from me. think we're up to about $160,000. lemonis: $160,000? dean: originally, i had some screening equipment and some sign software, but not much. he primarily got us going financially. lemonis: and what is the equity split? 70/30? -keith: 50/50. -lemonis: 50/50. dean: i had a graphics background and i had been doing this. i didn't have the financing to do it, so it was a perfect match. lemonis: so, you have a good brother, right? dean: if you can't trust your family, -who can you trust, right? -lemonis: well... while i appreciate keith recognizing his brother's experience, i'm not quite sure that 50/50 is exactly the right formula. if i asked most of the employees here who is in charge, what would they say? matt? -your name is matt, right? -matt: yes, sir. lemonis: who's in charge between the two of them?
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if the building is burning down, who do you go ask? matt: i call 911. [ laughter ] lemonis: when you have a situation where there's 50/50 partners, you also have 50/50 leaders with no one clearly in charge. what is the total revenue of the business? keith: last year, our revenues were down a little bit. -we did three and a half. -lemonis: $3.5 million? keith: yeah, just over $3.5 million. the two years prior to that, we were $4.3 million and $4.4 million, respectively. lemonis: so, business is down. keith: one of my bigger customers, they slowed down for a couple months. -lemonis: what's the name? -keith: weis markets. lemonis: weis markets? okay. of the $3.5 million, how much do they do a year with you? keith: last year, they were just over $2 million. lemonis: so, more than 50% of your business is one retailer? keith: yeah, last year. lemonis: and if they decide to change vendors, you're toast. keith: yeah, we'd be in a little bit of trouble. lemonis: it's risky for me to invest in a business where 65% of the revenue comes from one client. if weis decides to go with somebody else, i mean, precise could be out of business.
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can i get a tour of the warehouse? keith: absolutely. lemonis: this is typically what i'd see, a wall graphic. -dean: correct. -lemonis: if you've ever been in any grocery store and seen all the signage, from bakery to produce to checkout, any kind of sign in any kind of retail business, that's the kind of signage that precise does. this is something that you designed by yourself? -dean: yes. -lemonis: the concept. precise works out of a 30,000-square-foot facility. cool letters, huh? there's an area for design, but most of the floor is dedicated to fabrication. dean: this primarily is where we do all the decor, the graphics stuff. lemonis: there's a machine that shapes wood, and it also forms foam into letters... man: here's where i assess what's called a tool path. tells the machine where to go, pretty much. lemonis: very cool. ...and a machine that prints large-format images, anything you need to make a sign. this looks like a trade show display. do you guys go to trade shows? dean: we do not. lemonis: but how do you find new customers
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-if you don't go to trade shows? -keith: we've always had a different sort of opinion with that. dean: you just brought up a -- yeah, where we disagree. lemonis: what's the worst thing that could happen? keith: i've always been concerned about getting a customer and then losing them. lemonis: but you got to get one to find out if you're gonna lose them. keith: you're right. you're right. lemonis: i mean, you got to start somewhere, because the fact that you have this much capacity right now, it's almost like you're driving with your foot on the gas and the brake at the same time. what are you worried about? keith: when we get busy, we miss a lot of the finer details and we make a lot of mistakes. lemonis: like what would be a good example? on the letters, on the vinyls, on the signs, on the banners? keith: i had a sign up that we made, installed, was hanging in the store that was misspelled. lemonis: there was definitely a red flag that keith was conservative about wanting to grow the business. he's already uptight or tense about some of the work that they're putting out, the number of mistakes that they're making. maybe that's his very quiet way of kind of protesting the quality. guys, i'm gonna spend some time
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with some of the other employees. keith: okay. lemonis: this is a beautiful old factory that was probably built about 100 years ago. unfortunately, a lot of the equipment looks dated, as well. some of it broken and not working, and some not working up to full capacity. the groove in there is a little off. why don't they fix that? whose call is that? the sign and graphics industry requires state-of-the-art technology and equipment, but unfortunately for precise, they're operating with old and outdated equipment that's not only causing inefficiencies, it's creating a ton of mistakes. if this was your company, what would be the number-one thing you'd change? kevin: i would like to get better equipment, some reliable equipment. lemonis: two things are going through my head when i look at the old equipment. number one, do they have the money to actually upgrade their equipment? and after spending just a little time with keith,
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is he just too cheap or too conservative to do it? so, who do you report to? man: dean and keith. lemonis: well, which one, though? man: um... -lemonis: who's in charge? -man: i don't know. -lemonis: hard to say? -man: i don't know. lemonis: i think my biggest issue with their business is who's on first? who do you report to? paul: i report to dean and keith. lemonis: who's in charge? paul: honestly, i would say neither and both. lemonis: okay. any time you have employees saying they don't know who's in charge, that's a problem. typically, people want to be led, and the fact that the employees don't know who to listen to or who's in charge leaves them like a rudderless ship. do you feel like there's enough business here today? do you feel like you could do more? paul: that is pushing it. right now with the machinery that we have, millwork-wise, we're antiquated because right now, we're running on sending programs and stuff out on that. lemonis: i'm sorry.
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people still do business on floppy disks? [ laughs ] i understand that this place was built in the 1920s, and i think the machinery was here from the beginning, but floppy disks? really? how long have you worked here? maria: it'll be six years in april. lemonis: where's the system broken, in your mind? maria: everywhere. we don't have systems in place. we don't have the processes. i mean, i say we don't have enough of them. matt: everybody works hard. i think everybody's passionate about what they do. the main thing is is we have one big egg in our basket. -lemonis: weis markets? -matt: yeah. if you took that away from precise graphix, 70% of this won't need to be here. lemonis: be out of business. matt: yeah. lemonis: how many days are you on the road? matt: usually almost every day. lemonis: you have kids? matt: actually, since i've started working here, i've had two children and i still only took one day off of work. [ laughs ] lemonis: that's not good. matt: it's reality.
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lemonis: must be hard on your family. matt: yeah. lemonis: even with no technology, the lack of leadership, these people are waking up every morning and giving 150% to keith and dean, and they're the heartbeat of this business. they bleed for this place. but with this much confusion on the floor, maybe that's why they have problems with their profit margins. you have $650,000 of assets from bank accounts, inventory receivables, prepaid expenses. when i look at the total liabilities, you have $835,000 from accounts payable, credit cards, taxes payable, long-term debt, short-term debt, and note to officers. which means you're $180,000, essentially, underwater on paper. precise has some real assets. they have some cash and some inventory. but they also have some real liabilities. they're about $180,000 upside down. while they're not a company that's ready to go bankrupt, they are on some very thin ice.
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your balance sheet is upside down. your process is a disaster. the warehouse is a mess. the accountability is missing in this business. everybody that i asked here, "who's in charge," there's always a pause. not having a clear leader is a big problem in any business. a lack of leadership provides a lack of clarity. a lack of clarity provides a lack of efficiency. and as efficiency drops, so do the margins and so does the morale of the workplace. all of that equals bad margins and less business. you guys don't have the same management style, do you? keith: i think dean can do a better job of managing the production, absolutely. dean: i mean, i got to say i disagree with that. i'll be the first to admit we work different. we don't agree with the way each other works. keith: we don't discuss issues out there as much as we should. he's 100% right. lemonis: 'cause you don't want to jeopardize the personal relationship, the family relationship. -i get that. -dean: correct. lemonis: maybe you guys shouldn't work together. one of the things that you can definitely tell
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with keith and dean is that they really don't like conflict, and so they're not really addressing the issues that are kind of underlying. the fact that they're brothers and the fact that they're not addressing any of the issues, it probably is part of the reason why no one knows what's going on there. the only way i'm willing to move forward is if you understand that things are gonna have to change dramatically. guys. keith: what's up? lemonis: i think you guys would be great guys to be in business with. he's a facts and figures guy. you're a creative guy. it's a fantastic combination of people. i think the people that work here are committed. whether that's maria or your wife, tina, or people in the back or kevin or paul, i think there's a real commitment to working here. what do you think the business is worth? keith: you know, maybe, i don't know, $2.5 million.
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$2 million, $2.5 million. lemonis: basically, the tangible net worth, the enterprise value of the business is $270,000. keith: hm. lemonis: the formula that i've used is i've taken all of the assets of $650,000, all of the liabilities of $835,000, which includes the money that you and tina put in, and then i come up with the difference there, which is -$185,000. and then on the other side, i look at the earnings of $143,000, i put a three-time multiple on it. it's around $450,000, a little less, but we'll call it $450,000 for this discussion. and then i subtract the extra liabilities because there's not any assets to cover it. and so, basically, the tangible net worth is $270,000. you don't agree with that number? keith: i had it a little bit higher,
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but i don't have anything to back it up, i got to be honest with you. lemonis: but i have to make decisions based on it. -keith: i understand that. -lemonis: so, what do i do? keith: we could just use the figure you're talking about 'cause i don't have anything to back it up, so... lemonis: if somebody walked in here today and offered you $250,000 or $270,000, and they paid you your $160,000 back and they satisfied all the liabilities, and you guys wanted to go be surfers, would you sell the business? give you your $160,000 back plus $270,000. and they said you could still work here if you wanted, make $100,000 apiece. would you do it?
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change your wifi password to something you can actually remember, instantly. add that premium channel, and watch the show everyone's talking about, tonight. and the bill you need to pay? do it in seconds. because we should fit into your life, not the other way around. go to lemonis: would you sell the business? give you your $160,000 back plus $270,000. would you do it? keith: i don't know if i'd do that. dean: i think the potential just is too great. keith: yeah. lemonis: that was honestly the only reason -- your answer is the only reason that i will stay here, because i don't want to be in business with people that don't want to be here. so, i'm willing to offer $270,000 for a third of the company.
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here's the caveat. i am not willing to do anything other than be 100% in charge of all of the decision-making. and i don't mean just financial. i'm not convinced that you're decisive enough to move the business forward and make the changes and put the process in place, and you're not willing to hold people accountable. and i have no problem doing it. and so, you have risk. you could get fired. one thing i'd like to do before i give you this check is i'd like to get tina's input. -so, do you want to grab her? -keith: i sure will. lemonis: while i could've asked for a much bigger percentage, i felt like the only way this deal was gonna work is if i put in a reasonable amount of money to solve problems but i left them with enough equity to feel like they were still driving the bus and would keep them interested. my offer is $270,000 for 1/3 of the business.
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but i'm gonna be totally in charge. it's not for a day, it's not for a week. it's forever. tina: we need the help. we need the help. lemonis: we have a deal? dean: we have a deal. -lemonis: we have a deal? -keith: we have a deal. -lemonis: we have a deal? -tina: we have a deal. lemonis: i'm gonna give the money to you. keith: absolutely. absolutely. lemonis: so... tina: this is good. lemonis: ...i have one last twist. tina: [ laughs ] lemonis: in order for you to be able to deposit that check, you have to prove to me that you can do a job. and if it's good, we're partners for life. and if it's bad, no business, no deal. keith: okay. tina: mm-hmm. lemonis: well, good morning.
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all: good morning. lemonis: last night i made a deal to put $270,000 in this business for 33%. i feel like this business is representative of this country, and when you stand in this factory, you see hardworking people just trying to make a living, to provide for their family. it feels like how this country was built. one thing that i am critical of is that i don't feel like there's been good leadership. so, even though i'll have only 33 1/3%, i call all the shots. the second thing is, going forward, there's gonna be clear department managers. the creative design department is gonna be managed by dean. and our leader of this business, while it's me in terms of having the authority, our day-to-day leader is keith. in order for this business to succeed, i need to give keith and dean very defined roles. dean is a guy with 25 years of design experience, so i'm gonna take advantage of that. i want him fully in charge of design.
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with keith, he seems like he has the potential to be a great leader, and i want somebody to oversee the entire operation. 65% to 70% of our business comes from weis. no company would ever let that much of their percentage of business be with one customer, because if something changes in their business, what happens to us? have you thought about that? jess: it has gotten less and less and less, and it is a concern, 'cause you don't know. you're gonna come in one day, there's no gonna be any work, we're scrounging, and you don't know if you're gonna have a job in another couple weeks. matt: if something would happen, i got, you know, two little ones at home, a mortgage. just nervous, to be honest. lemonis: right. maria, what's wrong? maria: my biggest thing is i don't want to go look for a job. i love my job. but i want to feel like i'm gonna have a job for a long time. and you don't think that right now. i'm always afraid it's gonna close.
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lemonis: my responsibility is to make sure that you have a job, make sure that you make money, and make sure that i keep this place as stable as i can. together, we're gonna grow this business. together, we're gonna make sure that we do it right, but there's one catch. i gave them a check for $270,000. and i told them they cannot deposit it until they can prove to me that you can do one job with precision. and they don't know what job it is. but i will tell you, if you can't to the job, i can't do business here. all right? let's go to work. thanks, guys. [ applause ] we need to get going on our field trip. she has the address. keith: oh, you have the address. okay. lemonis: see you there, okay? -let's get on the road. -keith: you got it. lemonis: the only way that i could do a deal with these guys is to be sure that their work is great. this isn't a drum company or a furniture manufacturer or a burger place, where i can actually see and feel the product in my hands.
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-keith: camping world. -tina: camping world. lemonis: and so the only thing i can do is offer up one of my own businesses as kind of the experiment. i mean, this could be a win-win for me, but it also could be a lose-lose. well? tina: this is crazy. [ laughs ] lemonis: is this better than grocery stores? dean: this is awesome. i couldn't be happier. i swear, i'm pumped. this is great. lemonis: at the end of the day, what i want to see is two things -- does dean really have the creative vision to meet my standards, and is keith really the leader that i'm looking for? this is greg's store. it's been his store for about six years now. the decisions for this location go through him. and by the way, it's either pass or fail. keith: gotcha. lemonis: and he's a difficult judge. dean: okay. lemonis: and so, once you get him happy and you get the people that work here happy, then he'll tell all his other friends that run the other 129 stores, -and you got some business. -keith: okay. lemonis: we try to keep it very simple and clean. keith: yes. lemonis: and one of the complaints is that we don't necessarily feel the lifestyle. really, at the end of the day, your task is to redo the store.
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the place has to come to life. keith: yeah. well, i'm gonna let you take that lead lemonis: no, no. you're taking the lead 'cause this is your project. keith: i personally never shopped in an rv store. dean: being a camper, you want lifestyle images, but i also see three-dimensional stuff coming off the wall. lemonis: what else? dean: i mean, i might look into wrapping those or something instead of having it look like cold steel. make them look like wood, trees, something like that. lemonis: and would you change all the casework? dean: yeah, i mean, we could probably do that with, you know, fake facades around the -- lemonis: just facade it? what do you think about this vestibule area? keith: maybe something here, some kind of display that has pamphlets from all the close -national parks or state parks. -lemonis: love it. dean: one big question i don't think we covered yet. what's our deadline? [ laughs ] lemonis: you got three weeks. you got to design it, fabricate, and install it. could you get it done? keith: um... dean: this is different than what we do a lot of, so -- lemonis: how is it different? keith: outside of our region.
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it's outside of what we've done. dean: will it be easy? no. no, it's gonna be a challenge. lemonis: so, do you need a month? 'cause, i mean, there's other vendors out there that can do it in less than a month. keith: [ sighs ] lemonis: does this seem like too much of a challenge too quick? keith: um... i got to admit, i am a little concerned about a three-week deadline. it's out of our norm right now. it's out of what we've done, okay? lemonis: that's the whole point. right? keith: if you tell me we've got three weeks, then we've got to get it done. -lemonis: is that a yes? -keith: yes. we can make anything happen. i'm gonna say that. lemonis: when i look over at keith, he looks like a deer in the headlights. he had never done an industry like this. you could see the sweat dripping off his forehead. tina: it's a lot of work, but we'll get it done. keith: we got to get everyone together first thing in the morning. -okay? -dean: okay.
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100,000 to do one job
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at one of my camping world stores. is that all junk? man: yeah, it's all going in the trash. lemonis: but to do the job effectively and efficiently, they need to get organized. keith: stuff that we don't need, we're gonna pitch it out. lemonis: there is a lot of crap in this place. they have old machines that can be tossed. man: the dinosaur. lemonis: they have good machines that need to get fixed. gentleman was telling me this doesn't work. keith: correct. lemonis: so, let's get the motor sent out. let's get it fixed, whatever it is. i want these guys to win, so i'm gonna level the playing field and get these guys some state-of-the-art equipment. dust collectors. we need that, right? a cnc machine. the dowel inserter, the shaper, the joiner, and the planer. there's a lot at stake for everyone here at precise, and what they need is a fresh start.
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dean: here is where you walk in. this is your front entrance. lemonis: okay. okay, so these boards are great. dean: so, what that is, that's the view standing if you're in the corner by the rv sales. lemonis: this is cool. dean: and if you look up or to the right, we're actually building an rv to hang off the wall. if that doesn't grab your attention, nothing does. lemonis: how do you feel like he's doing? -keith: phenomenal. -lemonis: yeah? keith: i think the whole team -- this building is so energized right now, it's great. we're ahead of schedule. -lemonis: oh, really? -dean: yeah. better to get done early than late. keith: i couldn't wait for tuesday. i really wanted you to see this, and i'm hoping that you like it as much as we do. lemonis: if it's done early, great, but the attention to detail has to be there. dean: i know that. i know it. -lemonis: keep that in mind. -dean: i know that. lemonis: [ claps ] let's go to work. i'm back in pennsylvania to check on the camping world job. how we doing, buddy? -dean: good. how are you doing? -lemonis: good.
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we're just three days away from installation, and i want to make sure their work is all correct. dean: it's drying right now. we just put the wheels on. watch it. that's still wet. pretty much hangs on the wall. lemonis: how do you feel like this quality came out? dean: oh, i think it looks good. lemonis: why is this not straight? that looks terrible. this is really not straight. dean: well, it'll get covered by this. lemonis: what is this for? dean: that's the bike rack. lemonis: uh-huh. dean: that one, we actually swapped out. lemonis: why? was there a mistake? dean: there's a mat for the front that it'll sit on, and when we got it in, it didn't line up -with the graphic on the front. -lemonis: why not? keith: we should've waited to apply the graphic to this until the actual mat came in, since we outsourced that. we jumped the gun and put the graphic on first. it didn't line up. lemonis: and so where's the communication breakdown when that happens? dean: design. that would be us. lemonis: so, that was you, as well? dean: pretty much. lemonis: they presented a great plan on paper, but if they can't execute and bring it to life, it's got no value. dean's job is to make sure that his vision gets built
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exactly as planned. and that requires a lot of talking, and clearly, that's not happening. is it odd to you that there's a break here in the middle as opposed to lining it up the right way? jess: it's just i think we did rush a little through design, and there was a few miscommunications lemonis: okay. i know that you guys are good people. no question about that. i know everybody works their ass off. the execution still seems like it's broken. keith: no, we can. we can execute. lemonis: yeah, okay. they need to execute this job flawlessly. we'll see if they can deliver. it's a big job and it's a lot of pressure. nice day. dean: beautiful out, isn't it? lemonis: i made a deal with keith and dean that i would invest $270,000 in precise graphix.
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they had a contingency. they had to do a job for me. the time has come to see if they did the job at camping world the right way and if i'm gonna let them cash the check. let's see what it looks like. dean: absolutely. how you doing? lemonis: when i walked into camping world, i'm not gonna lie to you. i was blown away by the fact that they were able to, in a matter of three weeks, change the entire look and feel of the store. it looks nice. why don't we break up and take a look around and kind of come up with our own assessments, okay? overall, the creative concepts are really on point -- the rv, the bike rack, there's a lot of good stuff. but i have to be honest, i'm a stickler for the details. what's the deal here? what looks weird to you about that? and there are some things that i'm not happy about. -what's the deal here? -keith: it's not complete yet.
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-lemonis: we out of materials? -keith: no, no. -lemonis: just not finished. -keith: not finished yet. lemonis: you're not leaving this like this. keith: no, no, no. this isn't done. dean: it'll be like the front. -lemonis: with the brick? -dean: yeah. lemonis: what do you think about these trees? it looks sloppy. -look at the seams. -dean: yes. lemonis: looks like a tornado came and blew all the branches off the tree. dean: these weren't made to specification. keith: they're coming down. -lemonis: they're coming down? -keith: yes. lemonis: how did they go up, then? dean: they got delivered 7:00 last night, and i did not see them. lemonis: if i'm you and i'm the head of design, i'm onsite, 'cause if something like that doesn't work, i'd rather just not put it up at all. let me tell you what i don't like about this. the seams are really bad. there's a seam there, there's a seam on the front. there's a seam there. look at that. -dean, do you see that? -dean: yeah. that's the worst place to put it. you're walking right in. couldn't be in a worse spot. lemonis: it just doesn't seem like you laid it out and you thought about all the letters and where they're gonna land. it looks sloppy. and so did you not see that before it left?
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dean: no. these were assembled onsite. lemonis: you're the designer. you shouldn't let things leave until they're right. dean: they were not done per the sketch that i approved. lemonis: hey, greg. can i grab you for a minute? greg: yes. lemonis: what's your kind of overall -- feel good? greg: you know, there was stuff that didn't get finished. some obvious stuff up front that a lot of eyes are gonna be on today that are a little upsetting to see not done. lemonis: who was communicating to greg that it wasn't gonna be totally finished? was it clear to you that they wouldn't be done? greg: i'll tell you, the communication on that side was unclear on where we stood. -it was minimal. -keith: okay. greg: do i know where you're going directionally? yeah, i get it. but could we have finished it better being onsite to make that adjustment? -lemonis: and that's you, dean. -greg: absolutely. lemonis: because you are the chief designer. it almost feels like you drew it and then you were kind of like, "okay, i'm out." you had plenty of time to get all the parts and the pieces ready, and i feel like you set up the fabrication department and the install department to fail. dean: i don't really see that.
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matt: this is my first job that i did not hit my deadline. dean: i was getting thrown under the bus. lemonis: do you guys feel like you deserve the check?
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, you had plenty of time to get all the parts and the pieces ready. i feel like you set up the fabrication department and the install department to fail.
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dean: okay. i don't really see that. lemonis: do you think the mistakes, kevin, happened design, fabrication, or installation? kevin: i would say probably the design. lemonis: paul, what do you think? paul: i would agree with that. matt: well, i don't want to, you know, say nothing about you, but this is my first job that i did not hit my deadline, and that, to me, i can't get that back. lemonis: installation isn't my issue here, but i didn't tell you to put up ugly trees. matt: i didn't design the ugly trees. lemonis: so, what's the issue then? matt: design. lemonis: i know the precise team worked their butts off, but the communication that came from dean to the team for the little details, the specific things that i'm looking at just wasn't there. i felt like, overall as a team, that you guys are headed in the right direction. i think we dropped the ball, though. i have to figure out was enough done for me to be comfortable to move forward?
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i saw a lot of positives, but my real question is around dean. is he the right guy for the job? i think what i need to do is push you even further outside of your comfort zone. i need to put you guys to the test with something different. we'll come up with something, but i need to think about it. okay? what happened in harrisburg was you didn't ask enough questions, you didn't do enough research, you didn't communicate with the team, but the ideas that you had, they were good. and so what i need to really figure out is if being in charge of design is really the right role for you. so, what i want to do is have kind of a fresh start with you on the design side and maybe pick a new project and watch your process. i own, as you know, another business that's called automatch, and it's basically a used-car business, and we're opening up stores all around the country.
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and so i want to give you a shot at designing a pack. we're basically saying, "we sell all cars for all budgets for all people all the time, and we have fun." dean: right. lemonis: i want to see your designs. i want to go over them with you. i want to say yes or no. i want to tweak you and challenge you. and then i want to see your process from design all the way to handing it to the people that are gonna manufacture it. this is frustrating, to be honest with you. this company is on the brink of being really successful, and dean, he's got a lot of skill and talent, but he struggles to communicate with his team, even with me. he internalizes everything. but in order for him to be a good manager, he has to be able to communicate his vision and his plan. so, go take some of those ideas and sketch them out, okay? and i'll come back to you in a little bit. dean: all right. lemonis: i don't know how to crack the code with him.
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do you think he's the right guy for the job? keith: dean's always been one who gets very defensive. lemonis: forget about the fact that it's your brother. he's one of your direct reports. but at some point, you have to make a decision. if they're not the right person for that job, you have to... -keith: it's tough. -lemonis: make a change. keith: i know. and that's tough. i don't know how i would handle that. i know what i should do, okay? but -- lemonis: he just left. wonder why. keith: i don't know.
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lemonis: you guys know where dean is? no? keith: his car's not here. he must've left. lemonis: let's call him. look, i'm doing everything i can to help this business, but i'm pissed that one of my partners just walked away. who just walks out after they did a bad job and they're getting a second chance? here he comes. dean: [ sighs ] lemonis: do you think he was upset and left? keith: i don't know. lemonis: look, i'm having a tough time communicating with dean, and i'm getting concerned here because i'm running out of patience. i'm hoping keith, his brother, is gonna have better luck than i did. keith: you know, i was just talking with marcus about some of the concepts. he's worried right now that we can't get the stuff done as quick as he needs it. dean: right now, it honestly seems to be more about the show. i sent over for, um... keith: okay, well, then maybe -- lemonis: i'm gonna say this nicely to you guys,
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and it'll be the last time i say it. if you say again that you think i'm asking you these questions because of the show, i will not do a deal with you. this is not like a gimmick or a game. this is -- you guys are taking the most important asset i have. the thing that i care about the most is my camping world business. you know that, right? for me to let you touch it was a very big deal for me. and i think this business could be a $50 million business. keith: i agree. lemonis: i am jacked up about it. dean: i'd like to get to where we're $10 million, $15 million, i do. but right now, am i equipped? no. am i working on it? yes. could i use help building or getting good people in here? -yes. -lemonis: great. but you're not communicating to me that you have a problem. dean: well, maybe not with you personally, but i have communicated with everyone else. at times, it felt a little like i was getting thrown under the bus. i felt that way. and i don't think i'm boring, either. lemonis: let's get the bus and pick up some new people so we can get the job started, okay? look, i don't have time to babysit right now. this is business, and if this isn't gonna work,
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i need to know now so i can make the change. i need a couple concepts drawn up. -i can't wait for him anymore. -keith: okay. lemonis: that's the worry that i have. so, you're the leader. you decide. keith: i think if i talk to him, i can work that out and figure out how to get him quicker. lemonis: you decide. hey, bud. dean: what's up? lemonis: can you print me out some of the automatch renderings that you have? dean: sure. lemonis: the last time i was with keith and dean, i had to chew dean out, and i was pissed, but i'm back. and i want to see what dean has done, and i'm hoping i'm gonna like it. if i don't, we're not gonna move forward with automatch, and i'm gonna make a change. this is what you're thinking about here? dean: yes. lemonis: did you do enough research to make sure that you covered everything? dean: yeah. i think i know what the environment needs that would bring it to life. first thing you're gonna probably catch your eye is gonna be the overhead. that's an actual front end of a car.
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it'll raise up, and then these will be on casters. lemonis: and so what are you putting on here? dean: diamond plate laminate. lemonis: i like that idea. -it feels slick, but automotive. -dean: right. lemonis: i actually love that idea. on paper, everything looks great. his ideas are great, the drawings are great. the big question is, is he actually gonna be able to execute it and go from design to fabrication to installation and not have balls get dropped? dean: if you went with a smaller tire, we could get away with a hubcap. lemonis: i don't want to go to the installation and have mistakes. see the difference, guys? it gives it to me in scale. and look at the difference. the field measurements are gonna be a lot different. i mean, this resolution, it looks like a photo. so, if we're putting too many here, i can tell. so, a tool like that printer gives us the ability to be more accurate, less mistakes. less mistakes means?
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-dean: more money. -lemonis: more money. keith: this project is a phenomenal opportunity. i want everybody paying attention to detail. lemonis: i'm noticing that the business has ramped up really nicely. keith is giving clear direction, on point. this is exactly the kind of leader i'm looking for. keith: you guys do remarkable work. people that work for you do remarkable work. and now we just got to show one more customer how remarkable we can be. lemonis: today's visit at automatch is a very big deal, because not only does it determine whether i'm gonna do the deal with them or not, but the big question for me today is, is dean gonna be my partner, or is he gonna be my partner and the head of design? -dean: nice to see you again. -lemonis: how are you? keith: what's up, bud? how you doing?
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-lemonis: working hard? -dean: round the clock. lemonis: this store's probably two weeks away from being ready to open. -how you feeling about it? -dean: good. lemonis: what i'm hoping from dean is that all of the talent and skill that i know he has, he was able to communicate it to everybody, from fabrication to design. the minute i walk in there, i'm gonna know it if he did it or not. the last time we were together, i was pretty hard on you because i was frustrated. just me being candid with you, right? -lemonis: we're all partners. -dean: right. lemonis: we're all shareholders. but us being shareholders is separate from us playing a role in the business. and so if i don't like it, we're gonna make a change. we're gonna put somebody else over design. am i gonna go inside and be frustrated again?
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ust me being candid with you, right? if i don't like it, we're gonna make a change. we're gonna put somebody else over design. am i gonna go inside and be frustrated again? dean: i don't think so. lemonis: there's no question that dean's a smart guy and he's talented and he's got a lot of creativity. the question is, can he communicate it? if he can't communicate his vision and his plan, they'll never succeed. there will always be mistakes. and that's not something i'm comfortable with. dean: it's a good design. lemonis: all right, you want to show me inside? -dean: sure. -lemonis: okay. should i be nervous? 'cause i'm not gonna lie to you. i'm nervous. dean: as soon as you walk in, you're pretty much grabbed with a collage of color and pretty much a fun atmosphere. your eye pretty much starts to span and you see the columns.
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and then you look across and you see something on the wall. you're not sure what it is and you pretty much have to walk over and investigate. keith: i like that face. i like that facial expression. lemonis: i think it looks pretty good. i'm not gonna lie to you. i'm a little surprised how good it looks. i think the columns came out really, really good. and you even put the store name here. dean: yep, with the location. make it store-specific. lemonis: i am blown away by what i'm seeing here at automatch. dean did research. he understood the car market. he brought in cool road signs and things that i think really gave it color and flair. i dig that. dean: those are specific, which each office has, so that, you know, if you're talking to a customer, you're not just going in any office. you can say, "meet me at the shelby office." kind of gives it a fun atmosphere. -lemonis: i kind of dig that. -keith: yeah, looks good. lemonis: check this thing out. dean: our crown jewel, as we like to call it. -lemonis: that looks... -dean: pretty bad, huh? lemonis: so, what is that?
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-a mannequin? -dean: yep. lemonis: i can tell with the way they've installed this car that they've put a lot of thought into the design, the fabrication, and the installation. matt, why are you hanging out back there like you didn't do the work? matt: how are you? [ chuckles ] lemonis: that's awesome. dean: that's our photo op there. who doesn't want to take a picture with a roadster? keith: there we go. lemonis: awesome. dean, i'm gonna be honest with you. i was worried. dean: were you? how you feel now? lemonis: i feel like you get to keep your job. [ laughter ] matt: all right. lemonis: the key to a retail business is building it out in a way that brings the space alive. that's what precise graphix does. that's why i'm excited about it. they make it colorful, they make it exciting, and in most cases, that can help revenue and that can help margin because you're creating a higher perceived value for your shopper. what's different about your days? keith: the phone's ringing a lot more. i'll say that much right now. -lemonis: more business. -keith: oh, absolutely. i think we're probably gonna double what we did last year.
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dean: we were used to and comfortable doing what we were doing, you know? nothing wrong with doing convenience stores and supermarkets, but you get in this rut, and we're breaking out of it now, and i couldn't be happier. i'm sticking to design and he's sticking to coordinating everybody doing their functions. it's probably the way it always should be, but it wasn't. lemonis: when i first came to precise, this was a very fragmented team. putting keith in charge gave this business a real leader, and we've put dean in a situation where we've given him the tools to be successful. we've done camping worlds, we've done automatches, and they're even picking up some new restaurants. remember standard burger? but what's more important to me is that i feel like we've taken a group of hardworking individuals and made them a kick-ass team. keith: one, two, three. all: team, family, pride! keith: hey, there you go. all right.
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narration: enter a filthy rich world... where million-dollar raptors fly first class. you know what they say? "diamonds are a falcon's best friend." [falcon screeching] narration: where gold cards... are actually made of gold. because the black card is just not fancy enough. narration: where your biggest problem is being denied your dream ferrari. he sent them a cheque for $1 million. they returned it. narration: but to understand the habits of these sky-high spenders, u'll need a guide: the filthy rich guide. when you're filthy rich and somebody sends you a nice, thoughtful gift, you need to embrace it for what it is: a direct challenge to your wealth and social status. see, if your next gift isn't bigger and better,


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