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

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>> tonight, on the profit, i go inside athans motors, a used car dealership started by a guy with no car experience. >> i don't have cars, but i have a good business. >> but you don't have cars! that the business! >> no, i'm done arguing with you. >> he spent so much money building the most opulent dealership i have ever seen that now he can't afford to buy cars or pay bills. if i can't stop the wasteful spending... what'd you spend on these walls? >> $100,000. >> wow. and sell some cars... >> i won't sell it. that car's worth 30 all day. >> athans motors will be out of business. my name is marcus lemonis. i fix failing businesses. this month you lost $150,000. i make tough decisions... you're not gonna come behind every single person and change the deal. >> i didn't agree to this [bleep]. >> and i back them up with my
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own cash. if you're not gonna put your pride away, well, then i'm not gonna do the deal. it's not always pretty. >> are you okay? >> end it. >> but this is business. you gotta trust the process. i do it to save jobs, and i do it to make money. >> that's all you. >> yeah, buddy. this the profit. [hip-hop music] ♪ 10 miles outside of my hometown of chicago, located in morton grove, illinois, is the home of athans motors. in 2009, pete athans, a car enthusiast and successful real estate investor, who made millions flipping houses, sunk his entire life savings into building his first car dealership. >> i created a place where you want to hang out, buy a car, sell your car... car's worth 30 all day, wholesale. service your car, or just come by and have a cup of coffee. >> the project took 18 months and cost more than $4 million to complete.
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>> i've spent all my cash building this place and trying to keep it open. come on. 1,300 in one month? and it's hard to get more money to buy vehicles. >> we're scarce on cars. >> pete hired his cousin tony to be general manager. >> hey, mike, make sure you check that all the tires match. >> okay. >> i'm here every day to make sure everything is perfect. >> and working together has strained their relationship. >> tony, come into my office, please. >> and tony has been talking about leaving athans. >> i can't work in an environment where the owner questions every single thing you do. >> i repeated myself three times. you didn't fix the problem. >> with no cars on the lot, and no process in place, athans motors has been losing over $1.8 million a year. if help doesn't arrive within days, athans motors will be forced to close its doors forever, and pete will lose his entire life savings.
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>> if i close this place down, it would be catastrophic. i'm so mad at myself. >> i've just arrived at athans motors, and i can't figure out if this place is even open. where are all the cars? what they do have is all super high-end. in a good used car dealership you have to have affordable cars. they're not even close to what the market really calls for. they could be $30,000 over, per car, what they actually should be carrying. wow. look at this place. the first thing i noticed in the showroom is i feel like i've just entered caesar's palace. clouds painted on the ceiling, i see murals all over the place. i'm waiting for zeus to pop out. there are no customers around, and much like the lot outside, the only thing i see are a few vintage luxury vehicles in the showroom. how you doing? i'm marcus. >> larry. nice to meet you. pleasure. >> nice to meet you, larry. >> pleasure. >> is this car for sale?
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>> yes, it is. >> how many miles on this? >> 2,400. it was restored. >> uh-huh. how many total cars on the lot? >> probably 20. >> total? >> total. >> 20 cars? 20 cars is more like a private collection than a used car dealership. a successful used car dealership is one that is built on having something for everyone. you have to have a wide array of price points, and a wide array of selection. is pete here? >> yeah, he's in his office. i'll take you. >> okay. >> pete. >> marcus. >> how you doing, buddy? >> pleasure. thank you for taking the time. >> absolutely. >> what did you think of the place when you first walked in? >> it's--it's--yeah. it's built out, that's for sure. >> this is my soul, i design, i architect. >> have you been in the car business a long time? >> no, i was only five years in the car business before i opened. i put everything i have in here in my soul and my bank account. can i give you a tour of the place? >> all right, let's do it. >> i'm the one who did
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everything, so i'm ready to be one of the best independent stores of the united states. >> you gotta get some cars first. what'd you spend on these walls? >> close to 100,000. 80,000. >> [chuckles] okay. >> i try to do something right once so i don't have to touch it ever again. >> you put in how much in renovating the place? $1 million? >> over 2 million. >> wow. >> the ceiling alone probably was about 15,000. >> so one used car. >> correct. >> okay. >> i created a state-of-the-art customer lounge. >> what did--what did it cost to build out this whole room? >> close to 1/2 million. >> come on. so like that granite, how much does that cost? >> they're about 25,000, the four. >> and all this movie stuff, how much is that? >> tvs are about 15,000, the seats are 25,000, 30,000. >> pete, why? how does any of this help you sell cars? >> i made this store to be the place where you want to hang out to have the best customer
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experience anywhere in the united states. >> pete, look, customers don't want to hang out. they want to buy cars at a fair price and then they want to go home. >> well, i'm telling you what i see. >> so let me tell you what i see. this could be a car. that could be a car. those could be a car. >> if you look at it your way, a lot of things could have been cars. >> do you ever look at it that way? >> um... >> pete spent $100,000 on wall plaster, $15,000 in murals, and $500,000 in his customer lounge. look, you don't have to have a college degree to know that to spend over $600,000 on just those items, i mean, it's just irresponsible. think about it like this. the average price of a used car sold in this market is $15,000. that means pete could have used that money to buy and sell 40 cars. at an average margin of $2,000 per car, he would've made $80,000 more in a given month. what'd you pay for the building?
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>> 1.875 million. >> so you have a little under 4 million in the facility. >> yes. >> how much debt do you have on the business? >> about 6.9 million. >> i'm sorry, how much? >> 6.9 million. 5.3 million is myself, my money, and the rest is just friends and family. >> where's the money? >> holding the losses. keep this place going. i'm losing over $100,000 a month for almost 2 1/2 years. >> this is a bad scenario. it sounds like pete has been financing his failed business out of his pocket for the last 2 1/2 years, and it's been operating in the red the entire time. i need to take a closer look at these financials. >> here's erika. >> hi. >> hi. >> i'm marcus. >> i'm erika. >> how are you? >> good. nice to meet you. >> are you accounting? >> i'm the operations manager here, so i do all the accounting, all the finance. >> do you have a financial statement for last month? >> um, the books are in your office. >> sure. i'll get it. >> i could print you one, i think. >> you do the books but you're not allowed to keep 'em. >> everything stays in pete's office. >> but not because she can't get it, it just stays in my office.
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>> i don't think i've ever seen a business where the accountant doesn't have control of the books. pete needs to give erika the tools to do her job and not hide them in his office. right now you're losing $150,000 a month, you're selling ten cars. you're 50 cars short from breaking even. in order to make up for the $150,000 in monthly losses, athans would have to sell 60 cars at $2,500 profit per car. in order to sell 60 cars, you need at least 120 on the ground. today you have 20. you're 100 cars short. since the average used car sold in this area is around $15,000, buying the necessary inventory is gonna cost athans around 1.5 million. you need $1 1/2 million of working capital just to have enough cars to be able to sell cars to break even. i mean, it's--it's a real challenge. how much money do you have in the account today? >> pete? >> why do you--why are you looking at him? >> because he wants to handle everything in the end anyway, so it's kinda--goes back to him.
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>> between 20,000 and 30,000. >> thanks, erika. >> you're welcome. >> pete's cousin tony has been the general manager of athans since they opened, and i want to get his perspective on the business. are you tony? >> yes, i am. >> how you doing? i'm marcus. >> it's a pleasure. >> nice to meet you. >> very nice to meet you too. >> so you're the manager. >> i wear all the hats. >> you wear all the hats. okay. >> i have been in the car business about 18 years. excuse me, marcus. hi. >> hi, how are you? >> what can we do for you today? >> i am actually in the market for an suv. >> like a bmw, mercedes, porsche? what are you looking for? >> i'm kind of looking for something a little bit more modest. >> okay. >> ford, chevy, maybe. >> the first potential buyer i've seen since i've been here walks in and he's looking to buy an suv. he seems motivated, excited, ready to buy. the problem is we don't have what he wants. >> i wish we could help you. >> no, it's all right. don't worry about it. >> maybe next time. >> take care. >> he wants to be in an affordable car like everybody else in america, and every suv
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we have on the lot is priced over $40,000. >> that's the frustrating thing that you deal with. >> how many customers a day do you get that you can't sell stuff to? >> oh, we--it's not just the walk-in customers, it's the phone calls. >> yeah. >> it's the internet. >> seems busy. service seems busy. >> yeah, service does, like, $100,000 per month. sometimes we do a little bit more. >> so in your role as general manager, how much time do you spend out here? >> i'm back here quite often. >> those guys all reporting to you? >> yes and no, okay. i talk to them about daily operations, but technically i don't really have authority over any department. pete wants his finger on every single thing in the store. he micromanages. he's a very proud guy, and he's a good guy. we just don't agree on a lot of things, even the buying of the cars. we have "x" amount of money to spend, he wants to spend money on a $100,000 porsche. and i'm like, it doesn't make
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any sense. when you have $100,000 to spend, it makes more sense to buy $10,000, $15,000 cars that the average working class is looking for. >> tony seems to be on the ball. he seems to know what he's doing. and if pete would let tony do his job--this guy's got tons of car experience--they may not be in this mess. >> he says, "i'm writing the checks, i'm writing the money, this is what we're gonna buy." that's what he does. >> and look what's outside. no cars. you're not selling anything. >> there's no cars. and the relationship is very strained. >> athans motors is in a lot of trouble. they're buried in debt, they don't have any cars on the ground, and there are no customers. but i know the car business, and this is a good location. the facility, while overbuilt, could be perfect with some renovations. it's important that you understand that i take relationships and business very seriously. you're almost 7 million in debt, you're losing $150,000 a month.
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that's a lot of money, pete. and you have almost no cash. what do you stand to lose if this business closes? >> i would lose my house, my dream, it would be catastrophic. >> stakes are huge. >> 24/7, i thought about, every second, of fixing this problem. because if it doesn't work... not just the employees here and everybody else, my wife didn't sign up for that. that's not fair. but... >> right. >> so... >> well, the stakes are big for me too. i take money very seriously. my offer is very simple. it's $3 1/2 million to help clear the debt, bring in new cars for inventory, and essentially change athans motors into a brand-new business that makes money. and you share in the economics. and we'll be 50/50 partners, but i'm 100% in charge.
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'cause i know this business better than you do. there's not even a question about it. so all the work that i do and all the inventory and the process that i put in, you'll share in it. i get my 3 1/2 million back first, and we'll stay 50/50 once it's paid back. while $3.5 million is a lot of money, one way that i protect myself is by owning all of the new inventory. and so my risk is minimized. it's minimized because i can liquidate the cars and get my money back. >> i'm just--i'm a little concerned when you say 100% you run the business, because i believe i have something special here. >> what's special about it? you have a used car lot with no inventory. >> that's your opinion. >> but, pete, it's not--it's not my opinion that you're in trouble, it's the facts. >> well, that's--but that's-- >> stop saying opinion, it's-- we're here. in the four years you've been open, you've lost $4 million. there's 20 employees that work here. they're gonna be out of jobs. >> but what i have set up is
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infrastructure-- >> but it isn't just that, it's--there's no process in place. >> i don't care how much money you have, you can't have the right resources to actually run the business the right way overnight. >> i don't agree with you. >> i... >> there's nothing magical about this business. sorry. >> i-i believe i-- >> the numbers don't lie. you spend $4 million, it's gone. there's nothing magical about it. >> you're look-- >> you have no inventory. it's gone. >> and will i be able to keep the name? >> keep what name? >> athans motors. >> is the name important to you? >> yes. >> i thought keeping the place open was important to you. >> it's my name. i mean, that means a lot. >> it's about marketing and getting customers through the front door. it's not about putting your name on the building. you gotta put your pride away for a minute. >> you're looking at it only on your end as an investor, as a partner-- >> the only way this business works is if somebody that knows the business better than you is driving the process. doesn't work any other way.
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>> i think i'm unstoppable. >> pete, if you're not gonna put your pride away, then i'm not gonna do the deal. >> you don't need to raise your voice at me. >> well, i'm raising my voice because you keep repeating the same thing and you don't seem to understand what i'm telling you. >> are you okay? >> end it. >> coming up... do you trust tony? >> no. this is my money. you're damn right i'm gonna micromanage everybody. i'm not changing. >> and later... pete, what's your problem? >> you know what? i didn't agree to all these changes. now you're just gonna change everything. this is gonna be a dictatorship, this ain't gonna be no partnership. i didn't agree to this [bleep]. the deal's off.
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>> pete, if you're not gonna put your pride away, then i'm not gonna do the deal. >> you don't need to raise your voice at me. >> well, i'm raising my voice because you keep repeating the same thing and you don't seem to understand what i'm telling you. >> are you okay? >> i just need a break. >> i came here to help you. you asked me to come help you. i gave you a very fair offer. it's $3 1/2 million from me to liquidate and clear these debts, to set up a brand-new entity,
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to bring in new assets and some fresh inventory. >> i will be working for free like i am now? >> just like i will be. it's a yes or a no. >> yes. >> i'm writing a check for $3 1/2 million. >> maybe for the first time i'll have a good night's sleep. >> with this check, you know that i'm 100% in charge. >> correct. >> we have a deal? >> we have a deal. >> okay. >> thank you. everybody meet in the showroom, please. everybody meet in the showroom. >> good morning. so the reason we're here today is that pete and i have made a deal. this business is in dire need of capital. it's losing $150,000 a month. we will not be losing money anymore. pete and i are gonna be 50/50 partners.
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but things are gonna change dramatically. going forward, i am 100% in charge. gonna focus on three things: people, process, and product. in terms of the product, it's simple. i mean, it's a car. and we don't have any. there's 20 cars outside. and whatever cars we have outside that don't work we're gonna liquidate. in the past we've made spending decisions that are not with a lot of thought. we're not gonna be buying fancy things. video games and movie screens don't sell cars. i'm gonna liquidate that stuff and transform this place so that every square inch generates revenue. next, we're gonna dramatically change the marketing plan. because once we have cars to sell, we need to get the word out. we're gonna show this community that we're no longer a high-end dealership with no inventory. we will cater to everybody. we're gonna put on a grand re-opening event, invite the whole city, have them come down, check us out, and hopefully they'll buy some cars. the last thing, and i think the
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hardest for pete, is that going forward... tony, pete is finally going to let you do your job. right? >> absolutely. >> and we're gonna do that. i will do everything that i can to make you successful and to help you make more money. that's my job. [applause] all right, let's get to work. hey, pete. can we go walk the inventory? >> sure. >> let's grab erika and tony as well. i'm gonna liquidate inventory of cars that aren't selling. and i'm gonna reinvest that cash into cars that i know will sell. one of the things that i like to do in a business like this is walk the inventory every morning at the start of the day. so the average price of a used car sold around here is $15,000 to $30,000. how much is this porsche? >> 76,000. >> how much is this car? >> 30. >> how much is that car? >> 46. >> where's all your cars under 30?
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if you took this money and didn't have $80,000 in here, how many cars can i have on the lot instead of an $80,000 porsche? >> three, four, five... >> erika? >> six. >> six? >> five, six. depends. >> but when the deal presents itself, the right car that's hard to find, for you to turn it down--it wouldn't make sen-- >> but you sold 11 last month. in a perfect world, pete, if we had 150 cars on the ground and we were making 100,000 or 200,000 a month, i would buy this car all day long. the challenge is because the market is so narrow we gotta be very careful on the type of cars we buy and the type of cars we put our cash into. if this doesn't sell, you've lost $80,000. who's responsible for buying cars? >> i am responsible to an extent. >> so did you buy all these cars? >> no. >> i was buying. >> pete is so committed to proving that his way is the right way that he's ignoring people that know the business far better than he does. and he continues to bury himself
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in debt and bad decisions. if we don't understand where the market really is, and we don't price properly based on the age of the car, then everything we have on the lot's gonna be full of water. and when it gets past 60 days, it's just depreciating. this is cash that's just--it's melting down on us. they gotta go. can you point out to me the cars that are over 60 days old? >> this one. >> [sighs] what do we own it for? >> 46. oh... >> great. come on, guys. >> with-- >> i'm gonna clear the cache. we're gonna make money. >> i know, but you're taking a big hit. >> how much is this car worth? >> 32. >> 28.5. >> oh... >> next car. >> can't buy that at 28.5. >> it's five months old. this lexus. >> 33 and change. >> how come you don't know these numbers? >> i could answer you. >> let him answer. what's the car worth? >> 48. well, i'll stop answering. >> what do we own it for? >> about $45,000. >> what's it worth? >> low 40s.
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>> 38.5. >> you're--you're discounting easy things that i can't go buy at the price that you're saying. >> well, pete, they're not worth anything if they don't sell. they're just sitting here. when they're past 60 days, they're gonna get liquidated. if we take a loss, we're gonna learn our lesson. these are the wrong cars for this market. tony, these cars better be gone by the end of the week. you're the general manager. i expect it to be done. >> this is a 2012 c-class. so tires, brakes, everything's better than 50%. did all the fluids on the car. >> i'm impressed that i see tony wasting no time bringing wholesalers in to liquidate cars. we will no longer follow pete's plan of having dead inventory just sit around. we're gonna turn that into cash and reinvest it into cars that actually sell. >> the car sitting here right now, better than 34,000. >> that--it's never gonna do 34,000. >> i know. that was the problem from the start.
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>> i think the car is somewhere in the 28 range. >> 28.5, i'll sell the car and it'll be--it'll be done with. >> okay. >> hey. >> tony. >> both: what's going on? >> this is andrew. >> hey, how are you? >> hi, andrew. nice to meet you. >> i'm selling him the car for 28 1/2. >> i won't sell it at that. car's worth 30 all day, wholesale. >> i think that if i bring it to the auction, it does 27, 27.5, and i think at 28.5 i'm just trying to open the door to do business here. >> and this was a frontline ready car, so... >> i'm taking that into consideration at 28.5. >> "frontline ready" means that the car has gone through a series of inspections and has been checked out from top to bottom. the car's been detailed and it's now ready for sale to the customer. >> i can't let you make a couple thousand on a wholesale deal. >> okay. >> andrew, how are you? >> hi. >> this is marcus. >> how long have we had this car? >> close to six months. >> i mean, that's the issue. the car's not worth 34 grand. who bought this car? >> pete bought it online. >> it was a mistake. >> well, i still think 28.5 was too low. >> let's you and i talk over here. sorry, andrew.
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what is the problem with letting tony do his job? what is the problem? >> i feel i have to be on every single decision because that extra 500, that extra 2,000 means everything to me. >> he's not gonna have you lose money because he thinks it's fun or 'cause he's distracted. >> i just think people look at things differently when it's your money and not anybody else's. >> honestly, i have to tell you, from what i'm hearing and what i'm seeing, i don't think you can help yourself but to micromanage everything. >> but i haven't. >> i'm watching you do it all over the place. >> that's ridiculous. >> no, it's not ridiculous. >> that's ridiculous. that's ridiculous. >> do you trust tony? >> no. >> why? >> because it's my money. he loses nothing. that's the problem. so if that's micromanaging, yeah, you're damn right, i'm gonna micromanage everybody. i'm not changing. >> if you cut somebody's balls off every time they make a decision or in front of somebody, he does the deal and then the deal unwinds, it's a problem. the reason you're taking a $5,000 loss is 'cause you bought the car wrong. that's the reason there's a loss. not because he made a mistake on the value. cars that have been out here more than 60 days have to go. so this car is going, and tony
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made the deal, and you're not gonna come behind every single person and change the deal. you can't do that anymore. and andrew, the car is sold at 28.5. >> aw, bull[bleep]. >> coming up... >> why is this car still sitting here? >> pete told us to stop doing it. >> what do you mean pete? i can't work in an environment where someone micromanages. i don't want to do this anymore.
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>> hey, guys. are you ready to start? we're gonna open up these doors and get these cars out. in order to transform this business, we need to utilize every square inch of this facility to generate revenue. these classic cars are on consignment, which means that we don't own 'em, and we're not gonna make a lot of money on 'em. i want to get them outta here so i can bring in cars that we do own and we can make some real money on. >> that's all you. >> yeah, buddy. now that we've gotten rid of the wrong cars, it's time to buy the right cars. >> [indistinct auctioneering] >> we're at the auto auction where tony will have the chance to do his job and buy inventory without pete interfering. >> all right. >> too many miles. i don't want it. if you can buy this car for, like, 5 grand, 5,500. that car's probably worth about 9 grand. >> 9 grand. >> sold. >> [indistinct auctioneering] sold! >> i can tell this is tough for pete letting tony and i make
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decisions, but i'll give him some credit. he's standing back and letting us do our job. >> sold! [indistinct auctioneering] >> the balance is $386,672. >> okay. today we picked up 28 used cars. we more than doubled our inventory. take care. i've hired painters to come in and take down these murals and paint over these clouds that add no value to selling cars. we're gonna liquidate all these excess luxury items so we can reinvest back into the company. this is gonna put about $150,000 of working capital in the bank. whoo-hoo! check it out. liquidation. i brought in a crew of several dozen workers to transform the lounge into an auto accessory store. i've also taken walls down to create a nice checkout area and improve the customer flow. just want these in the showroom? the lounge currently generates no revenue per square foot. it actually costs us money. once we bring in these parts and accessories, we'll be generating revenue at every square inch.
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we actually want this lounge working for us. >> i can't believe you took my lounge away. this was a state-of-the-art lounge. >> there was just too much square footage not being used. we have to generate more revenue. we can't use it just to have people sit around and watch movies. doesn't work. unbelievable. >> jim. why is this car still sitting here after i specifically said i needed it done asap? >> pete told us to stop doing it. >> what do you mean pete? god--all right. >> i gotta listen to the boss. >> you know what? that's fine. i can't work in an environment where someone micromanages. i just can't do it. >> what's going on, tony? >> listen, i decided that i don't want to do this anymore.
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>> why do you want to leave? why? >> because our [bleep] relationship went to [bleep]. and i'm not gonna let that happen no more. i made my decision-- >> no. >> there is no amount of money that's ever gonna get in-between me and my family. and you are my family. it wasn't an easy decision. and... >> you're not leaving, though. >> i am. >> listen, no, you're not. >> you and marcus need to continue what you and i started. hear me out. >> no, you're not going anywhere. marcus, come here, please. marcus, come here, please. >> listen, nobody's changing my mind, okay? >> you stay here, you will be running it. we've set everything up to succeed. >> i'm sure you will, pete. there's no question about it. >> listen to me. then if you decide in a year or two you don't want to be here-- >> doesn't matter. >> tony--
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>> it doesn't matter. i want nothing more than this world for you to be successful. >> listen, listen-- >> no. >> so what's going on again? >> he wants to leave. he feels that--not to be here. >> why not, tony? >> i feel that, um, right now he has the right partner to help him get to the next level. >> well, he has the right financial partner, but i'm not here every day. >> i understand that. and, uh... >> have i ever asked you for anything? now i'm asking you. play this through. >> my decision is made. >> coming up... >> why'd you take my name off? >> i need to make sure that everybody that came here before knows this is a new day.
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because when they came here before, there was no cars. >> i'm done arguing with you! this is bull[bleep]. move. hi i'm joan lunden.
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the future isn't silver suits anit's right now.s, think about it. we can push buttons and make cars appear out of thin air. find love anywhere. he's cute. and buy things from, well, everywhere. how? because our phones have evolved. so isn't it time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. it's a new kind of network. xfinity mobile. >> well, tony's now gone. what do you think? >> i just think it's sad. i look back that i did a lot of things wrong, and it's my fault
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because i micromanaged him. i'm upset. >> micromanaging people isn't a good thing. i mean, this is a guy that's been in the business for 25 years, right? and you don't have the same experience, in fact you don't have any experience in the auto business. and the fact that we have this grand opening coming and we don't have really anybody else that understands the auto business is a problem. so i'll go ahead and fill that role of appraising and kind of working on deals with the salespeople, and then i'll find somebody else to fill that role, but we are gonna need somebody here on a daily basis that understands the car business. i can't be here every day. tony was not only the general manager, but he was the one guy that actually knew the car business. pete's micromanagement ran him off. and if pete doesn't change his ways, more people will leave. i hope your relationship with him can at least repair itself, 'cause it seems like your personal relationship is strained. so i wish you luck in that regard. >> thank you.
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>> we're a couple of days away from the grand opening, and not only am i transforming the old business, i'm creating a new one. athans motors will no longer exist. we will reopen as automatch usa. at automatch usa, we're gonna match the right person with the right car. and we're gonna have something for everyone. automatch usa. you like it? >> cool. >> i love it. >> yeah, thank you. >> i didn't agree to that. why'd you take my name off? >> 'cause that's the new name of the business. >> that's bull[bleep]. you didn't even ask me. >> so is it about you seeing your name on the building, or is it about selling cars? >> my name brought customers in the door 'cause i have a great name in chicago. everybody knows who i am. that's why they come here. >> really? >> really. >> you actually believe that? >> i absolutely believe it. >> uh-huh. nobody gives a [bleep] about your name. >> who gives a [bleep] about your name? >> i don't have my name on the building. automatch usa is the new name of the business, and i need to make sure that everybody that came
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here before knows this is a new day. because when they came here before there was no cars. none. >> i don't have cars, but i have a good business. >> but you don't have cars! that is the business! >> i'm done arguing with you! this is bull[bleep]. move. [bleep] bull[bleep]. >> pete, what's your problem? >> you know what? i didn't agree to all these changes. now you're just gonna change everything. this is gonna be a dictatorship, this ain't gonna be no partnership. >> well, it's not a dictatorship, 'cause when you called me you asked me to come in and help you fix the business. the thing that you didn't seem to understand was that everything had to change. it's gotta be a new business. when i gave you the $3 1/2 million, it was to start a new entity. it wasn't to just pick and choose what was gonna change. we needed to relaunch this brand. >> you know what? i didn't agree to this [bleep]. the deal's off.
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>> we needed to relaunch this brand. >> you know what? i didn't agree to this [bleep]. the deal's off. >> no, pete, it's not off. that's not how it works. i've put a lot of money into this place. and the employees are happy. and you've liked a lot of the changes. you know you've liked a lot of the changes. so what's the real problem here? >> i don't like you changing the name without telling me, 'cause that tells me you might be able to change everything down the road. >> there's gonna be more changes, pete.
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there's gonna be a lot of changes. until we get it right, we're gonna make changes. >> i spent 4 1/2 years creating a brand, spending millions of dollars to have a great name on the street for customers, for employees, for everything, and you just changed it without even asking. >> you're getting so caught up in the details that you're letting your emotion outplay the logic of the business. >> but this second it hurts, i'm not gonna lie to you. before you know it, it ain't gonna have anything of me and the brand i created here. >> i sympathize with your frustration. i do. it's a little like surgery. but i don't have any anesthesia for you. the process is gonna be painful, and i don't have anything--any way to make you feel any better. >> right. >> but in the end, what matters is that you make money, these people's jobs get saved, and the business survives and it thrives. that's the goal here. >> you're right. you're right. >> so i need you to go along with this process. do you trust me? >> i trust you. maybe it was all the shock all together. >> yeah, and it's a lot. i understand. it's hard to have change. but we need to have an understanding that every time you don't like something, you can't--you can't-- >> i'll just talk to you about it. >> you can't storm off. >> okay.
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>> and you gotta be able to channel that into positive things, and you gotta learn this business. okay? then let's go. let's get back to work. okay? i'm happy with what i've seen here. i spent over $1/2 million turning this place around. well, this looks a lot better in here. we've gotten rid of the distracting decor and murals and redesigned the layout so that every square inch of the place can be utilized to generate revenue. the customer lounge is now a full-range parts and accessories department. the showroom has been converted into a display area where customers can shop for vehicle upgrades like rims, tires, and suspension systems. with the grand opening right around the corner, we're adding the finishing touches to get automatch usa ready for its first customer.
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try to get this cleared, 'cause what i'm really worried about is creating a pathway for people when they park. >> i haven't seen the snow this bad in so long, and of course of all days, my luck, during the grand opening. and it sucks. these front here, i can't have big piles. see that starting to pile up? >> yes. >> today's the grand opening, and we have weather working against us. we cannot afford to mess this up. this is a huge day. >> where are you guys? okay, bye. >> hey, man. where's the hauler at? >> they said they're on their way. they'll be here within a half-hour. >> 'cause we're opening soon. >> i know. i'm sorry, i know. they should've been here. guess they got stuck with the snow. >> the grand opening is minutes away. we're still waiting on two haulers with 20 cars. i mean, the fact that we're having the grand opening soon and we don't have all these cars here is a problem. >> i want to show marcus how important automatch is as athans
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motors was, because it means everything to me. >> obviously we didn't factor on snow, but it's chicago, so we should kind of plan for it. >> should've had them come three hours earlier. >> all right, well, let's make sure that everything else is right. >> [bleep]. >> if your business is in trouble and you need my help, log on to the future isn't silver suits and houses on mars,
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it's right now. think about it. we can push buttons and make cars appear out of thin air. find love anywhere. he's cute. and buy things from, well, everywhere. how? because our phones have evolved. so isn't it time our networks did too? introducing america's largest, most reliable 4g lte combined with the most wifi hotspots. it's a new kind of network. xfinity mobile. >> i mean, the fact that we're having the grand opening soon and we don't have all these cars here is a problem. all right, well, let's make sure that everything else is right. >> [bleep] [bleep]. [horn honks]
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>> one of the haulers just showed up. it's time to start unloading. keep going. >> they're all fine. the second one's gotta face in. >> yeah, we're okay. >> just help me out. we gotta move. >> let me get danny to move this car. >> gotta get these off. >> that's a customer's car? >> bring 'em off and i'll have my guys pull. >> i want a domestic here, and i want that brought a little forward. who parked that? >> i'll pull it up. >> pull it up. guys, get me the keys for the wrangler. the second hauler just showed up and we have a lot of cars to unload. >> we gotta move. we're late, we gotta move. >> pete is really working hard to get things done. >> oh, [bleep]. >> he's making up for the late arrival. >> put the shovel down. you're gonna drive a car. one, two, try one more. one at a time we take 'em off. lot of work. marcus, all the cars are cleaned off, all the snow. >> it looks good. i'll take the shovel and i'll go grab that section over there. >> okay. >> hi. welcome. thanks for braving the weather.
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even though we were expected to get over six inches of snow. welcome to automatch usa. i started noticing a steady stream of customers arriving. who are you? >> audrey. >> audrey, nice to meet you. welcome. >> hi, audrey. marcus, this is my wife. >> oh, hi, how are you? very nice to meet you. well, enjoy yourself today. >> thank you. >> thank you so much. >> thank you for coming. >> got a nice, little crowd today. >> one of the best days of my life. you're giving me something that money can't buy. and that's the process and doing things the way a dealership should've been. i feel so happy. i lost 15 pounds, and not trying. so i love to come to work. >> so you guys interested in the explorer here today? >> yes. >> yeah, it's a nice car. >> i like what i see today. automatch usa is filled with customers. our guys are working their butts off, and pete has been a selling machine. >> do you guys do financing here? >> we deal with all major banks to hopefully meet your payment that you guys can afford. >> mm-hmm. >> we could probably afford around 350 a month comfortably.
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>> i think we should be able to get that done for you at that price range. >> thanks again for coming. >> thank you, marcus. nice to meet you. it looks like a brand-new showroom today. last time i came in and went to the parking lot, i think--maybe six cars or something, and i never got out of my car. this time there's a lot of stuff to look at, which is fun, from rims to tires. a lot of nice cars on the lot. >> this has the sporty options that you like. >> i think i'm gonna buy a car today. >> thank you. >> you want to take a look at our cars? >> yeah, that'd be great. >> it's been a very successful day, and i'm really proud of pete and the entire staff. >> anything you like, i'm here. just call me. i'm here day and night, so whatever you like. okay? >> look, it was a great day. we've sold a lot of cars and a lot of accessories, and we've generated over $100,000 in sales in one day. >> looks great. >> it looks fantastic. >> beyond beautiful. can't complain. >> you did it. >> almost there. [voice breaking] almost there.
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>> you did it. >> thank you for believing in me. one stop shop. for everything. can you have the gmc ready by tomorrow? >> we could do that. >> thanks, guys. >> we've been open for a month, and already we've seen massive improvements. >> it's all yours. you run the department, you're gonna write all the checks, control all the receipts. i will take a step back in that department. >> good. >> i've brought in a general manager with 30 years of experience to teach pete the car business. this is pete. this is john gavin. >> nice to meet you. >> nice to meet you. >> pleasure. >> pleasure. >> john is the new general manager of automatch. >> i'm gonna help you make a lot of money. >> okay. >> the inventory has gone from 20 cars to over 150 in inventory. we're averaging about 90 sales a month. it's only a matter of time before automatch usa is really profitable. >> thank you very much.
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lemonis: tonight, on "the profit"... i visit artistic stitch in queens, new york, an embroidery and silk-screening business plagued by an identity crisis. sal: it's a multiplex of businesses that really work together. lemonis: that's what's called a "mall." lemonis: delusions of grandeur compelled the owner to build out his entire facility with whatever he could think of. sal: this is the restaurant. this is the sports complex. this is our baseball facility. lemonis: is it profitable? sal: no. lemonis: if i can't figure out a way to bring this company back to its original roots, artistic stitch will close its doors forever. the numbers aren't adding up here. sal: i'm this close to going home. lemonis: my name is marcus lemonis, and i fix failing businesses.


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