This week, Marcus Lemonis travels to California to help JD Custom Designs, a retail display manufacturing company struggling with relevancy and control issues. According to CNBC, if “its owner can’t let go of control, which slows the process, limits creativity, and pushes the business right to the brink,” the business could spiral out of control.
Visiting their Fullerton office, Marcus Lemonis immediately notices that most of the displays are related to cosmetics, except for one industrial display. Owners Jeff and Aimee Dougherty then show Lemonis the shop, which he says is very disorganized and chaotic. There are also broken machines, which are starting to cause a backup in creating the displays. Lemonis also finds it odd that Aimee, who has a background in sales, is not actually involved in the sales of the business.
Wait a minute…why isn’t Aimee, the salesperson, doing sales? 🤔#TheProfit pic.twitter.com/I3dbv9TlCd
— CNBC's The Profit (@TheProfitCNBC) January 17, 2018
Lemonis then meets the Doughertys’ oldest son Wes, who says that he loves working with his dad and expresses interest in remaining involved in the business in the future. He admits, however, that he’s worried about Jeff and how much he works. Jeff tells Lemonis that he doesn’t like the feeling of being out of control, which causes the company to be “one-dimensional,” according to Lemonis.
After looking at their financials, Lemonis decides to offer $300,000 for 50 percent equity. Aimee questions whether he would do 60/40, which Lemonis declines. Ultimately, the duo accepts his original offer, which will go towards paying off bills, fixing equipment, cleaning up the warehouse and stocking raw materials.
Jeff: “I know…you’re 100% in charge…” @marcuslemonis: . . . #TheProfit pic.twitter.com/eGW2c4CVfo
— CNBC's The Profit (@TheProfitCNBC) January 17, 2018
Lemonis tests the duo’s creativity next at The Wonder Emporium, a toy store, and challenges them to each pick 10 items and produce an engaging display in five days. Lemonis appreciates that, while picking out toys, Aimee is taking on the persona of a kid, which stands in stark contrast to Jeff’s seriousness. Jeff also doesn’t relinquish control, causing Lemonis to say that he took the fun out of the exercise.
Aimee and Lemonis then have a meeting at Bodhi Coffee Leaf to discuss sales. She expresses interest in selling and he challenges her to pitch the products to him. He wants Aimee to prove to him that she believes in the company and herself.
Next, Lemonis introduces Wes to Steve of Grafton Furniture, another Lemonis deal that involved a father-son duo. The two of them work on cleaning up the warehouse, without help from Jeff. Lemonis then takes Jeff to Laguna Tools, where they look for new machinery. Following the purchase of new equipment, Lemonis views the toy display. He is impressed that he got input from other team members, but doesn’t like that it’s not collapsible. But Aimee defends the design, which Lemonis likes.
What grade would you give this display? #TheProfit pic.twitter.com/zHXQcATde7
— CNBC's The Profit (@TheProfitCNBC) January 17, 2018
Lemonis then takes Jeff and Aimee to ML Creative and introduces them to his partner Juli Reed and Brad of ML Creative to pitch possible displays for a business collaboration between Inkkas Footwear and Flex Watches. Lemonis wants to test Aimee’s sales side, but Jeff ends up interrupting—causing her to become flustered. Lemonis encourages her to connect more in the pitch by asking questions and being more direct. They agree on a display, which Aimee says she expects to be about $500—which Jeff disputes.
Wes then shows Lemonis the improvements that were made to the warehouse, which he admits is much more organized. He also says the new equipment, which will help with productivity, is “amazing.” At the ML Creative presentation, Aimee presents the display options, which are $500 and $750, respectively. Lemonis likes the units and appreciates the fact that they are branching out from cosmetics displays only. He then challenges the duo to bring the displays to Gander Outdoors, which has the potential to be a major deal.
WINNNNNNNNING! 🎈🎈🎈 #TheProfit pic.twitter.com/OddcnCZVyn
— CNBC's The Profit (@TheProfitCNBC) January 17, 2018
Back at the warehouse, Lemonis notices that Jeff is still involved in everyone else’s business. He tells Jeff that he needs to trust people more, but he’s still nervous about giving up too much control. Jeff tells Lemonis that he’s worried about taking care of his family and, after reiterating the story about his abusive stepfather, Lemonis says he understands a bit more the control aspect. Jeff assures Lemonis, however, that he’ll work on letting go of control.
At the Gander Outdoors sales pitch, Aimee presents the designs, which are referred to as a bit “generic.” She encourages them to look at the display as more “universal” and also shows off the second display, which they call “impressive.” They like the versatility and branding—and JD Custom Designs gets the deal. Lemonis projects that they will do $5 million next year.
See how social media reacted to JD Custom Designs on “The Profit” below:
Social Media Reacts to JD Custom Designs’ Appearance on “The Profit”
Working in retail, I love a great display! #TheProfit
— Monica Ledbetter (@mon_led) January 17, 2018
The struggle between family and a #smallbusiness. Eternal and a constant balancing act. #TheProfit
— Farrah Haidar (@FarrahHaidar) January 17, 2018
Marcus has a soft spot for family businesses. @JD_Customs is a family business with a chance to build a legacy. #TheProfit
— DENISE (@Denise247365) January 17, 2018
This episode really hits close to home. The everyday struggles of family business can be soul crushing at times. #theprofit
— Kristen Kendall (@KristenKendall) January 17, 2018
It’s heartfelt tonight on @TheProfitCNBC but at the end of the day this is still business #TheProfit 🔥 pic.twitter.com/ZilAeiTUiG
— Ricardo Miguel Martinez (@ElRicardoMiguel) January 17, 2018
Being creative and nimble…great idea to practice display with toys! And she’s doing focus group with a child! #branding #TheProfit
— Nancy Van Leuven (@NancyVanLeuven) January 17, 2018
"Business is one thing. Your family, your health, that's more important." Truer words were never spoken. Working so hard to put my family + health first in 2018. Need to #worksmarter #bgtp #TheProfit
— Kris Wittenberg (@BGTPGirl) January 17, 2018
You can do it girl, the answers are in your ❤️. Speak from there, sell from there. #TheProfit
— Monica Ledbetter (@mon_led) January 17, 2018
I am so impressed with Wes @jdcustomdesign! This young man is so respectful anytime he gives an answer and called upon. Always using "Sir" in his answers. #TheProfit
— Patrick Brown (@MrPatrickBrown) January 17, 2018
Literally every retail and product business in @marcuslemonis portfolio can benefit from a partnership in @JD_CustomDesign & with ML Creative & @PreciseGraphix what a combination! #TheProfit
— Andy Kunzmann (@andykunzmann) January 17, 2018
Love the pep talk. @marcuslemonis inspires us all. #TheProfit
— Lynn C Johnston 🦋🌸🙏🏻🏠 (@lynncjohnston) January 17, 2018
If @marcuslemonis tells you that he believes in you, you should BELIEVE it and BELIEVE in yourself! #theprofit pic.twitter.com/wxxGWY0cLS
— Carrie 🍋🐶🐷🍷🍭🧚♀️🙏 (@carrieleelily) January 17, 2018
I love to see previously profiled businesses showing the new business how it's done! @marcuslemonis @TheProfitCNBC #TheProfit
— Marja Ricci (@marjamoo) January 17, 2018
@marcuslemonis Give her the chance to do her work without interruption. He will see how well it will work and how much more they can get out of it. #TheProfit
— Ruth M 🍋🍋 (@travlingtheroad) January 17, 2018
@TheProfitCNBC Always trust and believe in each other. Have each other's back even when things don't go right. #TheProfit
— Fred Greil (@fredgreil) January 17, 2018
The most impressive quality @marcuslemonis has is how he deals with people. Not everyone is capable of this. #theprofit
— Renee Kakos (@ReneeKakos) January 17, 2018
“The Profit” airs every Tuesday at 10 p.m. on CNBC.
What are your thoughts on JD Custom Designs’ relevancy and control issues? How do you feel about Aimee’s sales pitches? Do you feel as though they grew with the help of Marcus Lemonis’ deal? Sound off in the comments section below!