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General => General Discussion and ??? => Topic started by: royster13 on October 25, 2014, 11:13:29 AM
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The business featured was Artistic Stitch http://www.cnbc.com/live-tv/the-profit/full-episode/artistic-stitch/345882691507 (http://www.cnbc.com/live-tv/the-profit/full-episode/artistic-stitch/345882691507)
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I watched it after I saw it in the shoutbox. Was pretty interesting. Made for TV? Or could those two really be so out of touch with reality?
2 million a year in revenue and you have financial problems...ouch.
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The sale guy was pretty worthless.
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I thought it was interesting. Screen printing and embroidery were only doing 1.3m and they had been around a long time. With it being located in NY I would have suspected larger sales number than that. Really crazy was the rent being 17k a month. I would be curious to a update on that one later on and see if/how it turned around.
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along the same lines here is a pretty neat calculator site not the least interest of which is a margin calculator.
mooseman
http://www.calculatorsoup.com/calculators/financial/margin-calculator.php (http://www.calculatorsoup.com/calculators/financial/margin-calculator.php)
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The sale guy was pretty worthless.
i know...what a joke.....he is just riding the coat tails......a total leak in the payroll...and he is working on commission now...he must be starving.
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I haven't seen it yet, but I bought my automatic off of him earlier this year. My friend who went with me to help me disassemble/load it/etc called me on Tuesday, "That guy Sal is on the Profit!!!"
It was a very unique business to say the least.
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Haha no way! So were they getting rid of the auto because they were closing?
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I would think that with the investor behind it now it would be less likely to fail as that guy probably doesn't like loosing money but if it was really loosing money maybe they are closing it.
Annual sales of 1.3 mil for a 18 year old business in NY with 17k a month in rent sounds terrible to me.
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crap, rent alone is over $200k, and I am sure utilities are crazy as well....
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No, they just got a new 10 color sportsman (I think).
It was a very impressive looking place, beautiful building, until you got to the screen print shop which had a leaking roof. It was a very rainy night. There was water leaking from the ceiling into inked screen on manual presses, etc. They used office chairs to cart the shirts around and to load off of.
I'm not bashing the guy in any way, but my immediate thought was spend a couple of bucks down here and you will run more efficient. You can tell in every other area of the business he spared no expense.
His office was just amazing. It is all marble and looks like a sky box.
I'm very interested in seeing this episode as I'd really like to hear the story.
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Ya the embroidery area and everything else looked really good. They spent very little time showing the screen print area I assume because it was messy. All I know is I felt better about our situation after watching that and hearing his numbers.
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Yeah, all you see of the screen printing is a flash shot of what I assume is now your press.
The front part of the building looked immaculate, over the top.
The idea of the building, as it was presented in the show, is he has an option to buy that building after 5 years I think for 2.5 mil and it would be worth 5 mil or something along those lines. So he was trying to fill up the building with stuff he thought would generate enough revenue to cover his rent until he could cash out. In theory, it was pretty smart...just the execution of it left a bit to be desired.
Hindsight is always 20/20 though!
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Yeah, all you see of the screen printing is a flash shot of what I assume is now your press.
The front part of the building looked immaculate, over the top.
The idea of the building, as it was presented in the show, is he has an option to buy that building after 5 years I think for 2.5 mil and it would be worth 5 mil or something along those lines. So he was trying to fill up the building with stuff he thought would generate enough revenue to cover his rent until he could cash out. In theory, it was pretty smart...just the execution of it left a bit to be desired.
Hindsight is always 20/20 though!
He lost the right to do that I believe in the show (purchase the building). Was behind on rent and prop taxes.
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He lost the right to do that I believe in the show (purchase the building). Was behind on rent and prop taxes.
I am pretty sure "The Profit" researched that very well before getting involved....They made it look bad but I am sure Marcus knew there was a way out all along...
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Well, they were sitting there and Marcus asked, "So he is in jeopardy of losing the buy out?" and the landlord was like "What do you think?" and from what I remember that was the end of it. So I'm guessing part of the deal was if they made the taxes and rent whole again the option would be back on the table. I don't see Marcus/The Profit getting involved without that deal still being available as it made the investment very attractive.
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Well, they were sitting there and Marcus asked, "So he is in jeopardy of losing the buy out?" and the landlord was like "What do you think?" and from what I remember that was the end of it. So I'm guessing part of the deal was if they made the taxes and rent whole again the option would be back on the table. I don't see Marcus/The Profit getting involved without that deal still being available as it made the investment very attractive.
Hard saying for sure as we all know they play this up for TV. He may have known and maybe he didn't. I know on the show they play it like he comes in has a 10 minute conversation (basically) and he makes a investment, I would assume that's not near the case and he's likely got people in there combing the books/meeting with everyone and so on. Even for rich people 660k is no joke.
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Yeah, there is no way anyone can convince me he wrote a check for 660k off some lump sum numbers from a QB P/L sheet. He knew about the "Target" transactions, etc. Had to. But the down and dirty details would have made for boring TV. I still think it was a good episode and gave some good lessons.
And the fire station part was hilarious.
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and I like when Marcus busted him on paying off the guys personal debt......the shop owner never mentioned a lot of the debt was his personal debt he and his wife accumulated on their own living their life....he's like "whats this??$247 at a steak restaurant???...so im paying your personal debt to????"
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not to hi jack the thread but you need to watch the one with Sweet Pete's...the candy store guy....wait till you get a load of the business partner....the guy invested $2,000 in the business and tried to shake down Marcus for $150,000 buy out of his shares.......that dude is a tool!!!!...Marcus handled his butt quickly!
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I (think) I bought my press from him a little before this show was done. I haven't seen it yet, so I could be wrong.
The story he told me was he bought the building. Now I'm thinking he was renting with option to own.
He definitely had his hand in everything, and it was a very interesting layout.
The screen print shop was in the back of the building. The roof needs to be redone. It was no where near as pretty as the rest of the building. Night and day.
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Let's remember folks.
These shows are almost COMPLETELY fake!
Sure there is SOME reality there... just like "The Exorcist" is BASED on a TRUE story. ;)
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Definitely, though I don't think the sales guy was acting haha.
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Definitely, though I don't think the sales guy was acting haha.
No it would be hard to act that stupid. LOL
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Let's remember folks.
These shows are almost COMPLETELY fake!
Sure there is SOME reality there... just like "The Exorcist" is BASED on a TRUE story. ;)
This is why I am dying to see this episode. I want to see how much of it makes sense, and how much of it seems like complete BS.
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OK. I finally saw the episode yesterday. It's on youtube (thanks to KingScreen for posting the link in another thread!)
First, I'd like to point out that the $27,000 Brother DTG idea must not have worked.
http://www.digitsmith.com/brother-gt-3-series-direct-garment-42684.html (http://www.digitsmith.com/brother-gt-3-series-direct-garment-42684.html)
This was my first time ever watching that show. I can not imagine a business investor would go into a place, listen to someones story, peak at a P&L (which someone could have doctored). Then cut a check for $660K after 20 minutes. Obviously, a lot of that has to be exaggerated for the drama of TV. I'm guessing he knows everything beforehand, then pretends to find out as they go along. I'm pretty sure Marcus & company know exactly what they are getting into. Otherwise he would have been bankrupt ages ago. If it's even really all his personal money that's being invested.
I would guess that from a TV angle, the people at the shop have no idea what is going on. Although it blows my mind that someone could be as bad as that salesman/partner was.
I really wish they did follow up episodes to show how the business progresses. Or had a whole season be on a particular business. According to the show's schedule. He comes in and invests on 18 businesses this year. Unless he turns down some of them. Pretty cool show though.
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Who know, but court room show (ppl's court) pay the outcome. So those guys go on there with nothing to lose.
This fake reality has been going on for decades (successfully).
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There was an interesting article concerning "The Profit" in the Oct issue of Inc Magazine.
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There was an interesting article concerning "The Profit" in the Oct issue of Inc Magazine.
http://www.inc.com/magazine/201410/david-whitford/marcus-lemonis-the-profit-turns-around-failing-businesses.html (http://www.inc.com/magazine/201410/david-whitford/marcus-lemonis-the-profit-turns-around-failing-businesses.html)
He worries about preserving the integrity of what qualifies--at least within the alternative-reality world of reality television--as a very real undertaking. His fee per episode doesn't even cover his travel expenses. He gets no royalties, no syndication, no back-end rights whatsoever. And when he writes a check and takes a stake, he's putting his own money at risk. It would seem that Lemonis negotiated an uncharacteristically bad deal for himself, but he claims the arrangement keeps things "super real and raw." If he were to put a company he already owns on air, it "could seem like a paid advertisement," he says.
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I watched that episode awhile back and last week decided to see if that place had a website. I saw that their Facebook page was up to date and the place looked just like it did before the show in the pictures. I am addicted to that show.
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I don't buy that Brandt... I know way too many ppl in that business to think differently.
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I don't buy that Brandt... I know way too many ppl in that business to think differently.
You could be right, but there are always exceptions to the norm in everything. So while id generally agree with you in relation to "reality tv" his response seems pretty genuine to me as far as his fee per episode and payment made to him. I believe it to be his own money as well. Do I believe he looks at the books for 5 minutes then buys, nah. I suspect its a good bit deeper than they portray it on the show at times, but it wouldn't be super exciting to watch a guy looking at papers for an hour would it, plus that won't sell commercials.
Marketing wise and I see it as a great deal for him. Obviously if he buys a company and fixes it he's got a 1hr commercial that will air over and over, this will help sales of that company I suspect. So it's fairly great idea on his part to no worry about what he's being paid to do the show.
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The show is an amazingly cleaver way to bring in 40,000 request for him to come fix a business, that is 40,00 opportunities to invest in companies he would never even know about. His specialty is consolidation wrapping up many small companies in like markets making one power house organization out of many insignificant businesses. He must have a opportunity to deep dive into the books of these companies before they even engage in creating a episode.
He is one smart guy for sure!
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Just saw this yesterday (I know, I came in late to the party). Unfortunately they didn't show much of the screen printing business, that's the main reason I wanted to see it.
The boss was nuts, really don't understand half the stuff he did.
The other partner (the sales guy) was more likely driving sales away than making them happen. How can a 1.3 million business be led like that? Unless people were begging for them to do work, I don't see it.
I also caught an update on this.
The guy broke the deal and did not make the payments he should have
The guy sold the DTG printer (as posted here)
It'll probably end up in court
This is a cool show. I've been watching Shark Tank for a few years but this one just caught my attention on a flight a few months ago. Finally found it on Hulu (it's not broadcasted in my country) and have been watching a few episodes. It always follows the same recipe. On Artistic Stich, you could see it followed a different path and it didn't end on the usual "it's going to work" note.
It's a shame, really.
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By the way, who makes a 75% profit off this? That number sounds absurd to me!
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try to find "Beyond the Tank" on Hulu... I believe it's new this season.. they show what happens AFTER the businesses are 'on the tank'... (even some that didn't get a deal) -- I actually find it more interesting than Shark Tank itself.
-J
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did you find this episode on Hulu?