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CinemaJourney
  • 7/19/2025
#CinemaJourney
#The Fixer

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Fun
Transcript
00:00Across America, thousands of businesses grinding it out every single day because the ultimate
00:09American dream is owning something you built. Everything will be stationary for when Marcus
00:15comes in. Every episode, I'm meeting businesses at a crossroads. We've actually invested our
00:21entire life savings into this business. I'll pick one and go to work, but I'm not a consultant.
00:27I don't believe in handouts. I'm a capitalist. This is $15,000. Always looking for ways to
00:34make money. That's why we want you to work with us, because we're bad at math. That's a
00:38terrible reason. You should be good at math. I'll work on their people. I don't know why
00:43you're being such a dick about it. Leon, are you mad about something? No. Why the f***
00:47are you singling me out? They're processed. The execution is just like, what is it in their
00:54product? We've heard from the clients that it's not so easy. That's f***. Marcus is an
00:58amazing investor, and hopefully we'll invest in our business. In the end, we'll negotiate.
01:03My offer is $500,000 for 10% to see if the deal can be made so we both can profit.
01:10How are you? Good, Marcus. I'm Marcus. I'm Melanie O'Neill. So nice to meet you.
01:24Brian O'Neill. Brian O'Neill. Our business is called Rustic Marlin. We're a home decor lifestyle
01:29company. Beautiful. We've done $25 million in sales since we started our business. Wow.
01:34We were founded in 2012. Rustic Marlin was actually founded when the two of us were getting married,
01:40and we made a few signs for our wedding. We shipped a million dollars of product out of our two-car
01:46garage. This was really kind of the time where we felt like we made it. Everything is made right
01:51here in the USA. We have a team. We make everything in the USA. So everything over here. Yes.
01:55Made in America means a lot to us. We sell to about 1,000 boutiques throughout the U.S.
02:00What was the revenue last year? Last year, we had a little curveball. That's okay. What was it?
02:062,500. It was one of our lowest years in a while. At the moment, we're probably less about somewhere
02:11about $500,000 down. It is very, very hard to scale a business, especially one that's handcrafted
02:17like us. Is the business in really thin working capital territory right now? Yes. How thin?
02:23Maybe a couple months left. How much cash is left? A couple hundred thousand? Less than 100 grand.
02:34How much do you have invested personally? Our entire life savings, which was a very scary move.
02:40Probably about half a million dollars. Sounds like you need just some pure, flat-out
02:46wholesale orders just to get things moving. Look, you have a great business, but unfortunately today,
02:52I don't see an opportunity.
02:56But I can help you find new business through the brands that I'm involved in, which is Bed Bath,
03:01Overstock, Kirkland's, and we'd like to give you a $100,000 order, and I will advance you the money.
03:08Wow. That's unbelievable.
03:09But it's just for flag stuff. All right.
03:11We have wonderful flags. I only want flag stuff.
03:13That's incredible. Thank you.
03:13So the flag is a super big deal to me.
03:16Yes.
03:16I have problems with the law.
03:18I heard about this.
03:19That local municipalities don't like that I put up a giant flag. It's 130 feet tall in the fall.
03:25But it's something that matters to me.
03:27Yes.
03:27And as an immigrant to this country, like, I can't be any more grateful.
03:31Yes.
03:32That's awesome.
03:33But as a condition of that order...
03:35Okay.
03:36...you're going to need to go back and make some tough decisions on your cost structure.
03:40Okay.
03:40Because it is time to really get the business to make money.
03:44Yep.
03:44We're ready.
03:45It was wonderful meeting you.
03:47Wonderful meeting you, too.
03:48All right. Thanks so much.
03:49You got it.
03:50Appreciate it.
03:54Hey, hey.
03:55Hello.
03:56How are you guys doing?
03:57Good.
03:57Good. How are you?
03:58Alex Tabalik.
03:59I'm Marcus.
04:00Nice to meet you.
04:01Nice to meet you.
04:01Ashley, nice to meet you.
04:02Ashley, nice to meet you.
04:03Alexis, nice to meet you.
04:04Alexis, so let's hear it.
04:06So we are Anybag, and our bags are trash.
04:08New York City's finest trash.
04:11Each bag uses about 95 single-use plastic bags that we divert from reaching Lantzell,
04:15and we do it all right here in Manhattan.
04:17Our factory is one of the last, oldest, largest remaining leather good factories in New York City.
04:21Are you guys all family?
04:22Yes, we are.
04:23Can't you tell?
04:24My dad started in 1982.
04:26He immigrated here in the late 70s.
04:28From?
04:28From Beirut, Lebanon.
04:29That's where I'm from.
04:30Yes, I know.
04:31Okay.
04:32And the primary function of that factory is leather goods?
04:35Yes.
04:36Belts, bags, trims, components.
04:37So one night, just taking out the trash, I was like, wait, if we could do this with leather, why can't we do this with plastic?
04:44Is it broken out as a separate business?
04:46Yes, it is.
04:47It's its own corporation, I'll say.
04:48We basically contract the factory to make the product.
04:51How much revenue has Anybag done?
04:53So the first year, when we launched in 2021, we did about $40,000.
04:58Second year, we did $135,000.
05:00Excellent.
05:01Then what happened?
05:02$88,000.
05:02And currently, we're probably going to hit about the same thing, around $80,000, $88,000.
05:06So I want to see how this thing works.
05:08Show me the machine.
05:09It's just like playing the piano.
05:11You press the pedals, and it creates a shuttle.
05:14And you just pass it through.
05:15This feels so old school and awesome.
05:17This is almost ancient machine.
05:18No, but it's awesome.
05:19Yeah.
05:19I mean, currently, we could only make about six to seven yards in a single day.
05:23The new way, we just sit and watch, and it does it.
05:26And it generates 340 bags in a single day.
05:30Where's the new way?
05:31I've been building a new automated loop for the last two years.
05:34And how much is that?
05:35$120,000.
05:36That's going to allow us to really scale this.
05:38Did you design the machine?
05:40Yeah, it's a patent-pending machine.
05:41How many bags did you sell last year?
05:43Last year, we probably did about 2,500 bags.
05:46Which means that if this machine can crank out 20 times more in a day...
05:50About 30, yeah.
05:51Okay.
05:51Then the number of days in a year that this machine's going to be being used,
05:55based on your current demand, is going to drop dramatically.
05:58Do you agree with that?
05:59What's the machine going to do the rest of the time?
06:03Here's my advice to you.
06:05Your family's business is the most important business.
06:08Yeah, 100%.
06:09And it would break your dad's heart if what he worked for for 40 years,
06:13the three of you screwed up.
06:14Absolutely.
06:14And now it's probably doing less than a million.
06:17And do you have capacity to do more?
06:19Yeah.
06:19And will the loom that's coming allow you to do trim faster?
06:22Yeah.
06:22So it'll expand your margins?
06:24It should, yeah.
06:24Which will make you more competitive?
06:26Which will allow you to get back in the trim game and undercut other people?
06:29Yeah.
06:29Stop around with the bags.
06:32But to go out and get an automated loom, very brilliant of you.
06:36Because now what you're doing is you're unleveling the playing field
06:39against foreign imports and doing it right here in the U.S.
06:43But I don't see an opportunity here on the bags
06:46until your core business is doing this.
06:54Hello.
06:55Hi.
06:56Hi.
06:57Good morning.
06:58Katie, nice to meet you.
06:58Katie, nice to meet you.
06:59Nice, Jason.
07:00This is my husband.
07:00How's it going?
07:01Nice to meet you.
07:01How you doing?
07:02I'm digging your hair, by the way.
07:03I'm bringing the faux hawk back.
07:05That's what I'm doing.
07:06But we're at Perspirology.
07:10We own a dance-based and trampoline-based fitness studio.
07:14So she's a professional dancer, professional actor.
07:16Yeah.
07:16Like, that's what our training is.
07:19After we were married, we created a really kick-ass workout,
07:23bounce dance sculpt.
07:24Our workouts are in a warm room.
07:27It's highly programmed workout routines that are all musically driven.
07:31We just opened our second studio in Middletown, New Jersey.
07:34From the get-go, the goal was always to expand.
07:36But the question is how.
07:38Yeah.
07:38I want to see it in motion.
07:40Can we get to it?
07:41Yeah, I would love to see it.
07:41Okay, let's do it.
07:43So on a trampoline, the one thing we want to remember
07:44is that you want to think down
07:46versus when you're a kid and you're jumping on a trampoline.
07:49It's like, yay, yay!
07:50Our goal is down, down, down, down.
07:52So we're going to cap that beat.
07:54Down, down.
07:54Yes!
07:55Here we go, good.
07:56Here we go.
07:57Two and two, let's go.
07:58Two.
07:59In.
08:00Two.
08:01Now let's add an arm.
08:03Uh-oh.
08:03Oh!
08:04Oh!
08:05Oh!
08:06Let's go.
08:06Squat.
08:08Squat.
08:09Good.
08:09Back in the heels.
08:10Good.
08:11Yeah, weight in the heels.
08:12Fast feet.
08:13Let's go!
08:17Wait.
08:18Wait.
08:18He got off.
08:19He got off.
08:20He got off.
08:20How do the two of you assign business responsibilities?
08:28So for me, I do a lot of the training of trainers.
08:31Creating the workouts.
08:32I do a lot of the social media.
08:34And Jason does a lot of the back end work.
08:36Who does the accounting?
08:38Uh-huh.
08:38Yeah.
08:39What's your retention rate?
08:41I think our retention rate is pretty good.
08:43Our retention rate is pretty good.
08:45Retention.
08:46I mean.
08:47What is it?
08:47Is it a formula that I'm supposed to like?
08:49No, no, no.
08:49What's the conversion rate?
08:51Don't help him.
08:52Okay, I won't.
08:53The whole thing is just a math equation.
08:56That's why we want you to work with us.
08:57Because we're bad at math.
08:58That's a terrible reason.
09:00You should be good at math.
09:02Oh.
09:02You're in business.
09:03You better like math.
09:05Or don't be in business.
09:13You're in business.
09:14You better like math.
09:16Or don't be in business.
09:20How much revenue did you do last year?
09:24$438,000.
09:25It was primarily Seabright.
09:26Oh, that was all Seabright.
09:28That was all Seabright.
09:28Yeah, that was probably all Seabright.
09:29How much money in the bank today?
09:31There's $155,000 maybe.
09:36That's a lot of money.
09:37Is it?
09:38Do you owe money to banks?
09:40No.
09:40Do you owe money to creditors of any kind?
09:42No.
09:43That's awesome.
09:43So then why are you not as excited as me?
09:45That is my gripe with him.
09:46And this is another fight that we have.
09:48And I say, look, how do we expect to reach a new clientele if we're not putting ourselves out there?
09:53It does take money to grow a business.
09:55You just have to find the balance.
09:58Here's the deal.
09:58I'm going to come spend some time with you guys.
10:00I see an opportunity here.
10:02I want to say something, though.
10:03I'm telling you.
10:04Don't talk past the sale.
10:06I'm telling you straight up.
10:07Don't do it.
10:07Don't do it.
10:08The number one rule in business, once somebody says yes, don't give them a reason to change their mind.
10:15Zip it.
10:17Okay?
10:18I'll see you guys.
10:19Awesome.
10:21The biggest and brightest thing that got me to yes was Jason's tightness around money.
10:26But sometimes that's not a good thing.
10:29You could be strangling the growth of the business.
10:32That's really going to be the challenge with him.
10:34We'll see you soon.
10:34Awesome.
10:35Thank you so much.
10:36Before I run my mouth off anymore.
10:38I'm here in the seaside town of Seabright, New Jersey, which is the home of the original
10:48Perspirology location.
10:50I want to spend some time with Jason and Katie to really understand, is this a concept or is
10:56this just kind of like a one and done?
10:58Whoop!
10:59Whoop!
11:00Big jump.
11:01Here we go.
11:02I'm going to show them where to put their stuff.
11:04Amazing.
11:05All right.
11:06Let's set ourselves up.
11:07Here we go.
11:08Hey buddy.
11:09Let's take a tour of the facility.
11:11Okay.
11:12Where do you want to start?
11:13What about the laundry room?
11:14Sure.
11:15All right.
11:16So we do all our own laundry.
11:17This eats up a big chunk of time of the day.
11:19Why don't you use the towel service?
11:20Too expensive and it's by the pound.
11:24How much is it?
11:25Off the top of my head.
11:26So when you make a statement that has conviction behind it, you should expect that my next question
11:31is going to be...
11:32How much is it?
11:33Okay.
11:34Okay.
11:35Last floor.
11:36Here we go.
11:37So this would be...
11:38This is our dance cardio studio.
11:41That's it.
11:42All right.
11:43So what is your ultimate goal with this business?
11:46The goal is to franchise the bounce studio, specifically the trampoline studio, to hopefully
11:51expand to other cities.
11:53So you just want to franchise the trampoline classes only?
11:57Yeah.
11:58Yes.
11:59Got it.
12:03If Jason and Katie ultimately only want to franchise the trampoline portion of their
12:09business, then the best way for me to really study that is to visit their Middletown location
12:14that only has trampolines.
12:16I've asked Sari, one of their instructors, to meet me there so I can better understand
12:20the concept they're looking to grow.
12:24Hey.
12:25Hi.
12:26This is where the showroom is?
12:27That's where the bounce studio is.
12:28There's one person in the class.
12:34Add the arm.
12:35I don't know how this place stays open.
12:38I don't know either.
12:39Right.
12:40Left.
12:41Yes.
12:43It almost feels a little bit more like a concept.
12:46When I come here, I feel like I'm gonna...
12:47You know exactly what it is.
12:48Check in and I'm gonna work out and I'm gonna go.
12:50I like that it's compact.
12:51It's got less fixed costs.
12:53If you were offered an opportunity to own one of these, would you do it?
13:00No.
13:02I don't know if their concept is cool enough to be branded.
13:06But if I was doing this for the money, I would've been gone a long time ago.
13:11Why?
13:12They're the lowest paying studio in the area.
13:15What do they pay?
13:17I'm getting $40 an hour on the books.
13:20And what do other studios pay $60?
13:21They start at $65.
13:24Interesting.
13:26Let's go somewhere else just because I don't want to interrupt that class.
13:29Yeah.
13:30Okay.
13:35What would you do to make it feel more cool?
13:38I would change the colors.
13:40Of the whole brand?
13:41Of the whole brand.
13:43There's nothing boutique-y about it.
13:44There's nothing cool about it.
13:47Whatever they're offering is sinking next to studios that stole their crap and are doing it horribly.
13:54And still have sold out classes and are making an absolute killing.
13:59It's the aesthetics and the vibe and the merch is cool.
14:01And who doesn't want a cool sweatshirt?
14:02There's no way this place survives if something doesn't change.
14:09Let's go see if this class is over.
14:10It is.
14:15I'll see you later.
14:16Thanks.
14:17Bye.
14:18Oh, hey.
14:19Is it normally this dead here?
14:21We're new here.
14:22We're...
14:23How long you been here?
14:25This location, 10 months.
14:27Seabright, 10 years.
14:29How much money does this lose a month?
14:31$4,160.
14:33You're on pace to lose $50,000 a year here.
14:35How much is the rent here?
14:37$4,500.
14:38How long is your lease?
14:3910 years.
14:40And are you on the hook for it?
14:41Yeah.
14:42So if you close it, you still have to pay?
14:45I don't know what the out clause is.
14:48We're not gonna use the out clause.
14:49We're gonna make it work.
14:53But what if you keep losing $50,000 a year?
14:56We're not going to.
14:57We're gonna make it work.
14:59We just need more people in here.
15:03If the business is on pace to lose $50,000, I have one job.
15:06Okay.
15:07And that's to prevent a disaster.
15:08Okay.
15:09Here's what I'd like to do.
15:10I think we need a focus group.
15:11Okay.
15:12To understand what people really think specifically about the trampoline classes.
15:18Because there's something here that's not clicking.
15:21Okay.
15:23I am right off the bat extremely frustrated.
15:25Because first thing he says to me is it's completely empty.
15:29You're gonna lose $50,000 a year.
15:32Okay, not what I would maybe call helpful.
15:34And now to get a focus group.
15:36I'm of course nervous about it, getting different people's opinions.
15:39That's not my forte.
15:40Look, I wanted to set up a focus group because I love hearing people's feedback about specifically the trampoline classes.
15:53But I have a hidden agenda.
15:54I also want to see how Katie and Jason take that feedback.
15:58Because if they can't take constructive feedback from these folks, how are they ever going to sell one of these franchises?
16:04Hi.
16:05Hi.
16:06Hi.
16:07Jason.
16:08He's holding towels.
16:10He's in the laundry room?
16:11Yes.
16:12Hey, Jason.
16:13Yo.
16:14Here, come here.
16:15The purpose of today is to get a very pure and clean view on the experience.
16:22During this process, ignore me the whole time.
16:24Oh, yeah.
16:25Don't worry.
16:26Don't worry.
16:27I will.
16:28Thank you so much for coming.
16:29Thank you so much for coming.
16:30Okay.
16:31Everybody grab one weight.
16:33We will only be using one weight in this class today.
16:36Halfway through, I'm going to switch and Jason is going to come in and take over and he's going to kick your ass too.
16:41Okay.
16:42Let's have some fun.
16:45All right, guys.
16:46Out.
16:47In.
16:48Back feet.
16:49Let's go.
16:50Shoulders down.
16:51Come on.
16:52You're doing great.
16:53Come on.
16:54Time for a quick floor series.
16:55Five more, please.
16:56Five.
16:58Four.
16:59Three.
17:00Two.
17:01Step it back.
17:02Pull it in.
17:03Woo!
17:04I'm taking over.
17:05I'm taking over.
17:06All right.
17:07Let's bring it down.
17:08Blank jack.
17:09Come on.
17:10One.
17:11Two.
17:12And left.
17:13Bring it to the middle.
17:15Don't drop.
17:16Yeah.
17:17Great job.
17:18Everybody.
17:19Very good.
17:20Okay.
17:21Everybody take a minute to just collect yourself.
17:27That look okay?
17:28Yeah.
17:29First of all, thank you guys for coming.
17:31Your goal is to give them honest feedback and honest feedback makes people better.
17:35How many people have never been here before?
17:38Did you enjoy it?
17:39It's great.
17:40I like it a lot.
17:41I'm just beat.
17:42This is really interesting actually.
17:45This was just a portion of the class.
17:47If you had to go through the full class, would you see yourself coming back?
17:53Full class, no.
17:56Sir in the back.
17:57Obviously the moves are new.
17:58I've never been on a trampoline.
17:59I couldn't have felt more awkward, you know, if I had set out to try and feel more awkward.
18:06I don't like the intensity.
18:08I would like it if it was funner.
18:11Like what I thought a trampoline would be like, yay, fun.
18:14Oh my God.
18:15We basically did three moves.
18:17And I thought the double jumping jack was like the most like, woohoo, here we go, tunes.
18:22Oh my God.
18:23Oh.
18:24There's also a dance class up on the third floor.
18:30Would you try something?
18:31Totally.
18:32You would totally try something?
18:33That would totally be more up my alley.
18:35Thank you so much guys.
18:36I appreciate it.
18:37I'm most defensive at this gal here.
18:38I don't like the intensity.
18:39But what if she turns out to be the highest recurring longest staying dance person.
18:44Exactly.
18:45Retention.
18:46Retention.
18:47Retention.
18:48Retention.
18:49Retention.
18:50Retention.
18:51Retention.
18:52Retention.
18:53Oh my God.
18:54Oh my God.
18:55Oh my God.
18:56Oh my God.
18:57Oh.
18:58There's also a dance class up on the third floor.
19:00Would you try something?
19:01Totally.
19:02You would totally try something?
19:03That would totally be more up my alley.
19:04Thank you so much guys.
19:05Exactly.
19:06Retention.
19:07Retention.
19:08Retention.
19:09That's the only thing that matters in business.
19:10The biggest learning for me in this whole process of the focus group is that the trampoline
19:15classes aren't going to be enough to drive revenue and increase retention.
19:20As you could tell, not everybody was really into it.
19:22But if they can add their dance classes and sculpt classes, they'll have multiple opportunities
19:27to capture revenue and increase retention.
19:30So I think part of it is packaging what you do and figuring out what else you do other
19:35than this.
19:36Correct.
19:37Because retention is a function of diversity.
19:39Thank you so much.
19:40Great job today, by the way.
19:42The last time I saw you, we had the focus group.
19:50Yeah.
19:51And it was a lot to take in.
19:54Totally.
19:55I really thought that entire group kicked ass.
19:57But I wanted them to feel successful, not feel beaten down afterwards.
20:01So I think that's partially why I felt bad about it, because the clients felt bad.
20:06And sometimes when you feel so beat down about things, you can either throw in the towel
20:11and give up, or you can dig in and say what needs to be fixed.
20:14And that's where I am right now.
20:18Jason, would it be possible for me to spend a few minutes with Katie?
20:22Sure.
20:23If that's okay with you.
20:24Mm-hmm.
20:25You want to sit?
20:27Yeah.
20:28Um, I feel like so freaking tired.
20:33I am.
20:34I push and push and push because I believe in what we're doing.
20:39You feel like it's all falling on you?
20:41Oh, yeah.
20:42Yeah, absolutely.
20:43For instance, I said, Jason, put a reminder in your phone at 8 a.m.
20:47You need this to happen and remind you to do this and this today.
20:50Write it down.
20:51He goes, eh, all up here.
20:53I go, it's not up there.
20:54I just want stuff.
20:57Stuff to get done.
20:59This location feels like it's on the verge of not being open anymore.
21:06I believe that we should be investing, like, serious money into, like, a marketing campaign.
21:11The problem is, Jason is less likely to want to spend money.
21:16But I do see this being a viable thing that could be so cool.
21:21I think that singularly, the bounce concept will struggle to build enough repetitive visits.
21:31I think that in order for this to work, you're going to have to include bounce, dance, and sculpt.
21:37I would actually split the room.
21:39Okay.
21:40And I would have the ability not to have two classes at the same time, but to have a mat offering, a dance offering.
21:47And then figure out how to make the heat factor really what the concept is.
21:53Right.
21:54Bounce, dance, sculpt.
21:56Mm-hmm.
21:57You could take a long class of one discipline.
21:59You could take a combination of two disciplines.
22:02Or you could take a combination of all three disciplines.
22:05Woo!
22:06I like it.
22:07A lot, actually.
22:08And I like the fact that someone could do something different every day.
22:11You know what?
22:12Why is that important?
22:13Because it keeps them coming back.
22:15I feel a little bit more hopeful with the ideas that we spoke about and the scalability of it.
22:21Jason?
22:22Yeah?
22:24Your wife and I have had a great conversation.
22:27If you have interest in franchising, you have to only use this one.
22:32Middleton.
22:33Mm-hmm.
22:34We're going to sit out, just you and I.
22:36Uh-huh.
22:37We're going to open up your QuickBooks account, and you're going to start to record every expense
22:41and every bit of revenue, because in order to sell a franchise,
22:44the number one thing you have to hand somebody is the financials.
22:48Can I request Katie be there, too?
22:50No.
22:51Well, here's the reason why.
22:52Because everything can't fall on her.
22:53Okay.
22:58You don't know what this location did versus the other location.
23:03Right.
23:04So we want to definitely break those two out into separate locations.
23:07Can you run the payroll for two different locations?
23:09You can.
23:10Okay, I've not been doing that.
23:13And if you do them separately, you can make better decisions about what's working and not working.
23:18The QuickBooks platform makes it really easy.
23:21Oh, cool.
23:22Okay.
23:23Do you have it on your phone now?
23:24Oh, you should.
23:25Okay.
23:26Okay.
23:27I will do that.
23:28We're home, and Jason is the tough job of working on a home site.
23:35Yeah.
23:36While I have an even tougher job with our daughter building forts.
23:41Yeah.
23:42Serious work.
23:43Serious work.
23:44Look, I'm encouraged that we're making progress as it relates to their process, and we're expanding their product.
23:55But for me to invest, there's going to have to be real development around the people side of things, specifically Jason.
24:02This is a partnership 50-50 in the business.
24:05Mm-hmm.
24:06I understand what she brings to the table.
24:08It's not clear to me what you bring on a daily basis to the table that's moving the business forward.
24:14I'm company facilitator.
24:15What does that mean?
24:16It means I do everything.
24:18Like, let's name it.
24:19Okay.
24:20You want me to name it?
24:21I'll name it.
24:22I do the payroll.
24:23Okay.
24:24That's awesome.
24:25Okay.
24:26I do all the laundry.
24:27I do all the cleaning.
24:28I want you to think about what that sounds like.
24:30I'm trying to create a concept to build generational wealth for my family.
24:35Mm-hmm.
24:36But I'm still going to put laundry at the second most important thing that I do.
24:41Let's keep going, okay?
24:43I can't keep going.
24:44You're marginalizing your value.
24:47Does the guilt come from the fact that you recognize the value that your wife and partner brings to the organization, and you want to make sure that you're doing your part?
24:56Yeah, sure.
24:57Do something that's going to change the repetitious nature of which you function today.
25:03Okay.
25:04So, let's pretend I give the laundry and the cleaning to other people.
25:11What should I be doing?
25:13Then you would work on developing the business and your knowledge of the core concept to grow the company, not to keep the towels washed.
25:24Okay.
25:26I don't really have any education in growing a business.
25:29Sure you do.
25:30You just did it for 10 years.
25:32So, you know what kind of education you have?
25:34Real life experience.
25:37I'm heading over to meet with Jason and Katie at a studio that isn't theirs in New York City.
25:55I wanted to take them out of their own environment, but I've asked them to bring along their trainers as well.
26:00I want Katie to walk them through all the changes we're working on, and what are some other issues that need to be resolved at the exact same time?
26:08Good morning.
26:09Hey.
26:10All right.
26:11So, part of the reason why I wanted to bring you into the city and thank you for making the journey is that I felt like for us to have some open dialogue, we needed to be in a neutral place.
26:23The challenge that I have with the current construct is that Middletown is empty and loses $50,000 a year.
26:34Guys, right now Middletown only offers bounce classes, and it's just, it's just not enough.
26:39So, the right side of the room will turn into a dance floor.
26:43Nice.
26:44So that literally, you now have bounce, dance, sculpt underneath the overarching theme of heat.
26:52Cool.
26:53Which would, in the end, hopefully get more people in the door.
26:57All right.
26:58So now, Sari, you said to me that you believe that the instructor fee is below market.
27:04Yes.
27:05Great.
27:06Okay.
27:07So currently, how are you all being paid for your time?
27:09If we teach, we get paid for the class.
27:12If we don't teach.
27:13And whether there's ten people or two people?
27:14It doesn't matter how many people.
27:15So what's your motivation to bring people to your class?
27:18There's none.
27:19There's none.
27:20Yeah.
27:21Should there be?
27:23We have talked about this.
27:25I don't love to be at competition with, like, other instructors, because as it is, there is already some competition that exists.
27:33Like, no, you should go take my class. Like, don't take that person's class.
27:37You feel like that's happening a lot?
27:38Yes.
27:39Like me?
27:40Yes.
27:41There's definitely times, let's just say that, like, but I've...
27:46Spit it out.
27:47We don't have time.
27:48Yeah, just say it.
27:49So we've heard from the clients that it's not so easy to sway from their routines because they feel uncomfortable.
27:54Because of me.
27:55Because of me.
27:56That's...
27:57That's...
27:58That's...
27:59That's...
28:00That's...
28:01That's...
28:02You should always come to me to talk.
28:03And you'll be less defensive going forward.
28:04I will, but I will be. I'm not defensive in person, I promise. Right? Am I?
28:08My point is, is that they need to make more money and you need to make more money. That's why the compensation plan has to change.
28:14Semi-fix.
28:15Semi-fix.
28:16Semi-fix.
28:17Pay plans.
28:18Which is, they get a base rate for coming and then they get an incremental rate for building.
28:21We would love that for them.
28:22It helps me, it helps you, we all grow together and the base of the tree gets bigger and stronger and grows bigger.
28:44I love it.
28:46i love it so i asked somebody to come here today that i think could be really really helpful
28:53in helping you guys develop really who is this person come on in
29:07i love amanda klutz i was so excited to see her amanda klutz is a fitness entrepreneur
29:14she's a celebrity host and she also created the ak rope and proper supplements
29:20listen i've been on both sides of this table i've been an instructor at a studio and i've also been
29:28you where i have a studio and no one's coming unless i'm teaching and it's hard you can be the
29:35face but then you're the face and everyone's willing to come to your class if you truly don't
29:41want to do every single class and not have anyone else come through your door you have to take a
29:47step back oh i don't think i physically physically i need the workout it's tough yeah business is tough
29:54yeah welcome to business yeah yeah you can do this i i know you can letting go of the reins
30:00is definitely something that i need to work on but i recognize that and i'm up for the challenge
30:05and i'm hoping that it'll help me free up some time to work on the business build things and
30:08create a better situation for all of us all right we got work to do thank you guys
30:16now that katie and jason understand the internal changes that are necessary i think they need to
30:22also go through the process of changing the way they present perspirology to the consumer so i'm
30:27taking them to jll a design firm that i use for all of my businesses my biggest fear is that jason and
30:33katie aren't really ready to change but if they're not ready to change i'm not sure why any of us are
30:39wasting our time well hello hi how's it going again don't you love coming to places where you have no
30:46idea what's about to happen yes getting more used to it i guess as we keep going along so the reason i
30:51brought you here today this company that you're at is called jll they take retail and experiential
30:58concepts and they reimagine the look reimagine everything about it okay okay you want to meet
31:06these wonderful folks how are you hi guys you guys remember amanda okay so we're going to take
31:14you back a minute to what is today okay okay i think you look clean you look organized you look
31:22professional professional yeah but if you want to take this to the next level then we have to get
31:27something that's memorable and it's thoughtful we're going to take you in a different direction
31:31here okay here is the new perspirology oh i love that we took your tag to just bounce dance sculpt
31:40bounce dance sculpt three rings three absolutely disciplines the trampoline is circle yep yep
31:47so let's go inside so walking in we'd like to reinforce who you are and tell your story this feels warm
31:55inviting but like not clinical it feels like a workout as soon as you walk in here you know
32:01i'm gonna get a workout i'm gonna sweat and we want to bring that energy to the space itself
32:08we've cut your new logo into it i love that i gotta be honest i thought i was gonna hate it i think
32:14it's fantastic hold on a second as a business owner why is it that you enter situations with the
32:22expectation that you're not gonna like something sometimes it's hard to wrap your mind around that's
32:27all it's not on you guys the current concept in that location isn't quite hitting the mark yes yes
32:34correct she's frustrated she is up to here so you got to stop it already
32:40if you're gonna be in business you have to take chances i would rather you be more fearful
32:58of not changing i completely agree with everything you guys are saying i want in i'm just nervous okay
33:06i will tell you that you guys crushed it i love it it's beautiful thank you so much thank you so
33:16much i feel like a wave of relief flooded me i'm very excited about what they put together and it was
33:24beautiful it was beautiful something that we could never do ourselves did you like the concept
33:29i think it's fantastic it just seems like a huge task put in front of us we're flipping something
33:39that we've been growing and building we're we're giving it a complete 180 that's an intimidating thing
33:46we've put 11 years of blood sweat and tears into this you have to tell me that i know that i'm just
33:52nervous that maybe it gets bigger than what we can handle but i am all in or else i wouldn't be here
33:59look i'm ready to take the risk because i certainly don't want to keep doing it the way we're doing it
34:11now that katie and jason have seen the refresh and new concept of the middletown location
34:16i want to sit down and find out if there's a deal to be done here hi how are you good to see you
34:22great to see you how they behave in this particular meeting is going to determine am i putting money in
34:28or are they going to be on their own i took a big step this past week in a training sense i switched our
34:34schedule around taking myself off the main prime time spots to give trainers those prime time spots
34:41it has gone fantastically well and the trainers were so excited you've empowered them yes so where are you at
34:49in terms of revamping middletown we did bring our quotes that we've gotten and things like that and
34:55we actually itemized kind of everything what we're listing out is a business in a box 93 000 of those
35:03things you already have 19 000 of them done the mirror's already there the rubber floor is already
35:10there we'll say 75 grand so what do you guys how can i help what do you want from me if you were open
35:17to it we would really love to partner with you on getting this beta testing going in middletown i'm
35:23curious about something though as a businessman why would you be interested in partnering with us
35:32is this your pitch no no you asked him to talk did you really want to talk i'm literally just curious
35:37like what do you see in us i i don't know i have zero interest in investing in somebody who doesn't have
35:48confidence i want somebody who believes that they are the right man or woman for the job okay i want
35:57him to try it again i would love him to try it again because that sucked like that sucked
36:04your wife just told you that your presentation sucked
36:10i'm putting the ball in your court jason i want you to invest in us why because we work our ass i want
36:17to know about it from you i know about her i work my ass off i will not stop i won't rest this
36:23workout this business has changed my life and i want to bring that to other people and i think if
36:29you join us we could do that that is what i better see and she better see every single day
36:40there's 75 000 of cash that's needed and there's a hundred percent of the concept of the equity on the
36:45table what do you want to do if we could have your help with the build out of the additional 75
36:52for this to see where it can go get the full scope of what what do i get you get that's a great
36:57question three classes oh jason i believe that the main concept should still remain in our controlling
37:04power at 51 and you controlling it at 49. is that your offer well hold on a second no please just go
37:12just be set i think we should round it up a little bit i think we should round it to 80. nice round number
37:28is that your offer well hold on a second no please just go just be set i think we should round it up
37:34a little bit i think we should round it to 80. nice round number
37:44no i'll do 50 000 for 25 percent really 75 000 for 49 is a better deal on paper
37:55but i have a very specific reason for doing it this way okay i want you to write a check too
38:01i want you to invest because i know it pains you to do it we can absolutely invest that 25 000 easily
38:08okay why is there sweat dripping no there's no sweat there's no sweat i will do it i will do it i'm
38:14going to get you some we'll call it continuing education and training at salesforce to understand
38:19every single customer who they are how to communicate with them okay i love that thank you
38:24it's a wonderful deal thank you thank you thank you thank you we're super excited that marcus is
38:35choosing to work with us and figure out how to make this this beta testing model in middletown work
38:41and hopefully expand from there okay guys we'll see you bye marcus thank you marcus talked a lot about
38:48me being more open-minded and taking more risks well i think me writing that check is a great
38:53example of taking a risk being more open-minded and being confident in the business because i know
39:00what it can do i know what it can do how do you think i log this all right guys well i'm currently
39:13in middletown right now and there's a lot going on we've got spackle everywhere we've got boxes
39:19starting to feel like it's all coming together middletown is in the middle of a rebranding i'm
39:25really excited for everyone to see it i'm heading to salesforce tower because marcus thinks they can
39:30help me evolve and take a step towards the future jason patrick patrick my commitment to jason and katie
39:38was to not only help them with their business but also help them develop as business entrepreneurs
39:43and one of the keys to that is getting one-on-one training so i've called in a special favor to my
39:48friends at salesforce what salesforce is going to show him is how to stand out in a crowd
39:54particularly in the very competitive fitness space right now the main goal is to get new customers
40:00to our second location okay product like salesforce what that's going to do is when you're pushing
40:05those ads out you're going to start to see which ones are performing better so what are you going
40:09to do put more money in the channel that works that works right the fundamental thing to understand
40:13about salesforce is you have a customer record you can type in your customer tiffany morgan and here
40:18we can see this record of everything about tiffany all of her classes kind of come in here as well
40:22i definitely think even just those two things will be light years ahead of what i'm doing right now
40:29which is hey tell your friends about the the promo we've got i think marcus will be impressed with
40:36what i learned here today to show him hey look you can have confidence in me yes i may have started
40:41down here but this you know there's nowhere to go but up i actually feel like this is these are some
40:47attainable goals amazing
40:54i'm back in new jersey at perspirology's middletown location now this is the one that was struggling
41:00and we developed a whole new concept to reboot and relaunch the business we're going to see if they
41:05actually listened and what the results are
41:08all that's going to be right now holy cow i mean really it changed everything it was a big deal
41:15for the lobby to feel inviting color palette came out great i like what you did with the merge the
41:22merge came out great sold the shirt today i get a lot of compliments on the hoodie actually can i look
41:27in here come on it you want to go first
41:37now these lights can be changed so you could change the colors yeah i mean who's doing all
41:43the laundry not me we do have a receptionist so that person will do it i couldn't be more proud
41:51of jason he did everything he said he was going to do and then some and as i look around i can
41:57see the pride in his face he's actually even got somebody else to do the laundry now
42:04hi how are you how are you when you see this today what has changed the most in your mind
42:11there's a few things that happened the growth of our instructors as soon as i kind of let go of the
42:15reins their confidence level has skyrocketed the other thing is jason is taking more initiative
42:21and doing a lot more on his own now that katie and jason have totally transformed their
42:27business and themselves i feel like the table has been set for a very bright future including
42:34getting to profitability and once that happens the opportunity to franchise this concept across the
42:40country well the sky's the limit thank you congratulations thanks for coming on this
42:45journey with us okay our parents are immigrants so we're first generation americans we own a company
43:00called escape room new jersey so what are we doing make you out liam