- today
The Fixer Season 1 Episode 1
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00:00Across America, thousands of businesses grinding it out every single day because the ultimate
00:09American dream is owning something you build. 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
00:44you'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?
00:53And their product. We've heard from the clients that it's not so easy. That's f***. Marcus
00:58is an amazing 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 a 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
01:40married, and we made a few signs for our wedding. We shipped a million dollars of product out
01:45of our two-car garage. This was really kind of the time where we felt like we made it.
01:50Everything's made right here in the USA. We have a team. We have a team. We make everything
01:52in the USA. So everything over here. Yes. Made in America means a lot to us. We sell to about
01:581,000 boutiques throughout the U.S. What was the revenue last year?
02:01Last 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.
02:09At the moment, we're probably less about somewhere about $500,000 down. It is very,
02:14very hard to scale a business, especially one that's handcrafted like us.
02:18Is the business in really thin working capital territory right now?
02:22Yes. How thin?
02:24Maybe a couple months left. How much cash is left? A couple hundred thousand?
02:29Less than $100,000.
02:35How much do you have invested personally?
02:37Our entire life savings, which was a very scary move.
02:40Probably about a half a million dollars.
02:42Sounds like you need just some pure, flat-out wholesale orders just to get things moving.
02:49Look, you have a great business, but unfortunately today, I don't see an opportunity.
02:54But 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.
03:10All right.
03:11All right.
03:11So the flag is a super big deal to me.
03:16Yes.
03:17I have problems with the law.
03:18I heard about this.
03:19The local municipalities don't like that I put up a giant flag.
03:23It's 130 feet tall in the fall.
03:25But it's something that matters to me.
03:27Yes.
03:28And as an immigrant to this country, like, I can't be any more grateful.
03:31Yes.
03:32That's awesome.
03:32But as a condition of that order, 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.
03:49Thanks so much.
03:49You got it.
03:50Appreciate it.
03:54Hey, hey.
03:55Hello.
03:56How are you guys doing?
03:57Good.
03:57Good.
03:57How are you?
03:58Alex Sabalik.
03:59I'm Marcus.
04:00Nice to meet you.
04:01Nice to meet you.
04:01Ashley.
04:02Nice to meet you.
04:02Ashley.
04:03Nice to meet you.
04:03Alexis.
04:04Nice to meet you.
04:04Alexis.
04:05So let's hear it.
04:06So we are Anybag, and our bags are trash.
04:09New 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.
04:22Are you guys all family?
04:23Yes, 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.
04:31And the primary function of that factory is leather goods?
04:35Yes.
04:36Belts, bags, trims, components.
04:38So one night, just taking out the trash, I was like, wait, if we could do this with leather,
04:42why 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?
05:01Uh, $88,000, $88,000, and currently, we're probably going to hit about the same thing,
05:05around $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, and 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.
05:20I 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 look 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 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.
06:55Hello.
06:55Hi.
06:56Hey.
06:57Good morning.
06:58Katie, nice to meet you.
06:58Katie, nice to meet you.
06:59Hey, Jason.
07:00How's it going?
07:00Jason, nice 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.
07:17Like, 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.
07:37But 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.
07:42Okay, 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.
07:55Good.
07:56Here we go.
07:57Two and two.
07:57Let's go.
07:58Two.
07:59In.
07:59Two.
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.
08:20Yeah!
08:24How do the two of you assign business responsibilities?
08:27So, for me, I do a lot of the training of trainers, creating the workouts.
08:32I do a lot of the social media, and 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, I...
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.
08:51Don't help him.
08:52The whole thing is just a math equation.
08:56That's why we want you to work with us, because 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?
09:22Four hundred and thirty-eight thousand?
09:25It was primarily Seabright.
09:26Oh, that was all Seabright.
09:28Yeah, that was probably all Seabright.
09:29How much money in the bank today?
09:31There's a hundred and fifty-five thousand, maybe?
09:36That's a lot of money.
09:37Is it?
09:38Do you owe money to banks?
09:40No.
09:40No.
09:40Do you owe money to creditors of any kind?
09:43That's awesome.
09:43So then why are you not as excited as me?
09:45That is my gripe with him, and this is another fight that we have.
09:48And I say, look, how do we expect to reach a new clientele
09:51if 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,
10:11don't give them a reason to change their mind.
10:15Zip it.
10:16Okay, I'll see you guys.
10:19Awesome.
10:21The biggest and brightest thing that got me to yes
10:23was 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,
10:47which is the home of the original Perspirology location.
10:50I want to spend some time with Jason and Katie
10:52to really understand, is this a concept
10:55or is this just kind of like a one and done?
10:59Woo!
11:00Big jump.
11:01Here we go.
11:02I'm going to show them where to put their stuff.
11:04Amazing.
11:04All right, let's psych ourselves up.
11:08Here we go.
11:09Hey, buddy.
11:10Let's take a tour of the facility.
11:11Okay.
11:12Where do you want to start?
11:13What about the laundry room?
11:14Sure.
11:14All right.
11:15So 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?
11:22Too expensive.
11:23And it's by the pound.
11:25I don't know, off the top of my head.
11:26So when you make a statement that has conviction behind it,
11:29you should expect that my next question is going to be...
11:31How much is it?
11:32Right.
11:33Okay.
11:34Okay.
11:35Last floor.
11:35Here we go.
11:36Now, so this would be...
11:38This is our dance cardio studio.
11:41That's it.
11:43All right.
11:43So what is your ultimate goal with this business?
11:46The goal is to franchise the bounce studio,
11:48specifically the trampoline studio,
11:50to hopefully expand to other cities.
11:53So you just want to franchise the trampoline classes only?
11:57Yeah.
11:58Yes.
11:58Got it.
11:59If Jason and Katie ultimately only want to franchise
12:07the trampoline portion of their business,
12:09then the best way for me to really study that
12:11is to visit their Middletown location
12:13that only has trampolines.
12:15I've asked Sari, one of their instructors,
12:17to meet me there
12:18so I can better understand the concept
12:20they're looking to grow.
12:21Hey.
12:24Hi.
12:25This is where the showroom is?
12:26That's where the bounce studio is.
12:31There'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.
12:40Yes.
12:41It almost feels a little bit more like a concept.
12:46When I come here, I feel like I'm going to check in
12:49and I'm going to work out and I'm going to go.
12:50I like that it's compact.
12:52It's got less fixed costs.
12:53If you were offered an opportunity to own one of these,
12:57would you do it?
13:00No.
13:01I don't know if their concept is cool enough to be branded,
13:06but if I was doing this for the money,
13:08I would have been gone a long time ago.
13:11Why?
13:12They're the lowest-paying studio in the area.
13:16What do they pay?
13:17I'm getting $40 an hour on the books.
13:19And what do other studios pay, $60?
13:21They start at $65.
13:24Interesting.
13:25Okay, let's go somewhere else
13:27just because I don't want to interrupt that class.
13:29Yeah.
13:30Okay.
13:34What would you do to make it feel more cool?
13:36I would change the colors.
13:40Of the whole brand?
13:41Of the whole brand.
13:42There's nothing boutique-y about it.
13:45There's nothing cool about it.
13:47Whatever they're offering is sinking next to studios
13:50that stole their crap
13:51and are doing it horribly
13:53and still have sold out classes
13:57and 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?
14:03There's no way this place survives
14:07if 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.
14:16Bye.
14:18Oh, hey.
14:19Is it normally this dead here?
14:21We're new here.
14:22How long you been here?
14:25This location, 10 months.
14:26Seabright, 10 years.
14:29How much money does this lose a month?
14:31$4,160.
14:32You're on pace to lose $50,000 a year here.
14:35How much is the rent here?
14:36$4,500.
14:37How long is your lease?
14:3810 years.
14:39And are you on the hook for it?
14:41Yeah.
14:41The lease?
14:42Yeah.
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 going to use the out clause.
14:49We're going to make it work.
14:53But what if you keep losing $50,000 a year?
14:56We're not going to.
14:56We're going to make it work.
14:59We just need more people in here.
15:02If the business is on pace to lose $50,000,
15:05I have one job.
15:06Okay.
15:06And 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.
15:12Okay.
15:12To understand what people really think
15:15specifically about the trampoline classes.
15:18Because there's something here that's not clicking.
15:21Okay.
15:22I am right off the bat extremely frustrated
15:25because first thing he says to me is,
15:28it's completely empty.
15:29You're going to lose $50,000 a year.
15:32Okay.
15:32Not what I would maybe call helpful.
15:34And now to get a focus group.
15:36I'm, of course, nervous about it.
15:38Getting different people's opinions.
15:39That's not my forte.
15:42Look, I wanted to set up a focus group
15:48because I love hearing people's feedback
15:50about specifically the trampoline classes.
15:53But I have a hidden agenda.
15:54I also want to see how Katie and Jason
15:56take that feedback.
15:58Because if they can't take constructive feedback
16:00from these folks,
16:02how are they ever going to sell
16:03one of these franchises?
16:04Hi.
16:05Hi.
16:07Jason.
16:08He's holding towels.
16:09He's in the laundry room?
16:11Yes.
16:12Hey, Jason.
16:13Yo.
16:13Here, come here.
16:14So the purpose of today
16:16is to get a very pure and clean view
16:20on the experience.
16:22During this process,
16:23ignore me the whole time.
16:24Oh, yeah.
16:25Don't worry.
16:25Don't worry.
16:26I will.
16:28Thank you so much for coming.
16:30Okay.
16:31Everybody grab one weight.
16:33We will only be using one weight
16:35in this class today.
16:36Halfway through,
16:37I'm going to switch
16:38and Jason is going to come in
16:39and take over
16:39and he's going to kick your ass too.
16:41Okay, let's have some fun.
16:44All right, guys.
16:46Out, in, backseat.
16:47Let's go.
16:49Shoulders down.
16:50Come on.
16:51You're doing great.
16:51Come on.
16:52Time for a quick floor series.
16:54Five more, please.
16:55Five.
16:57Four.
16:58Three.
16:59Two.
17:00Step it back.
17:01Pull it in.
17:02Woo!
17:03All right, I'm taking over.
17:04I'm taking over.
17:06All right, let's bring it down.
17:08Plank jack.
17:08Come on.
17:09Four.
17:10One.
17:11And left.
17:12Bring it to the middle.
17:15Don't drop.
17:16Yeah.
17:17Great job.
17:18Everybody, very good.
17:21Okay, everybody take a minute
17:22to just collect yourself.
17:24Did that look okay?
17:28Yeah.
17:28First of all, thank you guys for coming.
17:31Your goal is to give them honest feedback,
17:33and honest feedback makes people better.
17:35How many people have never been here before?
17:38Did you enjoy it?
17:40It'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,
17:50would 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,
18:01you 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.
18:13Like, yay, funner.
18:15Oh, my God.
18:15Oh, we basically did three moves.
18:18And I thought the double jumping jack
18:20was like the most, like,
18:21ooh, here we go, tunes.
18:23Oh, my God.
18:23We basically did three moves.
18:32And I thought the double jumping jack
18:34was like the most, like, ooh, here we go, tunes.
18:37Oh, my God.
18:38Oh.
18:38There's also a dance class up on the third floor.
18:43Would you try something?
18:45Totally.
18:45You would totally try something?
18:46That would totally be more up my alley.
18:48Thank you so much, guys.
18:50I appreciate it.
18:53I'm most defensive at this gal here.
18:57I don't like the intensity.
18:59But what if she turns out to be
19:01the highest recurring, longest staying dance person?
19:05Exactly.
19:05Retention, retention, retention.
19:08That's the only thing that matters in business.
19:10The biggest learning for me
19:12in this whole process of the focus group
19:14is that the trampoline classes
19:16aren't going to be enough
19:17to drive revenue and increase retention.
19:20As you can tell, not everybody was really into it.
19:22But if they can add their dance classes
19:24and sculpt classes,
19:25they'll have multiple opportunities
19:27to capture revenue and increase retention.
19:30So I think part of it is packaging what you do
19:33and figuring out what else you do other than this
19:36because retention is a function of diversity.
19:40Thank you so much.
19:40Great job today, by the way.
19:48The last time I saw you, we had the focus group.
19:50Yeah.
19:51And it was a lot to take in, I would assume.
19:54Totally.
19:55I really thought that entire group kicked ass.
19:57But I wanted them to feel successful,
19:59not feel beaten down afterwards.
20:01So I think that's partially why I felt bad about it
20:04because the clients felt bad.
20:05And sometimes when you feel so beat down about things,
20:09you can either throw in the towel and give up
20:11or 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
20:19for me to spend a few minutes with Katie?
20:22Sure.
20:23If that's okay with you.
20:25Mm-hmm.
20:26You want to sit?
20:27Yeah.
20:27Um, I feel, like, so freaking tired.
20:33I am.
20:35I push and push and push
20:37because I believe in what we're doing.
20:40You feel like it's all falling on you?
20:41Oh, yeah.
20:42Yeah, absolutely.
20:44For instance, I said, Jason,
20:45put a reminder in your phone at 8 a.m.
20:47You need this to happen
20:48and remind you to do this and this today.
20:50Write it down.
20:52He goes, eh, all up here.
20:53I go, it's not up there.
20:54I just want stuff to get done.
20:59This location feels like it's on the verge
21:03of not being open anymore.
21:06I believe that we should be investing, like,
21:08serious money into, like, a marketing campaign.
21:11The problem is Jason is less likely
21:14to want to spend money.
21:15But I do see this being a viable thing
21:19that could be so cool.
21:20I think that singularly,
21:25the bounce concept
21:26will struggle to build
21:28enough repetitive visits.
21:31I think that in order for this to work,
21:33you're going to have to include
21:35bounce, dance, and sculpt.
21:37I would actually split the room.
21:39Okay.
21:40And I would have the ability
21:42not to have two classes at the same time,
21:44but to have a mat offering,
21:46a dance offering,
21:47and then figure out
21:48how to make the heat factor
21:50really what the concept is.
21:53Right.
21:53Bounce, dance, sculpt.
21:56Mm-hmm.
21:57You could take a long class
21:58of one discipline.
22:00You could take a combination
22:01of two disciplines,
22:02or you could take a combination
22:04of all three disciplines.
22:05I like it a lot, actually.
22:08And I like the fact
22:09that someone could do something
22:11different every day.
22:12You know what?
22:12Why is that important?
22:13Because it keeps them coming back.
22:15I feel a little bit more hopeful
22:17with the ideas that we spoke about
22:19and the scalability of it.
22:21Jason?
22:22Yeah?
22:24Your wife and I have had
22:25a great conversation.
22:27If you have interest in franchising,
22:30you have to only use this one.
22:32Middleton.
22:33Mm-hmm.
22:34We're going to sit out,
22:35just you and I.
22:36Uh-huh.
22:36We're going to open up
22:37your QuickBooks account,
22:38and you're going to start to record
22:40every expense and every bit of revenue,
22:42because in order to sell a franchise,
22:44the number one thing
22:45you have to hand somebody is
22:46the financials.
22:48Can I request Katie be there, too?
22:50No.
22:51Well, here's the reason why.
22:51Because everything can't fall on her.
22:53Okay.
22:58You don't know
22:59what this location did
23:01versus the other location.
23:03Right.
23:03So we want to definitely
23:04break those two out
23:05into separate locations.
23:07Can you run the payroll
23:07for two different locations?
23:09You can.
23:09You can.
23:09Okay, I've not been doing that.
23:13And if you do them separately,
23:14you can make better decisions
23:16about what's working
23:17and not working.
23:18The QuickBooks platform
23:19makes it really easy.
23:21Oh, cool.
23:22Okay.
23:22Do you have it on your phone now?
23:24Oh, you should.
23:25Okay.
23:26Okay.
23:26I will do that.
23:28We're home,
23:29and Jason is the tough job
23:33of being on a home site.
23:35Yeah.
23:35While I have an even tougher job
23:38with our daughter
23:39building forts
23:41serious work.
23:44Serious work.
23:49Look, I'm encouraged
23:50that we're making progress
23:52as it relates to their process,
23:54and we're expanding their product.
23:56But for me to invest,
23:57there's going to have to be
23:58real development
23:59around the people side of things,
24:01specifically Jason.
24:03This is a partnership
24:0450-50 in the business.
24:05I understand what she brings
24:07to the table.
24:08It's not clear to me
24:09what you bring
24:10on a daily basis
24:11to the table
24:12that's moving
24:13the business forward.
24:14I'm a company facilitator.
24:15What does that mean?
24:17It means I do everything.
24:18Like, let's name it.
24:19Okay.
24:20You want me to name it?
24:20I'll name it.
24:21I do the payroll.
24:22Okay, that's awesome.
24:23Okay.
24:23I do all the laundry.
24:25I do all the cleaning.
24:27I want you to think
24:28about what that sounds like.
24:29I'm trying to create
24:31a concept to build
24:32generational wealth
24:33for my family.
24:34Mm-hmm.
24:35But I am still going
24:36to put laundry
24:37at the second most important
24:39thing that I do.
24:41Let's keep going, okay?
24:42I can't keep going.
24:44You're marginalizing
24:46your value.
24:47Is the guilt come
24:48from the fact
24:49that you recognize
24:50the value
24:51that your wife
24:51and partner brings
24:52to the organization
24:53and you want to make sure
24:55that you're doing your part?
24:56Yeah, sure.
24:57Do something
24:58that's going to change
25:00the repetitious nature
25:01of which you function today.
25:03Okay.
25:04So, let's pretend
25:06I give the laundry
25:09and the cleaning
25:09to other people.
25:11What should I be doing?
25:14Then you would work
25:15on developing
25:16the business
25:17and your knowledge
25:18of the core concept
25:19to grow the company,
25:21not to keep
25:22the towels washed.
25:25Okay.
25:26I don't really have
25:27any education
25:28in growing a business, though.
25:29Sure you do.
25:30You just did it
25:31for 10 years.
25:32So, you know
25:32what kind of education
25:33you have?
25:34Real life experience.
25:51I'm heading over
25:51to meet with Jason and Katie
25:53at a studio
25:53that isn't theirs
25:54in New York City.
25:55I wanted to take them
25:56out of their own environment,
25:58but I've asked them
25:58to bring along
25:59their trainers as well.
26:00I want Katie
26:01to walk them
26:02through all the changes
26:03we're working on
26:03and what are some
26:04other issues
26:05that need to be resolved
26:06at the exact same time?
26:11Good morning.
26:13All right.
26:13So, part of the reason
26:14why I wanted to bring you
26:15into the city
26:16and thank you
26:16for making the journey
26:17is that I felt like
26:18for us to have
26:19some open dialogue,
26:20we needed to be
26:21in a neutral place.
26:23The challenge
26:24that I have
26:24with the current construct
26:26is that Middletown
26:28is empty
26:28and loses
26:29$50,000 a year.
26:33Guys, right now,
26:34Middletown
26:35only offers
26:36bounce classes
26:36and it's just,
26:37it's just not enough.
26:39So, the right side
26:40of the room
26:41will turn into
26:42a dance floor.
26:43Nice.
26:44So that literally
26:45you now have
26:47bounce, dance, sculpt
26:49underneath
26:50the overarching theme
26:51of heat.
26:52Cool.
26:53Which would,
26:54in the end,
26:54hopefully get more
26:56people in the door.
26:57All right.
26:58So now,
26:59Sari,
27:00you said to me
27:00that you believe
27:01that the instructor fee
27:03is below market.
27:05Yes.
27:05Great.
27:05Okay.
27:06So currently,
27:07how are you all
27:07being paid for your time?
27:09If we teach,
27:10we get paid
27:10for the class.
27:12If we don't teach...
27:12And whether there's
27:1310 people or 2 people?
27:14It doesn't matter
27:15how many people...
27:15So what's your motivation
27:16to bring people
27:17to your class?
27:19There's none.
27:19There's none?
27:20Yeah.
27:21Should there be?
27:23We have talked
27:24about this.
27:25I don't love
27:26to be at competition
27:27with, like,
27:27other instructors
27:28because, as it is,
27:30there is already
27:31some competition
27:32that exists.
27:33Like, no,
27:34you should go
27:34take my class.
27:35Like, don't take
27:36that person's class.
27:37You feel like
27:37that's happening a lot?
27:38Yes.
27:39Like me?
27:39You think I'm saying that?
27:40Sometimes.
27:41There's definitely times,
27:42let's just say that,
27:43like...
27:44But I...
27:46Spit it out.
27:47We don't have time.
27:47Yeah, just say it.
27:48So we've heard
27:49from the clients
27:49that it's not so easy.
27:50easy to sway
27:51from their routines
27:53because they feel
27:54uncomfortable.
27:54Because of me.
27:55That's...
27:55That's...
27:56So we've heard
28:05from the clients
28:06that it's not so easy
28:07to sway from
28:08their routines
28:10because they feel
28:10uncomfortable.
28:11that's...
28:12That's...
28:12You should always
28:15come to me
28:15to talk.
28:16And you'll be less
28:17defensive going forward.
28:17I will, but I will be.
28:19I'm not defensive
28:20in person, I promise.
28:21Right?
28:21Am I?
28:22My point is,
28:23is that they need
28:24to make more money
28:25and you need
28:25to make more money.
28:26That's why the
28:27compensation plan
28:28has to change.
28:29Semi-fix.
28:30Pay plans.
28:31Which is,
28:31they get a base rate
28:33for coming.
28:34And then they get
28:35an incremental rate
28:36for building.
28:38We would love
28:39that for them.
28:40It helps me,
28:41it helps you,
28:41we all grow together
28:42and the base of the tree
28:43gets bigger and stronger
28:44and grows bigger.
28:46I love it.
28:47So I asked somebody
28:48to come here today
28:49that I think
28:51could be really,
28:52really helpful
28:52in helping you guys
28:54develop.
28:55Really?
28:56Who is this person?
28:58Come on in.
28:59Hello!
29:01Hi!
29:04Hi, I'm Katie.
29:06Nice to meet you.
29:07I love Amanda Kludz.
29:08I was so excited
29:09to see her.
29:10Amanda Kludz
29:11is a fitness entrepreneur.
29:14She's a celebrity host
29:15and she also created
29:16the AK Rope
29:17and Proper Supplements.
29:20Listen,
29:21I've been on both sides
29:22of this table.
29:23I've been an instructor
29:25at a studio
29:26and then I've also been you
29:28where I have a studio
29:29and no one's coming
29:31unless I'm teaching
29:32and it's hard.
29:35You can be the face
29:35but then you're the face
29:37and everyone's willing
29:38to come to your class.
29:39If you truly don't want
29:41to do every single class
29:44and not have anyone else
29:45come through your door,
29:46you have to take a step back.
29:48Oh, I don't think I,
29:49physically, physically
29:50I need the workout.
29:51It's tough.
29:52Yeah.
29:53Business is tough.
29:54Yeah, yeah, yeah.
29:54Welcome to business.
29:55Yeah, yeah, yeah.
29:56You can do this.
29:57I know you can.
29:58Letting go of the reins
29:59is definitely something
30:01that I need to work on
30:02but I recognize that
30:04and I'm up for the challenge
30:05and I'm hoping
30:06that it'll help me
30:06free up some time
30:07to work on the business,
30:08build things
30:08and create a better situation
30:10for all of us.
30:11All right, we got work to do.
30:12Thank you guys.
30:13Now that Katie and Jason
30:18understand the internal changes
30:19that are necessary,
30:21I think they need
30:22to also go through
30:23the process of changing
30:24the way they present
30:25perspirology to the consumer.
30:27So I'm taking them to JLL,
30:29a design firm that I use
30:30for all of my businesses.
30:32My biggest fear
30:33is that Jason and Katie
30:34aren't really ready to change
30:35but if they're not ready to change,
30:38I'm not sure why any of us
30:39are wasting our time.
30:40Well, hello.
30:43Hi, how's it going again?
30:44Don't you love coming to places
30:45where you have no idea
30:46what's about to happen?
30:47Yes, getting more used to it,
30:49I guess, as we keep going along.
30:50So the reason I brought you
30:51here today,
30:52this company that you're at
30:54is called JLL.
30:55They take retail
30:56and experiential concepts
30:58and they reimagine the look,
31:01reimagine everything about it.
31:03Okay, okay.
31:06You want to meet
31:07these wonderful folks?
31:08How are you?
31:09Hi, guys.
31:10Do you guys remember Amanda?
31:11I'm worried.
31:12Okay, so we're going
31:14to take you back a minute
31:15to what is today.
31:16Okay.
31:17Okay.
31:18I think you look clean,
31:19you look organized,
31:21you look professional.
31:22Professional, yeah.
31:24But if you want to take this
31:25to the next level,
31:26then we have to get something
31:27that's memorable
31:28and it's thoughtful.
31:29We're going to take you
31:30in a different direction here.
31:31Okay.
31:32Here is the new perspirology.
31:34Ooh!
31:35Oh, I love that.
31:37We took your tag
31:38to just bounce,
31:39dance, sculpt.
31:40Bounce, dance, sculpt,
31:41three rings,
31:42three disciplines.
31:43The trampoline is circled.
31:44Yep.
31:44Yep.
31:45Yeah.
31:45That's right.
31:47So let's go inside.
31:49So walking in,
31:50we'd like to reinforce
31:52who you are
31:53and tell your story.
31:54This feels warm,
31:55inviting,
31:55but like not clinical.
31:58It feels like a workout.
31:59As soon as you walk in here,
32:00you know,
32:01I'm going to get a workout.
32:02I'm going to sweat.
32:03And we want to bring
32:04that energy
32:05to the space itself.
32:06Ooh!
32:07Ooh!
32:08We've cut your new logo
32:10into it.
32:11I love that.
32:12I've got to be honest,
32:13I thought I was going to hate it.
32:14I think it's fantastic.
32:16Hold on a second.
32:18As a business owner,
32:19why is it that you
32:20enter situations
32:21with the expectation
32:22that you're not
32:23going to like something?
32:24Sometimes it's hard
32:25to wrap your mind around it.
32:27That's all.
32:27It's not on you guys.
32:28The current concept
32:29in that location
32:31isn't quite hitting the mark.
32:34Yes.
32:34Yes.
32:35She's frustrated.
32:36She is up to here.
32:39So you've got to stop it already.
32:46She's frustrated.
32:48She is up to here.
32:50So you've got to stop it already.
32:52If you're going to be in business,
32:53you have to take chances.
32:55I would rather you be more fearful
32:57of not changing.
33:00I completely agree
33:00with everything you guys are saying.
33:02I want in.
33:04I'm just nervous.
33:05Okay?
33:08I will tell you
33:09that you guys crushed it.
33:12I love it.
33:13It's beautiful.
33:14Thank you so much.
33:15Thank you so much.
33:17I feel like a wave of relief
33:19flooded me.
33:21I'm very excited
33:23about what they put together
33:23and it was beautiful.
33:25It was beautiful.
33:26Something that we could
33:26never do ourselves.
33:28Did you like the concept?
33:29I think it's fantastic.
33:32It just seems like
33:33a huge task
33:36put in front of us.
33:38We're flipping something
33:39that we've been
33:40growing and building.
33:42We're giving it
33:43a complete 180.
33:44That's an intimidating thing.
33:45We've put 11 years
33:47of blood, sweat,
33:48and tears into this.
33:49You don't have to tell me that.
33:51I know that.
33:51I'm just nervous
33:52that maybe it gets bigger
33:53than what we can handle.
33:56But I am all in
33:57or else I wouldn't be here.
33:59I'm ready to take the risk
34:00because I certainly
34:01don't want to keep doing it
34:02the way we're doing it.
34:03Now that Katie and Jason
34:13have seen the refresh
34:14and new concept
34:15of the Middletown location,
34:16I want to sit down
34:17and find out
34:17if there's a deal
34:18to be done here.
34:19Hi, how are you?
34:21Good to see you.
34:22Good to see you.
34:23How they behave
34:24in this particular meeting
34:26is going to determine
34:27am I putting money in
34:28or are they going
34:29to be on their own?
34:30I took a big step
34:31this past week
34:31in a training sense.
34:34I switched our schedule
34:34around taking myself
34:36off the main
34:37primetime spots
34:38to give trainers
34:39those primetime spots.
34:41It has gone
34:42fantastically well
34:43and the trainers
34:43were so excited.
34:46You've empowered them.
34:47Yes.
34:48So where are you at
34:49in terms of
34:50revamping Middletown?
34:52We did bring
34:53our quotes
34:54that we've gotten
34:54and things like that
34:55and we actually itemized
34:56kind of everything.
34:57What we're listing out
34:59is a business in a box.
35:0193,000.
35:02Of those things
35:03you already have
35:0419,000 of them done.
35:07The mirror's already there.
35:09The rubber floor's
35:10already there.
35:11We'll say 75 grand.
35:12So what do you guys
35:13how can I help?
35:14What do you want from me?
35:16If you were open to it
35:17we would really love
35:18to partner with you
35:19on getting this beta testing
35:21going in Middletown.
35:23I'm curious about something though.
35:25As a businessman
35:26why would you be interested
35:29in partnering with us?
35:32Is this your pitch?
35:34No.
35:34You asked him to talk.
35:35Did you really want him to talk?
35:36I'm literally just curious.
35:38Like what do you see in us?
35:40I don't know.
35:42I have zero interest
35:44in investing in somebody
35:47who doesn't have confidence.
35:49I want somebody
35:51who believes
35:52that they are the right man
35:54or woman for the job.
35:55Okay.
35:57I want him to try it again.
35:58I would love him
35:59to try it again
36:00because that sucked.
36:02Like,
36:02that sucked.
36:04Your wife just told you
36:06that your presentation sucked.
36:10I'm putting the ball
36:11in your court, Jason.
36:13I want you to invest in us.
36:14Why?
36:15Because we work our asses off.
36:16I want to know about it from you.
36:17I know about her.
36:18I work my ass off.
36:20I will not stop.
36:22I won't rest.
36:23This workout,
36:23this business
36:24has changed my life
36:25and I want to bring that
36:27to other people
36:28and I think
36:29if you join us,
36:30we could do that.
36:31That
36:32is what I better see
36:34and she better see
36:37every single day.
36:39There's 75,000 of cash
36:41that's needed
36:42and there's 100%
36:43of the concept
36:44of the equity
36:45on the table.
36:46What do you want to do?
36:47If we could have your help
36:48with the build out
36:49of the additional 75
36:51for this
36:52to see where it can go,
36:54get the full scope
36:54of what we need.
36:55What do I get?
36:56You get,
36:57that's a great question.
36:58Three classes?
36:59Oh, Jason.
37:01I believe
37:02that the main concept
37:03should still remain
37:04in our controlling power
37:05at 51%
37:06and you controlling it
37:07at 49%.
37:08Is that your offer?
37:09Well,
37:10hold on a second.
37:11No, please.
37:12Just go.
37:12Just please stop.
37:13I think we should
37:13round it up a little bit.
37:14I think we should
37:15round it to 80.
37:16Nice round number.
37:28Is that your offer?
37:29Well,
37:30hold on a second.
37:31No, please.
37:32Just go.
37:32Just please stop.
37:33I think we should
37:33round it up a little bit.
37:34I think we should
37:35round it to 80.
37:36Nice round number.
37:44No.
37:45I'll do 50,000
37:46for 25%.
37:48Really?
37:5075,000
37:51for 49%
37:52is a better deal
37:53on paper,
37:55but I have a very
37:55specific reason
37:57for doing it this way.
37:58Okay.
37:58I want you to write
37:59a check too.
38:01I want you
38:02to invest
38:03because I know
38:04it pains you
38:04to do it.
38:05We can absolutely
38:06invest that 25,000
38:07easily.
38:08Okay.
38:09Why is there sweat
38:09dripping on your forehead?
38:10I will do it.
38:13I will do it.
38:14I'm going to get you
38:14some, we'll call it
38:15continuing education
38:17and training at
38:17Salesforce to
38:18understand every
38:19single customer,
38:20who they are,
38:21how to communicate
38:22with them.
38:23Okay?
38:23I love that.
38:26It's a wonderful deal.
38:32We're super excited
38:33that Marcus
38:34is choosing
38:35to work with us
38:37and figure out
38:38how to make
38:38this beta testing
38:39model in Middletown
38:40work and hopefully
38:42expand from there.
38:43Okay, guys.
38:43We'll see you.
38:44Bye, Marcus.
38:45Bye.
38:46Marcus talked a lot
38:48about me being
38:49more open-minded
38:49and taking more risks.
38:51Well, I think me
38:52writing that check
38:53is a great example
38:54of taking a risk,
38:55being more open-minded
38:56and being confident
38:57in the business
38:59because I know
39:00what it can do.
39:01I know what it can do.
39:02How do you think
39:03I logged this?
39:06All right, guys.
39:12Well, I'm currently
39:13in Middletown right now
39:14and there is a lot
39:15going on.
39:16We've got spackle
39:17everywhere.
39:18We've got boxes.
39:19It's starting to feel
39:20like it's all
39:21coming together.
39:22Middletown is in the middle
39:23of a rebranding.
39:24I'm really excited
39:25for everyone to see it.
39:27I'm headed to Salesforce Tower
39:28because Marcus thinks
39:29they can help me evolve
39:31and take a step
39:33towards the future.
39:34Jason Patrick.
39:35Patrick.
39:36Pleasure to meet you.
39:36My commitment to Jason
39:37and Katie was to not only
39:38help them with their business,
39:40but also help them develop
39:42as business entrepreneurs.
39:43And one of the keys to that
39:45is getting one-on-one training.
39:46So I've called in a special favor
39:48to my friends at Salesforce,
39:49what Salesforce is going
39:51to show him is how
39:52to stand out in a crowd,
39:54particularly in the very
39:55competitive fitness space.
39:58Right now, the main goal
39:59is to get new customers
40:00to our second location.
40:02Okay.
40:03Product like Salesforce,
40:04what that's going to do
40:04is when you're pushing
40:05those ads out,
40:06you're going to start
40:07to see which ones
40:07are performing better.
40:08So what are you going to do?
40:09Put more money in the channel
40:10that works.
40:11That works, yeah.
40:11Right?
40:12The fundamental thing
40:13to understand about Salesforce
40:14is you have a customer record.
40:16You can type in your customer,
40:17Tiffany Morgan,
40:18and here we can see this record
40:19of everything about Tiffany.
40:20All of her classes
40:21kind of come in here as well.
40:23I definitely think
40:24even just those two things
40:26will be light years ahead
40:28of what I'm doing right now,
40:29which is,
40:31hey, tell your friends
40:32about the promo.
40:33I think Marcus will be impressed
40:36with what I learned here today.
40:37To show him,
40:38hey, look,
40:38you can have confidence in me.
40:40Yes, I may have started down here,
40:42but this, you know,
40:44there's nowhere to go but up.
40:45I actually feel like this is,
40:47these are some attainable goals.
40:48Amazing.
40:54I'm back in New Jersey
40:55at Persperology's Middletown location.
40:58Now, this is the one
40:59that was struggling,
41:00and we developed
41:01a whole new concept
41:02to reboot
41:03and relaunch the business.
41:05We're going to see
41:05if they actually listened
41:06and what the results are.
41:11Holy cow.
41:12I mean, really,
41:13it changed everything.
41:14It was a big deal
41:15for the lobby
41:16to feel inviting.
41:18Color palette came out great.
41:21I like what you did
41:22with the merch.
41:22The merch came out great.
41:24Sold the shirt today.
41:25I get a lot of compliments
41:26on the hoodie, actually.
41:27Can I look in here?
41:29Can I moment it?
41:29Do you want to go first?
41:30Wow.
41:37Now, these lights
41:38can be changed.
41:38So you could change the colors?
41:40Yeah.
41:41I mean,
41:42who's doing all the laundry?
41:45Not me.
41:47We do have a receptionist,
41:49so that person will do it.
41:50I couldn't be more proud of Jason.
41:52He did everything
41:53he said he was going to do
41:55and then some.
41:56And as I look around,
41:57I can see the pride in his face.
41:59He's actually even got somebody else
42:00to do the laundry now.
42:04Hi.
42:05How are you?
42:05Good.
42:06How are you?
42:06When you see this today,
42:09what has changed the most
42:10in your mind?
42:11There's a few things
42:12that have happened.
42:12The growth of our instructors.
42:14As soon as I kind of
42:15let go of the reins,
42:16their confidence level
42:17has skyrocketed.
42:18The other thing is,
42:19Jason is taking more initiative
42:21and doing a lot more
42:23on his own.
42:24Now that Katie and Jason
42:25have totally transformed
42:27their business
42:28and themselves,
42:29I feel like the table
42:31has been set
42:31for a very bright future,
42:33including getting
42:34to profitability.
42:36And once that happens,
42:37the opportunity
42:38to franchise this concept
42:39across the country,
42:41well,
42:41the sky's the limit.
42:43Congratulations.
42:44Thanks for coming
42:45on this journey with us.
42:47First for All of D!
42:48Are you okay?
42:56Our parents are immigrants,
42:57so we're first-generation Americans.
42:59We own a company
43:00called Escape Room New Jersey.
43:02So what are we doing?
43:03Make you out, Liam.
43:04He's down!
43:05Wow!
43:06Wow!
43:06Wow!
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