- yesterday
The Fixer Season 1 Episode 3
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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 built everything will be stationary for when Marcus
00:15comes in every episode I'm meeting businesses at a crossroads we have actually invested our
00:21entire life savings into this business I'll pick one and go to work but I'm not a consultant I
00:28don't believe in handouts I'm a capitalist this is $15,000 always looking for ways to make money
00:34that's why we want you to work with us because we're bad at math that's a terrible reason you
00:40should be good at math I'll work on their people I don't know why you're being such a dick about it
00:45Leon are you mad about something no why the are you singling me out their process the execution
00:50is just like what is it in their product we've heard from the clients that it's not so easy
00:56that's Marcus is an amazing investor and hopefully we'll invest in our business in the end we'll
01:02negotiate my offer is five hundred thousand dollars for ten percent to see if the deal can be made so
01:08we both can profit
01:10welcome to the island how are you I'm Marcus I'm Colin nice to meet you I'm Shelly nice to meet you nice to meet you I love it
01:15welcome to the island how are you I'm Marcus I'm Colin nice to meet you I'm Shelly nice to meet you I love it
01:31so we are a husband and wife team operating out of Brooklyn we're a frozen dessert business we sell ice pops sorbets and ice cream
01:39growing up in the Caribbean ice cream is traditionally presented you know you have a passion fruit ice cream you have a sauce of ice cream
01:45you have a rum raisin we're here to kind of push those boundaries so we we tune any dessert into a ice cream or a sorbet or a popsicle
01:52you have one shop yes and how does that do that does well 23 we did a 475 and we turn a 70,000 profits 24 we did 360 and we did a 3,000 profit but we moved so the bulk of the difference between one year and the next is the
02:09the next is simply because you had to close down and start up can I taste what you have
02:15of course definitely
02:17wow look at this
02:19maybe start with the sauce up because it'll be lightest on your palate
02:22yes it tastes like a tart vanilla yes it's got a really beautiful smoothness it's not too sweet not too tart
02:29try the guava cheesecake
02:31that's delicious
02:33it's the number one summer flavor for us
02:35what is this one?
02:36rum and raisin
02:37it's actually my favorite flavor we soak the raisins in rum for three to four months
02:41that is outstanding thank you
02:43where you been all my life
02:47what do you need help with?
02:49we need help scaling we want to be in other states and we also need capital to make that happen
02:53you have a unique product
02:55in my brain I'm having a slight problem though
02:58okay
02:59I can't get my head away from warm climates
03:01yes
03:03so when I think about you being here in New York
03:05you're swimming upstream constantly
03:07I have an ownership stake in a key lime pie business
03:11in Key West
03:13there's a young lady that owns it now
03:15and she's got a big space
03:17I'd like to connect you with the team in Key West
03:19okay
03:21I'd like to put up 15 grand
03:23to test some data
03:25to explore if we were in a warmer climate
03:27what is the opportunity?
03:29so awesome
03:30thank you so much
03:35well hello
03:36hi
03:37so nice to meet you
03:38Elizabeth
03:39Elizabeth nice to meet you
03:40so nice to meet you
03:41nice to meet you
03:42hey Marcus nice to meet you
03:43nice to
03:44what is your name?
03:45Marlon
03:46nice to meet you
03:47White Lotus Home is an organic bedding company
03:49we make it all using nothing but natural and organic products
03:53and we hand make it right in New Jersey
03:57what are some of the things that are amazing about the company?
03:59the revenue?
04:00so we got up to 1.1 million two years ago
04:03okay
04:04the end of 2024
04:05we went up to 1.7
04:07break down the 1.7 for me
04:09so it's only 600,000 private label
04:11200,000 wholesale
04:13and the rest is retail
04:15which will be $900
04:17900,000 will be retail
04:19900,000 will be retail
04:20half of 1.7 is how much?
04:22uh $850,000?
04:23okay
04:24so if that's the middle ground
04:26which part of the business generated more than $850,000?
04:30none
04:31so you just said retail was $900,000?
04:35yeah
04:36I know I put you on the spot
04:38I apologize but not really
04:39you don't really know the math of your business
04:42so
04:43I disagree but
04:44okay
04:45but I want you to prove it to me then
04:46if you look behind you
04:47that's why we love you
04:48that's what we have
04:49we have that for every single few
04:51breaks everything down for you
04:52to the T
04:53how much yard we pull from the roll
04:55so one minute and a half
04:56and then we can make five out of those
04:58right
04:59this is the course of fabric just for that one pillow right now
05:02this is for all five of them or for one?
05:04yes
05:05no no
05:06this is for one sorry
05:07this is for all five
05:08no that's the price per yard of the fabric
05:09sorry
05:10thank you thank you
05:11here's the thing
05:12here's the thing
05:13I'm intrigued by $1.7 million
05:15what I'm still cautious about
05:18is that business is about the specifics
05:21and if you don't know the numbers
05:24you don't know your business
05:26of course
05:27I don't see an opportunity today
05:29but I smell one or I see one in the distance
05:32oh thank you so much
05:33but I need more refinement
05:34yes
05:35look they've put up this giant spreadsheet on the screen
05:38and it's impressive to look at
05:40but if they don't understand the numbers that make up the sheet
05:43I don't know what we're doing here
05:45okay my man
05:46thank you so much
05:47thank you
05:48thank you for taking the time
05:51look at the doggy
05:52hi guys
05:53hi
05:54how are you?
05:55oh my gosh
05:56how are you?
05:57he likes people
05:58well I like doggies
05:59I do
06:00I'm Marcus
06:01Kimberly
06:02Kimberly nice to meet you
06:03and who is this?
06:04this is Ezra
06:05Ezra?
06:06mm-hmm
06:07Liz
06:08Liz how are you?
06:09very cool hair
06:10thank you very much
06:11hi Stephen
06:12Stephen how are you?
06:13nice to meet you
06:14we are a new experience in the pet space
06:15we provide grooming
06:16but in a very different way
06:18we focus on stress-free environments
06:21and transparency
06:23where we have individual suites
06:26that are made of glass
06:27so that mom and dad can see through
06:29and we do not kennel
06:30and we do not cage
06:31and what is your role in the business?
06:34I am the director of grooming and education
06:36oh
06:37so I've been in the industry for over 30 years
06:39I'm called an NCMG
06:40which is a nationally certified master groomer
06:42we are in the process of building a school
06:45I've transitioned into that role of educating
06:47can you show me how it works?
06:49oh yeah
06:50what did the whole build out of your whole place cost?
06:52a little over a million
06:54okay
06:55how much does it cost?
06:56like if this was my doggie
06:57how much would it cost?
06:58which would be like 180
07:00at his weight range
07:01to 210
07:02that's a lot more than I used to pay
07:04I think our base price on our most expensive is 290
07:07what are you doing?
07:08are you rubbing my feet?
07:09what's happening there?
07:10Kimberly, her gold Rolex watch was big
07:13and her diamond earrings were shiny
07:15she's premium
07:16and I'm wondering if she created something
07:18that was so elevated
07:20that she's trying to figure out
07:21how to generate revenue
07:26are you not profitable today?
07:27mmmm
07:28why'd you have to think about it?
07:29you're like you're looking up at this guy
07:30hoping he
07:31well because I'm trying to think
07:32am I profitable?
07:33no we're not profitable yet
07:35okay
07:36I'm not even to my burn yet
07:37I'm still self-funding
07:38how much money have you put in?
07:44a little over three
07:45three what?
07:46a million
07:48it cost you a million dollars to build it out
08:03and then the other two million went where?
08:05operating
08:06I mean
08:07so you've lost a million dollars a year?
08:09of your own money?
08:10mmmm
08:11that's
08:12I'm shocked
08:13yeah that's a lot of money
08:14you're learning that for the first time right now?
08:15yeah
08:16how much longer can you survive if the business keeps losing money?
08:20maybe another six months
08:23you've got amazing people
08:25you have a great
08:27at least an execution process
08:29and you're dealing with a great product
08:31and for me
08:32when I see those three things
08:33there's a chance to make a profit
08:35so I'm gonna come see you in LA
08:37good economy, bad economy
08:39people will have pets
08:40and people will spend money on their pets
08:42before they'll spend money on themselves
08:44it's really only because of you
08:50I've arrived in North Hollywood
08:52at the fluffology business
08:54and I'm about to meet with Kimberly the owner
08:56and I want to understand where this disconnect is
08:59between her price points
09:01and why she's not seeing consumers
09:03and as I look around the neighborhood
09:04I'm starting to understand that there may be a mismatch
09:07hi
09:11how are you guys?
09:12good morning
09:13I'm on the other side of the country
09:14good to see you
09:15how you doing?
09:16nice to see you
09:17nice to see you too
09:18how are you?
09:19good
09:20I've been involved in the pet space for years
09:21and I understand the opportunity here
09:23but my primary motivation for coming here
09:26is the look on Liz and Steven's face
09:28when Kimberly said that they had six months to survive
09:33anytime an employee feels insecure or unstable
09:36about where they work
09:37that's not a good thing
09:39that's what I'm here to fix
09:41how you doing?
09:42I'm well
09:43how are you?
09:44great to see you
09:45Fluffology's concept is all about transparency
09:48and I love that for the pets and the pet owners
09:51but in order for me to understand how to help this business
09:54I have to look at it from the perspective of the groomer
09:57so I've asked Liz to actually give me a hands-on course
10:00alright, I'm ready to be trained
10:02anything over 50 pounds is a team lift
10:05one, two, three
10:06awesome
10:08so our next step is we start the washing of the body
10:12so you're going to take this middle knob
10:13you're going to turn it to number one
10:15oh, this is like a car wash
10:17exactly
10:18we've already pre-diluted the shampoos
10:20we don't have mixing bottles
10:21and you have to do a lot of stuff
10:23we do everything ahead of time
10:24so less movement around for the dog
10:25so it just helps calm them down
10:29once you're fully trained
10:30you want to know how fast you should be at bathing a dog
10:32ten minutes
10:33on a dog his size at his length
10:35it should take you about four minutes
10:37I'll be honest
10:38water's going everywhere
10:39so I wish that the tub just ate up all that space
10:42because every time
10:43most of them literally have a built-in backdrop
10:45yeah, like a tub at home
10:46exactly
10:47now just towel dry
10:48here's the thing
10:49you don't rub hair
10:51this is when it's the most fragile
10:52creates more matting
10:53so you take the hair
10:55and you squeeze
10:56and let that towel do its job
10:58exactly
10:59there's a lot
11:01welcome to dog grooming
11:05we're going to put a happy hoodie
11:07on Finn
11:08so it helps muffle the sound for him
11:10what?
11:14this table can't hold him
11:15yes it can
11:16really?
11:17yes it can
11:18here's a couple things from my perspective
11:21one, I thought the tub was a terrible setup
11:24we had to hoist a giant dog up and into the tub
11:28water was going behind it
11:30the table didn't work for me
11:33it was too small for this size of dog
11:37Kimberly, can you show me what you have going on in the back?
11:40this is the future home of the Fluffology Institute of Grooming
11:45Fluffology is operating in a massively oversized space
11:49there's six grooming booths that aren't all being utilized
11:52and then there's the back of the building that's totally empty
11:55and while that's a huge problem
11:57I'm not sure it's as big of a problem
11:59as how bad this location is
12:02how is the neighborhood?
12:04so the neighborhood, you know, is rich with history
12:09okay, I appreciate all that
12:10how is the neighborhood?
12:12it's mixed
12:13there's all sorts of different levels of income
12:16a significant amount of homelessness as I walked
12:18and I didn't see the type of affluence that I thought I would see
12:24I'm not sure this was the greatest location for us
12:27we can't move at the moment
12:29we are three years into a six-year lease
12:33now that I understand that Kimberly's stuck into a six-year lease
12:36in a neighborhood where the customers aren't going to pay $150 to $200 to have their dog groomed
12:42it's clear to me that something dramatic's going to have to happen
12:45now I'm also seeing that the products on the shelf are equally tone-deaf to the local environment
12:51how much inventory is in the retail store?
12:53we probably have about $176,000
12:56and how much revenue does the store do?
12:59you don't want to say
13:01$5,000 to $8,000 a month
13:03okay, what is your name, sir?
13:04Leo
13:05Leo?
13:06yes
13:07Leo, how are you doing?
13:08that was my father's name
13:09nice to meet you, brother
13:10nice to meet you, sir
13:11can you hang with us here?
13:12I most definitely will
13:13I see you snickering a little
13:14Leo, do you handle retail?
13:16operations
13:18okay
13:19what day's supply do you have?
13:204.65 years
13:22you should be turning your inventory two to three times a year
13:26when I hear that there's four and a half years of inventory
13:29that's 1,642 days
13:31that's a lot of inventory
13:33what I really want is about 90 to 120 days
13:36so I want to push that number down
13:38but in order to do that I need to change the price point and the offering
13:42that's really the problem
13:43Leo, did you order this?
13:45no
13:46okay
13:47it's $175
13:50is this a poop bag?
13:52this is more than the price of a handbag
13:57that a woman who lives in this neighborhood would spend
14:02I'm just going to be more candid with you
14:04this is offensive
14:05it says to them, we are expensive
14:08and what is wrong with that?
14:10you do have to rely on what's around you
14:13yeah
14:14and if what's around you doesn't match what you offer
14:16yeah
14:17that could explain the losses
14:19we're going to need to create a retail assortment that actually speaks to
14:23a normal person's budget
14:26hey
14:27how are you, I'm Marcus
14:28hey Marcus, Rick
14:29Rick, nice to meet you
14:30nice to meet you
14:31how long have you guys been married?
14:32uh, 18 years
14:33uh huh
14:3418 years
14:35now that I'm hearing about and meeting Rick, her husband for the first time
14:39I think it's important that we all sit down to understand
14:42how in the heck did they spend 3 million dollars?
14:49I can't go anywhere without it
14:51oh my gosh
14:52does that fit in your pocket?
14:54what is the total for the year, last year?
14:57375,000
14:59okay
15:00what was the best month of last year?
15:0247,000
15:0347k
15:04and what was the worst month of last year?
15:0719,500
15:08okay
15:09how much business did you do last month?
15:1145,000
15:12I think that's a good trend
15:13I
15:14it is
15:15now tell me where the revenue's coming from
15:17grooming
15:18for sure
15:19what's becoming more clear to me is that while the revenue is up
15:22it clearly isn't generating enough to cover their expenses
15:26but the bigger problem is the lack of diversity around their revenue source
15:31the 3 million dollars that came into this business
15:34came from where?
15:35most of our wealth we accumulated while we were married
15:38we had a very good run in business
15:40yep
15:41she helped me expand my business at a time that I really needed help
15:45so if I could help support her by being kind of really an investor
15:50during her start up of a business that she's passionate about
15:53that would certainly seem to be the right thing for me to do
15:56when is the next time you think you're going to have to put money in?
15:59uh probably at the end of the month
16:01at the end of this month
16:02and what is the projection for the rest of the year?
16:04easily 22,000 a month shortfall
16:0722,000 a month?
16:08yep
16:09let me do the math for you
16:11that's over a quarter of a million dollars a year
16:14and they don't seem phased by it
16:17where most business owners in America would either be figuring out that they have to close
16:22or figuring out very rapidly how to not close
16:27I don't think I could do this
16:29so where's your line in the sand?
16:31uh are you talking about time or finances?
16:34money
16:35probably another million dollars
16:37the fact that Rick is so flippant about like
16:40yeah I'll just put in another million dollars
16:42while they just got through telling me that they're going to lose a quarter of a million dollars this year
16:46that means he's planning on continuing this insanity for four more years
16:51I hope they don't think it's going to be my million dollars
16:55because that is never happening
16:58allowing money to continue to be lost in the face of obvious things that you know aren't right
17:04to me just feels negligent
17:06and that's I think for me what is a big turn off
17:11when people are casual it scares me
17:14because then I think they're going to be casual with my money too
17:16that scares me
17:18okay I respect that
17:19I want to think about whether I want to whether I want to do this
17:23I've spent some time with Kimberly and Rick
17:34mm-hmm
17:35I'm a little concerned about their casualness around money
17:40am I the only person that sees that?
17:42no, spare no expense
17:44it's that attitude of just
17:46but I've made it so beautiful
17:48she doesn't want it to look like it's a groom shop
17:50and so that has been a struggle
17:52what are you hoping for for yourself?
17:54I don't know if you know but I literally left my husband and two of my kids in Arizona
17:59so that I could have this opportunity to transition to full-time teaching
18:03because that's the goal
18:05I've been in the industry long enough that now I want to educate full-time
18:07and when do you see them?
18:09when I can
18:11and you've been here by yourself
18:13I literally moved from one state to another
18:19to be a part of this opportunity
18:22and I love my husband and I love my kids
18:24and for it to not work out
18:26I just can't even describe how frustrating and how disappointing that would be
18:30and how do you get paid?
18:32salary
18:33what about a percentage of like all... have you asked for that?
18:37we've talked about money
18:39and I you know this is a startup
18:41have you gotten a raise?
18:42no
18:43so no equity
18:44yeah
18:45no bonus
18:46and no raise
18:47and no family
18:49right
18:50and if you went back to Arizona what would happen to this place?
18:54I don't know
18:56could you put litter some coffee in and five adult dogs?
19:01I think he would be an awesome clothology mascot
19:05I want to go over and visit Kimberly
19:07because she's doing this community event
19:09where she's trying to attract new customers
19:11and I want to understand like
19:12how do they collect data
19:13and how are they going to market to these folks after?
19:16we haven't met
19:17so do you work with Kimberly and Rick?
19:19so I do PR for them
19:20I have a PR agency
19:22so as a business owner which you are one
19:24what do you think is a concern with the business?
19:27what's a constructive criticism that you have?
19:30so the one thing I've been telling them since day one
19:32I'm native to LA
19:34is they're in the complete wrong spot
19:36I find it ironic
19:38that the woman who's handling PR for fluffology
19:41was so comfortable telling me that they have a terrible location
19:45and no matter how much money you spend marketing
19:47it won't matter
19:48the only thing to do is to restructure and reimagine the entire business model
19:53let's go through the customer process
19:55so you come here today
19:56you talk to a lot of people
19:58how did you collect the information?
20:03we didn't
20:04we didn't
20:05normally we do
20:06normally we do
20:07how?
20:08this is how we always do a giveaway
20:09and they have to fill something out
20:11so that we capture their information
20:13there's a term called ROAS
20:15return on ad spend
20:17and in this particular community event
20:19they spent money to go there
20:21how are they gonna market to these folks after?
20:23if you don't write anybody's name down
20:25you know what the return on ad spend is for this event?
20:28it's zero
20:30okay see you tomorrow
20:31thank you
20:32thank you by the way
20:33great job
20:34how much do you pay her a month?
20:35six
20:36six hundred?
20:37no six thousand
20:38six thousand dollars a month?
20:41yep
20:42what does the average groomer make in your shop?
20:44fifty two thousand
20:46and how much do you pay your PR agency?
20:48seventy two
20:50she's the only one
20:53seriously that helps you bring in business
20:55i swear to god
20:56no one else is
20:57except the people that do the grooming?
20:59they're not
21:00they don't work on bringing business in
21:02no but they are the reason that people come back
21:04yes but i feed them
21:05they're the only reason people come back
21:07i feed them like children
21:08and i'm out there hustling
21:09right
21:10my ass all day long
21:11all right
21:12can i just talk to her for a minute by myself?
21:14please
21:15i know how desperately you want this to work
21:18i can feel it
21:19and you're so scared that it's not gonna work
21:23and it's not working because you're so scared
21:26i think i believe in this
21:27i think it's a great model
21:29i think it is def
21:30we're gonna be a premier pet destination place
21:32but i'm telling you i don't have this team support that i think you think i have
21:36they don't support you the way you want them to?
21:38no they just don't support me at all
21:40they're spoiled
21:42on these people
21:43in my mind when i listen to kimberly
21:45she sees herself at the top of the mountain
21:48and her employees at the bottom
21:50the only way she's gonna be successful
21:52is if she sees herself at the bottom of the mountain
21:55and she wakes up every single day
21:57pushing her employees to the top
21:59making sure they're successful
22:01that's what a leader's responsibility is to do
22:04i would tell everybody that we're gonna have
22:07a company meeting on tuesday
22:10and they better get their ass there
22:13so without talking about it anymore
22:15i'm gonna get everybody in a room
22:17and we're gonna flush this out once and for all
22:22let's get down to it
22:24i'd like you to list off two or three things
22:27that make you crazy in a negative way in working here
22:31we'll start with you steven
22:33there's definitely a lot of things that need to change as far as morale in here
22:39and then time gaps
22:41obviously i get paid commission
22:43and then if i'm sitting here
22:45i would like to be paid for that time
22:48i'll say it as if i worked here
22:50i would say you spend money on lots of stupid
22:53but then you can't figure out how to pay me
22:56when you're willing to pay other people
22:58like a pr agency six grand a month
23:02did you know that?
23:04no
23:06you paying those girls six grand a month
23:08is
23:10it's a waste of your money when your groomers
23:12and your staff aren't getting paid per year
23:15as much as your pr staff
23:17that is delusional
23:21well they don't just do pr they do all the social media
23:27but what do i do?
23:28but what do i do?
23:29the groomers are the company i made so little last year
23:31steven do you mind sharing how much you made last year?
23:35yeah i made $26,000
23:37you only work three days a week right?
23:38don't start blaming me
23:39no no no but you only work
23:40i work four days a week
23:41okay
23:42no i think that's it
23:43you're not getting paid as much as your pr staff
23:45that is delusional
23:46well they don't just do pr
23:48they do all the social media
23:49all the content
23:50all the posting
23:51all the posting
23:52but what do i do?
23:53the groomers are the company
23:54i made so little last year
23:56steven do you mind sharing how much you made last year?
23:59yeah i made $26,000
24:01you only work three days a week right?
24:02don't start blaming me
24:03no no no but you only work
24:04okay no i think that
24:05there was time in the beginning where there was no appointments
24:09nothing i worked weeks with nothing
24:12and i stayed here for you
24:14don't blame me
24:16leo your turn
24:18um for me my position
24:21um it's always been fluid
24:24my responsibilities have always just kind of like wavered
24:27and it just kind of depends on the day and like the company needs
24:30um so just kind of like more strict or direct responsibility
24:33responsibilities will help me
24:35not set you up or the company for failure
24:38thanks
24:41i hate that
24:42and i appreciate your vulnerability leo
24:44because that's the best way to communicate is honesty
24:47you're up liz
24:48it is so difficult to deal with your highs and your lows
24:52and your your inability to be clear and follow through and stay on track
24:58because it's all over the place
25:00i have never worked this hard for somebody for so little in my entire life
25:04i honestly thought that i would be teaching at the school portion at this point
25:08what the hell am i doing
25:10why am i still here
25:11how much longer are you willing to stay here
25:15six months
25:17i think we should take a little break here
25:20it's a lot to process
25:21we'll come back in a few minutes
25:23this process that we just went through with the employees
25:28it proves to me
25:29that if kimberly doesn't make changes to her leadership style
25:32this business doesn't survive
25:34is liz leaving in six months
25:36if she doesn't see a path forward she is
25:39i think you got to take a breath
25:41and what i wanted you to see here is they are pissed off at you
25:45oh yeah i think so
25:46and so that's why you're not able to motivate them to do things
25:50managing people is really hard because i have to tell you
25:52no matter what you do
25:54no matter what you do right
25:55they only remember what you do wrong
25:57if you want to manage the way you're managing now
25:59unfortunately i don't think i can help you anymore
26:01and i think they will leave
26:03and the business will close
26:05right
26:09there was a lot
26:11and
26:13i feel a little misled that somebody else is making
26:16a ton more money than me
26:18because the stylist is supposed to make the most money
26:21we're the lifeblood of the company
26:23i'm a tough bitch but i'm also a crybaby
26:28when they say i don't appreciate them
26:30i can't remember the last time they ever have appreciated me
26:36i am bombarded with
26:38you're not doing this right
26:39you're not doing that right
26:40you're not doing this right
26:41we don't do this right
26:42you don't do that right
26:43stop with the attacks
26:45maybe it is just human nature
26:48no matter how much you give people
26:50and no matter how much you do
26:52you know they just want more
26:55hey guys can you guys come on back
26:59do you feel like you made enough money in the last year
27:02no
27:03do you feel like you made enough money
27:04no
27:05do you feel like you made enough money
27:06no
27:07most importantly do you feel like you made enough money
27:09no
27:10no
27:11all right so we're all gonna cut the
27:12and you're gonna do what i tell you to do
27:13we're gonna think about this in three zones
27:16zone one is the retail store
27:19we need to stock it with things that we think speak to the neighborhood
27:22so we're gonna put in a chew and treat bar because it's high frequency high margin
27:26and it's gonna give the business the profitability it needs to pay everybody the proper wage
27:31that doesn't have to come out of their pocket
27:34zone two are the six booths
27:37i want to swap out the tubs and tables so it's easier for you guys and it's way more efficient
27:42in the back the third zone we're gonna start what was promised to you
27:46with a very basic educational platform
27:49going forward we have three rules
27:52every decision we're gonna make we're gonna use a filter
27:56does it drive revenue does it improve morale and does it plan for the future
28:01if it doesn't check those boxes it doesn't work
28:04they have to know what the rules of engagement are
28:07they have to know what their jobs are
28:09they have to know what their expectations are
28:11you have to give them a proper pay plan and stay out of their way
28:14that's it
28:23look i am up to here with kimberly right now
28:26you know the best way to get kimberly to change her perspective about her people and the process
28:30make her do their job and then she'll realize how difficult it is
28:34and then she'll be okay with changing
28:36all right kimberly first thing we're gonna do is check our water temperature
28:40if it is warm on your skin it is warmer on theirs
28:45so you have a bar of soap that is hanging on the inside of your tub
28:49and you're gonna use that to saturate her entire face
28:52paying really close attention to her mouth
28:55where food gets in it
29:01we're almost done baby
29:03in the time that we've been open kimberly has washed two dogs
29:14live
29:16two
29:18two dogs
29:20how's it going
29:24okay well that's over there
29:26our staff meeting was hard for me to digest
29:30to hear and see those reactions and responses from my staff
29:35small sections
29:36it was super tough on me and super emotional
29:39i can respect how they feel
29:40i walked past my groomers all day
29:43i'm in and out of their suites
29:44but i had no idea
29:46it's hard work
29:47i am open to changes
29:51i'll give them a vote
29:52okay go ahead
29:53oh what a good time
29:55for me the path to prosperity for this business is surrounding yourself with the right people
30:02and having more dogs
30:04and the quickest easiest tool is zip recruiter
30:06which is like the best hiring site out there
30:09all they have to do is create a job posting
30:12and zip recruiter delivers qualified experienced people quickly
30:15and then hire them bring in more dogs and generate more revenue in the booths
30:20it's that simple
30:21it's that simple
30:28thank you
30:31how you doing buddy
30:32how you doing good to see you
30:33good to see you man
30:34i brought the team to one of the largest and best pet distributors in the u.s.
30:38and i wanted kimberly and rick to understand that it's not that difficult to figure out how to get to break even
30:43you have to start looking for new ways to make money
30:46find new revenue sources find new margin
30:48we're meeting the neighborhood at the price point
30:51but i most importantly want to give leo the assignment of overseeing the retail store
30:56so that he wakes up every day and feels like he has purpose and he can contribute to this company
31:01that has a little novelty to it
31:03those should be flying off the shelf
31:05i think ultimately leo you are going to be fully in charge of that retail store
31:10and then from that day forward it'd be my preference that you have your wage and then you have an incentive
31:16directly tied to the sales where you can make real money
31:19don't you have a restacking charge when you take something back
31:22no not for marcus
31:23okay
31:24what a fabulous offer
31:25it's almost like unbelievable that we're here and you're here and we're just meeting you now
31:29this looks really great
31:31part of the reason that i'm so adamant about this chew bar getting set up in their retail store
31:36is that they're losing twenty two thousand dollars a month
31:39if they sell a thousand dollars a day at a fifty percent margin
31:42that's fifteen thousand dollars a month in gross profit
31:46getting a lot closer to zero than they've ever gotten
31:49but the real revenue growth is going to come from more customers walking in the front door
31:53and taking on grooming services
31:57so i want to show you something that i had my friends at salesforce build
32:01they've launched a product called agent force
32:03and it's essentially like having an executive assistant that helps you communicate with the consumers
32:09so i want to show you an example of what will happen
32:12all right so this is your website
32:13right
32:14and i had them build an agent
32:16hey there i saw that you're looking at our various grooming services
32:19are there any questions i can help with
32:21i'd like to book a groom for my dog ezra
32:25could you please tell me ezra's breed and age
32:27he is a standard poodle and he's three years old
32:31we would be excited to pamper ezra
32:33we love standard poodles
32:35we have a 3 30 pm slot on thursday at our magnolia boulevard location
32:40it's the future
32:41it's really the present
32:46the primary adjustment that needs to be made to achieve a level of profitability
32:50for this business
32:52is for them to understand the tam
32:54the total addressable market
32:56within their neighborhood
32:57and in order to do that
32:58you're going to have to modify your pricing
33:00how much does it cost like if this was my doggy
33:03how much would it cost
33:04so he would be 180 at his weight range
33:06to 210
33:07our base price on our most expensive is 290
33:10the lower the price the more people are open to it
33:13how did you establish this pricing model
33:15i did a very elaborate spreadsheet
33:18you may need an abacus to figure out what the pricing is
33:23is it a puppy is it have short hair is it four months old is it weigh this much
33:27it's like holy
33:29it's just all way too expensive
33:31what you're selling in that booth is time
33:34that's all you're selling
33:35that's correct
33:36right
33:37you can make it very simple by saying
33:38for a small dog it's an hour
33:40for a medium dog it's an hour and a half
33:42and for a large dog it's two hours
33:44and you just charge time
33:45so i was thinking to max out this store
33:49let's just do
33:51ninety nine dollars for a groom
33:53and you'd get away from all this complicated numbers
33:57look whether rick is right about ninety nine dollars or not
34:00i can appreciate him wanting to simplify the process
34:03and get to profitability
34:04but that's just one component
34:06there's a whole host of other things
34:08that i'm going to require kimberly to do
34:10to help us get to profitability
34:12there are assignments here
34:14read them out loud
34:15new pay plans for the groomers
34:17as well as incentives for growth on selling other products and services
34:20standards and expectations for groomers on what is expected of them
34:24and that's what leo said
34:25he said i just want to know what am i supposed to do
34:27tell me what you expect of me
34:29and you also need to get liz out of the grooming booth
34:32and let her do some teaching
34:34i'm asking you to sign up to get this done in two weeks
34:38if i come back and it's not done in two weeks
34:40i have no interest in investing
34:49we're making it happen over here marcus
34:51we're making it happen
34:52we're getting rid of some of our retail items
34:54that just didn't sell
34:55we've reconfigured a lot of the merchandise
34:58we've put up sale signs in the window
35:00we're going to have a small army of people
35:02distributing flyers directly in the neighborhood
35:05maybe we should do cafe tables back here
35:09cafe tables back here
35:10after over a month of working with this business fluffology in los angeles
35:25i'm back to see if all the changes that we've been working on have actually happened
35:30have we fixed the people process and product
35:32i guess we're about to find out
35:35well hello
35:38one of my main rules in business is that if you don't know your numbers you don't know your business
35:43and intuit quickbooks gives our businesses the tools we need all on one platform
35:49at fluffology kimberly manages a complex business with a growing staff
35:53i'd love the fact that quickbooks allows business owners to support our teams with access to health benefits and affordable retirement plans that integrate directly into quickbooks payroll
36:05now that you know your numbers you'll understand why i use quickbooks and you should too
36:10well hello hello how are you i'm well how are you how would you describe the execution of la's biggest chew and treat bar
36:26yeah i'd give it a solid seven
36:28like we're definitely headed in the direction that you wanted us to like head in
36:44leo you did a really nice job in here
36:48how's business been from your perspective we had the best month ever
36:51you did yeah how much 54 000 for the month yeah
36:55i've been waiting for her to get over 50 000 for two years
36:58eliminating losses is good for our relationship
37:01and ours
37:04i want to see how liz is doing kicking off the grooming school
37:07i know i know i'm super excited
37:09and all you're gonna do is move your thumb
37:12that's all you're gonna do
37:13hey guys
37:14hey
37:15what's going on
37:16is that a real dog
37:17why don't you see and find out
37:19are you starting from scratch
37:23no scratch
37:24no scratch
37:25have you ever done this
37:26this is first
37:27okay
37:28not bad
37:29i like it
37:30i'm glad to see that liz is able to do what she came here to do which is to teach
37:35but i also want to ensure the other changes i've required have also been done
37:41show me what's different about the top
37:43your door
37:44is actually a ramp
37:46oh that's so awesome
37:50this table is super super awesome
37:53there's no lifting at all
37:54is it not as pretty no it's not
37:56yeah
37:57does it make everybody feel better
37:58yeah
37:59so what are we doing to address compensation with the team
38:04we've drafted a commission structure for our stylist
38:08my commission has gone up dramatically yeah
38:11okay
38:12you should be able to get close to doubling your income
38:15yeah
38:16in this year versus last year
38:18right yeah
38:19has the last 30 days shown that to be happening
38:21100%
38:22i'm able to pay my bills
38:23i'm able to live a little more comfortably
38:25so you feel better
38:26i feel better
38:27new tub
38:28yeah
38:29new pay
38:30new attitude
38:31yeah
38:32how about everybody else
38:33i think everybody is happier
38:34yeah we've been booked and busy
38:35yeah
38:36how do you feel now about all this
38:38you kind of re-energize stuff
38:39and sometimes you just need that
38:42can i have a minute just with them
38:44absolutely
38:45how different is she if at all
38:49one she's giving more actual autonomy to decisions
38:53she's a lot more you know just personable
38:56whereas before it felt like rushed and
38:59not acknowledged
39:00yeah no acknowledgments
39:01but now it's like oh can i get you a coffee
39:03that stuff feels good as an employee
39:05i'm happy with the progress here that's being made towards driving towards profitability
39:10and i'm also happy to see what's happened with the people
39:12but for me
39:13i really need to decide what i want to do here with this business
39:21ah
39:22take a deep breath
39:23i know right
39:24i feel like you are so close and when i met you i felt like you were so far away
39:33after i left on day one i was like what am i doing here
39:36right
39:37so i want to tell you that i'm really proud of how you changed
39:40thank you
39:41it's part of the reason why you had your best month ever
39:44i think rick you've been really supportive of her
39:47it certainly makes for a much more harmonious marriage and business partnership
39:52when you are not watching your life savings go out the door
39:56which leads me to what i would like to do
39:59i have an interest in being a non-active backer of your business
40:06and you understand that if i do that i'm going to want a chunk of something
40:10mm-hmm
40:11that's just how it is
40:13i would like to task you with two things
40:16one get to profitability
40:18you got 90 days to make money
40:20second i want you to go to some mild level of an architectural drawing
40:27that shows the cost broken down by zone one two three retail
40:31where do we get our fixtures from
40:32where does the product come from
40:33where did the freezers come from
40:35go to zone two
40:36where did the tubs come from
40:37where did the tables come from
40:39all of that i want to build all of that out
40:41what i'm trying to get you to build is the concept
40:44that somebody else could buy
40:46you now can take people who want to be business owners and say to them
40:49here's my playbook
40:51we are certainly interested in being involved with you
40:54i have an interest in being involved at some point
40:58but not until you get to zero
41:00okay
41:01thank you
41:02super proud of you
41:04and you really did a hell of a job
41:06we'll see you soon
41:07yep okay
41:08be good
41:09awesome
41:10i am very pleased that fluffology had their best month ever
41:14and a big chunk of that credit goes towards kimberly
41:17in adopting the filter system that i gave her
41:20which is do the decisions i make drive revenue here
41:24and she did that by changing her grooming pricing and adding the treat bar
41:28do they improve morale and she did that by giving the focus to the employees that they deserve
41:34with the right pay plan and the right freedom to be the best version of themselves
41:38and does it set us up for the future and i think she's done that by modifying all of those things
41:44that give this business a chance to succeed in the future
41:48if she continues to adopt those three and embrace them the next month and the month after that
41:54that will only get better from here
41:57i have someone who finally says
42:01all right get here and i'm committed
42:04i'm thrilled to death i really am
42:07we were able to convince a smart investor like marcus to believe in us
42:12maybe i'm feeling a little validated with all the hard work that i have put in and my team
42:17they want this too and they deserve it
42:24i'm happy to report that after two months and the team making all the changes and most importantly working together
42:30fluffology has become profitable for the first time
42:34it marks a new chapter in their future
42:37it proves to me that when people can work together and have a common goal
42:41well that's when the profit comes
42:44i need somebody with business acumen
42:48we're actually not profitable
42:50our growth is flattening
42:51mmm that's delicious
42:53these suck
42:55now give me new ones
42:56shut it down
42:57you're telling me to change everything
42:59you emotionally did not come prepared
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