All language subtitles for the.profit.s06e02.hdtv.x264-w4f[eztv]

This is cool.

...a manufacturer and a retailer
with a unique product...

Is everything in here cork?
Amanda: Yes.

Lemonis:
...experienced early success

and expanded to four locations,

but owner Amanda Dailey's
poor communication...

Amanda: [ Chuckles ] We moved.

Lemonis: I don't remember
ever talking about moving.

...and her reckless spending...

Credit-card fees -- $257,000.

...is putting this
once-buoyant business at risk.

Amanda: If we don't stop
this cycle of borrowing

and not having enough money
to repay things,

there's no way
we can survive it.

Lemonis: If I can't teach Amanda

how to put a cork
in her mounting debt...

It's almost like everybody
has just gotten comfortable

with a huge space

and [bleep] collecting,
and it doesn't really matter

because Julie will just
write another check."

...then this business...
What the [bleep]

...may just crumble.

Please help us make money.

Please help us make money.

My name is Marcus Lemonis,

and I risk my own money
to save struggling businesses.

We're not going to wake up
every morning

wondering if we have a job.

We're going to wake up
every morning

wondering how many jobs
we have to do.

It's not always pretty.

Everything is going to change --
everything.

But I do it to save jobs,
and I do it to make money.

This...

Let's go to work.
...is "The Profit."

♪♪

New Orleans is one of those
cities that always stands out,

and whether it's the food,
the music, the architecture,

it's just a really
fascinating place,

and it doesn't look like
anything else in the States.

So when a local business
reached out

and even their product
was unique --

everything they make
is from cork --

I headed to the French Quarter
to check it out.

Amanda: Hello.
Lemonis: Hi.

Amanda: I'm Amanda.
Lemonis: I'm Marcus.

Amanda: Nice to meet you.
Lemonis: Nice to meet you.

Amanda: So welcome to QUEORK.

Lemonis: This is cool.

Is everything in here cork?

Amanda:
Yes. There's bags, jewelry.

Lemonis: Hats, place mats.
What is cork?

Amanda: It's the outer bark
of the cork oak tree.

It grows mainly
in Portugal and Spain.

Lemonis:
Are there cork trees in...?

Amanda: California, yes.

I actually tried to bring one
back here.

Actually, Julie told me not to.

Lemonis: Are you Julie?
Julie: Yep. Julie.

Lemonis: I'm Marcus.
Julie: Hey, Marcus.

Very nice to meet you.
Lemonis: Nice to meet you.

Julie: Welcome to New Orleans.
Lemonis: Thank you.

How long have you guys been
in business together?

Amanda: Since 2012.

Lemonis: Okay.
What did you do before?

Julie: I'm a lawyer.
I still am.

That's my day job.
Lemonis: Okay. Uh-oh.

Julie: Yeah. Sorry. Sorry.

Amanda: I was a builder.

I built townhomes
and condominium developments.

Lemonis: How many stores
do you guys have?

Amanda: Four.
Lemonis: Really?

Amanda: Yeah. So two here.
Julie: Two here.

Amanda: We have one
in Santa Fe, New Mexico.

Lemonis: Oh, you do?

Amanda: And then we opened one
in Santa Rosa Beach, Florida.

Lemonis: Well, first of all,
is that how you spell "cork"?

Amanda: No. [ Chuckles ]

Julie: She was so obsessive
about it.

I was like,
"You are the queen of cork."

Lemonis: Because phonetically,
it's said almost the same,

quee-ork or something.

Amanda: Yeah.
That's what Siri said.

Lemonis: That's what Siri
calls it?

Amanda: Mm-hmm.
Julie: Yeah.

Lemonis: Hey, Siri, where can
I buy cork in New Orleans?

Siri: I couldn't find
any matching places.

Lemonis: Am I saying it wrong?
Is it "quirk"?

Amanda: Maybe she thinks it's...
Lemonis: How do you --

Siri: I have everything I need
in the cloud.

Lemonis: I get it, but not cork.
Amanda: Yeah.

Lemonis: Can you find quee-ork
in New Orleans?

Amanda: [ Laughs ]

Siri: Here is what I found.

Amanda: Is it there?
Lemonis: Yes.

Julie: Yeah. See? [ Laughs ]

Lemonis: Can you take me through
some of the products?

Because I'm honestly fascinated.

I know nothing
about the product.

So there's hats, place mats,
messenger-type...

Amanda: Bags.
Lemonis: ...bags like an iPad.

Amanda: Travel. Yeah.
It's hypoallergenic, waterproof.

Lemonis: It's waterproof?
Amanda: Yes.

Julie: Yes.
Amanda: It floats.

Lemonis: Really?
Amanda: Oh, yeah.

Lemonis: Oh, yeah.
I guess that makes sense.

Julie: Yeah. We get
that question all the time.

It's, like,
it's a bottle stopper.

Amanda: Scratch-resistant,
stain-resistant,

it won't ever smell.
Lemonis: So it's good

for your feet.
Amanda: Yes.

Lemonis:
Makes your feet not smell.

Amanda: This is actually the ax
that they use to cut the tree.

Lemonis: This is it?
Amanda: Uh-huh.

Yeah.
Lemonis: Oh, yeah.

Amanda: They put it into a tree,

and it knows just about
where to go.

Lemonis: This is how I feel when
I meet a small-business owner

that doesn't know their margins.
Amanda: [ Chuckles ]

Lemonis:
It's a pretty store.

It's well-merchandised,
but literally every single thing

in there is made of cork,
and I was hoping

that I would see some
diversification of materials,

maybe a little canvas or a
little leather mixed with cork,

and while the products
are beautiful,

I wanted to see
a little more pizzazz.

How much have you guys invested
since you started?

Julie: Close to 200 grand.

Lemonis: $200,000?

Amanda: Yeah.
Julie: Yeah. So...

Lemonis: And have you
put any money in?

Amanda: No.
Lemonis: Okay.

Amanda: I just work the store.

Lemonis: And where do you office
out of?

Amanda: Out of
where we manufacture.

Lemonis: And you have
a manufacturing facility?

Amanda: Mm-hmm.

Lemonis: And you have all this
for 200 grand?

Amanda: Oh, yeah.

Lemonis: That's not bad.
Julie: Well, we do --

Amanda: There's more debt
is the thing.

Julie: There's debt also.
Lemonis: How much total capital

has been invested
in the concept,

whether you borrowed it
or put it in?

Amanda: I mean,
probably around $400,000.

Lemonis: Does it lose money?
Amanda: Yes.

This last year, it did.

Lemonis: Do you wholesale
any of this product?

Amanda: No.
Lemonis: How come?

Amanda: Our biggest problem
in the store,

in these stores,
is keeping it stocked.

We're always running out
of the most popular products.

The problem is just having
the manpower

to be able to make more.

Julie: Neither one of us had
any experience whatsoever

in any sort of retail.

Amanda: When I started it,
it was just me.

Then I went to Julie
and asked her to partner in.

Lemonis: Was she your lawyer,
or is that --

You were like,
"I'm going to get a contract"?

Amanda: No. We're a couple.

Lemonis: You guys were
already together at the time?

Julie: Yep.
Amanda: Yes.

Lemonis: How long have you guys
been together?

Julie: Seven years.

Amanda: Yeah, eight years.
Julie: Seven, eight years.

Lemonis: So longer than
the business has been around?

Amanda: Yes.
Julie: Yeah.

Lemonis: And your relationship
has lasted

through the business,
no problem?

Amanda: Yes.
Julie: No problems.

Lemonis: None?

Amanda: Well, I mean,
honestly, like,

because she doesn't have much
to do with the business at all.

Lemonis: Except she's got
money in it.

I'm noticing
an uncomfortable dynamic

between Julie and Amanda,

and you often find that
when there's two partners

who are owners of a business
and one put up all the money

and the other one
put up all the work.

How has it affected
your relationship?

Julie:
Amanda is very competitive

and she wants to do
everything herself,

and it's too much.

And then things happen,
and she gets herself in a bind.

We've gone up and down
in our relationship

because of, you know,
the arguing about it.

So I just learned the other day
from Amanda

that the debt
was around $400,000,

and I was just like, "Really?"
Lemonis: You didn't know that?

Julie: No, and if we were not
life partners,

then I'd be calling her
and have that --

Lemonis: That's the challenge
in getting in business

with somebody you're in
a relationship with.

Julie: Yep. Yes.
[ Chuckles ] I agree.

Lemonis:
How do you take feedback?

Julie: She is very open to,
like, learning and --

Lemonis: From you?
Julie: Not from me.

Amanda: She just doesn't know
much about the business,

and so we don't
talk much about it.

Lemonis: What would you
like her to know?

Amanda: Everything, and so
I've asked her to help me.

Julie: That's untrue.
We talk about it

every single night.
You know, she's so stressed out,

and I'll be like,
"Amanda, what's the matter?"

"Ugh, you know,
it's just so [bleep] up,

and you don't want
to hear about it,"

and I'm just like, "Okay.
I'm going to go quietly to bed

because it's going to just
continue to snowball,"

and it's not worth it to me.

Lemonis: Almost looks like
Amanda keeps Julie at bay,

gives her
not too much information

to maybe expose
some of her decisions.

When you look at it
from Julie's perspective,

she wants to be supportive of
her partner by putting money in,

but it almost feels like she's
burying her head in the sand

and doesn't want to know
too much, either.

I would like to see the factory.
Amanda: Yes.

Lemonis: So can you
take me there?

Amanda: Absolutely. Okay.
Lemonis: Okay?

♪♪

Amanda: Hey.
Lemonis: Hello. This is awesome.

Amanda: So this was the space
that really you can't keep cool.

Lemonis: It's hot in here
in the summer?

Amanda: Yes.

Lemonis: I legitimately
did not know that cork came,

like, in these sheets.
Amanda: Yeah.

Lemonis:
And so is this essentially

a cut-and-sew operation?

Is that how I should
think about it?

Amanda: Yes. Mm-hmm.
Lemonis: And who runs all this?

Amanda: Jackie.

Lemonis: Really you're sort
of doling out the jobs,

keeping people on task.
Jackie: Yeah. Yeah.

Amanda: And we found a local
not-for-profit

called the YEP locally here.

Lemonis: Yeah.
What does YEP stand for?

Amanda:
Youth Empowerment Project.

Lemonis: I like that.

Amanda: Mm-hmm, and so Mimi
went through their program.

Frank and Ashante
went through their program.

I mean --
Lemonis: What's the program for?

Mimi: It's for youth who are
looking for something

to better their future,
basically.

Lemonis: They basically give you
different trade skills?

Mimi: Yeah.
You either go through sales,

graphic design,
or, like, the business route.

They set you up for success,
basically.

Lemonis: Here? Wow.

What I like about what QUEORK
provides the YEP kids

is an opportunity
to learn a skill and a trade.

That's a business plan
as long as it makes a profit

that I can buy into.

♪♪

You've really done
nothing that added

a little bit of life to the bag,

and so when I look at, like,
the stitching here,

like, if you did that in red

or if you did it
in purple and gold...

Have you tried
to do stuff like that?

Jackie:
Amanda has certain tastes.

She's not really into color.

Amanda: This is safe.
Jackie: Yep.

Lemonis: I want to give the
artists and the workers there

the freedom to put
their own stamp on things.

We know that a basic product
will sell 8 times out of 10,

but I want those
extra two sales.

Delivering the same product,

making brown shoes all the time
isn't going to work.

Also, the zippers suck.
Jackie: Yeah.

All of our hardware sucks.

Lemonis: Really bad.
Jackie: Yeah.

One of my most
frustrating things.

Lemonis: It just feels like
you took

a really
good-quality construction

and a really interesting fabric,
and you just took it down pegs.

How did you learn
how to make all this stuff?

Astra: Trial and error.
Jackie: Trial and error.

Yeah.

Astra: We don't really know
what we're doing.

Lemonis: Have you been to
a leather manufacturer

before to sort of see --

Amanda: I've never been
to any kind of manufacturer.

Lemonis: You haven't?
Amanda: No.

Astra: That would be cool.
Amanda: Yeah.

Lemonis: Who's responsible
for all the inventory here?

Like, what --
Amanda: That's not inventory.

That's, like, the bags that
we either took apart or returns.

Lemonis: Where are all
the raw materials?

Like --
Woman: In there.

Lemonis: You have to keep
going back and forth?

When I look at this facility
and the talent that's in here,

it seems like a really cool way
to be a market leader,

a trendsetter.

You can't because
doesn't seem like

there's much of a process here,

like, no inventory management,
no workflow, nothing like that.

I feel like I'm in somebody's
garage of things they collected

over a series of years.

You want to run it like a lean,
mean machine,

and that includes what it
looks like, how it's organized.

It's details, and I don't think
Amanda understands that.

I'd like to hear from you
sort of

what your objectives were
in calling me.

Amanda: Well, before we started,
I was in real estate,

and it was a bad time for me.

Lemonis: Personally?
Amanda: Financially.

That was kind of my identity,
too, you know,

and I was successful in that
up to that point.

I filed bankruptcy,
and more devastating

than just filing bankruptcy
was losing who I was.

Now I feel like
I'm kind of failing again.

I don't want this to all be
for nothing.

If we don't stop borrowing
and not having enough money

to repay things, there's no way
we can survive it.

It's been six years now,
and we've never made any money.

I've never been able
to give Julie a check,

and that's why
you got to ask for help.

Lemonis: You feel like
your relationship

would be in jeopardy
if the business closed?

Amanda: Yeah.

It scares me to death
to think of that.

Lemonis: So I would love
to be able to meet

tomorrow morning if that's okay.
Amanda: Yeah.

Lemonis: I would like Julie
to be there,

and I think part of you
overcoming these fears

that you have of the business
are understanding

that you have to share
information even when it's bad,

and maybe you don't have to bear
the brunt of all the solutions

on your own.
Amanda: Yeah.

Lemonis: All right.
Have a good night.

I'll see you tomorrow.
Amanda: All right.

Thank you.
Lemonis: Yep.

♪♪

Good morning.
Amanda: Hi.

Lemonis: How are you?
Amanda: Good. How are you?

Lemonis: Good to see you.

How are you?
Julie: Good.

Lemonis: So I thought
it'd be good for us

to go over the financials.

Sales, let's start with that.

In 2017...

you have $1,491,542 in sales...

Amanda: Mm-hmm.

Lemonis: ...which is
a high-five on that one.

I didn't know that many people
actually bought cork.

Amanda: Yeah.
Lemonis: Okay?

Amanda: It should be higher.

Lemonis: Cost of goods
is $466,835,

so you had $1 million
in gross profit,

an unbelievable margin,
spectacular.

So the way to think about it is,
with that,

about $1,024,000, you have to
pay all your bills --

$231,000 of rent,
utilities at $35,000.

Supplies -- $25,000.

Furniture, equipment
and improvements -- $40,000.

Payroll at $507,000
for the year.

Advertising is $125,000.

Credit-card fees and loans --
$257,000.

Amanda: So that's
principal and interest.

Lemonis: You're spending more
than you're generating, simple,

so the cash
that came into the business

is the amount of her
original capital, $200,000,

plus all the debt, $463,000.

That totals $663,000 of money
that has come into the company.

So let's talk about
this $85,000, taxes payable.

When is that due?
How old is it? What's --

Amanda: It's past due.

[ Sighs ]

Lemonis: That is something
that scares me to death

because the shareholders
of the business

are personally responsible
for that.

Did you know that?
Amanda: No.

Lemonis: You can't hide
from taxes.

I can't fund into a situation
where I'm going to have any risk

that that's going to happen
to me.

I just can't do it.

♪♪

Amanda: I didn't know
it would do --

I didn't know at the time

that this is
what would happen at all.

[ Clears throat ]

Lemonis: I just don't want
to do it.

♪♪

If your business is in trouble
and you need my help,

log on to theprofitcasting.com.

Lemonis:
You can't hide from taxes.

I can't fund into a situation
where I'm going to have any risk

that that's going to happen
to me, and so...

Julie: I can pay that off.

I can pay off the $85,000

and just becomes
more of my equity share.

You know, it's a way forward.

I know it's scary, but don't
let fear hold you back.

Lemonis: I'm not sure
that Amanda necessarily

recognizes the magnitude
of Julie making this decision.

Your partner stands up and
solves a huge $85,000 problem

that potentially could've
blocked the deal from happening.

I mean, maybe it's stand-up-and-
give-somebody-a-hug time.

I'm willing to go in
for a couple of reasons,

but it's largely driven by
Julie is just like,

"I'll continue to help,"
which means she believes in it

and she believes in you,

so I'm willing to invest
$150,000 into the business.

but I'm going to want to own
50% of it.

You're going to need
more resources than money.

You're going to need
distribution.

You're going to need to find out
how the wholesale market works.

Amanda: I think my biggest
hang-up is the percentage,

is 50%.

I feel very obligated to
make sure you get paid back.

I think if you bought in
at 1/3 and we all could be

1/3 partners...
Lemonis: Okay.

Amanda:
...I'd be great with that.

Lemonis: Okay.
Then I'll put in $120,000.

Amanda: Okay.

Are you good with that?

Julie: Yeah.
Amanda: Yes.

Lemonis: And this
gets cleaned up?

Julie: Yes.

Lemonis: We're going to
make sure the taxes get paid

so that we're not exposed.

You will not be able
to have control

of the financial decision-making
like you did before.

Amanda: Please.
Lemonis: Okay.

[ Trombone playing ]

Really?
Amanda: Yeah.

Lemonis: Only in New Orleans.

Julie: I know.
Amanda: I know.

That's why I didn't even look,
because I'm used to it.

Lemonis:
Honestly. We have a deal?

Amanda: We have a deal.
Lemonis: Okay.

Julie: Thank you, sir.

Lemonis: Thank you, and
thank you for believing in her.

Julie: Tear up.

♪♪

Lemonis: I thought it'd be
a good idea to just get

as many people from the team
as we could together.

So I decided to invest $120,000.

I would say that the program
that you guys came through --

I would say that was probably
my single biggest motivation.

If you wanted to hire
two more workers tomorrow

from the YEP program,
could you find them?

Jackie: For sure.

Lemonis: Let's find people
that need a chance,

that want to make money,
that are super talented

and have them join our team.

So we're going to get
in the wholesale business.

Jackie: Yes.

Astra: You guys might lose me
from the factory

if you do that, though, because
I have a sales background.

I'm warning you.

Lemonis: If you love selling
and you're the --

Astra: I do.

Lemonis: ...and you're part
of making it,

then you're going to come
with me when we go wholesale it.

We're going to make
dramatic changes in the stores.

I don't feel like the stores
do a really good job

of telling the story
of what it is

and how it works and what are
the attributes of the product,

that it's handmade in New
Orleans by really cool people.

You have a lot of education
to do for consumers.

It's just a much bigger story.

Candidly, I'm questioning the
quality on some of the items.

In order to go wholesale it,

you're going to have to
make it a lot better.

Amanda: Right.

Lemonis: And the warehouse
honestly was a disaster.

It looked unkept.

It looked unorganized and should
have the proper equipment.

It should have the proper
inventory system

so they can grab from stuff.

Also, I want to see
if there's a way to add

a couple more textiles
to the mix.

Jackie: I've been waiting,
waiting for the chance.

Lemonis: If it's leather,
canvas, or something,

I want to try to break out
of everything

just being so one-dimensional.

Ready to go back to work?
Man: Oh, yeah.

Jackie: Yeah.
Lemonis: Okay.

I'll see you at French Quarter.
Amanda: Yes.

♪♪

Lemonis: So let me tell you
what I want to do.

I want to understand
sales conversion

so number of people that walk in

and the number of people
that leave with a bag.

It's a real big deal for me.

Customer conversion
is increasing the level

of information or enthusiasm
in the initial stages of meeting

to increase the possibility
of converting to a sale,

how to take a lead and
transact through the register.

All right.
So, you guys, work the store.

I'll work the door.
Amanda: Okay.

Lemonis: Okay.

You ever seen cork?

Man: Not quite like that.

Lemonis: This is actually
what cork is.

It's a layer around the tree,

and then you'll see
what they do with it inside.

Come on in!

Caitlion: We source
all of our cork from Portugal --

best quality, biggest industry.

Lemonis: Come on in.

Everything inside
is made of cork.

Do you know
where cork comes from?

Man: Cork? No.

Lemonis: Okay.
Do you know where it comes from?

Woman: From a pig.
Lemonis: From a pig?

Woman: You said pork.
Woman: From the tree.

Lemonis: Cork.
Woman: Oh, okay.

Lemonis: Amanda...
Amanda: Yes?

Lemonis: ...come on out.
Amanda: All right.

Lemonis:
Come on over here.

What does Amanda
need to do better

to get people in the store
to understand about QUEORK?

Woman: Maybe stand out here

and talk to people
as they're walking by

and get them to feel it.
Amanda: Right.

Lemonis: On that idea,
I'm going to grab an apron.

Woman: Nice.
Lemonis: Would you like

to feel my apron?
Woman: Yeah! I know.

Lemonis: Anytime you can engage
with a customer,

a little bit of enthusiasm may
actually turn into more sales.

So how would you describe
your selling style?

Amanda: I'm not
a bubbly sales person.

Julie: She's way more quiet
and introverted.

She wouldn't go out there
and drag somebody in here.

Amanda:
I don't like being pushy.

Lemonis: I'm not asking you
to be pushy.

Amanda: Right.
Lemonis: It is true

that you'll have to come
out of your shell,

but I need you
to have enthusiasm.

Amanda: Right.
Lemonis: We saw a lot

of people in one hour.
Amanda: Mm-hmm.

Lemonis: How much do you think
we did in an hour?

Amanda: Probably --
Lemonis: Is there a way to look?

Julie: Yeah.
Amanda: Yeah.

Lemonis: Let's look.

What is the sales for the day?
$6,193.

What does this store normally do
on a day like today?

Amanda: $3,000 would be good.
Chance: Mm-hmm.

Lemonis: So a good day?
Amanda: Yeah.

Lemonis: And so I think part of
what we learned today is,

what's the missing element
that would drive conversion up?

Woman: Knowledge.
Lemonis: Education, right?

Knowledge.
Woman: Yes.

Lemonis: Tell people
what the heck this is.

Okay, guys. Thank you.

Amanda: All right.

♪♪

Lemonis: It's been two weeks,
and I'm back in New Orleans.

And I'm excited to see
what improvements

to the warehouse
the team has come up with.

Joey: Welcome back.
Lemonis: Thank you.

This looks like new stuff.

Joey: Yeah.
I made those for you to see.

So this is all scraps
that we have,

and there's suede
and leather and cork,

and I just kind of
mixed them all together.

Lemonis: These are awesome.
Joey: Thanks.

Lemonis: Really good.
Don't you think?

Amanda: Well, you know
I'm not a color person.

Lemonis: Who made this?
Joey: Jackie.

Lemonis: This is solid.

Jackie, my only feedback
on this is straps.

They're too short, and then
back to the hardware issue.

It's just really junky.

Where are, like,
the zippers organized?

Like, where is everything?

Astra: In there.
Lemonis: And why --

So you have to just keep
going back and forth?

Astra: Yeah.

Lemonis: And so why wouldn't you
have it over here

close to where you're working?

Joey: This whole place
needs to be reorganized.

I think we all agree on that.
Astra: Definitely.

Joey: Yeah.
Lemonis: What is all this?

Amanda: Well, that's scrap.

Lemonis:
All of their accessories

are all over the place.

There's no one place
for the finished goods to be.

You're asking the folks
to be more efficient

and be more profitable,

but you're not giving them
the tools for success.

I guess the frustration
that I have with you is that

if you guys had a limited amount
of space, what would you do?

And if you had a limited amount
of resources, what would you do?

And it's almost like everybody
has just gotten comfortable

with [bleep] collecting,
and it doesn't really matter

because Julie will just
write another check.

♪♪

That's how it feels.

I don't want to put
all this pressure on you,

but right now, you're trying
to sell a commodity

and the story doesn't resonate.

And the viability of the company

is ultimately going to rest
on your ability

to tell that story,
or we should just go home.

♪♪

Lemonis:
It's almost like

everybody has just
gotten comfortable

with [bleep] collecting,
and it doesn't really matter

because Julie will just
write another check.

Frank: I think it's lack of
communication, though. Like --

Lemonis: Is it? From who?

Frank: From, like, us as a team.

We're not communicating
with one another on, like,

"Man, here, put this up."

Let's stop looking at this
and organize this this way.

Lemonis:
Well, let's get everybody else

and talk about that.

What I'm noticing in Amanda
early on is that

while she may internally
possess the qualities

to be a good leader,

she doesn't have the ability
to express those things.

It's confusing to me why
the place looks the way it does.

It's in total disarray.

It feels like
nobody really gives a [bleep]

Astra: I feel like
there's no rules

structured around
accountability.

Stuff doesn't get put away.

Nobody is in charge.

Lemonis: So how do we move
the ball forward today?

Astra: Let's get rid
of all those little,

tiny zippers and all those bins.

Lemonis: We're going to get rid
of everything.

♪♪

♪♪

Amanda: Oh, this is scraps.
We need that.

Lemonis: Amanda,
they need leadership.

Who's leading them?

This is more on you
than you think.

Amanda: You know, I'm being
pulled in so many directions.

I'm not doing a good job of it.

Every day, I do tell them,
"It needs to be cleaner.

It needs to be more organized."
Lemonis: Yeah.

I can sense that you're feeling
overwhelmed.

We need to translate
how hard you're working

into just working smarter,
good inventory management,

good raw-material management,
good production flow.

Amanda: I'm all for that.
I definitely am.

Lemonis: But let's all-for-it
to the truck.

Amanda: Right. Let's go.

♪♪

Lemonis: After meeting the kids
that work at QUEORK

and hearing so much
about the YEP program,

I asked Amanda
to set up a meeting at YEP.

My goal in this company is to
have the bulk of the workforce

come out of the YEP program.

We need website redesign.

We need logo improvement.

We need packaging.

We need a tag.

We want to have a combination
of design works,

bringing people on to
work under Frank on the floor.

Man: I can tell you is this --
Where you at now

is going to lead
to something else like that.

It's crazy because I didn't know
how much I was into sewing

until I got
in front of a machine.

Lemonis: Who's interested
in getting involved?

Let's get the buses moving.
Man: Let's do it.

Lemonis: Thanks, guys.
We'll see you soon.

[ Chatter ]

We got everybody?

I also wanted to take the team
to New York City

for one of
the coolest field trips ever,

and our first stop is Botani,

one of the greatest resources
for hardware in the entire city.

I wanted them to see not only
what was available to them,

but I wanted the resource
to be available.

Buy whatever zippers
you guys want,

whatever hardware you want,

and then take it back
and put it on product.

Man:
These Italian-made zippers --

you're not going to get
any better than this.

♪♪

Lemonis: I also wanted to
take the team to Unionwear.

Woman: Oh, my God.

Lemonis: It's a large-scale
manufacturer in New Jersey

that specializes
in a similar-type manufacturing

that QUEORK operates in today.

I want the kids and Amanda
to see if we grow big enough,

this is what's possible.

Man: You notice everything
is really organized here.

We got our setup time down
from about three hours

down to about 15 minutes
on embroidery,

just looking for thread.
Amanda: Wow.

Man: It would be way,
way easier, son.

Frank: Yeah, yeah.

Lemonis:
We're improving the process

and the quality of our products,

but I want Julie and Amanda
to understand

how critical it is
to enter the wholesale market,

so we're flying
across the country to meet

with a potential customer
that could be huge for business.

So the reason that I brought you
to Ferrari-Carano is,

they're one of
the biggest vineyards

in all of Northern California.

Is there a way to take
the product that you make

and penetrate wine country

and really see if there's a way
to expand the business?

In order to grow
our wholesale business,

we need more lines of revenue,

and when you think
about cork product,

the first thing that normally
comes to your mind, of course,

is the cork on a wine bottle.

And having been to wineries,

I know that all of them
have gift shops.

I also want to see how
you explain to the people

that are here what your business
is and why you're in it.

Amanda: Okay.
Lemonis: So let's go in.

Amanda: All right.

Oh, it's beautiful.

Patrick: This is a cork tree.
Lemonis: Holy moly.

Amanda: They cut into it,
and these guys,

usually the grandfather
who planted the tree --

Lemonis: And it doesn't
kill the tree?

Amanda: No.
Lemonis: I want to be

a tree hugger.

Please help us make money.

Please help us make money.

Candis: Hi, Amanda.
Amanda: Very nice to meet you.

Candis: Nice to meet you.
Julie: I'm Julie.

Candis: Hi, Julie.
Julie: Hey, Candis.

Nice to meet you.

Lemonis: This is
a big gift shop.

Patrick: This is
a big gift shop.

Candis: This is my baby.

Amanda: And so what is it
that you find people...

You know, you have
your best sellers in here or...?

Candis: Yes. Yes.

Lemonis: Candis, did Amanda tell
you what she does for a living?

Amanda: I'm sorry.

Lemonis: I don't sense
that they really understand

what's at stake.

Amanda: We specialize
in cork fabric

and make everything from
cellphone cases to handbags.

Candis: Okay.
Lemonis: We need the business.

We have to have it.

The program with the kids
depends on it.

Amanda: If you went
to another winery,

would they have a lot
of the same things in here?

Candis: We try not to.
Amanda: Okay.

Lemonis: I mean, it's like,
"Want to buy some cork product?

No? Okay."

Like, hello.

Candis: But every time
they leave the store,

we want something to go
as a memory.

Yeah, and what I feel
the customers will, you know...

Amanda: Buy.
Candis: ...buy, enjoy.

Yeah.

Lemonis: Are you bored?

Candis: But...

Lemonis: Why, yes, I am.

Amanda: Is it important
to you guys

to have things personalized
with your winery name

or...?

Lemonis: Honest to God,
I can't even stay [bleep] awake.

Amanda: It's Amanda.

Lemonis: Amanda, Marcus.
Amanda: Hey, Marcus.

Lemonis: I'm at the warehouse,

and it looks like
you guys got ransacked.

What the...?
Geez, what did I...?

Amanda: Is it important
to you guys

to have things personalized
with your winery name or...?

Lemonis: Honest to God,
I can't even stay [bleep] awake.

Look, my problem with Amanda --
it's a confidence issue,

and I'm really struggling
in my confidence with her

as our company's leader.

What is Amanda going to do
when I'm not here?

Candis, let me make it
a little easier.

Look at their shoes.

Candis: Cute.
Lemonis: Look at their bags.

Candis: Cute.
Lemonis: Look at their belts.

Candis: I love your shoes.

Julie: Thank you.
Amanda: Thank you.

Lemonis: I think what the ladies
failed to tell you is

they employee people
from a program in the city

that gives people an opportunity
to fix their lives.

Well, the two of them
are giving them a chance

to put their hands
and their minds to work.

Candis: Love that.
Lemonis: Huge social impact.

Candis: Real cool.
Lemonis: Real cool. Okay.

Candis: I love it. Yeah.
Lemonis: Okay.

Lemonis: These are
some samples of things.

Candis: I love this.

Amanda: This is actually
one that's new.

Candis: This is fun.
Amanda: It's very popular.

Candis: I love these.

Lemonis:
What do we retail that for?

Amanda:
$39 is what we retail it for,

and it sells very well at that.

Lemonis: And you may be able
to buy it for $10.

Candis: I like it.
Amanda: Yeah.

Candis: I can see these flying
out of here.

Lemonis: And so we're looking
to make a reasonable margin

so we can keep
these young folks employed.

Candis: Yes.
Lemonis: And we're looking to

make sure that you're able
to make the kind of margins

that you want to make but also
know the story behind it.

Candis: I love your story.
Lemonis: Thank you,

Candis, very much.
Candis: Thank you.

Lemonis: We really
appreciate it.

So how did you think that went?

Amanda: I thought it went well.

Lemonis: Julie,
you got to help me here.

Julie: If her job
is to sell product,

you got to tell the whole story.

The story certainly is, if
nothing else, a selling point.

Lemonis: The story
doesn't resonate.

I don't know the people
that made it.

I don't know
why the factory exists.

This isn't a cork business.

This is a business
around a social program,

and if she can't really
figure out the difference

between the two, then I have
no idea what I'm doing here.

Their livelihood and
the viability of the company

is ultimately going to rest
on your shoulders

and your ability
to tell that story.

Amanda: Right.
I just don't think I realized

how important it is
to everybody else.

It's everything to me.
Lemonis: Is it?

Because you don't really --

It doesn't really roll off
naturally for you.

Amanda: It really does
mean everything to me,

and it's been something
that I've fought for

because when you watch
what happens to somebody

becoming confident like that,

and, you know, to me,
they're like my kids.

Lemonis: That is
really important to you,

and so let that out.

Think about that,
how strong that pitch is.

"Do you want to change the life
of some of these young kids?"

"Yes, I do."

"Well, great.
Let me tell you how."

Julie: Yep.
Lemonis: Okay.

♪♪

After being gone
for a couple weeks,

I wanted to make a quick visit
to the store

in the French Quarter.
Oh, hey, Julie.

Julie: Hey, Marcus.
Lemonis: What's happening?

And I wanted to see
what has been done since I left.

Did they make the new tags?

Did they do everything
that I asked for?

What's the progress look like?

Caitlion: With all of
our new equipment,

now we can make bags like this.

Lemonis: And these are
the new zippers.

Julie: Right.
Caitlion: New zippers, yes.

Lemonis: They're the ones we got
in New York, I think.

Caitlion: Yeah.
Julie: Yuh-huh.

Lemonis: Wow.
Look at the difference.

Caitlion: Isn't that nice?
Lemonis: A lot better.

Caitlion: Yes.
Julie: Like butter.

Lemonis: That's
totally different.

Caitlion: Yeah, and the inside,
Frank did that bottom.

Lemonis: So the quality
has gotten better?

Caitlion: Oh, yeah.
Lemonis: It's awesome.

I'm surprised that none
of the products

have all the new tagging on it,

and then where's all
the messaging about the product,

the history, the tree,
how it works?

Julie: It will happen.

Lemonis: It's disappointing.

I want the customer
and the staff

to be able to understand

the story of why we're making
and selling these products.

Amanda didn't do any of it.

I want to make sure
we're on the same page,

so while I'm here, I'm going to
check in with Amanda.

♪♪

[ Horn honks ]

♪♪

♪♪

What the...?

♪♪

♪♪

[ Ringing ]

Amanda: It's Amanda.

Lemonis: Amanda, Marcus.
Amanda: Hey, Marcus.

Lemonis: Where are you guys?

Amanda: What do you mean?

Lemonis: I'm at the warehouse,

and it looks like you guys
got ransacked.

Amanda: [ Chuckles ] We moved.

Lemonis: I don't remember
ever talking about moving.

Amanda: I started looking,
and I found another space,

basically the same price.

Our lease is coming due there
and so --

Lemonis: When is
the lease up here?

Amanda: August.

Lemonis: So it's 2 more months.
Amanda: Yeah.

Lemonis: Can you text me
the address?

Amanda: Yeah.
Lemonis: Okay.

Amanda: All right.
Lemonis: Okay.

Bye.
Amanda: Bye.

Lemonis: I think for me
more than anything else

is the way she left the place.

It's the lack of communication

and the lack of respect
for the goods.

I don't like it, not one bit.

What the...?

Geez, what did I get myself into
with these people?

♪♪

What the...?

Jackie: Right?

Lemonis: I didn't know
you guys moved.

Why did you think it was
a good idea to move that quick?

It just, like,
didn't happen with a plan.

Amanda: It did, though.

Lemonis: Well, when you go back
and you look at the warehouse,

it doesn't look like you left
with a plan.

It looks like you left
in the middle of the night

because there's [bleep]
everywhere.

Amanda: I had a builder come out
and bid to get the space

to be air-conditioned.
Lemonis: Right. Right.

Amanda: It was $129,000,
so I went to the landlord,

and she said that she would
want to raise the rent.

Lemonis: The landlord wanted us
to put the $120,000 in,

and she wanted to...
Amanda: And raise the rent.

Lemonis: ...raise the rent?
Uh-huh.

Amanda: So we started
looking for other spaces.

We've got a place
that is the same price.

Lemonis: I'm not arguing
with your business logic.

I'm arguing with the process
to get there.

Your argument is solid.

It's just that you made
that argument,

in my opinion, without me.

In this particular case, it is
hard for me to be tough on her

because the final product
is good,

but I want her to understand
that there can be a process

to do both, make good decisions
and be a good communicator.

Can I get a quick tour?
Amanda: Oh, yeah.

Lemonis: Okay.

Hey, you got a nice break room.

Amanda: Yeah.
Lemonis: It just feels --

Amanda: And even up there,
they all love it, you know?

Lemonis: How much
is the rent here?

Amanda: $4,128.

Lemonis: $4,128?

Amanda: Mm-hmm.
The other one was $4,119.

Lemonis: I mean,
it's a better space.

Amanda: Mm-hmm.
Lemonis: I'll give you credit

for finding it.
Amanda: Yeah.

Lemonis: And you did a nice job
finding it.

Amanda: Now everything
is laid out

so that they can get
what they need quickly.

Lemonis: This is cool.

Amanda: That's an automated
sewing machine,

one of the new machines.

We're going to use it
for all the box Xs,

the zipper-tab pulls,

all the little things
that have to be perfect.

Lemonis: What does this do?

Amanda: Scrap would
run through here.

It gets painted, and it goes
immediately into a dryer.

Lemonis: Amanda and the team
have continued

really bringing this business up
to the right standard.

They've laid out the equipment
in a way that allows

for an assembly-like
production process,

and they've bought new equipment

that will dramatically improve
the quality of the goods.

Amanda: Want to take
a peek in the hardware room.

Lemonis:
Oh, my God. Look at this.

Different widths,
different colors --

it's the way
it's supposed to look.

You guys are kind of legit now.
Amanda: So this is inventory.

We've been doing
what you told us,

manufacturing where we do
a whole bunch at once.

Lemonis: Stuff looks good.

We've put an inventory system
in place.

All of those things combined
will result in one thing --

increased capacity

and the ability
to take on a huge order.

We have a meeting set up
with Wine Enthusiast.

It's a huge account opportunity.

Everybody has an opportunity
to grow their career

and make more money,

so we want to have some samples
ready and some products ready.

Make sure everything looks
flawless, visual presentation

so they understand
the story behind the company.

What is the company? What is it?

How do you say it?
What do we do? Why do we do it?

Amanda: Okay.
Lemonis: Okay.

Astra: Got some work to do.

♪♪

Lemonis: I set up a meeting
for Amanda and Astra

at Wine Enthusiast in New York.

Wine Enthusiast specialize
in selling products

to people that like
and live the wine lifestyle.

If you're going to get a way to
sell into wholesale, this is it.

We're meeting with the owners
and their buyers.

I think the most important thing
that I want to see out of you

is enthusiasm for the people
like I've never seen before.

The Wine Enthusiast catalog
today gets circulated

to approximately
two million people.

If we succeed,
we could take the business

from a small business
in New Orleans

to a legitimate business
in the United States.

Amanda: So, my name
is Amanda Dailey,

and my nickname
is the Queen of Cork.

Sybil: [ Laughs ]

Amanda: And we basically
make and sell

any usable product that we can
using cork fabric.

We do that by training and
empowering some very talented

but underserved
New Orleans youth that --

Sybil: Fantastic.
Amanda: Yes.

There's a whole big problem
in New Orleans

with the youth
not having opportunity,

and so I just feel like there's
so much more that can be done.

Watching their transformation,
you know,

people who were dishwashers
and didn't have a chance,

they've got a trade
that they're very proud of,

and to see who they've become

over the last few years
is just --

It's something I hope everybody
can experience because it works.

It really does.

So this is a lot of our
most popular products.

Astra: Our customer
is very interested

in authenticity
and sustainability.

There's not a cork shortage.

The cork tree can be harvested
every three years.

Sybil: Well,
this is very interesting

that you presented this
because travel with wine,

bottles specifically,
has been a huge trend for us.

Nancy: But there's some
product development

involved there because

in order to hold
your wine bottles,

you need protective inserts
in which,

you know, the customer
can divide their wine.

They're not just going to
throw this in here.

How can we tie the marketing
of it back to our customer?

Lemonis: Anytime you go
into a pitch meeting,

you expect the seller
to be prepared for any objection

that the potential buyer
may have.

Glenn: Have a lot of success
with used corks.

How do we sell this to
the Wine Enthusiast customer

just that, okay, it happens
to be the same material?

Lemonis: This is that moment,
and my biggest fear is

can Amanda actually handle it?

Sybil: We would only carry --
If we were to carry anything,

we would only carry
one or two products.

Nancy: From a development
standpoint with everything

that I see -- needs some work.

Amanda: Okay.

♪♪

Lemonis: For exclusives,
extras, and business advice,

visit theprofit.cnbc.com.

Sybil: We would only carry
one or two products.

Nancy: From a development
standpoint with everything

that I see -- needs some work.
Amanda: Okay.

Cameron: Do you guys have
an in-house design team,

or how is that handled?
Amanda: We do.

We can do just about anything
that you want us to do.

Cameron: Are these margins
sustainable?

Because that's, like,
the worst-case scenario is,

you come back to us and say,
"Actually,

you know, we didn't have
the infrastructure in place,"

so do you really feel like
you can maintain this

with the production
you have now?

Amanda: Definitely.
It comes down to the equipment

that Marcus invested in,

and so that's
where we are right now.

Lemonis: I'm really impressed.

Every time Wine Enthusiast
is throwing an objection

at Amanda about customization,
about volume, about delivery,

they had an answer
for everything.

Sybil: So if we were to revise
this bag

to accommodate three bottles,

which is the magic number
for us,

I would forecast
that we would sell about

1,500 pieces in 8 weeks.

How much notice do you need?

Amanda: For that kind of volume,
the lead time is four weeks.

Ideally, we're the only one
selling that product.

Glenn: Exclusivity?
Sybil: Exactly.

Amanda: Yes.
Sybil: That's key for us.

Amanda: Our goal is to obviously
educate the world

and sell as many
cork products as we can.

Sybil: This has been one of
the most interesting stories

I've ever heard.

It's fantastic.

Your passion --
it's so exciting for us

because that's not
very common these days.

Amanda: Sounds like all
the things that you guys want.

Sybil: I think we can certainly
do something together.

Lemonis: After getting
that reaction from the buyer,

I don't want to say that I got
goose bumps all over, but I did.

I thought you did
a significantly better job

than the first time
we ever talked to somebody.

Amanda: For the most part,
you know,

I feel like they got
the gist of who we are

and that we're passionate
and that we,

you know, have a little more
than just a product.

Lemonis: I thought
you did amazing.

Astra: Thanks.

Lemonis: I feel like
it's a completely different

business today
from a mind-set standpoint.

Astra: All of the changes
are exciting, positive,

and they're really
going to propel the business

into the future.
Lemonis: Good job

to both of you.
Amanda: Yeah.

Lemonis: Good energy,
good excitement.

You want to call the team
and let them know how it went?

Actually, you should call Julie.

Amanda: She's in a trial.
Lemonis: Oh, she is?

You think she's going to
be happy about this?

Amanda: Yeah, for both of us.

This is fantastic.

Lemonis: While I'm happy
that the meeting with

Wine Enthusiast went great,

I'm glad that Amanda has done
a much better job

of communicating with Julie
not only as a partner in life

but as a partner in business,
but what I'm really happy about

is how the
Youth Empowerment Program

has really grown
inside the company.

We've hired more kids,

and they're working on
creating new messaging,

new tagging,
new point-of-purchase material.

We're giving these folks
the chance to tell their story.

Do I think Amanda
has made great strides?

Yes.

Do I think I'm still going to
have to push her

and get her to be focused?

You bet, but I do feel like
she now understands

what's really important
in this business,

and if she does that,
she'll make a very good profit.

Lemonis:
Good job to both of you.

♪♪