Original subtitles

Lemonis: Tonight, for the first time ever

on "The Profit"... [ Indistinct conversations ]

Lemonis: ...we'll see a business get built...

Xavier: Oh, jeez. Lemonis: ...from the ground up.

I think it's going to take $2 million initially.

Lemonis: And you may even recognize these two.

Charlotte and Skyler were partners in a business

I attempted to invest in in season five,

the Casery, the cell phone accessory company.

Charlotte: Oh.

Lemonis: Charlotte headed up the design team

and has a great eye... These designs are awesome.

...while Skyler oversaw operations

and a number of other things.

Skyler: I also take on the CFO responsibilities.

Lemonis: That's an interesting crossover.

But ultimately, they both reported to Matt, the CEO.

Matt: Try not to be an [bleep].

Lemonis: I'm not an [bleep] here.

Charlotte: From day one.

Lemonis: And Matt, well, he was just about impossible.

Skyler: Matt is really overconfident,

thinking that he knows what's right.

Lemonis: Not only had he made some seriously

misguided business decisions...

Is this only for girls? Matt: Yes.

Lemonis: ...but he was always undercutting

Charlotte and Skyler's authority.

Matt: Well, now these guys have it that they can do

whatever the [bleep] they want.

If I'm acting CEO, we go with my decision.

Lemonis: He would ignore their ideas.

Charlotte: I just think we need a leader

that puts the company first and not himself.

Lemonis: He was nasty.

Matt: I literally did with Charlotte.

We stepped the [bleep] out.

Lemonis: You don't have to get that crazy.

And while I tried my best to help the business,

even lining up a huge opportunity with T-Mobile...

And we're going to bring you designs

that are exclusive to you

that we will not put in the market.

Matt: No. Lemonis: ...he just blew it all,

and finally, I reach my boiling point.

You're a smug prick.

You have disrespect towards her

and disrespect towards him,

and they've done nothing but eat from a bag of [bleep]

since I met you.

And I walked away, but just a few days later,

I got a phone call from Charlotte.

Oh, really?

Well, this is what happened next.

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."

♪♪

♪♪

Charlotte: You ready? Skyler: I'm excited.

Charlotte: Yeah, me too. Lemonis: It's only been

a few days since I walked out on the Casery,

but I have these two people in Charlotte and Skyler

that have a ton of talent

and a lot of knowledge about the accessory business.

Charlotte: Hi. How's it going? Skyler: Hey, Marcus.

Lemonis: How are you?

And I have this relationship with T-Mobile where I had

a huge meeting set up, and for me to miss out

on that opportunity doesn't make any sense,

so if I want to really make some money,

I have to figure out how to put all of this together

in a very short period of time.

How you guys feeling? Skyler: Still nervous.

Just before we came over here actually we had

that conversation with Matt and, like, told him our decision,

that we're not going to be continuing to work with him.

Lemonis: Oh, you did? How did that go?

Charlotte: Yeah. It went pretty well actually.

He didn't seem that surprised,

so I don't know if maybe he kind of saw it coming.

Lemonis: Or he's playing poker. Charlotte: Exactly.

Lemonis: Well, let's go sit down, and we can talk about it.

What are Sunshine and Xavier thinking?

Charlotte: They want to come with us.

Lemonis: They do?

Charlotte: Yeah, they want to leave the Casery.

Lemonis: So let's talk about the deal.

Skyler: Well, you know, we'd really like

to get a couple products developed quickly

and, you know, really start generating some revenues.

Lemonis: You essentially just need somebody

to finance your inventory.

Skyler: Exactly. Charlotte: Yeah.

Lemonis: I think it's going to take $2 million, initially.

From my perspective, I'm putting money in,

and you guys are putting money in.

Your form of money is,

like, your brains and your work,

and the $2 million, it can't be equity.

Skyler: Why is that?

Lemonis: Because if I put $2 million in,

and you own 51 percent,

it'll be like I gave you a give of $1,000,001.

You'll get a tax bill from the IRS,

and so we have to figure out how to structure it

in a way where it's not seen as a gift.

It's seen as a preferred investment,

and so I get my $2 million back before any profits are taken.

And if the company makes a ton of money,

you guys can pay it back in time.

In order for a business to start from the ground up,

there's a couple of things that you have to factor in,

start-up costs, including payroll,

and once the orders start flowing in,

you have to buy the inventory.

You have to deliver it to the company,

and then, ultimately, you have to wait 30,

60 or 90 days for payment.

As the orders get bigger, there's more money

that's required to finance those receivables,

so $2 million sounds like a pretty reasonable amount

with getting an account like T-Mobile.

I'll have 49 percent. You'll have 51 percent.

I don't have to have any operational control,

any payroll control, no creative control,

but I have to have financial control.

Charlotte: Mm-hmm.

Lemonis: Does that make sense to you guys?

Skyler: That works for us. Charlotte: I think so, yeah.

You are 49.

We're 51, and we, you know, will split that evenly.

Lemonis: Who's going to be the CEO of the business?

Skyler: That's what we hadn't really decided, but --

Charlotte: Well, we talked about it.

Lemonis: I'll do it for you. I think it should be Charlotte.

Skyler: But, like, I do have a lot of background

in product development, and, you know,

a lot of my experience and skills

are moreso than just being in operations.

Lemonis: I think it should be Charlotte,

not because you're not qualified but because I feel

like Charlotte really is more even-keeled than you are,

and every leader needs a sidekick, and you're that guy.

Skyler has a deep knowledge of the manufacturing side,

the production side,

where Charlotte really understands

the design component, and candidly,

I think she's ultimately better with big clients like T-Mobile.

She's friendlier.

She's warmer, so they complement each other.

So the meeting with T-Mobile is scheduled for, like,

a little more than a week from now.

Skyler: Yes. Charlotte: Yep.

Lemonis: And I did not cancel it because I didn't want

to send them into a spin. Charlotte: Right.

Lemonis: The time crunch is real.

We're talking about boards, a brand, new designs

that are totally different than the Casery.

Charlotte: Right. Lemonis: More gender-neutral

so that you're addressing the entire phone market.

Charlotte: But it's really important to me because

I don't think that we did this very thoughtfully at the Casery.

It's important to me to take everything into account --

corporate culture and our colors,

and have all of it work together

where the colors and the font of our logo

even ties into how we relate to our employees.

Lemonis: Yep, that's important. Charlotte: Yeah.

Lemonis: So you guys need to set up an new LLC.

You should get a quick articles of incorporation set up.

Charlotte: Yeah.

Lemonis: What about the name of the business?

Skyler: That's going to be really hard for us.

Lemonis: Well, what are you telling T-Mobile?

"What's your name?" "We don't know yet?"

We need to lay out, like, packaging.

Probably need to decide by tomorrow.

So, Charlotte, what I'm looking for you to do is be that leader.

Charlotte: Mm-hmm. Okay.

Lemonis: It's your business. Charlotte: Okay.

Lemonis: Matt never gave Charlotte the chance

to be a leader, and it's going to be interesting

to see how she handles these new responsibilities,

especially under a tight time line.

Charlotte: There'll be some serious brainstorming,

but I think we can do it. Lemonis: Holy [bleep].

There's so much to do. Charlotte: Yeah.

Lemonis: After T-Mobile, we have to actually deliver it.

Skyler: You have to have a supplier to fulfill, right?

Charlotte: Yeah. Right, right.

Lemonis: In any account, there are really two parts

to actually doing business:

landing the pitch and getting the yes and then the hard part,

which is actually fulfilling the order.

Skyler: We still want to go to China as well this month.

Lemonis: Before the meeting? Skyler: After the meeting.

Lemonis: Oh. Okay.

Charlotte: We want to be able to go to the show

where we can source new products.

Skyler: Is there anything else that you want for your investment?

that you want for your investment?

Lemonis: Yeah, I just want you to treat each other

with respect. Skyler: Okay.

Lemonis: That is the single biggest reason

I couldn't do business with Matt.

Charlotte: Mm-hmm.

Lemonis: He just wasn't respectful to his people.

So come prepared to work. Charlotte: Sounds good.

We're going to go long and late.

Skyler: That's right. Charlotte: Sounds good.

♪♪

Good-bye, pink door. Skyler: Bye, pink door.

Charlotte: Good-bye, pink street.

Lemonis: I'm excited to get the ball

rolling on this new project.

The team is moving out of their old Casery office...

Charlotte: To get ready for T-Mobile and stuff,

we need a lot of...

We're going to need you guys a lot.

Lemonis: ...and into my office, in Downtown LA.

Charlotte: Thanks for having us. Sunshine: We're here.

Lemonis: What? Charlotte: Oh, my god.

Sunshine: We're excited.

Lemonis: And with 10 days to actually get the pitch ready,

there is no time to waste.

Okay. Come on. I'm going to show you your space.

Xavier: All right Charlotte: Cool.

Oh, my gosh.

Xavier: That's pretty sweet.

Charlotte: This is so cool.

Lemonis: Maybe, Charlotte, we can start

with your T-Mobile plan,

and it's, like, literally 10 days from now.

Charlotte: Ten days.

Xavier: I ain't scared.

Lemonis: What? I am.

You're not scared, but I am.

So, Charlotte, we'll give you the board.

We'll pull some chairs up, and we'll start making

a list of things we need to do. Charlotte: Yeah. Okay.

Sounds good. Lemonis: Ooh!

Charlotte: First thing we need is a name.

We need brand identity. Xavier: Yeah.

Lemonis: What about people's roles?

How are we going to get to the finish line

if nobody knows what anybody is doing?

Charlotte: Okay.

So, I mean, I really want this to be all of us.

Skyler: Right. Charlotte: But the people

who are going to be truly, truly responsible --

I mean, I'll be completely responsible for it,

but I'm going to really need you, Xavier, and you,

Sunshine, obviously, and then, of course, you as well.

Lemonis: What about -- Whoa, whoa, whoa. Whoa, whoa.

Everybody has got to have a very specific role

between now and 9 days from now.

Charlotte: Yeah, but, I mean,

we want it to be a collaborative thing.

Like, we want to know what you can be responsible for,

what you want to be responsible for and kind of come to,

like, a happy medium on that, so this will be all.

Lemonis: Well, no, but what are the job responsibilities?

This idea of everybody sort of having a little bit

of everything isn't going to work.

I think Charlotte struggles

because she doesn't want to offend anybody.

She doesn't want to make a mistake.

She wants everybody to feel included.

The sign of a good leader is being able

to do that and delegate.

Who's taking the presentation?

Charlotte: Who's, like, actually doing it?

Lemonis: Yeah. Charlotte: I mean, I will.

Lemonis: Okay. You're the face of the business,

and you're the voice of the business.

Charlotte: Okay.

♪♪

Lemonis: After the roles were assigned,

the team spent the next few days setting up their office...

Charlotte: Anything that's in cardboard boxes,

we need to take out.

Lemonis: ...developing new designs

and coming up with a new name

and a branding strategy for the company.

You guys had some stuff to show me?

Charlotte: We just want to show you everything

that we've been working on the last couple days.

Lemonis: Okay. Charlotte: All right.

So here's our new logo for Everkin

because our line is really for everyone,

and the swoop really kind of, like -- It's like a hug.

It just, like, brings everyone in.

I mean, before, it was really for women.

Skyler: It's really accessible for everyone.

Lemonis: I think you guys did a great job with it.

I love the fact that they came up with a name

that really represents all of their collective thoughts.

I also like the fact that Charlotte really led

that process for the first time.

Charlotte: And it's a catchy name,

and, like, we can really play with it, like,

I don't know.

Lemonis: Charlotte, when you say "I don't know,"

they're going to smell any lack of confidence.

Charlotte: Okay. Got it.

Lemonis: And I want you to deliver it with, like,

dead stop confidence. Okay? Charlotte: All right.

So now we have some...

We kind of just put together boards.

So this is, like, our bread-and-butter

Everkin line, so it'll be marbles and textures.

Lemonis: What do you think I'm thinking?

Charlotte: That's too similar?

Lemonis: I think the bottom two, for me,

are too close to the old company.

Charlotte: But, like, there are a lot of companies

out there doing marble.

Lemonis: For me, they're a no.

Charlotte: No, I don't agree with you.

I think this is really awesome.

Yeah.

Lemonis: Is this your guys' first presentation like this?

Xavier: Yes. Lemonis: It kind of shows.

Charlotte: Marcus.

Everyone is already freaking out,

and, like, we know what's [bleep].

Lemonis: But you're kind of putting it on me

as if I'm bringing the energy down.

Charlotte: You are.

Lemonis: Because you're not ready.

Lemonis: I think the bottom two

are too close to the old company.

For me, they're a no.

Charlotte: No, I don't agree with you.

I think this is really awesome. Yeah.

Skyler: We can't just not do marble prints.

Lemonis: Yeah, but we know that white

and pink was sort of their...

They don't own marble, but they sort of the corner

on white-and-pink marble.

Charlotte: But Sunshine was up until 3 a.m. last night working.

Lemonis: I know that you guys came up with those.

Xavier: Yeah, yeah. Lemonis: So I know that's like,

"Wait a minute. That came out of my head."

It did, but what I want to avoid, Charlotte,

is any possibility of anybody,

including the customer, feeling like you hijacked something.

Charlotte: Right.

Lemonis: I don't want anybody ever questioning your integrity.

My job is to protect you guys.

Charlotte: I -- Yeah. No, I get that.

Lemonis: Go get some sleep.

Skyler: Woo! Charlotte: Sunshine.

Lemonis: Thanks, guys. Xavier: Awesome.

Thank you.

♪♪

♪♪

Lemonis: Hey, guys. Sunshine: Hello.

Charlotte: Hi.

Lemonis: Have you gotten any sleep?

Sunshine: No. Xavier: No, no.

Lemonis: You look like death, but I'm glad

that you're working hard.

Do you guys want to do a presentation?

Charlotte: Okay. Let's get it set up.

Lemonis: All right. Let's go through it.

Charlotte: Okay.

So thank you guys for having us today.

We're really excited to be here.

So the last time we saw you, Jon...

Lemonis: My name is...? Charlotte: Jon and John?

Lemonis: No. No.

Charlotte: Oh, that's right. I didn't do that.

Lemonis: Your name. Charlotte: I'm Charlotte.

I'm the CEO, and I'm excited to tell you about the brand

that we've been developing for the past week and a half.

Lemonis: So you guys have been working

on this a week and a half?

Is the company essentially brand-new?

Charlotte: Well, we've -- The four of us have been

in the cell phone accessory, mobile accessory, um...

Skyler: Industry. Charlotte: ...industry --

Thank you -- for the last 3 years.

Lemonis: Your energy is going to be better tomorrow, right?

All of you? Pick up the pace a little bit.

Charlotte: So we, um...

[Bleep]. Lemonis: Okay.

I just want to tell you guys something, any of you

at any point throughout the presentation, pipe in.

Anytime you seem the fade, keep their attention.

I'm not going to give Charlotte a pass here.

I know she's tired, but if you want to be the CEO,

that's what comes with the territory.

Charlotte: So we've been working to create this brand.

It's a case for everyone, and the name is Everkin.

Lemonis: It looks like the customer skews female.

I wouldn't necessarily put them on my phone particularly,

but I like the fact that they all

have a different feel to them.

And it feels like there's some gender-neutral

designs here.

I'm not totally in love with the designs.

What worries me are some of the same issues

that worried me at Casery.

They skewed very female, but I feel like telling them now

will take them off their game.

I just hope that T-Mobile doesn't feel the same way I do.

Lemonis: Okay. I think we should stop.

Okay. All right. Get some rest. Charlotte: Okay.

Thank you. Lemonis: Good job, guys.

Skyler: How big are the easels?

Can the easel hold that many boards?

We're going to have to open the easels up here

and test it out first.

Charlotte: I don't want to open all of them.

They're, like, in tight little boxes in my taped up thing.

The easels are the easels at this point.

Skyler: All right. Xavier: We're too tired.

♪♪

Charlotte: We just got to hustle.

Lemonis: Today is a bigger day than I think they even realize,

and while I hope that they're rested,

what I hope for more than anything

is that they're prepared.

Xavier: Oh, jeez.

They didn't even label the pieces.

Charlotte: They split. Look.

Sunshine: Oh, no.

Xavier: Yeah, maybe it's like this, Sunshine.

Lemonis: Hi. Charlotte: Hi.

Skyler: Hey, Marcus. Lemonis: How are you?

You guys know that we're starting in, like, 5 minutes.

Xavier: We're aware of that information.

Sunshine: We didn't get up into this room

until a few a minutes ago,

so we're trying to just hustle it together.

Lemonis: Okay. But you are just setting up the easels now?

You didn't preset them up?

Charlotte: They were supposed to be really easy to set up,

and they're not as easy as...

Lemonis: Okay. I think actually, you guys,

we're going to have to abandon the easels.

Skyler: I wouldn't be opposed to that.

Lemonis: Well, we just don't have a choice.

I'll just -- I'll be your easel.

Skyler: Kill the easels. Lemonis: But we're out of time.

Xavier: Kill it. Lemonis: So put them away.

Let's get this stuff put away.

Did you guys bring this up?

Charlotte: Yes. We need to put it away.

Lemonis: [ Bleep ]

Is this your guys' first presentation like this?

Xavier: Yes. Lemonis: Okay.

Because it kind of shows.

Charlotte: This is for you, Marcus, if you want it.

Lemonis: Okay. I definitely want it.

And what time is it right now? Skyler: 12:02.

Lemonis: And what time was the meeting supposed to start?

Skyler: 12:00.

Lemonis: So we need to, in the future, be ready,

even if you have to get stuff ready downstairs.

Charlotte: Marcus, everyone is really down and freaking out,

and I need your help to pump them up.

Can you help me do that? Lemonis: You need to do it.

Charlotte: I know, but I need you to come in here

and also really...

Everyone is already freaking out, and, like, we know what's

[bleep] and we just need to... Lemonis: Okay.

Well, you guys need to -- Charlotte: Thank you.

Lemonis: You guys need to -- Charlotte: All right.

So let's get these boards in the right...

Lemonis: Charlotte. Don't put it on me.

I don't really care that Charlotte is frustrated with me.

She's the leader.

She asked for this job, so don't get frustrated with me

because you don't have your act together.

Charlotte: I just --

Lemonis: You're kind of putting it on me

as if I'm bringing the energy down.

Charlotte: You are.

Lemonis: Because you're not ready.

Charlotte: No, we're not, and we know.

Lemonis: No, I know, but what I'm not going to do

is tell you how wonderful you are when you guys aren't ready.

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

log on to theprofitcasting.com.

Lemonis: You're kind of putting it on me

as if I'm bringing the energy down.

Charlotte: You are.

Lemonis: Because you're not ready.

Charlotte: No, we're not, and we know.

Lemonis: No, I know, but what I'm not going to do

is tell you how wonderful you are

when you guys aren't ready.

If you're wonderful, I'll tell you.

If you're not, I'll tell you,

and that's the best way for us to roll.

This relationship has to be built on truth.

While I'm frustrated that they're not prepared,

I do like the fact that Charlotte is standing up

for herself because the sign of a good leader, in my mind,

is one that is willing to not just be a yes-person.

Charlotte: Hi. Xavier: Yo.

Sunshine: Hi. Charlotte: How are you?

Woman: Good. Thanks.

Skyler: Welcome, welcome. Man: So...

Charlotte: Well, thank you, guys.

First of all, thank you so much for having us.

I'm the CEO, Charlotte.

Skyler: I'm the COO, Skyler.

Sunshine: Designer, Sunshine.

Xavier: Also a designer. My name is Xavier.

Charlotte: So I just want to let you know

what's been going on the last couple of weeks.

We kind of realized the company was not being run

the way that we wanted it to be run,

so we were really focused on one single customer,

and we wanted to break out on our own,

and we've been doing this for 3 years.

Skyler: And even though that we're a new company,

like, we're totally ready to go with

any of the requirements that you guys might have,

whether it's logistically or anything like that,

so, you know, we're ready to fulfill.

Xavier: So, first off, thanks for coming to see us.

We really appreciate it, and when it comes to Everkin,

we really wanted to make a case for everybody,

a product for everybody.

We wanted everyone to feel like kin.

Jon: I think it's great.

Sarah: I especially like that it has a story

and that there's meaning to it.

Sunshine: Cool.

So what we really want to do at Everkin

is take what's hot and new

and make it more special and make it ours.

For example, on this board,

we have a whole bunch of marble cases,

but we're not just slapping marble textures onto cases.

We're doing something more.

Sarah: Let me ask you about -- These are the designs.

What about the protection element?

How will this really protect my phone?

Skyler: I mean, for us, the case is a functional product, right?

We're committed to having at least

a 6-foot drop test or better... Sarah: Okay.

Skyler: ...which is, you know, above standard.

Sarah: Mm-hmm.

Lemonis: What do you think of the designs?

How does this feel to you, gender-wise?

Sarah: Very skewed female.

Jon: Yeah, I agree. Lemonis: Heavily skewed?

Jon: Not heavily. Not for me.

Sarah: Really? Jon: Yeah.

I would say -- Sarah: You'd wear... Okay.

Come on. You'd put that on your case?

Jon: I'd...

Sarah: Honestly.

Lemonis: Is there anything on this board

that you would put on your phone?

Jon: I would put that one, the lower right.

Sarah: I actually would say, my LA friends,

if you were to think about our LA team,

many of the men might go for that.

Jackson: I totally agree. Sarah: The gold is so on-trend.

Jackson: Yeah.

Sarah: And the mixing, the marble with the gold,

I haven't seen anything like that.

It looks fantastic, and I think

that these have a sophistication to them.

Xavier: Aside from that, we really wanted to,

you know, make sure we hit that T-Mobile magenta

into the designs that we made

because it would be really cool for the customer

to get something that is branded T-Mobile

but doesn't, like, feel like it to them

so that they're walking around showing off this cool case,

while at the same time, your brand is being extended.

Sarah: This was smart of you because there are the people

who are fans, and that was nice.

Jon: Wow. That's impressive.

Jon: Hey. How are you? Charlotte: Hi.

Lemonis: How are you?

Charlotte: Hi, I'm Charlotte. John: Hi, Charlotte.

I'm CEO. Nice to meet you.

John: Oh, cool. Yeah. Young and smart people.

Lemonis: Look, the fact that the CEO of T-Mobile

comes in to the meeting is a very big deal.

Charlotte: This is probably a good time for us

to take off our hoodies and fit in a little bit better.

Sarah: Oh, nice.

Xavier: We're all kind of part of the team.

Lemonis: But I like the fact that Charlotte was smart enough

to know how to be clever with the branding

and whips out these T-Mobile shirts.

Charlotte: So this is how we look at our

business and our designs.

We really want to fill each and every one of these buckets

so that anyone that walks into T-Mobile,

there's a case for them.

You know, men and women and then the different age groups.

John: Thanks for acknowledging that there is a right-hand side

to that chart for those of us.

Lemonis: Just out of curiosity, what box are you in?

John: I'm where she's standing,

but we have high disposable income, and we buy...

And we have children down there that we're buying.

We could sell so many of these. I like it.

Lemonis: That's fine. John: I'm in. Thank you.

I look forward to working with you.

I'll see you before you leave. Lemonis: Appreciate it.

Lemonis: The designs passed the test barely,

but I'm concerned that they still skew a little too female.

The good news is, is that we still have a few months

before they get in stores to tweak the designs

and make sure that we have a good balance

between male and female,

but I am happy to say that Everkin has its first account.

Sarah: We have a lot coming up in August

that we'd want to have you take a look at that

and see if you could make those deadlines.

Jackson: Great job.

Jon: We're excited for the next steps.

Sarah: Thank you so much.

Lemonis: They got a order for 38,000 cases

with 18 designs, and they're going to be able

to be in all the stores nationwide.

This is a huge accomplishment. Here's the problem.

We have the order, but we don't have the product to fulfill it.

Lemonis: A lot of work to do Charlotte: Thank you.

Lemonis: We'll see you soon. Charlotte: Thanks, Marcus.

Lemonis: In order to get this order fulfilled,

our first step is to get these cases manufactured

by professionals,

so the team is heading to Hong Kong...

Charlotte: Yay, Hong Kong!

Lemonis: ...to one of the largest

trade shows in the world.

I'm expecting them to find the latest and greatest

in cell phone cases, accessories and the newest technology,

but they're also there to work on their teamwork,

something that definitely didn't exist at the Casery.

Now that the team is back to Los Angeles,

Xavier and Sunshine are working on all-new designs,

so they can be printed by the manufacturer in Hong Kong,

and Skyler is working with the 3PL,

a third-party logistics company that will receive the cases

after they get air-shipped from Hong Kong.

Once received, they'll get inventoried and packaged

and then shipped out to the T-Mobile stores.

Skyler: We just got word that the iPhone XR,

one of the sizes is getting pushed back,

the release date. Karlo: Ooh.

Skyler: So we're going to have to relabel

basically all 7,000 of those units before we deliver.

That'll be cutting a little close.

Lemonis: I've also brought in ClickUp.

They'll provide software to Charlotte,

so she can help manage her team's tasks and deadlines.

Zeb: Really, we're just trying to bring everything to do

with productivity into one central location.

So, like, if you're a manager,

your homepage is going to be what we call box view,

so you can see what each person is working on.

Man: It's a tree diagram essentially

of everything that needs to be done.

Charlotte: Yeah, this is what I've been looking for.

Lemonis: This has been one of the most brutal months

that any company, let alone a start-up, could handle.

There's pressure on money, delivery dates,

a large customer, and with all this pressure,

I'm hoping that Charlotte and Skyler's relationship

can withstand this tension.

Charlotte: I want to talk to you about something

because I feel like a lot of times,

you kind of keep me out of the loop.

Like, if you're coming out here, like, I'd like to come with you.

You know, like, I want to have a relationship

with these people too.

There are a lot of gaps in my mind of how things

are working because the information

is kind of being withheld.

Skyler: A lot of times, I feel like I don't know

what you're really working on either, so obviously,

like, you know, doing a lot of accounting right now

and other things like that,

and I'm not sure always if it's the best use of time

for us both to be working on that.

Charlotte: I need to be in the loop.

I need to know what's going on.

Skyler: Yeah, I mean, sure.

Lemonis: Hey, guys.

Skyler: Hey, Marcus. Charlotte: Hey, Marcus.

Charlotte: Hey. Good to see you.

Lemonis: And so this is all that's in?

Skyler: Yep. Lemonis: What's left to come?

Skyler: So there's 12 more designs that are coming.

Lemonis: Uh-huh.

Skyler: The fact that we're a week away

from the T-Mobile launch has me feeling pretty anxious,

so I wanted to head to the 3PL just for a little insurance

to make sure that every last detail is handled.

Skyler: I spent a lot of time looking at different

3PL facilities.

We found that this was actually a really good deal for us

in addition to the convenience.

Lemonis: So what are the economics?

Skyler: So it would be $2.70 plus $0.10 per...

Lemonis: $2.70 per item?

Skyler: No, for the first item, to get the box.

Lemonis: So I need to think about the pricing

as the action to come over to do it

and then any incremental action is $0.10.

Skyler: Yes.

Lemonis: $2.70 feels high to me.

You know what it is?

Charlotte: Well, is it the -- Lemonis: It's $2.35.

So what's the pricing now?

Edward: So I believe it's $2.35. Lemonis: Okay.

So why did you think it was $2.70?

Skyler: I mean, I just don't have it actually written out --

Lemonis: I know, but you got to know that [bleep].

Like, that's a big number to know. Okay.

So I want to understand this, so get an empty box

and just walk me through the economics.

I just want to visually see that.

Edward: So $2.35.

Lemonis: So they're going to pick an item.

Edward: So we're going to pick these items.

Lemonis: $2.35, boom.

Edward: And then each additional item is $0.25.

Skyler: I thought it was only $0.10.

Naim: The way we billed before, it's $0.25 a unit.

Lemonis: Okay.

You know what frustrates me about Skyler?

He always talked a big game,

and he always had a lot of confidence,

and right now it's game time,

and he's looking at me like he's a deer in the headlights.

If this order and this relationship

doesn't get executed properly,

then it's game over for this business.

Lemonis: Skyler, how much is this --

How much is their bill on 21 items?

Skyler: So let's see, 21... Lemonis: No, no, no.

Let him do it because this is what I'm frustrated about.

Skyler: So we'll have $2.35, and that includes two units,

so we've got 19 remaining. Charlotte: So then 19 times...

Skyler: So 19 times times 25 plus $2.35 is $7.1.

Lemonis: Great, and how many items are in here?

Skyler: 21. Lemonis: Great, and so what's

the average cost per item?

Skyler: $0.33 cents. Lemonis: Great, so it's $0.33.

So what...

You're in charge of the supply chain

and understanding where it comes and when it comes

and how it turns, and I need you to know it, too.

What I don't like is the fact

that Skyler doesn't know the number,

and while I'm putting all of it on Skyler, by the way,

Charlotte is not exempt.

You want to be a leader, you have to know these details.

Unfortunately, you have to have your eye on everything.

Charlotte: Yeah.

Lemonis: And then we need to figure out,

what business are you getting outside of T-Mobile?

Because that's giving me... Charlotte: Yeah.

Lemonis: ...giving me anxiety for sure.

♪♪

Xavier: I've got all the jewel stones.

Charlotte: I think you have to make that part first,

and this is not trash.

Charlotte: So that, you fold into shape.

Skyler: I'd really like to try and get it figured out sooner

so that we're not rushed.

Lemonis: I'm headed to the T-Mobile store in New York City

where Charlotte and the team are getting ready

to launch all of their new products,

and I'm anxious to see the new display

and how the products are working and customers' reactions.

Charlotte: Insert body into base.

This is a learning experience.

Lemonis: Is this, like, the launch case?

Charlotte: This is the shipper that all the stores got.

I think we have to fold them, right?

Lemonis: The same thing that happened

at the T-Mobile presentation is happening right now again.

This is a multibillion-dollar company

that awarded you a huge contract,

and you're sitting in the middle of their New York City store

putting it together like this is an arts-and-crafts exercise.

Xavier: Isn't there a piece that goes...

Charlotte: I mean, everything happened so fast

that we didn't have a sample of it in our office.

Lemonis: So that's a problem.

Charlotte does have to actually figure it out.

Charlotte: Hey, Marcus. Skyler and I had a call with T-Mobile.

Skews that were selling are not selling as well anymore,

so they want us to pay $300,000.

Charlotte: Everything happened so fast

that we didn't even have a sample of it in our office.

Lemonis: So that's a problem.

Charlotte, you guys have to actually figure it out.

Skyler: And the whole display cost us $23.

Lemonis: Come on.

It looks like it's way better than that.

Charlotte: Okay.

Lemonis: I still think the designs are not good.

Sorry.

So pineapples are great,

but we need to get a little more masculine.

Have you gotten any feedback from any customers?

Charlotte: No.

Lemonis: Maybe we grab some and get some feedback.

Man: Colorful.

Charlotte: Lady-ish? Yeah.

So would you wear this case?

Man: Yeah, I would. It's just very lady-ish.

Lady-ish, lady-ish, lady-ish, lady-ish.

Charlotte: Mm-hmm.

Man: Like, I'm a construction guy, so...

Lemonis: I know that T-Mobile is happy that they were able

to meet all the deadlines and be in store,

but I still feel like they need to skew more masculine,

and I'm done asking it.

But I think if you can be proactive in saying,

"We'd like a selling report, and we swap out

the poorest performing one.

Send them back to us. We're going to send you

a replacement that's in this family."

Don't wait for them to tell you.

♪♪

♪♪

[ Phone ringing ]

Charlotte: Hey, Marcus. Lemonis: Hi. How are you?

Charlotte: So basically Skyler and I had a call with T-Mobile.

Skews that were selling decently are not selling as well anymore,

so what they want to do is that we help them

with some markdown support,

and basically they want us to, you know, pay the difference.

Lemonis: When you sell product into a retailer,

and the product doesn't sell,

they're going to come back to you

and ask you for markdown money,

which refers to funds that you're going to give to them

to allow them to take the retail price down,

and they're essentially saying to you,

"We're dropping the price,

and you're paying the difference."

Charlotte: So they're taking it from $40...

Lemonis: $40, okay. Charlotte: ...to $30,

and they want us to pay that $10 cost,

and what that would be at this point is about $300,000.

Lemonis: The way a retailer would think about it is

when they give you a specific area to sell something,

they are assigning an expected revenue amount from that area,

so in this particular case,

they were retailing the product for $40.

They want to mark it down to $30,

but they want the vendor, me, to pay the difference.

There's 30,000 cases in question.

That's a $300,000 check.

All of this could have been avoided

if Charlotte would have followed up with them

to switch out the slow movers,

the non-sellers right away.

So why would anybody in their right mind do that?

Charlotte: Skyler and I really wanted to do

what we can to keep the relationship alive.

Lemonis: The fact that you guys would even think

that's a good option makes me not want to do business.

It doesn't make any sense.

We'll just take the product back,

and we'll go a different route. Charlotte: Sounds good.

I guess there's no way that we can afford to do this.

Lemonis: I don't want to write a check for $300,000,

and by the way, what's the company going to do now?

This was their one and only account.

All right. Thank you. Bye-bye.

♪♪

What's happening? Charlotte: Hey. How's it going?

Lemonis: With the T-Mobile deal falling apart,

I wanted to stop by the office to find out

if Charlotte knows what the next step is

because she wanted to be the CEO,

and she wanted to have her own business,

so I'm looking forward to hearing what it's going to be.

Charlotte: Yeah, the T-Mobile thing was,

you know, it was hard to hear. It was a bummer.

I think we really learned that things need to be

a lot more masculine than we realized.

Lemonis: So things have to be more masculine?

Charlotte: Yeah.

Lemonis: So I'm going to take you guys back in history

to a time where I told you guys

that you needed to have more male stuff.

Charlotte: Yep.

Lemonis: Why didn't you follow that advice?

Charlotte: Honestly, I thought we did have more male stuff.

Not fully male, but, like, we went more, like,

gender-neutral than we ever did.

Skyler: What we learned this time is that what we need

to be doing for male stuff isn't anything prints.

It should be totally functional and materials-based.

For a client like T-Mobile, that's what's going to work

and get the sell-through that they're looking for.

A lot of stuff has been going not the way that we wanted to,

definitely some frustrations the past month.

Lemonis: Okay. Charlotte: We had a couple weeks

where we just were not getting along.

Skyler: I'm still frustrated that we're not really

getting anything figured out with sales.

Like, that's the constant source of frustration for me.

Charlotte: That's frustration with me, right?

Because I'm doing sales. It's okay, like --

Skyler: I'm frustrated about the sales,

but it is your responsibility.

Lemonis: I'm frustrated with you guys that you're not selling.

Skyler: Right. So some things get...

I think a lot of times Charlotte doesn't think as big-picture

as she needs to necessarily.

I feel like no one is running the business, a lot of times.

Lemonis: Do you think you should be running the business?

Skyler: Um...

Lemonis: Okay. So this probably is the biggest

meeting you guys have had... Charlotte: Yeah.

Lemonis: ...a really big deal.

Skyler: I think a lot of times Charlotte doesn't think

as big-picture as she needs to necessarily.

I feel like no one is running the business a lot of times.

Lemonis: Do you think you should be running the business?

Skyler: I don't think it's something that is really best

for either one of us to do alone

because we have different areas of expertise.

Charlotte: I can totally see where that's coming from.

I don't feel like I'm running the business.

Lemonis: You don't? Charlotte: No.

I feel like I have no idea what I'm doing sometimes,

and it's really scary, and, like,

that's sometimes why I get your, a lot of the time,

why I get your input and your opinion.

Skyler: Just need some more structure.

I mean, we are making some progress.

It's definitely taking longer than, I think, we'd like.

Lemonis: Team effort. Charlotte: Yeah.

Lemonis: Right? You own a big chunk of the business.

You own a big chunk of the business,

and so it's not like you're some employee.

I don't know what kind of grade I would give Charlotte

right now as the CEO, but I'm noticing

that she's not listening on the design side,

didn't manage the relationship with T-Mobile like I wanted to,

and it seems like she's having a difficult time

even communicating with her people,

and I don't know what Skyler's issue is right now,

but what I'm sensing is he's got

a little bit of an attitude, and I don't know

if it's from a "Maybe I should have been CEO" or not.

Here's a newsflash.

You're not, and you need to be supportive.

I need to see that from him right now.

What's the coolest thing happening right now?

Charlotte: I think our product development is the coolest thing

happening right now.

I mean, we've got a ton of new ideas.

We've been doing a lot of product development.

We want to have kind of a utilitarian line.

This is, like, a super slim wallet case,

but also we have these wireless chargers,

which are going to be a really awesome way to go.

Lemonis: Okay.

Charlotte: We've also got a meeting with Marvel set up,

which I think is going to be awesome.

Lemonis: Seriously? Charlotte: Yeah.

Skyler: That's kind of one of the ways we're approaching

the more masculine stuff. Lemonis: That's supercool.

Charlotte: Yeah.

Lemonis: The fact that you're stepping up

and getting these meetings and finding new alternatives

and not getting discouraged is progress.

I like the fact that Charlotte is working on skewing more male

with things like Marvel, but what I don't want her to do

is put all of her eggs in one basket.

I've given Charlotte a contact at Major League Baseball,

and here's why.

T-Mobile and Major League Baseball

have a very strong relationship,

and I know that T-Mobile is looking for some of their cases

to skew more male.

Charlotte needs to make the phone call.

She needs to set up the meeting,

and she needs to land the account.

If she can do it, then maybe she can save T-Mobile,

and if she can't,

then the business is probably going to close.

♪♪

This company essentially started a few months ago,

and all of a sudden, we're now in New York City,

heading to the commissioner's office of Major League Baseball,

and I'm fairly confident that if we can secure this license,

T-Mobile will allow these cases

and accessories to be sold in all of their stores,

but making the meeting and securing the license,

well, that's a whole different ball game.

Are you getting more comfortable leading?

Charlotte: Yeah.

I think just getting that, like, out in the open,

clearing the air was really good for me

and for our communication, and, yeah,

I've been just, like, pulling the trigger on decisions

a little bit more than I was before.

Skyler: I'm getting good communication with Charlotte,

and we're kind of figuring out what we need to do.

Lemonis: This probably is the biggest meeting

you guys have had because normally,

you would go through a licensing agency.

Charlotte: Yeah. Lemonis: But to be able to roll

right into Major League Baseball's offices

and do a deal directly with them is a big deal.

Charlotte: It's crazy. Yeah. Lemonis: By the way,

you look pretty snazzy today.

You dressed appropriately for the meeting.

Skyler: Okay. Good. Lemonis: I can't get over

how different you look.

Let's go inside.

♪♪

This is awesome, all the way down to the last detail.

They're going to want to hear why it's a good fit for them,

like, why should they do this? Charlotte: Yeah.

Lemonis: The Major League Baseball license

is one of the most coveted things in all of licensing,

and if they could somehow figure out a way

to become one of a very few that can have access to this,

it'll be a home run.

How are you? Noah: How you doing?

Good. How are you? Lemonis: Marcus.

Noah: Noah. Lemonis: Nice to see you.

Noah: Nice to see you. Hi. Charlotte: Hi. I'm Charlotte.

Noah: Charlotte. Noah Garden, nice to see you.

Charlotte: Nice to meet you. Skyler: Skyler.

Noah: Thanks for coming in.

Charlotte: We were just putting up some samples,

so you can kind of see the quality, but...

Lemonis: Thanks for meeting with us, by the way...

Noah: Oh, of course. Lemonis: ...on short notice.

You're in the big leagues. Charlotte: I know.

The Major Leagues, literally. Yeah.

As far as product, we do phone cases.

We have these wireless chargers,

which I think are going to be a really awesome way to go.

They're kind of a different product that...

Lemonis: Wanted you to see the quality and the weight,

and I wanted you to see the cases.

Noah: What's generally the price point?

Charlotte: They'll be $29.

Skyler: We think that's the right price point...

Charlotte: That's a better price point.

Skyler: ...because our focus is on,

how can we provide that level of sell-through

but also provide that level of quality that we want?

Because it's our brand that's on the line,

both MLB, of course, and Everkin, right?

Charlotte: We'll go through some stuff

that we put together for you guys.

I see them as kind of complementary designs.

So we can do stuff with team logos,

but we can also make it really fun and interactive.

I love, like, the, you know, making it feel dirty

and really making it feel real.

Like, these complement this, so it's not like your phone

is exactly the same as your charger.

But they go together well, and you can get both.

Noah: Just looking at it, I wonder if you can bring

a little bit more of baseball in it.

Like, if you use, like, stadium shots

and stuff that's sort of iconic to each team that, you know,

people identify with maybe might make some sense.

Charlotte: We also did this line.

This is a little bit more subdued.

It's embossed with, you know, your team.

We can do simple, just the coloring,

or we can even have, like, the stitching on there.

Noah: Anybody can slap a logo on anything.

Charlotte: Right.

Noah: I'd like some more authentic picture on it.

Lemonis: For exclusives, extras and business advice,

visit theprofit.cnbc.com.

Charlotte: It's embossed with, you know, your team.

We can do simple, just the coloring, or we can,

you know, even have, like, the stitching on there.

Noah: Anybody can slap a logo on anything.

Charlotte: Right.

Noah: I'd like some more authentic picture on it.

Skyler: A lot of the way that we think is,

how can we design and make unique products?

And we don't want to just slap a logo on a case, right?

Anyone can do that, and that's not why we're here,

so we want to figure out, what are the right ideas

that are going to make something really unique?

Lemonis: And that's leather, right?

Charlotte: Right.

We can do it real leather or PU leather.

Yeah, this is kind of, like, for the guy that goes into an office

every day, kind of, like, exactly like your case,

but it's embossed with your team,

and they're still super protective.

Noah: Listen. I like this.

It's fashion-forward from my standpoint

if you see what's going on in caps,

which is always our barometer. Charlotte: Right, right.

Noah: You know, you see the contrast on contrast,

and it's very popular, so I definitely think

the same way here, and listen.

The license that you get from us

affords you stuff that other people can't have.

Pictures of the stadium, it's all part

of our intellectual property,

and so we encourage our partners to use that

because that will separate you.

Lemonis: I can tell the meeting was really well

when Noah started offering Charlotte licensed images

and had all sorts of ideas,

but then Charlotte wanted to take it one step further

and swing for the fences.

Charlotte: We also wanted to give women

the opportunity to show off their team.

So this was kind of more of our women's collection,

you know, just to make it fun and still girly,

but, like... Noah: I like it.

Charlotte: ...showing off your team, you know?

I mean, we live in LA, and every single girl

I know has a Dodgers hat.

Noah: Yup. Looking at the people

that are coming through the turnstile for us,

it's right around 45 percent male to female right now.

Charlotte: Really? Good. Lemonis: That's awesome.

Noah: So definitely think taking a little different approach

to it like you've done here

will appeal to a broader audience.

Lemonis: Awesome. Charlotte: Yeah.

Noah: I think it makes a lot of sense for us,

and there's definitely room here to be very successful.

Lemonis: Well, thanks so much. We really appreciate it.

Noah: Thank you. Thanks for coming in.

Lemonis: Thank you very much. We're excited to get started.

Charlotte: So nice to meet you. Thank you.

Skyler: Thank you so much. Noah: If you need anything,

just call me directly. Charlotte: Sounds good.

Skyler: We'll talk soon then. Noah: Looking forward to it.

Lemonis: I thought it was, like, a totally different company,

two totally different people.

The level of professionalism, it feels different.

High five. Charlotte: Thanks, Marcus.

Lemonis: Great job, very proud of you.

Charlotte: Thank you. Lemonis: Super proud.

To start a company and, in a matter of months,

get a license from Major League Baseball,

this was like winning the World Series for small business.

Okay. Well, you guys started a brand-new business from zero,

no customers, no designs, no cash, no ideas,

and then you just walked out of a meeting

at the commissioner's office for Major League Baseball.

In all the businesses I've invested in,

it's really the first time that we've started from scratch,

like, on a dry-erase board.

Charlotte: I love this city.

Lemonis: In the time since the MLB pitch,

Charlotte has continued to develop the company,

preparing the team for a pitch to Marvel

and she's in negotiations with a number of companies

like Striker Entertainment.

We mocked up some cases and chargers

with a couple of your properties.

Man: Nice work by the way. Man 2: Fantastic.

Man: That sounds great. Lemonis: And to see

what they've gone through and how they've learned

and how they've stubbed their toe and picked themselves

back up, their personal growth

is really what makes small business so fascinating.

The sky is the limit.