Ep 4. Flex Watches

In season 4, episode 4 of The Profit, Marcus Lemonis sets his sights on Flex Watches, a company founded by two friends who wanted to create a fashion brand with a charitable purpose. The company creates watches with interchangeable bands, each band corresponding to a different charity or cause. The idea is that the wearer can support multiple causes simply by changing their watch band.

Initially, Lemonis is impressed by the founders' passion and dedication, but he soon discovers that their business practices are not sustainable. For one, the company's manufacturing process is inefficient and costly. Additionally, they have a bloated employee roster, with some staff members not contributing much to the company's bottom line. Finally, the founders are unclear on their target market and have not developed a cohesive marketing strategy.

Lemonis sees an opportunity to help Flex Watches streamline their operations and grow their business. He offers to invest $350,000 in exchange for 35% ownership of the company. The founders agree to the deal, and Lemonis gets to work.

First, he helps the company revamp their manufacturing process. They move their production to a more affordable factory and focus on creating a smaller product line with more consistent quality. Lemonis also helps the founders identify their core customer base: young, socially-conscious consumers who are passionate about supporting causes they care about. With this in mind, they create a new marketing strategy that emphasizes the charitable aspect of the watches.

Next, Lemonis tackles the issue of staffing. He identifies several employees who are not contributing much to the company and advises the founders to let them go. They resist at first, but eventually agree that it's necessary. Lemonis also recommends hiring a new salesperson who can help the company expand their reach and secure larger wholesale accounts.

As the turnaround continues, Lemonis becomes frustrated with the founders' lack of focus. They seem to be more interested in promoting their personal brand than in growing the company. Lemonis tells them that they need to commit fully to the business if they want it to succeed. He urges them to take a harder look at their numbers and make tough decisions about where they need to cut costs.

Throughout the episode, the tension between the founders and Lemonis is palpable. They push back on his suggestions and resist making changes they feel go against their original vision for the company. However, as time goes on, they begin to see the value in Lemonis' advice. They start to make progress, and Lemonis becomes more optimistic about the company's future.

In the end, Lemonis is pleased with the changes Flex Watches has made. The company has streamlined their operations and developed a stronger marketing strategy. They have a clearer understanding of their target market and have made significant cuts to their overhead. Most importantly, they have a renewed commitment to the business. It's clear that the founders have learned a lot from Lemonis and are eager to continue growing the company.