When it comes to business, Marcus Lemonis lives by the three Ps of success: people, process and product. In other words – in order for a company to run smoothly, business owners should take care of their hard-working people; the process should be efficient; and the product should be desirable.
In Tuesday’s all new episode of “The Profit,” two of the core P’s are clearly missing. Lemonis realizes this quickly when he heads to Georgia to meet with Strud Nash of Polar Bear Coolers. The product itself worked – but the people and process were off.
“The overall cooler business has exploded – and particularly the high-end cooler business – because people want to invest in something and hold it forever,” Lemonis says in the episode.
Polar Bear Coolers is a brand of quality performance coolers with a leak-proof liner. There’s a big market of outdoor enthusiasts that make this product worth investing in – but from 2017 to 2018, the company lost over 30% in revenue.
In the episode, Lemonis will mentor Nash and his team as they work their way to getting revenue back on track. But first, they have to get the three P’s in check. But if Nash can’t stay focused and ensure a functioning inventory system, coupled with treating his employees with respect – Lemonis won’t stick around.
“Our company was kind of in a tailspin,” Nash says in an interview with CNBC. “I wasn’t going to be able to figure this out on my own in time. I looked at several options, I even considered selling the company or bringing in investors. But we needed some intelligence. We needed some leadership. So, I signed up for casting.”
Cue Marcus Lemonis.
In terms of process, the untidy warehouse with an unorganized inventory system was a telltale sign that they weren’t maximizing their profits.
Plus, with revenue down, team members received salary cuts. One of his customer service employees claims he even cut a significant portion of his salary overnight, which led him to file for bankruptcy.
“Now, I understand that businesses go through tough times and pay rates have to be adjusted,” Lemonis says in the episode. “But it’s the way in the context you communicate to that team member why it’s happening and how it’s going to happen. I don’t know how I’m going to get Strud to see that unless I just put it right in front of his face.”
Mistakes happen, but Lemonis wants to be sure Nash is willing to own up to them. If the business owner can’t appreciate his people and take responsibility for his own actions – a shot at an investment is out the door.
“His self-awareness meter is broken,” Lemonis says in the episode. “Strud just needs to start to realize how much he needs everybody.”
Throughout the episode, Nash will learn how to improve the process of inventory, how to sell his product clearly and efficiently – and most importantly, how to treat his employees with respect.
“It’s very testing to go through this process, but it’s not about the money,” Nash says about working with Lemonis. “It’s about the behavior, it’s about the leadership, and trusting the process.”
Tune in Tuesday to watch as Lemonis helps Polar Bear Coolers get revenue up on an all new episode of “The Profit” at 10P ET on CNBC. Use the channel finder tool to find out what channel you can watch CNBC on your TV.