The Profit “Progress Report” Reaction: Coopersburg Sports, Key Lime Pie Co., Artistic Stitch, Unique Spa and Salon

I thought the all new episode 2 of season 3 would be another feature but this episode turned out to be a check-in on four businesses Marcus previously helped.

Normally I’m ok with updates but the extended summaries of past episodes were so long I felt 1/4 the show was spliced re-runs.

The other problem I had is a longstanding one: I can’t tell what’s real and what’s not. My main qualm is I don’t believe Marcus Lemonis is so stupid as to keep giving these people money when it’s obvious they’re either blowing it or stealing it.

Marcus Lemonis knows business and he knows people. For him to keep getting the wool pulled over his eyes as CNBC portrays isn’t realistic.

I still really like the show but it is hard for me to seriously blog about it because I feel like I have no grasp on what’s actually happening in real life.

With that’s said, let’s talk updates.

Coopersburg Sports

– Marcus original investment was $635,000 but to date, it’s $1.4 million

– As you might have just gathered, Scott, the owner, keeps coming back for more money

– Marcus hired Dan, a Wharton MBA grad, as a consultant and to keep a tabs on the business and keep him in the loop

– The warehouse is a lot more organized

– For some reason the show blurs out the Major League Baseball logo

– Previous year $2m in sales, this year $3m in sales and will turn a profit

– Scott got a surprise new printing machine for $85,000 and they don’t have any orders for the products it makes

– Marcus is pissed about the printing machine and how Scott didn’t do the analysis prior to purchasing it

– Scott needs another $150,000 to get out of the hole

– They’ve expanded way behind baseball into college, Nascar, and more

– Walmart placed a huge order for the souvenir station, 1st order was $500,000

– Margins are 50%, up from 38% a year ago


We didn’t get a definitive update with Coopersburg sports.  They recently got a huge order with Walmart but Marcus took us through a small roller coaster of the good and bad.

Marcus must have a hell of a lot of money to hand out $100,000 loans/investments like they’re candy.  I’ll assume he’s taking more equity each time he writes a check.

To invest $635,000 in someone and then less than a year later be $1.4 million in is incredible to me.  Clearly, something’s going VERY wrong for them to keep coming back for more money.

As a disciplined investor, you need to do some serious due diligence if you want to put any more money in after that kind of initial investment.  How profitable can a business that needs $635,000 and then another $765,000 – and now what looks to be an additional $150,000 really be?

Is something wrong with the operations?  Are checks getting rerouted?

Get real.  How can you keep giving this guy money?

Also, Dan was a strange throw-in. I finished this segment not knowing what he contributed.

Unique Spa and Salon

– Named one of the top 20 salons in US

– Averaging $5-$6k on Saturdays

– Increase in sales from $1m to $1.4m

– 14% increase in margin

– Marcus gets a haircut from Carolyn

– Carolyn doesn’t always take a pay check

– Marcus praises Carolyn for her selflessness


Looks like the salon is doing well.  The numbers improvement is rock solid.  I thought their margins would increase a little more given the disarray portrayed in Unique’s original episode but 14% is still awesome.

Marcus praises Carolyn thoroughly and it looks like it’s well deserved praise.  She did need Marcus to help her get tough with the employees and managers but he set her on the right course and now the business is doing well.

I would be concerned about her not paying herself though.  Did they account for that in the increase in profit?

Artistic Stitch

– In a complete non-surprise, Sal completely screwed Marcus over (In the previous episode Marcus caught Sal lying approximately 400 times.)

– Sal and Nick started drawing a salary as soon as Marcus left which was not a part of the deal

– None of the money invested was used to pay the landlord for past due rent

– Marcus feels like he got hustled

– Already invested $300,000 so he’s giving them a 1099 for tax purposes

– They changed the name back to Artistic Stitch (Marcus had previously renamed them Queens Vibe)

– They put the basketball court and Italian restaurant back into action (Marcus had taken them out of the equation)

– Marcus sits around and waits for Sal to come in

– Sal sold the $27k printer Marcus brought

– The printer was never reported to accounting

– Michael (landlord) for some reason has never evicted Sal after him not paying for 3 years (Why does he need Marcus showing up to take action?)

– The show hits a low point with a Jerry Springer like yelling session

– Marcus still thinks deep down Sal isn’t a terrible guy but his “thought process is just off”

– For some reason Marcus walks off into traffic


This is exactly why I can’t tell what’s real with The Profit.

If you haven’t already, watch the Artistic Stitch episode.  Sal is caught lying or hiding facts from Marcus on a regular basis yet Marcus for some reason keeps believing in him.

In real life, no savvy business person gives 2nd, 3rd, 4th, and 5th chances.  It just doesn’t happen.  Yet, I’m to believe the guy that owns Camping World gets played like a fiddle by a t-shirt company in Queens?  Come on.

Also, landlords don’t wait 3 years to get paid.  No one does.

Key Lime Pie Co.

– Went from losing $100,000/year to making money

– His investment had to double to over $700,000 for various bills

– Tami is the store manager now

– previously $1m in sales and losing $100,000, now $1.2m in sales and making $100,000

– Went from 15% margins to 35%

– Marcus asks if Tami has heard from Jim and Allison and Tami indicates no without saying anything which leads me to believe they are no-showing but they’re really not; when the show comes back from commercial, we find out they got bought out

– Marcus bought them out for paying off their debt (~$200,00k?) + $65,000 + $1 pie in royalty and $0.15 a slice

– Apparently Jim was undermining Tami

– Marcus makes Tami 25% owner and mentions he’s also 25%


Who owns the other 50?

Why did Marcus lead us to believe Jim and Tami weren’t helping out (he asked if they’d been there without mentioning they were bought out first)?

The turnaround was there but the numbers weren’t as stark a change as I’d expect them to be given the massive changes.

Marcus said he doubled his investment but it looked like most of that went to buying out Jim and Allison.

I’ll check Twitter for any insight Marcus provides and post it here (non-Marcus tweets were retweeted by him).

Disclaimer: The commentary herein is opinion only and is based solely on the edited episode of The Profit shown on CNBC without all the facts.

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