Wednesday, 14 June 2017

The Profit: W82, Formerly Windward Boardshop, Soars to the Top with New Products and Improved Team Collaboration


This week, Marcus Lemonis travels to Chicago, Illinois to help Windward Boardshop, get back on track. According to CNBC, “Business for the once-thriving extreme sports boutique has plummeted after its owners tried to expand too quickly.” Will the three partners be able to come together and restore their business to its former glory?

Visiting their first store location, Lemonis immediately notices issues with their margins and lack of merchandise in the women’s department. He’s also concerned that there’s no working capital to buy one of their best-selling boards. At the second location, things don’t get much better. The store, located in an affluent part of the city, is empty and sees firsthand just how quickly items can add up. The second store is currently losing money.

After speaking with Chris, Tony and Jess, the three business partners, Lemonis notices that their relationship is a bit disjointed. Jess’ equity was cut after having a baby and she had to take time off. Despite the issues that he has seen, he ultimately decides to offer $500,000 for 50 percent. After a counter from Chris, Lemonis offers an additional $100,000 if they can liquidate $200,000-worth of unnecessary inventory.

Next, Lemonis explains that the name of the store will change and new merchandise will be brought in to attract new customers, while retaining existing ones. Taking a look at their trade show booth, Lemonis criticizes the display and he can’t understand why he’s wasting money at an event like that anyway. Ultimately, Lemonis decides to close their second location.

He is also worried about how Chris and Tony seem to be pushing Jess to the sidelines and not taking responsibility for their own poor decisions. Jess is visibly upset over the store closing, which, to Lemonis, reaffirms her passion.

After making some suggestions for the new name, they all agree on W82. The celebration is short-lived, however, when some team members push back at the idea of offering more products. Ultimately, they agree to focus on swimwear, shoes, electronics, skate and snowboard departments.

Lemonis then decides to make Jess the buyer, instead of Chris. Chris then recognizes that Jess really did help lead the team to sell $500,000 worth of merchandise since starting the process. Lemonis then revisits Jess’ equity, which currently stands at five percent. Chris says he felt like they “financed” her pregnancy with their money and time. Lemonis decides to lower his equity to 40 percent and increase everyone’s equity, giving Jess back her 10 percent.

At the grand reopening, Lemonis is concerned that they have only four hours to finish putting the store together. The newly-redesigned space and colorful exterior help completely transform the business. Lemonis is very impressed that the team was able to come together and commends Chris’ new perspective on both business and life.

Social Media Reacts to Windward Boardshop’s Appearance on “The Profit”

“The Profit” airs every Tuesday at 10 p.m. on CNBC.

What are your thoughts on Windward Boardshop’s name change? Would you buy something from W82? How did you feel about the three business partners? Share your thoughts in the comments section below!

Source: B2C

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