Marcus Lemonis Business Quotes

Marcus Lemonis business quotes are from The Profit, hosted by Marcus Lemonis himself. The series is filled with drama, reality-show style. Most viewers probably watch it for the entertainment value. And entertain, it does. Marcus Lemonis’ The Profit has plenty of intrigue and conflict as he attempts to rescue failing businesses, one per episode.

He applies his simple yet compelling three-P philosophy – People, Process and Product. So if two of the three are in good shape, and the deficiency is repairable, Marcus will invest hard cash. Then, he takes 100% control of the business in order to get it back on track.

There’s one element to this show that I really appreciate. It’s the Marcus Lemonis business quotes placed strategically throughout each episode that I learn from the most. And these Marcus Lemonis business quotes pertain to what is occurring in the show at the time they’re stated.

These quotes also deliver good wisdom. Since they’re from Marcus Lemonis himself, you know you can really use them. Marcus Lemonis is an expert in business with a very respectable background, education, and track-record. So I consider these Marcus Lemonis business quotes to be authoritative, meaningful and inspiring.

To provide you with some of these Marcus Lemonis business quotes, I’ll list some of them. Then I’ll provide valuable information supporting each one.

This blog post is the fifth in a series. Marcus Lemonis business quotes are all from an individual episode. That way, you can watch it and put these Marcus Lemonis business quotes into their original context.

The Profit – Season 3, Episode 1 – SJC Drums

Margins

Quote: You really have to have a sustainable margin on any product to be able to pay your bills. Their margins right now are at 15%. There’s no way you’re going to make a living off of that.

Marcus Lemois meets the owner of SJC Drums, at a musical instrument show. Then he discovers that a drum which sells for $800 costs $680 to make.

Quote: Disorganized materials equals loss of time, which equals loss of labor, which means money is leaking out the door.

Marcus doesn’t understand how SJC Drums is able to make such high-quality drums in such a disorganized shop. This is because it increases production time and kills their margins.

Quote: The most disturbing thing about their manufacturing process is: there is no process. The reason it takes six months to make a drum, they don’t know what they’re doing.

The SJC Drums factory is in complete disarray. And there isn’t an organized process, and their inventory is all jumbled together.

Diverse pricing

Quote: The goal that I have in this whole process is to diversify their pricing offering. And so we establish the good, better and best model.

Once we can sell somebody an entry-level SJC drum – GOOD, we can then keep them in the family and move them up to – BETTER. And as they get better, we give them tips and tools.

Then we can move them to – BEST, which is our amazing custom drums. And that’s the model that actually allows us to take care of the whole universe.

SJC Drums already has the BEST drums. And these drums are played by top bands like Green Day and Lady Gaga. So they to move down from the top.

Marcus Lemonis shows the crew how to implement this, starting with the numbers. He does this by tasking them with creating an entry level drum kit. But they struggle to get the price down. Finally, they discover the key in simplifying the process.

The 10 steps to success

Quote: Orders have stalled because they don’t have all the parts. Materials are everywhere. In order to fix that, I’m going to install the 10 steps to success.

Marcus Lemonis organizes their inventory and implements a manufacturing process using push-carts. That way, each material item is located strategically in the factory. Then the cart is pushed through the 10 step process in strategic locations as the drums are manufactured.

These 10 manufacturing locations have racks of parts that pertain to that location and include:

Cutting
Sanding
Painting
Edging
Layout
Drilling
Assembly
Quality check
Presentation
Packing and shipping

SJC Drums’ production went from 40 kits per month to over 100. And that’s quite an improvement!

Innovation

Quote: Scott’s knowledge of innovation and creativity is second to none.

Scott, the co-founder, has been absent for the last three years. But now he’s back. And he’ll have an enormous impact on innovating the lower-end models.

After Scott implemented cost-reducing strategies, they took the drums into the recording studio. They did this because they wanted to ensure sound quality to be similar to their higher-end drums. Then they compared a sound spectrum analysis of each drum. After evaluating the results, they discovered that it matched!

It’s not a beginner kit. But it’ll be sold at a beginner price. Well done!

Selling it

SJC Drums presented their three lines of drum kits to Sam Ashe Music. And having a relationship with Green Day made all the difference. After presenting, they sold them.

Quote: Life in business isn’t always about calculators and dollars. If the business is healthy and the people are good and the process is right and you have a good product, you’ll make money. But the relationships have to be solid.

Marcus Lemonis Business Quotes – The Profit

Marcus Lemonis Business Quotes