S03.E06: Grafton Furniture

[Tara Ariano]

A family furniture business in Miami suffers from a father's resistance to change and his strained relationship with his son.

[eddy]

The best episode of The Profit to date, and I've seen them all.

 

A business that needed some outside help, a nice family that needed a little guidance on the job, and some factory workers that got better conditions and job security

 

It was nice to see a productive episode without feeling like I was watching Dr. Phil deal with some psychopath.  If I want that kind of drama I can watch any number of other shows.

 

Let's hope we'll see more of these stories and fewer dysfunctional business owners, because I would like to believe tonight's episode is more typical of today's small businesses.

[Primetimer]

Can Marcus Lemonis keep a family furniture business going into a third generation? ...Should he?

Read the story

[BusyOctober]

I thought Marcus was Greek? Last night he said he was Lebanese? 

 

That furniture was not in my taste at all, but I could see it in those Mega-Mansions in FL.  I agree it would fit in at a lot of hotels too.  

[sigmarick]

Why is the guy bartender from the wine bar now running his familys furniture business ?  ...lol

[rainbowlady]

Marcus was born in Lebanon. Was In orphanage until age 18mos. Greek/Lebanese family from Miami adopted him then. Don't know what happened to birth parents, but was during an ongoing conflict. He grew up in Miami & went to  college in Milwaukee at Marquette University.

[seacliffsal]

I had tears in my eyes at the end of the episode.  People who were willing to listen?  Unfortunately it is far too rare.  I loved the new designs and the layout of the warehouse.  I hope this business really grows and is profitable.

[Sarah D. Bunting]

What did everyone think of the mural?

[eddy]

The mural was a bit much.  I would have used an interior wall of the factory instead.

[Bungalow]

I really don't like modern murals but that is just me. I was very,very disappointed in the product placement of Direct Buy. They have so many complaints against their high pressure sales of memberships. It is kind of like timeshares for furniture. You buy an expensive membership and the pay 8 percent more for purchases.

[Curious5]

Why is the guy bartender from the wine bar now running his familys furniture business ?  ...lol

What wine bar and what guy bartender?

[attica]

What did everyone think of the mural?

It reminded me of the Queens Vibe decor. And that caricature he did for the burger place. I...wouldn't associate it with high end custom furniture, that's for sure.

[caligirl50]

Curious5 - In the second season of the show, Marcus invested in a wine store/wine bar/restaurant called Amazing Grapes located in Laguna Beach, CA.  It's a good episode, you can see on iTunes.

[GeminiDancer]

Shallow moment: Stevie Grafton was cute. Yessir....

 

This was a great episode because it really encompassed the notion of product, process, and people. I liked the Soho chair a lot.

[Jack Sampson]

It reminded me of the Queens Vibe decor. And that caricature he did for the burger place. I...wouldn't associate it with high end custom furniture, that's for sure.

If I was in the market for high-end furniture and saw that mural, I might just keep driving. If I can't imagine it in my home, it shouldn't be associated with the showroom. Maybe a painting in an office, but that's it. And I'd be mad as hell if my neighboring business put up something like that.

Also, was the younger blonde Stevie's sister or girlfriend? If she was family - and she looks a lot like the mom - why wasn't she featured at all?

Edited June 25, 2015 by Jack Sampson

[nobodyyoucare]

Curious5 - In the second season of the show, Marcus invested in a wine store/wine bar/restaurant called Amazing Grapes located in Laguna Beach, CA.  It's a good episode, you can see on iTunes.

Is the OP sure it is the same guy or a guy who looks like the guy? People often have dopplegangers out there. Hell I have seen Gary Busey often confused with Nick Nolte by people both on the net and in real life. 

[Amarsir]

Who'd have guessed that Marcus knew so much about furniture? (Or at least was able to fake it convincingly.)

I guess the "10-station layout" from the Drums episode was just for drums, because with a similar manufacturing structure here he didn't seem to be numbering them.

[clod]

maybe Marcus figures drummers are comfortable keeping count.    :)

[Sarah D. Bunting]

@attica, total Queens Vibe. Glad it wasn't just me. 

 

Couple things:

 

1. Lemonis addressed the second-generation business-failure issue in an interview I did with him back when the show was a toddler: http://previously.tv/the-profit/the-profits-marcus-lemonis-is-a-people-person/

 

2. I'm prepping an interview with Lemonis for later this morning. Anything you'd like me to try to ask him? Post here or hit me on email, sarah at previously dot tv.

[attica]

maybe Marcus figures drummers are comfortable keeping count

 

Or, you know, he can hire JK Simmons to slap 'em silly until they are.

[Lola16]

What did everyone think of the mural?

It reminded me of the Queens Vibe decor. And that caricature he did for the burger place. I...wouldn't associate it with high end custom furniture, that's for sure.

Ugly.  Out of place.  And very one-trick-pony. 

 

I think Marcus obviously has good general business sense.  I don't think he knows enough about all the industries that he gets into and just applies MBA school logic to them all.

 

In this one, suggesting they do 3 levels of furniture is good for a big company.  For a small family owned business, only 2 levels make sense.  Custom and semi-custom.  And their showroom needs to be designed by a retailer not looking like a garage sale from a McMansion foreclosure. 

[Showthyme]

Marcus has a good business sense but I think that he misses the mark on signage, logos, and names. 

 

I would never go into a store with a mural like that. I wonder if Marcus prefers murals because it is cheaper than storefront signage? 

[caligirl50]

I have to agree on this one.  I thought the outside of the building was very over-the-top.  If the owners has been illustrated over the entrance, that might have worked. The intention was a good one, but the execution aesthetically didn't appeal to me.

[AyeshaTheGreat]

Glad to know I wasn't the only one less than impressed when the mural was revealed.  I am happy I was not there because I would not have been good at faking my true thoughts.  It just seemed so tacky and out of place.  And it was so big that I can't imagine picking out custom furniture at that location.

 

As for this episode, the furniture is not something I would buy but I did like the family business.  Also, I like that Stevie seems to really want to work at the business and his struggles were not because of lack of effort or desire.  

[nobodyyoucare]

Looked a lot better then a lot murals i have seen in Miami and other places that were done by the locals. 

 

 

In this one, suggesting they do 3 levels of furniture is good for a big company.  For a small family owned business, only 2 levels make sense.  Custom and semi-custom.

Actually they were already doing custom and semi custom. They had to do 3 in order to survive during a downturn in the economy. When the economy is good to fantastic then they can concentrate on the semi and custom.

 

 

And their showroom needs to be designed by a retailer not looking like a garage sale from a McMansion foreclosure.

 

Marcus had taken care of that problem. They had a professional showroom built elsewhere.

 

 

nd it was so big that I can't imagine picking out custom furniture at that location.

That is the factory. The place where the designers and people pick out custom furniture to be made is another location as marcus stated. 

[silverspoons]

I liked the episode as far as the family business but was disappointed in Marcus giving Direct Buy airtime. IMO Direct Buy is a scam(my blood pressure goes up after seeing so many people get scammed) and I hope viewers don't go to a Direct Buy seminar and think since Marcus works with them it is a good idea to spend thousands on a membership. I understand Marcus needs sponsors, like we saw At&T on the computers (hotel impossible does this as well) but there was no reason to put Direct buy unless Marcus was selling an infomercial within his show. I like The Profit but if Marcus continues with these mini infomercials for companies like Direct buy I don't think I can continue watching.

[nobodyyoucare]

Direct Buy is a members only showroom. Don't want to go to such a showroom to buy furniture then don't go. 

 

Its like Sam's Club or Costco. Someone who can afford 500 for a single chair it can easily pay the directbuy membership. 

[Lola16]

I missed the Direct Buy part.  Agree that that's a scam.  They use such high pressure techniques.  I think they are worse than the timeshare people.  The product placements in this show are always awkward.

[Shibori]

The majority of the Attorneys General in the U.S. (Including the AGs of DC and Puerto Rico) have taken serious issue with Direct Buy's business practices. I think it's an insult to Sam's Club and Costco to compare them. I agree with the other posters who think less of Marcus for making it sound like they're legit.

http://www.ct.gov/ag/lib/ag/press_releases/2011/directbuyamicusbrief.pdf

[sarthaz]

The best episode of The Profit to date, and I've seen them all.

 

A business that needed some outside help, a nice family that needed a little guidance on the job, and some factory workers that got better conditions and job security

 

It was nice to see a productive episode without feeling like I was watching Dr. Phil deal with some psychopath.  If I want that kind of drama I can watch any number of other shows.

 

Let's hope we'll see more of these stories and fewer dysfunctional business owners, because I would like to believe tonight's episode is more typical of today's small businesses.

 

Agreed.  It was nice to watch an episode that wasn't Jerry Springer meets The Kardashians.  It was an honest business with flaws, and the people tried to improve.  They didn't improve immediately or perfectly, but they made efforts and did better.  I didn't like the furniture, I didn't like the mural, and associating with DirectBuy makes me think very little of Marcus's integrity, but as far as a TV show about improving failing businesses goes, this is what it should be.  I'm sure the next business will have lots of lying and screaming and owners with ties to organized crime, or some other nonsense, but this episode was definitely refreshing.

[sarthaz]

I missed the Direct Buy part.  Agree that that's a scam.  They use such high pressure techniques.  I think they are worse than the timeshare people.  The product placements in this show are always awkward.

 

I can post confidently that the product placement is seamless and not the least bit awkward.  And I think that confidence comes from knowing that my post will smoothly submit over my AT&T Wi-Fi.  The honest people at AT&T have just done an amazing job mobilizing my world.  They've truly raised the bar and helped me rethink possible.  Now, please excuse me while I go check on my AT&T backup sync.  I don't need to check on it, because it works so perfectly on its own, but it just gives me peace of mind to know that all of my data is safe and secure in the cloud.

[eddy]

Yeah - we get to see what car Marcus is driving, what card is in his wallet, AT&T on the computer, etc.

 

Reminds me of those movies where people are sitting around drinking Pepsi and every pop can in the scene is turned so the logo faces the camera.

 

I guess it's all supposed to be a subliminal message for weak minds.

 

Excuse me while I go grab another can of Pepsi out of the fridge.

[silverspoons]

Direct Buy is a members only showroom. Don't want to go to such a showroom to buy furniture then don't go. 

 

Its like Sam's Club or Costco. Someone who can afford 500 for a single chair it can easily pay the directbuy membership. 

I could afford a $500 chair but I would not spend $10k on a membership to buy a $500 chair. For a year my husband worked for a company that sold services to direct buy and the owner cuts his ties with direct buy after seeing so many young families scammed. In fact his company gave a 5% discount to direct buy members and anyone paying cash, senior, veteran, PTA member could get 5% off.  That is exactly how it was presented a Costco for making your dream home possible at a discount. We were living in Northern Utah at the time and so many young families would be buying a starter home for 150k and then sucked into the direct buy program and end up with a 7-10k debt for the membership on their credit and never buy a single item. I can't imagine Marcus did not know the reputation of Direct buy. I'm fine with the in-programming ads when it is a new computer for the business.

[Christina]

Someone said something to Marcus on Twitter about promoting Direct Buy, and his only response was that he wasn't promoting it. It makes me wonder if it was out of his hands or if he just doesn't see an issue with his business making furniture for them.

[nobodyyoucare]

Depends upon the Direct Buy location. A number of them the 4k is for three years and then it is 99 dollars a year after for seven years. A number of designers use Directbuy so they don't have to go through a lot of hassle to get onto the approved lists for members of those places that only sell to design companies.

 

If you are going to buy stuff in bulk then yes directbuy can save money. 50% off the price offered by retailers. So certain people will do direct buy such as home renovators. 

[Bungalow]

I cannot imagine a designer would settle for Direct Buy when they could join designer connections that show create furniture with great style. I was the first person here to complain about DB. We never invested but I was intrigued by the commercials. I investigated. Some individuals have invest in local DB only to have the store close...and you do not get you membership and monthly fees reimbursed. Shame on you, Marcus Lemonis for giving the air time.

Plus you pay 8 percent more for you purchases despite the membership.

Edited July 1, 2015 by Bungalow

[nobodyyoucare]

Such design shops are not in all areas and can be more difficult. Remember I said renovators. Those people would need furniture etc and may find direct buy a good money saving option over the years. 

[Shibori]

The fact that there might be someone, somewhere, who finds value in a Direct Buy membership doesn't negate the fact that the company has a shitty reputation and it has been legally established that they use deceptive sales practices. Examples of their tactics include telling potential members that they'll be banned from the stores forever if they don't buy a membership before they leave the building, or selling memberships at a location they know is about to close (just two examples from the NY settlement). They don't have to use those methods with every single potential member to establish a pattern of deceptive practices. Their reputation is the part that's relevant to Marcus's decision to consider doing business with them in the context of this show.

From the NY state Attorney General's office from their settlement with Direct Buy over deceptive sales practices:

"DirectBuy lured consumers into expensive memberships by promising exclusive member-only deals with substantial savings over retail prices. This company failed to deliver on its promises by taking advantage of consumers who were looking to save hard-earned money," said Attorney General Schneiderman. "Consumers should be wary of offers that seem too good to be true, especially when companies demand consumers make an immediate decision to become a club member or be barred forever. DirectBuy has been held accountable for its actions."

http://www.ag.ny.gov/press-release/ag-schneiderman-reaches-500000-settlement-directbuy-reimburse-new-york-consumers

Note that this concerns a settlement (to which both parties agreed), not just litigation claims. Direct Buy had to agree to the settlement, and they are barred from using the specific, questionable sales tactics for which they're known.

The original point was that it's surprising Marcus would even want to do business with them, much less lend them any air of legitimacy by mentioning them on the show. Not to mention that Direct Buy makes money from kickbacks and incentives from manufacturers, which is part of how they turn a profit (hence the claims of fraud- they don't actually sell at "cost" when it's inflated to fund the kickbacks). That doesn't seem like a great initial option for the expansion of a company that is struggling financially. Not to mention that by associating their quick order products with Direct Buy, legitimate design houses may no longer want to carry their custom and semi-custom pieces. Is the order significant and sustainable enough to risk cannibalizing your other lines of business? For a company with a crap reputation? Doesn't make sense.

[nobodyyoucare]

Marcus did Business because they are the largest franchiser of members-only consumer buying centers in North America

 

Direct Buy has been in business for decades with a number of stores having won awards and often close to a decade of no customer complaints with the Better Business Bureau. 

 

Hence why you have some stores having membership of 4k over two to three years then 99 dollars a year after that while others its 199 after those two to three years . 

[Shibori]

Promotional language taken from company press releases cited on a Wikipedia page that is itself flagged for being written like an advertisement doesn't change my personal opinion that I think less of Marcus for affiliating with Direct Buy.  Information on the location with "close to a decade of no customer complaints with the Better Business Bureau" you referenced refers to a single Direct Buy franchise location and came from a PR release in 2007- (prior to the mortgage crisis that tanked the renovation market) and since then that location and the other Boston location have both closed. The AG's amicus brief in the class action case was filed in 2011 and the NY settlement was announced in 2013 and address both historical and more recent business practices.

 

That said, when a new CEO took over last summer, he acknowledged the many problems the company faced, including downgraded credit, more than 100 federal lawsuits on the books, and questionable sales tactics (he was subject to the same "lifetime ban" hard sell on his first visit to his local club in 2014), and is apparently trying to turn the company around.  If that's the case and the company is in fact moving in that direction, it would be interesting to address on this episode, as many people who watch this show may have the same negative opinion of the company that I do.

 

I watch this show because I find the process and the business side of it interesting, and I would find a discussion about choosing to work with a beleaguered company attempting to turn its reputation around interesting as well.  In that case (and this is giving the recent Direct Buy turnaround talk the benefit of the doubt), two companies both trying to overcome obstacles and re-position themselves in the marketplace would be cogent to the episode and to the point of the show.

Edited July 2, 2015 by Shibori

[nobodyyoucare]

Marcus has to get a deal to have the quick turn around furniture out. If Direct Buy was the first to bite then why wouldn't Marcus talk to them and do a deal?

 

If another chain was interested Marcus would have gone there. 

[Bungalow]

I guess I am going to address the elephant in the room: (Nobody) you find value in Direct Buy despite all the high pressure sales tactics. Are you associated with DB? Please answer this question before you provide another glowing review of DB?

With regard to your comments about renovators using DB to access furniture quickly I have to tell you I have renovated many homes ...LR, DR, Bedroom, Kitchen cabinets etc using local suppliers and receiving the materials in a timely manner.

Edited July 2, 2015 by Bungalow

[Lola16]

I help run a biannual designer auction event in a NYC suburb and work with many top designers.  Most source their furniture and furnishings from non-chain stores, quite a few from consignment, a majority of pieces are custom and besides Ethan Allen and Stickley Audi, I don't know any other showrooms they'd shop from.  Perhaps Direct Buy is used by designers in small markets, I don't know.  But I do know that it isn't a brand I'd want to be associated with.

[Kiss my mutt]

The mural wasn't my taste but it definitely had a Miami/Cuban vibe so I thought it worked okay.

[rehoboth]

The mural wasn't my taste but it definitely had a Miami/Cuban vibe so I thought it worked okay.

 

I agree about the mural but it is better than a blank wall.  As I picture it, workers see it every morning on their way in to work and the story of the business is right there is front of their faces.  If it gives someone a lift on the way in, then it has done its job.

 

Marcus really seemed to go above and beyond for this group; something must have been pulling on his heartstrings - hometown Miami, Stevie, third generation business, etc...  I, too, got a little verklempt by the end of the show.

 

Totally enjoyable episode.

[nobodyyoucare]

 

(Nobody) you find value in Direct Buy despite all the high pressure sales tactics.

Just don't know why people are bitching about Marcus with a chain that carries furniture at that price point. Marcus would have contacted multiple chains and the chain that did the deal was Direct Buy. 

[qtpye]

There was something about the style of the mural that reminded me of communist propaganda posters.  I lived in Miami for a short while and I hope that is not offensive to the large Cuban American population who resides there.

 

Otherwise, I liked the family and am enjoying seeing deserving business owners get some much needed assistance.

 

Edited July 5, 2015 by qtpye

[rehoboth]

There was something about the style of the mural that reminded me of communist propaganda posters.  I lived in Miami for a short while and I hope that is not offensive to the large Cuban American population who resides there.

 

Otherwise, I liked the family and am enjoying seeing deserving business owners get some much needed assistance.

 

I don't know how many people will see that mural.  It is not at the showroom and the workplace may be in some kind of business park.  I think it is for the owners/workers.  The American Dream part is pretty big and if someone is offended (like the grandpa), it is just a paint job.  I thought Marcus wanted to leave them with something inspirational so that the grandfather's story will not be forgotten.

[Christina]

From Twitter: 

 

Marcus Lemonis ‏@marcuslemonis Jul 1

It's with a heavy heart that I ask for your thoughts & prayers for the Grafton family and the loss of our leader Esteban! RIP we love you.

[rehoboth]

It's so nice that Esteban got to see the business set back on the right course and his son and grandson working together.  Marcus gave him a lovely gift!