S03.E12: Kensington Garden Rooms

[Tara Ariano]

A luxury gazebo company in California started by two best friends from England suffers from poor workplace conditions and an inefficient business model that could mean the end of their relationship.

[attica]

"Luxury" gazebo? Whut?

 

I guess I'll have to tune in to find out how one makes a gazebo luxurious and what the market could be for such a thing.

[selhars]

Not all gazebos are created equal. Trust me, the plain ones you might get at a big box store or discounter…..are not the same as custom ones I've seen in some very, VERY upscale enclaves. The quality is not the same…not to mention the features and "bells and whistles" that could be added.

 

Look at sheds….is a metal tin can type shed, the same as an Amish hand-built wood one that looks like a barn, doll house, or matches a person's main house, complete with a porch, windows, and flower boxes on it?….. No it's not.

Edited November 17, 2015 by selhars

[Primetimer]

And other not-quite-burning questions about The Profit.

Read the story

[KHenry14]

Well, their process obviously stunk. What a mess that warehouse was. And they were penny wise and pound foolish. Investing in better machinery should have been a no brainer. And marketing exclusively at fairgrounds? There are tons of places beyond that to do business at. Overall, this was probably the easiest fix Marcus' ever had to do.

[sugarbaker design]

I must admit I did enjoy it when Marcus said "the deal is off the table" to the original douchebag investor.  It must not feel good to lose $250,000 in thirty seconds.

[pbutler111]

If nothing else, the show certainly made me want to buy one of their gazebos.

[califred]

I also was thrilled when he took the 250k off the table, that guy was an asshole.

The gazebos were beautiful!

[selhars]

I missed the end of the show…so was the entire deal with Marcus a no go because of the silent investor?

 

I had to watch at work so I didn't see certain scenes…..who was it -- which of the Brits who didn't understand that the investor guy….shouldn't be the one who was working -- that he was the money guy and THAT was his part. Was it the other two or marcus who didn't get that. OR did Marcus get it -- and only want to give the guy 250K? If so why didn't Marcus explain to the Brits -- uh hey guys, the money guy uses his money to work for him…he's NOT going to be here cutting wood. BECAUSE -- IF he were the money guy AND cutting wood he'd get even MORE of a cut of the business. DUH!

 

Maybe because I was watching at work, not seeing some scenes, and watching others with the sound down -- I didn't get a handle on some things. But this episode seemed….what's the word……not disjointed…because Marcus steps were clear….and not dysfunctional like the coffee people…..I don't know... maybe it's just because I didn't get how it finally turned out with Marcus and the other investor…… 

 

Also I love me some Marcus…but I did think HE was the one forcing the tension between the partners. Maybe that's because it was there already and he just has a certain number of days to cut to the chase. But at the start it did seem as if he's the one who forced the bad feelings to surface.

Edited November 18, 2015 by selhars

[sugarbaker design]

I had to watch at work so I didn't see certain scenes

 

I think the scenes you missed were key scenes.  Fab wasn't just a silent partner, he was accounts payable/receivable.  When he initially agreed to Marcus's offer, he also agreed to come up with a better business plan.  Instead he went to Mexico.  That's why the Brits were pissed, not because he wouldn't sand wood or cut timber.  After he got back from Mexico (with a nice tan, I might add), he changed his mind about the deal.  He felt he was thrown under the bus.  During his absence the new accounts payable/receivable lady found some deductions that Fab missed.  Marcus wasn't impressed with Fab, hence the $250K buyout.  But Fab got greedy and insisted on his son being reimbursed for website work.  That's when Marcus pulled the plug on the $250K offer.

[Gregg247]

I felt kind of bad for Kab.  He originally invested all the start-up money for 33% because he believed in these two young inexperienced guys (with a dream).  Now, once they're finally starting to make a profit, Marcus shows up and tells him that his % of the company is only going to be 12%, and, by the way, he's not working hard enough.

 

If I were Kab, that would have ticked me off royally.  I think he blew it when he wanted to get some cash for his son, too, after the fact.  he should have taken his $250k and walked out (although I would have stuck around as an investor).  Anyway, I think Kab got shafted.  He's Marcus' business partner, whether he wants to be or not.

 

The "budget" gazebo was beautiful, and people visiting Tru-Value seemed to like it, until the manager and some old guy showed up and told them to move the gazebo "out back in the gardening center" somewhere.  I didn't see any more interested customers after that!  I wonder if the filming ticked someone off at Tru-Value.

[caligirl50]

Great episode.

[caligirl50]

This episode is reminding me a bit of Sweet Pete's in regards to Kab.

The one owner who was having a baby told Marcus that he had to go to London during a certain critical time, why couldn't Kab tell Marcus that he has an already booked family vacation and won't be around for two of those three weeks.  Even the guys seemed surprised by his trip.  Had he not told them either?

  

Why this reminds me of Sweet Pete's was how focused Kab was on Marcus.  Same as the Sweet Pete's investor.  Kab didn't blame the guys, he blamed Marcus and then went too far.  

[sugarbaker design]

This episode is reminding me a bit of Sweet Pete's in regards to Kab.

 

I remember that tool!

[mojito]

Aww, another sweet episode where the villain gets his comeuppance and the sure-but-steady workerbee gets a piece of the pie. His ownership is only 2 percent lower than Dick Dastardly's. 

 

I thought that this episode was unique in that Marcus was invited not to save the company, but help it expand. No debts. Money in the bank. A great product. I liked the little bit of drama between the two friends because you see the passion people show for their work. The workerbee shed a couple tears, too, or maybe he just got something in his eye.

 

I'm glad that they showed the first economy gazebo. I wonder how many viewers might have been indifferent about a gazebo ceiling before they saw the first prototype and then the second. The first was really inferior.

 

I don't agree with the writer's assessment of Kab in the article. When Marcus tells you to come up with a business plan in three weeks, that not only includes the product but the money. Kab was the finance guy who was still actively involved in the money aspect of the company. How do you come up with a plan for working more efficiently without considering the guy who presents Marcus with cash flow estimates and other financial paperwork? Why would he not have any say in planning for future space and purchasing new equipment?

Edited November 18, 2015 by mojito

[nottopbravo]

The "budget" gazebo was beautiful, and people visiting Tru-Value seemed to like it, until the manager and some old guy showed up and told them to move the gazebo "out back in the gardening center" somewhere.  I didn't see any more interested customers after that!  I wonder if the filming ticked someone off at Tru-Value.

 

I wondered about that two, it was such a quick switch.  But I think Marcus would have edited that out if it made him or his show look bad.

[Amarsir]

There are certain episodes where Marcus is clearly a shit-stirrer. This is one of them.  I don't know if it's his process for getting to the bottom of things, or just for TV, or - what I really suspect - it's a technique to break people up so he can insert himself as a new buddy. (I've compared it in the past to what a Pick-Up Artist does to break down someone's self-esteem before swooping in.)

 

To wit:

Marcus: Do you think you do most of the work?

Brit 1:Yes.

Marcus: Do you think YOU do most of the work?

Brit 2: I'd say yes.

Marcus in a talking head: These guys seem really obsessed with who gets credit!

 

Fortunately there was a mostly-silent investor, and if there's one thing this show has taught us it's that those guys are easy pickings. I will say that the guy had no idea how to negotiate. But to invest $120,000 in two immigrants with no business and get them a website and functioning finance for no salary makes him a bit better than an "asshole". I wish the assholes in my life gave me $120k.

 

This is nothing like the guy at Sweet Petes who put in next to nothing and was the only one getting paid.  Kab invested in a business, supported them as they became profitable, and had the gall to have a pre-scheduled vacation during the weeks CNBC showed up.  Fuck him, right?

 

I will say he was horrible at negotiating, especially when the other guy has a camera crew and an editing room. You don't go along with everything and then send a resentful email later.  Marcus' buy-out offer of $150k for 1/3 is 1x annual profit and that's completely ridiculous.  He shouldn't have gone along with it. But once he did, agreeing and then complaining - and then agreeing to $250k and complaining again? Terrible technique.

 

-----------

 

Different topic but also Marcus as story-shaper:

 

"Our cost is $12,000 for materials and $2000 for labor".

...

"No wonder it costs $14,000 to make a gazebo. Their labor is so inefficient!"

 

No, Marcus. Their cost is materials. I completely agree that their workflow had huge room for improvement, but unless you can show that lots of wood was being wasted that has more to do with their long days than with the cost of goods.

 

Ugh. I like Marcus and the show, but there are just too many times when the story doesn't quite match the facts.

 

The "budget" gazebo was beautiful, and people visiting Tru-Value seemed to like it, until the manager and some old guy showed up and told them to move the gazebo "out back in the gardening center" somewhere.  I didn't see any more interested customers after that!  I wonder if the filming ticked someone off at Tru-Value.

That's interesting. I can't imagine they set up in front of the store in the first place without some kind of management approval, but as I watch again that scene was really tightly edited as if they were trying hard not to show full sentences. You might be on to something.

[attica]

Their cost is materials. I completely agree that their workflow had huge room for improvement, but unless you can show that lots of wood was being wasted that has more to do with their long days than with the cost of goods.

 

There was a short bit about a lot of the materials being bought at retail, so part of improving process is going to allow them to stop doing that, bringing timber costs down.

 

Cedar is a lovely and sturdy wood, but it has a strong toxicity component. Well, not strong in that it affects a lot of people, but strong in that those it does affect, it hammers. A man I knew who'd spent years and years building with pines, switched over to cedar and nearly killed himself with the respiratory effects. Cedar dust is a bitch. I'd be hesitant to buy a cedar gazebo, I guess  is my upshot here.

 

I live in the urban northeast, and one of the things I learned about state fairs elsewhere in the country (that just isn't the case where I am) is the commercial component. Along with the livestock judging, there's always a lot of exhibitors for, like, pleasure boats, and hot tubs, and shit like that. So, unlike Marcus, I wasn't surprised that a California fair would be a good place for a gazebo seller to exhibit, but yeah, a big box hardware place is definitely better.

 

For fellows that work seven days a week, all of their personal grooming seemed well kept up. Nice trendy haircuts, good beard-scaping. (Shallow?! Who, me?)

 

I feel bad for the English girlfriend stuck at home with a new baby, while he's all on tv getting high-fives from a billionaire and changing zero diapers. I bet a cross-cut saw has a far pleasanter whine than a kid with colic. 

 

And now for my obligatory curmudgeon: I don't think you can call it outdoor entertaining if your gazebo has plumbing, electricity and a wide-screen tv. I think the high end ones even have a/c. Bah! All you've done is expanded the inside of house. How are you going to listen to the breeze and the birds over the roar of the football game?

[nobodyyoucare]

http://www.kensingtongardenrooms.com/mobile/the-kensington-spa/

 

They call these garden rooms in home catalogs if you are upper middle or rich. Its not gazebos. 

[nobodyyoucare]

That looked more like a local city fair then a huge state fair. It was awfully small for a fair ground from what was shown.

[KHenry14]

That looked more like a local city fair then a huge state fair. It was awfully small for a fair ground from what was shown.

 

It's called the California Mid-State fair. Essentially it's the San Luis Obispo County Fair. And no it isn't anywhere near as big as the California State Fair in Sacramento

[nobodyyoucare]

Yeah state fairs can be huge and have a lot of corporate sponsors who have booths to show off products . Reason the fair allows this advertising is because the sponsors pay for the ride operation and rental. Fairs can be quite the adveristing venue depending upon the city or county. Not surprised Marcus wouldn't realize that. Hell I wasn't surprised the Sharks didn't know that Haunted Houses are major attractions that can net half a mill to millions in revenue just for being open two months and that the majority of people going were adults.   

[cooksdelight]

Cypress is one of the most durable woods, but I have no idea of how it compares in cost to cedar. My father used to make outdoor furniture and he'd make a special trip to a place in GA that sold the cypress. I imagine the cedar smells really nice, but I've also never smelled it when it gets wet.

[nobodyyoucare]

 

Kab invested in a business, supported them as they became profitable, and had the gall to have a pre-scheduled vacation during the weeks CNBC showed up.  Fuck him, right?

Who disappeared and didn't contact them for two weeks while the wife was posting to facebook. Meaning he had plenty of time to send emails and do work while on vacation. Lounging around on a beach or in a cabana in the shade one can do some work and send messages every day or two if the wife is able to update facebook while with him. 

[nobodyyoucare]

 

The one owner who was having a baby told Marcus that he had to go to London during a certain critical time

Although unlike Kab he made some calls to the other guy to plan the prototype. They still had miscommunication issues but Marcus saw that both were at fault and both needed to fix it.

 

 

until the manager and some old guy showed up and told them to move the gazebo "out back in the gardening center" somewhere.  I didn't see any more interested customers after that!  I wonder if the filming ticked someone off at Tru-Value.

The garden room looked like it was blocking the flow of foot traffic in the front of the store. In fact it was sticking out some from the building so there maybe some code issues if it had been left. Just because they didn't show anybody after it moved doesn't mean people were there. After it was moved they went elsewhere. They already got their reaction shots from people.