Small business investors and turnaround king Marcus Lemonis returned to CNBC’s “profit” and broadcast on Tuesday night at 10 pm. ET, on a tough family business have some anti-intuitive views.
In this week’s episode, Lemonis visited SWIM through Chuck Handy, a family-style swimwear business that focused on increasing customers. The company was founded in 2010 and is currently losing money and can not afford additional inventory.
Lemonis zeroes the company’s manufacturing process when he determines the key issues to be addressed.
At present, SWIM is manufacturing clothing in America, each swimsuit price of 15 dollars. Lemonis encourages families to turn to Chinese manufacturers, where the cost of suits will be close to $ 18.
It will be an unprecedented cost for long-term preservation.
Lemonis said: “Most people will take a look and say: why do you spend more money to get it here?”
“I will give you the answer: the minimum is lower, the delivery time is faster, you can grasp your hand from start to finish, rather than by e – mail to America, and return to hope that this is correct.
Lemonis does not choose the cheapest process, but rather emphasizes the value of transportation and delivery time, and better control the quality and accuracy of the product.
Lemonis said: “From the surface, it sounds like a good idea, because it is cheap.” But is it really cheaper? Once you go back and forth through the ocean, make any adjustments, you can not get the product in time to meet the market, no time really will spend your money?