Worldwide Trailers Summary

In this episode of the profit, Marcus Lemonis visits Worldwide Trailers. Worldwide Trailers is a company that manufactures and sells concession trailers located at Tampa, Florida. They specializes in food trailers, manufacture cable splicing trailers, mortuary trailers, tailgate trailers, refrigerated trailers, emergency response trailers and restroom trailers. The business started by former couple Tom and Nancy in 2001. Even if their personal relationship ended some years ago, they still remained business partners.

Worldwide Trailers makes $4 million in profit in the earlier years, but it lowers to $400,000. Marcus believes that if only Tom and Nancy understand the industry, the business can earn more than 10% revenue every year. Worldwide Trailers employs almost twenty (20) employees.

Marcus firmly believes that Worldwide Trailers can make it big.

• Small manufacturing plant.
• Not enough number of workers.
• Two (2) separate facilities that are miles apart.
• Costly deliveries.
• No inventory and checkout list.
• No cost analysis and quality control.

The deal:

Marcus is confident that Worldwide Trailers can grow into 20-million-business or even bigger. He proposed a deal to Tom and Nancy. His initial proposal is $500,000 for 50% ownership. Tom liked the deal and he wanted to go for it, but Nancy is having second thoughts. She believes that the business and her shares are much more than what Marcus has offered.

Marcus has added $200,000 to the deal. He made it $700,000 so that $600,000 will go to the business, and Tom and Nancy will get $50,000 a piece. Everyone agreed and the deal was made. The bank check was signed and they shook hands.

Solution:

• Establish a sole facility in Georgia.
• Introduce a new inventory system.
• Make checkout list and improve quality control.
• Create accurate and up-to-date reports.
• Employ the right process in place and protect jobs of the workers.

Steps