Gilbert Martinez emigrated from Mexico to the United States in 1979 and settled in Southern California. He started a furniture manufacturing company in the Los Angeles suburbs and built an amazing commercial customer list.
Ana, Gilbert’s daughter, grew up in the family company and developed a strong interest in and skill for commercial furniture design. The father-daughter combination produced high-end furniture that helped them gain big-name clients like Caesars Entertainment, MGM, and the Coffee Bean. Ana is in charge of the company’s furniture designs, while Gilbert is in charge of manufacturing.
Pacific Hospitality’s primary business is producing commercial furnishings for restaurants, public areas, and hotel bedrooms. Residential and retail furniture orders account for just 10% of the company’s revenue.
A major decline in quality resulted in a reduction in cash flow and a big loss in sales. The costs were piling up, and orders were taking a long time to arrive. Following a loss of $46,000 in the previous year, sales were expected to reach close to $2.8 million, with no promises that they would turn a profit. Ana and her husband had each put $75,000 into the company.
Pacific Hospitality Was In Need Of Assistance And Turned To Marcus Lemonis And The Profit For Assistance.
The Profit On Pacific Hospitality Design Group
Episode 7 Of Season 4 Of The Profit
Marcus showed up at Pacific Hospitality’s showroom. He observed a lot of household furnishings and very little of the business things the firm normally offers while looking around. Marcus was delighted when Gilbert and Ana told him they had been creating business furniture in the same place for the previous 13 years.
Ana gives Marcus a 400-piece order for Planet Hollywood while giving him a tour of the showroom. She discusses her love for furniture design and how other business obligations have kept her away from the design side of the firm.
Marcus Gets Down To Business With His Finances
After investing in Grafton Furniture, a successful Florida firm previously featured on The Profit, Marcus has a good understanding of the furniture production and distribution sector. He saw Pacific Hospitality and Grafton Furniture as a possible partnership that may benefit both businesses.
Marcus discovered Ana and Gilbert didn’t have a complete understanding of their financials after reading over Pacific Hospitality’s records. The cash flow was managed by Ana and an accountant. Although it is tempting to underbid in order to sell merchandise, Ana revealed that her father would allow customers to underbid them in order to get the business. Even in a highly competitive industry, their profit margin was just 28 percent, which Marcus thought needed to be increased to at least 50 percent. He wanted the two to realize that in order to become profitable, they needed to cover their losses up to that point.
Marcus was dissatisfied with the manner in which the bodily surgeries were carried out. The workspace was chaotic, and the furniture manufacturing process had no flow. He knew that making the whole process more productive and cost-effective would need some work.
An Offer Has Been Made, And It Has Been Accepted
Marcus uncovered almost $400,000 in obligations when looking through the company’s accounts. Ana sobbed as she emphasized how important the firm was to her and how making furniture was what she was intended to accomplish with her life. Marcus admired Ana’s genuineness and enthusiasm. As an immigrant himself, he has always had a soft spot for foreign entrepreneurs hoping to make it big in America.
Marcus was looking for a way to combine Pacific Hospitality with Grafton Furniture. He offered Gilbert and Ana $300,000 in return for a 45 percent stake in the company, with Pacific Hospitality receiving 5% of Grafton’s shares to balance the arrangement. The bargain was approved by the father and daughter since they believed it was fair.
Grafton And Pacific Hospitality Join Forces
Marcus outlined the specifics of the arrangement and informed the Pacific Hospitality and Grafton Furniture team that he was in charge of the operations during the first group meeting. Ana mentioned her emotional attachment to some of the items throughout the process of choosing which inventory needed to be replaced. Finally, she realized that eliminating outdated inventory was an important element of Marcus’ plan to salvage the company, and work on upgrading the buildings began.
Marcus intended to enlist The Simple Greek, another of his ventures. Steve Grafton and Ana were both given two weeks to come up with a viable furniture design concept for the Greek restaurant since they both wanted creative autonomy.
Steve was the first to speak. The Simple Greek’s owner, Sam, was not thrilled with his design, believing it lacked ingenuity and vision. Steve was enraged by the criticism and refused to move on with his beliefs.
Ana presented designs that more appropriately matched the restaurant’s flavor and style, and she seemed confident and focused. Sam was ecstatic and struck a deal with Ana. Marcus was so impressed with Ana’s pitching and design abilities that he wanted to combine Pacific Hospitality and Grafton Furniture into one company. Ana would be in charge of the design department, while Steve would be in charge of the company’s business administration and money.
After The Profit, Pacific Hospitality
Marcus informed Ana that he has been waiting for someone with her skills and qualities for a long time. He placed her in charge of all of his firms’ creative aspects, including sales presentations and furniture design.
Ana and the 40-year-old company her father built could not have gotten much better than being on The Profit and starting a business connection with Marcus. Ana spent most of her time after reaching a contract with Marcus doing what she loved: creating high-quality commercial and residential furnishings.
Marcus built a cutting-edge showroom in New York to accommodate all of his investments’ creative features. Ana designed the furnishings as well as the arrangement of the workplace. She has increased her worth to Marcus by working on design projects for his other ventures, including as
Pacific Hospitality, or PH Designs, offers a large online inventory of home furniture design possibilities and was recently featured in the industry style journal Modern Luxury. The company’s revamped website and social media sites are updated on a regular basis.
Disclaimer: This post is for informative purposes only; Royal Pitch is not linked with Pacific Hospitality Designs, The Profit, or any of its companies.
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