Sweet Pete's Candy Shop on The Profit
Candy Shop - Season 2 - Episode206
|Sweet Pete's Candy Store owner Peter Behringer|
makes a sweet deal with Marcus Lemonis on The Profit Show
With only $10,000.00 in working capital and a sweet deal (or so it seemed) with the landlord, Dane Baird for a small retail space the business opened in 2010. By 2012, Sweet Pete's Candy Store was generating over $400,000.00 in sales but was operating at a $17k loss. When Lemonis walked into the Kitchen where hundreds of hand-made candy varieties get made from scratch, it was like walking into a small home kitchen.
Sweet Pete aka "The Mad Scientist Candy Maker" is more passionate about making candy than anyone on this Earth. When not experimenting in the kitchen, Peter hosts multiple candy making classes that's always a big hit for every child lucky enough to attend one of his classes. What child wouldn't love learning how to make different types of candy while taking some home after the class? At $15 per person, the demonstrations also represent a significant percentage of revenue being generated.
When Marcus Lemonis gets down to the business arrangements for Sweet Pete's, He discover's the Behringer's only own 50% of the company. Dane Baird, the owner of the property, owns the other 50%.
The couple's working their tails off selling over $400k worth of product, demonstrations and parties, yet they're living on $10k a year. Baird knows Peter and Allison will do whatever it takes to keep Sweet Pete's doors open and doesn't want to sell his 50% golden goose for any price.
It's hard not feeling sorry for the Behringer's knowing they're being held back by an unproductive owner/investor in a business they're so passionate about. Marcus gets Dane alone and has him "finally" admit He's only invested a total of $2,000.00 in cash into the Sweet Pete's Business. He does his best trying to convince everyone (mainly himself) he's earned 50% ownership, but nobody's buying it, especially Pete, knowing this guy's slowly destroying his dream.
Taking this lopsided business arrangement into account, Marcus outlines one of the most memorable offers for any business during this episode of The Profit Show. Marcus's offer is simple, Pete and Allison will retain their 50% ownership in Sweet Pete's if they give Marcus the other 50% for a $750,000.00 investment. $250k goes towards working capital and $500k building out a new Candy Factory at a better location. Lemonis then turns to Dane and offers him the original $2,000.00 investment back with a generous 5% interest on his money. It's either Baird takes the offer from Marcus or they'll just close the shop and change the name leaving him with nothing. Lemonis did offer Dane a bone to rebuild an equity stake in Sweet Pete's, but the job proved too difficult when Baird soon walked away from this soon-to-be lucrative offer.
If there is one classic line in All The Profit Show's Episode's that'll forever stand out, it's when Pete confronts Dane saying, "The difference between us two (referring to Allison) is we stand through it, we grind it out and we'll be here tomorrow and we'll be here the day after that and the day after that. I don't care how fkng hard it gets; I Will Be Here".
Listening to those words sent shivers down my spine. Every single Successful Entrepreneur on this planet lives by these words every single day whether they realize it or not.. Pete also had a few other choice words for his business partner saying, "Where are you? No Where. You're blowing with the wind, Brother". LOL. good for you Peter!
Dane apparently still didn't understand the original agreement before Marcus Lemonis started investing in Sweet Pete's Candy Factory. We'll, maybe he did but decided maybe it's time to sell his cash cow working only four hours per week. He decides to set up a meeting with Marcus and wants to get paid $150,000.00 selling his stake in Sweet Pete's. Hmm, didn't Lemonis and the Behringer's already control 100% of the Sweet Pete Business by this time during The Profit Show? Either way, in so many words, Marcus tells Dane He can have the Sweet Pete name. It didn't matter to Lemonis because He had Pete.
The funny thing is, if Dane had contributed more to the sweat equity needed to build this Brand, Lemonis probably would've paid him a decent "cash out" offer upfront. Instead, Dane backs out of the original deal during The Profit Show and walks out of the meeting without the profit he'd hoped Marcus would "give" him.
Damn, is this article getting long, but The Profit Show's drama was just getting started. Marcus, while being a fair negotiator in all the episode's of The Profit, seems 100% committed to finding ways to cut ties with Dane as an investor in Sweet Pete's. Lemonis refuses to pay off Dane $150,000.00 to go away, but instead will loan Pete and Allison additional money (in addition to the original agreement) to put into Sweet Pete's Candy Business. This will effectively dilute his shares if the dollar amount isn't matched 100%. Marcus decides to loan the Behringer's as much money as needed until this problem is no longer an issue. Check and Mate!
Sweet Pete's Update after The Profit
The Profit Star wasted little time getting started on the new Sweet Pete's location at 400 N. Hogan St. in the Historic Seminole Club in Jacksonville, FL. Marcus bought the building for $500k and spent another $2.3 million in renovations taking almost a year to complete.
Sweet Pete's become so successful in the new location, Marcus also bought the property next door helping further expand the business. The new combined location now covers over 23,000 square feet making Sweet Pete's one of the largest Candy Shops in the United States. Visiting Sweet Pete's Candy Factory is quickly becoming one of Jacksonville's biggest attraction's.
Not only has Sweet Pete's Candy become one of The Profit Shows Biggest Success Stories, Marcus has made life-long Friends with Pete and Allison for believing in their passion and making their dream come true.
Order Sweet Pete's Candy Online
+Sweet Pete's Candy