Tuesday, May 12, 2015

The Profit - SJC Custom Drums Update

On the season 3 premiere of The Profit, Marcus Lemonis is in Southbridge, Massachusetts with the hopes of making a deal with SJC Custom Drums.  Despite a massive following, they have issues with inventory, turn around time for their product, low margins and working capital.  Mike and Scott are two brothers that founded the company and Mike actually bought out Scott because they could not coexist.

Let's take a look at some information related to SJC Custom Drums as well as what kind of deal was made on the show.

News and Links Related To The Company:
  • The episode seemed to be filmed in January 2015 as the convention they were at was held at that time.
  • Here is the SJC Custom Drums website, which has been recently updated according to the site.
  • Here is the SJC Custom Drums Facebook Page, which has over 250,000 likes.  They are also pumping up their episode of The Profit, so that most likely means a deal was made.
  • Here is the SJC Custom Drums Instagram, Twitter, and Youtube
  • Here is an extended sneak peak of the episode from the CNBC website.  
  • An article about SJC Drums in April 2014 said they had a new COO and decreased their turnaround time from six months to two months.  This article actually became the About section of the SJC website.
  • Here is a video of the SJC mission statement if you are interested.  They also give monthly updates on their business on Youtube.
  • Scott and Mike actually had a reality TV show on the Halogen TV called Drum Heads, which premiered in October 2012.

The Deal From The Episode Plus Post-Show Updates (this will be updated continually):
  • The Deal - $400,000 for 33% of the business and Chris gets 33% of the business.  $300,000 goes to liabilities and $100,000 goes in the bank.
  • They have kept the concept of Good, Better, and Best drum kits and offer them for sale on their website (Link).
  • It doesn't appear that there are any SJC drums on the Sam Ash website.  Marcus confirmed the deal didn't work out - Link.
  • Scott is not a partner in the business, but does some consulting. (Link
  • A press release about the partnership said that their new manufacturing process has increased drum kit production from about 40 per month to over 100 per month. (Link). 
  • Updated 10/2015 - In addition to the Good, Better, and Best drum kits, they also sell additional ones (Garage, Wild Card, Signature Series).  The website also sells accessories and SJC drums apparel. 
  • Update 1/19/16 - It appears that Scott is no longer involved in the business. (Link)
  • UPDATE 11/2017 - SJC Drums plans to move from a 13,000 sq. foot facility to a 60,000 sq. foot facility in spring of 2018. SJC Drums is growing at 50-percent clip year over year and they have begun manufacturing hardware (cymbal stands, pedals, etc.) in Taiwan.  Mike Ciprari said he and his employees "still aren't rolling in the dough, but everyone is comfortable." (Link)

*To see how all of the businesses from The Profit are doing, go to the The Profit Updates page, and also Like us on Facebook or Follow Us on Twitter  to stay up to date with all things involving The Profit.

No comments:

Post a Comment