You can have the greatest product in the world, but if you're not out there selling it, it will go nowhere.
That's the lesson Peter Papadatos, owner of Southern California-based shower drain company Designer Drains, learns on this season's premiere episode of CNBC's "Billion Dollar Buyer."
The custom-made luxury drain company, which has operated since 2009, is struggling. Despite its artful designs, which are made of stainless steel to serve as "jewelry for your showers," as Papadatos puts it, the business brought in only $200,000 in revenue and $50,000 in gross profit last year.
The major bottleneck: too many employees and not enough sales, observes billionaire businessman Tilman Fertitta, who comes to visit the company in the hopes of using its drains for his Houston hotel, The Post Oak.
When Fertitta analyzes the business' financial statements, he finds that labor costs the company 50 percent of its sales, 10 percent more than he says it should.
"What if he loses a big account, and his labor suddenly becomes 60 percent? 70? 80? He won't survive," Fertitta explains.