Transcript
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[applause]
[music]
Hey guys, welcome to Clappy and Frank
show. This week we have the great CEO
and co-founder of Modway Furniture. If
you're ever driving down the turnbike,
you see a big Jewish flag. [laughter]
You'll see it's in front of a Modway
furniture, right, Debbie?
>> That's right. Yeah. from uh after
October 7th, we decided
>> that it's time that we're proud who we
are and who we represent. And
>> you know, for the Jewish people, it's
the right thing to do at the time, you
know. So,
>> you get one star reviews from all the
anti-semites.
>> We actually do. We do get some onestar
reviews, but uh our community is great.
And uh all I had to do is uh actually
just a few weeks ago, I posted my status
that we got some one-star reviews. took
a screenshot of
>> not because they felt
>> we had hundreds of beautiful reviews you
know real genuine good beautiful reviews
of the truth of who we represent and
what we do. So real customers that
experienced uh you know a company and
what we stand for and uh what we do for
the community. Do you find that a lot of
people today after October 7th, like
every Jewish company at some point in
time, if they don't say something that's
aligned with the left-wing radicals,
people go on a campaign, oh, give that
guy a one-star review and then we have
to counterattack and say everybody give
it a fivestar review. Do you see this
game playing out in business a lot? I
haven't seen any of that. Um, what I
find is even [clears throat] though, you
know, you have some of these people that
leave a one-star review, but I think
it's a small minority, the majority of
the population are supportive or or
either don't care at all. So, you have
you have a lot of people either that are
paid to do it or or they're just, you
know, radicals. But, you know, I don't
think we should pay that much attention.
We have to stick to what we're proud of.
And, uh, just you got to stick to your
principles. So, that's what we want to
do. So you can't sell out just because
you think you know you might lose some
customers, lose some money. This is what
we do. So
>> CL on that note, do you think we need to
have a non Zionist Israeli supporting
flag? What do you think about Clappy?
>> Because I know it's
>> somebody was on the show.
>> Actually just yesterday I was at an
event uh you know we had this event the
networking event for people in the
warehousing business
>> and a guy sitting next to me he says I
want you to put a Msiah flag yellow
Mashia flag. But I think it was just
convincing. But he's like, you know,
you're kabad, you got to put the yellow
flag. I'm like, I don't know. But, you
know,
>> right after I was, why didn't we have a
nonzinist?
>> I know on the show what came up in the
last few months that because of a lot of
people not being that a lot of people
not wanting to have an Israeli flag. We
love the state. We love Erit Israel,
Hashem's holy land. We love the people
that live in Erit Israel. But Kabad was
never like major pro-Zionist, per se.
And when I was growing up as a kid, you
never would even think of putting an
Israeli flag in your house. I'm just
saying the way it is now. Everybody's
sugar coating everything. Um, so
somebody I think it was you or somebody
else on the show a few months ago said
that we should put a another a new flag
should be created where you're
pro-Jewish, pro being a proud Jew. Um,
we should make a flag. Now, some people
say it's the Mashiach flag, but I think
there should be another flag. Who's the
guy? Who's the guy? I have different
guy that owns the Patriots. Um, Craft.
He has these square like the blue one
thing. I think it's probably come from a
different standpoint where, you know,
they're like afraid of Israel, but they
still want to be Jewish. Disassociate
[laughter]
Israel with with Jews, which
[clears throat] I think is probably
wrong. You know, it's the only country
we have and we have to be proud of it.
And when we dive in every day, we say,
I mean, it's very clear that we have to
bring the kadusha back into tier. So,
just because Zionists might have been
hijacked, you know, in previous
generations by, you know, some
anti-religious, but today it's a
different story. And we, you know,
Zionism is part of, you know, coming of
Msiah and getting, you know, our country
back. So,
>> one of the interesting things about Tobi
the Aisha Grman. Me and my have a joke.
[laughter] We call we call the home.
>> The interesting thing about that I that
I find is that I growing up I knew the
family. Grman Crown Heights huge family.
My sister's
>> accountant right sister was always going
to the Clapman house. Yeah. The
>> repa's accountant.
>> That's right.
>> Aha was like best friends with my sister
Connie Simon. like besties. I grew up
she was like another like sister in the
family. Um her husband's Yoni. They live
in Florida. Like amazing people. And I
know I knew like all your brothers and
sisters like I kind of like knew the uh
the Grindman family. Um very nice, kind,
warm people. I just thought of your
father like you know like an accountant,
nice a people. Um and then like I
started noticing that like a trend like
a lot of your brothers are very
successful. I'm sure your sisters are
also young and very hardworking, good,
honest, big in the jewelry and in the
field, but like very like what got you
from being the son of an accountant to
like becoming this mogul
multi-gazillionaire
entrepreneur. What what what gave you
the drive?
>> Right. I just say I'm a poor boy from a
poor family and uh [laughter] right but
actually speak up on my father. So, you
know, the story is that uh when the
Rebel was looking for a new accountant
after uh the previous accountant wasn't
wellknav
and others, they were looking for a new
accountant and they said, "Okay, we have
to get someone because, you know, it
shouldn't be someone one of our own, one
of our going to know all the books and
all that." And so, they told the Reb,
you know, and the Reb says, "Who does
the Rashag use?" And my father was the
accountant for the rashag and for and
for
>> those listening that don't know the
rashag is the reb's brother-in-law.
>> Yeah the reb's brother-in-law Gurari. Uh
so actually I have experience when I was
a kid I helped the rash walk when I was
in shashiva you know my father was there
and I met the rashad quite a few times.
So I remember him very clearly. Uh so
and they said yeah you know uh from is
the accountant. So the Reb says, "So
that's who I want too is fart because he
learned, you know, he was he learned in
uh Bedford and Dean and then in 770 and
then uh um the Reb asked my father asked
the Reb to about going to college to my
father went to Brooklyn College. So the
gave him consented to he probably knew
he's going to go anyway. Could be, could
be not. But
>> preca or post CPA?"
>> Oh, that's how no that's how he became a
CPA. You went to Brooklyn. So that's
>> Brooklyn College is a good college. No,
>> I mean back then I don't know. No, it's
considered like it's better than Turo. I
mean, it's considered like a kash of a
college.
>> That was the only college probably to go
to back then.
>> Brooklyn College. Alan Ders once went to
Brooklyn College and some big alumni
coming out of
>> actually my father had some interesting
classmates in Bedford and Dean was
country and some others. I looked
through the airbook club
>> how did you get into the furniture
business?
>> What was your first play? First play.
>> Yeah. So, the first you grew up your
father's an accountant when you were 14
years old. What did you want to do from
9 to5 eventually when you finish your
I'm just saying
>> right. Um, I probably had no idea at 14
and probably a day before I started what
I'm doing. I had no idea still, you
know, it's kind of just things just fall
into into place.
>> You don't use Herman Miller chairs. Is
that the true story?
>> Well, yeah, that's one of the things,
right?
>> Not the first thing.
>> Well, so you know, I was just always
ambitious to do things to, you know,
even being Yeshiva, how can we make a
buck? And
>> in Yeshiva, you sold candies like
>> Yeah, actually. No. Well, I don't know
about candies, but I used to go to the
store, I'd buy like a box of ices after
sports, then I would sell it for, you
know, let's say a dollar a piece and
buy, you know, so you make a few dollar
any anyway just to make another few
dollars so I have some spending money.
So, always had that, you know, uh those
ideas. I I also traded stocks actually
as [laughter] when I was in Marstown,
yes. Um uh I used to go to the library
during breaks. I would bike there,
rollerblade there, and then I would
trade stocks, you know, check on some
stock tickers. What are we talking about
in the late 90s?
>> This is uh late 90s. Yeah. 98 99.
>> No smartphones. He'll go to the
computer.
>> Robert Herson brought me down to his
board meeting once many years ago. And I
and he said he wanted me to speak. So I
gave her that story and everybody loved
it. They're trading stock. I don't know
if that's what he wanted to hear. But uh
>> you were in your in your late teens.
>> Uh yeah, I was uh right. But
>> you knew how do you know about the
market? Who taught you about the market?
Like how do you know what to trade?
>> I I didn't I had no idea. I just uh you
know someone introduced me to it. You
know, I had I had had some money then,
you know, just from uh it's actually
money I got from an accident I was when
I was 11 years old that was in a car
accident from the country.
>> Money comes from Oh, [laughter]
>> so I got a few dollars then and then I
was just uh I invested all you know
different stocks probably doubled it and
I
>> Wait a second. You were in an accident
when you were 11 years old.
>> Yeah.
>> How bad?
>> Um it was you know the car was totaled.
Uh my brother was driving and um
>> you know afterwards people that saw the
car they said it's a miracle that we all
came out alive but you know burp we're
all okay
>> permanent. Who did you sue? Who did you
sue? Your brother [laughter]
>> pretty much
it was yeah one of those but uh we all
you know got but nothing you know
digits. I don't know if I'd ever do it
again. It was six digits. [laughter]
>> No it wasn't a lot. It was like we got
like 10 grand and then then was
>> So you were trading the 10 grand you got
for getting bashed up.
>> Yeah. Yeah. And then I I turned it maybe
into 20. And then uh I just remember one
day I thought I was smart Alec. I knew
and I probably lost it all in one day. I
thought I'm going to buy something. And
then it was and that you know what it
was worth it. It was the greatest lesson
I learned in life that you know you have
to be don't just uh be wild. You
actually work for your money and don't
just expect you know great returns but
you actually have to work hard for
everything you do and nothing comes
easy. So
>> wiped out. You got wiped out in your
early teens.
>> Yeah. Uh was actually so actually this
is when I met Schneer Hersh my my late
partner
>> we met Alam so uh I met him in Sydney
Australia
>> anus
>> you got sent from Maris town on to
Sydney
>> that's correct
>> do you know what's going on now in the
world of like yeshiva is the last year
>> the last year of yeshiva they go they go
to a last year yeshiva and then they get
sent away by the yeshiva to go on like
to represent the world
>> terra now you involved in alter
>> I mean me Yeah, I'm not so involved.
>> They say this year there's 450 Bahim
just there for the last year.
>> So, how do they find enough locations
for them? I don't know. But actually, I
was talking. Yeah. Well, maybe I should
finish the last story and then we could
get back to that. But, uh, so I met
that's what that's how actually I met
Sher Hersh because he had some interest
in stocks. I taught him, you know,
things I knew. And then, uh, and I think
we both traded. I think it was in uh, it
was MCI, you know, if you remember that.
>> WorldCom.
>> So, it was about to go bankrupt and I'm
like, wow, it's so cheap. let me buy
some uh shares and then it just all
disappeared and we both me and Cher both
lost our money but you know but we
formed a bond and that's how
>> you lost money together you said
>> we lost money together but now we became
you know now we became close friends and
>> so you became close friends in Sydney
Australia y
>> and then you came back to America
>> then we came back to America right I
mean first I went to do smika in Los
Angeles uh then I then I did like a suka
business there I started did suka
building you know I used to uh I put up
like flyers on the streets
>> builders building furniture since he's
20.
>> Well, and then I realized, you know, I
could also buy Sukas. I found like a
temp place I could buy all the parts and
then I started selling Sukas.
>> Put all the regular guys on the
business.
>> Yeah. So, you know, it was a nice gig,
you know, for probably did it like for
one year.
>> Well, so this is coming up. It's
appropo. He started in the second
business.
>> But, you know, it was a good lesson.
these little things, you know, teach you
different things that, you know, how to
work hard. And, um, so then a few years
later, um,
>> a second, you lost a lot of money in
stocks, even if it was 20 grand. But
then you're doing manual labor, knocking
up a suka, you're already making 20
bucks an hour.
>> Well, listen, [laughter] I made I
probably made 10 grand, you know, for
myself as a single guy then over, you
know, a month's work or whatever, a few
weeks or whatever it was.
>> So, you're handy. You're handy with
hammer and nails. You're good.
>> I figure out, you know, I'll I'll figure
out whatever I need to do. when you're
ambitious and you have a goal, even if
you're not handy, you become handy. So,
it's everybody's capable of anything as
long as they, you know, they work hard.
So, uh that's what you learn. People
say, "Oh, I'm not handy. I'm not
capable. I'm not smart." But really, any
everybody's smart if they want to be.
>> Your father works very hard. I'm saying
accountants work very hard. They sit in
the office all day.
>> A lot of hours. Sure.
>> Put in hours. So, you didn't have a lazy
streak in your body amazing.
>> Uh I don't know. I mean, you know, maybe
we were lazy as kids because we had
everything we needed. You know, we we
had a pretty good upbringing. Yeah, we
had we felt like we we had everything we
needed. So, as kids could be lazy, but
as you get older and you're like, you
know what, I want to have a certain
goal. I want to do this or that. And
then you just got to change your nature.
>> Did you were you always dreaming to
become successful financially or it just
happened over time?
>> No, not really. I I felt like I more
like had ambitions like to have an
influence. um like in order to do
certain things. You want better life.
You want to be able to give something
more for your kids and also to change
things like you know you see there's a
lot of need in the community. Uh you see
you know education you seem and there's
so many things to do. So I'm like the
only way to do it is through the dollar.
So you know I'll work hard and whatever
happens happens. But like you know when
you're starting a business in the
beginning I had no idea like I'm like
most 99% this is going to flop. So I
don't know if I'm going to live like
another day is going to last and the
business is not going to survive but
have I could have enough money to pay
the bills to last another day and just
focus on doing that. What's the
contingency plan? you don't know but
that you know maybe I could get a job
somewhere else but for many years people
don't realize that when you start a
business how much pain and how hard it
is and you're not really thinking about
how much money to make because you're
like I don't know if I'll ever really
make money but I'm just trying to grow
the business and see what happens. So
day one, did you ever work for someone
or you always you started your on your
own day one?
>> I had some I well I had some other jobs.
So actually it was interesting uh now
that you actually been helping with we
started a little 3PL business over
warehousing and Moshe helps find some
clients for us and so uh someone calls
me and he says you know I have this uh I
store I need pallets for storage. I
stored in this other warehouse. I need
more space. Uh you know is my name and
and um and then you might know my family
and I know my father. He lives on this
block. And I said yeah and you were my
student. [laughter]
So actually I was teaching the second
grade in laba for about 6 months you
know as I'm starting out the business
then. So I needed some extra money just
even to fund like you know the basic
stuff for the business.
>> Teaching English.
>> So I was teaching English and I never
learned English by the way. [laughter]
But, you know, they gave me the books
and they said, "Here, go teach it." I'm
like, "Okay, we'll figure it out."
>> Single or married then?
>> A single.
>> So, and I would carry another phone on
me to answer customer service calls for
for [laughter] the business as I'm
teaching. So, sometimes they were all
teaching. I'll be like, "Hey kids, one
second. I got to take a call." And then,
so I go to the classroom, just give me a
second. I go out and then all of a
sudden all the kids are following me
down the hall. [laughter]
>> Now, now that I don't work in B&H
anymore, I could say that I'm running my
Judeica and Art business while I'm
working in B&H. I look at the caller ID
and if it was a $5,000 call,
>> figure it out. [laughter]
>> I used to tell customers, "Oh my god,
FedEx is here. I have to sign for a
package.
>> I got to run out for a minute."
[laughter]
>> Hey kids, hold up. Emergency. Yes, the
furniture is working.
>> But, you know, teaching was very was
probably one of the most rewarding
things I did. Even though we didn't
really get paid much for it or you
hardly get paid, but sometimes get paid
very late or whatever. But when you see
that you're teaching and kids understand
it, uh, if it's like the most rewarding
thing you could do, that's what
>> I think you should have told the kids,
I'm taking a customer service call at
work and I'm going to teach you guys all
how to make money cuz like you were
studying just to learn how to make
pronouncer, right? So you give them
hands-on experience,
>> right?
>> So day one you were So day one, how why
did you pick furniture? Like
>> so uh what happened was we were um so
what I was doing is I was trying to
figure out ways to make money. So
Craigslist was just starting then. Uh,
so I would go on Craigslist, look for
like, you know, buy any chachkis or
closeouts or they have like the Palm
Pilots then or
>> Oh my god.
>> all these old, you know, all these other
things that were
>> spring visors, Palm Pilots. Wow.
>> So, anything that I saw like this value,
I could get a deal, I would go go to
Manhattan and pick it up from someone,
list it on eBay, and then like sell it
for like double the price. So, so I was
doing things like that. I found like
close outs of like those big monitors
when they just came up with the flat
screen, but it was still the big
>> big screen, but it was flat instead of
like, you know, the curved. So I found
like a close out of that and then uh so
I bought like a you know a lot of that
selling it on eBay. Um and then so what
happened was uh you know so I knew
Schneer um and Schneer says you know
there's this lot of Herman Miller
chairs.
>> Those are expensive chairs. Those office
chairs they're like $1,000 and up.
>> Right. New.
>> Yeah. Yeah. They could be $1,000 then.
It was a little bit less back then.
>> But um so it's actually he's like I have
this lot. It's about a hundred chairs.
>> Wow. And we uh I think we were going to
buy for like $300 a chair. We need like
30 grand.
>> They were new or used.
>> Used. So they're coming out of
Bloomberg. Bloomberg was
>> so they had those uh
>> like a trillion dollar company. They
could afford.
>> So they were clearing out their chairs.
So So I said, "Let's do it." So we
actually went to we said he said, "Let's
first go out and discuss our
partnership." So uh we went out to the
gone pizza and [laughter] we were only
able to afford like you know a dollar
because we didn't have money. How'd you
get 30 grand to to put out?
>> Wait, what's that? I love Don pizza
growing up. It's not the same. It's not
what it used to be.
>> We might have even split a pizza. I
don't know if we could afford a whole
pizza. I [laughter] don't remember. But
anyway, but we decided, okay, we're
going to make, you know, we're going to
do it together and we're going to figure
out how to put the money together.
>> It was maxed out. We maxed out some
credit cards. I had some cash, you know,
and I just we somehow
>> we figured uh you know, I think one of
the things we did was we had a little
time. We started listing on eBay
pre-elling pre-selling because those
days they didn't have a requirement to
ship within uh you know that that quick.
So we already pre-sold like half the lot
maybe or something like that. So then we
>> you getting it for 300. So you were
listing it on eBay for how much?
>> Probably like I don't know $4.99 I'm
guessing if I remember correctly. But
you know around then
>> that's a good markup.
>> Well shipping how much is shipping?
>> Uh then uh maybe it was like $25 or so.
>> Heavy are very heavy.
>> Only $25 back then the rates were a lot
different then. So things changed the
it's a whole different world. Uh so so
we pre-sold a lot. So we had some cash
to fund it. I rented a budget truck and
I drove the truck to Manhattan. And the
only experience I have driving something
big was a mitzvah tank that I once drove
[laughter] when I was a bucker and I
knocked off a bunch of mirrors and
things like that. But uh so I'm driving
this big truck that's massive. I'm this
little guy driving this massive truck
and uh going through these streets of
Manhattan and I'm like you know scared
you know that I don't know what I'm
going to hit. But anyway was late at
night. we had to go to pick it up. We
loaded it up and then uh we had to
figure out where to store it. So we um I
put it some in my parents garage, then
some in Schneer's parents garage and we
just figured it out, you know. Um and
then then we realized after we received
it, we have
>> You were about 20 23 years old. 22. How
old are you?
>> I was Yeah, about 23. Yeah.
>> You were both single?
>> Both single.
>> Okay.
>> So we have this lot of chairs, but then
we realized one problem. All the uh the
color of the mesh was blue. And we
started and the only thing that were
selling was black. So we started selling
them as black.
>> So we didn't know what to do, right? So
So this we met this Haitian guy and he's
like, "Don't worry, I could dye them for
you. Just all you got to take them
apart, you know,
>> Asian or Haitian." Hian
Haiti.
>> Yeah. And he's like, "I'm going to bring
it to this. You're going to go to this
uh to these Indian food place." Roi,
what are they called? Rodi. Rodi. Roi.
Yeah. Yeah. One of these places. And um
go meet me in the back or something.
Something weird like that. Anyway, we
take apart all the meshes, which is a
massive job to take apart all these
chairs, 100 chairs, and uh we're like,
"Okay,
>> they're so heavy. You don't stand."
>> By the way, I know what's going on.
Everybody wants the same item. You think
the world is so unique. You were saying
everybody goes towards the same
painting. Everybody wants the Herman
Miller chair in black.
>> You don't want it in blue. One yuckle
wants it in blue out of a thousand.
>> You're going to hear the rest of the
story. So, the punch line. So, um so we
bring it. So, he dyes it. We come pick
it up and we get it back. We see it's
still like a little smell
>> and we're like, "Okay, it's" and I feel
it's not still like coming off a little
bit of the uh the dye. So, I'm like,
"Okay, well, no problem. I'll get some
blow dryers. We'll try to [laughter]
we'll try to get it to dry quicker." So,
you know, we tried all different things
like that. It helped a little bit. So,
we're like, you know, and meanwhile
customers are calling. They want their
orders already.
>> Where's my chair?
>> Yeah. Where's my chair? So, we're
already getting calls. So, we're under a
lot of pressure. So, I'm like, you know
what? by the time after chips until they
arrive or you know a day or two or
whatever it is dry it'll dry it was no
problem. So
>> dry and shipping. Yeah.
>> Yeah. So you know so anyway so we
shipped all these chairs and then um
we're like great and then all of a
sudden we're starting to get calls.
>> You ruined my you know $1,000 suit and
uh you're going [laughter] to pay for it
>> and the ink is coming off and everybody
>> and they're back to the reviews. You're
getting bad
>> back. I don't know. It was before they
did reviews back then. I didn't know if
there was reviews. Was it reviews? I
don't even remember. But uh so anyway,
so we decided we're going to make
everybody a hoe where, you know,
>> we're going to buy $1,000 chairs to give
back $500.
>> Then we found out we could buy, you
know, original parts from Herman Miller
through some dealers and we replaced uh
you know, we replaced all the backs and
then we said, you know what, we're just
going to sell it for less, the blue
ones, whatever, because maybe some we
didn't do yet. D and then
>> so we end up making we probably lost a
lot of money on the first deal, but it
was a great lesson, you know, how you
just got to own up to your mistakes. I
just people watching I just to life
lessons when you buy out a closeout the
fine print is very important. So
somebody's selling you $1,000 chair for
300 make sure it's colors that people
want. You knew you were getting blue.
>> You know I I don't remember all the
details. It's been a while ago but this
is a great story.
>> You were sitting in the pizza shop.
Schneer didn't tell you the part that
half of them are blue. [laughter]
>> It could be. We just thought uh you know
opportunity to make money. Let's do it
you know and we just didn't think that
much and we just jumped in. So uh but
but since then we found other good
suppliers and uh we were doing
>> you stuck to the Herman Miller for a
while or
>> No, we did some other there was other
offices.
>> So what was your next deal? I'm so
curious.
>> Was uh so then we were desperate to find
inventory. So I remember just going
through the yellow pages and just
calling just saying going through one
office liquid there after another just
calling every number in the country and
slowly we were finding people. Yeah, we
have a lot. You know, one guy in New
Hampshire, we went up there, we bought,
you know, uh I drove the truck, you
know, woke up 4 in the morning, drove up
a truck there.
>> What did you get in New Hampshire? What
what type of stuff?
>> Uh all the it was like they had Herman
Millers, they had human scales and
steelcase, all these other nice products
and you know was you know we had uh
we're doing well finding more products
but over the years it started becoming a
little more difficult to source. You
always have to look for new inventory
and it wasn't easy. After how long did
you go from your sharing your parents'
garages uh till getting like a warehouse
or like a a commercial space?
>> Well, it probably lasted um maybe six
months to a year and then we uh we got
our first warehouse in Sterling Place
off East Parkway.
>> Mh.
>> We were like sharing a space. Uh and
then um you know after that we moved to
uh Junior Street. Actually just last
night I met the our first landlord. Uh
he's actually in another business. He
was renting it from the city. This uh
building on Junior Street. Juni
>> Junius in in uh in [snorts] Bedstey not
Bedstey I'm sorry in Brownsville
Brownsville yeah
>> right right near the border of our airof
is uh on Van Cindran right there
>> we'll get to there we'll get there
>> yeah [laughter] there you go but just uh
when I when I was working on the air it
just reminded me of all these old
>> when did Monway start what day
>> what year
>> so that's another so that's so that's
another story so from we transitioned
from office chairs to other imported
furniture so it's we realize it's hard
to constantly source off these office
chairs. So, Schneer started doing
research and he found some products that
we could import from China and uh sell.
>> You know, you know, you know what I
think we missed? You you decide like
you're going to be partners. How's it
going to work? Did you like did you
incorporate and like make legal drafts
that you're going to be partners and
50/50 or like it was right away?
>> It was like a handshake. We were good
friends and we trusted you trusted each
other. How many years down the road did
you actually legalize it?
>> Um I don't think we ever did, you You
never did?
>> No, I think we did. We did.
>> 10 years land.
>> Yeah, probably a long time later. Uh,
>> so you guys never had any fights.
Everything was clean cut.
>> Yeah, we we were like brothers, you
know. We we uh trust each other. We
cared about each other and uh you know,
I would tell him all my secrets. He
would tell me like we we knew
everything. Like
>> So you didn't leave us anything for 10
years?
>> Like when he told me that he got sick
before he told his parents.
>> Wow.
>> So yeah, I mean that's what he told me.
He's like I didn't tell you yet, but he
wanted to tell me first. So maybe his
brother knew or something, but yeah. Um
>> Yes. what we're getting starting. So
then so what happened?
>> You asked a question. You didn't ask a
question. Why did you when did you
change? Why did you become mad way?
>> Right. So no, I'm going to get there. So
we're transitioning to that. So um so
then we we're looking for other things
to to source like furniture. So we uh
Schneer found uh you know from China a
place we could source furniture. So we
uh we said okay we're just going to go
small. We got a few pallets worth of
stuff. We did a uh you know on a mixed
container. just and I went to the port
to pick it up and it was sitting in the
warehouse. Uh and then like completely
forgot about it and then like at some
point I'm like you know we got to clean
up the warehouse. I don't know what
these pallets are here for. I'm like you
know let me let's let's just sell it so
we get instead of throwing it out right.
So I put it up online within a day like
it just sold. So
>> what was it?
>> Uh was like some designer modern
classics like uh you know
>> like this like this designer
>> like this but it was like uh different
replicas of different you know uh
>> of famous pieces. Yeah. Famous sold
really quickly and like we got to order
containers.
>> Yeah. On eBay. On eBay and we had like a
website. Yeah. We're doing Google ads.
You know the the days where still it was
very cheap to do Google ads. So it
worked very well.
>> And then we then we started doing our
full containers. And then over time
we're like, you know, we should get rid
of these office chair business. That is
just a pain. So and that's how we
transitioned to that. Uh and we were
only doing retail. We were only selling
these uh you know online like through
eBay or our website. We weren't doing
any wholesale direct to consumer. And
then we had this thought, you know,
maybe we should do wholesale. I think
the name of our website then was like
shop seating. So I said,
>> "Shop seating.
>> Shop seating." So So I printed out like
a few pictures of our products. I went
to Manhattan. I just took the subway and
I just went to one random furniture
store and I just showed him. I said,
"These are our products. Would you be
interested in buying it? We only had a
retail site." He's like, "Sure. Could
you deliver tomorrow?" [laughter]
And like I told him price. I'm like,
"Yeah, we'll do And then so we realized
right away you know we should really
look at the wholesale business instead
of you know doing retail and that's so
then we started a wholesale business and
we called it east end Imports that was
uh uh the first name of
>> East and Imports imports
>> that's how we came up with that name.
>> Over the years we realized we need a
better sounding name. So Schneer was
very uh creative and uh he's always good
at sourcing and things like that. And so
he was driving on Broadway one night and
he was thinking okay thinking of names
he's like okay we need to do something
like you know we're doing modern
products so he's like modern Broadway
and then it clicked together in Modway
right when he told me name Mway I'm like
they say names are an avoa but usually
that's for naming children I think
naming [laughter] business naming
businesses it's also an avoa
>> yeah I told my wife when I want to name
our kids it's nova that's it I can't
help it right
>> my and I for years I was going by Izzy
rant and I think you said it sounds
angry Angry. It sounds angry and we I
couldn't think of a name for years. It
was a stalemate because I couldn't think
of a good name.
>> And how did you come up with Clappy Nu?
>> I was hoping you're going to do the
Clappy song. You know, happy Clappy.
That's
>> They gave you Rush.
>> Oh, really?
>> Yeah. Yeah. Yeah. We were at the H
concert. We asked the owner of the song.
He says, "You have full rush to use it
whenever you want." No.
>> Oh, she's not, you know, he's okay with
just calling just doing the clappy song,
right? Are you [laughter]
kidding?
>> We're going to have to think. I'm sure
there's better Frank. If I play it on my
saxophone, [laughter] then I'll feel
part of it.
>> Okay.
>> But we do need I do I was telling Yan
Gordon yesterday.
I just recently he he's a composer. I
said it is on my bucket list to compose
a hit song. It's on my you know my
retirement. I it is on the plan. So then
you got to became Modway.
>> Yeah. Then we became Modway. That was
>> and you agreed to the name right away.
>> Oh, I love the name as soon as we heard
it. That was like a brilliant name. Uh
it was great. Um yeah, so
>> we actually have a whole story how we
got the domain name Modway because first
we did Modway we you know we we
copyrighted patented and all that and uh
and then we we found the domain modway
furniture.com which was a long name a
lot to type right
>> so but uh so then we said you know maybe
we should start looking to see if we
could get domain mod but it was it was a
domain squatter on it and it was taken
it wasn't available so we reached out
and I think he wanted like 10k 20k 25k I
don't remember what it was, but that was
too much money for us. We were just
start, you know, we were still starting
out. Um, and so we started lowballing
and he said no. And then and then we uh
our attorney that did the patent for us,
he says, you know, you have maybe a
legal claim because you have the patent
in it. They're domain squatting. They
renewed it. They shouldn't have. It's
yours. Blah blah blah. So he says we
could start a claim. So we we did
there's you know a special panel that
governs the domains. I forget what it's
called, but we we did a submission to
claim the domain. And of course, we lost
because it was probably bad advice from
the attorney at that time.
>> I was thinking if he had it before you,
like how could you he you don't know,
>> right? So that was it. But you know, so
anyway, um so then at a later point,
we're like, okay, we're we're buying it
whatever the price is. And we end up
buying it for about 100 125,000 25,000
better because we were we a few years
later we're doing much better. Like
we'll pay whatever it is.
>> You're saying maybe you should have
paid. Yeah. But you know what? We didn't
have the money then. So 125 or whatever
it was compared to 24 was cheaper
because you had the money. So it doesn't
really matter.
>> Cash is king.
>> Cash is king. Yeah. It's whatever you
have at that time. But you know now
we're glad we bought that name because I
think it's important to have uh
>> So when you do you do you care or love
furniture or just you'll buy and sell
anything?
>> Listen. I I tell people I'm in the
business of making money. So
>> you don't care what you're selling?
>> No. I mean, listen, I like it because,
you know, I've been doing it for a long
time and uh, you know, I used to be more
involved in in the sourcing part. I used
to travel with sharers to China and all
that
>> cuz I know you for many years. The first
time in my life you hear you actually
talking about furniture. You walked into
the series like, "Oh, is this our
furniture?"
>> Otherwise, I never heard you talk about
the air all day. Doesn't talk anything
about furniture. [laughter]
>> Well, that's because you know, you're on
the airboard with me. So, that's why.
>> So, I first of all, but so he I actually
realized he's in the furniture business
for the first time. Walked into this.
Oh, is this furniture? So you you were
doing furniture for how many years
before you got married?
>> Um
let's see. I got married I was 25 for a
few years. Couple years two three years.
>> Just a little bit about your personal
life. You married a very family like
that.
>> Yeah. Sure.
>> Your father-in-law is like by the way
he's also furniture. He he like does
rental chairs for simas cheers and
mattress our what mattresses he sells
mattresses.
>> Right. Right. As soon as my wife got in
the car for the first date and she asked
me what I do. I said I'm in competition
with your father. It [laughter] was
right on the first flight.
>> Small conversation.
>> Yeah.
>> But not only that actually we we I used
to play in our house as a kid. Yeah.
Growing up.
>> You used to play in their house. Is that
how the happened?
>> Is that how it happened? But it could
have there was already a connection.
There was a connection there. Uh my my
sister and my wife's sister were good
friends and she used to bring me along,
you know.
>> So again, they're very family. So I was
thinking about like your wife. Did she
want to go on and like not be a you know
the wife of a working guy or how did
that come up in dating? Oh no, not so
actually my wife was at that point I
thought she was too modern for me at
that point for [laughter] a second. I
was thinking that maybe I never told her
that but I was thinking that you know
because you know they had different
interests. Now my wife is way more from
than me but you know that's [laughter]
great. I look up to her but yeah.
>> So tell me how do you pick your SKs like
like there's like five how many SKs you
currently have?
>> How many different types of SKs for how
many different types of furniturees you
have currently stocked?
>> Oh different categories. How many
>> different items? Oh, we have
>> like a red couch,
>> right? Oh, we could have probably 7 to
10,000 SKs probably.
>> How do you manage or like how do you
pick? I want this one and that one and
this one. And how long do they last?
>> We add about, you know, 1,500 to 2,000
SKs a year. Yeah.
>> A year.
>> Yeah. But then we discontinue a lot.
>> So, it's like, you know, your best
sellers ultimately get discontinued. So,
there's always cycles and trends. And uh
>> So, you decided you want to be a home
furniture company. Home furniture
company is like sofas, love seats,
pull apart couches, like like the huge
ones.
>> Well, we're not only home, you know, we
do outdoor furniture, I mean, which is
home of course, but we also do office
furniture like so office chairs. Uh, you
know, we we all do anything that that
fits that could somewhat fit. And, you
know, we do bathroom vanities.
>> What present do you design yourself
versus just office shelves? You go to
China or the the factory, boom, in the
in the show.
>> Right now, we everything's our own
creation. We
>> alter everything. Yeah, we try to make
everything our own kadesh. It should be
unique to us.
>> How long did you start designing your
own stuff? How long like how many years
in
>> did we start? I mean, you know, the
beginning our products were more like
replicas and we realized it's it's a
little bit of a tough business even
though
I guess using the sis letters and we
didn't we were ignorant. We didn't want
mean to like
>> you know take out the designs but you
know you learn that. Okay. Um so we said
okay we have to do something different
you know even though there was everybody
was doing it. And it was actually a
change because a lot of things were in
the open market because it you know um
it was a new law that was uh called
trade dress that started on furniture
and it only happened like kind of when
we were in business right so first all
these stuff were on the open market all
these designs they were from the you
know half a century old but then there's
a a trade dress which is a new area in
the in the copyright so that kind of
limited a lot of like you can't just
take old designs and kind of reintroduce
it. So we at that point we're like you
know we have to get into uh
>> so how much does our own creative
>> and actually we see a lot of companies
copy our designs. So it's a compliment
but
>> you stop that you stop you stopped them.
>> Well it's like if we don't have a if we
don't uh put a copyright or patent on it
you know there's nothing you can't
really do. It's
>> do you copyright every design you do?
>> No we don't because you know you're
adding so many products. If you have a
great product something innovative then
you'll you know you'll you'll spend the
money.
>> How many copies have you filed since you
started your company?
>> Not that many. 5 10 20.
>> Yeah. Not even.
>> Not even.
>> So, there's no iconic Modway piece.
>> Oh, really? No.
>> I mean, you know, a lot of stuff we
could tell. I look at it, I know it's a
modern.
>> You put your tags on there or Yeah. On
every piece there's something
>> every every piece we should have is
yours. Where would your tag
>> usually on the bottom?
>> Under.
>> Under. Yeah.
>> So, you can't Why don't you put it
outside?
>> Just you don't want to ruin the design.
It's aesthetically.
>> What's the thing with the mattresses? It
says if you take off the tag, you got to
prison for 10 years. What's the story
with the mattresses? Unbelievable.
Right.
>> What is the tag on the mattress? Well, a
mattress is a whole another animal. We
do We actually used to do a lot of
mattresses. We had some of the top
positions on Amazon with mattresses, but
now we kind of got out of that.
>> I want to ask you a mattress story.
>> Oh, you have to ask what's with the
prison then?
>> Yeah. You know about the prison?
>> I'm not I'm not involved in that. I
couldn't really answer that because I
don't really know these laws.
>> A couple years ago, a couple years ago,
after we were married, like 12, 13
years, my wife, my back, my wife's back
started hurting and we started calling
up and these mattresses are like a,000
to $2,000 just for the back for the box.
Bring in the mattress. And I was like,
"Touffy, hook me up because I hear
you're always on the phone with my I'm"
I'm like, "Oh, I got a hook up."
Whatever. You're like, "Okay, so here,
which mattress do you want?" You start
sending me links. Now, the mistake was
is that I was sending my wife the links
with the prices and she's seeing prices
$179, $2.99, $3.99, $4.99, and she wants
to see the $2,000, AND SHE'S LIKE, "I
DON'T WANT THIS JOB."
>> AND [laughter] I called you on the phone
on speaker, and you're like, Izzy, it's
all a scam. It's all a farce. The whole
mattress industry is a monopoly far from
a few companies that inflate the prices.
>> They're all the same product, right?
>> What?
>> They're all made the same components.
>> Explain me what's going on with the
mattress.
>> No. So, so actually that's when we got
into the mattress. We were the early
ones to get a mattress in a box. That
was the event that changed the whole
>> mattress. It comes in a box instead of
having to have a truck deliver it.
>> Correct. So, most of the money in
general furniture and especially then
mattresses was in logistics and just,
you know, people carrying it and that's
expensive to hire people get a truck and
you just bring a mattress into the home
is that's very costly. There's also
tremendous market by mattresses then
everything was sold only through the
stores never online
>> in layman terms you're talking about
coiled versus foam
>> both so mattress
>> roll up a coil
>> so this is so that it was innovation
that was made to figure out that you
could take a mattress that's fully
expanded and then make it like a pancake
so there's machines that compress it and
then you roll it up you vacuum pack it
put it in a box and then so you could do
that to a coil mattress you could do it
to a foam mattress
>> coiled yeah
>> you could have a coiled spring mattress
springs right back down we do it all I
didn't know that.
>> Sure. Sure. We've been selling many of
those. Um, so that's when I remember
going to CH many years ago in China,
seeing it, I was blown away. Wow, what's
this mattress in a box? I'm like, we
must do it, you know, and then a few
years later,
>> you were one of the first ones to bring
it in.
>> We're one of the earlier ones to not
maybe not the first, but wasn't that
popular on Amazon, all that. So, we were
able to get, you know, good positioning
and we were selling a tremendous amount
of mattresses back when you go into
sleep.
>> But it went from completely opposite
from mattresses being have these crazy
markup $2,000 for something that the
materials cost like, you know, virtually
nothing to on Amazon where it was a rat
race to the to the bottom where, you
know, you're making very slim margins
because you just want to get the top
position. So, that was, you know, that's
why you're seeing these
>> when you go into sleep and they try to
sell you a $2,200 mattress.
>> They're all out of business. I mean,
this is over.
>> Oh, nobody's buying the $2,200 mattress.
Maybe there are some old-timers, but you
know, the young people are tempor.
[laughter]
>> So, how much should a good full-size
mattress cost you today?
>> I mean, you could get a few in your
house. What are the one you you sleep
on? What does it cost of you?
>> Oh, what does it cost? Yeah. I have one
of our mattresses that, you know,
>> the one you the one you sleep on is how
much?
>> Few hundred.
>> $200 right now.
>> Yeah. Yeah.
>> How thick is it?
>> I probably took one of the discontinued
ones we had, you know. [laughter]
>> How thick is it? How thick is it?
>> Uh 10 in 12 in. That's thick, right?
>> Yeah.
>> So, all those things on top and
>> there are different layers of foam.
There's the blue foam and there's the
gel and uh you know,
>> so tempropedic is not a thing anymore.
People are not spending two three
>> people use different names and different
things and it's just it's all gimmicks.
Yeah,
>> it's all gimmicks really.
>> You know, you have different styles of
foam and the and the softness. There is
differences obviously. But, you know,
it's it's just about the manufacturing.
If they're doing the pouring the uh the
the the chemicals, you know, it's just a
bunch of chemicals that create the foam.
if they didn't know the right mixture.
>> It's the old recipe, but it's the same,
you know, the same cost.
>> That's why the mattress companies
advertise all day long because their
margins are so big. They could afford
it.
>> Yeah. But they used to, but now you
don't really hear Do you hear mattress
advertisements anymore?
>> Foam should be just as good as coiled.
>> Uh, no. It's a different, you know, some
people like coils, some people like
foam. It depends. I mean, I think
usually, uh, what I, you know, my kids
like is the, uh, coil with the pillow
top. Uh, so have more of a bounce to it.
So kids might like that. I like it more
firm, you know, more steady. I think
older people probably like that, you
know, adults probably like foam, like a
nice, you know, firm foam or a little
little softness. But
>> what's more popular, firm or soft?
>> Well, it depends for who. I mean,
everybody
>> in general the overall market.
>> There's different preferences. Some
people like it more pillow top, soft,
more plush, uh, like a euro top they
call it,
>> or, you know, some like it firm. It
depends on you're not so you're not so
involved in mattresses anymore. You're
still
>> No. So now we don't do as much. You
know, we aren't doing we're not like,
you know, right now it's not it's not
all about how much you sell. It's about
how much you make. So, like, you know,
if you want [clears throat] to sell
more, you could sell we could sell
billions of dollars worth it, but we'll
probably lose a billion dollars on the
way. You know,
>> you're saying basically became
commoditized and it's a race to the
bottom,
>> right?
>> Anytimes your brand list race to the
bottom. Correct.
>> Right. It was actually uh just read in
the news a couple weeks ago, a big
mattress factory in North Carolina burnt
down. A factory that we probably used to
buy from their Chinese factory. And uh
you know I wonder why it burnt down.
[laughter]
>> It burnt down.
>> It could be. I mean you know I'm not
>> mattresses are very inflammatory,
>> right? Exactly. It is inflammatory.
Flamable.
>> That's another reasonable inflammator.
>> You're inflammatory.
>> Yeah. The fire department insurance
companies hate anybody that's doing
mattresses because the foam. Yeah. It's
a massive liability.
>> That means your insurance is
>> So we have to do in order to store
mattresses, we need a special sprinklers
system in the in those racks. You need,
you know, higher pressure and all that.
>> Speaking about your warehouse. It's like
what? New Jersey 700,000 ft.
>> 630,000.
>> 630. And you don't Can you tell me you
don't have electricity bill? Correct.
>> We put solar. We did a solar project to
>> You don't pay us pays for
>> Well, it's about 90 something% or
something.
>> 90% you're not paying at the same time.
Is that crazy?
>> Oh, now we're actually in the middle of
a much bigger project, community solar
project where
>> where we sell electricity to the
community. So, it's about it's about
four to five times our original project,
which covers almost our entire roof.
Also, your new project can make so much
that even your
>> Well, we're going to be selling
electricity to utility company who sells
it, you know, sells it to local
community.
>> They should do a data center because
>> affordable electricity kind of.
>> What about a data center to be your next
>> Well, a data center is very could be
very controversial because, you know,
they the usually uh uh res don't like
the data centers near the house because
>> uh first of all, it doesn't create jobs
and it uses a lot of a lot of the water
and their big drain and you know this
big ugly building. They say it makes
noise. People don't really like it. They
want They want to see businesses that
are bringing jobs to the community and
we bring a lot of jobs.
>> My boy brings a lot of jobs to New
Jersey.
>> Yeah. To local community. We have a lot
of local people. So
>> 100 150 people. 100.
>> Yeah, about that. Yeah.
>> Around there.
>> Uh clap. Talking about our sponsors.
>> Talking about our lovely sponsors. We
need people.
>> Okay. Hold on. Why isn't Mway should
probably know be a furniture sponsor in
the show?
>> Modwway should definitely become a
furniture.
>> Hold on. You don't spend much on
marketing, right?
>> Not really. You don't do Google ads
anymore?
>> Don't do hardly.
>> Amazon PPC?
>> No. None of that. We used to we used to
spend tons on that. And then
>> And why'd you stop?
>> Because uh you started looking at it,
analyzing, we realized how much money
we're losing. Doesn't make sense.
>> And then at one point I'm like you know
we're spending millions of dollars on
Amazon marketing and I'm like and then I
started looking at the products. I'm
like they're not really profitable after
all the spend. [laughter] And they try
to, you know, the marketing company that
we're were using, they're saying, "No,
you really have to look at the bigger
picture and all these stories." And we
were like scared that if we turn off
advertising, our business go kut like no
one's going to buy our stuff. It's only
because of the marketing. They said,
"You know what? Let's turn it off for a
week and see what happens." Turn it for
a week everything was the same.
>> Wow. So you made a few weeks later.
Okay. It started seeing little dips, but
I'm like, "At least we're making money,
you know?" So advertising. I just turned
off all advertising. I'm like, "What did
you spend the 5 million a year? It could
be. Yeah. I mean 5 million next. You
just turned off what just turned it off
and then you million. We're starting to
make more money and maybe sales went
down a little bit from it, but at least
you know we can't just spin our wheels
forever. You know,
>> Speaking of our sponsors,
>> speaking of our sponsors, I love when
people taste pure aloe. Pure is our
wonderful sponsor that makes a delicious
healthy drink. Very hard to get pure
aloe with a good hir. It's all the way
in Asia. My friends at CRC send the
mashkim down to Asia. They make it in
many, many, many flavors.
>> You know what country or just Asia? Do
>> you know where they make it?
>> Asia is a big place. You know, Israel is
also
>> China. I think China.
>> China.
>> Maybe Vietnam.
>> You know the best part when they say
PRC. Oh yeah. You know what PRC means?
>> Yeah. Probably China. [laughter]
>> China.
>> I love it. Okay.
>> Last week we had pomegranate. The honor
of Rashana, the pomegranate. This week
we're going to try peach.
>> Okay. Very nice.
>> I might go to China next month. We'll
see.
>> It even has It even has the pieces, the
aloe pieces.
>> The show's during this. It's a It's
gonna be after I think it's after Sukus
maybe.
>> Canton.
>> Uh, no. It's just a big f It's a big
furniture show. Shanghai furniture show
you go down to the factory. See how
kosher it is.
>> I was I'm traumatized for going to
factories. I don't do that. I just go to
the shows.
>> You don't you used to go to the
>> I used to go to factories and when I saw
there I'm not going back.
>> So refreshing. So refreshing.
>> I already made a broa.
M. It's very nice.
>> Low in calories, low in sugar, healthy,
>> no chemicals, no coloring. Available
where all fine kosher groceries are
available. Taste my friends drink from
pure aloe. Delicious. Delicious.
Delicious.
>> Speaking of beverage,
>> speaking of great beverages, my friends
put in millions of dollars into making
the um the Anessa, what's it called? The
um
>> anis anis.
>> Anist anis plant. Also natural,
delicious, low in alcohol, high in
taste. Bakan, it's auente.
Um, delicious. It's one of the best
spirits in the market.
>> Okay.
>> I mean, it comes in a gift box.
>> Best packaging.
>> Great packaging.
>> Oh, you drink on the job. Okay.
>> You want some?
>> No, no, thank you.
>> I only drink at the, you know,
>> force them to
>> Yeah. [laughter]
The Bakan is distributed by Royal um
available where fine liquors are sold. A
lot of people that were into like
Smeirnov and were into vodkas, I got
them into the um bakan.
>> Mhm.
>> Changing their drinking habits.
Delicious. Again, a little lower in
alcohol. Very natural.
>> What% alcohol?
>> Like 30%.
>> Oh, 30% different. I think it's one's
even lower.
>> So, you ever got drunk before?
>> You ever got drunk?
>> Yeah.
>> Oh, sure. I mean, actually, I remember
getting drunk when I was in
>> uh when I was in Russia. I was a
counselor at Vati in the I was in St.
Petersburg, Lengrad. So,
>> are you more fun when you're drunk than
me?
>> Well, listen, I don't really get drunk,
but this is what happened was I was a a
co-conselor with another Russian uh
bucker boy and um so the the parents
came once or the father of one of the
kids came and he gave us a tip. So, he
gave us a bottle of vodka and a
watermelon [laughter] and so the
co-conser said, "Hey, it's we're both
counselors together. We must split it
half half." Exactly. So I'm like, "No
way." But he forced me to drink. We
drank half the bottle and half the
watermelon, and I was never so drunk in
my life. But I felt great when I was
drunk, but I'm like, "That's I can't
ever do this again." But
>> So you don't drink since then?
>> No, I I I got drunk uh the night we got
engaged. So well, you know, when I got
engaged to my wife. So uh otherwise, I
pretty controlled. And right now, I
actually hardly drink any alcohol. Try
to stay healthy. Over 40, life starts
catching up and you're healthy. You got
to start watch be careful what you eat,
what you consume. Be careful what bed
you sleep on.
>> When you when you when you do have
alcohol, you want to make sure that it's
natural. Uh it's made by a top company
like Pakan and it's not too high in
alcohol. And just enjoy it. Delicious.
>> Yeah.
>> Our favorite at Crown Butcher.
>> CH Butcher. I don't know who Crown is,
but
he says Crown Butcher.
>> I think there used to be a place Crown
Butcher. Uh CH Butcher.
>> One of the biggest Arab supporters.
sourced [laughter]
sourced sourced locally. It's the meat.
It's the American Angus beef. Um made
here u it's chefed locally in New Jersey
in New York and uh it's it's um salted
brought to New York. The Rabanam Hasher
top top CHK. They have a beautiful
restaurant on Troy Avenue. Um so
>> you've been to the restaurant?
>> I have many times. It's a great
restaurant. I love
>> CH Butcher on Troy Avenue. You don't
have to go spend $200 on
>> around the corner. It's the easiest. I
go with my kids. I need to take them out
for anything. Actually did uh for my
son, we did a foran. I took the whole
class to to Yeah.
>> And it was a great time.
>> You have a kids birthday.
>> CH Butcher. And then they have the uh
>> My father also loves that restaurant all
the time.
>> And then their butcher shop is on Albony
Avenue. Fresh, delicious. They have
frozen stuff that you can heat up in the
oven. They have all the uh the cigars
with meat, the uh the ras with meat.
There's a few other stuff. They make a
lot of good stuff. And now his father is
working on some herbal stuff he's going
to come and tell us about.
>> But the the beef jerky comes in like 10
different flavors. Oh,
>> very very healthy.
>> This is new. This beef fat seen before.
No. Low in fat, low in sodium.
No sugar. [laughter]
>> Loads of protein. 11 to 16 g of protein.
>> I sent [clears throat] my kid with two
boxes full to camp. I don't think he
came back with half his clothing, but he
for sure came back with zero cuz they
ate it all up. [laughter]
capping it all up. Everybody loves it.
The there's something about the butcher
jerky. They just do it well
>> on the go.
>> And it's for the IDF soldiers. They give
it out to get, you know, some doesn't. I
don't know if he does. It could be.
>> Oh, he does. I know. In general, they
>> general. These are very good for for the
soldiers.
>> Um, now all these I was saying when
we're drinking and we're eating. How do
you make a sim without the sim tracking
app? The sim tracking app. You basically
go into the app. You download it for
free. Me unlock like your earlier time
in your company where you had no money.
You want the breakfast or dinner. What
do you do? Go in the Sima tracker.
>> Simka tracker. You put in Sima tracker
Apple and Android. You see a little
yingala with the blue p with the blue
yam and the langap. The simka tracker.
>> You load your wedding invitations there.
It automatically goes into your
contacts. You could from one push of a
button you could invite whichever
contacts you wanted to.
>> Oh genius.
>> They get reminders. You save money on
foraka stamps getting lost in the mail.
Everybody in your contacts could get it.
They get reminders. Then the people they
go into their calendar
>> mail physical paper.
>> No if you know if you want to. But over
here you have it all. You get reminders.
It sends all your contacts reminders
with the push of a button of your that's
coming up. People have the tracker app.
It tells them all the name. You put in
the search. You put in any names of your
friends. Tells you which date the
wedding is. is the baritzvah.
You could send gifts to people that are
making a tells you which gifts were
already purchased.
>> Is there like a gift registry on it or
>> that also but you could send gifts to
people platters. It tells you where the
wedding is holding
>> if people update it. Yeah.
>> It's just such a special app sim app. It
makes life cheaper because you don't
have to send out invitations. It makes
it convenient that you don't forget
people. They don't forget about coming
to the wedding or the event because they
get reminders. You could send platters,
gifts. It tells you what was already
sent. Just everything life is simple. I
strongly suggest everybody load the SIM
tracker app onto their phones. Make life
bas
have a car.
>> But how do you get to a simka? How do
you get to the butcher shop? How do you
go to the grocery store to get the pure
or the bakan?
>> You need to get a car. And most people
are suffering because they don't have
two cars. Get a second car. Insurance
only goes up a drop. But once you need a
car
>> in Brooklyn, it's hard.
>> There's only one way. There's only one
way to get a car.
>> You call my friends at wheels to lease.
Oh, yes.
>> You call Saul. Hershk. Actually, is he
Herman?
>> Can you help me out? I just got a new
Suburban because my wife didn't want a
minivan anymore
>> and we need a bigger car.
>> How long was he on the phone with you
trying to help you?
>> Yeah. I was like, who's this guy? What's
he want from me? Why is he speaking to
me for so long? You know,
>> like over an hour.
>> Yeah.
>> Just guarding. Such a nice guy.
>> Is he?
>> No. Saul. Saul.
>> They're the best. the best. They're
[laughter] just a MA to deal with. They
make it easy. Yeah.
>> YOU DON'T WANT TO START CALLING A
DEALERSHIP. The car guys have the worst
reputations trying to hack you and sell
you over there. And I say this every
week. How many customers I How much are
you paying for your car? I don't know. I
said, "How do you not know?" They said,
"I went into the conversation knowing
it's a certain price. They're always
cheaper. I don't have to I don't have to
price check them." Is that a good
feeling not to have to price check?
>> Speaking of price checking, Clappy,
>> so Wheels, call my friends at wheels.
They will get you the new minivan for
school. They will get you the cargo
vans. They will get you the You said
that to you one time looking to get a
cherry picker for the Air.
>> That's right. That's right. [laughter]
You remember you you connected
>> the cherry picker. They were trying to
get you the best deal on a cherry
picker,
>> right?
>> Didn't get it yet.
>> Yeah.
>> Don't get it. Don't get it.
>> Well, actually, you know, we were just
talking. So, actually recently, well,
uh, Williamsburg Air reached out to me
because I'm involved with the Crown
Heights area. Me and Moi are on the
board and we we take care of it, which
is a whole whole long story, a long a
lot to talk about obviously. Uh, so they
needed help recently with their ARV
because there was some stuff going on.
I'm not even sure exactly. So, oh, I get
a call a few weeks ago. Uh, this is so
and so from the Williamsburg area. I
need to meet you urgently. I said,
"Okay, I'm actually going on vacation.
We're on the way to go to Atlantic City
on vacation and we're going to be away
for a few days." I said, "Let's do a
Zoom. You could do a call. Just, you
know, I'm not available to meet." He's
like, "This is urgent. I'm gonna come
anywhere in the world anytime. just tell
me an address. So then I asked my wife,
is it okay? Right when as soon as we
arrived to our vacation home, we did an
Airbnb there.
>> What town? Not AC.
>> It was a maze landing. It was just, you
know, about a half hour.
>> More family friendly.
>> Yeah. I was on a, you know, a house on a
lake. Beautiful. Uh, so we just arrived
an hour later. A couple guys, couple of
pop come from Williamsburg. They show up
and um we I gave them you know all the
information I could help them with
because I was involved in building
different air and you know like in Crown
Heights. Then we did a we did a Marstown
air
>> building and financing.
>> Yeah. So Marstown we put up an air a few
years ago. I helped the community there
to to you know to plan it because I knew
builders and and mapping and all that.
And then we did another one in Monroe,
New Jersey where I have a another home
that near near Mway near work. Uh so I
have some experience in that. So anyway
it was it's amazing the aus that we have
finally at Williamsburg they connected
their just last week they connected
their to heights now crown heights and
Williamsburg is one thing that's real
[laughter]
they say that makes a amongst isn't that
what it says in the says that that
the come everybody's like separate says
in the but when you make an everybody
and that's where the kush could only
come are being through the through the
>> I mean you hear a lot of stories where
you have sat people marrying into family
so many you know and it's kind of we're
not separate we're all one unit it's
like no more like your sabbad
>> you sharing one wall
>> yeah so we're sh one wall on Atlantic
Avenue you know so they're sharing our
Atlantic Avenue wall
>> so Mishi always makes a joke that Louis
Shiner the big billionaire Louis Shiner
the Aisha from from my from um his
daughter married a labavature but now I
interviewed his brother in Bar Park and
his brother was saying that he didn't
they said they lived in Crown Heights
and they went to Lavage.
>> They're coming back to their roots.
They're
>> so it's not that they came to they
married into Lavage. They're coming back
to where they started from invage.
>> Correct.
>> We got to get Louis on the show. He's
welcome any week he wants. We'll bring
them on to the show.
>> Pas deals.
>> Now, if you want to get a deal, also
he's a s guy deal. Speaking speaking
about deals, if you want to make sure
you get a good deal on anything you buy
in your day-to-day life,
>> the heck you need is PZ deals.
>> Yesterday, my wife actually I came home,
she's like, "Oh, I was looking for
something for the house." She's like, "I
know I'm getting a good deal. I found it
on PZ deals."
>> Somebody's into the deals.
>> You want a good deal?
>> The shirt?
>> Yeah.
>> This is $20.
>> $20.
>> Is that Is that a good deal?
>> You probably found it on PZ deals.
>> This uh Yeah, maybe.
>> All good deals come through PZ deals,
>> dude. Where do you splurge on anything?
Your shoes are expensive or no?
>> No.
>> Nothing.
>> Nothing. What do I just get what I need?
What do I need
>> splurge on anything?
>> That's that's not my goal in life to,
you know, to have uh
>> not to splurge.
>> Just everything has to functional has to
work.
>> But you know what? If you use Card
Right.
>> Yeah.
>> Card Right. Our hush of a sponsor, Mr.
Geller from Card.
>> It's also a free app, Android, Apple,
Card, you go into the app store, Card,
and it tells you which credit cards to
sign up for that are going to be the
best for you, the best savings. And you
go into the app when you're going to buy
something, it tells you which one of
your cards to use. A lot of times a
guy's about to load $100 worth of gas on
his car and they say, "Oh, if you go to
this and this, if you use this card,
you'll get 6% back now. Save a lot of
money. Six bucks right here. $100, 6%."
So, Card Wright's a very, very, very
important app to use when you're
applying for credit cards. When your
children are applying for credit cards,
when your spouses, it tells you which
credit cards are going to be best for
your lifestyle. And when you're
shopping, it tells you which one of your
credit cards for each individual
purchase will make it better. So, you
use Cartrite together with uh PZ deals
when you're going to buy it. Then when
you're going to buy, it tells you which
car to use. So it's very important that
all our sponsorships have actors amongst
each other.
>> When I asked the founder of B&H if he
flies business of first class, Mr.
Shriber, he's like, "No, I would never
pay. I have miles on my credit cards."
Anyways, [laughter]
the multi-billion gazillionaire, Mr.
Shriber, refuses to spend money on
business first class.
>> Right. Actually, when I first [laughter]
first one or two times when I went to
China first time, I flew economy
>> because I couldn't I said, "Why should I
pay more than $1,000 to go there, you
know?" Um but after after one or two
trips I'm like that I can't do this
anymore. So then I'm like you know it's
a business expense when I arrived to
China at least I could operate otherwise
if you you can't sleep in
>> cash for points. What do you you spend
time on cash?
>> If we have points you use points. Yeah.
>> Whatever.
>> Sometimes it could be uh you know you
need a lot of points for it. you know
those those trips together.
>> I think at one time was about to buy
points from your partner Shane one time.
He said, "Oh, reorganizing our business
and I'm going to get the point." I
forgot he was selling the points.
>> Oh, interesting.
>> I did one barter with the painting. He
gave me a couch for a painting.
>> Tia told me afterwards he's not sure if
it was authorized, but
>> Oh, REALLY? [laughter]
>> YEAH. [gasps] ACTUALLY, talking about
paintings. So recently, so I happened to
be a of theam cipher. So
>> yeah. So I wanted a painting of cipher
in my house. So I reached out to my she
said could you uh help me find a you
know a painter to to find you know the
painting. So anyway, he found beautiful
made made a beautiful painting and then
we find out that the painting of the
picture that we took we had a picture of
the cipher original artist of that
picture his name was Moa Frank
>> and it happened to be uh
>> related to me somehow.
>> Wow.
The story was that he needed to marry
off his daughter. He didn't have enough
money. So he asked the cipher if he
could uh draw his uh image
>> his image and he just so he could pay
for the wedding and he allowed him and
then years later of the wants to paint
and it gets too much. Isn't that isn't
that great? [laughter]
>> Wowim
talking
>> people ask all the time I'm sorry
>> I'd rather talk about lighter things but
you know it's it's something to speak
about. You have a business partner. You
spent so many many years. You when you
shiver with him and you started and
you're buying furniture and dying it in
the backyard of a Haitian restaurant and
you go through all these life
experiences and then he got very sick
and he passed away and he left a wife
and many children. Um, what's it like
losing a partner, not a marriage partner
but a business partner, right? I mean,
uh, it was very difficult and I probably
still have a lot of trauma from it
today. Uh it was a very hard time uh
especially seeing him suffer and and you
know he had such strong paken like you
know throughout um you know the whole
ordeal and he always was I'm going to be
fine I'm going to be fine even like up
to you know close to the end and you
know actually during that time when he
was closer to the end we were in the
process of trying to buy our building in
uh New Jersey the one that we have on
the turnpike and that transaction was
during COVID, no banks wanted to lend
because it was the beginning of CO and
they were everybody was scared.
Everything like froze and we had an
option that if we missed that option
date, we lose the purchase option and if
we don't get it because the we signed
that deal like many years before when
they they uh just on the land. So, you
know, they said we'll build a building
for you. You'll sign a long lease
without option to buy. So, since they
had a lease and tow on this uh on this
property, so they could get good
financing. So, it just worked for
everybody. So, we got a good good deal
on it. But we were like we can't lose
this option. But it came co and no one's
lending and they they said oh sorry
we're not going to extend your option.
Uh and then you know a lot of stories
happened that everything was massive
brought this from step to step and you
see how yashm saving us because there
was a lot of complexities surrounding
>> the money to buy it.
>> So it's you know it was it's a miracle.
The whole thing was a miracle. And
Schneer at that point when he was really
sick, he's like, and when we closed on
it, he said, "If Hashem was able to make
that happen, which everything worked out
like unbelievable, like a perfect
puzzle. There's so many moving parts to
that." And he write a whole book about
that. But he said, "Hashem is going to
make me better cuz if he could make that
miracle that we bought the building was
a massive mira."
>> Yeah. So, and I and I agreed with him at
that point because I was going through
the roller coaster ride of trying to
figure out how to make this building
happen, which I, you know, we almost
gave up hope many times, but we said
we're just going to um but you know,
unfortunately, um you know, I spoke to
him just a couple days before he passed
away. Uh you know, people were saying
that say for him because he's not doing
well. So, I posted on the Schul group,
please say for snare. After five minutes
after I posted a Schneer calls me, he's
like, why did you post that? Why are you
scaring everybody? I'm going to be fine.
Don't post it. Don't. So I'm like sorry
you know and then so I'm like okay you
know he was speaking fine he sounded
fine he'll be okay right
>> did he ever once tell you like if this
and this happens to me like what you
should do with the business
>> never he has completing
nothing
>> no I mean he always told me I'm going to
be fine and you know we're just going
through this phase and we're you know
stronger treatment and whatever but so
it was you know it's only a few times in
my life that I cried and that was one of
them when you know when you know when
when I heard the news about So,
>> so it was a an emotional roller coaster
watching the person that you built an
entire business with pass away and he
was very young. 37.
>> 39.
>> 39. Yeah. Yeah. I still remember, you
know, his Levia. We were walking down on
Eastn Parker in front of 770 and we were
just bowling our eyes out. I was, you
know, I was walking together with my
partner now, Mish Malamid. He actually
joined the company a little bit like
around 2010 or so. Um and we were
walking behind the the Arn together with
the Yasi Hersh's brother and we were
just crying, you know. Uh it was tough.
Uh and um yeah, then we're you went to
Montre Fury Cemetery. which is you know
very traumatic to you know all these
things but you know uh you have to stay
strong and now we have like more of a
push to be successful like you know this
is you know Schneer set the foundation
and uh we have to keep keep it up um and
actually you know some of the people at
the company uh were saying that Schneer
lives on through the products and
through the products he created because
he was in product development and we
such a long list of products that we're
still developing his products for like
many years. So we still feel uh touch,
right? So
>> tell me at what point do you feel like I
made it? You ever say, "Okay, I'm done."
Like you hit a certain amount of money
you made or this like is you ever like a
a finish line when you're in business.
>> There's always, you know, once you're
done, you're gone. You're over like you
can't be done. Uh in life, there's
always got to be
>> saying in building your furniture
business, is there any at one point you
said, "Oh, I made it. Okay, I built this
huge beautiful building on the turnpike
or they've hit X amount in sales. Is
there ever like a finish line for you?
>> I think you, you know, listen, your life
is pretty short as we know, especially
was the lesson that I learned from
Schneer that, you know, every day you
got to treat as if it's your last. So,
you don't know. You just got to be the
best person you could be and do
whatever, you know, whatever you could
do for that day and just keep moving
along and, you know, you hope you're
going to have a long life and but you
got to stay focused and there's always
more to do. There's never, you know,
it's like a scythe. It's infinite.
>> What was your first luxury purchase when
you made it? I don't know, your first
big win or
>> a first uh
>> I don't think he ever did. [laughter]
>> I think I used to say my first car was I
bought in a car auction like the the
sheriff auction probably for like $200.
Uh it was a Geop Prism, like a beat up
one, and I drove that for many years.
And then uh then uh I got uh what was
it? The um the next car I forget.
Mitsubishi Galant and then Chener got
the same car as me. So we both had the
identical cars.
>> Uh and then for many years you just had,
you know, simple cars, nothing fancy.
>> At one point I'm like, so then at one
point I said, I'm going to splurge and
get a Mercedes because like and I felt
so uncomfortable doing it. I'm like,
this is so against my nature, but I'm
like, you know, I shouldn't drive, you
know, I got to drive something more
comfortable. We're doing longer drives
to New Jersey once we moved from
Brooklyn to New Jersey. Uh, so yeah,
that was probably
>> Was that the only big luxury splurge?
>> That was probably, yeah, one of the, you
know, that was
>> then you built a house eventually.
>> Yes, slowly.
>> The weekend house in Jersey.
>> Yeah, that was more recent. Uh, you end
the co we bought the
>> I'm still trying to get invited to the
weekend house.
>> My nephew goes. My little nephew goes
and [laughter] I, you know.
>> Oh, yeah. You came for a right. It was
beautiful. Sh. He's actually with my son
in Yeshiva and S now.
>> Oh yeah, they're having a great time
over there. I heard they're learning a
lot. He sent the picture yesterday.
Yeah, Izzy Co. And he sends me a picture
that he sent me two pictures. He sends
he's very into mist. He sends me a
picture a few days ago that even though
he's not in New York, he's making sure
that his guys are putting on fillin.
>> Yeah.
>> He shows me a FaceTime of making sure
the guys putting on
>> and then he sends me a picture of that
smartphone he's only going to get like
once a week for a few minutes. So now he
has like a text phone after Sader if you
want to call.
>> I saw the same thing. Yeah. He has a
separate phone just to thank him.
>> Do you still get a thrill in making
deals?
>> Sure.
>> Where do you get your eyes now? It's
still still exciting.
>> It's always fun to making a deal. You
know, it's It's the art, the art of the
deal, right? So, it's always uh
>> when you sell a mattress, you get
excited or it's just another
spreadsheet,
>> right? It's like Amazon that used to
have a bell when every product sold in
the early days, right? But yeah. Yeah. I
mean, I'm not really checking out every
order, but uh I'm making other deals.
You know, you make uh
>> Tell me about your [clears throat] sperm
collection in New Jersey. My friend Yasi
tells me that you you brought him to
catalog your sperm collection in New
Jersey.
>> Oh, yes.
>> Yi Newfield said it was like 10,000
sperm, 20,000 sperm.
>> I don't know if it was that many.
Actually, it's my grandfather's
collection. Rabbi Fagustak from
Montreal.
>> So, he was a, you know, he loves sarum
is we grew up uh going to his to
Montreal very often and spending a lot
of time in the house there. And, you
know, all the walls are just covered
from every floor everywhere. Wherever
you go, there's just tons of sarum. So,
after my grandfather passed away, um
about it was about about five years ago,
five six years ago. So, they my uncles
said, "Who wants you know said anybody
want this farm?" said, uh, you know,
I'll take whatever no one else wants to
take. So, you know, maybe some valuables
others took, but I just I I rented like
a cargo van. I made a few trips to
Montreal and I took as much as I could.
I slept it all myself.
>> I was looking to get a moving company.
It was getting too complicated. I said,
"No, this is important. It's time
sensitive. I'm just going to go myself."
And I slept boxes
>> that people can understand how a little
guy can shle boxes. But like, I was
motivated. I needed to get these small.
I don't care how much it weighs. and
then uh shleing these these boxes.
>> The guy with a $2 million two million
square foot warehouse are shleing boxes.
>> But you know what it was worth it
because they're holy for him and uh you
know and now I actually enjoy learning
you know so
>> also speaking of his grandfather his
grandfather's brothers are two big
celebrity Lith Rashivas one is Ferris
Har.
>> Yeah
>> and Long Beach like top like
>> Fagel sucks. What I'm blown away
>> my great uncle was a Tom of Baron
Cutler. It's one of his close uh you
know Tom Muvik
>> the one long beach or
>> Long Beach
>> Long Beach to a lot of people that
didn't grow up with a lot of money I see
it hurts them so badly they start buying
Rolexes and pots and they start doing
>> new money new money
>> boats and going to restaurants spending
$1,000 on bottles literally $1,000 on
bottles and acting mamish mashuga
designer
>> right you know how did you ever have
these tits and like or what what makes
you stay normal
>> is it when you work hard and not
everything comes easy you value money
and you know what's your goal in life?
Is it just to have a fancy watch? What
does it do for you? Or you know just
spending money you know you're focused
on building a family that that's your
nas when you have you know uh you have a
large family and you have kids doing the
right thing. There's no greater than
that and and helping out the community.
So
>> Clappy that's where I like to spend
money.
>> So he told me yesterday he goes to these
events and so he's wearing some Mama.
>> Do we see it?
>> Yeah. because of his his his humility,
Clappy. People say, "So, you work on
Mway?" Nice. How many years you working
at Mway? [laughter]
>> Yeah, I said that yesterday.
>> How many people ask you that?
>> It happens time to time. People say,
"What's your role? What do you do?"
Sometimes I say, "I clean the
bathrooms." But, [laughter] you know,
because I really did that in the early
days. There was no one to clean the
bathrooms. So,
>> you don't clean it now. They're very
clean.
>> No, now we have a company that cleans
it. They do a good [laughter] job.
>> But, you know, in our first warehouse,
you I did everything.
>> Let me ask you, I get stopped every day
in show five times. you know I'm guys
collecting for struggling families and
then this and people not well in the
community a lot of young guys they're
going out on and I always say this over
and over again I'm not sure if I should
give many many people 36 or give a few
guys 180 or these are like somebody
that's very very very very wealthy affin
how do you decide which causes you want
to be involved in you and your rebbits
in which causes you want to give a lot
of money to
>> no which cause which non-air causes
start with that
>> oh there [laughter] you go
>> which non-air causes
Do you have any pet projects that you
fund like majorly or which ones you
don't want to be involved in or how do
you decide? You get knocking on your
door all day long. Like what's your
approach when people call you and say
I'm a yaka or whatever. I don't want to
mention a name and can I get $10,000?
I'm building a new mikvah or I'm
starting a Sunday school. Like what's
what what's your mahal and starker?
>> Right. I mean there's some things that
you know that maybe you care about more
which is close to your heart and you
actually feel it. So you know the uh
first you have to help your local
community.
Yeah. So, I mean, that's always
important. So, you know, there's there's
a lot of education needs and poor
families and and things things like
that, but you know, you try to give
everybody. You don't want to turn people
away. So, you give uh you know, you can
give a smaller amount to anybody that
comes to you. It's hard to keep up
because sometimes just non-stop. So, you
can't if you just It'll be a full-time
job if I'm constantly answering my phone
for every uh
>> Do you have Do you have a guy stucker?
>> I don't. I I'm very hands-on. I do
everything myself in general. Like I
just that's the way I am. So, um but
>> copy. One time he I I guess my
commission from sending him tenants. One
time I got paid earlier than someone
else. He called me, "Oh, why'd you get
paid? Why'd you get paid?" Like, "Whoa,
Toby wasn't a big amount. He's so on top
of a little payment. He thought like I
was I [laughter] don't know.
>> Just everything has to have an order."
Yeah. I was impressed.
>> Did that say gelatin? I know it was like
very has a very
>> listen if you're not in touch then uh
that's how you lose your pants right you
got to know what's going on have a pulse
you need to know what's going on you
can't do everything you can't be a
control freak but you know if you want
to know what's going on you got to pay
attention
>> but in the company you have CFOs CEOs
presidents vice presidents you're not
involved in every single check that goes
out at a company
>> maybe you are
>> uh yeah maybe I am right [laughter]
isn't isn't isn't Rosenw the CFO
>> yeah good friend of yours the top
>> yeah very good
>> I mean He he he left Crown Heights many
years ago, but he was involved in my
show with Yes. I remember one year
>> he was like he was nominated as the from
the entire state of New Jersey as like
one of the top CFOs. That's right.
>> And he was the runner up. They ended up
choosing somebody else.
>> I told him it was a mistake. It was
anti-semitism. He's the best CFO in the
world.
>> Just to get the air is a big thing.
>> He's very good. He's our top top.
>> Yeah. That's one of our reasons of our
success. So, you know, he's been in the
company what 10 years? Uh probably
longer. Um it's been a long time. Let's
see. Maybe 15 years. Could be.
>> Wow.
>> Sean Brownstein runs.
>> Yeah.
>> Top.
>> Great people.
>> A lot of great people.
>> So, would you sell the company?
>> If I would.
>> Would you sell?
>> No.
>> You wouldn't?
>> Yeah. Why should I sell? Everything's
working out well. Like, you know,
>> someone offered you $300 million. You
sell?
>> I don't I'm not even thinking about it.
>> Not the building. I'm just about the
business,
>> right? No, but listen, for you know,
real estate, you need you need a driver
and the business is like, you know, the
operations behind it. So,
>> same business is paying down the
mortgage.
>> Yeah. because uh once you have operating
business it helps you you know possibly
to find other real estate is kind of uh
to leverage it and things like that but
you know I don't know you never know but
uh very comfortable the way things are
working out there's still a lot of
things we can do so
>> I'm just curious because we don't have
so many we haven't had so many people in
your exact role not only being very
wealthy bar but being the CEO of a very
large company how do you manage your
time like you wake up in the morning
like there's a thousand tasks if you
want to be busy or
>> well first thing always doing first
that's soon as I wake up same time every
day.
>> Same time every day.
>> What time?
>> 7:15.
>> And uh like if I don't dive in first
thing in the morning and first of all,
you're supposed to dive in. You're
supposed to dive in the first thing in
the morning. So that's important. And
then you don't then you know you can
forget. So it's important to do that. Uh
you know, and then I come home and then
I got to get the kids on the bus, help
my wife get everybody ready for school
and then after that then I head out,
drive to New Jersey.
>> Your wife still have the brisk where you
>> That's right. [laughter] Yes. Can I help
out with that too?
>> The bris outfits.
>> A lot of times I got to get the door for
the bris.
>> How did she get How did she get into
this?
>> Yeah. So, it's actually did it uh
>> $30 cash deposit grandfather.
>> What a $30 deposit for the outfit.
>> It's $20.
>> 20?
>> Yeah, I know. Because I have to give the
money [laughter] back.
>> If you don't give, they don't give it
back. If you
>> Yeah, my wife does a lot of other nice.
She's a college teacher as well. She's
also a doula. So, um so she doesn't do
it as much, but I used to have to
babysit so she could go out on calls.
You put the whole billion dollars on
hold that she could be a [laughter]
>> listen for $1,000. You got to support
the wife because they're the foundation.
>> Yeah. [laughter]
>> So, yeah.
>> So, your still has grips with you that
you're selling mattresses and you're
taking away his business or [laughter]
>> I actually, you know, the first thing as
soon as I got engaged, my my share
already had my van. I had a like a cargo
van. He's already borrowing it full-time
and we were supporting each other, you
know. So,
>> what's not your brother-in-law? He makes
mashiah Sherman 770 cookies and bananas
every morning. He runs around saves.
>> Yeah.
>> What's the story?
>> She calls on my way on my way to work.
Part of
>> Is he part of 770?
>> Of 770.
>> He's the of 770.
>> Great guy. Great guy.
>> Would you clap?
>> Whenever I need anything, I know he's
the most reliable if I need any help,
anything. You know,
>> Clappy once said on the show, the only
person that still believes in Mashiach
and Cranes is Jama. That's what Clap
[laughter] says.
>> He means it with an MS.
>> That's right.
>> And I do I do his rental chairs for my
artfare and he gives me unlimited terms.
I I feel a little bad. But
>> Frank [laughter] Picarski one time said
about him cuz cuz he basically there was
a a Fabangan Zal that went on till like
2:00 in the morning Shabas whole shabas
afternoon and somebody made a comment
like oh the capas are showing up like
McMar whatever and a fry was like he's
still a bucker [laughter]
still a bucker.
>> Yeah that's right marketing. What's your
opinion about marketing in general?
Because you said pay click you don't
believe in it. Do you believe in any
marketing?
>> No I'm not saying I don't believe in it.
it still could work, you know, because
you can use a different formats, but you
know, for many people that's their core
of their business, paper click, but you
just have to be careful because, you
know, it's a it could be a bidding war.
So, you just got to be on top of the
numbers, make sure it works. I know many
people are very successful with paper
click, but you know,
>> what about opening retail stores? Was it
ever
>> we actually were considering uh opening
retail stores. We looked at many spaces.
Um, and it was actually right before
COVID. we were going to sign a lease uh
on a store right near Restoration
Hardware in Red Hook and uh I was
looking with Schneer then and um and
thank god it didn't work out because you
know then CO hit have to be shut for we
don't have to pay our lease for about a
year and a half till we could reopen. So
>> did you were you the father of modern
furniture in Labavage? I see there's a
few young Labavage guys now selling
modern furniture. They probably got the
idea.
>> A lot of them either work for us or our
customers and things like that, right?
>> Uh that's what you hire. We had a guy on
the show. He said, "You hire your
competition. [laughter] They come, you
train them, and then five minutes later,
they change up as a patent,
>> you know." And I I told some of them,
you know, if you want you need any help,
advice, we're happy [laughter] to talk.
>> Yeah. There's no animosity. It's
>> So, they started by you and they went on
their own.
>> Yeah. Some of them. Yeah.
>> But at 10,000 SKs, there's no like real
identity. It's not like, "Oh, we're in
like her I was once had this cover
Herman Miller. How many SKs do they
have? 20 30?"
>> Right. Much more in line.
>> 30. And they probably do a lot more
sales than you, right? And they're
different style business, right?
>> Have you ever thought, let's just take
four, I don't know, 30 SKs, be the best
at it, and build a brand and be the
Herman Miller of modern furniture. Does
it ever cross your mind? Your 10,000 SK
is very wide,
>> right?
>> Like we see a different model. You know,
there's some great there's very few
brands that could actually do that. So,
you have, you know, like Apple with the
iPhone, and you have some great brands
that everybody knows, but there's not
that many of it. So it's it's a lot
harder to achieve that where you have
this great brand where you could just
focus on a few products and those are
your cash cows and that's it.
>> Wow. So you don't have any cash cows
pieces that people
>> I mean you have Yeah. Every year you
have your top products that you know
your top 10 could be 80% of your
business. So it's up to
>> Last year you told me you had a green
couch. It was a small couch a two-seater
and you said you had like 300 pieces
left in green and you said if you could
get rid of them you could give it to
them at a blowout. The reason why I
didn't I wasn't passionate about I don't
know if you remember you probably I
probably came across the haka chinik
because after you had the conversation
you sent me the skew and the pricing and
the trucking I went around to all my
siblings houses and I measured and it
was too small for a from family
>> right probably
>> it was too small did the measurements it
was too small
>> so I wasn't going to say oh my god get
$150 couch and it's like usually worth
$700 you're getting rid of it you said a
nursing home used to order thousands of
them a year and you had a few left
whatever 300 left but it was too small
for a Jewish family in my opinion I
don't want to get involved
>> you know maybe for the studio it would
work, right? [laughter]
>> You ever read any influencer things go
viral and things took off like certain
shoes?
>> Yeah, we had uh certain collections uh
that went on Tik Tok or something like
that from one of our resellers and we
were doing tremendous business just from
one Tik Tok video and it just went viral
and caught on to other places and just
the gift that I keep on keep on giving.
So it's like, you know, but then
everything has its phase and then it
slows down and then you might be stuck
with too much inventory because you're
ordering forever.
>> Has any furniture besides Herman Miller
do really well and they just they have
like a airon chair or no one else really
was successful in that?
>> Well, there's different companies.
>> I mean to the extent you started your
business the question is doing it
profitably. So there's many big
companies that are spending a ton of
marketing. So it seems like wow they're
the biggest. They're doing great but
then you know they're not actually
making money at the end. They're hoping
in a few years they will, but there
might be no endgame.
>> So, you know, you always have to have
that perfect balance.
>> What's considered like the premium?
Ethan Allen.
>> Well, there's all the Restoration
Hardware, then there's, you know,
there's William Sonoma and there's all
these uh Are they William Sonoma's
kitchen products? They sell furniture.
>> Well, they have a bunch of brands. They
have, you know, Pottery Barn.
>> I'm thinking of William Sonoma as the
guy selling the knives and the cutting
boards,
>> right? So, they have a lot of home home
goods.
>> What's the place called in in Demo on
the water? What's that huge furniture
store on the water? Is it William
Cinema? Maybe.
>> It could be.
>> I don't know. I got a coffee machine
from William Sonoma and a couple of
knives for my kitchen. And they're very
they're actually a very good company.
Nobody paid me to say this, but you go
in, they're very friendly staffed. They
know their products well. They show you
the premium brand.
>> The coffee machine that I have in my
house, like a $400 or $500 machine,
depending on if it's on sale or not. I
went into William Sonoma and I told the
lady, I'm looking to get a coffee
machine, but it should be ground, but it
shouldn't be hard to use and push
button. That was the machine I bought.
Very competitive for pricing. It was
>> How many different grades are there in
furniture? like IKEA I'm assuming is at
the bottom and then
>> Right. Well, you just sent me that video
of IKEA. It was very interesting. The
whole documentary about it, right? You
sent me.
>> Yeah, I sent you.
>> Yeah. Yeah. So, you you see how they're
starting to go down because of, you
know, the event of Amazon and Wayfair
that it's a lot easier to buy furniture
online and and some
>> So, how many different qualities? Let's
see this. What's this called? The love
seat.
>> This is the armchair.
>> Armchair. How many different grades of
quality? Because on the outside, a lot
looks the same. [laughter] Yeah.
>> What's it like? Like would you go?
>> Well, you know, you have the
construction and the durability and all
that. This is more like this is probably
more like a budget one. You know, one of
these made in China that you can find at
thousands of factories that make it
>> cost is what $20?
>> Uh, probably yeah, it could be about $20
from the factory price.
>> Wow.
>> Now, in let's say it's better, what will
make it last longer and where does the
price go up? And how does someone know
if they walk at this?
>> The second you said $20 doesn't feel so
comfortable anymore.
>> Right. Exactly. It could be. It's a
little more today, but you know,
>> it was good until a second ago.
[laughter] You're right. I mean I
>> So what's the range like where does IKEA
land? Where does Modway land and where
does Restoration? What's considered on
the top of that? Restoration.
>> Right. We we consider ourselves midm
market like right in between. So we're
like trying to do more mod mids mids.
>> Yeah. Maybe maybe a lot of times when
you search mod it kind of auto corrects
you to midway. So [laughter]
>> yeah. So
>> you let's see.
>> But we're like middle of the market. We
try to do like premium products or
premium style products more affordable.
That's kind of our
>> So where's IKEA? Is there I'm sure
there's a term
>> IKEA is on the lower end. I'm sure
there's a term in the industry
>> more budget you know budget friendly
>> and what's is it go by range by qual
like how does what's the language
industry term for IKEA verse restoration
highway verse mod is there a term
>> say mid range I mean yeah just like any
other products the higher end the lower
end the mid-range
>> because every's buying these Billy
bookcases from IKEA it's pressed wood
there's a difference between real wood
and pressed wood pressed wood
>> I bought Billy bookcases when my first
apartment and were they wood I had yeah
sure we tried had to move them and it
all just collapsed as we're moving them.
So, [laughter] it was good for uh what
we needed, but then we had to buy new
bookcases.
>> So, I was I was actually telling I said
because of IKEA people it helped all the
furniture business cuz now anyone is
more comfortable. They don't
>> it's flat packed. you do uh you know in
a box. They're doing it to sofas now
just like you know what we mentioned
like mattresses that they're putting in
a box. Whatever you can put in a box you
put in a box and then
>> box means it's flat
>> flat pack. So you can buy a small parcel
delivered like FedEx UPS as opposed to
you need a you know a pallet or a big
truck and a
>> People used to be afraid to build their
own furniture and IKEA put in people's
heads.
>> I'm still petrified.
>> We're more capable than you.
>> When I buy IKEA furniture I always hire
somebody to build it for me.
>> All right. So you have an additional
expense but
>> I know I but I can't I wouldn't know
what to do with the manual. furniture is
easy idea.
>> Uh so that's the whole thing about
engineering. So when you you spend a lot
of money on a product, it's it to
introduce a product could cost a lot
because you know you have to work on the
the description, the imagery and then
the engineering, the quality control,
the packaging engineering. There's a lot
of steps. So uh engineering
[clears throat] is very important to
figure out what's the easiest way you
could build it that it could be easy to
assemble, less work for the consumer.
So, would you say Modway is the best
value if you want something that
actually will last longer than IKEA?
>> It could be.
>> Not for sure.
>> I'm not trying to sell our brand. We're
doing okay.
>> I'm [laughter] cur I'm curious. If you
do 10,000 sales a day, I'm just curious
of those 10,000 people, how many of them
were just googling around and bumped
into your item. It looked good and you
like it just looks good and the price
seems right. How many of them are return
customers that were like, you know what,
that couch I have is already 8 years old
and I love it and it was built well.
They look for Madwe. Like, do you know
the number? No, actually we're not a
retail brand so much like we're
wholesale brand. So many other uh
companies are reselling our products. So
you might find it on Wayfair, Amazon,
Target, Walmart.
>> Yeah. My wife just bought a bunch of
furniture on Wayfair. Were selling
Modway stuff.
>> Correct.
>> Mhm.
>> So you they Yeah. Usually it's these big
destinations where people go to search
for furniture or many stores stagers are
using it. So we're not
>> drop shipping. You're drop shipping for
them.
>> Correct.
>> Ah.
>> So they don't warehouse it for you. Not
FBA,
>> right? We we warehouse it. We drop ship.
Right. Could it be fulfilled by Amazon
and you
>> Amazon does take in some inventory
sometimes into their warehouses and we
>> the popular Yeah.
>> Yeah.
>> What percent is e-commerce versus
wholesale? We say 80%.
>> Um it could be it uh is more in store,
you know, less e-commerce, but it could
be maybe I'm not sure exact number where
it is today, but it, you know, used we
used to be a lot more e-commerce and
we're kind of growing the uh you know,
off offline sales. We've asked this
question to multiple people and I want
to hear your personal experience. Does
Amazon let you make money or they're
trying to like cop every penny? Some
people come on the show say they don't
let anybody make money. It's a waste of
time. Some people say like the Mr.
Kicker said it's not true.
>> Make tons of money on Amazon. It's not
true.
>> So we experienced that too. So like for
some years we realized we're not making
money on Amazon. We had to rethink our
whole strategy [laughter]
and now and then and we re reshaped
everything and and changed uh how we do
things and and then it became the most
profitable. So it's just being creative.
It's an art.
You have to understand all the parts,
how they charge their fees, how you
price it, when you submit your products,
look at the competitive landscape and
then you know and once you figure out
all the parts then you could do it smart
and it could work. So just like any just
like selling to anybody any deal you do
you got to think about all the details
every single part strategize what's the
best way to to do business with them
>> if a certain skew is doing well that you
source from a certain Mr. China or
Vietnamese, wherever it is, do they just
show up and compete with you? How does
those type of deals? How do you prevent
it?
>> You're not at the top of the box
officially.
>> So, we had certain products that did
amazing,
>> right?
>> And we knew that it's going to have a
short run rate because you're going to
have once you have a good product,
everybody's copying it. And so, we came
up with, you know, with this cabinet
that looks beautiful, there's an arch
and all that. And we were doing
tremendous. And then now there must be
like, I don't know, hundreds of copycats
to, you know, what about your own
factory? It's over. The the game is over
because you can't compete with them.
They're going to sell it for just a
fraction. And we don't know how they're
doing it. They're probably losing their
pants because a lot of you watch them.
They're there for like, you know, 6
months a year and then they're gone. You
know, they don't realize how much money
they're losing.
>> Animals.
>> Do the factories themselves compete?
>> You know, they're not bad people.
They're just trying to make a buck. But
they're losing good accounting.
>> They're losing money, getting you out of
business.
>> Listen, everybody makes that mistake.
You sell, you sell, you're doing great,
but then you don't do the uh do the
math. It's all about math.
>> Business is all about math. Everything's
math. Engineering is math. When on my
last brand I was losing tons of money
and I wanted to keep on going to he was
like are you making money? I said no. So
drop it. I said but I'm so so
emotionally attached to the drink. I was
so excited to like you making money yes
or no. Yes I know. And at the time
>> it was very hard for me to separate the
brand and me and everything.
>> It's not going to work. You know you're
just going to spin your wheels.
>> It was so like like a like a soldier.
>> Oh my gosh. It was like a general. You
making money? Yes or no? You making
money? who's so emotionally detached
from the product.
>> That's what happens over time. I
probably have the same problem as you
because I remember we had to discontin
products and I'm like no, we can't
discontin products. We work so hard on
them. You know, you get emotionally
detached. These, you know, these are our
breadwinners and whatever. But like, you
know, but you it just it's not worth it.
The math is not there. So, you just got
to discontin. But it's difficult. But
over time, you uh you learn.
>> As an end user, what what what quality
do you recommend people to buy
furniture? Is there like a break point?
like if it's certain quality, it's going
to last you long enough. It makes sense
versus not going crazy. Like if you're
going to buy, let's say,
>> depends on what your function is, where
you where you're putting it. You're, you
know, you're just newly married, you
just have an apartment, you might not be
there for that long. Do you want to move
it or not? So, you know, once you're you
move into your home that you spent a lot
of money to build or after you're
successful for some years, then you want
to get something in more quality that's
going to last you for, you know, for at
least 10 years or so. So, then you try
to spend a little more on that. If you
go below 30,000 in one of these big
fancy bar park stores, all right,
how different is your quality and how
much cheaper are you?
>> Well, they have more like usually it's
more traditional different different
styles than probably what we're selling.
>> But what about structure and
manufacturing quality? How much you're
I'm assuming you're a lot cheaper,
right?
>> Not necessarily. Depends what you know.
I mean,
>> I had a horrific story going to one of
these fancy bar park stores. I called
them up on a Sunday.
>> What time you open till? I don't want to
drive there without them being opened.
>> I go there. I found parking. I take my
kid there. I come inside the store with
one of my kids at the time. And the lady
STARTS SCREAMING AT ME.
>> CARRIAGES THROUGHOUT THE STORE.
>> Screaming at me.
>> You're about to spend $30,000.
>> I fold the carriage. I fold the guy. I
was going to go to get a kitchen set. A
few chairs and a kitchen table. And I
had tons of cash in my pocket. I was
literally going to spend I was ready to
drop like three, four grand. I fold the
carriage. I go to the elevator in the
back. While I'm getting into the
elevator, another High Mishabara Park
lady and her collar daughter come into
the elevator. I should have let the door
slam, but I let them. I waited. They
came off the elevator and I saw they
were going to try to cop the saleswoman.
The saleswoman told me, "I'll meet you
upstairs. Go with your kid." She said,
"You take the elevator upstairs with
your baby and I'll meet you upstairs."
And then this couple, this mother and
daughter came running in and they capped
whatever. And she starts talking to them
and the lady doesn't know that I'm a
laborator. I went to a terror. I speak
Giddish my whole life.
>> And she starts saying, she's like, "I
wish I could help you, but but they
technically came before you." She's
basically telling the lady that I'm a
third class citizen.
>> Oh wow.
>> But like you came before me. Anyways, I
ask her like what showing her what I
want. She goes like 80 feet away and she
sits down by a desk and starts like
going on the computer and the phone.
Anytime I wanted to ask her a question,
I had to scream across the showroom.
>> What's the bottom line?
>> She treated me like garbage. Like
absolute trash.
>> Pre- celebrity time. Clappy like
recognized like, "Oh, Clappy." I kept my
mouth shut. I walked out. I'm like, I'm
never spending a penny there. Didn't you
spend a penny?
>> Not a penny there.
>> You went straight to Mway.
>> No, whatever. What? Not here.
>> How many years ago is this? Right.
>> 10 years ago, maybe less. They treated
like absolutely trash. Whatever. I was
even thinking of saying I was heard of
it. Now, so I just picked up most. But I
think a lot of times people think these
multi-million dollar furniture
showrooms, you're going to get good
service. You get treated like a piece of
garbage, right?
>> Probably get better service on.
>> Yeah, we actually had a story like that
a little different. But when we were we
were doing like retail originally and we
we go to trade shows. So we went to a
trade show in North Carolina and um and
we tried to get to resell a certain
brand like a nice Italian brand. We
wanted to resell because we were like
reselling other brands at that time and
we so and we were like online was a
little new to sell furniture online was
like very few companies were doing it
that at that time. So me and Shaneer
tried to get into this showroom and they
they didn't let us in cuz we weren't
like we didn't have this massive store
or whatever. They didn't understand the
e-commerce business and all that, which
no, everybody does. And they didn't let
us in. And then fast forward many years
later, we end up signing a lease on that
showroom, which they went out of
business. We took over their showroom.
So anyway, so you know what what comes
around. But
>> so you tell the story of you once had a
show in China and this salesperson was
chasing around the show.
>> Yeah.
>> Can you tell the story? [laughter]
>> I mean, well, it happens everywhere. You
go in China, there's always people
chasing you. You know,
>> chasing you.
>> No. So when you come into a trade show,
you know, there's I don't know, it could
be 100 thousand people. There's massive
shows. It takes you it could take you a
week to go want to see all the uh all
the booths, all the showrooms
>> and and they all you're gold when you're
you're a westerner coming in there. So
they all, you know, everybody wants your
business. So wherever you walk in, you
have these Chinese people chasing you,
come come to my showroom. So and you're
just like, get away, get away. And
you're like, leave me alone.
>> So higher security,
>> right? So it happened to us. We were
going through, you know, some of the
some of the exhibits and um we had this
Chinese lady or whatever was chasing us
and we're like, "Get away, get away."
[laughter] And then like then I'm like,
"No, maybe I felt a little bad." So I'm
like, "Okay, what do you got?" I'm like,
"So then I said, "Okay, Schneider, let's
go back. Let's check what they had." And
they
>> You told me she was you she chased you
around the whole show, right?
>> Yeah. She chased pretty far and then So
we went to
>> usually they'll bother you once you walk
by the booth and your next booth, right?
>> Right. She she didn't give up.
>> She kept
>> Yeah. So then we end up uh going there
and they see they had actually you know
very good prices on you know some office
chairs. So we said okay we'll give it a
shot. We ordered a container of uh that
office chair and end up being like one
of the top sellers on Amazon for many
years. We were doing tremendous
business.
>> It was your instinct.
>> Yeah. I mean we because we saw you know
what this is actually a nice product.
It's good features. It's good price. We
could do it. And then um you know it
just blew up. And then you know for many
years we we really took this this
company that were probably had nothing
and built them up. Then then we saw we
saw the next show all of a sudden they
have this gorgeous booth [laughter] and
then our competitors are also buying cuz
we actually put them on the map. But
yeah that's what happens.
>> I was I was I was inspired by this lady
who chased him. And he said, "My one
time I was at she told me this story
once chasing around the show
>> got him and a Herman Miller chair and I
like Her mean you started your business
Herman Miller.
>> Let's say it retails at $1,200. If you
would want to build that chair in China
[laughter]
>> on their components and construction,
what would it actually cost you?
>> Oh my gosh.
>> Right. So
>> if you exactly copy like
very protective of the air on chair. So
like don't even try to copy it even
remotely. They're going to come after
you like who knows what. So, but in
general, what we found is that even
trying to do any like high-end chair, we
could never figure out how to with the
online flooded with so many very
affordable budget chairs, it's very hard
to to figure out a business of selling
like these these chairs with all these
bills. What's the question? His question
is if you forget about copyright,
>> how much would it cost?
>> How much would it cost to build a 12?
Um, probably like $1500 to $200
>> across a build and they retail
>> to buy it from a Chinese factory or or
>> And that's exactly the same.
>> Exactly.
>> Yeah. It could have even it could even
be better, you know, possibly.
>> And they retail these at 1,200, right?
>> Yeah. Listen, you're buying a brand, so
it's you know, you're buying the name.
>> Did any other company have that same
success of building a brand of officer
or something?
>> I mean, there's other good ones, but I
think they're probably the most
>> Could you recommend someone that could
you recommend a $500 office share that
will compare? I personally still sit on
a Steelcase leap chair.
>> Steel Casease Leap Chair.
>> That's the company.
>> That's I find the most Yeah, Steelcase
is the retail and uh it probably is
similar to the Aeron chair. I just find
it more comfortable. It's like
>> it's also 1200.
>> It's probably about that. I don't know.
I'm still sitting on the same chair that
I had from like like the beginning. This
is one chair from 20 years ago.
>> Yeah. 20 years. Still the [laughter]
same. And actually people human
resources came into my office. He's
like, "This is disgusting your chair."
>> [laughter]
>> So I So what I did was I got some
leather fabric I found in the warehouse
and I reupholstered it myself. I got
some glue from the store and I made it
look nicer. This is only like a year
ago. I just put like
>> sells it in different sizes. The frame
of the chair is different sizes that you
customize it based on
>> Well, the Airun comes in different sizes
A, B, and C.
>> Yeah.
>> Yeah. So
>> to Is it hard to raise kids in your
current financial situation to be as
ambitious as you? Do you care if they
are or not? Or do you raise them a
certain way? Do you spoil them or not
spoil them?
>> I say my own kids. Yeah, your own kids.
>> Oh, you definitely it's you shouldn't
spoil your kids. You want them to, you
know,
>> do your kids feel spoiled.
>> Could be. They do. I don't know. Listen,
naturally, you love your kids. You want
to do as much as for them. Give them,
you know, all these, you know, good
things and have a, you know, a good
family upbringing, a good life, and have
what they need. But, you know, but you
also want them, you know, you don't just
give out money or
>> do kids get free unlimited credit cards
spending or no?
>> Uh, no, not at all.
>> Yeshiva, they're not the piggy bank for
everyone.
>> No, not at all. They work hard and they
live humble and simple.
>> What's the the hardest part of being
more successful financially
>> in general? What are the the parts
people don't see?
>> People see the glitz and the glamour.
They drive by your your million square
foot warehouse. That's the cool part
looking parts. What are the
>> the less what's it could be in the
science of having money which is people
think it's you know it's just great to
have money but it is it's a lot of
responsibility and you have to you know
to manage things and there's never a
dull moment. You work very hard. You
don't have time to relax. There's so
many responsibilities.
>> How do you deal with family?
>> So many people reaching out to you.
Everybody wants to talk to you, meet you
about very important matters and you
can't do everything. So, and you feel
like these are important things. You
hear about all the hardships people
have. You're almost like a rough that
everybody comes to you with all their
problems. So, you're like, you know, you
feel terrible, but there's only so much
you could do.
>> How do you deal with family ask you for
money? What's your default or it's not
default?
>> You got to help whoever you could. And
uh
>> if your family, oh, this great idea,
could you invest 100K? Second, your
brother did get into big businesses.
They opened up a big toilet company.
>> That's right.
>> And they came to you for seed money.
>> No, they uh they did not. No, they
>> You're not a partner in any of the
toilets.
>> No, I helped them. Free advice. Anything
I can help resources, happy to do. But
>> so if your family ask you for 100k
investment, what's your default
response?
>> I've never done those kind of
>> Never done those.
>> Have they asked people from? Not really.
I don't know.
>> Family never asked you for 100 200k.
Nothing. No,
>> I don't think so. Not for businesses.
>> No
>> loans.
>> Yeah. I mean, I have some loans here and
there, but you know, people, but Yeah.
Nothing to major.
>> What was the most thing a fundraiser did
to you, Jeffy? How crazy did they get,
>> right? [laughter]
>> Um I mean, there's people that just show
up in your office.
>> Had an appointment.
>> Yeah. Oh, people do. You know, the good
ones, they're smart.
>> Security Westerman,
>> right? But we don't well you know our
doors used to be wide open and until
there was like a shooting in Jersey
Cityow
>> and that's when we started locking our
doors you know they were targeting
Jewish people you know uh so but anybody
that looks we have a mion every day so
anytime you see from person they're
automatically let in you know maybe
they're coming from so
>> and then they usually they usually
>> sometimes it's going to be
>> and what what happens when they approach
you like I got to go listen you got to
be nice it's important to always
remember where you came from that you
know you you came from nowhere and you
got to treat everybody with dignity.
>> So how many fundraising calls you get a
day or a week?
>> Uh could get just it's non-stop. It's
literally nontop.
>> Five a day.
>> Oh, a lot more. I think
>> you get 10 a day.
>> It could be. Yeah.
>> 10 a day,
>> right?
>> Wow.
>> Yeah. Emails you get. Yeah. All
different types.
>> All different angles. What's So what's
the most effective though? You tell us
the secrets.
>> Oh, it's all effective. [laughter]
>> I don't know. After a while, you start
learning all the tricks what to avoid,
right? Because like you know you need
some rest.
>> [gasps]
>> Does your wife also getounded for
donations?
>> Uh, could be a little bit.
>> Not too much.
>> Huh? Your kids?
>> No, I don't think so.
>> Maybe a little bit from Yeshiva. Maybe
they're doing uh trying to do programs
in Yeshiva. I guess
>> you're the go-to.
>> Yeah.
>> I interviewed um or spoke to Mr.
Shrivever from B&H. He told me the high
hardest and scientist that he has is to
stay humble.
>> Wow. to think that all his successes are
his right and like see that's as hard as
a sign of being
>> that's true you got to remember that
everything could be gone you know the
way it came and uh it's all from Hashem
so
>> if you know if you lost all your money
what would you what would you what would
you do the next day
>> what would be your first move
>> you'd learn all this farm he got from
his grandfather
>> right no I want to learn anyway actually
on chabas that's I used to you know I
was never interested in learning now the
most enjoyment I get is from learning on
chabas I don't read any newspapers all
that I just open up as far and I enjoy
So what did you do? What would you if
you lost all your money today? What
would be your next move tomorrow?
>> Just do everything the same way, right?
Just
>> you just go to Craigslist again.
>> Maybe. I don't know.
>> What would you do?
>> You'd buy the her
[laughter] work for you. Maybe. Right.
>> So you just you just start again. Look
for a deal again.
>> Whatever Hashem wants, you know. Who
knows? We don't know. We don't know
what's going to happen tomorrow.
>> So have you ever flew private?
>> No.
>> Private jet? Never?
>> Oh yeah. What's actually in Cosml? You
had to take for $50. You took a little
private.
>> That's not private. It was just like
just our family. It was on this little
plane.
>> Yeah.
>> Why you
>> No, but for it was just like a 10-minute
flight. No bathroom.
>> It's the only way to get across the
island.
>> No bathroom.
>> No bathrooms. No, it's a little tiny
private. No.
>> Do you want to fly private? Is it on
your bucket? You don't care.
>> Yeah. Waste of money.
>> So, you have no tits of like of of
grander what's it called? Grand
grandiosity. Clap. You have a ty private
>> or more than what? I have very mixed
emotions about this about
>> is that you have nas from the kids and
you see
>> a regular flight a regular flight from
New York to LA a five and a half hour
flight
>> not the ones that you go Asia where
you're going to be 24 hours and if you
don't have a bed you're going to come
there ice kop you just might as well not
go to Asia if you
>> but when you go to a regular flight like
a United Airlines and you see first
class to California and you see economy
>> oh we did to Kazakhstan is that
considered private
>> wait when you did that charter plane
>> on a regular six-hour flight when you
look at first class first class looks
like how every seat should be. It
doesn't look so it's just that in
economy you're like a sardine but when
you see like if it's like five times the
price it's like I I don't know if I
would be able to justify it unless I was
really super rich
>> I know you always talk about luxury
watches and you still have your cheap
>> Yeah. just flew to Malaysia. We got we
got upgraded Emirates.
>> So, we got the first class in Emirates.
We got upgrade. Luckily, like last
second, the travel agent said, "Oh,
>> got you a gift. You're going first class
in Emirates." So, there you get like a
It's almost like a cubicle. Looks like a
private room and then you get a shower.
So, you take a shower. It's
unbelievable. You get treated like
royalty there.
>> Shower on a plane. Wow.
>> Yeah. I remember in the beginning of the
flight, they come over to you with this
big box. Look like a big birthday cake.
So, they say uh they ask me, "What
size?" So, oh, it's a birthday cake.
Kosher birthday cake. Large, extra
large. And then I I open up his pajamas.
[laughter]
>> Extra large.
>> You're like an extra small.
>> Yeah, exactly.
>> What are you 5'5 100 lb?
>> Exact. Pretty close, right? [laughter]
>> So, you're bullying me all my whole
childhood. That's what happened, right?
But you get it because you were in the
same [laughter] boat, right?
>> I'm not 100b.
>> You could double that,
>> right? Right. Right. Maybe you were go
to the gym, but it's they say it's 8020.
Whatever you do in the gym, you need to
do 80% in the kitchen. And I'm not doing
that yet. [laughter]
>> Yeah. So recently I started to get into
fitness and exercise just you know when
you get over 40 you have to watch your
health otherwise you be on medication so
you got to work out
>> important just start now.
>> Your kids credit cards are unlimited or
you keep them on a leash?
>> My kids credit card? Well I only gave my
oldest son a credit card so far. He's
but he hardly spends anything. So
[laughter]
buy for him. That's all he's interested
in.
>> My oldest kids. He's so cheap. I don't
know where he got it from.
>> [laughter]
>> I give like I give him like 200 bucks to
spend money in the summer and he's like
I don't understand where would I spend
money they they give us three meals and
they give him nice bump his donuts in
the morning
>> and uh it's a waste of money and canteen
there's lines it's like comes back with
all the money [laughter]
how do you handle people suddenly
respecting you because you're they found
out you got the money
>> how do you handle it do you care did you
like it you not like it
>> like whatever it's all good
[clears throat]
doesn't make a difference
>> did you become more or more [snorts]
suspicious of
Well, yeah, you know, you always have to
look look around just to make sure. But,
you know, you just uh got to assume
maybe uh people have other motives, but
you know, you treat everybody nice. It
doesn't matter.
>> Clappy, how'd you deal with your rise to
fame?
>> I I never saw the rise to fame.
>> There you go. Thank you. I have no You
didn't see it.
>> I'm just ask myself the same.
>> Did it get Clappy? Did it get to you or
not?
>> There's nothing to get to
when I walk around any streets,
everyone's [snorts]
>> Wow.
which I feel bad for. I was I feel bad
for a lot of these guys who worked their
whole life to get attention. They
thought they would get attention by
making money and they don't get it. Like
they try so hard on marketing and
marketing. Clappy doesn't spend a penny
and gets all the covered that all these
guys wish their whole life.
>> Okay.
>> And he did it just from little videos.
So I I feel bad in a way for these guys
who
>> risk their whole lives and their
relationships all just to make the money
to get his attention. And Clappy gets
it.
>> There you go. You know it's not easy
just be become an influencer.
>> No, I look I I look like like I thought
>> Well, everybody wants to be an
influencer today, right? Is it
>> lately? You never want to do
>> No. Okay.
>> You never want to.
>> I'm just doing my thing. I don't know.
[laughter]
Coming and influencing and
>> selling sparm. Yeah. Yards.
>> Yeah.
>> Do a little podcasting, a little hiss, a
little that, you know. Trying to make a
living, you know.
>> Yeah.
>> But it's really cool walking around
clappy people's reactions like whoa
clappy that you is that you? Is it
really inclus?
[laughter]
Okay.
>> Yeah.
>> Okay.
>> Anyway,
>> on that note, it was really a lot of
fun.
>> Thank you.
>> And um
>> we get Could we get Modwe to sponsor the
furniture on the set, but you don't
spend any money marketing?
>> No, you never know. I don't know.
>> You never know.
>> Never know.
>> Only only now. For the first time ever.
I'm wondering if the chair is
comfortable. You asked if it was cheap.
[laughter]
Well, it could be this was, you know,
$100. Who knows? But, you know, I'm just
saying. I'm just giving you a general
idea.
>> Do you when you walk into the room, I
saw now you notice is this our
furniture. Do you always walk in looking
at furniture or not?
>> Yeah, I do.
>> How like
>> No, I look at it. I recognize, you know,
products.
>> You do? Cuz when I walk into the
supermarket, being in these drinks for 5
years,
>> I get the food, right?
>> I analyze the drinks that over and over.
Who has the location? Who has the spots?
What drinks do they pick? Which ones did
they not bring? And I start imagining
and deciding who did
>> I walk into someone's home. I know. you
know, you're analyzer. You are analyzer.
So, you're still
>> just like now I walk into towns and I
see if they have an A or not. Most
people don't even notice. I'm like, "Oh,
that's a little post on the wall. I know
what that's for. No one else would ever
know what it is for." So, you know,
>> so cl You once you do you plan on
retiring soon and just learning all day
you once mentioned. Is that a real thing
or no?
>> All right. Let's see. Uh supposed to
work forever. You learn forever and work
forever.
>> Would you retire and just learn all day?
>> Can't retire. You know what happens?
>> Deco was so against it. I saw all these
living terror videos where people say
they want to retire and always tell
I just saw a video from the tell
somebody that says I want to retire and
they learn and work for a few hours and
the said no you have to continue working
and the said that when people see that a
guy that's working and running a
companies also putting aside time to
helping and learning it will encourage
them was so against retiring and
stopping to do business a lot of the
great were very big businessmen
the base of Frank they were they were
very wealthy and they also their biggest
you know
>> any private equity companies ever offer
the buyout
>> bond we got a lot of offers all the time
I just never pay attention
>> they call
>> you get all the time people saying would
you consider what you consider I'm like
I don't even know what you're talking
about
>> bankers call you who's usually the
people
>> all the type of people representing you
know brokers and real people sure
>> Chinese companies probably also know
none of your manufacturer offer to buy
out
>> could be usually it's like brokers you
don't know who the buyer is
>> company we went to see yesterday they
got bought out for a few hundred million
dollars by was it is it Asian company
that bought them out.
>> No, South A Guatemala.
>> A South American company bought
>> us for$450 million.
>> Iberia.
>> Iberia. Yeah.
>> Iberia.
>> Interesting.
>> Interesting. Whatever.
>> We went to see a company that was next
door to them in the same complex.
>> Warehouse.
>> Yeah. Warehouse. It was crazy. They have
And I told the guy, "Wow, it's such a
big factory, such a big um um thing,
whatever." They're like, "This is our
smallest location." He's like, "The
corporate people don't even know we
exist. They have so many big bigger
locations." Iberia. Iberia.
>> South American food. Chickpeas and
dates. Okay. Anyways, whatever.
>> The great Alicia Regali works there.
>> That's right. Yeah, sure. He's right
near us in Monroe. It's right It's right
in our neighborhood.
>> He's a big He's a big m like you didn't
realize how
>> I don't know. I see him. I I see the guy
my whole life. I never ask him what he
does. I'm scared he gets like $20
something box. I don't know. I have no
idea. Never know. You never know.
>> I say hello goodbye to him.
>> Never judge a book by not judge. Not not
judge. I'm There's some people I know
what they do. I know what you do. I know
what this guy does. I know whatever. And
I don't know. So I don't want to bring
it up. the whole thing.
>> Sometimes you sit next to someone, you
think, "Oh, this guy's probably a
schnook." And you start talking to them
[laughter] in the liquor store. You see
how how we went it I was in
Williamsburg. I went to get sushi and we
go into this liquor store and she's
like, "Oh, it's a nice store." I was
like, "It's like it's flat. It's two
floors and it's steps." I see the guy. I
saw the guy like a Spanish guy in the
front. I was going to ask him like, you
know, like, you know, like, "What do you
work here?" I was like, "I wasn't sure."
I was like, "Whatever." He's like, I was
like, "What are you doing here?" He's
like, "Oh, I'm the landlord. I own the
building." He's like, "Whatever." I was
like, "What?"
>> Yeah, that's what happens. You never
know who's the landlord. He's like, "You
have to treat everybody nice." You never
know what they are.
>> Everybody nice way. I'm just I thought
the guy worked there. And he's like,
"No, I own 20 buildings in the area.
[laughter]
>> Not the people with the Rolex and all
that that that own the buildings. It's,
you know, the people that look like
simple people."
>> Real story. Don't judge, right?
>> Oh, we never judge.
>> Be nice to everyone.
>> I'm nice to Well, I'm nice to everybody.
But I'm just saying the guy who look I
come into a shicker store and see a
Spanish guy. He tells me he owns the
building. I was like I [laughter] was
just like I thought maybe I thought
maybe he like brings up the boxes. I
don't know. I'm just saying whatever. I
thought the guy owned the building.
>> [laughter]
>> There was 20 buildings in the area.
>> Okay, we got to be done. We got to take
care of the kids and we
>> take a rap.
How long are we trying to get to be on
the show?
>> It looks like he was very scared.
>> Yeah. Yeah.
>> Oh, yeah. I was very timid.
>> Your first It was the first podcast you
ever did.
>> Yeah.
>> I think you're going to get a lot of
invitations now.
>> Oh, okay.
>> You come across as a natural.
>> Oh, thank you.
>> So, you were afraid to come on today?
>> No.
>> Only fair Hashem. That's it.
Thank you, Tiff Gman.
>> Sure.
>> CEO, co-founder of Modway Furniture. If
you want to get uh midtier furniture
shipped to your house, you want to shle
IKEA and break your back. One time I
want I used to go to BJ's to pick up uh
pick up to save money. Ellie W like Miy
the bill from the physical therapy
you're going to save money on you're
going to it's going to outweigh your
expense of saying saving money going to
beaches and shopping yourself
>> right
>> so if you don't want to stop IKEA I want
to get it delivered to your door right
>> literally to your door
>> we could do it yeah
>> want to save your back but he cares more
about the air anyway doesn't care about
the furniture you saw if you notice the
I noticed the tone
>> yeah right
>> you look at the mixer like furniture
furniture
[laughter]
you
>> I want to bring the she that's the only
way I know how to do it you I mean,
whoever said it,
>> you notice the energy level, cloud, you
didn't notice.
>> He's trying to bring Michelle, you
>> sure?
>> Anyway, thank you very much for taking
your your time
>> and uh hope to see you again, Rack showc
well enough.
>> If he gets high numbers,
>> yeah, if he gets on the
>> if we get 25,000 views just on YouTube,
on Instagram, we get millions. If we get
25,000 views on YouTube,
>> he's welcome to come back again after 6
months.
>> We don't talk to him again
>> after that. Hashem decides.
>> We can take him for dinner. [laughter]
He can take us for them.
>> I'm afraid he'll get all his employees
and all his customers to click whatever
[laughter] whatever it takes. Got
Chinese bots. The lady that chased him
around the factory.
>> There [laughter] you go.
>> He's going to have to watch the show all
day.
>> I don't know. You can't do any tricks
anymore with YouTube. They're really
trick
platforms do better. I'm not sure.
>> Thank you very much. Thank you so much.
You got it. All right. Bigger.