How to Adapt Before It's Too Late

pet toys. Now, that's something I never even thought about, but it seems like Americans and just people around the world are really into their pet toys. Mark Hersburg realized that early on in the game and built an incredible company that does a hundred million dollar a year of sales just on pet toys. Mark is a fascinating guy, but how he got into the pet space is even more fascinating. Hear his story this week on Jewish Grit. Welcome to Jewish Grit. This week we have an amazing guest. It's a pleasure to welcome Mark Hersburg to the podcast. Mark is one of the, if not the largest, one of the largest importers of, interestingly enough, pet toys and has uh built a global business doing that. And we're super excited to talk to him and to welcome him into our studio today. Tell us a little bit about who Mark Hersburg is. Talk to us a little bit about your personal journey, where you grew up, uh, your professional journey, um, so that we know when we hear the wisdom from you, who is perveying that wisdom. It all goes back to um my grandparents who came from Germany um in the 1930s. They ended up living in the basement of um somebody's home that they knew because obviously they came here penniless. And the gentleman who home they were in, he was in the belt business and he had a diecut machine in his basement and he diecut leather belts. My grandfather took the scraps of the belts in the basement that were on the floor and turned them into dog toys because in the 1930s um dogs only chewed on leather. In fact, rawhide is what dogs chew on now became popular in the 1950s almost 15 years later. And when rawhide was introduced to the market, it was called chewing gum for dogs because it was a inexpensive version of the leather. So my grandfather got started in this industry by taking leather scraps off the floor and instead of putting them in the trash, turning them into toys and eventually selling them to pets pet stores. So that is the introduction of my family into the pet industry. >> That's incredible because you take a really bad situation, you can't even get a regular apartment and you're thrown scraps and you turn that into opportunity. >> Yeah. Well, that that was a lot of foresight for them. Correct. >> Okay. So then your father also. >> So that was my mother's father. That was my grandfather. I'm maternal. Um and then it's also interesting um and this conversation brings back these memories. Um when my parents got married, my mother was an only child because when they left Germany, they can only have one child and they were lucky to get here. Um and my grandfather begged my father to come into the business to help him. My father was a tool and die maker by trade. So my father worked for my grandfather like 9 to5 then be went and did tool and die making at nighttime 5 days a week and on the weekends and my grandfather never knew he took the side bar the side job because my grandfather couldn't pay him enough to sustain my dad. >> That's remarkable. Okay. And then where do you fit into this whole narrative? >> Okay. So that that's a little bit of the history. So my dad then took over my grandfather's company um which was a family business. And by the time he took it over, it was a successful business. >> Yes. Everything's relative to success for in the 1950s and60s. Yes. In fact, that's the same time in those days, a lot of the products were made in the United States. Um, so really in the ' 50s and60s is when they started to import from China. Um, that's when the doors opened. And my father would always tell me he used to fly to China and he'd have to make three stops on the way just to get there to refuel where, you know, we're a little spoiled. We go on and we, you know, and 16 hours later we're down. in those days it was probably easily 24 hours if not longer. So that was it. So I would say that they were they were pioneers of the industry. So my grandfather and my father um had a company um and I I did work there with my older brother for about eight years and then I decided um in about the mid1 1990s I wanted to do something on my own. Um so when I I actually went off and I started Multipet which is the current company. So what what was different about the company you started and the company you left >> back in the day and it still happens if you go to China you go into trading companies and trading companies have 500 items off the on the walls and you can pick the item that you want to buy and you you know and you say I'll take this one I'll take that one and a a lot of their competitors in the day were doing the same thing. So when the products came to the states, it really became a price war because three or four companies are importing um the same duck for dogs, you know. So then do we sell it for a dollar, dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar5 or you know a dollar two and I identified that and I decided that I wanted to bring elements of the toy industry into the pet industry which I had not seen. Again we're going back in the mid1 1990s when I started the company. I also wanted to get unique designs that were not in the industry. Uh, and I want to work with designers because I didn't want to get into a situation where competitors were selling the same items so we could name our price. Didn't mean that I was price gouging. I just didn't want someone come to me and say, "Hey, I can get this product from Rabbi Landau for 5% less. So, if you want the order, this is what you have to do." And that does happen all the time. It still happens today. >> Now, did you end up was your new company a competition to like your this previous company, your family's company? indirectly you would say we're in the we were in the same industry but we weren't really competition because they were well established and and they had a good reputation and you know we were really starting from scratch. The only time I would say there was a conflict and this is in my mind maybe if you spoke to them you get a different answer is back in the day if you went into um a supermarket or a pharmacy they'd only have a 4ft pet section so there's only so many toys they're going to put in. So I assume maybe if they took one of mine and I don't think they would have eliminated one of theirs but in that respect >> potentially it could be a >> potentially but that I would not say we were competitors. >> We fast forward to today are both companies still standing? >> No unfortunately um that company closed in they just shut their doors in 2016 so about 10 years ago which I thought I would never see. >> What happened? >> This is my opinion again. If you spoke to them you get a different answer. I don't think they changed enough with the times. I'm not sure we changed with the times too as well, but but I I think they did. So that could be the first lesson. You have to change with the times. I think they they they still ran that company and they were very successful for a very long time. Yeah. They didn't adapt. I think they just kept things the way they were for the last um you know for the 30 40 years they were in business. >> So I want to drill down a little bit here. Yeah. The p the podcast is Jewish grit. We hear the grit stories of different Jewish professionals. Can you share a moment in your personal or professional journey where maybe it didn't follow the script in the narrative and you found yourself somewhere you didn't think you'd be and you had to your way out? >> When I left my family business in 1995, I always thought that would be my life. It it was tough and I did have three young kids so I would say that was it was a big leap. >> What gave you the strength to to leave the comfort and stability and to venture on your own? I knew what I had to do to survive. I guess in inner and I didn't think I would thrive and survive in the environment I was in. I think I have spent my entire life, not my entire life, a lot of my adult life trying to prove myself to myself um and probably to my father I guess every >> What did your wife think like through this whole thing was she okay with you doing this? >> Yeah. Well, that's funny because one of the one of the things is yeah that I would talk about is you have to have the right support system. Um and my my wife is very strong and she did believe in me and um you know we um she she was very supportive. She went back to work. She's a teacher, special ed teacher and she worked till 2014. She pitched in and you know she took you know and she took the risk with me. >> How many years are you guys married? >> 40. 40 in two weeks. >> What's the secret to a good marriage? >> Laughter. >> Oh that's great. >> What? >> That's wonderful. >> Yeah. I think the secret I think the secret is good laughter. I just, it's funny you say that because three minutes ago I was watching this quick um clip and it said, "See, for good marriages, I do what I want and my spouse does what I want, but I don't think that's fair. I I don't." >> But you were and and being able to enjoy happiness together is super important. >> I know. >> And how many children do you have? >> I have three. >> You think you're a good dad? >> Do I think I'm a good dad? Well, let's get to the point that all three of my children work in the company. >> Oh, I did not know that. So, probably I'm probably a better dad than a better boss. Is that a conflict? Like, you know, having children because people say that like it's not healthy for family members to work together. >> Uh, is it a conflict? Well, it's ironic because I came out of a family business and I left it because of conflicts. Um, and then you just recreated it. Oh my gosh. >> Exactly. I'm no better. I always say I always say I'm turning into my dad. Um, which might not be the worst thing, but you know, my wife always does remind me, you know, don't make the same mistakes your father did. >> So, how do you how do you navigate that that delicate balance? Well, each one has a different responsibility. Um, you know, my I have one son who's like an inventory wizard. We have a lot of inventory and then does purchasing. My other son is is really strong in marketing and and um social media, which again adapting, changing%, >> you know, he's the one who comes and says we have to have an open workstation for everyone, you know, you know, things like that. Um, little things like that. Uh, and I have a daughter who um is really in sales, so I'm trying to keep everyone in there. >> Did you groom them? This should be my sales, my marketer, and my inventory. >> It's it's really interesting because my oldest son is an actually an animator by he worked on he went to school. He majored in animation and he's he's very creative and talented. And when he came to the company, I actually thought he would be he that's what he would do. Design toys and marketing because that is who he is and that's his narrative. But instead, he's into numbers and and inventory control and it's it's not what I would have thought. >> But is he happy there? I hope >> I hope he's happy. Yeah, you know, he should be happy. He does a great job. >> What makes you most proud to be a Jew? I feel like I hit the jackpot. I do. I think being Jewish hit the jackpot. Every time I go into my synagogue, I learn something new from my clergy. I feel at home and I think there's always more to learn. And I actually think I probably only know about 3% of what I need to know. There's just unbelievable the amount of of information and knowledge that you can get regarding our religion and our heritage. Um, but I think that I always strive to grow and be better. And I think that's the Jewish mindset and it's something that I carry with me every day. >> What makes you happy? >> I think being at peace with myself. >> Okay. >> It makes me happy. Um I mean a lot of cliche answers you can say. Of course being with my family makes me happy. Being a being works really makes me happy. >> It it it does. Um but I think you really have to like who you are and not be a follower. >> What do you find is the biggest challenge professionally for you today? Our business became a little unpredictable. Everything was going along again. Some I have this the theory. You don't know how good you have it till you don't have it anymore. >> Right. So we went through COVID which was the first thing and um then we were closed. >> What but did that help you in terms because a lot of people you know tried to take care of their pets or got pets. No. >> Well what happened? Yes. But we didn't know at the beginning. Fortunately we were considered an essential company only because of the pet food industry. >> Oh. because they just put they categorize pet for people made treats and food and anything that was in pet went along with it. So >> but you don't make >> No, we don't. But the industry became essenti you know we worked what we did is we worked four days a week. Yeah you four days a week 10 hours a day and um we only had a skeleton crew but that that was the first challenge um that we had and that that was very difficult. Fortunately as as you know a lot of people adopted pets and you know at the end you know business really grew a little bit because of it but when it started we did not know that. Number two is uh we import from China and after COVID when that was finally over the container prices if you remember that went through the roof right >> so we pay 4,000 remember we're importing dog toys they're not expensive maybe we pay a dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar$ dollar50 for a product >> um and a $4,000 container went to $20,000 so we're paying five times the amount to bring to bring product in um and then that became very difficult and then the last which is tariffs prevalent is tariffs of course and duty and um at one point we went to 145% for a month last March exactly a year ago >> and um that meant for every dollar that we bought paid for we paid 245 for the product but what all that does is it makes it an makes it uncompetitive because you don't know how to compete with other people so you're put into a position beyond your control that is with an unfair competition. So what happens to you when all of a sudden everything that you expected in the industry just turns around? How do how do you survive a as a company and then b as as a leader of the of the company? >> Well, I learned a I learned this as a lesson because I made a mistake. You have to make mistakes to grow, >> of course. Um, I just say I just forged ahead because my answer is, you know, yes, the profitability is going to go down, but if we stay strong and steady to our competitor to our to our customers, excuse me, we're strong and steady to our customers and we keep the flow of product going um and we're shipping on schedule, there's a good chance our competitors are not. And I would rather be that person. So when I come out on the other end, I'm going to maintain and retain the business that I have because you know a vendor that you know dries up a retailer and you know and doesn't support them during hard times may not get the business when times are not hard. in a position as a leader of a company. Um what do you feel is the most important um ingredient to be a strong leader to be a director so that the people in your company feel valued respected always you have to stay humble always don't get too high on the highs and don't get too low on the lows because it's a little bit as you get older you get I call it sandpapered you know like I used to get very emotional if something was great we jump up and down and then of course something wasn't great we would you know what we would get a little bit depressed. Um, and I think you have to stay consistent. You have to have good people. You know that every everyone says it. You you really really have to have the right people. Treat them like family. Um, and listen to everything that they have to say. >> What What defines a good person to you when you're trying to hire someone? You have 10 people that apply for the same position. What What to the thing that's going to sell you on that 10th person? >> Well, I did learn something. The better they interview, usually the worse they are as employees. >> Oh, yeah. That's fascinating. I'm exaggerating. >> I I didn't learn that on a podcast. The better the interview, the better they are. >> No, but now I'm like, you're doing great. >> If someone is like really dull, they're probably a great employee. And if someone is full of personality, they're probably themselves. Yes, exactly. I'm exaggerating, but well, I look for I look for humility. Um, but I think the answer is I'm not, you know, our industry is not so sophisticated. You know, we're not financial. We're not, you know, we're not Wall Street, right? Um, so we really look for people that are moldable, someone that is going to mold with the company, grow with the company and and understand our our business and um and fit in culturally with with who we are. Um, I think that really smart people are very are are moldable and are able to adapt to change and I think that some are not everybody not everyone we hire can fit in and you know it happens in every company but um the ones that do can really thrive and grow. Um >> do you see yourself retiring at some point and just letting your kids take the company over? >> I want to work till I'm 75. That that would be my goal. Uh I have a personality such that I have to wake up in the morning and have somewhere to go. of course, you know, I don't have to work all day, but I, you know, I need, you know, I need to get out of bed, dressed, you know, and somewhere. Um, so I would say that, um, I and I need to slow it down. And I also, as I, as I get older, you know, by 10:00, 10:30, I'm worn out. I used to make it I used to make it till midnight. You start your life off, you get married, hopefully, you establish a family, you get a job, and you're kind of finding your footing, and then more or less, you're focused on yourself. That's what you're really focused on. You do you need you need a strong foundation but at some point if you're blessed with success and a little bit of wiggle room all of a sudden the world around you becomes more important and you have the opportunity to give um you your wife your company are do you have like a philanthropy foundation and if you do like how do you decide how to give where to give when to give >> okay I can answer the question two ways we give personally okay most um I would say a lot to our federation our um synagogue which very active in We have a very very big JCC, >> right? >> Um that thriving. So I would say we give to that um and and a lot of Israeli causes um that we like to support. Corporate wise, we try to stick within our our industry. We um we do a lot with um shelters um with adoption agencies um you know, we're very strong. We're going next week is our largest trade show of the year. We call it our we call it internally our Super Bowl and we do a pet adoption um in our booth. >> Nice. >> Um it's really nice. It's actually very special. Um, and we probably get about 20 to 25 um, dogs adopted, you know, in our booth at the show. Um, it's an industry show, so the people who are adopting the dogs are people in the trade people. That's not open to the public, but and it's really rewarding to see these people, you know, take these pets home um, with them, you know, and um, >> are you a pet owner? >> I have granddogs right now. >> Do you have grandchildren? >> I do. >> What's better, the granddogs or the grandchildren? Well, I had the granddogs first. Uh um they're all special. How's that? >> Beautiful. That's a great answer. Very well politically said. >> Thank you. >> As the our viewers and our listeners try to figure out, you know, their lives and as somebody who think God has had professional success and built a beautiful Jewish family and is part of the community, what would you tell them if you have an opportunity to address them and tell them about something they should be thinking about? some values, some advice. What What would you What would you like to tell them? The mic is yours. >> You have to learn your industry. And I think it takes 10 years to learn an industry. I'm your rabbi. I'm sure even once you're >> still learning. >> Yeah. But once you're ordained, I'm sure it took it took you 10 years to perfect. >> Sure. For sure. >> And I think that had I started this when I was 25, it wouldn't have worked, you know. I think that I started when 35 was a big advantage. I think you really, really have to be patient. You have to learn the products, learn the players. And it's not just my industry. I think it's every industry. And I think a lot of people start too young and want to conquer the world. Some do and some are great at it. But I think you really, really have to really study your industry, know your industry before you take the bat out and you want to hit the ball on your own. You need patience and financing sometimes. That's right. >> And um part two of it is, you know, I'm on the other end of it now. I have a lot of friends. Not everyone is successful professionally and personally. Now I don't I'm not talking about money and I'm not talking about family and kids because you can be single and be very happy and sure >> but um I find that in many cases one per if they have they're very successful professionally they've lost out on something personally and if they're very have a great personal situation they sometimes don't have it professionally and I think you have to really walk that fine line to get that balance. um to have to thrive in both both areas of your life. >> Do you feel that you know building your company impeded your family life the the quality of time or were you able to balance that successfully? >> No, I think um when I think you know our industry was very much much small. Our industry was much smaller than it is today. Um and god I you know I lived on airplanes. I I worked every every what we say trade show or distributor show that was there. Um I made every sale myself. You know, I went to Asia. I did all the purchasing. They were really small. No, it absolutely absolutely impeded on on my kids. I did. >> But they turned out okay. >> You think they did, but other people may not. Um, listen, they had a great childhood. And you know, they the everyone wants to give their kids the childhood they wish they had. >> Okay. >> So, um, >> and now you're the grandfather that can help make that happen in a real way. >> Yes. It It's true. We all went skiing last week. >> Beautiful. So, it was nice. It was >> Mark, this has been a real pleasure. I I learned a lot of things and I appreciate you sharing and I want to wish you lots of success personally and professionally. >> Thank you. Um and um I look forward to um talking to you again. >> Got it. Thank you for listening to Jewish Grit and Ol mentorship podcast. At Ol mentorship we believe that everyone needs a mentor. What better way is there to tap into your personal and professional potential than with a Jewish mentor at your side. Learn more at olam.org/metorship. 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