By Steven Feldman
Walk into the room and you have to do a double take. There is Mickey Goldberg, the heir apparent to the Rite Rug empire, and the physical resemblance to his father, Michael, is immediately obvious. Spend a few minutes with Mickey, and what’s also apparent is he and his dad share the same drive and commitment that were instilled by company founders Duke and Stanley Goldberg and has made Rite Rug a 75-year success.
It should come as no surprise. Mickey, currently COO of the company, has been groomed for the big time since college, during which he began his Rite Rug career, logging weekends and most nights. The experience helped him grow both professionally and personally as he developed social skills and confidence. He has since climbed the ladder, learning at every rung, to where he now runs the Cincinnati and Kentucky division. What’s more, in the last seven years he has grown the division from about $1.5 million to what is now one-third of the $80 million enterprise. You do the math.
According to Michael Goldberg, company CEO, Mickey had a very strong “mental ownership” at a very young age. He embraced Rite Rug as his career path and was successful. Every store he managed saw the numbers go up significantly. “It’s because I took it personally,” Mickey said.
Michael added that much of Mickey’s success comes from within. “He improved every store he went to because he cared more. He had a sense of ownership, a sense of responsibility. He was an owner’s son who took ownership. He didn’t try to slide his way through. He wanted to do good and loved the company. That may be the most important thing.”
While much of Mickey’s passion and commitment is inherent, he has also benefited from watching one of the best. “One of the biggest things I’ve gotten from my father is his work ethic. Like him, I’m at work before dawn everyday and I’m always accessible, even on vacation.”
Erin Appleman, a Rite Rug vice president, referred to Rite Rug being as much a part of Mickey’s life as his left arm. “Both Michael and Mickey treat Rite Rug as a member of their family— a living, breathing entity you cultivate.”
Aside from commitment, Michael believes he and Mickey share the same leadership traits that encourage people to go the extra mile. “The most important thing I’ve taught him is in order to be a good leader, you have to do it right yourself,” Michael said. “You can’t lie to your people. You must set a good example. Everybody is watching everything you do.”
Mickey’s leadership skills were displayed two years ago when his primary focus was on new construction. “Within a two-month period, I watched our volume outside of Columbus start to fall. That’s when I decided to make a real drive for sales and in the areas we’ve done that we’ve gotten the revenue.”
Michael added that over those two years, Mickey has led the company in sales: “In the attitude, in the drive, in the philosophy. His leadership skills have been getting everyone else to make those sales happen. People follow leaders, and Mickey has been a leader.”
Michael pays him the ultimate compliment. “He is better at what he does than I was at his age. It is his responsibility to this business and understanding what that means. People want leaders. You need to have these 300 people who believe in you. And people will believe in Mickey because he has character. He takes after his father and grandfather in that regard. That’s what I was looking for and that’s what I got. Being a good salesperson is only a bonus.”
Another area where Mickey emulates his father is in the art of negotiating—big shoes to fill given Michael’s reputation as one of the toughest negotiators in the business. “I’ve been watching him negotiate since I started attending markets in college,” Mickey said. “My philosophy is this: I look at a supplier as a partner. I believe a supplier must be competitive but on the other hand, you need to give your supplier a nice mix. You can’t just buy the commodity item, you have to give them the opportunity to make money.”
How it all beganIt was 20 years ago that Mickey started working full time for the company in Columbus as a retail salesperson in multiple stores. He would elevate to management positions, including a six-month stint as an assistant manager in Dayton. He would help close deals, involve himself in facilities management, etc. But customer service was always first and foremost for Mickey.
“One of the bigger functions in which I was involved was handling problems,” he said. “I’m just very customer oriented.”
By 23, Mickey was running one of the stores in the Rite Rug stable. He continued to learn the higher levels of running a business with responsibilities increased to include merchandising and pricing. But the customer was still the focus. “One thing I put in place was a new system to track the customers who came in but didn’t buy,” he said. “We made sure the customers who weren’t buying were talked to.”
As Mickey’s responsibilities expanded, so, too, did Rite Rug. “We were transforming ourselves from a company with a retail focus to a company with a broader base, segmenting the marketplace.” One of the companies Rite Rug acquired was Elite Flooring, a small property-management-focused company in Cincinnati. “I knew the best way to grow that market was to have experienced Rite Rug leadership running the day-to-day business so I chose to leave Columbus to run it.” And this is where Mickey truly blossomed, taking the business into builder, retail and commercial as well as into Lexington and Lousiville, Ky. In seven years, the division has grown almost 20-fold.
How did he do it? He said there’s no secret to it, citing a blend of instinct, passion, competitiveness, intelligence and hard work. “It’s Manifest Destiny. I want to sell every ounce of carpet or hard surface in Cincinnati that can be sold.”
At some point Mickey will return to Columbus to run the show. But he is certainly not pushing his father aside. “Right now my goals are very simple: First, to be successful. Second, to take advantage of every opportunity that comes in front of us or we create. And third, to continue to grow my grandfather’s business.”