1 00:00:00,120 --> 00:00:06,080 Speaker 1: Message. Message also includes infrastructure spending and the public education 2 00:00:06,160 --> 00:00:09,480 Speaker 1: public colleges and universities tuition free for in state middle 3 00:00:09,520 --> 00:00:13,760 Speaker 1: class families. Yeah, exactly. Here's really if you pick apart 4 00:00:13,800 --> 00:00:17,400 Speaker 1: the speech speech, you you see her really putting forward 5 00:00:17,520 --> 00:00:20,799 Speaker 1: policies that appeal to specific groups that she needs to 6 00:00:20,800 --> 00:00:22,959 Speaker 1: turn out to vote for her. So with uh the 7 00:00:23,160 --> 00:00:27,600 Speaker 1: income are the tuition free uh college and debt free college, 8 00:00:27,640 --> 00:00:30,800 Speaker 1: she's really making a point to reach out to young voters, 9 00:00:31,320 --> 00:00:34,400 Speaker 1: college students, people who recently graduated from college. You are 10 00:00:34,400 --> 00:00:37,280 Speaker 1: dealing with student student debt. Uh. If all these groups 11 00:00:37,640 --> 00:00:40,920 Speaker 1: turn out very strongly for President Obama, but they haven't 12 00:00:41,000 --> 00:00:43,319 Speaker 1: had that same level of support for Secretary Clinton. They 13 00:00:43,360 --> 00:00:47,160 Speaker 1: really supported Bernie Sanders. So now she's adopting his proposal 14 00:00:47,240 --> 00:00:50,680 Speaker 1: that college should be tuition free. UM. The same thing 15 00:00:50,720 --> 00:00:53,000 Speaker 1: with infrastructure spending, you know, the lack of the lack 16 00:00:53,040 --> 00:00:57,360 Speaker 1: of jobs and good paying jobs. She's using this infrastructure 17 00:00:57,360 --> 00:00:59,440 Speaker 1: plan to sort of try to dump start the economy 18 00:00:59,520 --> 00:01:03,120 Speaker 1: create eight jobs through some government spending. It's a proposal 19 00:01:03,200 --> 00:01:07,720 Speaker 1: that another thing that that Senator Sanders supported, Uh, you know, 20 00:01:08,319 --> 00:01:10,600 Speaker 1: and it's something we've also heard from Donald Trump saying 21 00:01:10,640 --> 00:01:14,319 Speaker 1: that uh. You know, our our country, as as Clinton 22 00:01:14,760 --> 00:01:17,160 Speaker 1: uh quoted in, our country is becoming a third world 23 00:01:17,160 --> 00:01:20,040 Speaker 1: country and our airports are falling apart. Uh So she's 24 00:01:20,080 --> 00:01:23,080 Speaker 1: trying to capture those same voters who want the government 25 00:01:23,080 --> 00:01:27,200 Speaker 1: to invest more in the infrastructure of the country to RUNIPA. 26 00:01:27,280 --> 00:01:29,720 Speaker 1: Thank you for joining us today here on taking Stock. 27 00:01:29,760 --> 00:01:33,680 Speaker 1: He's our US gum reporter for Bloomberg and News. Now 28 00:01:33,720 --> 00:01:36,360 Speaker 1: I want to Charlie Pellett. He is in the news 29 00:01:36,440 --> 00:01:39,160 Speaker 1: room with a Bloomberg Business flash, and thank you, Kathleen, 30 00:01:39,160 --> 00:01:42,080 Speaker 1: Thank you, Pim Fox. The DAL, the SMPNZ, DAK all 31 00:01:42,240 --> 00:01:45,520 Speaker 1: advancing right now. We've got the SMP five hundred index 32 00:01:45,640 --> 00:01:49,320 Speaker 1: climbing eleven to eighties seven. Again, there of five tenths 33 00:01:49,320 --> 00:01:52,680 Speaker 1: of one percent. The DAL, the smpnaztack on track for records. 34 00:01:52,960 --> 00:01:55,720 Speaker 1: The Dow Industrials up one hundred thirty two points to 35 00:01:55,760 --> 00:01:59,000 Speaker 1: eighteen thousand, six hundred twenty eight. Again there of seven 36 00:01:59,000 --> 00:02:02,120 Speaker 1: tents of one percent. The tenure down twenty thirty seconds, 37 00:02:02,160 --> 00:02:05,440 Speaker 1: yield one point five six percent, Gold down a dollar 38 00:02:05,520 --> 00:02:07,920 Speaker 1: ninety the ounce to thirteen thirty five and dropped there 39 00:02:07,960 --> 00:02:11,359 Speaker 1: of point one percent. Crude oil surging four point one 40 00:02:11,360 --> 00:02:14,240 Speaker 1: percent off the dollar seventy three a barrel forty three 41 00:02:14,400 --> 00:02:17,400 Speaker 1: forty four. Hillary Clinton just wrapping up her speech on 42 00:02:17,440 --> 00:02:20,600 Speaker 1: the economy. You heard it live right here on Bloomberg Radio. 43 00:02:20,760 --> 00:02:24,600 Speaker 1: All the people that I have met throughout this campaign 44 00:02:25,480 --> 00:02:31,760 Speaker 1: really prove how wrong this negative, pessimistic view is. America's 45 00:02:31,840 --> 00:02:34,359 Speaker 1: best days are still ahead of us if we make 46 00:02:34,440 --> 00:02:37,679 Speaker 1: up our minds to actually go out and make that 47 00:02:37,800 --> 00:02:41,880 Speaker 1: happen again. Recapping stock surging SMP five hundred index up 48 00:02:41,880 --> 00:02:44,800 Speaker 1: eleven now at six, a gain of five tenths of 49 00:02:44,840 --> 00:02:48,760 Speaker 1: one percent. I'm Charlie Palett, and that's a Bloomberg Business flash. 50 00:02:49,680 --> 00:02:53,360 Speaker 1: Now on Bloomberg Radio, we take stock of small business. 51 00:02:53,639 --> 00:02:57,120 Speaker 1: Small businesses want more streamlining and less red take small 52 00:02:57,160 --> 00:03:02,080 Speaker 1: business and then except the no. But maybe there's so 53 00:03:02,120 --> 00:03:04,160 Speaker 1: many people that have ideas and it has to be 54 00:03:04,240 --> 00:03:06,440 Speaker 1: more than that. It has to be making it real. 55 00:03:06,600 --> 00:03:11,720 Speaker 1: Bloomberg taking stocks on Bloomberg Radio. Oh, we've just been 56 00:03:11,760 --> 00:03:16,160 Speaker 1: listening to a Democratic candidate, Hillary Clinton, speaking in Warren, Michigan. 57 00:03:16,320 --> 00:03:19,840 Speaker 1: One of her themes is reiterating support for strengthening labor 58 00:03:20,040 --> 00:03:24,399 Speaker 1: unions and also manufacturing products in the United States. Here 59 00:03:24,400 --> 00:03:26,400 Speaker 1: to tell us a little bit more about making products 60 00:03:26,480 --> 00:03:29,600 Speaker 1: here in the US is Tim and Tommy Gibb. They 61 00:03:29,639 --> 00:03:32,440 Speaker 1: are the co founders and the co chief executives of 62 00:03:32,639 --> 00:03:35,760 Speaker 1: Title New York, and they join us in the studio. 63 00:03:35,800 --> 00:03:39,040 Speaker 1: Thanks gentlemen for being here. Tim, let's begin with you 64 00:03:39,120 --> 00:03:42,160 Speaker 1: tell us what is Title. It's a flip flop company, 65 00:03:42,200 --> 00:03:44,560 Speaker 1: I know, but what is it? How did you start it? 66 00:03:44,600 --> 00:03:47,160 Speaker 1: And give us the whole story? Well, Title game about 67 00:03:47,800 --> 00:03:50,160 Speaker 1: from a simple notion that Tim and I grew up 68 00:03:50,200 --> 00:03:52,880 Speaker 1: around the footwear business all our lives. Our parents were 69 00:03:52,920 --> 00:03:56,840 Speaker 1: both in it, and um for the past ten years plus, 70 00:03:56,880 --> 00:03:59,880 Speaker 1: we've both been traveling around the world producing shoes, and 71 00:04:00,000 --> 00:04:02,160 Speaker 1: we thought that there was an opportunity to bring that 72 00:04:02,240 --> 00:04:05,200 Speaker 1: production back here to the States, and in order to 73 00:04:05,320 --> 00:04:07,600 Speaker 1: do so, we really needed to come up with an 74 00:04:07,600 --> 00:04:11,120 Speaker 1: innovative production process and look at the way things are. 75 00:04:11,240 --> 00:04:14,480 Speaker 1: These flip flops have traditionally been produced and really changed 76 00:04:14,520 --> 00:04:16,800 Speaker 1: the game with how we make them. Well, Tommy, give 77 00:04:16,880 --> 00:04:18,840 Speaker 1: us so great to have you in studio with your 78 00:04:18,839 --> 00:04:22,120 Speaker 1: brother Tim. I just followed you guys on at Title 79 00:04:22,320 --> 00:04:24,320 Speaker 1: New York, and I want to make sure we understand 80 00:04:24,400 --> 00:04:29,320 Speaker 1: it's T I D A L so uh Timmy or 81 00:04:29,360 --> 00:04:33,440 Speaker 1: t M I should say, what what inspired you? I mean, 82 00:04:33,440 --> 00:04:35,760 Speaker 1: you're in the shoewer industry, but you don't just make shoes, 83 00:04:35,800 --> 00:04:39,960 Speaker 1: you also hire veterans. Yeah, I mean for us, that 84 00:04:40,040 --> 00:04:42,920 Speaker 1: was something that was critical from the start, was to 85 00:04:43,040 --> 00:04:46,160 Speaker 1: put that labor force to work. They made We made 86 00:04:46,160 --> 00:04:48,920 Speaker 1: promises to them when they went overseas, and we need 87 00:04:49,040 --> 00:04:53,840 Speaker 1: to make good on those. Um. Basically, Tommy and I 88 00:04:53,920 --> 00:04:56,120 Speaker 1: have believed in that from the start, and that was 89 00:04:56,200 --> 00:04:58,240 Speaker 1: something that that that we were not going to go 90 00:04:58,279 --> 00:05:01,080 Speaker 1: back on. UM and it's been the most rewarding thing 91 00:05:01,160 --> 00:05:03,479 Speaker 1: that we that we've done in that someone in your 92 00:05:03,520 --> 00:05:07,760 Speaker 1: family in the military, or both our grandfathers were Um, 93 00:05:07,839 --> 00:05:10,160 Speaker 1: we're in Nebraska, guys. That's that's where we were born. 94 00:05:10,240 --> 00:05:13,119 Speaker 1: It's it's in our blood. And more than that, though, 95 00:05:13,320 --> 00:05:15,800 Speaker 1: if you look at the numbers, it doesn't matter. It's 96 00:05:15,920 --> 00:05:19,839 Speaker 1: up near whether you agree with war or not. In 97 00:05:19,960 --> 00:05:24,720 Speaker 1: what wars were in a huge number of Americans believe 98 00:05:24,800 --> 00:05:26,880 Speaker 1: that we should do right by the veterans. That's what 99 00:05:26,960 --> 00:05:29,880 Speaker 1: we that's what we both believe into. Gentlemen, Let's talk 100 00:05:29,920 --> 00:05:33,320 Speaker 1: about where the products actually come from. Because taking a 101 00:05:33,360 --> 00:05:36,560 Speaker 1: look at the details in New York, you do the 102 00:05:36,600 --> 00:05:40,800 Speaker 1: molding in the final assembly in Missouri, you develop the 103 00:05:40,839 --> 00:05:45,400 Speaker 1: wave of foam packagings from New Jersey. You source proprietary 104 00:05:45,440 --> 00:05:48,520 Speaker 1: strap material from Massachusetts. How did you decide on those 105 00:05:48,800 --> 00:05:52,080 Speaker 1: specific locations? So coming back, you know, we were well 106 00:05:52,200 --> 00:05:54,960 Speaker 1: versed in producing shoes around the globe, but here in 107 00:05:55,000 --> 00:05:58,320 Speaker 1: America we had to source out the right partners and 108 00:05:58,440 --> 00:06:01,359 Speaker 1: UM it was critical to us to maintain a percent 109 00:06:01,440 --> 00:06:06,159 Speaker 1: American made product through all componentry and materials. And it's 110 00:06:06,200 --> 00:06:09,359 Speaker 1: been an evolution as we built out the factory and 111 00:06:09,400 --> 00:06:13,800 Speaker 1: found those core partners. UM. Each one of them has 112 00:06:13,839 --> 00:06:17,479 Speaker 1: been the right partner for the right reasons, and we 113 00:06:17,560 --> 00:06:20,040 Speaker 1: look to them to be long term partners for us 114 00:06:20,080 --> 00:06:24,720 Speaker 1: for the future. So uh, it's interesting, Uh the number 115 00:06:24,800 --> 00:06:28,560 Speaker 1: of places that you have around the country. It's not 116 00:06:28,600 --> 00:06:32,200 Speaker 1: just New York, it's Massachusetts and a couple of other locations. 117 00:06:32,200 --> 00:06:36,480 Speaker 1: And you've come up with some innovative materials that's right. UM, 118 00:06:36,560 --> 00:06:39,480 Speaker 1: So through through what we've needed to do that the 119 00:06:39,880 --> 00:06:44,360 Speaker 1: footwear industry and the US is typically driven towards the 120 00:06:44,440 --> 00:06:48,280 Speaker 1: department offense. UM that's through subsidies and things like that. 121 00:06:48,320 --> 00:06:51,840 Speaker 1: They've been able to compete over with overseas. For us, 122 00:06:51,880 --> 00:06:53,919 Speaker 1: what we wanted to do and why we focus on 123 00:06:53,960 --> 00:06:56,920 Speaker 1: flip flops was because we could we could figure out 124 00:06:56,960 --> 00:07:01,120 Speaker 1: a way to automate something that's done through heavy labor 125 00:07:01,120 --> 00:07:03,840 Speaker 1: overseas and win that way because we weren't going to 126 00:07:03,960 --> 00:07:08,279 Speaker 1: do it on labor rates here. Um. So via finding 127 00:07:08,320 --> 00:07:12,240 Speaker 1: these partners that that to Tommy touched on, we've worked 128 00:07:12,280 --> 00:07:16,040 Speaker 1: with them and they've been amazing in terms of working 129 00:07:16,080 --> 00:07:18,600 Speaker 1: with us to really develop the product in such a 130 00:07:18,640 --> 00:07:21,360 Speaker 1: way that makes it better than it's been in the past. 131 00:07:21,400 --> 00:07:25,680 Speaker 1: And that's just through R and D and working hand 132 00:07:25,680 --> 00:07:29,320 Speaker 1: in hand. How did you select the artists whose work 133 00:07:29,440 --> 00:07:33,560 Speaker 1: you would license in order to decorate the flip flops? 134 00:07:33,560 --> 00:07:36,240 Speaker 1: And I understand, what about twenty eight dollars or so 135 00:07:36,320 --> 00:07:37,800 Speaker 1: forth for a pair of them? I know that Keith 136 00:07:37,840 --> 00:07:41,480 Speaker 1: Herring is one of the artists whose work you use. Yet, 137 00:07:41,640 --> 00:07:44,160 Speaker 1: so when we set out to do this, um, the 138 00:07:44,400 --> 00:07:47,960 Speaker 1: way we print the product allows for us to really showcase, 139 00:07:48,320 --> 00:07:53,200 Speaker 1: um the imagery and art seems like a natural um 140 00:07:53,440 --> 00:07:55,320 Speaker 1: it the flip flop serves as a canvas or a 141 00:07:55,360 --> 00:07:57,160 Speaker 1: T shirt for your feet, as we like to say. 142 00:07:57,720 --> 00:08:01,400 Speaker 1: And um, you know we we liked New York and 143 00:08:01,640 --> 00:08:05,200 Speaker 1: iconic you know American figures, and and there aren't many 144 00:08:05,240 --> 00:08:08,280 Speaker 1: more iconic you know American artists than John Michelle Buscia 145 00:08:08,400 --> 00:08:11,120 Speaker 1: and Keith Herring. And we also worked with Peter Tuney, 146 00:08:11,160 --> 00:08:13,080 Speaker 1: who's been a friend for a long time and is 147 00:08:13,280 --> 00:08:19,000 Speaker 1: um still active just south the Canal Street. So what 148 00:08:19,040 --> 00:08:21,960 Speaker 1: did it take to him to get this off the ground? 149 00:08:22,120 --> 00:08:24,960 Speaker 1: I mean, did you beat strapped? Did you borrow money 150 00:08:25,000 --> 00:08:28,920 Speaker 1: from friends and family? Uh? You know everything you can 151 00:08:29,000 --> 00:08:32,400 Speaker 1: think of? We did. Um, you know, it was there 152 00:08:32,440 --> 00:08:35,160 Speaker 1: was a lot. There's plenty that there were shipments that 153 00:08:35,240 --> 00:08:37,880 Speaker 1: were going out where we had fathers in law helping 154 00:08:37,960 --> 00:08:41,800 Speaker 1: out to pack the shoes at three am. Um. And yeah, 155 00:08:41,880 --> 00:08:45,480 Speaker 1: we bootstrapped it. We did a ton on our own, 156 00:08:45,800 --> 00:08:47,760 Speaker 1: but we had a lot of help from the people 157 00:08:47,760 --> 00:08:50,160 Speaker 1: that we love and from the people that believed in 158 00:08:50,200 --> 00:08:54,040 Speaker 1: what we were doing. Um. But in terms of what 159 00:08:54,160 --> 00:08:57,080 Speaker 1: it took, it took a lot of work. But when 160 00:08:57,120 --> 00:09:01,720 Speaker 1: you believe in something that is in your blood and 161 00:09:01,760 --> 00:09:04,240 Speaker 1: you believe you're doing it for the right reasons, it 162 00:09:04,280 --> 00:09:07,079 Speaker 1: makes it easy to get it done. Um. That doesn't 163 00:09:07,120 --> 00:09:09,520 Speaker 1: mean it's easy to get it done, but it keeps 164 00:09:09,559 --> 00:09:12,679 Speaker 1: you going and it and it and it really motivates 165 00:09:12,720 --> 00:09:18,640 Speaker 1: you every day. So making here, you know, is possible UM, 166 00:09:18,720 --> 00:09:21,240 Speaker 1: and it's it's something that if you put your mind 167 00:09:21,240 --> 00:09:24,200 Speaker 1: to it, it absolutely can be done. And we did 168 00:09:24,240 --> 00:09:28,559 Speaker 1: take UM. We had spa government support with funding and 169 00:09:28,600 --> 00:09:32,240 Speaker 1: we did a friends and family UM investment round to 170 00:09:32,320 --> 00:09:36,600 Speaker 1: begin with. So we uh, we we did have you know, 171 00:09:37,120 --> 00:09:39,400 Speaker 1: that's how we financed the business to get started. That 172 00:09:39,559 --> 00:09:43,200 Speaker 1: you're in a variety of department stores. You're in Bloomingdale's, Nordstrom, 173 00:09:43,280 --> 00:09:47,360 Speaker 1: Lord and Taylor, and also the Broad Museum in Los Angeles. 174 00:09:47,880 --> 00:09:49,319 Speaker 1: I don't know whether you heard about the news of 175 00:09:49,400 --> 00:09:52,079 Speaker 1: Macy's today, they're closing over a hundred stores, cutting that 176 00:09:53,000 --> 00:09:55,640 Speaker 1: of their base. Do you foresee the time when you're 177 00:09:55,640 --> 00:09:59,360 Speaker 1: gonna have your own retail outlets? So right now we're 178 00:09:59,400 --> 00:10:02,880 Speaker 1: really folk gussed on direct the consumer and how we 179 00:10:02,960 --> 00:10:06,320 Speaker 1: can evolve that experience with the consumer. And when we 180 00:10:06,360 --> 00:10:09,920 Speaker 1: started the factory, we focused on UH and the brand. 181 00:10:10,000 --> 00:10:13,040 Speaker 1: We really wanted to focus on emerging in the marketplace 182 00:10:13,080 --> 00:10:15,640 Speaker 1: and getting as much you know as we can out 183 00:10:15,640 --> 00:10:19,319 Speaker 1: there invisibility. And now we are taking that a step 184 00:10:19,360 --> 00:10:23,640 Speaker 1: further with some really awesome customer experiences where and coming 185 00:10:23,720 --> 00:10:27,240 Speaker 1: up on holiday, we'll have customizable platforms where you can 186 00:10:27,559 --> 00:10:30,560 Speaker 1: design your own flip flops on our sites. And we're 187 00:10:30,600 --> 00:10:33,200 Speaker 1: really you know, Tim and I have always focused on 188 00:10:33,280 --> 00:10:37,880 Speaker 1: progression and and progressing. You know a product that hasn't 189 00:10:37,880 --> 00:10:40,880 Speaker 1: been progressive? All right? Tim? Really quick? Where your website? 190 00:10:40,880 --> 00:10:43,520 Speaker 1: If I want to order www dot title New York 191 00:10:43,600 --> 00:10:47,400 Speaker 1: dot com Title New York. They are the founders, brothers, 192 00:10:47,440 --> 00:10:50,960 Speaker 1: Tim and Tommy gab. It's made in America, the employer, 193 00:10:51,080 --> 00:10:53,959 Speaker 1: military veterans. We thank you so much for joining us 194 00:10:54,000 --> 00:11:01,480 Speaker 1: on taking stock today. This is Bloomberg. Small Business in 195 00:11:01,480 --> 00:11:04,079 Speaker 1: Focus is brought to you by Time Warner Cable Business Class. 196 00:11:04,080 --> 00:11:06,080 Speaker 1: If your business relies on the phone company, you may 197 00:11:06,080 --> 00:11:08,240 Speaker 1: be getting less than you deserve. Make the switch to 198 00:11:08,280 --> 00:11:11,680 Speaker 1: more speed, more value, and more savings. 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