Rose blumkin has not received economic education and the rest of your life bad spoke in English. But the richest man in the world Warren Buffett says about the immigrant that she would have given odds of all other qualified businesspeople in America.
Mrs. B. in his shop. 1977. Photo: omaha.com
He still leads blumkin, nee Gorelik, the example of novice managers paying attention to the simple but rare qualities that led to her incredible success: “If they will learn lessons Mrs b, anything new I don’t teach”.
Warren tried several times to buy created blumkin furniture store Nebraska Furniture Mart, which became the largest in the United States. And honored, when she finally agreed to sell 90 percent of family businesses his holding company Berkshire Hathaway’s.
Buffett eventually began to feel like one of the family, a successful business woman. It is no coincidence that the book writer Alice Schroeder, published in 2008, a detailed biography of the billionaire, Mrs b a whole Chapter is devoted.
Slept on straw on the floor
Rose Gorelik was born 3 Dec 1893 near Minsk in a small village Shchedrin (Shchedrin). As stated in the biography of Buffett, although the store Nebraska Furniture Mart the other name — Chardin (Shirdeen).
Both sources agree that this village was near Minsk. However, one should remember that Belarus was then part of the vast Russian Empire, so the “near Minsk” can mean not two or three, but dozens of kilometers.
According to the website Nebraska Furniture Mart, this is the place Serdin near Minsk. Photo: nfm.com
Today, under the description best suited the village of Shchedrin in Zhlobin district. Although the village with the same name exists in Russia, in the Bryansk region, near the present border of Belarus. However, he was not part of the Minsk province.
As reported in the book-biography of Buffett, rose and her seven brothers slept on straw on the floor of their wooden house. Father is a Rabbi could not afford to buy the mattress.
“My first dream with 6 years to go to America,” said rose, remembering the horrors of the pogroms. At the age of 13 she walked barefoot for nearly 30 kilometers to the nearest train station to spare the leather soles of new shoes.
Girl for saving hid in a train under the seat and drove to the nearest city — Gomel. There she knocked at 26 doors, before supply responded the owner of the fabric store. “I’m not a beggar,’ said the rose. Let me spend the night, and I’ll show you I can”.
The next morning, when she came to work and engaged in the buyer, then unrolled the canvas and used it before someone managed to pick up a piece of chalk. “In 12 hours the owner asked if I would be able to stay,” recalled rose later. By age 16 she was already here and the management was led by six married men.
The young rose with her family. Photo: nfm.com
After 4 years, the girl married Izadora Blumkin, a local Shoe salesman. At the same time outbreak of the First world, Russia is beginning to grow anxious, and rose decided. The couple got money for one ticket to America. She sent her husband, and she left to save for your trip.
For $ 5 from head to toe
Two years later, when again started the riots, Rosa got on a train, travelling on the TRANS-Siberian railway. She was headed to China. From there, crook crossing the border, moved to Japan. And then on a cargo ship carrying peanuts reached Seattle. And soon reunited with her husband.
In a few years, pick up children, the couple moved to Omaha — a city, inhabited by 32 thousand immigrants. Here, the rose could speak with people in Russian and Yiddish. Isadore started earning by opening a pawnshop. Wife in his case is not particularly interfered with. Sending money to Russia, she was able to take out ten more relatives.
Humble beginnings. Nebraska Furniture Mart began in the basement of a pawnshop. Photo: nfm.com
But during the Depression the pawnshop went bankrupt. And then the business in hand was taken by a female. Rose knew what to do, and bet on low prices. “Buy the thing for three dollars and sell for $ 3.30,” he instructed her.
The wife managed to turn out of fashion costumes in real gold. It is distributed throughout the Omaha 10 thousand leaflets. They said that Blyumkin will suit any buyer for $ 5 from head to toe. The kit includes linen, suit, tie, shoes and a straw hat. One day the wife earned $ 800 — more than the entire previous year.
Slowly the business began to expand: in the sale went well as jewelry, fur coats and furniture. Bet on low prices have left their mark. Soon, buyers have more to ask it.
Rose borrowed my brother $ 500 to open in the basement beside her husband’s a pawn shop called Blumkin’s. But faced with a problem: wholesalers wanted to sell her furniture for complaining about their dealers: they said that she beat him.
Sell cheap and don’t cheat
Then rose found a man in Chicago and had ordered the product for 2 thousand dollars in credit. When the time came to return, she had to sell furniture from his home. Nevertheless, it was a start.
And in 1937, rose made a landmark step — based the the Nebraska Furniture Mart. The entrepreneur continues to be boycotted by the wholesalers. So blumkin rode across the Midwest, buying cheap furniture at major stores. Her motto became famous now in the US “Sell cheap and never lie”.
Isadore and rose Blyumkin family photo of 1939. Photo: omaha.com
In 1950 her husband died, Rose Isadore. Support the businesswoman was the son of Louis. He fought in world war II, received the medal of the Purple heart for the battle of the bulge. And then came back and energetically took over the family business.
The efforts of the mother and son enterprise flourished. But soon because of the Korean war sales began to fall. There was a situation when rose could not pay suppliers. She took a 50 thousand dollar loan. And lost sleep over, because everyone thought how to get them back.
Finally she came up with the idea to rent a large building of the Omaha City Auditorium and to fill her with sofas, tables and stools. Then with my son they came up with the creative for the time the advertisement posted in the newspaper.
Sale brought together so many people, how many would not have gathered a circus. In three days, Nebraska Furniture Mart sold goods for a quarter of a million dollars. “And from that day I never had a penny”, — said rose.
Gradually “Mrs. B.” was the name that I knew of in Omaha everywhere. It has become synonymous with cheap furniture discounts. People came to the shop at different stages of his life: when he married, bought a house, had a baby, received a promotion.
Portrait of a future legend. 1970. Photo: nfm.com
Blyumkin buying goods in large quantities, cut your expenses and resold with a markup of 10 percent. Rose never got to where it did not have knowledge and expertise. But in fact, what is understood, decisions are made instantly, never looking back.
Just shook hands
By the early 1980s, rose and Louis Blyumkin has built the largest furniture store in North America. Under one roof on three acres of land were sold products more than $ 100 million a year. Each year the volumes grew.
Those once-thriving shopping here at home, which initially competed in the rose disappeared. Was trying to “catch” other retailers, but my mom and son each time fought off the invasion, coming up with incredible plans discount campaigns.
The store gained new customers. They started to arrive already from Iowa, Kansas, Dakota… Store in Omaha with a large car Park itself turned into a small town.
In 1975 a devastating tornado destroyed the new store of Mrs. Bi. Photo: nfm.com
The rose became known as “Mrs. B.” even in the family circle. She would get up at 5 am, eating only fruits and vegetables, without touching alcohol. And gave all of myself to the business. Despite breaking the gray hair, ran around the store with the energy of a young woman, commanding and chopping the air with his hands.
But little by little she began to take. Rose had two surgeries, replacing both knees. She began to ride tricycles on the map for Golf. Gradually all operations in the store began to go to Louis, though she is still and was in charge of the manufacturing Department carpets.
And in 1983, Blyumkin sold his business of the company Berkshire Hathaway’s. On this occasion Warren Buffett came to the store himself. The transaction did not participate, neither the lawyers nor attorneys. There were no audit has not been done any inventory. They just shook hands. “We gave Mrs b a cheque for $ 45 million, and she gave her word,” — says the billionaire.
Buffett by the time was filled to the rose great respect. He became friends with her grandsons Ron and IRV, which would soon go right management. He wanted to buy the store, and besides, to do so was still Blyumkin.
They just shook hands. Rose blumkin and Warren Buffett. Photo: nfm.com
In the face of the Rose is a billionaire not just added to her collection of interesting people of another character. Something other than her unshakable will, stories of hardship and strength of character aroused in him a reverence, said in a biography.
With a bouquet and chocolates under my arm
Over time, family relationships Blyumkin came to a complete disorder. The rose has always been tough to communicate, often scolded employees for the slowness. She invested in the business all the time and expect the same from others.
Now, in the presence of customers, she was reprimanded his grandsons, Ron and IRV, calling them idlers. And gradually — it is clear why the boys had stopped talking to her.
Finally, when the grandmother turned 95, they cancelled one deal on carpets. And that was the last straw — offended relatives Mrs b was forced to leave the company “to retire.”
It was unpleasant, difficult time. She told reporters a lot of hurtful words against their relatives who were now headed by its former offspring. Got including its current owner Buffett, who decided not to take sides in this intra-family conflict.
But to sit at home rose was bored. Then “retired” and decided to prove I was worth something. Reconstructed belonged to her warehouse, which was located across the street from Nebraska Furniture Mart, and opened a… the competitor!
Mrs. B. in 1997. She worked in the store until his 103rd birthday. Photo: nfm.com
And no matter how small at first, nor was a new company Rose — Mrs. B’s Clearance and Factory Outlet, dollar for dollar it is still the beginning to discourage buyers from the monster across the street. The war began-owned Furniture Mart Parking…
Finally Louis had had enough. He wrote his mother that there is no sense to compete with each other, and that it is better to join forces. And then Mrs b called Buffett, admitting that she was wrong: the family is still more important than money.
With a bouquet of roses and box of chocolates under his arm, Buffett came to blyumkin-senior guests. He gave the entrepreneur 5 million just to use her name. And, getting possession of the new business, added to the clauses are the following: rose, never, under any circumstances can not compete with them and with their relatives.
He was in office even after 100 years
“I regret not having done this before,” Buffett told reporters later. And it was not simply a desire to ensure peace in the family. Warren admitted that if blyumkin celebrated 120 years, he would then be its competitor, because it is fraught.
Today the company has 4 large stores in different States. This was in Texas. Photo: nfm.com
Soon blyumkin, the eldest, along with Buffett and several other businessmen were inducted into the Hall of fame at the Greater Omaha Chamber of Commerce. And on the 100th anniversary of the Rose Warren for the first time in my entire life. And gave a million dollars for the reconstruction of the theatre, which it did.
After reconciliation with the family of rose blumkin continued to lead the carpet sales at Nebraska Furniture Mart. And did it even long after its centennial anniversary. She died in 1998 at the age of 104 years, becoming a legend of American business and remained in it’s history as Mrs. B., the Queen of retail.
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