Editor Tom Perić sat down with distributor Mike Riley, President of Plymouth Meeting, PA-based Riley Sales.  Mike, who is known for a sense of humor and flamboyant summer shirts (regardless of the season), talked about taking over the family business, how to grow the company and how to handle supply chain issues.

1.    What kind of car is in your garage?

24’ Lincoln Aviator. Nice ride.

2.    What makes you completely relax?

When I’m in the mood, I slip into a sensory deprivation tank for 90 minutes. Laying in 12 inches of 98-degree water that has 1,000 pounds of salt, in complete darkness, it makes your body buoyant; the water is the same temperature as your body. You can’t hear, feel, or see anything. It lets your mind go places you never knew it could.

3.    What is your background that most people don’t know about?

I was an underwear model. A good gig. 

4.    If you weren’t in the HVACR business, what would you be doing?

I’d still be a model on the senior circuit.

5.    What prepared you to take over as president of Riley Sales?

I grew up in the business with my father, Tom, and we just did what we felt was right for our employees and customers. No formal business plan, just get the products to the customers when and where they want them. Work hard, stay busy.  “Shift!” … That means find the next gear and get the job done.  One year, we got a Christmas card from Z and M Sheet Metal, one of our duct suppliers. It was signed Joe Zivic, Founder and CEO, Scott Zivic, President. A week later, my dad comes in with some paperwork for me to sign making me the President of Riley Sales. I said if I’m President, what are you? He replies, “Founder. There can only be one Founder!” He loved that title. I asked if I had any new responsibilities or perhaps a nice raise with my new title. “Nope, but you’re doing a hell of a good job!” That’s how I became President of Riley Sales.

6.    What is the size of Riley Sales?

We have nine locations supplying eastern Pennsylvania, southern New Jersey and northern Delaware.

7.    What was your biggest success in the business?

Helping to start Blue Hawk, the largest HVAC co-operative in our industry. Blue Hawk ensures that hundreds of  independent distributors across the country can compete, thrive, and prosper today and in the future. We work together to help each other succeed.

8.    What was your most memorable failure?

I have made a lot of mistakes. Mistakes that have cost us profit and growth opportunities. Failure to me means giving up. I have never given up in business.

9.    What is the secret to your business growth?

Hiring well, promoting from within, giving the team goals, believing in them, giving them assets to achieve those goals and getting out of their way.

10.       Where do you hope to be in five years?

Enjoying life in the USA where the cities are being rebuilt from the inside out. Where manufacturing and industries that went offshore are returning to America and building factories that provide well-paying jobs with excellent benefits and opportunities for equity shares in their company for their employees. Corporations that have their share prices rise on profitability as well as their customer and employee satisfaction, not by beating a Wall Street analyst’s quarterly prediction. Where the city housing stock in our country is being replaced with affordable, energy-efficient homes built by developers and contractors that support American, independent, construction supply distributors. 

11.    How would you describe yourself in 10 words or less?

A fun-loving person that you can trust.

12.    What’s the best part of operating your company?

Helping my employees and customers grow and become successful.

13.    What’s the worst part of operating your company?

Being taken advantage of by people that you trusted. 

14.    If you had to do it over again, what would you do differently?

Nothing. I’m having a good time. Maybe one more year modeling.

15.    If you have a vexing business problem, who do you call first and why?

I will go to my management team first. Also, I belong to Vistage, a CEO peer group organization. Our group helps each other out with issues, gives suggestions and holds each other accountable. If I’m still perplexed, I ask my mom. She helped start the business with my dad, though she was never made Co-Founder. 

16.    As a wholesaler, what one message would you give to every contractor who walked through your door? 

You have found your HVAC home. No need to go anywhere else. Count on us and we will supply you with everything you need to be successful. “If we don’t have it, you don’t need it!”  One of the Founder’s slogans.

17.    When giving advice to someone entering the industry, what would you say?

Stay small and profitable. Treat and pay your team well. Bank some profits for those tough years that will come. Know when to shut down when you are at home so you can spend time with your family.

18.    What’s your business philosophy?

Dream Big, trust yourself and your team, and Shift!

19.    What role does communications play when dealing with manufacturers or customers?

We have transparent communications with our manufacturers and our customers as to  what the lead time and product availabilities are. By having the facts, we can manage our inventory and our customers’ expectations.  They need to schedule their jobs and communicate with their customers. No BS.

20.    Supply chain issues are affecting every company. How are you managing this?

Be loyal to your vendors and customers. Don’t constantly beat up your suppliers for every last nickel, don’t shop and drop manufacturers and constantly change product lines. They will respect that and keep product coming to you rather than the distributors who beat them up all the time. In turn, make sure you have product for your loyal customers. Know what projects that your customers have coming up and make sure you have them covered. Most importantly, honor relationships.