In this episode of the Arkansas Inc. Podcast, Ted Herget discusses founding Gearhead Outfitters, his inspirations for the company, the challenges of entrepreneurship, and doing business in Arkansas.

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TRANSCRIPT

Ted Herget:

Hi, I'm Ted Herget, and I'm the founder of Gearhead Outfitters, and we're listening to the Arkansas Inc. Podcast.

Clark Cogbill:

Welcome to the Arkansas Inc. Podcast. This is Clark Cogbill. I serve as director of marketing and communications for the Arkansas Department of Commerce. Outdoor recreation is a big deal in the state of Arkansas.

We have beautiful outdoor amenities that are known worldwide. We have best in class mountain biking, fishing, hiking, canoeing, kayaking, duck hunting. We have 52 state parks, 13 major lakes. There's just an endless amount of things to do when it comes to outdoor recreation and activities. Arkansas State Parks attract 9,300,000 visitors annually.

Today, we have a remarkable guest who's also passionate about an outdoor active lifestyle, Ted Herget, the founder of Gearhead Outfitters. Ted's journey began in 1997 in Jonesboro, Arkansas where he set out with a simple yet ambitious goal, to bring the thrill and adventure of the mountain lifestyle to his hometown. What started in a friend's living room has now grown into an impressive nationwide brand with 20 stores across 7 states, including the recent acquisition of Summit Canyon Mountaineering. Gearhead Outfitters is more than just a store. It's a mission driven company dedicated to helping customers live active, fulfilling lives.

From its relaxed shopping environment to its specialized inventory and personalized service, Gearhead aims to build lasting relationships with its customers and support local communities. Ted and his team, including his wife, Amanda, are committed to quality outdoor products, sustainability, fair business practices, and philanthropy. So whether you're a seasoned adventurer or just looking to embrace a more active lifestyle, Gearhead Outfitters has something special for you. So we're very excited about, our guest today, Ted Herget. Welcome to the Arkansas Inc podcast.

Ted Herget:

I'm excited to be here, man. It's an honor. Appreciate you. You bet. You bet.

So, Ted, you know, I live in Little Rock. I'm familiar very familiar with Gearhead Outfitters. When I visit the promenade in Little Rock, I love to go. Maybe I'm waiting to be seated at one of the restaurants, and I love to go into Gearhead Outfitters, which is a few months ago, I think, moved from, moved into a much larger thriving location within the Promenade. That's just one of your stores.

Let's start about tell us a little bit about yourself, Ted, and then how and why you started Gearhead.

Ted Herget:

Oh, man. There's 50 years of stories. I don't know if we have enough time for that. Now it's a simple I mean, it was a simple I mean, simple story quick because came out of high school, went to issue, lost my mom passed away when I was a when I was a freshman in college, kind of was that lost soul for a bit, and a friend of mine invited me to come to Colorado and spend the season.

And so, man, I did. I packed my stuff up and went west, and they realized I don't wanna live there because it's cold as hell. I mean, it's like those winters are brutal. But there's just this there's a common theme of the mountain town. Yeah.

I think this is mid nineties, and it's just I mean, the mountain attitude, the mountain lifestyle, there's just something special. Like, if you're walking down Main Street, Breckenridge or Telluride or whatever, it's just Yeah. Old guy used to work for, he always said, 2 things will make a man heard. And he was like, attitude and gratitude. And I feel like this people that are immersed in the outdoors because they're forced in the outdoors.

You know, mountain towns are really tight generally and there's not a lot of real estates. You're focused. I mean, you're meeting your customer every day or meeting your neighbor every day. So you're constantly in conversation and you're held accountable. So it was just like everybody had a smile on their face.

If there was an issue, you dealt with it right then. There was not, you know, you come up back to Jonesboro, you close your garage door, go to your backyard and moan about what's going on. But there, it's just everybody was happy. I mean, it was just a cool, everybody's dogs were off leashes and it was just kind of a like, man, I like this. And so, but I hated the weather.

I mean, you know, I was broke. You worked 2 jobs. Just the one day off you get, you do laundry and things like that. But so, man, coming back to Jonesboro, you know, you just our main street reminded me of Main Street, Breckenridge and a buddy of mine just kinda took on the you know, it's taken us 25 years to be an overnight success with Right. The revitalization of Jonesboro, but it was like, man, we've got Main Street Breckenridge right here.

So, it was more trying to bring Yeah. I mean, if it's the lifestyle or the attitude, you know, that was kind of what I sought, you know. And it's, man, it's just special. I think everybody that goes and travels, you know, you take something away from wherever you go and the idea is, man, you don't have to leave it there. You can bring it back and apply that skill set, you know, where you are.

And I'm a Jonesboro of Northeast Arkansas legacy, born, you know, and I just didn't wanna leave. I don't wanna leave, you know. And so it's kinda like I'm I'm gonna make my town as cool as I can. That was pretty much the MO. So So that was kinda the heart of it.

Clark Cogbill:

It wasn't that you necessarily said, I really wanna start a retail operation. It sounds like you wanted to take that vibe of Breckenridge and bring it to your hometown of Jonesboro.

Ted Herget:

Yeah. 100%. It was 100%. Just walking, talking. I mean, just rolling down Kavanaugh. You see how many people out walking and Yeah. Dogs.

I mean, it's just cool watching like now you see all the infill develop. Everybody's starting to and what, you know, what they're doing. You're starting to see a sense of community. And, you know, and and again, what I think in the Rockies, you're forced to have that sense of community. You can't sprawl and keep sprawl and sprawl and then sprawl. And so, it's just everybody's forced to live with each other, you know? And I think, and at the end of the day, you end up with a You get to communicate.

And then, so, you start you can understand what's going on in everybody's lives. I mean, good, bad, indifferent, it's just kinda cool to be able to Yeah. If you have an issue, deal with it. Like, it's you don't get to run away out to drive the cabin and Yeah. You know, go home and hide, and it's like you're forced to face face it. So That's right. Anyway, it's just it's just happy. I mean, it's just real and authentic. And so, I mean, that's but, yeah, end up yeah, opened the store.

I went through ASU, graduated accounting degree, accepted a job with Deloitte. So, did the, like, the CPA thing, and, man, they said start January 1 or start September. And I'm like, man, I've been working in a factory. I've been grinding. I'm exhausted.

I just wanna be a kid. You know? It's like, man, can I not just have, like, a I want a 9 month, you know, I wanna race bikes? I got a $10,000 signing bonus. I'm like, man, I'm rich.

So it's like, this is gonna be fantastic. So and that lasted all for about 48 hours. And I'm because I was I already had Gearhead Outfitters online. You know, I was, of course, way before Amazon, all these guys, you know, but I thought there was no future with that. That's how smart I am.

But ended up opening a little store, $300 a month, and let it run for 9 months and told Deloitte I'm staying and I'm gonna be a bike mechanic and hang out. And so that's what it's essentially how the store was created. It was what was was that.

Clark Cogbill:

I’ve got to say, Ted, you and I don't know each other well, but I would not have pegged you as, accountant CPA. Yeah.

Ted Herget:

Well, here, the truth is I never passed the CPA. I didn't fail it. So that's a big thing for anybody that's ever sat for it. So, like, I didn't I'd my first test. Oh, yeah, man.

That was I always I mean, my cousin's an attorney, and he passed all three parts, but the, you know, the the legal, the first one. And so no. It was it was brutal. But, man, it was I mean, in in Deloitte, great company, you know. And every once in a while, you know, I'm always like, I wanna I'd have been a partner by now.

My wife would have been a lot easier, but, you know, you just whatever. And I'll look back. And I don't wanna do anything.

Clark Cogbill:

When you were in, growing up, or in at ASU, you didn't necessarily say to yourself, I'm gonna start a business.

Ted Herget:

No

Clark Cogbill:

So it came from so you went down the accountant route, worked for a great firm, but you went to Breckenridge and you and you something hit you.

Ted Herget:

Well, I worked retail. I worked in an outdoor store in Breckenridge, and a family opened a little outdoor store in Jonesboro and I got hired there. So I worked there and then went to school and worked in the factory. I mean, you know, I had 4 or 5 jobs. And my parent my buddy lived with my buddy's parents, you know, they kinda took me in and kinda forced me to finish school. But anyway, so I got to see that there was a market in Jonesboro.

And then when they closed their store, you know, I just I was a senior, you know, by then. And so I just kept relationships open with the reps and started I put it on Yahoo store back in the day. So I was hustling MSR stoves and things like that. You know? Yeah. So, like, really in, like, 96, I think.

Clark Cogbill:

How did you open it up? Did you did you start it in in a garage?

Ted Herget:

No. I was just on a run, and it's man, there's a little Forrester sign in this little old wooden building right just right down the street from where I grew up on Flint Street.

And it said, you know, and I had all this stuff in my buddy's, you know, living room and just called the old man, Bill Lester, nicest, firmest handshake. I mean, godly, neat, neatest guy. But handshake deal, $300 a month. And I'm like, you know, you just scrape it right. Yeah.

So quick, you know, 8 months was when I'm supposed to start. So worst I can use lose is 24100. And all my buddies just we got their tents and their bikes. We just we decorated this little 760 something square foot building to make it look like an outdoor store. And then I just, man, had a $1,000.

And I just kinda just grind it. I mean, I'd come down here, and I'd would take their used bikes to Jonesboro, and I'd they'd give me a 10% cut, so I had no costs. You know, I was just. You come to Little Rock and go to go to Chainwheel, and Chainwheel is a high end, cycling shop..

And they took trade ins. So I would take their trade ins back to Jonesboro and, you know, so I mean, it was a so you just put all the money, you know, DJ'd all the weekend. You know, I mean, I like I was open 11 to 6. So, you know, it's like I worked for the State Farm, kinda mold.

Attitude and gratitude will make a man. Speed and greed will kill a man, which is fact. There's just some, you know, simple little things. But anyway, just worked, you know, 3, 4 jobs and put all the money back in the store. And, you know, I'd have friends come help me, but, you know, didn't hire my first employee for like 4 years.

I mean, this is Oh, goodness. People don't remember that. It was just a long time ago. And so Yeah. Then then the main redevelopment started.

And so just old guys like I'd save some money. I was 24, 25 by then. Had, you know, whatever, like 20, 30 grand in cash and I thought I was rich. You know, so I bought a building downtown Main Street in the middle of this this upcoming, the pending redevelopment.

Clark Cogbill:

In Jonesboro?

Ted Herget:

Yeah. And that's that's when I met Amanda. When we moved to the new store, we built a loft upstairs and we lived up there. So she came on board. We got married right when we opened the store downtown.

Clark Cogbill:

You lived upstairs from the store?

Ted Herget:

14 years, you know..

I mean, through the whole, like, did the work myself. So, you know, before the water heaters would work, the electric you know, I'd go up there and turn the water on, take a cold shower, you know, go down and work. And it's just but you just put every penny back in that thing. And, you know, and that's it's you know, do you put it in the stock market or do you put it in yourself? And it's kinda like that's you know, an old guy just said, you know, do you know the CEO of Walmart?

And I'm like, yeah. Sam Walton. He said, you know him. I said, no. You know, do you know the CEO of GE?

I'm like, yeah. Jack Welch. But you know him? No. He said, you know the CEO of Gearhead, which is laughable.

I mean, I've never I've never had a title. I mean, just to say founder makes me feel like, you know Yeah. Technically, I am. But it he just said, invest in yourself. He said, and man, I've taken that and I've never checked up.

So it's like if we that's really how these stores open is, man, we'll develop the talent, you know, and then we'll invest in, you know, our people, you know, essentially.

Clark Cogbill:

You and I were talking just before we started recording, and I was telling you about our recent interview with Scott Ford who started WestRock Coffee.

Ted Herget:

Legend.

Clark Cogbill:

Scott was previously CEO of a Fortune 500 company called Alltel. And I asked him, you know, how would you compare those two things? And he said, being an entrepreneur at any level is exponent I'm paraphrasing, but it's exponentially harder than being a CEO of a Fortune 500 company, and that was pretty stunning. But I mean, you know, there's a lot he talked up too about the risk and about putting his personal finances at risk for the good of the business.

It sounds like in those early days, it's just it's every day, and that there's financial risk. And how do you power through that until you get to some feeling of stability?

Ted Herget:

God, it's a great one. You know, one of us when I looked at when you sent me the link, I was like, man, how am I gonna follow a guy like Scott? I mean, like, wow, that's an honor. I mean, I think it's just I don't know if it's like insanity or tenacious. I don't even know how you describe it, you know, junkie. I don't know exactly.

Gambler, I don't, you know, I don't gamble. But it, I mean, you have to be you just gotta be wired for pain and wired for risk. And, man, wire I mean, it's just like, I don't again, I'm not a big gambler. I don't know what makes those guys tick and feeds that feeling.

But I think it's the game of just you've got an idea, people will say you can't do it. And you're like, by God, I'll come hell or high water. I'll I'm gonna do it. I'm gonna outwork you. You know?

And a kid asked me the other day, he's like, how'd you get an idea or whatever. You know, how do you start a business? I'm like, just find just model, find another business, but just do it better. Like, you know, and you gotta think this this day and age, this would've happened. I mean, I just took, you know, in hindsight, you know, I've just taken when what I can continue to lean on is, man, I just wanna bring that old school outdoor lifestyle, the old store old outdoor store vibe feeling. Yeah. But just kill it with service and just kill it with the product. And I don't know, but yeah, man. To make $10, you gotta gamble a $100, you know, or gamble $200 to make $10. You’ve got work it. It’s a hard, hard work.

I don't I don't know Scott. I know a lot of the stories. I I don't know what his conviction was with the WestRock thing, but he doesn't lose.

He talked about we can't be afraid to lose. That's it. And, so, you know, it's everybody loses.

I mean, you just have to pick get back up and keep going. I mean, that's just that's life.

Clark Cogbill:

You know, it's interesting you use the phrase the term junkie.

Well, there's an organization, I don't know if you're familiar with it, in Northwest Arkansas called Startup Junkie, and they support startups. They support entrepreneurs. They support people with just an idea.

Ted Herget:

Cool.

Clark Cogbill:

Actually, the Arkansas Economic Development Commission partners with Startup Junkies. But, we should introduce you sometime. I mean, I I know they would love to have you on their podcast. They do a weekly podcast, but it's very interesting. They talk to entrepreneurs and a little plug for Startup Junkie there.

Ted, part of what you're passionate about, I know, is just in your own personal life, outdoor recreation. I mean, I know enough about you to know that you're an active guy. Can you tell us a little bit about some of the outdoor activities that just you love doing your on your own?

Ted Herget:

Oh, you know, it's just I think just being outside - you just get that endorphin rush. You get that I mean, there's just a feeling. I mean, everybody's like, oh, do you love riding your bike? Do you love running? I'm like, no. I mean, I don't. I don't love it.

But it's just, I love to eat and I love to drink beer and I just don't wanna gain any weight, you know? So it's just kinda like, and I can't sit inside in the gym. I'll go a year without riding a bike, and I'll go a year without running, you know? Or or I might, you know, do both every day for 6 months, you know?

It's just and I think that's where somebody gets people get jammed up in the weeds. I'm like, look, I just find something that's fun. I mean, if it's if it's hiking or doing whatever, you just gotta move. I mean, it's like, get your body. Keep it in, like, perpetual motion.

Clark Cogbill:

Do you surf?

Ted Herget:

I mean, well, I mean, yes. Technically, I would call it surfing, but everybody on the sidelines or on the beach is like, that poor guy looks so bad.

You know? So but, I always have teachers when I goI'll start 5 days 5, 6, 7 days a year, you know? So I always have, you know, somebody out there coach helping me just because I just wanna make the best of my time. But I've caught a I've caught a few waves.

I mean Yeah. I've gotten the crap kicked out of me way more than I've. Yeah. But it's just a neat I don't know. It's like just the art of that.

I mean, and the skill set of these guys that sit there in their grill. It's just the most beautiful. They sit on those boards and they're like, just sit here, wait, it's coming. And I'm like, what the hell are you seeing? Like, I mean, you're just looking at the horizon going, how do you what are you seeing that I don't see?

He's like, just give it 30 seconds. I'm like, the hell's coming in 30 seconds. And it's you know, lo and behold, he pushes you over. He's like, alright. Start paddling.

I'm like, where am I going? And, anyway, and, like, wave pops up, and then you catch it. And it's like, that is so badass. Yeah. It's just beautiful.

Clark Cogbill:

It is incredible to watch. Well, you know, I was telling Charles Wyrick, one of the guys who runs, Lucky Dog Audio, where we're recording our podcast. We record most of our podcasts here. And I was telling him who our guest was today, and he goes, oh, I know Ted. I've ridden with Ted. You’re known as a little bit as a rider.

Ted Herget:

I've been around. Yeah. I mean, it's it's crazy. It's, like, 30 years of it. 30 something years of making my rounds - you meet a lot of people. It's really cool. You know, outdoor recreation's a big deal in Arkansas.

Clark Cogbill:

Do you, find that, the people who visit your store are native Arkansans who love to be in the outdoors? Do you find that people come to Gearhead from who are visiting Arkansas? What kind of what how would you describe your clientele?

Ted Herget:

All the above. I think a lot of times, like with our space, you know, you get you know, I'll have people say, well, Ted, I don't climb mountains. I'm not your customer. I'm like, listen, dude, I wanna sell you everything.

What the outdoor space is, what they're known for is comfort and quality. That's it. You know? And I always say it's value. So when somebody you know, if you walk in and buy a Patagonia jacket, don't care where you're going with it.

Yeah. It's a value. It's $200 and it's got a lifetime warranty. I mean, you probably have one that's been there 10, 15 years. I mean, again, being at this game for 30 years, people, I wish they didn't make it so nice.

You know? I mean, it's just it's comfort, man. Comfort's changed. I mean, the lifestyle, the clothing, how everybody dresses now over the last 20 years. I mean, thankfully, that's, you know, I've gotten to kinda ride that wave.

But I've always 95% of the stuff we sell is more aftersport. You know? And it was so, again, you ride your bike. What are you gonna wear when you get off?

You know? Slip on a pair of Merrells or slip on some Chocos, Birkenstocks, and slip on your Vuori shorts and a Gearhead tee. Whatever, man. Like, I want that. I want to say I wanna sell you everything. Sleeping pants. It's like Saks makes them. Here's all my shingles plugs. You know, it's like we have the best underwear, the best I mean, sleeping pants. It's like it our industry has nailed it.

Show me another space in retail, man, that sells you the highest quality of stuff and with, you know, the people that would just give a damn. You know, and I don't know if I can you know, people say, what do you do? I'm like, it's just or what do you sell?

It’s cool people selling cool shit. I mean, that's what I is essentially what Yeah. Cool stuff, whatever I need to do. Yeah. It's high quality for sure.

And people can help you through it. And it's unless you've got a lab puppy that chews a shoe or jacket, you know, it's like most of the stuff you buy. Yeah. It's lifetime warranty.

It's just that the the space is just authentic, and we're trying to continue to keep it authentic.

Clark Cogbill:

You’re not all things to everybody when it comes to clothing or gear. So how do you decide, you know, here are the things I'm going to sell in my store? How do you make that decision of, I'm going invest in Patagonia? I'm going invest in Birkenstocks?

How do you make that decision? You know, Mizzen and Main, that's one of the you have some dress shirts that are activewear dress shirts that I covet. How do you make the decision?

Ted Herget:

At the end of the day, I don't, man. The last thing I was only thing that I've ever added value was getting that  20 something years ago. And I moved from the bike shop more into a shoe store. I started realizing, hey, this is pretty powerful. And that store is kind of what they are who kinda tag this whole, you know, like fuzzy money slipper. They tag this whole after sport stuff, you know.

So, again, I'd be on my bike rides and come back. I I've got buyers that are the best in class. Like, I have no idea how they find this stuff. I just go in and shop. I mean, I help them with leases.

It's like parenting. At some point, you gotta let go. And it's the exercise for me, me being that micromanager. I had to be involved with everything, man, working 6, 7 days a week. It was a thing to do and brought this thing to life. Yeah. I've got guys that work with me that are 50 and kids that are work you know, that are 16. And it's like, my 12 year old has better ideas than me. My 19 year old has taken like taken over all my rules to everything because man, I'm just like, I give up, you know?

And I think when you give up, I mean, you still, you cast the vision. You don't change the value, but you get everybody else's input. So where does that stuff come from? I have no idea.

I could tell you a few people that are responsible for it, but I don't know how they I don't know how they curate the products that we sell. No idea. Well But I love shopping there.

Clark Cogbill:

Part of what we want to do on the Arkansas Inc Podcast is talk to successful business people in the state, including entrepreneurs like yourself. And part of this is other entrepreneurs or aspiring entrepreneurs or small business owners getting pieces of advice.

You spoke to something there about, you know, you started this thing with your own bare hands and sweat and blood and tears. You and your wife made this thing what it is. How do you let go and then empower people? Because I think you're saying that's that's something that you have to do. Right?

Ted Herget:

Yeah. I think that's where I see, you know, a lot of folks that fail, you know, and it it's and I would I mean, I do. I relate it a lot, like, to parenting. I mean, parents try to overparent. I'm like, go and let your kids fail. It's good analogy. Calling me going, hey, my kid wants a job. I'm, like, don't no. Let your kid call. Like, that's like, don't do that. Like, that is not helping them, you know? And so but it took me I mean, it took me 20 years, man, to figure it out, really. And when I finally started letting it go, and this is and it's really this I mean, this is a 100% fact. The more I'm disengaged in it, of course, I'm always there, you know, and I'm always you know, and I'll take 50 calls a day regarding the store. But they take ownership in their actions.

We celebrate the victories and we learn from the mistakes, you know. And it's like, you can't make all decisions all the time. The culture is, man, everybody's buying in, you know. And I think and everybody in the organization has an idea, you know. And, man, I'm quick to share it, but then I like to watch how my team takes that idea and implements it, you know?

You've got like a flat, you know, line organizational charge. Like, yeah, man. If anything, it's inverse, you know? People call me boss man. I'm like going, drives me nuts.

I'm like, guys, like, I work for you. I've got to make sure your check doesn't bounce. Like, that's my responsibility. You know?

And in retail, it's a I mean, it's a brutal game. Brutal. It is. You know, and when it comes down to like that whole Black Friday thing, man, that's legit. It's like, man, you lose money all year long, but you gotta keep the smile on, you gotta keep redoing stores and buying more product and buying more you know?

And it's just and thankfully, you know, again, I mean, we've been we're very conservative. You know? I've never gotten ahead of my skis as well. I mean, take that back. I mean, gotten ahead of my skis a lot. I might be ahead of them right now just a little bit. But, generally, it's that December, you know, you can you can exhale come December 31st. Okay. Then January 1, you're like, you got another year?

But it's but everybody knows the books. Like, all my team, I mean, they they know every store sales. They know everything. I mean, we don't hide anything from anybody, you know.

There's everybody know they're a part of an ecosystem and everybody adds value to it. It's really cool.

Clark Cogbill:

Okay. Part 2 then, how have you figured out how to hire the right people who you then empower to make these decisions? What is your hiring strategy, especially when you're looking for somebody who you're leaning on as a leader?

Ted Herget:

You know, that's a great question. I mean, it generally, man, to sum up quickly, it's kind of like hire the attitude, train the skill. Going back to my CPA thing. If we, you know, if we get shift leads and assistant managers and people going into the management side of things.

And so, that strength finder just talks about I forget what it was. 32, 33 strengths. We all have weaknesses, man. So, I mean, all of us in the room today will have different skill sets.

Right. Me being an accountant and sitting behind a computer would have been not healthy for me. That's not that is not my I loved the math. I mean, accounting is just arithmetic. It's easy. I mean, everybody is so scared of it. I'm like, it's basic math. You know, if it doesn't add up, you gotta fudge a number, make it up, and make it, you know. But it it's you build on people's strengths and then you put them into a spot to succeed, you know. And we and it's when I had a guy that helped us, this is probably 10, 15 years ago, helped us implement that. And I fought it, you know? And I mean, back 15 years ago, he's like, Ted, you need to get the hell out of the store. You just go be Gearhead, Ted. Let these guys do it.  You know, I'm back there throwing trash cans in the alley cussing. Oh, yeah. What do you know? Blah, blah, blah. You know, like, this guy retired at like 35, you know, Fortune 10, you know?

Yeah. What does he know, you know? Right. The fact is he was right, you know, but I was too stubborn to listen. And it's that's part of maturing and trying to let go.

But it it's that strength finder is an interesting way to coach people. You learn how their brain thinks. It teaches you how to manage. And then, you know, more importantly, you put them in the right spot. You know, back to the I mentioned Jack Welch earlier. You know, he'd fire the bottom 10%, whatever, every year or 2, whatever. And everybody thought, you know, the street, you know, CNBC, everybody just busted his, you know, ass over the thing. It's like, if you're in the bottom ten, I mean, you're this was before a lot of this information was out there. It's like, you're not in a spot where you're not supposed to be there, you know?

Find another job. I mean, you're going to be more successful in another position. You know? So, I mean, that's kind of old school, but it always resonated with me.

But the strength finder gets ahead of that. We're not having to fire the bottom 10 percent. There's no fear coming to work. You know, it's just like, hey, man, look, this is who you are. I mean, when you get your strengths back, you're like, yeah, I don't think you're suited for the spot. Or man, we can't wait to get you and train you into the spot.

I'm not good at is sitting still. I mean, you've got me here, man. It's like I pounded a Red Bull because I'm like, alright. I mean, I'm going to stay focused, and I'm going to sit here. And, anyway, I think that's I think that's how you do it.

I mean, it's just it's you help people learn who they are. You coach them to into the direction where they need to be going, you know. And we want our staff to always be better off. I mean, you know, a lot of them I've got lifers with me. I mean, couldn't do without them, you know.

And I know a lot of these kids, it's going to be their job in college or whatever, and I'll run into them. I mean, half time, I don't know when you're the next. And I was like, oh. And they're like, ah, I used to work. I'm like, well, how you doing? Love it. It was the best time of my life. I learned so much working for you guys. That to me is a win. Don't know his name, but he's happy in his career and he said, Man, I'll get to apply those skills everywhere I go.

We continue to continue to massage all these systems. It's like I said, We're very fluid. Which means we don't know what the hell we're doing. You know, we're just like we've got a pretty good idea, but it's like we know that we just keep it's relentless, you know. We wanna continue to get better and ultimately it's going to be the best, you know. It's like my mom when I was a kid, she's like, baby, you know, I want to be a professional skateboard. Baby, be the best at it. I wanna be a dentist. Be the best. I wanna be an architect. I wanna be, you know, I'm like a poster child ADHD kid. You know?

Clark Cogbill:

And so, you know, doing this is like, why not be the best? I mean you know, that service, that experience, that's a big part of what you do. You're very committed to it. And, I mean, it makes me think of, like, Chick Fil A. I mean, Chick Fil A, there's a lot of places to go buy fast food, but Chick Fil A does it differently.

You just get that vibe when you deal with Chick Fil a, all the people are trained correctly. Yep. They have good interactions, and so it makes for a more, you know, enjoyable experience. You are committed to that. You are committed to all your people being well trained and empowered and ultimately making that the best possible experience for your customer.

Ted Herget:

So, I mean, is that not how you I mean, to me, it's simple. I mean, it's how you wanna be treated. It's like treat people the way you wanna be treated. You know? I wanna walk in where people know what they're doing.

I need help. Like, if I'm walking in somewhere, it's like, man, help me. Does this look good? No, it looks like crap. Do I look I mean, okay. I mean, just it's right. I just think business is so simple and that people over complicate it. You know? You just You take care of people, the numbers take care of themselves. It's a simple deal.

Again, I've been at this almost 28 years, like I said, growing it out of my pocket. We've never taken on money to help, you know, spur it. We've had opportunities pop up that we've jumped, you know, that we've  chased and it's not and it's a team, you know, we've it's not Ted out there going, I wanna grow, grow, grow, grow. It's just it's more like the Grand Junction in Glenwood, the Colorado expansion.

That's my chief my HR girl, ops girl that that's moving out there. And she's like, Ted, there's an opportunity to buy these. I'm like, well, they're yours. I mean, go for it. You know?

So we worked the deal, got it, and we're rebranding them. Actually, as of, I think, today, they'll reopen.

Clark Cogbill:

Ted, you're talking about the recent acquisition of Summit Canyon Mountaineering. So tell us how that happened and what that does to the scale of Gearhead?

Ted Herget:

Well, it happened with just again, Ashlyn, one of my key people, her in-laws are from West Colorado. So, you know, we always like best practices. So for traveling, you know, I always like to look at stores and see what they're doing.

Are they doing better? Merchandise, anything I can get, you know, out of it. And so she was in Grand Junction and went into Summit Canyon. And she's like, I could quickly identify who the owner was. She's like, this guy's eyes were like as big as silver dollars running around. So she just kinda struck up a conversation with the guy. Anyway, I mean, somehow, they got to, would you ever be interested in, you know, getting rid of it? I mean, you know, getting out of it. He's you know, the guy's like, yeah. I mean, this is hard. The guy came from I think he came from the steel business. I forgot what he did. But not he didn't come from a retail brag background. You know, so that guy was working 6, 7 days a week. You know, somebody calls in and he's covering, you know, and it's it's just hard.

I mean, it's like especially you got those guys had 2 stores and like 90 miles apart. That seems miserable to me, you know? And it's like, so anyway, she I mean, we just talked her through with them and got a deal done. So she moved out there. So now she's kind of taken that on.

I mean, it's cool for us to have a footprint. I mean, that's what it's kinda neat. Like, back in Colorado, trying to, you know, just reinforcing the beginning mission. You know, never would have thought I'd have a spot out there.

Clark Cogbill:

It's a little bit full circle. Right? Yeah. Because you really got that inspiration while you're out in Colorado.

Ted Herget:

Yeah. And, you know, it's cool. I mean, what it's man, the staff out there, cool. Man, people walking in, cool. I mean, it's just the products, cool. Locations, cool. I mean, like,

Clark Cogbill:

And what are the two locations in Colorado?

Ted Herget:

It's Glenwood Springs. So we're right there. Just right there on the interstate in Glenwood, right by the hot springs. And then Grand Junction's just more on downtown corner, Main Street, Grand Junction. And it's a, you know, just neat towns.

Clark Cogbill:

Yeah. That's great. Congrats on that expansion.

So, Ted, I want to talk about Jonesboro a little bit. Okay. So you're a native of Jonesboro. Did you go to A-State?

Ted Herget:

Man, proud Red Wolf. Absolutely.

Clark Cogbill:

So, you know, at this point, Ted, you could move the headquarters to Gearheadanywhere. You could move it outside the state. Why have you been committed to keeping the headquarters of Gearhead in Jonesboro, Arkansas?

Ted Herget:

Well, you know, our whole back office, our whole team, I mean, we're all Northeast Arkansasborn, raised ASU grads, things like that. I'm big in Arkansas State, you know, whether academia and sports and, I mean, the athletic department thinks I'm probably too into it because I've got a lot of time on my hands and I, you know, I keep coming up with ideas that they need to do to put more people in the seats. But, you know, it's home for everybody.

And I think there's, I mean, it's not chip on shoulders, but it's like we're just, we're doing something cool in out of a little town. I keep saying cool, I'm sorry. But it's just, I mean, they've just bought into the mission. We get to get out and travel and see the stores and meet new people. But, you know, I think they're like, for me, home is just it's where the heart is.

It's like, I couldn't imagine going anywhere else. I mean, in Arkansas, man, is I mean, having stores in Illinois and all these, it's like Arkansas is extremely business friendly, you know. And, you know, the cost of doing business is so much less here. I mean, I made a few notes on Arkansas just yesterday when I was I was wound up yesterday, man, getting ready for this thing.

Clark Cogbill:

We tried to do this podcast yesterday, and there was a little fender bender on my part. Not my fault, but we had to postpone it. And, Ted, I just wanna say thank you for your flexibility to come back today and done.  But home is where the heart is, and you've really wanted to stay in Jonesboro. And, I've also heard you talk about and and I didn't realize, but you're you're invested in that community. You give back to that community. Can you talk about some of the stuff that you do in Jonesboro outside of Gearhead, within that community?

Ted Herget:

Oh, man. I think that that's gonna be a whole other, you know Another podcast? Well, it's just I when we started we put our 1st store in Northwest Arkansas. You know, I met a kid, Jake Newell, and Jake just started developing in Bentonville.So this was 10, 12 years ago. And I always say he couldn't buy steam off a hamburger, you know. So I gave him a little bit you know, he had an idea and he starts telling me about it. And he said, my buddies, Tom and Stu, they're doing this thing up here. I'm like, oh, okay.

Like, I didn't know who these guys were, you know. But so anyway, he was friends with my brother-in-law. And so, man, I I got into real estate with him, and we and we started it's kind of downtown Bentonville. Like, the first little infill place making project they did was the Peddlers Pub, Bike Rack brewery.

So that was like their first project off the Square. And so we started building everything behind it. And so anyway, I just started and you start seeing what they're doing to create a place, you know, where again, now, I mean, it's when you're trying to attract and retain the best and brightest.

You know, how do we attract and retain? So they've trained and it's what they've done. I mean, what Walmart, their approach towards it is, again, it's back to employees first. Watch the biggest retailer in the world do what they do and they understood. And I think it was, Mike Malone.

I think we were talking, whatever. I think it was Lee Scott. I think it was 2008. So we're no longer chasing smoke stacks. We're chasing talent.

And it's the powerful thing of like what that Northwest Arkansas Council guys did. And it helps when you have, you know, the, I mean, the Tysons and the Hunts and the Waltons kinda pushing together. You know? And so, you know, you try to follow that playbook, you know? And I'm It's a lot easier up there, you know?

And those guys are Man, they're just 20 years ahead of the curve, but it's such an interesting anomaly in the world, like, having that much money all going in the same direction. But it's all about attracting and retaining talent. And so, with Jonesboro, that's what, you know, which we do. We have med school. We've got, you know, we've got, I mean, the steel business now.

We've got so much. I mean, our The steel business is huge in Northeast Arkansas. And it's going to get bigger at the end of the day. And so, but it's what I see is, you know, I'll see the Nestle president come in from Salt Lake with his wife and kids.

He does his 4 year stint, then he gets the hell out, you know. And his wife's going, what do I do here? I'm like, I don't know. Like, I know how to get around it. Like, I know how to ride my bikes.

I know, you know, but it's so it's just a livability play now. I mean, that's kind of my challenge, you know, with our JU and our chamber, you know, you gotta redefine economic development. It's no longer jobs. I mean, people create the jobs. Entrepreneurship's create, you know, you can you can create with your existing industry, you can create more jobs.

It's like, I can do more sales out of existing stores if I put more resources into those things and continue to invest more in my people and invest more in my existing stuff. So I think that's so essentially, landing in Jonesboro. Yeah. I mean, I'm building the exact same things we're building in Bentonville. Just all downtown trying to, you know, with all the med I'm getting med students and all the residents, medical resident guys.

And then you've got, man, we've got a really cool, I mean, it's such a, like I said, such a diverse economy up there with ag and everything. I mean, and ASU and everything But so, essentially, that's it.

I mean, I'm trying to create cool places for people to live, you know, downtown, walkable. I mean, eureka. It's like, I don't know why I'm the only one doing it. It kinda drives me nuts. But anyway, but, anyway, that's kinda so, yeah, that's been that's a big piece.

That's where I spend most of my time now.

Clark Cogbill:

So, Ted, let's go back to, you talking about Arkansas as a business friendly place, and talk to us a little bit about why you feel that way.

Ted Herget:

I like being the underdog. You know, everybody said you can never do it. You can never do it. You're never gonna make a bike shop work, yada yada yada. You know? But, anyway, it's like Arkansas ranked number 1 for the percentage of opportunity entrepreneurs have to succeed, which I think that's cool. And I think that's the one thing we're first place. I mean, it's kind of it you know, it's cool. And, what was interesting to me, I was just thinking about like growing up, it was Arkansas was the Land of Opportunity. And then now it's the Natural State, you know, and it kinda you look at the definition of opportunity, which is a set of circumstances that made it possible to do something. And then that's what, you know, you again, you look at who told, John Tyson never worked. Who how many people told Sam Walton it wouldn't work? How many people told Bill Dillard or Witt Stephens that.

It wouldn't work. But this state has been very has been really good to them. It's been it was a huge opportunity for them and they created an incredible - I mean, look what those guys have done just alone in Arkansas. And it's like but we're building the steam.

I can't wait to see what where we rank in 30 or 40 years. You know, and then now being the Natural State, you know, just you know, obviously, one of the definitions not made or caused by humankind. And, you know, and I think just doing that Arkansas Graveler was cool. Man, being out there riding my bike across the state is being able I'm never in all over the world, you know, you just you're you're out here going, I would never have ridden this road, never have seen this part of the state.

Clark Cogbill:

 What was that Graveler like?

Ted Herget:

It was incredible. So talk a little bit about it. I mean, you know, I don't get excited about going to ride a bike for again, but it's my job. You know, it's like I gotta do it. I'm gonna show up. And I had a great I mean, it was just one of the it was it was biblical. It was hot and it was hilly. I'm like going, who made this route? But it was just epic, you know, and the way the found everybody came together and did it and pulled it off. Man, hats off. I mean, Scottie killed it. I mean, just everybody. I mean, I'm everybody killed that deal.

So, there's just a great I mean, just like being the natural. Anyway, so that was kind of the definition of the natural. But the other the other when you use natural as a noun, and it just says it's an innate gift or talent. And so I think it's kind of like the success of a lot of these Arkansas businesses really were naturals in the sense. There's an account of I mean, it's such a small step. We have 3,000,000 people. We're one degree from everybody. Right. You know? So you have to mind your Ps and Qs. I mean, it's something that I'm in it for the long run, you know. No one I mean, and I think how everybody you know, a lot of these guys have built their businesses is you're accountable to your neighbor. You're accountable to anyway. It's just the do right rule. Everybody, I think, it's back to you take care of the community, the members take care of themselves. And it's just I think there's a lot of people around here that are natural at that. And that's why you see a lot of these businesses succeed. And if you have that type of DNA, you'll you're a success here immediately.

Clark Cogbill:

Couple more questions for you. Where do you see Gearhead Outfitters in the next 5 years?

Ted Herget:

I have no idea. I mean, it's really we're always looking for opportunity. You know, we've got a new store we're going to launch.

We're gonna drop one on the new campus. It was it's an honor for, you know, the Walmart employees voted us, to come on.

Clark Cogbill:

You're going to be on the Walmart campus?

Ted Herget:

 Yeah. Of the new headquarters. Yep.

Clark Cogbill:

Really cool. That It's fantastic. What an incredible again, it's back to it's a great place to work. I mean, it's a great place. I mean, so I look forward to that opportunity.

Ted Herget:

I love Furner, man. He's such a cool cat. I mean, it was just they've got a great team up there. I mean, Walmart crew. I mean, we're going to just slow and steady look at opportunities. We’re just trying to you know, with the business environment the way it's been, you know, we've stayed really strong. I couldn't imagine doing like having headquarters in Chicago or anywhere like that. I mean, we're in a good spot to be aggressive.

You know, we can control our cost. And it's so we're just we're very opportunistic and no idea. I mean, we could have a 100 stores or, man, we might be back to 5. It's whatever my team wants to do, that's what I'm doing. So like Gearhead will be alive and well.

Sure. Alright. Last question. Two-part question.If you had to pick a favorite place to eat anywhere in Arkansas, where would you go?

Ted Herget:

Oh, man.

Clark Cogbill:

It's your birthday. We can take a plane anywhere - do you want to go to stay in Jonesboro.

Ted Herget:

We're gonna go to Omar's downtown Jonesboro, and we're going to have that blue cheese filet, medium rare with twice baked potato. It's like the last meal.

It's as good as steak as you're gonna find anywhere, and the atmosphere is like no other. I mean, it you could be in New York. You could be anywhere. It's worth it.

Clark Cogbill:

Okay. So if you were just going to spend a weekend doing anything in Arkansas, what would you do and where would you go?

Ted Herget:

Man, I I'd say I'm going to Bentonvville. I mean, like everybody else, I'm going to rent an Airbnb and get up and go, you know, ride. We rode yesterday to Missouri and back. We'll do 60, 70 miles in a day and then belly up and have a few beers and probably eat at Peddler's Pub and rinse, repeat. I mean, it's I'm pretty consistent in my daily behavior.

Clark Cogbill:

I want really offer a sincere thanks to our guest today, Ted Herget, founder of Gearhead Outfitters, along with his wife, Amanda. Ted, thank you for spending time, and thanks for your flexibility to reschedule.

Ted Herget:

That was perfect. Appreciate you guys.

Clark Cogbill:

To find out more about Gearhead Outfitters, go to gearheadoutfitters.com?

Ted Herget:

Actually, it's GHO.com. GHO.com.

Clark Cogbill:

How about that? Fantastic.

Ted Herget:

That took us a while, but that we got it. It was cool.

Clark Cogbill:

You've been listening to the Arkansas Inc. Podcast. This is Clark Cogbill, director of marketing and communications for the Arkansas Department of Commerce.

You can subscribe to the Arkansas Inc. Podcast on Apple Podcasts, Spotify, and other podcast apps. Just search for Arkansas Inc. For more information about AEDC and to sign up for our monthly newsletter, visit Arkansas EDC and connect with us on LinkedIn, Twitter, Facebook, and YouTube. Thanks for listening.