RICHARD WARREN SEARS
Richard Warren Sears (1863-1913) is considered to be one of the great American
promotional geniuses, although it is generally agreed that he was not a good
businessman or manager. In addition, his character and sales motivations were
not without question. Some considered him to be a somewhat unscrupulous huckster,
using mail order as a sort of medicine sideshow replacement vehicle, selling
less than quality items to poor, unsuspecting rural folks. Others marveled at
his intuition and ability to write advertising copy that would speak to farmers
in their own language, offering them inventions that would lighten their load
and make their lives more efficient -- and at a price they could afford. Sears
was a complex person, and his marketing savvy offered Americans the convenience
of modern, time-saving inventions that made way for the development of twentieth
century leisure culture. Richard Warren Sears, the innovative, brash genius, has
had a lasting impact on American history. As such, he got his start in
merchandising in an unconventional manner, befitting his unique personality.
Young Sears Gets His Start
While working as a station agent for the Minnesota and St. Louis Railroad in
North Redwood (see above right photo), Sears became the beneficiary of a
fortuitous event which would change his life forever and forge a new path for
the American economy. In 1886, a consignment of gold-filled pocket watches from
a Chicago manufacturer was refused by a Minnesota retailer. This was becoming a
common practice. Wholesalers would ship their products to retailers that had not
ordered the items. Upon refusal, the wholesaler would offer the already price-hiked
items to the retailer at a lower consignment cost in the guise of alleviating
the cost to ship the items back. The unsuspecting retailer would then agree to
take this new found bargain off of the wholesaler's hands, mark up the items and
sell them to the public, making a small profit in the transaction. But in 1886,
the savvy retailer flatly refused the watches. Young Sears jumped at the
opportunity. He made an agreement with the wholesaler to keep any profit he
reaped above $12, and then he set about offering his wares to other station
agents along the railroad line for $14. The watches were considered an item of
urban sophistication, and the station agents had no trouble selling them to
customers passing by who generally lived far from any urban center.
Within six months, Sears had netted $5,000 and felt so successful and confident
in this venture that he moved to Minneapolis and started the R. W. Sears Watch
Company. Eager and enthusiastic, he began trying his hand at writing letters to
prospective buyers of his watches, but knew that he would need to expand his
market to make any real profit. His promotional efforts soon developed into
placing advertisements in farm publications and mailing out flyers to potential
clients. From the beginning, it was clear that Sears had a talent for writing
promotional copy that would entice even the most skeptical person to try
whatever Sears had to sell. He took the personal approach in his ads, speaking
directly to rural and small-town communities. He also knew that he needed to
find a way to counteract the beliefs held by many rural folk that mechandisers,
and city slickers in particular, were unscrupulous and untrustworthy. The famous
Sears guarantee and his C.O.D. (cash on delivery) offer enabled him to gain the
trust and business of farmers who were his most important and largest market
segment in the 1890s.
Sears Hires Roebuck
In 1887, Sears hired watch repairman Alvah Curtis Roebuck to handle many of the
returns that needed repaired. Roebuck was not only Sears's first employee, but
he later became co-founder of Sears, Roebuck & Company. Roebuck's contribution
to the corporation was short-lived, however, and due to personal considerations
he sold his share of the company to Sears in 1895 for $25,000. Sears himself
clashed with new business partner, Julius Rosenwald, and quit the business in
1908. He later sold his portion of Sears stock in 1913 and died that same year.
To this day, Sears's advertising and promotional skills remain legendary, and
today's most sophisticated marketer's continue to employ the tried and true
concepts that Sears made famous.
Richard Warren Sears (1863-1913) is considered to be one of the great American
promotional geniuses, although it is generally agreed that he was not a good
businessman or manager. In addition, his character and sales motivations were
not without question. Some considered him to be a somewhat unscrupulous huckster,
using mail order as a sort of medicine sideshow replacement vehicle, selling
less than quality items to poor, unsuspecting rural folks. Others marveled at
his intuition and ability to write advertising copy that would speak to farmers
in their own language, offering them inventions that would lighten their load
and make their lives more efficient -- and at a price they could afford. Sears
was a complex person, and his marketing savvy offered Americans the convenience
of modern, time-saving inventions that made way for the development of twentieth
century leisure culture. Richard Warren Sears, the innovative, brash genius, has
had a lasting impact on American history. As such, he got his start in
merchandising in an unconventional manner, befitting his unique personality.
Young Sears Gets His Start
While working as a station agent for the Minnesota and St. Louis Railroad in
North Redwood (see above right photo), Sears became the beneficiary of a
fortuitous event which would change his life forever and forge a new path for
the American economy. In 1886, a consignment of gold-filled pocket watches from
a Chicago manufacturer was refused by a Minnesota retailer. This was becoming a
common practice. Wholesalers would ship their products to retailers that had not
ordered the items. Upon refusal, the wholesaler would offer the already price-hiked
items to the retailer at a lower consignment cost in the guise of alleviating
the cost to ship the items back. The unsuspecting retailer would then agree to
take this new found bargain off of the wholesaler's hands, mark up the items and
sell them to the public, making a small profit in the transaction. But in 1886,
the savvy retailer flatly refused the watches. Young Sears jumped at the
opportunity. He made an agreement with the wholesaler to keep any profit he
reaped above $12, and then he set about offering his wares to other station
agents along the railroad line for $14. The watches were considered an item of
urban sophistication, and the station agents had no trouble selling them to
customers passing by who generally lived far from any urban center.
Within six months, Sears had netted $5,000 and felt so successful and confident
in this venture that he moved to Minneapolis and started the R. W. Sears Watch
Company. Eager and enthusiastic, he began trying his hand at writing letters to
prospective buyers of his watches, but knew that he would need to expand his
market to make any real profit. His promotional efforts soon developed into
placing advertisements in farm publications and mailing out flyers to potential
clients. From the beginning, it was clear that Sears had a talent for writing
promotional copy that would entice even the most skeptical person to try
whatever Sears had to sell. He took the personal approach in his ads, speaking
directly to rural and small-town communities. He also knew that he needed to
find a way to counteract the beliefs held by many rural folk that mechandisers,
and city slickers in particular, were unscrupulous and untrustworthy. The famous
Sears guarantee and his C.O.D. (cash on delivery) offer enabled him to gain the
trust and business of farmers who were his most important and largest market
segment in the 1890s.
Sears Hires Roebuck
In 1887, Sears hired watch repairman Alvah Curtis Roebuck to handle many of the
returns that needed repaired. Roebuck was not only Sears's first employee, but
he later became co-founder of Sears, Roebuck & Company. Roebuck's contribution
to the corporation was short-lived, however, and due to personal considerations
he sold his share of the company to Sears in 1895 for $25,000. Sears himself
clashed with new business partner, Julius Rosenwald, and quit the business in
1908. He later sold his portion of Sears stock in 1913 and died that same year.
To this day, Sears's advertising and promotional skills remain legendary, and
today's most sophisticated marketer's continue to employ the tried and true
concepts that Sears made famous.