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.

The Sears, Roebuck & Company and Montgomery Ward Promotion Wars
The Sears, Roebuck & Company Catalog
The Development of Mail Order America & Consumer Society
Sears Website Bibliography
Return to Sears Introduction Page

Contributed by Lori Liggett, American Culture Studies Computing for ACS, Spring 1997

Return to 1890s America: A Chronology