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L. L. Bean--The Man and His Company: The Com

L. L. Bean--The Man and His Company: The Complete Story

James L. Witherell
2011
T3 563 pages · about 9h 23m to read OL16114406Wgoodreads

Summary

Witherell wrote a detailed history of Leon Leonwood Bean and the company he founded in Freeport, Maine in 1912, drawing on company records, catalogues and local sources.

The founding is the most instructive part. Bean designed the Maine Hunting Shoe by combining a leather upper with a rubber bottom, sold ninety pairs by mail to holders of Maine hunting licences, and had ninety percent of them returned because the stitching failed where the leather met the rubber. He refunded every customer, which nearly ended the business, redesigned the shoe and continued. The unconditional guarantee that became the company's identity originated in that failure rather than as a marketing decision.

The business material covers the mail order model built on lists of licence holders and then on customer referrals, the catalogue as the primary sales instrument and Bean's personal writing of it, the Freeport store's decision to remain open continuously, the product range's slow expansion from a single item, and the family ownership that kept the company private.

The reference has not verified the specific figures in this account. The book is long and detailed, written for people with an interest in the company and in Maine, and it is a chronicle rather than a business analysis. Its value to an operator is the origin of the guarantee and the demonstration that a direct mail business can be built from a single product and a list.

Key takeaways 7

  1. Bean's first product failed, with ninety percent of the initial ninety pairs returned, and he refunded every customer at a cost that nearly ended the business.
  2. The unconditional guarantee originated in that failure rather than as a marketing decision, which is why it was credible.
  3. The business was built from a single product sold by mail to a defined list, in this case holders of Maine hunting licences.
  4. The catalogue was the primary sales instrument and Bean wrote it personally, which made the product descriptions the voice of the business.
  5. Product range expanded slowly from a single item over decades rather than being broadened to increase order value.
  6. Family ownership kept the company private and permitted decisions that a listed company's shareholders would have rejected.
  7. The reference has not verified the specific figures in this account.

Who should read it

Founders in direct-to-customer businesses interested in the origin of guarantee-based positioning and single-product mail order.

Where it sits in the reference 2

Companies
Industries

Who recommended it 1 · 1 direct

Chai with Pabrai bookshelf — Entrepreneurship, Management and Leadership

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