Ogden gave McCormick $25,000 for a half interest in the business of
making reapers, and started at once to build a factory. At last the
inventor was firmly established. He arranged to sell five hundred
reapers for the harvest of 1848, and as one after another was sent out
into the great wheat belts and set up and tried, the farmers who saw
them decided that the reapers spelled prosperity for them. The
business grew, and at the end of two years, when the partners found it
wiser to dissolve their firm, McCormick was able to tell Ogden that he
would pay him back the $25,000 that he had invested, and give him
$25,000 more for interest and profits. Ogden accepted, and McCormick
became sole owner of the business.
Cyrus McCormick was not only an inventor, but a business-builder of
the rarest talent, one of the great pioneers in a field that was later
to be cultivated in the United States to a remarkable degree. He knew
he had a machine that would lessen labor and increase wealth wherever
wheat was grown, and he felt that it was his mission to see that the
reaper should do its share in the progress of the world. In that sense
he was more than a mere business man; but in another sense he was a
gigantic business-builder. Just as he had studied the problem of
cutting wheat with the object of producing the most efficient machine
possible, so he now studied the problem of selling his reapers in such
a way that every farmer should own one. He believed in liberal
advertising, and he had posters printed with a picture of the reaper
at the top, and below it a formal guarantee warranting the machine’s
performance absolutely. There was a space beneath this for the
signature of the farmer who bought, and the agent who sold, and two
witnesses. The price of the reaper was one hundred and twenty dollars,
and the buyer paid down thirty dollars, and the balance at the end of
six months, provided the reaper would cut one and a half acres an
hour, and fulfil the other requirements. This guarantee, with a chance
to obtain the money back if the purchase was unsatisfactory, was a new
idea, and appealed to every one as a most sincere and honorable way of
doing business. More than this, he sold for a fixed price, which was
in many respects a new method of selling, and he printed in newspapers
and farm journals letters he had received from farmers telling of
their satisfaction with the reaper. In these new ways he laid the
foundation of an enormous business.
Public-domain text, read in full here on John Shaqi.
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