The Warren Buffett Way: The World’s Greatest Investor

(Rick Simeone) #1

48 THE WARREN BUFFETT WAY


his 2003 shareholder letter, “because it was owned by their major com-
petitor. But Grady Rosier, McLane’s superb CEO, has already landed
some of these accounts—he was in full stride the day the deal closed—
and more will come.”^9


THE PAMPERED CHEF


In 1980, Doris Christopher, a former teacher of home economics and a
stay-at-home mom, was looking for part-time work with f lexible hours
that would add to the family income but still allow her time with her
two young daughters. She decided to leverage what she knew—cooking
and teaching—and that led her to the idea of selling kitchenware with in-
home demonstrations. So she borrowed $3,000 against her life insurance
policy, went shopping at the wholesale mart and bought $175 worth of
products she admired, then asked a friend to host a demonstration party.
Christopher was a nervous wreck before the f irst party, but it was
a resounding success. Not only did everyone have a great time, several
guests suggested they’d like to host a party themselves. That was the
beginning of the Pampered Chef, a company that markets gourmet
kitchenware through direct sales and in-home parties.
The 34-year-old Christopher, who had no business background,
started the company in the basement of her Chicago home with the
$3,000 loan. The f irst year, working with her husband, she had sales of
$50,000 and never looked back. In 1994, the Pampered Chef was
among Inc.magazine’s 500 fastest-growing privately held companies in
the United States, and Christopher has been recognized by Working
Womanmagazine as one of the top 500 women business owners.
Doris Christopher started her business with a passionate belief that
sitting down together at mealtime brings families together in a way that
few other experiences can match. That philosophy has shaped and
guided the Pampered Chef from the beginning, and it is at the core of
the sales approach: a friendly, hands-on pitch to housewives that links
the quality of family life to the quality of kitchen products.
Many of the company’s “kitchen consultants,” as they are called, are
stay-at-home moms, and most of the sales are conducted in their homes
at “kitchen shows.” These are cooking demonstrations where guests see
products and recipes in action, learn quick and easy food preparation
techniques, and receive tips on how to entertain with style and ease. The

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