How I Built This with Guy Raz - Dyson: James Dyson

Episode Date: February 12, 2018

In 1979, James Dyson had an idea for a new vacuum cleaner — one that didn't use bags. It took him five years to perfect the design, building more than 5,000 prototypes in his backyard shed.... He then tried to convince the big vacuum brands to license his invention, but most wouldn't even take his calls. Eventually, he started his own company. Today, Dyson is one of the best-selling vacuum brands in the world, and James Dyson is a billionaire. PLUS for our postscript "How You Built That," how Theresa Stotesbury made a business out of fake blood — a synthetic material that helps create a realistic crime scene for police training. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

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Starting point is 00:01:34 details, and plenty of space for all of us. And being in that home on Airbnb, right in the middle of Vienna, walking distance from so much of the city, made it feel less like a visit and more like we were actually living there. Plus, taking a trip is the perfect time to host your space on Airbnb. Your place with all of its personal touches and its amazing location could make someone else's vacation even better. Your home might be worth more than you think. Find out how much at Airbnb.ca.combe slash host. Well, I'd had the idea for the vacuum cleaner to replace the vacuum cleaner bag with a cyclone. And I suggested the idea to the other director. Let's make this vacuum cleaner.
Starting point is 00:02:23 Let's make this vacuum cleaner. Let's make some real money. And they said, of course. No, they didn't. What they said was, don't be so stupid. If there was a better vacuum cleaner, Hoover, Electrolux, or someone else would have made it. From NPR, it's How I Built This, a show about innovators, entrepreneurs, idealists, and the stories behind the movements they built.
Starting point is 00:02:48 I'm Guy Raz, and on today's show, how James Dyson spent a lonely five years reinventing the vacuum cleaner in his backyard shed, and how that persistence turned him into one of Britain's most. successful entrepreneurs. Here's a question. Who invented the light bulb? Thomas Edison, right? That is the name that usually comes to mind. Because Edison is probably the most famous American inventor in history.
Starting point is 00:03:23 And until recently, he held the record for the most patents by a single person. But Edison, he didn't actually invent the light bulb. He took the existing design for a light bulb. And at that time, the best light bulb would only work for a few hours. and Edison improved it. He made a much, much better light bulb. And that's basically what James Dyson did with the vacuum cleaner, a product that had been around for almost 80 years
Starting point is 00:03:50 and a product so associated with one brand that in much of the English-speaking world, they're still called Hoosers. So as you'll hear, James Dyson, much like Thomas Edison, used a kind of trial-and-erer design process for that vacuum. He made prototype after prototype in a shed in his backyard, tinkering, making small changes, and then testing them. In fact, he made over 5,000 prototypes before perfecting it. But James Dyson's journey as an inventor started a long time before he created his now-famous vacuum. He grew up in England right after the Second World War with his brother and sister.
Starting point is 00:04:31 His dad was a classics teacher at a boarding school, but when James was about nine years old, His dad died of cancer. My mother saw it coming, knew it was happening. We didn't. So in a way, it was more of a surprise to us than it was to her. She very bravely carried on, went and trained as a teacher and taught teaching. The school, which is a school you have to pay to go to. The one where your dad taught.
Starting point is 00:04:59 My dad taught, yes. It was a fee paying and boarding school. And in those days, nobody had insurance for being. ill or dying. So the school said, well, you can come as borders for free. So we had a free education and a great education. We were very, very lucky to have had no money and come from poor families yet had a good education. So you go off to live at this boarding school, which is probably pretty hard for you as a kid having lost your dad. What do you remember about it? I remember one thing that was, it was quite difficult for me because I was at school and my father
Starting point is 00:05:36 had taught at the school. There was a memorial service for him which of course the whole school had to attend. And I don't think the boys particularly wanted to go to it. So it meant a lot to me, but not an awful lot to the boys around me. And indeed, I think, going away to boarding school, just after he had died, probably not should have stayed at home and been with my brother and sister and my mother. That was probably a pretty harsh thing to do to a nine-year-old. Yeah. But this idea in England that, you know, sending people away to boarding school toughens them up. Probably does, but I don't think it toughens everybody up in the right way. So I had to learn very early on to rely entirely on myself and not anybody else.
Starting point is 00:06:16 And I think it makes you very determined, very, very determined to prove something. Now, James wasn't quite sure how he would eventually prove himself. And after he finished school, he managed to get a spot at the Royal College of Art in London. And he decided to study furniture design. and then architecture and structural engineering. And his first job out of college was for a fairly prominent British engineer and inventor named Jeremy Fry. Jeremy Frye, yes, he was chairman of an engineering company in Bath. I just got married and he said, well, I'll give you a design job or two.
Starting point is 00:06:54 And what was it about you that interested him? I mean, why would he offer you a job? Well, actually, what I discovered was that he liked employing young people who were bright and had all the right attitudes and ideas. So he gave opportunity for young people. So I started designing one or two things. And the third thing I designed for him was this high-speed landing craft. Okay.
Starting point is 00:07:18 This was a moonlighting job that he was doing because his main business was making valve actuators for oil and gas pipelines. So this was his own invention. He had a side gig that was inventing boats? Well, no, he had invented a boat. The theory was that a flat-bottomed boat is the most efficient planing hull. It's not very good in heavy seas, to be honest, but because it's flat and smashes into waves rather than cuts through the waves. Is it similar to like those landing craft that you see in those World War II movies when they're storming the beach at Normandy?
Starting point is 00:07:55 Yes, except that those are not flat-bottomed. They're V-shaped hulls, which is why you see the troops having to wade through chest-high water. in order to get to the beach. Right. Whereas we could land straight on the beach. In fact, we could ram the boat up the beach. So he had this idea to build this landing craft or transport craft that, and he said to you, hey, I got this idea.
Starting point is 00:08:16 Can you try to design something? That's exactly what you said. Huh. It was as simple as that. And it was as mad as that because I'd never designed a boat and I'd never designed anything in fiberglass. Huh. And he, well, he had never designed a boat either.
Starting point is 00:08:30 but he had this wonderful attitude you don't think about doing something you just do it and he hated experts for a good reason actually and I rather hate experts as well did he teach you how to make things I mean because you were a designer
Starting point is 00:08:47 how did that work well yes he did I mean we were taught how to make things at college but one thing we weren't taught was how to weld and we had to make a prototype and he said well just go and weld it up I said I can't weld he said, well, go and try.
Starting point is 00:09:02 So I just went off and did it. Like you described a welding? Autodidactic welding, one-man welding course. And same with the lathe. And so I learned to use engineering tools by myself. So you have your prototype, and does Fry say, let's try to sell these? Let's put this out on the market. Pretty much that.
Starting point is 00:09:25 And I said, I know nothing about selling. He says, well, don't be ridiculous. you designed every square millimeter of it, every nut and bolt, you know everything about it, so go out and sell it, which is what I did. And who was buying it? Was it designed for the military initially? Well, military use, construction use, oil companies, as a diving platform, as a bridge-building platform. So it had many, many uses. And, I mean, within a couple of years, we were selling a hundred or more a year. Wow.
Starting point is 00:09:58 It's a very successful business. So it sounds like Frye was a very fortuitous meeting early in your life that he was older than you, right? Oh, yes. Yeah, yeah. Some 20 years older. So almost like a father probably. Yes, he was in a way. He was a good mentor and taught me everything I know, really. So I guess you worked with Jeremy Frye for a couple years and then at a certain point you decide, you know, I want to kind of see if I can start my own business? Yeah, I worked for five, well, seven years in all. and he offered to fund me
Starting point is 00:10:30 and I said, no, no, I want to do it on my own. So I went off and designed and made the ball barrow, which is a wheelbarrow with a ball instead of a wheel. How did you even come up with an idea to design a new kind of wheelbarrow? Well, because I was fixing up a house and doing a garden
Starting point is 00:10:46 and I noticed the deficiencies of metal wheelbarras with narrow wheels. First of all, they're very unstable with those very narrow legs. The legs sink into soft ground, the wheels sink into soft ground. So as I used one, I started to redesign one.
Starting point is 00:11:02 And it was quite a good project to do as my first business because it was relatively simple. At least I thought it was simple. What was it? What was different about it? Well, it had this big balloon. It was actually literally a ball. It was actually a plastic football.
Starting point is 00:11:18 If you think of it like that, then that's how I made it, in fact. I made out this quite interesting plastic. That's just a soccer ball for Americans. Right, soccer ball. Exactly. Like a soccer, plastic soccer ball. So instead of having the one wheel on the front, it would be this 360-degree rotating ball, and it was more stable. And it was more stable. It didn't sink into broken ground in your garden.
Starting point is 00:11:38 It didn't damage your lawn. And, of course, it didn't sink on a building site. Why aren't wheelbarrows like that today? Well, I don't know. I don't know. But the difficult thing was then selling it because the traditional hardware stores, as they were then, and a few garden centers, they didn't want to sell. because they thought it looked very strange. So I used to sell it through little
Starting point is 00:12:01 advertisements in the newspaper. It was always next to the incontinence pants or the baldness cures. And there would be this advert for wheelbarrier. Strange, modern-looking, actually nicely designed, I think, wheelbarrier. And I started to get quite a lot of business. People sent checks. So you had this company, the ballbarrow,
Starting point is 00:12:17 and it seems like it's going pretty well, so... Well, it never made money. Why? What happened? There's no money in wheelbarrows. Okay. It was a very good lesson to learn, not many people buy wheelbarers. So it's a very small market. Wheelbarers are very cheap. No wheelbarry manufacturer has a salesman or a designer or an engineer. They just make the same thing they've made year after year. And we had to explain why it was different and better.
Starting point is 00:12:43 And that was all fine. And we got 50% of the market, but never made any money. I should have charged a lot more. My understanding is that you actually, when you took in investors, you kind of gave the patent over to the company. Is that right? I signed the patent over to the company, which was possibly a mistake. Yeah, why did you do that? Well, it's quite normal to assign the patent to the company that you work for, as I do now with all my patents. The only problem was that further investors came in. And the thing was that I didn't really own anything in the company, apart from my shares, and I now only owned about 30% of the business.
Starting point is 00:13:23 That must have been pretty frustrating. I mean, here's your idea. comes out of your brain and you don't even own your own idea. No, but sometimes one needs to go through these rights of passage to understand the importance of ownership of intellectual property, the importance of owning having a majority share in your own company or even all the shares in your own company, and not charging enough for the product, running a business that doesn't make money, all these lessons are very important lessons to learn and feel viscerally.
Starting point is 00:13:55 And I guess it was around this time when you were wanting to make new products, right? So what were you thinking of? Well, I'd had the idea for the vacuum cleaner. It's quite a long story, but I'll try and keep it very short. The frames for the wheelbarrow, instead of painting them with wet paint, we had elected to use a thing called epoxy coating. But the way you get the epoxy onto the frames is to spray the powder electrostatically. A wheelbar frame is a very open thing.
Starting point is 00:14:27 So a lot of the spray is going to miss the frame and have to be sucked away rather than have it go all over the factory. So you have a giant vacuum cleaner at the back of the spray booth sucking away the powder that's missed the frame. Now I thought this is very inefficient. So I asked these kind of people
Starting point is 00:14:45 who made this equipment, you know, what smart people used. And I learned that they used giant cyclones. Now, I'd seen giant cyclones on sawmills for collecting fine sawdust. So I went to copy one of those that I saw on a local sawmill. I climbed over the wall at night and took some sort of measurements and examined it. And we came back and over two weekends we made one that was about 30 foot high.
Starting point is 00:15:10 So how does a cyclone actually work? A cyclone is literally an upside down wine bottle. You have to blow into the system or suck out of the system. Ah, I see. But it is exactly a wine bottle. and the dirt spins around the wall of the bottle and the air goes out of the center of the bottle. And the idea is the dust can't get into the center
Starting point is 00:15:32 because it's too busy spinning around the walls of the bottle by centrifugal force. That's the basic principle of it. And cyclones were widely used in these industrial vacuum machines that were cleaning factories? It was widely used at cement factories, paint factories, all sorts of places that had nasty dust that had to be sucked away by the central factory.
Starting point is 00:15:53 system. A sawmill is a sort of very good example, but you see all the ducting sucking away from all the sores and everything and it sucks it to up onto the roof where you see a cyclone, a huge metal cyclone. Wow. And how do you connect that to a vacuum cleaner? Well, over the two weekends, while I'm welding up this 30-foot high one, I realize the point of this cyclone, which is that it collects dust all the time without ever blocking or clogging. Yeah. So when I saw how a cyclone worked, I wondered if you could make a small one and put it in a vacuum cleaner. So when I'd finish the welding, I rushed home and made a miniature one out of cardboard and scotch tape
Starting point is 00:16:36 and connected it with a piece of hose to my hoover and pushed it around the house, feeling rather happy. And it appeared to work. This is around 1978, 79. Yes. Just explain to me, what was the problem with a regular vacuum cleaner in a bag? I mean, were you frustrated by them? Did you hate vacuuming? Like, how did it occur to you that there was a problem with vacuum cleaners that needed to be solved?
Starting point is 00:17:06 Well, I just bought our own home, and we had a vacuum cleaner. Now, I'd bought what was billed as the most powerful vacuum cleaner in the world. It was sort of spaceship shaped, about two-foot and three. diameter with a huge motor, very powerful. And I was using it one weekend and the suction was rather pathetic. So I decided to put a new bag in it. I couldn't find a new bag. Yes.
Starting point is 00:17:34 So I took the bag out and undid the end and tipped the contents out into the garbage can and put it back in the vacuum cleaner. And I thought, this is great. I don't have to buy bags again. Yeah. And I was astonished that I got. got no better suction. It was exactly as before I'd emptied the bag. It wasn't a full bag. It was completely empty. But I still had no suction. So I got in the car and went down to buy some new bags
Starting point is 00:18:01 and came back and put a new bag in and I got good suction. So I thought to myself, what's the difference between the one I've emptied and the one I just bought? And I had a look at the one I'd emptied. And you could see even with my own eyes that the paws in the bag were blocked with fine dust. Oh, wow. So I suddenly realized what was going on here. You don't replace the bags because they're full. You replace the bags because they're blocked. Yeah.
Starting point is 00:18:30 And I thought there must be a better solution to this. So that's how it all started. So just pause for a second because you're still involved in the ballbarrow company, which had investors. Did you go to them and say, hey, I've got this vacuum cleaner idea. Yes, indeed. And I suggested the idea to the other director. He says, let's make this vacuum cleaner. Let's make this vacuum cleaner.
Starting point is 00:18:50 make some real money. And they said, oh course. No, they didn't. What they said was, don't be so stupid, if there was a better vacuum cleaner, Hoover or Electrolux or someone else would have made it. These are huge companies. But I mean, you can understand their thinking at that time because how could anybody possibly compete with these giant vacuum companies? Well, actually, I saw immediately that these big companies like Hoover and Electronics weren't bothering to improve the technology. Yeah. They were quite happy selling bags. Sure. And no one was taking them on because they they'd be. So I thought, well, therein lies the opportunity. I may be tiny and have no money and be in debt, but I've got an idea. So I think my suggesting that we make a vacuum cleaner was the final
Starting point is 00:19:32 straw and they kicked me out. Wait, wait, they kicked you out of your own company? Oh yes. Yeah, yeah. So that, which was a great thing, actually, because I was then able to start developing the vacuum cleaner. So I went back to my friend, Jeremy Fry, and said I've got this idea for a vacuum cleaning. He thought it was excellent. So he put up 49% of the capital. I borrowed 51% from the bank. How much did you have to borrow? Well, it was about 40 or 50,000 pounds in those days to get it started. And you did not have any of your own. I didn't have a bean. I was in debt. I had a big mortgage. You know, three kids. So I started making prototypes for a site claim to make. Like, where did you do this? In the shed behind my house.
Starting point is 00:20:18 So you did this in your backyard. Yes. And you borrowed the money. And the idea was it'll take me a year or so and then I'll like start selling these things? Yes. Well, no, what I thought, we thought rather was that we'd get it to work and then we'd license it to someone like Hoover. So you are trying to build this and you're doing this day and night, day and night, day and night. Yes.
Starting point is 00:20:41 Well, I wouldn't say night, but during the day. I mean, quite a long day. And what were you doing in the shed? Was it like trial error? Trial error? Was it? Exactly that. It was empirical, entirely empirical,
Starting point is 00:20:53 because this is before the days of computer simulation. I was building one prototype at a time, making one change at a time. So I knew what difference that one change made. And so I progressed. There were quite a number of problems to solve. Firstly, at that time, the state of the art was that cyclones were only good at separating dust. down to about 20 microns, whereas I had to get it down to half a micron, cigarette smoke-type particles. So that was the first problem. And the second thing was that I found that hairs and fluff
Starting point is 00:21:29 would go straight through the cyclone and not be collected. And I built 5,127 prototype before I got it right. Here's what I'm trying to understand, James, why you are iterating and doing this in your backyard. how are you earning a living? How are you paying your bills? How are you providing for your family? Well, the money that I borrowed from the bank and the money that Jeremy Fry put in was essentially paying my salary plus a few costs,
Starting point is 00:22:01 but I kept the cost to a minimum. And once you got a prototype up and running, did you go around and try to pitch the vacuum companies? Exactly that. I targeted all the vacuum cleaner companies and one or two other domestic companies. to compliance companies. And what do they say when they saw it?
Starting point is 00:22:18 Well, they all had a good look at it, but they didn't really want to do anything. They didn't want to change. And one or two of them said they actually rather like selling paper bags. It's like a, you know, Gillette selling a razor blades. Yeah, sure. They can make a lot of money out of bags. So essentially, they were curious, but didn't want to license it.
Starting point is 00:22:37 How bad did your financial situation get? It got pretty bad. It's not nice going for many years with a huge overdraft. and not earning any money either. But the one thing that my wife and I always said was that we both had skills. I mean, she's an artist. And she could always teach art
Starting point is 00:22:54 and she did do some evening class lessons. And I could always earn money making furniture or doing something like that. So we had practical trades that we could do. So it wasn't what we wanted to do, but we had that backup. But with all of those companies, those big companies telling you,
Starting point is 00:23:13 not really interested. Did you ever get nervous? Did you ever think about just packing it all in and going getting a safe job as a designer for a big company? Well, no, you see, I don't quite react like that. It has the opposite effect on me. You know, I could see that they were turning down what is a good idea without good reason.
Starting point is 00:23:35 If they're given me a really good reason, then I would have got nervous. What about your friends and family? Do you think people were sort of... They thought I was mad. Right, they must have. They must have. There's James over there. It's working on this weird thing that he thinks is going to be a big deal.
Starting point is 00:23:47 Obsessed and mad. But the thing is never to take advice. I mean, it is amazing because even some of the most successful entrepreneurs that have been on the show had sleepless nights. They had anxiety about what they were doing. Well, I did. I'm not pretending I didn't. I did. But I have a sort of basic belief.
Starting point is 00:24:08 I think partly from the success of the ballbearer. and from the high-speed landing craft, which a lot of people wouldn't buy it because it didn't look like a boat. So having introduced to very strange-looking, very different new technology, you can make a success of it if it genuinely works better. Coming up, the story of how James Dyson's design for a new vacuum that no one wanted to manufacture eventually became one of the best-selling vacuums in the world. Stay with us. I'm Guy Raz, and you're listening to How I Built This from NPR.
Starting point is 00:24:46 Hey, welcome back to How I Built This from NPR. I'm Guy Raz. So it's 1985, and James Dyson approaches a bunch of companies to try and license his new vacuum. But none of them are interested, and most don't even return his phone calls. But finally, that year, a small company called Apex decides to try making and selling Dyson's design in Japan. Yes, a very small Japanese company that never made anything before in its life got very excited about it and found someone to make it for them and they would sell it. What did it look like compared to what we think of a Dyson vacuum cleaner today? It looks much like our upright machines except it's pink.
Starting point is 00:25:42 Yeah. And it has a lot of exposed hoses, a bit like the Poppidoo building in Paris. So you can see exactly what the air does. Oh, cool. But in most other respects, it's quite similar to the early upright machines we sold here. And how did it do? How did it sell? Well, I think considering it was $2,500, it did quite well. Right, because in like today's dollars, it's like $6,000.
Starting point is 00:26:05 It's a lot of money. It's a lot of money. I mean, fortunately, there were some quite rich Japanese people then. But they must have been a $6,000. Yes. Was the licensing agreement with the Japanese company enough money to pay off your debts? Well, yes, it saved me from bankruptcy, put it, that way. So you licensed it to this company and they were kind of selling okay.
Starting point is 00:26:28 What made you at a certain point say, you know what, maybe I should I should try and sell these myself? Well, although we were selling some in Japan at a ridiculously high price, it didn't really satisfy me because I wanted to sell a lot at a reasonable price. So I said, well, I can't really go on like this licensing people. It's, I want to make the vacuum cleaner and I want to design the vacuum cleaner I want to design
Starting point is 00:26:53 and I want to sell it in the way that I want to sell it. So I decided to borrow some money. I was now completely on my own. I'd bought out Jeremy Frye, my partner and I went to all sorts of people to try and borrow money to start my own vacuum cleaner business. And I thought I had quite a good track record
Starting point is 00:27:11 because I'd designed the new technology. I got a successful licensee in Japan and I thought that I ought to be able to raise money The problem with the venture capitalists and the private equity people is that they all thought that because I was an engineering designer, I knew nothing about making and selling things and I couldn't possibly make a commercial success of it. So they all turned me down. You actually went to outside investors asking them? Oh, yes, yes. For which I'm actually eternally grateful because I'd have to give them equity.
Starting point is 00:27:39 Whereas I went to a clearing bank, Lloyd's Bank, and by some miracle, they agreed to lend me 600,000 pounds. Why did they agree to do that? Well, I asked the bank manager afterwards, and he said, well, I saw that you had won a big lawsuit. So I saw that you had determination. What was the lawsuit? There's a lawsuit in America with someone who copied the vacuum cleaner. Oh, so by this point, somebody had already copied your idea? Yes, and I'd fought a five-year lawsuit.
Starting point is 00:28:07 And we managed to settle it very successfully. And the interesting thing is, this bank manager, he went home and asked his wife what you thought of a vacuum clean that didn't have bags. And she said, wonderful, exactly what I want. So it was partly that he'd seen my determination to win a lawsuit, and partly that his wife didn't like bags and vacuum cleaners. And presumably you had to put some collateral down like your house. The house, exactly. So my wife and I had to sign the house over to the bank.
Starting point is 00:28:34 I'm getting nervous for you thinking about this. So am I. So am I even thinking about it now. I'm getting nervous. And so off I went. And that's a very small amount of money. to build the tooling and it costs the whole of the £600,000.
Starting point is 00:28:51 And the tooling is the... The tooling is the injection moulds that you inject the plastic into to make all the components. Now, one of the things about tooling is that if you make any changes, that's where the toolmaker makes all his money. It's like a builder.
Starting point is 00:29:05 If you make changes, the builder starts piling on the costs. So I said to my fellow engineers, we're not to make any changes at all. This is it. I haven't got any more money, so this is it. So we didn't make any changes. We got our tooling.
Starting point is 00:29:19 And I put the tooling in a plastics factory to make the plastic. And they only were using half their factory. So I said, can I use the other half to assemble the vacuum cleaners in? And they said yes. So I had a few people there doing that assembly. And there were four engineers and myself. And we had one salesperson and one money person. So the plastics company made the parts.
Starting point is 00:29:43 and I paid them at the end of 60 days. Yeah. And so I had to go and get some orders. So I got some orders. How did you sell? Who did you sell them to? How did you know where to go? Well, I went everywhere and nobody would take it.
Starting point is 00:29:57 But in those days, there were mail order catalogs. Do you remember the Sears mail order catalog? Well, I wasn't supplying Sears. But in England, there were one or two people who had catalogs like that. And I got into one of those because I spent a day with the buyer who was sort of curious about this funny man who'd done this yellow vacuum cleaner with a cyclone instead of bags. Yellow and silver, right? Yellow and silver.
Starting point is 00:30:19 I spent a day with him, and at the end of the day, he said, why should I put your vacuum cleaner in my catalogue and take out a Hoover or a Nurtrolux? Yeah. And I said, well, because your catalogue's boring. And he sort of looked at me for quite a long time, and then he said, okay, I'll give it a go. And he happened to be the biggest mayor-law to catalogue in England. How much were you selling them for? $199 pounds.
Starting point is 00:30:46 So there's three times what other vacuum cleans were sold for. Didn't any of these catalog companies say, this is just too expensive? You're asking for too much money. Oh, well, no, the price was concealed because you paid on the drip. You paid so much per week. I see. So they didn't actually show the full price or you could have in very small print. But why would somebody take a risk on something that was untested that they'd not ever seen before through a catalog?
Starting point is 00:31:14 Because it looked different. Its promise was no loss of suction. You don't have to buy bags. Right. And we then got into another catalogue. And so my first three or four or five months sales were to those catalog people. And then I got into quite a famous shop called John Lewis. Yes, sure, of course.
Starting point is 00:31:34 Department stores. How did you do that? They were looking to compete with the big electrical multiples. And so they wanted something different for which they could charge more money. But it very quickly became their best-selling vacuum cleaner. And this was 1993. 1993. So how long was it before you were actually profitable?
Starting point is 00:31:56 I was in the black from the first month on. Wow. I was able to pay my employees and I was making a profit as my distribution started to rise. And I could only get into the shops if I promised to advertise on television. How did you do that? How did you have the money to do that? Well, I didn't. So I said to the first retailer who demanded I do that
Starting point is 00:32:17 I said well look if you order 10,000 vacuum cleaners off me I'll put all the profit on those vacuum cleaners into television advertising which I did and so my strapline in the beginning was say goodbye to the bag so I had this woman explaining how the Dyson doesn't lose suction and others do and then she said don't need these and tore up a bag and threw it away and it all worked and it snowballed from that So I guess within two years, this vacuum cleaner, by 1995, this becomes the number one selling vacuum cleaner in the UK. Yes.
Starting point is 00:32:54 Were you just blown away or were you just thinking to yourself? I was too busy, actually. It's like going down a fast ski run. You can't stop. You just have to carry on. And we were then bringing out a new version, a canister version, and we were starting to extrad. export. How much revenue were you making by the time you were the number one best selling back in the UK? What was the annual revenue for Dyson? Do you remember?
Starting point is 00:33:20 I don't know. It was probably $100 million. In two years. That's incredible. Yes. I mean, it's a very steep graph. I mean, that doesn't happen. It's happened, of course, in the tech world. I mean, this is a real product. This is a real thing that people could buy and take home. Oh, yes. And we're making real money. and to see people buying the vacuum cleaner and liking it and commenting on it was tremendous. That was actually much more exciting than the whole money thing. And how did you get into the U.S. market, which is, I guess, became your biggest market in the world? Yes.
Starting point is 00:33:58 The first year, we didn't do any advertising. But even getting in was difficult because everybody said, oh, well, you might have been successful in England, but America's very different. Yeah. And then a junior buyer at Best Buy took one of our vacuum cleaners home for a couple of weeks and said to her boss, look, it actually is what he says it is. It works really well and it doesn't lose suction. So Best Buy took it. And for the first year we didn't do any advertising, but it sold pretty well in Best Buy. This is like 2002, 2003, something like that. Exactly. Exactly. And then we started to get into one or two other hours. So we decided to put all our money, a lot of investment, into a television campaign.
Starting point is 00:34:44 And so it wasn't my suggestion, but someone said, look, why don't you just explain what you did and why you did it? Just like you on TV. Me on TV, taking a vacuum cleaner apart, showing a clog bag, and then showing how my cyclone worked. And you know that Americans are suckers for a British accent. Well, I didn't know that. And I, so I was just being very honest.
Starting point is 00:35:07 I was explaining how a vacuum cleaner works, why it loses suction, and why mine doesn't. It was very, very simple approach. And we shot it in my house, and it was a very successful advertisement. And we started selling very fast. It was good. As you grew and grew and grew and grew, I mean, eventually you began to sort of expand out to a whole range of products. I mean, air filters, bladeless fans, dryers. who's gone to a sports arena or a movie theater in the U.S. or certainly in the U.S. and probably
Starting point is 00:35:43 elsewhere has used a Dyson hand dryer that you just put your hands in and out of. Oh, good. How did those, when did you begin to expand other products? Well, first we did the fan, the bladeless fan. By the way, how does that work? Can you explain that to me? Yes, yes. You accelerate the air out of an area slot.
Starting point is 00:36:01 That draws in other air. You then expand the volume of air that you're, creating, and you create a negative pressure at suction behind. So you pull in more air. So you end up multiplying the original airflow 15 to 20 times. Now, I've simplified it, and there's a lot going on there as I haven't talked about. But that's the basic principle. I'm not sure I entirely understand it, but it is amazing to see that thing work, to see this hoop blow really powerful air. Yeah, no, it is interesting. And of course, you have no blades to clean. James, I'm curious about the way you run a business because you really are an inventor and designer.
Starting point is 00:36:46 And you don't strike me as somebody who's interested in administering a company or doing the books or going to a bunch of meetings. Or maybe you are. Are you? How do you do all those things? Well, I had to do all those things at the beginning. But as the company grew, I did more and more of the engineering. and now I spend, you know, 95% of my time doing that. But I was the CEO for the first 10 years. I mean, I'm not totally happy doing anything other than engineering. I will do those other things if they need to be done.
Starting point is 00:37:20 But I sort of resent the time I'm doing that. I would much rather be with my engineers doing what I really love doing and doing what I think is the most important thing. Did you feel a sense of secretly a sense of, I don't know, schadenfreude, that you were right, and the people at the ballbarrow company were wrong, and those other vacuum companies were wrong when they turned you down? Do you secretly think, I got them, I was right? No, no, I'm on to the next thing. Everybody makes mistakes all the time. 50% of what I do is wrong. Actually, they're great. Mistakes great. Yeah.
Starting point is 00:37:55 Not charging enough for the ballbarrow is a mistake. And I learned from it. I've never made that mistake again. I've never made the mistake of giving away equity in the company. You own 100% of it. You don't have to answer to shareholders. You don't have to answer to venture capitalists. No, and that's wonderful. And actually, it makes my life pretty simple. You are just so people understand this, because you went from being deeply in debt in your early 40s, really having nothing, no money and three kids.
Starting point is 00:38:24 Minus being minus. Minus. To today you own a jet, a private yacht. I mean, that's crazy to think that not that long ago. in middle age, you had nothing. Yes, yes, it is. In a way that it's, I find it quite nice that it's only came much later in life. I think it would be very different had it happened earlier.
Starting point is 00:38:49 And, you know, there are still big risks to be taken. I'm developing an electric car and, you know, that's a huge financial risk. Yeah. But I am able to do it and that's the big difference. I am able to take a long-term view and, in the way, invest large sums of money and take big risks. And it's a huge privilege to be in that position. James, how much of your success do you attribute to your skill, your intelligence, your hard work, and how much of it to luck? Absolutely none to my intelligence. Hard work, yes. Perseverance, yes,
Starting point is 00:39:24 and luck. Yes. And I do believe, though, that you create your own luck. Because luck is around. You know, I did long distance running at school and you only succeed by doing a huge amount of training and then having great stamina, understanding that other people are also feeling tired. So when you feel tired, you should accelerate. That's when you start winning. Yeah.
Starting point is 00:39:51 So, and I've learned that with developing new technology that when you feel like giving up, it's precisely to the point everybody else gives up. So it's at that point that you may, put in extra effort. You do that, and then success is literally just around the corner. That's James Dyson. Actually, Sir James Dyson, he was knighted in 2006.
Starting point is 00:40:16 Sir James and his wife, Deirdre, will celebrate 50 years of marriage this year. And the latest Forbes estimates put his net worth at $5.8 billion. By the way, do you still vacuum your own house? Well, of course. Oh, really? Yourself? You don't hire people to do it? No, no, we cook our own supper, wash it up.
Starting point is 00:40:37 I do some vacuuming on my clothes. And I'd like doing all those chores because I learn, you know, what works and what doesn't work. And stick around because in just a moment we're going to hear from you about the things you're building. Hey, thanks for sticking around because it's time now for how you built that. And we've got a really niche product to talk about this week. So you know how in crime shows the detective walks into a murder scene and starts to live. looking for clues in the blood that's lying around. Well, real police have to be trained to do that.
Starting point is 00:41:25 And this kind of training has been going on for a long, long time. And forensic teams at police departments have used everything to make it realistic. Everything from their own blood to animal blood sources to even corn syrup and water, that classic fake blood maybe you'd use to make your Halloween costume. This is Teresa Stoatsbury. She's a chemist. And she says that if you're training a bunch of cops for like a day, you need blood that won't clot too fast, that won't spread disease, but that still kind of acts like the real thing. And she learned all this when she worked at a crime lab in Ontario, Canada.
Starting point is 00:42:02 People were kind of grumbling in the forensic community that there just wasn't a good enough fake blood product on the market. So Teresa kind of filed away that idea. And around the same time, this is about 2010, 2011. she was working in another lab on something totally unrelated, a better coating for steel to keep it from corroding. So I was working with this clear, colorless liquid that made a nice coating. It could make little spots if you wanted to kind of spray it on things. And I thought to myself, hey.
Starting point is 00:42:35 This, of course, was her light bulb moment. I thought if you just put a little bit of coloring in this and you just tinker a little bit with its properties, I bet you I could make a pretty good fake blood out of this. And so that's what Teresa did. In fact, at the time, she was in grad school and kind of did her thesis on fake blood. I spent four years perfecting the material, got my PhD, and then we decided to form a company where we would sell it. And she's now working with colleagues at Trent University in Ontario to sell it to police trainers around the world. The ingredients, by the way, are top secret.
Starting point is 00:43:11 There's some water, some polymers, and coloring. But the mixture has features that you'd find in real blood. We call those little features tails or spines or scallops. And they can tell you a lot about how the blood got there. So was it flying through the air? Was it just formed on a surface? Which admittedly is a little creepy. But that's the point, right, if you're learning to investigate a crime scene.
Starting point is 00:43:36 Anyway, Teresa's company, Impact Scientific, has made about $10,000 since it launched. last year. And one of the coolest perks of the job? I do make a pretty mean Halloween costume. I bet. One year was I dressed up like a zombie, which was pretty intense. You can find out more about Impact Scientific at our Facebook page. And of course, if you want to tell us your story, go to build.npr.org. We love hearing what you're up to.
Starting point is 00:44:05 And thanks for listening to the show this week. If you want to find out more or hear previous episodes, you can go to how I built this. npr.org. Please also download our podcast at Apple Podcasts or however you get your podcasts. You can also write us your feedback or any pitches at hibt at npr.org. And if you want to send us a tweet,
Starting point is 00:44:26 it's at How I Built This. Our show is produced this week by Casey Herman with original music by Rumtin Arablui. Thanks also to Neva Grant, Sanaz meshkampur, Jeff Rogers, and Thomas Liu. Our intern is Nur Kutsi. I'm Guy Raz, and you've been listening to how I built this from NPR.
Starting point is 00:44:48 There are millions of books out there, just waiting for you. But how to keep up? Introducing NPR's Book of the Day. Every weekday, we feature some of our favorite conversations with authors and writers about their latest books. You can check it out in about the time it takes to walk the dog. Happy reading.

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