The Best Idea Yet - 🏖️ Tommy Bahama's Beach Chair: Fake Dude, Real Billions | 34

Episode Date: June 3, 2025

Tommy Bahama (spoiler) wasn’t founded by a man named Thomas with a Caribbean address. Rather, this classic lifestyle brand began with two longtime friends and coworkers at a failing apparel... company. Facing unemployment at age 50, they channeled their inner Hemingways to invent a fictional hero of the leisure class: Tommy Bahama, purveyor of roomy, flowered silk shirts—and a series of surprisingly good restaurants. Weathering mistakes and misfires, they built Tommy B into a global branding empire worth close to $2B. But Tommy’s greatest magic trick wasn’t getting adult men to embrace hibiscus prints, but to create the ultimate beach chair that now commands 75% of the premium market… and sells all year round (not just during spring break). How did Tommy Bahama create the perfect four-season beach throne? Pull up a backpack chair, throw a couple cold ones in the cooler pouch, and find out why the Tommy Bahama Beach Chair is the best idea yet.Be the first to know about Wondery’s newest podcasts, curated recommendations, and more! Sign up now at https://wondery.fm/wonderynewsletterFollow The Best Idea Yet on the Wondery App or wherever you get your podcasts. You can listen to new episodes early and ad-free on Wondery+. Join Wondery+ in the Wondery App, Apple Podcasts or Spotify. Start your free trial by visiting www.wondery.com/links/the-best-idea-yet/ now. 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 00:00:00 Wondery Plus subscribers can listen to the best idea yet early and ad free right now. Join Wondery Plus in the Wondery app or on Apple podcasts. All right, Jack, best all time superheroes. You can only pick one. Who you got? It's definitely not Superman. Because Superman was born with unbelievable superpowers. Yeah. Now, Iron Man, he built his iron suit with his bare hands. He's a self-made superhero. But the only superhero who is a head of state
Starting point is 00:00:35 is the Black Panther. Oh, you gotta worry about policy, tariffs. I mean, that's a lot to worry about if you're a superhero, not your typical gig. Nick, who do you got? Batman wasn't bit, granted, or given any superpowers. Other than a trust fund, he didn't have any of these freaky superpowers. True. Bruce Wayne, he's kind of a nepo baby, but he made it work, Jack.
Starting point is 00:00:55 But as you can tell, it is very rare yetis for there to be a very clear number one in any particular category. Out of all the products we've done on the show, there isn't a clear number one winner. We did the iPhone, but Jack, technically there are three times as many Android users globally. So is iPhone really number one? But there is one product that has an undisputed champion. One product that's been on top and stayed on top, ironically, by staying under your bottom. The Tommy Bahama Beach Chair. If you've been to the beach in the last 15 years, you've probably noticed there's two types of beach chairs. The Tommy Bahama Beach Chair, and then all the rest.
Starting point is 00:01:35 Oh, and you can spot the Tommy Bahama Beach Chair by its colorful exotic patterns, much like the island business casual shirts that the company is known for. But what really distinguishes this beach chair is all the bells and whistles. It has a pillow, it has a side pouch, it has a built-in cooler, it can lay down flat.
Starting point is 00:01:53 So it's actually also a beach bed. Jack, this is an engineering marvel. It folds up into a backpack so beach goers can carry the rest of their seaside gear in both hands. We swear this isn't sponsored content. We're just both huge fans of this chair. The Tommy Bahama Beach Chair commands 75% of the market, with around 2 million chairs sold every year.
Starting point is 00:02:17 And these chairs first debuted in 2009. After Tommy Bahama, the company had already been in business for over a decade. To tell the story of this chair, we'll need to get into the origins of Mr. Bahama himself, who by the way, is not a real person. The company though, was founded in the early nineties by a couple of besties in the second acts of their careers. This duo worked hard, ironically,
Starting point is 00:02:40 by building a brand all about not working. No shoes, no job, no problem. Tommy Bahama's target audience is boomers, but this chair has become a millennial obsession. This is the story of how Tommy Bahama bounced back from a rocky start to become the go-to uniform for relaxed ads, the first name in beach chairs, and a global branding empire worth close to two billion bucks.
Starting point is 00:03:05 And we'll tell you why this iconic beach chair almost never happened, until one tenacious exec fought her boss for her best idea. We'll hear why startup founders are more than just hoodie-wearing tech bros, and why lifestyle branding is like writing a great novel. Just make sure to brush off the sand before you put the beach chair back in the car. Here's why Tommy Bahama's beach chair is the best idea yet. From Wondery and T-Boy, I'm Nick Martell. And I'm Jack Gravici-Kramer.
Starting point is 00:03:34 And this is the best idea yet. The untold origin stories of the products you're obsessed with. And the bold risk takers who made them go viral. Redacted, Declassified Mysteries is a new podcast hosted by me, Luke Lamanna. Each week I dive into the hidden truths behind the world's most powerful institutions. From covert government experiments to bizarre assassination attempts, follow Redacted on the Wondery app or wherever you get your podcasts. Burgers and dogs sizzle on the grill as a portable radio plays classic rock. Waves gently lap the white sand beach below the deck of a cozy beach house in the chill Snowbird town of Naples, Florida.
Starting point is 00:04:46 The sun is just starting to set, turning the sky a fiery red. Over on the deck, two 40 something couples are sipping on homemade Mai ties as the warm Gulf breeze ruffles their hair. The wives, they're chatting and watching the fishing boats go by as their husbands are staring at the grill flames. And then they circle back to their favorite subject, work. And how amazing it would be to never go back to work. By this time in the mid 1980s, the husbands, Bob Enfield and Tony Margolis, aren't ready to retire yet. Bob, he's got a thick head of hair already turning silver and a tan it took him all vacation to cultivate. Tony, on the other hand, he's got dark hair.
Starting point is 00:05:18 It's a little more sparse on the head, but he's got a 200 watt incandescent smile that he flashes when he's trying to catch the bartender's attention. The two have been friends since 1969 when they were both managers at a clothing company that no longer exists. Well these days, they're actually still working together over at a Seattle based clothing brand called Janera. But right now, they're enjoying the last few moments of their vacation. They're at Tony's beach house, but Bob and his wife have a beach house too,
Starting point is 00:05:45 just up the shore. These couples love the vacay lifestyle. And they dream of a day when they can throw their neckties into the Gulf of Mexico and never go back to the office again. And this daydream becomes such an obsession that Bob and Tony start riffing as they flip the burger patties.
Starting point is 00:06:02 Imagine a fictional character who could actually live the life that we could only dream of. Yeah, yeah, a middle-aged guy, but like an active middle-aged guy. Like picture some guy who's playing 18 holes in the morning and then taking the mastercraft out on the water with the usual crowd for sunset. And this guy, he's got a trust fund that he never discusses, but it means he never has to go back to work. Actually, not just a trust fund. This made up guy has an inheritance from his late parents who abandoned him in a coconut
Starting point is 00:06:33 field when he was a boy. This guy who they're envisioning is a full grown man with an ideal island lifestyle. Part Jimmy Buffett, part James Bond. He drinks Red Stripe and smokes hand rolled cigars. Bob even comes up with a name for this make-believe hero of theirs. Tommy Bahama. It's got a nice ring to it. Bob and Tony end up jotting down the details of Tommy on a legal pad. Writing Tommy's backstory is fun, but at first, his purpose isn't totally clear. Was this a branding exercise? Was it the start of a new business idea? Is this like a
Starting point is 00:07:05 character from an Elmore Leonard novel? Like what was the point of this? They're not sure. Maybe he's just fun to talk about. The man on permanent vacation. And then, well, they simply drop it. Tommy B is just an inside joke between the two of them. The legal pad gets tucked away into some desk and Bob and Tony just move on with their lives until one very tough week at the office in 1992. We mentioned that Bob and Tony work at a company called Genera. It's a company known for hyper color, a type of color-changing fabric that has a brief viral moment in 1991. Apparently they sold $50 million worth of T-shirts in a single three month window.
Starting point is 00:07:47 But then the hype faded immediately. And within a year, Janera is suddenly filing for bankruptcy. And Bob and Tony are faced with unemployment in the age of 50. So with no prospects, Tony asks Bob, hey Bob, you still have the stuff on that island guy? Funny you should ask, cause you know what?
Starting point is 00:08:03 Bob does still have it. So Bob digs out that legal pad from his desk drawer and dusts off all those notes. All that island guy lore they came up with, why not make it the basis of a new clothing brand named for Mr. Coconut himself, Tommy Bahama? Now their first logo is not a coconut, but a palm tree nestled like a middle initial
Starting point is 00:08:24 between Tommy's first and last names. But the brand's mascot, brand ambassador, and style guru is Tommy himself. If you can picture Tommy wearing it on the deck of a catamaran, it's in the collection. And we're not talking fishing vests and cargoes, are we, Jack? Not at all. They hone in on the leisure category. This Tommy will be upscale casual.
Starting point is 00:08:44 Silk shirts, linen trousers, sandals, no socks. Okay, should be simple, right? These guys just draw up the clothing, do the designs, get this stuff made. But despite having two lifetimes worth of experience in the clothing industry, neither Bob nor Tony are designers. They've both been on the managerial track, so they're going to need help translating their pretend character's wardrobe into an IRL clothing line. They reach out to their buddy and colleague, a man 15 years their junior with a strong chin and an even stronger sense of style.
Starting point is 00:09:15 His name is Lucio De La Gasparina. Now, they don't just hire Lucio, they actually bring him in as a third co-founder and resident designer. And what Lucio designs for Tommy can be described as elegant tropical clothing for men with disposable incomes and approaching middle-age. Comfortable, loose-fitting shorts, tailored, flattering pants, and their signature product, the camp shirt. Jack, can I go full Anna Wintour on you for a second? Do it. Okay, the camp shirt. That's actually short for Camp Collar shirt,
Starting point is 00:09:45 a style of short sleeve button down that can be traced all the way back to Filipino and Cuban men's fashion from the late 1800s. It's a cut kind of like a bowling shirt, but more breathable. Ernest Hemingway? Yeah, he would rock these things hard. Now, Tommy's not a rules guy by any mean, but our co-founders do establish some brand guidelines around the original Tommy Bahama shirt. First, it'll be 100% silk. Second, it'll feature bright flowery patterns evoking the flora of a Caribbean getaway. And third, and most strategically,
Starting point is 00:10:18 the shirt will use vanity sizing. This is when the sizes are deflated to make it appear like you are one size smaller than you actually are. Vanity sizing shows a good understanding of their target audience and that sales comes down to psychology. These are guys who maybe remember themselves as wearing a medium, even if their bellies have grown into a large. Tommy Bahama does not want you stressing about your waistline. He doesn't want you to stress about anything. In fact, after all, you're on vacation when you're wearing Tommy Bahama.
Starting point is 00:10:50 As for our three founders, Bob Enfield, Tony Margolis, and Lucio Dalla Gasparina, they're not stressing either, even though they have some challenges to overcome. For one, all three of them live thousands of miles apart. Lucio is going to oversee production and design over in Seattle, a city that's home to lots of apparel companies. So there's already infrastructure there, an experienced talent pool, and plenty of leftover thread. Meanwhile, Tony will act as the president and the CEO from his home in New York City. And Bob, he'll handle sales and marketing from his home in Orono, Minnesota. They're building a distributed company
Starting point is 00:11:25 across three different time zones, even though this is the PZE, the pre-Zoom era. So up next, Jack, we've got the people in place. We've got the product in place. Let's talk money. Because anytime you launch a business, you're gonna need some startup capital. You also need someone to make that product.
Starting point is 00:11:41 And here is where the Tommy Bahama trio get really smart. These three are able to raise $1.5 million through their friends and family. But then, through their contacts in the garment world, they find a factory in Hong Kong that's willing to pony up some cash as well and provide the manufacturing support. They're feeding two birds with one scone.
Starting point is 00:12:01 Add all this up and they are launching their company with a pretty significant war chest of about two million bucks. That's over $4 million adjusted for inflation today. The actual name for their company is Viewpoint International, but that's not important right now. They launched the Tommy Bahama brand officially in 1993.
Starting point is 00:12:20 Bob, Tony and Lucio, they assume that they're gonna be profitable within a year. But you know what they say about assuming. Don't ever do it. Launching a lifestyle brand based off a fictional middle-aged male character ain't as easy as flipping those burgers in Naples. This part often gets left out of the fashion history books. But despite their strong infrastructure, the founder's years of expertise, and a $2 million runway, Tommy Bahamas spends the first two years on the edge of disaster.
Starting point is 00:12:50 And we can chalk it all up to three big mistakes. Mistake number one, overpaid. These guys, they simply pay themselves too much. They're all coming from six-figure executive positions. So naturally, they pay themselves six-figure salaries. But this startup doesn't really have the capital to sustain that for long. $2 million doesn't go as far when as much of a quarter of it is tied up in executive pay for your founders.
Starting point is 00:13:14 Not a write-off, guys. Mistake number two, over-clothed. They actually launched three clothing lines all at once. There's Tommy B's, of course, for middle-aged vacationers, but they also launch a line of teenage skater boy clothes called gear for urban training. Is this an April Fool's joke gone wrong? This ain't gonna work man. And finally mistake number three. It involves their distribution strategy. How they're getting their products in front of people. Okay if you heard our Juicy Couture track suit episode, you'll remember that Juicy built their brand by selling to small boutiques
Starting point is 00:13:49 at first. This let them build relationships with tastemakers and bespoke retail buyers without getting overwhelmed by massive orders that they couldn't keep up with if they'd partnered with department stores. But Bob, Tony and Lucio, they say, forget the small boutiques. We're going to leapfrog straight to the big leagues, big department stores. But Bob, Tony, and Lucio, they said, forget the small boutiques. We're going to leapfrog straight to the big leagues, big department stores. These guys considered themselves seasoned pros. They had decades of retail experience, so they were used to dealing with the big guys. But here's the problem, Jack. As a label, Tommy Bahama is a total unknown. Big department store chains, they don't like taking risks on an unproven brand named after some fake dude. That is not how Bloom is does business. It looks like Tommy Bahama might be sent off into the sunset and shut down before it even
Starting point is 00:14:33 gets off the ground. The guys are desperate to save the company. So finally, they swallow their pride, they switch strategies, and they start selling to small stores instead of department stores. There we go. Smart pivot. Little by little, boutique by boutique, Tommy Bahamas becomes a trusted menswear brand for a relaxed beachfront living. Two years into their venture, their burn rate has slowed, meaning they're no longer losing cash like a drunken sailor on shore leave.
Starting point is 00:15:01 Our co-founders have started to build deep relationships with men's shops in the sandy coastal resort towns where Tommy Bahama would probably shop himself if he actually existed. But it is not enough to just stop losing money. They need to start making money and they need to do it fast. So we think that what the Tommy Bahama boys do next is gonna surprise you.
Starting point is 00:15:24 So we think that what the Tommy Bahama boys do next is gonna surprise you Welcome aboard via rail, please sit and enjoy Please sit and sip play post taste view and Enjoy via rail Love the way. The room is filled with rows of workers, but no one is looking up. Dozens of heads are bowed, concentrating as they feed bolts of cloth through sewing machines. Their feet press gently on pedals. The bobbins spin rhythmically. sewing machines, their feet pressed gently on pedals, the bobbins spin rhythmically. It's surprisingly quiet on the factory floor of this Hong Kong clothing manufacturer.
Starting point is 00:16:10 It's also brighter as the windows bathe the rows of sewing machines in natural light. This factory is churning out hundreds of pieces every hour, all items that our co-founders Bob, Tony, and Lucio plan to sell. But there isn't a single silky button-down shirt in sight. No hibiscus prints, not even a measly palm tree. The items getting folded, stacked and boxed up for shipping are plain pleated khakis. Now, ironically, for a lifestyle brand with such an iconic beach look, the first truly profitable thing that Tommy Bahama does is create a private label division, making basic clothes for some other label to be sold at a random 400 store
Starting point is 00:16:52 chain. Think of this gig like a professor taking a night job as a janitor just to make ends meet. Kind of ironic survival work because Tommy Bahama is all about permanent vacation and plain khakis. Yeah, that definitely screams work week. Plain khaki pants aren't their dream product. It's just a way to pay the bills as Tommy Bahama keeps building its reputation and its client base across the coastal towns of America.
Starting point is 00:17:19 And at the same time they take on this private label work, the Tommy co-founders also reduce their own salaries and they kill off those other failed clothing lines. By the end of 1994, they're finally in the black. Not only that, they have about $2 million to spend on some marketing for Tommy Bahama. So the first question Bob, Tony and Lucio asked themselves, what kind of marketing should we spend on? Well, we could do a glossy ad campaign for the pages of GQ, or they could shoot a TV commercial, maybe featuring some namey celebrity. How would Brad Pitt look in Tommy Bala? I think we'd all like to know that. But Nick, all these fancy marketing ideas, they sound expensive. And these brand advertising campaigns, there's no clear ROI.
Starting point is 00:18:03 Also, Jack, they feel a bit conventional, like TV ads, leave that to the gap. So instead, Bob, Tony, and Lucio start channeling Tommy Bahama's brain, his mindset, his values, and they hatch a wild idea to raise the Tommy B profile in a way their brand's fictional namesake might dig. The plan starts perfectly normally
Starting point is 00:18:24 by opening a standalone Tommy Bahama retail store. Remember, previously they'd been selling Tommy Bahama clothes wholesale for other stores to sell. But this would be a brick and mortar shop all their own. Now of course, an entire retail store is way more expensive than a print ad in GQ. But it's also an investment with the potential to become a profit center instead of a cost center. Bob, Tony, and Lucio find a space in Naples, Florida for their flagship Tommy Bahama store.
Starting point is 00:18:53 It's not too far from Tony and Bob's beach homes where they had their very first Tommy brainstorm. And because Florida real estate is plentiful and cheap in the 1990s, they end up with way more acreage than they needed. These guys set out to find a 2,000 square foot space, but they end up with five times that. That's right, a 10,000 square foot cavern. What are they going to do with all this extra space, man? So then they ask themselves the one question that has never led them astray. But then they ask themselves the one question that has never led them astray. The question that has informed every single thing about their brand. WWTD.
Starting point is 00:19:32 What would Tommy do? Bob, Tony, and Lucio, they all pretend as if Tommy is a real guy. It's like they're method actors getting in character channeling their inner Tommy. And while they can't literally call him up on the phone, they do have a pretty good feel for his tastes and his wishes. They'll let the brand make this decision. The brand decides, hey, if Tommy's going to have a beach pad, then he's going to want some home goods, like some rugs, some furniture, maybe an ottoman or two.
Starting point is 00:20:01 Why not refreshments too? Why not a juice bar? Put it right in the store. Let people get some vitamin C while they're shopping. Wait, scratch that. Forget vitamin C. People want vitamin B, as in Bacardi. Why not put a tiki bar in the middle of the store?
Starting point is 00:20:18 Sip on a daiquiri while you're waiting on that changing room. That means you aren't really waiting, are you, man? Even better. How about a daiquiri and a meal? I like it. Why not have steel drums playing with umbrellas in the drinks waiting on that changing room, that means you aren't really waiting, are you man? Even better. How about a daiquiri and a meal? I like it. Why not have steel drums playing with umbrellas in the drinks and ceviche on Wednesdays? And if there's a wait for your table, just go spend 25 or 30 minutes shopping for bucket
Starting point is 00:20:35 hats in the store. What would Tommy do? WWTD. So, in November 1995, just as the geese and the retirees are flying south for the winter, Tommy Bahama flings open the doors of its first ever retail store that is way more than a store. And just three months later, order up some fish tacos because the restaurant is open too, baby. This is an insane retail concept at the time. Like, if the Olive Garden merged with a Macy's, but you know what? It works. And since restaurants tend to be open late, the retail side gets to
Starting point is 00:21:11 keep late night hours too, which grows sales even more. Crucially, this Tommy Bahamas restaurant is located on 3rd Street in Naples, which is the shopping and dining district that every vacationer goes to on Friday night. They've chosen the location where their precise target customers, people on a beach vacation, are both hungry and ready to shop. And now Jack, I'm not sure how good Tommy is with math, but can we look at his numbers for a moment? Building the restaurant costs $1.2 million in 1995. That's less than their initial $2 million advertising budget. Not only that, Jack, but sales at this retail store slash restaurant hit another $2 million in year one alone, much of which they credit to the restaurant pulling in new
Starting point is 00:21:58 customers in the evenings. By 2001, sales from the Tommy Storsterats climb to over $7 million annually. The restaurants are double-dipping. They're the commercial that pays for itself. Oh, Tommy. He's as smart as he is fictional. But to hear what he does next, you're going to want to sit down. Literally. Imagine the sun-drenched beach house from the start of our story. The one where Bob and Tony first sipped Mai Tais, overcooked those burgers, and dreamed up Tommy Bahama. Well, we're back. But now, 20 years later, our three co-founders are raising glasses of champagne.
Starting point is 00:22:39 It's 2008, and Bob Enfield, Tony Margolis, and Lucio Dalla Gasparina have all decided to retire. They're finally going full Tommy. Nothing but deep tans, beachfront barbecues, and shuffleboard arguments for these three from now on. They actually wind up doing a bunch of charity work, but there's plenty of R&R to my ties too. Jack's been a great 16 year run for the brand
Starting point is 00:23:00 and its parent company. By 2008, the company's revenues are close to half a billion dollars thanks to strong sales and a very timely acquisition. Because five years earlier in 2003, the apparel conglomerate Oxford Industries acquired Tommy Bahama for $325 million. The merger was friendly. In fact, Oxford is run by an old buddy of Tony's, and the deal left all three co-founders in place to continue running the brand, only with fresh cash in their pockets from the sale. There's one little thing that they do change from the acquisition
Starting point is 00:23:34 deal. It comes with a new Tommy Bahama logo. This is when they get the jaunty Marlin that leaps into the air. Classic. From palm tree to Marlin and from a few notes scratched out on a legal pad to $325 million, not too shabby. But now, let's leave Bob, Tony, and Lucio to their fun runs in pickleball and say hello to Tommy Bahama's new brand president, Doug Wood. Doug has been at the company for seven years and he definitely understands the general Tommy vibe. With a wide smile, a shaved head, and a confident outlook, he is ready to lead Tommy Bahama into the future. Unfortunately, that future starts with the 2008 Great Recession. The biggest financial crisis since the Great Depression had a pretty big impact on American spending and style. Like no more McMansion houses. America is downsizing.
Starting point is 00:24:28 Casual luxury gets tossed out. Especially when your company's tagline is literally make life one long weekend. That sounds totally out of touch at this moment in the economy. And a recession that just sounds like losing your job. So this is the year that sales of Tommy's Resort Wear don't just fall for the first time. They drop by a staggering 40% after the 2008 crisis. It's home city of Naples, Florida. Dozens of new residential communities get abandoned, half-built, as money dries up and real estate values plunge.
Starting point is 00:25:00 The subprime mortgage bubble hits Tommy Bahama country hard. So our guy Doug's very first task, steer Tommy Bahama through this storm. And he decides to steer things in a counterintuitive direction. You see, most clothing brands know the economy's tough, money's tight, so they don't spend it. But Doug, he goes on a spending spree. More Tommy Bahama stores, more home goods, more restaurants, more e-commerce, more tequila baby and more limes.
Starting point is 00:25:29 Here is Doug's bet. People might not be able to afford that Caribbean getaway because of the recession, but they might be able to pretend they're on vacation by getting a swordfish steak at the Tommy Bahama restaurant in Tampa. Turn that vacation into a staycation. We've said it before, small, affordable luxuries actually fare pretty well during economic downturns because they replace bigger ticket spending. If you cancel a family trip to Disney, suddenly that day trip to Great
Starting point is 00:25:56 Wolf Lodge feels really affordable in comparison. It's retail therapy on a small scale. And it is in the midst of this major pivot that one Tommy Bahama executive proposes a new product. One that might meet customers where they're at in this new moment of austerity. It's the ultimate product market fit because it fits your backside when you're lounging. Jack, after seven years of us podcasting, it is finally that moment.
Starting point is 00:26:22 Are you ready for this? It's time to talk about the beach chair. Finally. The person behind the best-selling beach chair in history actually keeps a pretty low profile. She has a slight build, sandy colored hair, and a corporate sounding title. Chrisanne Ferchiato, Senior Vice President of Licensing for Tommy Bahama. Chrisann only has been at two companies in her entire career. One is Tommy Bahama and before that Ralph Lauren. And that should tell you two things. She understands the importance of a strong brand identity. And number two, Chrisann does not make moves casually. As the VP of licensing, it is Chrisann's job to ask,
Starting point is 00:27:06 does our name belong on X product? Will this be a good partnership? Will it represent us? Well, she is not going to pursue just any product. Chrisann is about one thing and one thing only, trust. Consumers usually can't tell whether a brand is actually making something or just sticking their name on someone else's product in a licensing deal. That's the whole point of licensing. Your brand name on a product means you stand by it. So if the product breaks down after a single wash, that can destroy your reputation. Licensing is 110% about trust.
Starting point is 00:27:41 The George Foreman grill worked great for George Foreman because it was a genuinely great grill. Air Jordan's Iconic worked out great for Jordan. Not so much Haley Welch's Hawk to a meme coin or Hulk Hogan's pasta mania restaurant. Got some quality control issues there. So yeah, Chrisann takes licensing very seriously, but she's got a proposal to put the Tommy Bahama brand on a product that she needs the president Doug Wood to hear. She's going to pitch a collab with the outdoor camping brand,
Starting point is 00:28:11 Shelter Logic, for, you guessed it, a beach chair. So there she is in Doug Wood's corner office, feeling a little like a vacuum cleaner salesman pitching a skeptical housewife. But Chrisanne plows ahead anyway. This chair has five reclined positions, including totally flat for sunbathing or propped upright for tailgating. The chair is lightweight to carry too. Check out these backpack straps, but it also supports weight up to 300 pounds. No body shaming here for our heavier customers.
Starting point is 00:28:44 Oh, and just feel this frame. It's so sturdy. It also supports weight up to 300 pounds. No body shaming here for our heavier customers. Oh, and just feel this frame. It's so sturdy. Nothing like those flimsy beach chairs you might be picking up over on the Jersey Shore. And it's got a cooler built in. It can fit an entire six pack. Or the side pocket can hold every essential item from your phone to a cold beverage to your buddy's phone.
Starting point is 00:29:03 Forget about a vacuum cleaner salesman, Jack. Chrisann is pitching this thing like a young Billy Mays. So after her best pitch for this beach chair, she leans forward to hear Doug's reply. And Doug says, no. Specifically, he says, how does that fit with our brand? I'm sorry, Doug. How does that not fit in with your brand? I mean, Jack, 16 years into their journey, Tommy Bahama has moved to be on silk shirts. They got swimwear. They got home goods.
Starting point is 00:29:31 They got an island-themed restaurant where you can crush a mahi-mahi and a mojito. How does a beach chair not totally mesh with this vibe? For Doug, the hangup isn't the chair itself. It's where he sees the chair being sold, at a sporting goods store. Tommy Bahama is a casual luxury brand. The shirts are pure silk, the pants are linen,
Starting point is 00:29:52 the duvets are 100% cotton. Doug just can't picture anything with their brand sitting next to polyblend tents and camping stoves. So Doug is basically seeing this camping gear company and thinking, this doesn't fit with Tommy. Like with partnerships, you're often going by feel. And for Doug, the feels just off. Even Tommy Bahamas founders thought about this back in the day.
Starting point is 00:30:14 Apparently, they had this epic argument once about whether the fictional Tommy would own a tie or not. They couldn't decide. And these are the guys who created Tommy. But I'm still team Chrisann Herejack. A beach chair just makes total sense for a beachy brand. And lucky for all of us, Chrisann sticks to her guns. When Doug Wood tells her that the beach chair is bad news, she replies with one sentence. It's a damn good chair. I like it.
Starting point is 00:30:42 But Chrisann has another bit of ammo in this fight. She points out that the chair's canvas fabric isn't just fabric. It's a billboard. The back of the chair is ideal for Tommy Bahama's jaunty Marlin logo and bright patterns. It's a way to differentiate from all the generic camping and beach chairs out there. And it's free ad space all across the beach for Tommy Bahama. This ain't just any chair. This is elevated beach lounging. And unlike with an actual billboard, this is a revenue driver, not a cost. Sort of like Tommy Bahama's retail stores in a quaint suburban neighborhood.
Starting point is 00:31:18 This has Doug thinking. Beach chairs that look like the classic Tommy Bahama shirts, that could be a good match. I can picture the hibiscus pattern already. WWTD. If Tommy Bahama were to sit in a beach chair, I guess this would be the beach chair. But Chrisanna is still not done. No she ain't. There's one more reason to say yes to this chair.
Starting point is 00:31:41 And it's actually just one word. But it's a powerful word. Yeah. And that word is Costco. Lamont Jones's world is shattered when his cousin dies in custody just weeks after entering prison. The official report says natural causes, but bruises and missing teeth tell a different story.
Starting point is 00:32:00 From Wondery comes Death County PA, a chilling true story of corruption and cover-ups that begins as one man's search for answers but soon reveals a disturbing pattern. Lamont's cousin's death is just one of many, and powerful forces are working to keep the truth buried. With never-before-heard interviews and shocking revelations, Death County PA pulls back the curtain on one of America's darkest institutional secrets. This isn't just another true crime story.
Starting point is 00:32:27 It's happening right now. Follow Death County PA on the Wondery app or wherever you get your podcasts. You can binge all episodes of Death County PA early and ad free right now by joining Wondery Plus. Look, we know Costco is a big deal. We did do a whole episode on their Kirkland Signature label. Man, I love that Costco episode. But here's how big Costco is. By 2009, Costco has more than 500 locations, 140,000 employees, and $70 billion in annual
Starting point is 00:33:04 sales. Jack, could you sprinkle on some context to what this deal would mean for our Tommy Bahama buddies? Costco wants to stock their stores with the Tommy Bahama Beach Chair. And the first order of chairs alone would be a guaranteed $250,000 in cash right now. 250 grand?
Starting point is 00:33:22 Goodbye a lot of Arnold Palmer's, man. In 2009, the Tommy Bahama guys are thinking, hey, in this economy, we'll take it. Tommy is short on cash right now because remember, sales dropped big during the financial crisis. 40%. That same financial crisis is sending more shoppers to discount clubs. So right now, Costco is the place to find customers. But Jack, even with these wonderful reasons you just listed to team up with Costco, the partnership does have some risk. Costco's industrial metal shelves and the no-frills displays? That's not exactly the retail environment Tommy Bahama is used to.
Starting point is 00:33:58 It's a far cry from the chilled-out sun-bleached wood aesthetics Tommy Bahama cultivates in their own stores. This is the exact brand mismatch Doug Wood had been trying to avoid. Tommy has been targeting the country club set. Not the wholesale club set. Yeah, 2000 thread count sheets, not 2000 count packs of diapers. So will Tommy Bahama Beach chairs resonate for bargain hunting customers? Or will it cheapen the Tommy Bahama brand?
Starting point is 00:34:24 Hanging out next to tubs of tuna fish and cases of mayonnaise? Well, fortunately, besties, we actually have some data that might put Doug's mind to ease. We know from our Kirkland episode that Costco's average shopper has a higher median income than folks who shop at other wholesale clubs. So a casual luxury label that is not necessarily out of place in a Costco aisle 6. We also know that Costco is extremely choosy about the products that occupy their shelf space. They don't want to overwhelm shoppers so they limit the varieties of every product that they offer. In other words they'll carry just one or two high quality beach chairs shining a spotlight
Starting point is 00:35:03 on whichever brand that they pick. Curation is queen at Costco. And all of these elements come together to spell one thing for the Tommy Bahama beach chair. Cha-ching. Yeah, sales of that chair, they take off immediately. Tommy doesn't report their sales numbers for this very first beach season, but Tommy will come to sell about 2 million chairs every single year. In addition to the 2 million chairs that they sell, they also sell 700,000 beach umbrellas, and those are sold separately. At that point, Tommy Bahama is estimated to dominate 80% of the market for beach chairs over 30 bucks. That's approaching Google level dominance. Just in this past year, the New York Times Wirecutter Review Service ranked the Tommy Bahama Beach Chair as best in category. And so did CNN. This is the rare case where the
Starting point is 00:35:55 product is beloved both by the critics and by the mass public. Yeah, the chair is both the best rated and the most popular. I mean, if this chair were a high school senior, it would win most likely to succeed and best hair. And Costco doesn't just carry this chair during beach season. They carry it all year round. It was actually this very fact that made us want to cover this chair in the first place because Costco figures out people don't just need a good chair for the beach. They need them for football season. Oh, and for grilling season and for hot chocolate season. No matter what time of the year, their customers find reasons to buy this chair. Costco is thinking three steps ahead, man.
Starting point is 00:36:35 The very act of sitting down for multiple hours outside, that is not limited to your two weeks of vacation. Seasonality, never heard of it. Tommy Bahama has since then gone on to sell 27 million chairs and counting. It is a key piece to what is now a 32 year old lifestyle brand Empire worth $1.7 billion, covering retail, wholesale, hospitality, and licensing. In 2023, Tommy Bahama even opened up their own Palm Springs resort. What would Tommy do?
Starting point is 00:37:07 Probably run his own hotel. Because Tommy's a little jealous of Margaritaville. And he would probably also order the room service. Can we just say it's a good thing President Doug Wood had a sense of humor about doubting the beach chair early on. He talks about it in interviews and he gives Chrisann Ferchiato full credit for her persistence. Hey, it's easy to laugh at yourself when you're laughing all the way to the bank.
Starting point is 00:37:31 All right, Nick, I'm done evangelizing. I've converted you. You're part of the tribe now. Probably have a Tommy Bahama Beach chair in your shopping cart right now. Yeah, now that I know you own seven of these things. What is your takeaway on the Tommy Bahama beach chair? Not all founders wear hoodies. When you say the words startup founder, you often
Starting point is 00:37:52 associate that with like a 20 year old Ivy League dropout in a hoodie and sandals. Your Zucks, your Gates, your Jobses. But the average age of a startup founder is actually 42 because the qualities that factor into a startup success are things an experienced worker is more likely to have. Like industry expertise, relationships, connections. Don't forget startup capital. A 40 year old is more likely than a 20 year old to have savings set aside to invest in a new company.
Starting point is 00:38:19 Totally. Mark Zuckerberg launched Facebook by moving fast and breaking things. But that's not on the business plan for most startups. For every company that starts out of a college dorm, there's more that start because a few coworkers decide to spin off an idea and do their own thing, just like Bob, Tony, and Lucio. So get down with those middle-aged founder vibes because not all founders wear hoodies.
Starting point is 00:38:42 But Jack, what about you? What's your takeaway on the Tommy Bahama Beach Chair? When it comes to crafting your brand identity, be a Hemingway. We all know what Tommy Bahama stands for. Relaxation, chill vibes, and grilling on the beach. But you only get to that strong brand identity by creating a touchstone that embodies those values. And Tommy Bahama's founders created that touchstone by crafting a fictional values. And Tommy Bahamas founders created that
Starting point is 00:39:05 touchstone by crafting a fictional character right out of a novel. They literally brainstormed every detail of this fake dude's life, his preferences, tastes, choices, as if they were real. It's a really efficient way to build your brand guidelines without an 800 page slide deck. And if you're creating a fictional character to be your mascot, do what any good author does. Make that character three dimensional. Yeah, the founders, they would ask, what would Tommy do? And that unlocked all sorts of unexpected brand integrations,
Starting point is 00:39:35 like restaurants and hotels. By contrast, Doug would almost miss the beach chair because he was focused on the narrow question of sporting goods stores instead of going back to Tommy. Jack it is hard to imagine the fictional Tommy Bahama not loving a brightly patterned beach chair with a pocket for a six-pack. Either way though when it comes to crafting your brand identity be a Hemingway. Before we go it is time for our absolute favorite part of the show the best facts yet. These are the hero stats,
Starting point is 00:40:05 the facts, and the surprises we discovered in our research but couldn't fit into the story. All right, Jack, you already got beach chair access over here. Why don't you hit us off over there? You look very comfortable. I have a Nana who lives in Naples. She's wonderful. She's listening right now. Hey, Nana. She's the best, by the way. So yes, I've been to the OG Tomahama restaurant. Yeah. It's actually where I had my first group. We got to put a plaque up there, Jack. Here's another one for you.
Starting point is 00:40:28 Tommy Bahama has been known to crash a movie set or two. Like this moment, from Balm and Star go to Vista Del Mar. There are so many gorgeous men there. We're talking Tommy Bahama from head to toe. Tommy Bahama. WWTD Jack, what would Tommy do? He would keep selling those beach chairs. And that, my friends, is why the Tommy Bahama beach chair is the best idea yet.
Starting point is 00:40:56 Coming up on the next episode of the best idea yet, dig up that old toy chest and find your Claude the crab. Or maybe your Mystic the unicorn. How about your Batdie the bat? Because we're talking beanie babies. Hey, if you have a product you're obsessed with, but you wish you knew the backstory, drop us a comment. We'll look into it for you. Oh, and while you're at it, give us a rating and review. Five stars helps us grow the show. Follow the best idea yet on the Wondery app, Amazon Music, or wherever you get your podcasts.
Starting point is 00:41:25 You can listen to every episode of The Best Idea Yet early and ad free right now by joining Wondery Plus in the Wondery app or on Apple podcasts. Before you go, tell us about yourself by filling out a short survey at Wondery.com slash survey. The Best Idea Yet is a production of Wondery hosted by me, Nick Martell and me, Jack Kraviche Kramer. Our senior producers are Matt Beagle and Chris Gaultier. Peter Arcuni is our additional senior producer. Our senior managing producer is Nick Ryan and Taylor Sniffin is our managing producer.
Starting point is 00:41:59 Our producer is H. Conley. Research by Brent Corson. This episode was written and produced by Katie Clark Gray. We use many sources in our research, including the 2001 feature, A Brand is Born, by Mike Hoffman for Inc. And it's not just you. Tommy Bahama Beach chairs are everywhere. By Nathaniel Meyerson for CNN Business.
Starting point is 00:42:19 Sound design and mixing by C.J. Drommeler. Fact checking by Brian Pogden. Music supervision by Scott Velazquez and Jolina Garcia for Freesan Sync. Our theme song is Got That Feeling Again by Black Alack. Executive producers for Nick and Jack Studios are me, Nick Martel.
Starting point is 00:42:34 And me, Jack Ravici Kramer. Executive producers for Wondery are Dave Easton, Jenny Lauer Beckman, Aaron O'Flaherty, and Marshall Lewis. Clarity and Marshall Lewis. As a contractor for the NSA, Edward Snowden had access to a range of top-secret government programs. But as he learned more about these clandestine operations, he came to understand a devastating secret. The government was conducting mass surveillance on its own citizens. Hi, I'm Lindsay Graham, the host of Wondry Show American Scandal. We bring to life some of the biggest controversies in U.S. history.
Starting point is 00:43:10 Presidential lies, environmental disasters, corporate fraud. In our latest series, whistleblower Edward Snowden changes the national conversation about privacy on the internet as he risks his own freedom and his family's well-being. Follow American Scandal on the Wondry app or wherever you get your podcasts. Listen to all episodes ad free and be the first to binge the newest season only on Wondry+. You can join Wondry Plus in the Wondry app,
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