Frederick Tudor AKA Boston’s Icekings.
Born in september 1783, Frederick Tudor is the third son of Willam Tudor a wealthy boston lawyer. He is also known as the Ice Kings of Boston thanks to his bright and original idea. Indeed, while visiting the Carribean, he thought about selling ice oversea to warmer countries by exploiting the ponds of New England. At first glance, this idea may seem a little out of place and very challenging. How could you ship ice oversea without them melting especially in 1805. We have to remember that means of transportation wasn’t as developped as nowadays. The travelling from one point to another was really long since boats were much slower in this period. Indeed, the real challenge was to keep his ice from melting before customers had a chance to purchase it. Also an interesting detail is that he didn’t produce the ice, he rather took advantage of Massachussets natural ressources and cold weather in order to extract ice and water. However, Frederic Tudor knew that if he were successful, he would be able to make a huge fortune out of his business very fast and without competition. But before archieving the impossible, Frederick Tudor went through a lot of issue.
First attempts and failures
His first attempt was to sell 80 tons of ice in Martinique which is 1500 miles away from Boston. He bought his first brig named « Favorite » in 1806 and this latter left in the 10th of february. The trip was rather long and it would take three weeks to complete the journey to Martinique. Therefore, a considerable amount of the ice melted, less than half the ice quantity, resulting in 4500$ loss overall. However, his first delivery wasn’t a complete failure since Tudor was able to sell some of the ice and proved that selling ice oversea is not impossible. However many competitor were attracted to steal his idea and exploiting the ice business. Later, he’s encounting severe financial issue with the loss of 3 shipments to Havana. He only started to make profit in 1810 with 7400$ of gross sells. Then it increased to 9000$. However, he was overwhelmed with debts and pursued by creditors. His balance was against him: $10,3 72 out of a total of $38,772. Since his benefit couldn’t outweight his debt, he spend a year in debtor’s prison from 1812 to 1813.
Success Story
His personal experience from “ice shipping” taught him how to increase the efficiency of his business not only in shipping but also in other field as well such as transportation and stocking. These two factors were crucial for the ice conservation. He began to stock the ice into “wooden icehouses” which got a better insulation than the others houses. Moreover, he found out that stocking ice in a huge amount would slow down the melting process. He also replaced the hay he used for the insulation by sawdust which is more efficient. Therefore, Frederick Tudor was back in business again. And tried to exploit new business area such as fruit shipping. However, this idea has been revealed to be a complete disaster since fruits would rot before arriving to destination resulting in debt again. He first thought that the market wouldn’t work at all but to his great surprise, he discovered that Americans were also interested in ice as well. Indeed only elite had ice for their guest. This new business was very interesting for Frederick Tudor since it was so much easier to ship the ice to those regions than the other island. He then decided to focus on those Customer by giving them free ice in order to make them loyal customers. This technics is often use by infamous drugs dealers and reveals to be very successful. In 1825, Frederick Tudor improved his business thanks to Nathaniel Wyeth who found a new way to cut the ice from Boston lakes. It was a big revolution and ice conservation was no longer a problem for the business man.
Finally, his ice business worked so well and he became very wealthy. From this simple and crazy idea, Frederick Tudor was able to archeive the impossible : selling ice oversea and most of all, make a fourtune out of it by learning from his previous mistake and adapting to his environment. Many competitors are now interested in the ice market and tried to follow Frederick Tudor footsteps.
The key to unlock the success
In this part of the essay, I would like to focus quickly on several key factors that led him to success and famousness. Indeed, Frederick Tudor was no ordinary businessman.
He first had a great a sense of observation of the weather. This latter was for him a matter of business: as the season of cold approached, and as long as it continued, he watched and noted the thermometer. Indeed, Boston during cold season is freezing col and filled with ice. Although people thought it was a joke, he took the challenge seriously. Otherwise he could never have pulled out the harvest that gave him his name of " Ice King."
" The frost covers the windows, the wheels creak, the boys run, winter rules, and $50,000 worth of Ice floats for me upon Fresh Pond." (From Tudor's Ice House Diary)
He also had this great idea of marketing mentioned above. Applied by drugs dealer, you first appeal your customers with free sample and make them loyal customers
His first attempt of ice shipping wasn’t a success but neither a total disaster. What impresses me the most was his ability to stay on track and dared to continue his business by learning from his previous mistake.
Sources :
http://homepage.mac.com/robbyg/tudorice/iMovieTheater20.html
http://en.wikipedia.org/wiki/Frederic_Tudor
http://www.iceharvestingusa.com
http://www.failuremag.com/arch_history_cool_customer.html