John H. Patterson and the early sales practices of NCR

Abstract

Purpose

This paper aims to explore not only the greatness of Patterson but also some of the mistakes he made along the way.

Design/methodology/approach

The study traces the career of John Patterson, founder and president of the National Cash Register (NCR) from 1884 to 1922. Data from many different sources, some only recently available through the HathiTrust Digital Library, are analyzed to provide a systematic and focused examination of Patterson’s greatness, as well as some errors in judgment he during his lengthy leadership at NCR.

Findings

John Patterson recognized the potential development of a new global industry before it existed and went to work creating it. After he bought the original patents for the cash register, he spent huge sums on research and development and secured hundreds of additional patents on the device. He also spent a fortune on educational advertising to create market demand where none previously existed and invested heavily in developing his salesforce through a strong focus on training, professionalism and high commissions. He also engaged in many unsavory sales practices to try to keep others from encroaching on what he considered his exclusive right to the cash register market. At one point, he was convicted in a criminal proceeding for those efforts and sentenced to prison.

Originality/value

This is the first paper to provide a balanced review of Patterson’s contributions to the business history of that era from a sales and marketing perspective. The paper may be of interest to marketing scholars and practitioners, as well as business historians.

Citation

Hawes, J.M. (2021), "John H. Patterson and the early sales practices of NCR", Journal of Historical Research in Marketing, Vol. 13 No. 1, pp. 44-62. https://doi.org/10.1108/JHRM-09-2020-0042