On the Lookout
Why lighthouses? When Donald Devine retired in 1993 from his job as the president of an abrasive ceramics company, he started looking for entrepreneurial opportunities. At the time, two of his associates were operating a retail store specializing in lighthouse-related products. To Devine, lighthouses seemed to be an interesting niche product, and he became fascinated with the idea of selling related merchandise.
“Many people recognize the historical significance of lighthouses and are actively making sure the Coast Guard retains them,” Devine recounts.
Starting the catalog: After reading a Forbes magazine article about Coldwater Creek, he understood that the catalog industry was a difficult one in which to get started. So he talked to various catalog owners and performed market studies on the business. “By the end of 1993, I compiled my research, and in February 1994, we formed a corporation and were off and running.”
Today, Lighthouse Depot publishes 12 catalogs annually. “Others in the industry cautioned us, but we went ahead and had the good fortune of being profitable from day one.”
Biggest catalog challenge: Devine continually searches for lighthouse buffs. He and his staff use various advertising media to prospect for enthusiasts. “The lifetime value of their relationships is very valuable to the business,” he notes.
Grew up in: Belmont, MA
Education: Devine has a degree in finance from Boston University.
Role model: It seems the apple didn’t fall far from the tree. Devine’s father had his own business for many years. “I developed a keen interest from him,” Devine explains.
Keys to catalog success:
Customer service. “Our philosophy ... is to simulate the best in the business, to follow leaders such as L.L. Bean, for example.”
Devine stresses the importance of employee training. “If a customer is dissatisfied, we’ll take care of it immediately. We’re totally committed to servicing customers.”
Merchandising. “In a niche business, merchandising is the name of the game,” says Devine. “You have to put fresh product in front of customers; buffs are always looking for something new and different.”
Technology. The Lighthouse Depot staff is quick to adopt and pursue new technologies. “More than 30 percent of our business now comes from the Internet,” says Devine.
Favorite catalog: “Coldwater Creek really patented my whole business,” Devine notes.
Primary characteristics: Devine says he tries to be honest and straightforward, objective and fair with people.
Noelle Buoncristiano is a freelance writer based in Philadelphia.