Hank [BS/MSEE,
MSM $$$, Ph.D. Mgmt] teaches After classes on Thursday, October 11, 2007, I will be traveling to the Edward Lowe Foundation’s Billieville
Complex in Cassopolis, MI with a team of four Krannert seniors. While there, teams from Ball State, Butler, U of Evansville, IU, Notre Dame, Rose-Hulman and Purdue will formulate and present a 15-minute “perfect investment pitch” for assigned real high tech ventures that are seeking second round funding. Like Porsche racing 
, competition such as this strengthens incentives to innovate and ensures that resources are allocated to the most efficient firms. Wish us the heaviest foot, the clearest heads, the fastest car, and the checkered flag!
But wait, what’s this deal named the Edward Lowe Foundation? What’s their story? This is what the foundation’s web site has to say about Ed:
“After his Navy duty, Ed Lowe returned to Cassopolis, Michigan and joined his father’s company, which sold industrial absorbents, including sawdust and an absorbent clay called fuller’s earth. In 1947 Ed was approached by a neighbor who was tired of using ashes in her cat’s litter box and the resulting sooty paw prints. [Problem statement] She asked for some sand, but Ed suggested clay instead. Soon the neighbor would use nothing else, noting that the clay was much more absorbent than sand and didn’t track all over the house. [First evangelist]
Creating the Market
Ed had a hunch [Entrepreneurial insight] that other cat owners also would love his new cat-box filler, so he filled 10 brown bags with clay, 
wrote the name “Kitty Litter” on them and called on the local pet store. With sand available for next to nothing, the shop owner doubted anyone would pay 65 cents for a five-pound bag of Kitty Litter. “So give it away,” Ed told him. Soon customers were asking for more — and they were willing to pay for it. [Pricing]
Product Quality
Quality was always a priority [Wouldn't normally associate with cat poop?] with Ed, and his products set the standards for the industry. Edward Lowe Industries was the only company of its kind with complete innovation and product-development centers. This included a “cattery” at Big Rock Valley, which was home to 120 felines who “worked” to assist in the development of new products. The cattery also boasted a fully staffed cat-care clinic, as well as an animal-behavior facility that permitted 24-hour television monitoring of resident cats. In the late 1980s, this operation relocated to Cape Girardeau, Missouri, where company scientists at a modern research and development center continually worked to upgrade existing products and develop new ones.
The Edward Lowe Legacy
After creating a billion-dollar industry that established the cat as the nation’s most popular pet, Edward Lowe set his creative sights on another goal — fostering and nurturing the American entrepreneur [Passion]. As a result, Ed committed a good part of his fortune to create “… a whole campus for entrepreneurs” at a private 2,500-acre complex outside his boyhood hometown of Cassopolis, Michigan. In 1991 he donated this estate for the headquarters of the Edward Lowe Foundation. ”
And now you know the rest of the story…… A billion-dollar industry was created based on problems generated by normal cat bodily functions! Hank
What Ed did in his entrepreneurial stages is the trend I have found for many successful entrepreneurs. This trend is, not necessarily making money right away, but getting their idea out to the people. By Ed asking the shop-keeper to give the kitty litter away was the greatest thing he could do. People loved his product, and were willing to spend the $.65 to have it. So what I have to take from this is that it’s shouldn’t always be about the money, but the benefit you could give to the people.
The Ed Lowe foundation competition sounds like a great opportunity. I sincerely hope that the Purdue team’s preparation is raised high enough to meet the opportunity. As far as Lowe, the entrepreneur, I wonder how much market research he did before he felt like it was a good idea to try to sell his clay kitty litter out of retail stores? Sounds like he lucked up a bit, as the story claims he had a “hunch.”
I don’t believe for a minute that he was JUST trying to “help” his neighbor. It seems like he got his neighbor to alpha test a product for free…I think he was a capitalist from day one.
wow, this is a great example of how an idea that we believe could have failed us. can return in hand us profit. It shows how we never know what types of resources are around us that can be put to some use or even be conducting some profit. It crazy how such simple solutions so problems can yield to be profitable for those who seek it . Dont you love beginning an entreprenuer??
Good Luck!! But i hope you won’t need it.
Ed’s story is a text-book example on how to become a successful entrepreneur. Ed penetrated the market by offering is product for free. Customers enjoyed their sample and continued to purchase the product. Ed continued to add value to his product by constantly conducting research and development on numerous cats. This story shows that what is one ‘thing’s’ trash is another man’s treasure.
This is a great example of how you cant overlook an idea. Cats are a popular pet and just about every cat owner that I know uses Kitty Litter for their litter box. It is funny that he stumbled upon this entrepreneurial venture because of cat waste but again, you cant pass up an opportunity if looks promising, no matter the type of product.
I am curious, what did the Purdue students come with. Was this the invention that throws the beer can. While that invention was cool, this award seems to be centered on inventions that also help society. Maybe not. Anyway, could you tell us a little about what company Purdue invented/ founded. thanks.
After reading the article, it is clear that Ed Lowe was more than just a dedicated and successful entrepreneur, but he was also a man of high character and a desire to give back. Whether it was giving his customers the best quality of Kitty Litter or donating a fortune to help build a campus for entrepreneurs, Lowe was always giving back. He remembered how difficult it was to become a successful businessman and wanted to lend a helping hand to those pursuing their dreams. Sure, creating and innovating a billion dollar market made Ed Lowe famous, but his legacy was formed because of the type of man he was and more people, and especially entrepreneurs, should be more aware of that.
Thanks for putting in all the buzzwords - they’ll add to my everyday knowledge of vocabulary!
I love this story, because I admire Ed’s confidence in his product. He was so convinced that the consumer would not only like it, but pay money for it, that he was willing to give it away in order to get his name out there. That is the confidence that I would aspire to achieve.
Oh yea, I almost forgot… good luck!
I think giving it out your product for free (if you can afford that)for a period of time is the best advertisment
bc everyone loves free stuff and who knows they might end up liking it…if its that good of an idea
This is an amazing story of entreprenuership! I wonder if Ed had even tried clay himself and if he even had cats of his own. This one insight ended up making billions of dollars. I also like how Ed is using his money and his story to inspire other entreprenuers. The competition sounds intriguing and I wish the Purdue team the best of luck!
This was a great way to get an idea out there that no one thought would work. I think it was cool that Ed said to just give it away which shows that he’s willing to take a risk on an idea that may not work. He was willing to waste his efforts to try and make something new. It is an inspiring story for other business goers. I wish them the best of luck because it sounds great so far!
within our society competition is not only required to survive, but also a valued attribute. Competitions such as this are the perfect way to gain a better understanding of what is ahead for entrepreneurs. I wish our team the best of luck
This is yet another story about taking drastic measures in order to reap amazing rewards. Giving away product to build a customer base and further put yourself in debt would make me nervous. I guess that’s why there’s so many failures and not so many entrepreneurs out there.
Thats a great example of someone seeing their idea through; reminds me not to brush aside the small stuff.
I know every one has said this….but it is amazing that someone is that right off of cat litter. But things like that just prove that there is a lot more out there to be discovered or created. People can get rich just about off of anything if they have an idea that people will like and play their cards right. Edward made great moves and made good decisions to get where he is today. It sounds like a fun event, hope you have a good time!
Edward not only listened and applied his expertise to solve a problem, he made the solution practical. He made it simple enough that almost anyone could afford it and everyone would know how to use it with little confusion. He obviously knew the target market and knew that they didn’t need anything fancy–just something that didn’t track soot all over their house.
Good luck at the competition! Maybe we could have another video from racing a Porsche?
Gl but I know Purdue has their stuff together!
Thats pretty cool how that worked out for him. I cant believe that lady was using ashes for her cat to use the bathroom on, what a mess. I think cats should just be potty trained like dogs I dont know how anyone can stand having that horrible smell of a litter box in their homes it makes me sick just thinking about it.
Wow, new kitty litter. You can just about create anything from basically nothing. Who knew that there’s big money behind that industry. I’m not a cat fan but I guess its a good idea, smart.