In my post on the Vase Mania that swept the country after the discovery of Pompeii and Herculaneum, I mentioned that, as the craze faded away, Wedgwood decided to go down market and to sell his vases more cheaply to the middle classes.

“The Great People have had these Vases in their Palaces long enough for them to be seen and admired to the Middling People,” he said, “which Class we know are vastly, I had almost said, infinitely superior, in numbers to the great, and although a great price was, I believe, at first necessary to make these vases esteemed Ornaments for Palaces, that reason no longer exists, and the middling people would probably buy quantities of them at a reduced price.”

Robin Reilly in his excellent biography explains that Wedgwood’s motives were more complex. Although he had become a hugely successful potter, he never seemed to have any money. Although the business made a profit, he was in debt, and a rumour was going around that he could not pay. He observed that if you lost money you could get it back, but if you lost reputation you would never recover. Up to that point he thought the remedy was better debt collection, but Reilley uncovered the fact that Wedgwood and his partner Tomas Bentley did not understand their business accounts. He was, in fact, under-capitalised, a common shortcoming in rapidly expanding enterprises. Reilley is an ideal biographer because, as well as being a historian, he was a senior manager at Wedgwood for twelve years.

With characteristic energy and resolve, Wedgwood set to analysing his costs, which he had never bothered about too much before. He virtually invented cost accounting and the production of cheaper vases was inspired as much by cost control and the need to improve cash flow as it was by changing fashion.