The Sharper Image was founded in 1977 by Richard Thalheimer. Thalheimer put himself through law school in San Francisco by selling office supplies, and three years after his graduation he hit upon a potentially profitable marketing idea that led to a full-time career in retailing.
As a mail order operation, The Sharper Image was able to keep its overhead low. By purchasing its inventory on delayed credit and paying suppliers after collecting from customers, the company could maintain limited inventory and operate with relatively little ready cash. In 1981, the company reported revenues of $28 million and profits of $1.4 million. In 1982, revenues reached the $51 million mark, and three years later, The Sharper Image was issuing 42 million catalogs annually and reporting sales of $69 million.

In the mid-1980s, orders from The Sharper Image catalogs began to decline slightly, and the company explored new marketing techniques. When The Sharper Image advertisements on cable television proved unsuccessful, the company focused on appealing to customers who preferred not to purchase items through mail order, opening The Sharper Image retail stores around the country. In 1985, 12 stores were introduced in such urban centers as New York, St. Louis, and Honolulu. Twenty more stores were opened the following year, primarily in affluent areas, including Beverly Hills and Stamford, Connecticut.

Key Dates:
1977: Richard Thalheimer peddles his first mail order product, a digital watch for runners. 1978: The Sharper Image is incorporated. 1982: Revenues exceed $50 million. 1985: The company's first 12 retail stores open. 1987: The company goes public on the New York Stock Exchange. 1990: Products for children and home living are featured. 2002: Circuit City begins stocking Sharper Image Design products.