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  • Writer's pictureEmil Jersling

Turning Pebbles into Profits: Gary Dahl on Entrepreneurship

Updated: Sep 1

Entrepreneurship innovation is complex.


It requires a blend of creativity, practicality, and an eye for opportunity. Success demands brilliant ideas as well as great execution. Learn about how marketeer Gary Dahl turned an concept into a phenomenon with great humor, fast execution, and disciplined cost management to turn pebbles into profit with his 1975 hit the Pet Rock.


A Boy’s Best Friend


A small boy learning to walk outside with his hands streched out in front of him accompanied by his black dog just behind.
Men and my dog practicing to walk. Early 80s.

My parents got a dog for my sister and I when I was born. He was a shelter dog, a mix of a labrador and a dachshund, our faithful companion during the first 14 years of my life.


But keeping a dog has some downsides: It needs a place to sleep, be taken for walks, be cleaned, get trained, and food!!


The Pet Rock Idea Comes to Life


Back in April of 1975 Advertising executive Gary Dahl was sitting at the Grog and Sirloin pub in Los Gatos, California, having that conversation about these downsides with his friends.


Money was tight due to the recession which started in 73’ and the oil crisis of 73-74 which caused a 20% hike in petrol prices. His colleagues complained about the high cost of keeping a pet upon which Gary suggested  keeping a pet rock instead. They tossed around ideas all night but even after returning home Gary couldn’t let go of the idea. 


Turning Pet Rock Idea into Product


A product shot of the Pet Rock box, book, stone, and packaging material with a black background.
Gary Dahl's Pet Rock Bundle

He started to work on the copy for the training manual, a spoof of a dog training manual. It took a few days. He tacked the booklet onto a printing job for a client and got it done virtually for free.


Next was packaging. His friend helped him to design a cardboard box similar to the ones owners use to bring their pets to the vet, with breathing holes at the top, carrying handles, and some straw at the base.


The Instruction Manual: a Flash of Brilliance


It is filled with charming, creative, and humorous ideas provoking the creativity of its readers.


  • You need to give your pet rock some time to acclimatize to its new surroundings. Ideally by settling it in a special place where it can get used to your home. 


  • Your rock hails from a long line of famous rocks found in the rubble of the pyramids, cobble stones of ancient European cities, the great wall of China, and even further going back to the beginning of time!


  • You must train your rock. An advanced command is ‘‘roll over’ best taught at the top of a hill. It usually enjoys it so much it won’t tire until it reaches the bottom. Gary warns us that many owners tire of this trick before the pet rock does.


Getting the Product to Customers


An avid promoter and salesman he realized he had something after he secured 10k orders from conferences and gift shows. Only then did he set a price, $4, and started to think of assembly and distribution. He was without a publisher so he raised some cash and kept his costs low.


His friend helped to secure a line of credit. Home computers were becoming popular so he contracted an agency for temporary workers of computer suppliers, to put the boxes together. It cost 12c per box. Federal Express managed distribution.


The Pet Rocks hit stores in October. His press release was picked up by Newsweek for a half page feature story. This, and interest from large retailers, generated 10k rocks / day in sales. He was invited onto The Tonight Show twice and the product was featured on CBS Evening News. Sales skyrocket before knockoffs started flooding the market.



Gary copyrighted his book and trademarked ‘Pet Rock’ before shipping his first unit. But it didn’t prevent others from stealing the idea and even his book. He stopped some copycats but couldn’t recover the legal fees before the companies disappeared. Once Christmas season passed sales slowed down.


Gary had become a millionaire selling pet rocks.


More Ideas: Conquer China by Buying Up its Dirt


Through ingenuity and great salesmanship Gary had created a whole new product category. He worked hard to follow up on this success with a few other products


A product picture of Gary Dahl's sand breeders kit against a white background.
Gary Dahl's Sand Breeders Kit

  • Sand breeding kits: To create cat litter, landfills or even deserts. It was priced at $4. He succeeded in selling 75k but due to unsold inventory he just broke even.


  • Red China dirt. Sold for $5 and promoted as a plan to conquer China one cubic centimeter at a time. The product failed, in part after US President Jimmy Carter officially recognized the PRC on 1-Jan 1979 and political relations with China improved.


He couldn’t repeat the success of the Pet Rock.


Are Pet Rocks still around?


A product shot of the Pet Rock sold on Amazon from 2024
Amazon Pet Rock Product Picture 2024

A company bought the license from Gary in 2000. This is its Amazon ad. It sells for $29, has 420 ratings, and 4.3 stars. Many reviewers reminisce about the product.


Its fanbase stretches from young to old with many reviews reflecting on their first encounters. The reviwers demonstrate great imagination in describing their experiences.


Initially I was going to call my pet something cheesy, like Rocky, but a geologist friend of mine came over and told me my rock was formed deep in the Earth, lived in a river bed which became a dry river, and was almost 4 billion years old. A miracle... no other pet I've ever had lived more than 23 years. So I named her Mirical.

Larry Amazon Reviewer


Lessons from Gary Dahl's Entrepreneurship Innovation


Black and white photo of Gary Dahl next to an article about his Pet Rock
Gary Dahl next to an article about his Pet Rock

He did many things exceptionally well.


  • Execution: He was quick. 6 months after launch the market opportunity had closed.

  • Promotion: Attending trade fairs, writing news releases, doing interviews and TV appearances.

  • Communication: Talking about its advantages over other pets dressed up in humorous language.

  • Focus: Tackling each challenge step-by-step. First the copy, then packaging. Financing, sourcing, assembly and distribution only after he identified the demand.

  • Packaging: It was clever, distinct and well aligned with the product ethos.

  • Costs: Keeping costs low paying 1¢ / rock, 0 for straw, 12¢ / assembly, 0 for the book prototype.

  • Product: Realizing he was selling a book “The care and training of your PET ROCK” he cleverly marketed it as a gift allowing it to be sold beyond bookstores.

But most of all: he believed in his idea and made it happen.


It was reported that some of his friends who helped with the brainstorming became resentful and jealous but he was the only person from the bar who went home and worked on his idea.


In 2022 I helped hardware entrepreneurs achieve product success as co-founder of hardware accelerator Innovation Drive. The maker movement and our easy access to hardware and software makes this a great time to make things. Take this lesson from Gary Dahl and all the millions of brilliant makers and innovators out there. Take your ideas, no matter how crazy, and turn them into reality. Let's change this world for the better.


“Draw the art you want to see, start the business you want to run, play the music you want to hear, write the books you want to read, build the products you want to use – do the work you want to see done.”

Austin Kleon

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