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(My Fox Houston)   Not News: Furniture store holds promotion that if you spend more than $6,000 you get your money back if Seattle wins the Super Bowl. Fark: Store refunds over $7 Million back to customers   (myfoxhouston.com) divider line 17
    More: Fail, Super Bowl, Seattle, refunds, furniture  
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12431 clicks; posted to Main » on 03 Feb 2014 at 10:19 AM (32 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



Voting Results (Smartest)
View Voting Results: Smartest and Funniest

2014-02-03 07:15:59 AM
6 votes:
Not sure what the Fail is supposed to be here. It's a fairly commonplace promotion, and I'd bet your mortgage that the store had insurance against Seattle winning.
2014-02-03 10:28:04 AM
3 votes:

czetie: Not sure what the Fail is supposed to be here. It's a fairly commonplace promotion, and I'd bet your mortgage that the store had insurance against Seattle winning.


Yeah, not sure about the "Fail", either. Even if the guy DIDN'T get insurance, he just got a ton of free advertising based on his "goodwill" and "sportsmanship". Besides, it sounds like the place has been around forever, he's not going out of business. Yeah, 7 mil is a lot of money, but something this big pays off for years and years, and ends up getting you over 1,000 return customers who will tell everyone they can think of.
2014-02-03 11:44:30 AM
2 votes:

Watubi: SilentStrider:  what a dumbass.

It seems a lot of people here need to take a marketing class or two.  And, it's plainly obvious this company can afford 7mil and probably spends double that on advertising every year.


The advertising is just the icing on the cake.  Even if this never makes the news at all, this was the smart move.  People just aren't using their brains, or alternatively, have no idea how insurance works.

They think this guy was stupid for not getting insurance.  So then would it have been stupid for an insurance company to insure him?  No they would simply charge this guy an amount that would put the bet in their favor.  This guy DID get insurance, but he cut out the middleman -- the insurance company.  He self insured.  The only reason people don't self insure things like health or auto is because most can't afford the worst case scenario, so it protects against that.  This guy clearly can afford that.  He would have been stupid to pay someone else for insurance.
2014-02-03 10:37:11 AM
2 votes:
lets be clear here.

The furniture cost him 1/2 that at most. He gets to write off 7 million to marketing....  which will help eliminate a good portion of taxes.  so maybe end of the day he "lost"  1 million. I doubt even that much.
2014-02-03 10:35:46 AM
2 votes:
He should have taken the $7 million and placed a bet in Vegas on the Seahawks.
2014-02-03 10:30:19 AM
2 votes:

Mikey1969: czetie: Not sure what the Fail is supposed to be here. It's a fairly commonplace promotion, and I'd bet your mortgage that the store had insurance against Seattle winning.

Yeah, not sure about the "Fail", either. Even if the guy DIDN'T get insurance, he just got a ton of free advertising based on his "goodwill" and "sportsmanship". Besides, it sounds like the place has been around forever, he's not going out of business. Yeah, 7 mil is a lot of money, but something this big pays off for years and years, and ends up getting you over 1,000 return customers who will tell everyone they can think of.


Personally I think his dumbest move was saying it's automatically free if Seahawks win. Should've had the customers pick who wins. A hell of a lot of people would've picked the Broncos.
2014-02-03 10:25:11 AM
2 votes:

SilentStrider: scottydoesntknow: He responded to a guy on twitter and said he did not have insurance for this event either.

https://twitter.com/MattressMack

what a dumbass.


Why is that being a dumbass?  In the short term, insurance might be smart but just like gambling, insurance is always a long term losing venture.  If the odds were 50/50 this year, to insure $7 million of furniture, an insurance company would have charged him something like $4 million.  Turns out this year that would have been smart.  But do this year after year after year after year and as long as you can weather the bad years, it's no longer smart.
2014-02-03 10:18:05 AM
2 votes:

scottydoesntknow: He responded to a guy on twitter and said he did not have insurance for this event either.

https://twitter.com/MattressMack


what a dumbass.
2014-02-03 01:23:05 PM
1 votes:
In most retail furniture stores, the markup is between 100% and 150%.  Gallery Furniture has been around for decades, sells solid wood furniture, and donates MILLIONS to charity each year.  The promotion may not of netted them a huge financial windfall...but it also didn't cut their legs out from under them.  You don't succeed in business by only taking sure bets.
Also...keep in mind...that if these types of promotions were held every week betting on the Houston Texans to win...Gallery Furniture more than made their money back.
2014-02-03 01:17:13 PM
1 votes:

proteus_b: lennavan: as long as you can weather the bad years

well not everyone has 7 or more million dollars in liquid cash that they won't need. So it's possible that he'd need to unload other assets at a loss. Insurance isn't always a losing proposition. If you can't weather gigantic fluctuations in your cash flow, and most people and businesses can't, then you need insurance.


Seven million dollars at retail. He didn't pay retail. The cost to him would have been almost certainly under one million since the mark up on furniture is huge. And for a business like this one million dollars is just another ad campaign.
2014-02-03 10:58:08 AM
1 votes:

scottydoesntknow: He responded to a guy on twitter and said he did not have insurance for this event either.

https://twitter.com/MattressMack


Seriously? Wow.

I take it back. Fail, but only because we don't have a "farking moron" tag.
2014-02-03 10:57:19 AM
1 votes:
They did this once they were already in the Super Bowl?

They must be WAY overpriced for that to make sense.
2014-02-03 10:43:59 AM
1 votes:
His slogan for the past 30+ years, known by all Houstonians, is "Saves...You...MONEY!!"
2014-02-03 10:33:35 AM
1 votes:
Sofa KIng smart.
2014-02-03 10:27:24 AM
1 votes:

Tr0mBoNe: I'd have taken the money and bet on the game myself then bought better furniture if it worked out.


The catch here isn't 'get free furniture' it's an incentive to overspend and maybe get free furniture.

In your example, if you lose you get nothing. It's lose-win; with the furniture you by whatever you normally would have and at worst you have to pay whatever you were going to anyway.
2014-02-03 10:23:46 AM
1 votes:

scottydoesntknow: He responded to a guy on twitter and said he did not have insurance for this event either.

https://twitter.com/MattressMack


What a damn idiot, that is fail...
2014-02-03 09:49:19 AM
1 votes:
"Mattress Mac doesn't believe in insurance. He considers it a form of gambling."
 
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