When a furniture owner bets, he bets big, which is evident with the $7 million dollars he lost to his customers over a Super Bowl bet. The Houston furniture store owner bet his customers, who spent more than $6,000 on furniture during this Super Bowl promotion, if Denver lost than he owed them a refund, according to ABC News on Feb. 3.
If you have been near a TV, radio or newspaper today than you know that Jim "Mattress Mack" McIngvale lost that bet. The news has been saturated with the massacre that Denver endured. This furniture owner said that he is happy to hand over the refunds to his customers. Mattress Mack said that although he may be happy, his account is pulling his hair out today figuring out the different customer accounts owed money.
Other stores do promotions like this, such as the jewelry stores that entice customers in by promising a refund if it snows more than an inch on a given date. This is usually a Christmas, New Year's or Valentine Day promotion. The stores usually take out an insurance policy for this with one of the brokers that specialize in bizarre and unique bets.
While Mattress Mack has not said that this is how he will get the funds to pay his customers, many others use this technique for things like winning a car when you get a hole in one on a golf course. There is an insurance company backing the car if it is won.
Insurance companies pay on the policy taken out for just the event. The people running the tournament have paid a pretty price for the insurance company and the hole in one hardly ever happens. The people who insure affairs like these make tons of money when the event that is insured against a win, hole in one, or snow accumulation doesn't happen. On that rare occurrence when it does, they pay and are still ahead.
The furniture store is paying over 1000 customers an average of $7000 each and Mattress Mack, who is the king of promotions, will be giving the refunds out at yet another promotion to sell furniture. Mattress Mack said if not for nothing else it gets people talking about "this guy does what he says he is going to do." There's 1000 customers out there that can soon vouch for that!
Now that Mattress Mack's bet has been in the headlines across the nation, one might say he got $7 million worth of publicity for his store.