![]() ![]() Win-Win: Mack’s gambling promotions around the Super Bowl, March Madness and the World Series have helped revenue at Gallery Furniture jump 42% in 2021 compared to 2019. “These promotions bring in a better-quality customer,” he says, “a customer who spends more money, who is more affluent and more creditworthy.” The percentage of customers who get approved for in-store financing also jumps about 10% during his sports sales events. The new customers spent an average $6,764 and repeat clients spent an average of $5,882. During March Madness, Gallery brought in 842 new customers and 1,234 repeat customers. For four weeks in June 2021, when Gallery held no promotions, McIngvale did $7 million in sales with the average customer spending around $4,000. During the Super Bowl, customers spent an average of $5,800. Mack says his promotions also attract a deep-pocketed clientele. ![]() He lost that $9.5 million wager, however, meaning he didn’t have to refund any customers-and he was up $10.5 million. He had a huge spike in sales and sold $20 million worth of inventory. ![]() If the Bengals had won, McIngvale would have refunded any customer who bought a $3,000 mattress or recliner before kickoff. Similarly, during Super Bowl LVI, McIngvale bet $9.5 million on the Cincinnati Bengals to beat the Los Angeles Rams. “Normally, on Mondays we do about $200,000 at this time a year,” says McIngvale. The March Madness promotion supercharged what should have been a lackluster day on the showroom floor. Mack says about 30% of the store’s inventory sold out on Monday alone. Whether the bet itself pays off, the publicity-generating promotions move a ton of furniture. “There’s no advantage in doing this if you take a negative proposition wager to cover the losses,” McIngvale says. 1 seed, had won its Final Four game against Villanova, the odds would have been –190 or worse, and he would have needed to bet $25 million to win $12 million. If McIngvale waited until Kansas, which was No. McIngvale bet on Kansas on Thursday, before the Final Four, and got his money down at +190. Read More: ‘Mattress Mack’ Bets $5.5 Million On Kansas To Win NCAA Basketball Championship Read More: ‘Mattress Mack’ Shakes Off Losing $9.5 Million Super Bowl Bet After Rams Beat Bengals “Now, it doesn’t always work this cleanly,” says McIngvale. (Mack’s bets were a $1 million futures bet on the East bracket to win $1.7 million, the only bet he lost, then $2.25 million on Kansas at +190 to win $6.5 million $3.31 million on Kansas at +190 to win $6.3 million and $3.3 million on Kansas at –200 to win $1.7 million.) Gallery sold a total of $12.9 million worth of furniture during the promotion, so once he refunds all of his customers, which he will do on April 24 during a big party in his store, he’ll have more than a $500,000 profit. During his March Madness promotion he bet a total of $9.86 million across four bets and won $13.5 million. The economics of McIngvale’s strategy has mostly paid off. In 2019, Gallery had $164 million in revenue and by the end of last year sales grew by about 40% to more than $230 million. McIngvale’s promotions and sports bets have helped him grow his business, which he started with his wife, Linda, in 1981.
0 Comments
Leave a Reply. |