By Velda Addison, Hart Energy
Where oil prices go next is anybody’s guess. But the latest promotion by perhaps the most well-known furniture sales mogul in the Houston area has given shoppers a reason to root for a rebound.
If West Texas Intermediate (WTI) tops $85/bbl by year-end 2015, Jim “Mattress Mack” McIngvale has agreed to give customers who purchase $7,000 or more of furniture or mattresses as part of his Gallery Furniture promotion all of their money back.
For those who don’t know, Mattress Mack is known in the Houston area for his promotions that almost instantly capture media attention, his energetic delivery in commercials with the catchphrase “saves you money” and his philanthropic efforts.
The Gallery Furniture owner gave up about $4 million in October to customers who purchased $6,300 worth of furniture as part of the Leap of Faith promotion. Early in the baseball season, McIngvale agreed to reimburse the first 500 customers who purchased at least $6,300 worth of merchandise and had it delivered within a week if the struggling Astros won 63 games.
He lost even more—about $7 million—in a 2014 Super Bowl bet with customers. In this instance, the store vowed to issue refunds to customers who spent at least $6,000 on furniture before the game, if the Seattle Seahawks beat the Denver Broncos.
Consider the losses a contribution to the local economy.
The company’s website says “Everyone knows how important oil is to the Houston area economy. Everyone from construction to retail depends on how well the energy industry prospers. The better energy does, the better we all benefit. Mattress Mack wants to do his part to boost our local economy…”
As with previous promotions, certain conditions apply for the “85 and It’s Free” promotion underway.
The website warns that this is a “very limited time offer (Mack can lose only so much)” and “only a small number of customers will be counted toward this promotion,” which can end at any time Gallery Furniture wants to end it.
Here are the rules:
- Customers must buy at least $7,000 in furniture or mattresses online or in-store before the promotion ends;
- The promotion only applies to purchases of furniture, mattresses and accessories, not electronics;
- Customers must take delivery of the items within four weeks of purchase;
- Returns, credits and refunds count against the total of the purchase to determine eligibility;
- Customers will be notified if they are eligible for a refund;
- Gallery Furniture may stop allowing additional qualifying orders at any time;
- Refunds will be 100% of purchase price of a single cash purchase (less delivery, add-ons, tax or non-qualifying items) or 150% of purchase price as an in-store credit; and
- The price of oil will be based on crude oil WTI future at the close of trading on Dec. 31, 2015, according to the website.
Considering crude oil was trading at about $45/bbl around noon Jan. 13, the price has a long way to go. But given the cyclical nature of the oil and gas business, an oil price rally could be just around the corner. Crude oil benchmarks Brent and WTI fell to $62/bbl and $59/bbl, respectively, in December, following monthly highs of $112/bbl (Brent) and $105/bbl (WTI) in June, according to the U.S. Energy Information Administration.
Contact the author, Velda Addison, at firstname.lastname@example.org.
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