Businesses are starting to take big risks by running promotions that could prove to be costly, but the attention that they are getting certainly helps them make up for any financial losses.
According to ESPN.com's Darren Rovell, Houston jeweler Johnny Dang—aka "TV Johnny"—decided to run a promotion in connection to the 2014 NBA All-Star Game. Anyone who bought his brand of watch would get to keep the item and receive a full refund if the Eastern Conference came out victorious.
It was a logical promotion. The Western Conference had won three straight contests, and it was a way for the jeweler to support his hometown Houston Rockets.
Thanks to an 18-point comeback by the East, Dang has to pay up. He sold 37 watches during the promotion and is now out $200,000. Customers must bring in their receipts by Friday in order to get their money back.
Dang—whose business partner is rapper Paul Wall—didn't have any regrets, via Rovell.
"I've been in business for 18 years and this is the first time I've done an offer like this," said Dang. "But it was worth taking a chance for the people who have been loyal to me over the years."
Maybe next time he should make it tougher to win by asking his customers to pick the All-Star Game's Most Valuable Player.