Its really a marketing promotion to move more of the $3000 mattresses he sells.
Hes offering free refunds to all purchasers of the $3k mattresses IF the Astros win the WS.
But hes hedging that offer/naked call option by betting on the Astros himself.
So if the Astros win he breaks even or thereabouts, I suspect, losing money on the free mattresses, but making enough money to cover those losses, on his bet.
If the Astros lose he loses his bet but nobody gets a free mattress. Meanwhile he has sold a bunch more mattresses.
I suppose some could try and return the mattress if the Astros lose. Id surmise there is a provision in the giveaway to prevent that.
Meanwhile he also gets lots of free press. Pretty clever marketing ploy.
exactly...
it's a marketing gimmick...
and he's a proven marketing genius...
he has done this in the past before...
he's been very successful...
he usually buys insurance to cover himself...
but Astros are favored so heavily...
nobody will insure him on it...
his store in Houston currently ranks as the Sales-per-Square-Foot leader for independent retailers in the United States...
the city of Houston loves Mac...
he's housed 1,000's of displaced people free in his giant furniture store through Houston floods and hurricanes...
it's quite a set up...
he has food courts...bowling lanes...a game room for children...
he does motivational speeches for Shell Oil and other large companies...
he's a quirky nice hard working guy...
very generous and benevolent to Houston causes...
I have been in his store a few times...
he's always at the front door greeting people...
a self made hard working man...