Springer's promotion 's no joke
The forecast is calling for mixed precipitation Christmas Day, but not the 6 inches of snow needed to trigger $1 million in refunds to customers who bought jewelry from Springer's Jewelers during its "Let it Snow" campaign. No one is more disappointed than Rick Beaulieu, Springer's owner and manager.
"This has been a fun, positive promotion for us, and very successful over the years," Beaulieu told Mainebiz Tuesday. "If it did snow Christmas Day, for us it would just be a win-win."
Beaulieu can afford to be so cool because an underwriter, not Springer's, would be on the hook if the white stuff falls. The jeweler insures its annual campaign with HCC Specialty Underwriters, a Massachusetts-based firm that covers specialty events and promotions. If 6 inches did fall, HCC would refund customers the full price of their purchases made between Nov. 20 and Dec. 13.
Beaulieu declined to reveal what the HCC policy costs, saying only that it was a "reasonable amount," but was willing to share the spike in business the campaign has created.
"The first year we did it, it increased sales by 20%. The second year, 18%," he said. "The jury is still out for this year ... there's a different economic situation."
There have been other benefits for the jewelry store, which started 138 years ago in Westbrook. The publicity - "The first year we did it there was an incredible buzz "-- brings in new customers, excites loyal customers and separates the Portland- based jeweler from its competitors.
Beaulieu said the promotion also gets people into their three stores to buy earlier in the season, which allows Springer's to better manage its inventory and book holiday sales over a longer time span.
And that helps it withstand seasonal losses due to things like - ironically - weather.
"This past weekend was a disaster," said Beaulieu, referencing the recent nor'easter that kept many shoppers home. "Our nemesis is snowfall. But this allows us to use snow as a positive."
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