Now I Know: The Marketing Stunt That Vacuumed Up a Whole Company

Thank you to reader Roger M., who suggested this story in February 2020. I never got around to it... until today!. -- Dan
 

The Marketing Stunt That Vacuumed Up a Whole Company

In November of 1992, Dave Dixon, a horse trainer from Workington, England bought a washing machine for £560, the equivalent of about £1,100 ($1,200) today. For the next few months, all one can assume is that Dixon and his family were perfectly happy with their new washing machine, but as the summer of 1993 approached, that changed. The washing machine -- barely six months old! -- broke. So he called a repairman, which Hoover, the manufacturer of the machine, dutifully dispatched. On or around May 28, 1993, the Hoover van arrived on the Dixon's driveway, its driver ready to get to work.

While the repairman was working on the machine, he and Dixon got into a bit of an argument. The repairman called Dixon an idiot; Dixon, he'd later tell the BBC, replied with "I'm not as stupid as you are. I'm not going to have to walk home." Dixon, per the Guardian, brought "a horsebox full of steaming manure" behind the van, blocking its exit in a way few people would dare mess with. The repair guy left safely, but the van remained. Dixon had hijacked it.

A week later, the van was still there. The police didn't care. No one really blamed them. Hoover, most people felt, deserved it. 

The reason? Hoover's disastrous marketing campaign.

Much of the world was gripped by a recession in the early 1990s and the UK was no exception. Hoover dominated the vacuum cleaner market in the area; as the Los Angeles Times reported, "Hoover’s British operation [had] built the kind of public image that corporations covet. It is known as trustworthy and reliable. And its name is synonymous with the activity of its most popular product. In Britain, you don’t 'vacuum the carpet.' You 'Hoover the carpet.'” With an estimated 50% market share, Hoover probably could have survived the recession. But the downturn created a slowdown in purchasing that the company didn't anticipate. They were left with a lot of excess inventory -- already-manufactured vacuums -- that, unsold, was ironically just sitting around collecting dust. Hoover wanted a way to sell these machines.

And because the economy was in recession, Hoover wasn't alone in having excess inventory. A small travel agency called JSI Travel was operating in the UK and Europe at the time and was having a hard time filling flights for their airline clients. The flights were going from destination to destination anyway, and each unsold seat was an opportunity missed. JSI Travel approached Hoover with an idea, as The Hustle explains: "anyone who spent more than £100 (~$250 USD today) on a Hoover product at a qualifying department store would get two free round-trip tickets to a destination in Europe," which probably cost around £150 to £200 if you booked them directly. Sounds like a good deal -- perhaps too good to be true. But it kind of worked out. The margins on the excess inventory Hoover had was high. The prices of plane tickets were low. Hoover planned to upsell customers who took advantage of the deal on other high-margin products like travel insurance and also to get referral money from hotels.

But just to be sure this wasn't a big old mess, Hoover also made it cumbersome for most purchasers to claim their free tickets -- you need to send in your receipt within two weeks of purchase, then fill out a registration form within two weeks of receiving that, and then send Hoover a proposed itinerary within 30 days after that. These barriers helped limit Hoover's exposure but it also left a lot of would-be travelers with a vacuum they didn't really want and without plane tickets. There was a tiny amount of buzz that this was more scam than deal, but thankfully for Hoover, the bad press was rather limited. What Hoover saw, instead, were a lot of vacuum sales, a small number of plane tickets being issued, and no apparent hit to their brand reputation. 

So they expanded the offer, as seen below.

In November 1992, Hoover advertised that, if you purchased a £100 machine, you'd get two plane tickets to the United States -- worth an estimated £600. The campaign proved exceptionally popular among consumers. Hoover expected about 50,000 requests for tickets; they received about 300,000. And that was a big problem. The math didn't work out -- Hoover had sold most of its excess inventory by this point and, as The Hustle points out, "on the sale of a £119 vacuum cleaner, Hoover made a profit of £30. The two free fights that came with it were worth at least £600. This meant that each customer who followed through with the promotion cost Hoover £570." To make matters worse, JSI Travel wasn't equipped or interested in booking trips to the United States, so Hoover went into the process without a travel partner. And that negative press around the cumbersome redemption process? It was about to explode.

Customers were furious, lawsuits were threatened, and documentary filmmakers were calling. And throughout it all, Hoover was forking out plane tickets at a massive loss. In April of 1993, Hoover fired the president of its European division as well as some of the division's top marketing leaders, but the bad press and the like kept coming -- in large part because the tickets weren't. And when that Hoover repairman came to Dave Dixon's house in May of 1993, the repair guy foolishly told the customer (per Dixon), "If you think buying a washing machine's going to get you two tickets to America, you must be an idiot," setting off the van hijacking described above.

About two weeks after Dixon took the van, a British court ordered him to release it to the company, which he did. But that was probably Hoover's only victory in the whole "free ticket" ordeal. Hoover's reputation in England was irreparably harmed and Maytag, which owned Hoover at the time, sold the UK brand to a smaller company in 1995 at a steep discount. Lawsuits surrounding the "deal" extended into 1998. Maytag was ultimately required to pay up -- somewhat. Per The Hustle, "was ordered to shell out the equivalent of $72m on flights for some 220k customers — and even then, another 300-350k never received their offer." 


Now I Know is supported by readers like you. Please consider becoming a patron by supporting the project on Patreon. 

Click here to pledge your support. (If you do, in gratitude, you'll have an ad-free Now I Know experience going forward.)

Bonus fact: Vacuum cleaners can be great tools, particularly if you're in the business of cleaning floors or stealing money from grocery stores. Well, not all grocery stores -- just Monoprix, a chain in France, and probably not any longer. From 2006 until 2010, the chain was hit by more than a dozen after-hours thefts, and they couldn't figure out how the thieves were doing it; all the money in their stores was kept in a safe, and there were no signs that the safes had been breached. The culprits, it turned out, had just sucked the stores dry, as The May Sue explained: "[cash was sent to the vault by] cashiers using pneumatic suction pipes, where they slide tubes filled with money. The robbers realized that it was sufficient to drill a hole in the pipe near the [safe], then connect a powerful vacuum cleaner to capture the money stored." The thieves made out with approximately 600,000 Euros ($800,000) before Monoprix discovered the flaw; as of 2010, the thieves' identities are still unknown.

From the ArchivesA Token Effort: Your mouth can be a vacuum, right?
Like today's Now I Know? Share it with a friend -- just forward this email along.
And if someone forwarded this to you, consider signing up! Just click here.
Share Share
Tweet Tweet
Forward Forward
Archives · Privacy Policy

Copyright © 2022 Now I Know LLC, All rights reserved.
You opted in, at http://NowIKnow.com via a contest, giveaway, or the like -- or you wouldn't get this email.

Now I Know is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. Some images above via Wikipedia.

Now I Know's mailing address is:
Now I Know LLC
P.O. Box 536
Mt. Kisco, NY 10549-9998

Add us to your address book


Want to change how you receive these emails?
You can update your email address or unsubscribe from this list

Email Marketing Powered by Mailchimp

Older messages

Now I Know: We Are All Invisible Pinocchios

Monday, October 10, 2022

Maybe the nose knows after all View this email in your browser · Missed one? Visit the Archives Hope you had a better weekend than my Mets did. -- Dan We Are All Invisible Pinocchios Depicted above is

Now I Know: The Other Projects On My Mind

Friday, October 7, 2022

It's the Now I Know Weekender! View this email in your browser · Missed an issue? Click here! If you're new to Now I Know, you'll notice that today's format is different than the rest

Now I Know: The Great Choco Pie War of 2014-2015

Thursday, October 6, 2022

A literally "pie in the sky" moment. View this email in your browser · Missed one? Visit the Archives Here's a re-run from 2016 with a new title. It's really a fun story and you

Now I Know: Why Thomas Jefferson Was Obsessed With Moose

Tuesday, October 4, 2022

The plural of "moose" should be "meese." This is where I draw a line in the sand. View this email in your browser · Missed one? Visit the Archives A quick note -- I'm off

Now I Know: The Intentionally Bad Song That Accidentally Worked

Monday, October 3, 2022

And now it's stuck in my head. AAAAAAAAAARGH. View this email in your browser · Missed one? Visit the Archives Don't listen to the Tartan Horde's first song more than once or twice; it'

You Might Also Like

Book Promos •  6 posts each day on X.com • Over 33 days •

Saturday, November 16, 2024

Tweeted 6 times daily for 33 days only $33 Logo ContentMo Tweets Your Book to Our Twitter Followers Each Day We TWEET Your Book for 33 Days, 6 Times/Day = 198 tweets SEE WHAT AUTHORS ARE SAYING ABOUT

How to make compounding really work for you

Saturday, November 16, 2024

There's a quiet confidence ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

I've been excited to share this, now I finally can!

Saturday, November 16, 2024

Declutter Your Heart and Your Home: How a Minimalist Life Yields Maximum Joy I've got big news and you're hearing it first! I'm SO incredibly excited to announce that you can now pre-order

• Black Fri TO CyberMon Book Promos for Authors ➳  Book Your Spot Now •

Saturday, November 16, 2024

Book Your Spot Now to Get Seen During the Busiest Shopping Season of the Year! ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ Please enable images to see this email. Black Friday & Cyber

SEO is Not Dead: The Power of Free Tools

Friday, November 15, 2024

This AI startup went from 0 to 150K daily visits in 10 months ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

KU & Paperback • The Story Weaver  by Sally Zigmond • A colourful mix of beautifully crafted stories

Friday, November 15, 2024

Sally Zigmond brings an evocative literary voice to tales in The Story Weaver. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ Welcome to

My Scurvy Mistake

Friday, November 15, 2024

I guess I didn't put 2 and 2 together? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

🎤 The SWIPES Email (Friday, November 15th, 2024)

Friday, November 15, 2024

The SWIPES Email ​ Friday, November 15th, 2024 ​An educational (and fun) email by Copywriting Course. Enjoy! ​ 🎤 Listen to this email here: ​ ​ ​ Swipe: Did you know NetFlix actually has a ton of

Swing for This PR Technique

Friday, November 15, 2024

Ask to be a guest and expand your audience. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

🧙‍♂️ 3 reasons I wrote Sponsor Magnet

Friday, November 15, 2024

Musings on "legacy" ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏