$137K Chopper Sale Good Promo for Sam?s

The sale of a $137,000 motorcycle on the Sam’s Club Web site Nov. 1 was a risky but successful promotion for the company, said Doug McMillon, executive vice president for marketing at Sam’s.

Taking risks is important in business, McMillon told a crowd of about 100 people who attended “Growing Your Business,” a two-hour seminar held Oct. 8 at the Bentonville Clarion Inn.

“An intelligent risk that doesn’t work is forgivable,” McMillon said.

The bike was custom made by Orange County Choppers of Montgomery, N.Y. The first customer to send a $137,000 wire transfer received the motorcycle and a “fantasy package” that included a trip for two to New York to meet OCC owner Paul Teutul Sr. and his family and spend two nights in a luxury hotel. Four people attempted to buy the chopper, McMillon said.

The promotion was different from others because Sam’s Club had to purchase the one-of-a-kind motorcycle for the promotion.

“Kevin made it clear to me, ‘If we don’t sell it, you own it,'” McMillon said referring to Sam’s Club President Kevin Turner.

McMillon said Sam’s, the warehouse club division of Wal-Mart Stores Inc., faces several challenges as it fights for a niche in the sector.

“Our two primary competitors, Costco and BJ’s Wholesale, are growing faster,” McMillon said. “There is a long way to go in this thing. None of us thinks we’ve arrived … We understand that this is a journey, not a destination.”

Sam’s Club is currently the nation’s No. 2 wholesaler behind Costco Wholesale Corp. of Issaquah, Wash. That’s based on gross sales of $34.5 million last year for Sam’s U.S. stores, compared to $38.6 billion for Costco. Sam’s Club held the No. 1 position until it was overtaken by Costco in 2001.

McMillion said Sam’s was a “$38 billion company,” hinting that fiscal 2005 sales would likely hit that mark. Wal-Mart’s fiscal 2005 ends Jan. 31. This fiscal year in which Costco brought in $38.6 billion through its U.S. stores ended Aug. 31.

The seminar was sponsored by In-Town Advertising LLC of Bentonville.