J.S. Hilsinger, Ltd

J. S. Hilsinger, Ltd.

Marketing Applications of Time Value of Money Concepts.

University

Professor

November 14th, 2013

Summary

After graduating in 1991, Jim Hilsinger spent 4 years in retail sales in Des Moines, Iowa. He had every intention of owning his own business. His dream of owning his own business was put on hold while he was offered a lucrative job in Illinois. He spent seven years as an account representative, where he gains valuable experience. In May 1998, he became aware of an opportunity in owning his own retail store in Des Moines, Iowa. Thompson Furniture. The owner is Louis Thompson; he has been Jim’s first boss after graduating from the University of Iowa. With financial help from Thompson, Jim became the owner of Thompson Furniture and renamed it J.S. Hilsinger, Ltd in 1998. With some modification Jim was able to increase sales by 20% in 1999 and 2000, with the strongest sales in December 2000. From 1998-2012, business was doing well and Jim looked to expand. He purchase Roundtable Furniture and expand J.S. Hilsinger, Ltd. He renames Roundtable and changed their line of furniture and replaced it with his own. To help with cash flow he held a tent sale and heavily discounted the eliminated furniture line. It gave him the much need publicity. He purchases McDougal’s furniture chain, which consists of 15 stores. He asked his old friend Vernon Graham to find unique promotions. Graham remembered hearing about two sales from the 1980’s. The first was from Pidgeon’s Furniture and Goodyear Tire gave away a U.S. savings bond. The second was a financing promotion. The third promotion was a weather related promotions. Hilsinger was intrigued at the ideas.

Analysis

Hilsinger Furniture’s Perspective of the Possible Promotions

1. Use the Pidgeon’s and Goodyear promotions as comparables to the cost of the proposed promotions by Hilsinger. How much did it cost as a % of sales then versus how much will it cost Hilsinger in 2013?...