Companies and Brands

Why Is the NRA Giving Away a Jeep and 2 Guns?

courtesy of Fiat Chrysler Automobiles NV

The National Rifle Association (NRA) is raffling off a Jeep and some guns. Anyone can enter. Anyone. That seems not to make sense. What does the NRA get in return? A business school professor in marketing could give a few ideas.

The Jeep, made by Fiat Chrysler Automobiles N.V. (NYSE: FCAU) is a 2015 Wrangler model. It was customized by famous TV personality Jesse James. A 2015 model likely costs less than a 2016 one, and may have even been bought on clearance. A Wrangler is a relatively inexpensive Jeep model, with a base price of $23,895. The parts for customization can’t be inexpensive. No need to get legal permission from Fiat Chrysler, so no expense there. Whether Jesse James is paid is another question.

The giveaway includes two guns and $20,000 in cash. The two guns were customized by Jesse James as well. However, the guns themselves may be donated for branding purposes. No way to get a discount on the $20,000.

The organization claims the truck is very special:

NRA is giving away a 4WD ultra-rugged 2015 Jeep Wrangler. This OFF-ROAD BEAST boasts a custom-made Kevlar pickup bed, custom fenders, custom cargo rack, Mil-spec wheels.

Most of that may be accessories that can be added by some dealers.

The part of the giveaway that is not in the NRA’s favor:

The “NRA Truck Raffle Sweepstakes” is open to legal residents of the United States and Washington, D.C., age 21 years or older at time of entry who are licensed drivers. Online entries must be received between 9:00 AM Eastern Time (“ET”) on 10/1/15 and 11:59 pm ET on 9/15/16.

There are laws that prohibit contests from being promoted publicly and then limited to a number of people. The NRA, therefore, cannot restrict the drawing to NRA members.

In the final analysis, the promotion is almost certainly a push to bring in new NRA members and keep current ones happy. The NRA brand gets substantial visibility. New NRA members pay as much as $140 for a five-year membership. Direct marketers would say that new members are hard to come by, particularly for an organization as well known as the NRA.

A free truck and two guns, and $20,000. Cheap if the NRA picks up 500 new members or gets a good number of renewals.

Those are the business school numbers, anyway.

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