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Razer Responds to the 90% Off Discount Code With a Surprising Result
On the 16th April 2013, Razer experienced one of their busiest business days of this year. A 90% off code appeared online and spread like wildfire over the Internet, allowing thousands of people to purchase top end Razer products for incredibly cheap prices. Razer are known for their high quality gaming peripherals which, sadly, come in at a little too expensive for some budgets. A 90% off code allowed people to purchase an item from the site and get it highly discounted, as seen in the image below. Razer potentially lost thousands in profits, and the code was quickly put out of action.
Since this occurred, an email was sent out announcing that most of the products were on back-order, and customers have speculated as to whether Razer will in fact honor their sales or cancel all of the orders. Min-Liang Tan, CEO, Co-Founder and Creative Director of Razer, today released the following statement on his Facebook page which may come as a shock to some readers:
A few days ago, a coupon code that provided a discount of 90% off Razer products at our UK Razerzone store went viral and thousands of orders were placed in the space of a couple of hours. This coupon code was NOT authorized nor approved by Razer and was generated by a third party to test our shopping cart (and left in our system unknown to us till now). When we discovered this, we had to shut down our site for a bit until we figured out what was going on.
While we have the option of cancelling the orders legally, we’ve always had a customer comes first policy at Razer and in respect of this incident, we have decided to honor the orders that were placed using the unauthorized code by Razer fans buying single products for their own use. Unfortunately, as the products are being sold well below their cost, it will likely cost us an insane amount of losses to make good on the orders which will really really hurt us as we’re still a small company – that much said, we want to do right by the community. For orders in the multiples of units for a single product, we will still give each an opportunity to purchase one item of each product ordered at the 90% off discount but not for multiple units of the same product. Our focus is on doing the right thing for our fans, the gamers and the community, not for resellers or users to profit from this. That’s not gaming, that’s not our deal.
So that’s the plan. It’s going to take a few weeks (and up to a few months in certain cases) to get all these orders processed and shipped—a lot of stuff was already back-ordered due to high demand—and we ask that customers please bear with us. We apologize to anyone miffed or confused by this week’s happenings in the U.K., we appreciate everyone’s patience, and we thank all of our customers for their support. Game on…
It’s quite astounding that Razer are choosing to honor the sales (to a point) despite the heavy losses they will potentially make, and the reactions from their fan and customer communities have been extremely positive. While they may make a loss at the moment, the potential for future sales and customer loyalty appears to have increased.