Demtel

Demtel International

Company type	Private
Industry	Home shopping, Marketing
Founded	1985
Founder	Warwick Doughty, David Hammer
Defunct	2001
Fate	Liquidated
Headquarters	Sydney , Australia
Area served	Australia
Key people	Tim Shaw, Don Lane
Products	Kitchen knives, compact discs, cameras, pantyhose, kitchen tools
Parent	International Media Management (from 1993)

Demtel International—commonly referred to simply as Demtel—was an Australian company specializing in home shopping and marketing, primarily recognized for its television infomercials throughout the 1990s. The brand name "Demtel" originated as a blend of the words "demonstration television".<ref name=Shaw19> Beyond launching the media career of presenter Tim Shaw, Demtel's prominent TV presence embedded its brand and promotional methods into Australian popular culture.

History

Established in 1985,<ref> Demtel International was founded by Warwick Doughty and David Hammer, both former staff members at the Australian branch of global marketing firm K-tel.<ref name=finrevHW> During the early 1980s, Demtel promoted compilation music albums, including the 1983 novelty release Beatle Barkers, which achieved sales of 860,000 units following a television advertising campaign.<ref name="cyclicdefrost">

In 1988, the Department of Business and Consumer Affairs imposed a $12,000 fine on Demtel for advertisements that falsely presented plastic costume jewellery as authentic.<ref name=finrev88> Despite this regulatory setback, the company’s revenue grew substantially—from $6.9 million in 1989–90 to $19.6 million by 1992–93—even during Australia’s economic downturn.

Between 1992 and 1995, Tim Shaw served as the face of Demtel’s infomercials, which were broadcast daily for up to 23 minutes. Drawing inspiration from successful US infomercial models, Shaw helped drive sales exceeding one million steak knife sets and 600,000 compact discs. By 1994, Demtel’s annual television advertising budget was approximately $10 million.

In July 1993, the company’s founders sold Demtel to International Media Management (IMM), a publicly traded entity on the ASX with plans to establish a cable TV home shopping channel.<ref name=finrev1> Following the acquisition, Demtel experienced delayed payments and legal conflicts with its previous owners, which contributed to a decline in IMM’s share price. Continued royalty disagreements, led to Tim Shaw’s departure in 1995; he was succeeded by talk-show personality Don Lane.<ref name=Lane> Shaw later disclosed that his compensation was only $200 per infomercial during his time with the company.

November 1995 saw IMM introduce The Value Channel on the Galaxy subscription platform, featuring Lane as host for selected programs.<ref> As IMM redirected its efforts toward this venture, Demtel’s prominence waned amid rising competition from online retailers and specialized home shopping networks. Ultimately, Demtel was liquidated in 2001.

An investigation by the Australian Federal Police culminated in former IMM CEO Michael Milne’s 2008 conviction for tax evasion and money laundering connected to his tenure overseeing Demtel.<ref> He received a prison sentence of four years and nine months in 2010.<ref>

Products and marketing

Demtel operated on a business model that involved buying products in large quantities and promoting them through telephone-order home shopping programs, with centralized distribution via standard postal services. Its offerings came with a "no questions asked, money back guarantee," often bundled to create urgency and perceived value. A common promotion included providing six complimentary steak knives if customers called within fifteen minutes of an infomercial broadcast.

The product range included kitchen knives, collections of compact discs, pocket-sized cameras, run-resistant pantyhose, and various other kitchen tools. Infomercials typically lasted between one and two minutes and showcased product demonstrations. While this approach effectively stimulated consumer interest, it was vulnerable to competition from discount retailers who stocked identical items. These retailers could undercut prices in physical stores while offering immediate product availability.

Political sphere

The term "Demtel" evolved into a pejorative expression within Australian political discourse, representing superficial rhetoric or electoral incentives. It has been mentioned in various political analyses and parliamentary discussions, such as:

• In 2010, Queensland Premier Anna Bligh condemned the opposition Liberal National Party’s website, describing it as having "No policies, 4,000 shopping items, and every one of them at a Demtel discount."
• During 1995, Canberra Times cartoonist Geoff Pryor portrayed Prime Minister Paul Keating as "the Demtel man," alluding to accusations of vote-buying and unfulfilled commitments.
• Senator Joe Ludwig in 2006 compared a government proposal to a marketing gimmick: "...sell you a Demtel square plastic box with nothing in it."
• In a 1998 immigration debate, Pauline Hanson addressed Parliament stating: "We have enough unemployment without multinationals bringing in foreign workers. But as the Demtel man says, But wait, there's more."

Athletics

Within Australian rules football, the phrase "steak knives" is used to describe an added incentive in transactions, particularly during player drafts. This expression derives from Demtel’s practice of offering complimentary steak knives to encourage purchases. Athletes referred to as "steak knives" are typically included in trades alongside more valuable players, as seen with Collingwood’s Jack Crisp.

See also

• Tim Shaw