Consumers Split on Spending Tax Rebates
The results are in, Americans plan on doing a little bit of saving, and a little bit of spending when they receive their tax rebate checks. One Colorado shop is doing what it can to keep the emphasis on spending.
The National Retail Federation recently reported consumers plan to spend 40.6 percent of their tax rebate, which would mean a $42.9 billion boost to the economy. The others plan on paying down debt, either saving or investing it, or paying medical bills, the NRF found.
BJ Dyer, AAF, AIFD, co-owner of Bouquets, with three locations in Denver, says he’s going to encourage customers to invest their checks right into a Bouquets account, something the store has promoted successfully in the past.
After the 2001 tax rebate, Bouquets promoted a program to “turn your $300 IRS rebate into $400 instantly.” For every $300 a customer pre-deposited into a Bouquets house account, they received a $100 credit used for any future purchases.
“It was very successful,” Dyer says. “We still have some money in accounts that have never been used.”
Dyer says Bouquets plans on doing something similar this year, but with a wider range of options, such as $25 for every $100 invested.
Dyer says the deposits, which create immediate cash flow, are like receiving a business loan that you get to pay back very slowly. At the same time, it nurtures the flower buying habit among customers, who have “credit” waiting to be spent in their accounts.
“Even when their account is empty, they’ll still come to Bouquets, because it’s where they are used to purchasing their flowers,” Dyer explains.
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