Monday, January 24, 2005

Retail marketing: sales tax break

At Captain Bucko's Cigars, owner Duane Conover is paying the sales tax himself on all merchandise his customers buy through the end of January at his store.

"I've been in sales, marketing, PR all of my life, and a lot of different businesses do that, pay for taxes," said Conover, who also works as a salesman for Darvin Furniture in Orland.

"We're all looking down the barrel here with taxes, so I decided to do this. I lose 6 percent off the top, but I'm making a lot of friends. If people buy a box of cigars for $150, it's a savings. It's been such a good stimulant for business that I might carry this through to the end of February."
6% is a pretty small discount, but it makes a big impression because he's paying your taxes. That's smart retail marketing. This promotion would work particularly well around tax day April. Captain Bucko's has an entertaining website.


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