Bob Phibbs, the Retail Doctor® blog at Retaildoc.com

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Great breaking news! Consumer sentiment improved more than expected to 54.1 in August.

At the same time comes news from the WSJ and others that the government is going to offer appliance rebates.  The government will take the markdown so the manufacturer maintains their profits. Here are the details in a nutshell.

“Beginning late this fall, federal rebates will be available for purchasers of high-efficiency household appliances, furnaces and air-conditioning systems. Congress authorized $300 million for the program earlier this year as part of the federal economic-stimulus bill. After seeing the recent surge in new-car orders attributed to the federally funded cash for clunkers program, appliance industry executives are hoping to lure consumers back into appliance store showrooms with rebates that are expected to reach $200 on some types of appliances.

‘It’s a good way for the consumer to get back into the marketplace,’ said J.B. Hoyt, director of governmental relations for Whirlpool Corp., the world’s largest producer of household appliances by revenue. ‘Clearly, anything that boosts business is good for us.’

What’s next? Cash for Clippers to help the hair salon business? Cash for Killers for the pest control business? Cash for Kickers to help soccer retailers?

When I was in seventh grade, I sold holiday greeting cards door-to-door in the hot Toledo, Ohio summer.  Prices were fixed and a customer got a discount if they ordered more than 3 boxes.  I also sold candy for school.  If I gave a discount, or ate any as the case may be, it came out of my pocket.  That’s basic capitalism. Cause and effect.

With appliance manufacturers looking for a handout to move their machines, there is nothing out of their pocket – its someone else’s money.  Same with the CEO’s of the companies running big discounts still, it’s not their money really.

For the mom and pop retailer, any discount IS their money, their livelihood, their mortgage payment.

We have gotten so bad at selling anything that we can’t sell anything without a “deal.”  That cripples our economy. People mark things down to make the sale, not make a living.

I’m hosting an intensive selling workshop in Chicago Monday, Sept. 21 for anyone looking to sell more of their products or services.  Full details are here. Sales training is the magic bullet to growing your sales, not discounts.  I have the track record to prove it in any economy.

Consumer sentiment is up – are you ready to sell the merch or continue sitting there looking for a pathetic handout like Whirlpool?

You won’t be able to use the excuse  its “the economy” any longer. Change or die my friends. Take my challenge and meet me in Chicago next month.

Tomorrow, the legacy of Sears sales training…

© Bob Phibbs 2009

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