Dollars for Dishwashers

On the heels of the "Cash For Clunkers" program, the Federal "Dollars for Dishwashers" plan is being formulated to aid appliance manufacturers and retailers which can have an impact on your clients when the program is finalized late this year or early next year according to the Wall Street Journal's "Clunkers' Sequal Rattles Appliance Producers"....

"But the $300 million program, funded through the federal government's economic stimulus plan, is certain to lack the same pop, said appliance makers and retailers. The program's intent is to spur sales of energy-efficient appliances, but its small size would provide just a minor boost for struggling appliance makers such as General Electric Co., Whirlpool Corp., and Sweden's Electrolux AB.

Unlike the clunkers plan, the program allows each state to pick qualifying models and tailor rebate amounts. Ohio might decide one washing machine qualifies for a $100 rebate, while California picks another for $125"

"Some of the nation's biggest appliance makers are lobbying to make the plan rules uniform nationwide. They said the unknowns and the varying rules by state will make the program harder to explain to shoppers, in turn making it tougher to win sales.

The Car Allowance Rebate System, the official name for the clunkers program, was a roaring success with $3 billion allocated and nearly 700,000 vehicles sold. In Brazil, a stimulus program that offered a tax cut on household appliances, triggered a 20% boost in sales since April. Like automobiles, appliance-making requires significant activity, from procuring high-quality steel, production of compressors and other complex components, to transportation and warehouse stocking.

U.S. sales of major appliances have been sliding for three years, with shipments down 10% last year and 15% so far this year, according to the Association of Home Appliance Manufacturers.

The program "will provide consumers a unique opportunity to save money on energy-efficient appliances," said Dave McCalpin, chief marketing officer for GE Appliances. He said Fairfield, Conn.-based GE is working with state governments to adopt rebate programs that rely on Energy Star ratings."

This could be another opportunity to show how your property can help bring consumers into this new program and deliver results, start talking to your clients now and set plans for promotions surrounding the program when it launches.