Some dealers are reporting a welcome upturn in sales over the past two weeks due to consumers spending tax return money.
While once a key 12 volt selling period, tax season has flattened in recent years. But our poll of industry members found this year may be an exception, as many dealers are seeing a boost in store traffic and sales.
20-store chain Custom Sounds & Tint, TX said sales are up this tax season, “for the first [tax] time in a while,” according to CEO Mike Cofield. He anticipates the boon to continue into the second quarter.
Part of the reason for the sales bump may be a new tax benefit. Congress passed a tax credit last year, but it took effect this year, giving US households an extra $300 to over $1,000. Taxes on tips and overtime have also been eliminated up to certain levels.
Tom Sweere, of Beach Autosound, CA said, “It’s just anecdotal, but people say, ‘Oh, I got my tax return,’ or ‘I’m waiting for my tax return.’ I don’t think I’ve heard a client mention a tax return in the last two years. And, we’re not even into the full season yet. Most people don’t do their taxes real early, so we’ll see.“
Kyle Kaulis of Real Audio & Electronics, Erie, PA is also seeing a boost in sales. “It doesn’t seem to matter the age of the person, they are always happy to tell you they got their tax return…There’s been an influx of non-routine customers. We’re seeing more entry level business. It’s much better than last year. Last year was horrible.”
Outrageous Audio, OR and All-Pro Audio, LA and several manufacturer reps speaking on behalf of many retailers in their territories also noted a healthy tax season this year.
Rob Sutton of Crossover Marketing said business picked up at the beginning of March with dealers attributing it to tax season. “All of a sudden it is a different kind of customer in the store. I speak for the Pacific Northwest, in five states, we are seeing an uptick in business and dealer mood with a focus on bigger tickets.”
Kevin Holden of Vault Marketing said, “It started to pickup with tax money about two weeks ago. People are coming in and they’ll tell you they are waiting on a check or they have a Jackson Hewitt tax card (a cash advance on their refund).”
Many of the dealers and distributors we called on the Northeast, however, said they are not seeing a tax season boost at present, as did several other retailers around the country.
And some retailers and distributors including SoundCrafters, FL, said sales began picking up in general over a month ago, though not necessarily due to tax refunds.
