The purpose of the tax-free holiday is to stimulate sales and lessen the financial impact on consumers. For some states, it comes just in time for back-to-school shopping. Consumers, especially moms, are very receptive to messages during this time as they look for the best deals on items their household needs and/or desires.
As I prepare to potentially take advantage of Massachusetts' tax-free holiday this weekend, I noticed that many of the big name retailers are highlighting similar low prices on back-to-school supplies. After looking at three of these offers, I realized there is no point of differentiation between them. So, how can retailers differentiate themselves from the rest? Some retailers are finding ways by offering:
Additional discounts on specific items/brands
To take early orders
Additional lines dedicated to layaway purchases
In differentiating themselves, retailers are maximizing their sales potential. For some retailers, in states that have already had a tax-free holiday, approaches like the ones above have proven to be successful.
Below are a few articles on how retailers prepare for the tax-free holiday, and the success others have found.
http://www.capecodonline.com/apps/pbcs.dll/article?AID=/20080814/BIZ/808140310
http://www.news-record.com/content/2008/07/29/article/retailers_prepare_for_tax_free_weekend
