Sedona retailers will join in a community effort Thursday, Aug. 20, to boost small business, jump-start the local economy and provide area consumers with dozens of bargains.
Spend $20 on the 20th, a promotion spearheaded by the Sedona Red Rock News, gives Sedona shoppers a chance to take advantage of numerous special discounts and at the same time, inject local small business with a much-needed shot in the arm.
If all of the NEWS’ 15,000 readers take advantage of the deals on display in a special section in the Wednesday, Aug. 19, edition, and then spends $20 more than they normally would on Thursday, Aug. 20, more than $300,000 would be added to the local economy in a single day.
“It would mean a tremendous boost to our business,” said Saddle Rock Barn proprietor Mary Ann Johnson, “not to mention city tax revenues.”
What’s more, when retailers use the cash infusion to pay wages, purchase inventory, or make capital improvements, the same $20 spent Aug. 20 could turn into $30 or more thanks to what economists call the “multiplier effect.”
In theory, an employer will apply the $20 initially spent to replenish inventory, pay down debts, pay wages and cover other business costs.
When an employee spends his or her pay at another business, the owner of that business will pass the earnings on to other businesses to cover its costs. In this way the same $20 is spent and re-spent several times, multiplying its impact.
How much the $20 could multiply depends on whether the spending triggers a more sustained increase in overall spending and whether business owners spend the money locally.
“If this increase in spending of $20 is permanent, then the impact on the local economy is greater,” said Randall Russell, professor of economics at Yavapai College.
“If the increase in spending is permanent, you may be just lucky enough to double your local income, i.e., you may see a multiplier of 2.00,” he said.
Getting new shoppers in the door generates new sales and can generate future sales when customers like what they see and come back, said Dave Zarn, NEWS advertising director.
“Anything you need to buy is right here in Sedona and keeping our dollars in our local economy is so important, not only to the community, but also to the retailers,” Johnson said.
In the face of the economic downturn, retailers have gotten the message, Johnson said. Sedona business owners have generally reduced prices aimed at tourists in order to attract local business and stay competitive, she said.
Now, with the deals and bargains available through the Spend $20 on the 20th initiative, area shoppers can expect to see big savings.
“I’m real excited about it,” said Karne Snickers, owner of Cabana Shoes in West Sedona. “For me it’s a way to say thanks because that’s what’s been keeping the doors open so far — local customers. They are a blessing.”
Greg Ruland can be reached at 282-7795, ext. 127, or e-mail to editor@larsonnewspapers.com
