Government Looks to Stimulate Appliance Sales
appliance sales are down about 15 percent this year so it comes as no surprise
that manufacturers and sellers are enthusiastic about the start of a new
federal program, administered by the states, that will provide consumers
with rebates up to $200 for buying new, more energy efficient models to
replace older units.
of Home Appliance Manufacturers (AHAM) in June provided a strong
endorsement of the program, funded at $300 million as part of the
federal economic stimulus program, saying it would “stimulate demand
for home appliances, provide consumers with tremendous savings
on the initial purchase cost and long?term utility costs of appliances,
and will also provide an important
environmental benefit by way of a significant decrease in energy
Notini, a spokesperson for AHAM, told CNBC, that a consumer replacing
an eight-year-old washer with an Energy Star model can save about $78 dollars
a year in water and electricity.
to a Wall Street Journal report, the $300 million for the program
was originally approved as part of energy legislation in 2005 but never
funded by the government. Because the program is being administered
by the states, each had to confirm their participation by Aug. 15. Now
that all 50 states have opted-in, they will have until Oct. 15 to draft
details on its execution. Funds provided by the federal government
are calculated by the population of each state.
Questions: Will the federal rebate program stimulate home appliance sales?
Is this sort of public funding necessary? What can retailers do to use
this program to stimulate even further sales activity?
- Program to Offer Appliance Rebates – The Wall Street Journal
- Dollars for Dishwashers? Appliance Rebates on the Way – CNBC
- DOE Initiates
Appliance Rebate Program to Assist Consumers with Purchase of Efficient
Appliances – Association of Home Appliance Manufacturers