7.4. EDSR 10-19-2020 - Laserfiche WebLink

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GIFT CARD DISCOUNT& REBATE PROMOTION Discussion with the EDA about allocating dollars to "rebate" Elk River 132C businesses who participate in gift card discount program. Commissioner Wagner was approached by a Together Elk River brand ambassador about a gift card program she had seen where a group of businesses offered 20% off gift cards as a promotion. Understanding the current economic difficulties facing retailers, restaurants, and others, Commissioner Wagner would like to discuss a similar approach through the Together Elk River initiative to encourage "SHOP LOCAL" during this holiday buying season. GOAL: Influx the local economy with immediate cash to continue supporting businesses and the Elk River economy during an unprecedented pandemic holiday shopping season. By offering a rebate it takes part of the burden off the businesses who are already struggling with capacity restrictions, etc. EXAMPLE: If, during the promotional period, Business A sells $2000 in gift cards at 20% off face value, Business A would request to the EDA a rebate of 10% of total gift card sales. In this example it would be $200, leaving the business responsible for only a 10% discount on their goods/services. EXECUTION OF PROGRAM: If this promotion is approved, Commissioner Wagner will bring it to the Together Elk River Brand Ambassadors at their October 21 meeting and engage the group to help promote and support the initiative. The ambassadors will be asked to help establish parameters such as: • Start and end dates of gift card sales • Redemption parameters • Ideas to encourage local businesses to purchase gift cards for staff giveaways, etc • Help with social media blasts and dissemination within networks of promotion CONSIDERATIONS: • Does the EDA want to establish a maximum rebate amount per business? • Does the EDA want to establish a maximum rebate program budget? • Staff time will be needed to assist with graphics and social media promotion. • The Elk River Area Chamber of Commerce would continue to be a partner through the Together Elk River initiative and advertise and promote through their channels and networks.