Is there a time restraint suggested on the “Downtown Dollar”
promotion?
Yes, it would typically run from December 1 until January 15th
for the Christmas season, however, this promotion can also be run during
a special event or festival within the community.
Who covers the liability of the discounted portion of the “Downtown
Dollar”?
The Business Improvement Association covers the
liability of the discounted portion of the “Downtown Dollar”.
Here is how it works:
Some financial institutions may have a corporate policy around
this process, however, the Royal Bank in Strathroy, Ontario provided
this service at no charge, as part of their community involvement.
The process:
- The financial institution creates a holding account for the Business Improvement Association from which they debit the purchase credits.
- In other words, when the customers purchase the dollars, the
financial institution credits the account.
- The financial institution then debits the same account as merchants
redeem the dollars after the sale.
- The financial institutions will not assume any risk with this
venture.
- The customers pay $90.00 for $100.00 worth of “Downtown
Dollars” at the financial institution.
- The customer then uses the “Downtown Dollars” to
make purchases for products/services within the Business Improvement Association membership.
- The merchant can then add an additional discount within their
business to make it even more attractive for customers to shop
downtown.
- When the merchant receives the “Dollars,” he/she
returns the “Dollars” to the financial institution, whereby they are
given full value for these “Downtown Dollars”.
- There is a strict timeline for redemption of the “Downtown
Dollars”, ie… from December 1st to January 15th. This
creates the desired level of urgency.
Need to know
more about the program? Use our Information Request Form
to let us know about your project. |
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