Tax Time is Approaching, Prepare Your Store

It’s 2017 and W-2s have been printed and mailed.  While you’re planning for you own tax obligations, be aware that many consumers are filing their own taxes and likely receiving a refund.  According to IRS data, “8 out of 10 US taxpayers will get a refund averaging just under $3,000”¹.  Often, these lump sums become the driving force behind a lot of irregular consumer spending habits.  There are a lot of ways you can put your c-store in the position to make the most of this tax season.

• Offer Check Cashing and Bill Pay

For the unbanked and underbanked community, tax refunds often come in the form of a paper check.  These consumers will be looking for a fast and cheap way to get their cash in hand.

A lot of consumers use their tax refunds to get caught up on bills and pay down debt.  Your c-store could be a great resource for those that want one easy way to pay all their bills in cash.

Whether you choose just one or both services, you’ll reap the benefits of increased traffic, additional surcharge income, and increased sales.

• Get an ATM

Many consumers will have their tax refunds deposited directly in to their accounts. Having an ATM in your convenience store means you can not only profit from surcharge revenue when customers withdraw their tax money, but bring in even more customers who are more likely to spend their cash on hand after using the ATM.

• Optimize Inventory

Make sure you’re prepared for consumers with more cash to spend by stocking up on the items they’re most likely to buy.  More money in consumer pockets means more money to spend on the things they really want, and even more impluse buys.

• Sell Prepaid Cards

Many consumers do not want to carry around thousands of dollars in cash for security reasons.  However, the unbanked and underbanked customers may not have bank accounts to deposit their refund checks into.  Having the opportunity to load their tax refund on to a prepaid card will not only help protect their funds, but also allow them to use their money ways they may not otherwise have been able to.  Prepaid cards give these consumers the ability to shop online and use services like Netflix or Uber.

• Run Special Promotions

Bring in more customers during tax season by offering tax-specific deals on products.  Consider trying some of the following tactics: using the word “tax” in your offers, providing a discount or special pricing that uses “1040” or “18”, position products as tax season “de-stress” items.

• Prepare Your Staff

During tax season, it is wise to make sure you have enough staff to handle larger crowds and keep lines to a minimum, especially during peak shopping times.  Consumers who have an enjoyable experience during this time, are even more likely to come back again and again.

Things to Remember

This year there will be some changes to the Nation's tax season procedures that may affect when consumers will receive and begin using their tax refunds:

• Deadline to file and pay is April 18^th
• Any tax returns claiming the Earned Income Tax Credit or Additional Child Tax Credit will be withheld until February 15^th.
• There is a three-day weekend for President’s Day, which is on February 20^th

Sources

1. http://advertising.weather.com/news/refund-alert-low-tax-season-spending/