Robbins, who doesn’t advertise the promos, said the impact on his sales is “minimal.”
But Vance Pflanz, president of Pflanz Electronics in Sioux City, Iowa, said his IR promos, which he aggressively advertises, helped during last year’s Black Friday.
At Costco, CFO Richard Galanti viewed scan-downs and instant rebates as one of many vendor programs that offer “pools of money” Costco must tap into in order to offer customers the lowest possible prices. With more than $3 billion in cash on its balance sheet, Costco is not hampered by any cash flow delays the promotions present, he said. “We’d love all these things to be netted out of the cost,” he said. But, he added, “If you’re not tapping into it, you’re leaving a portion of money on the table.”