There are big crowds at stores across Illinois today, with people rushing to buy new government-labeled Energy-Star refrigerators, dishwashers, washing machines, air conditioners, and freezers as part of the “Cash for Appliances,” program. Anyone that purchases a qualifying appliance gets an automatic and immediate 15% discount from Uncle Sam, who has set aside $300 million for this initiative, $6.5 million of that here in Illinois. To make the deal even sweeter, anyone willing to trade in an old appliance gets an extra $75 rebate. Similar to the “Cash for Clunkers,” program that dealt with automobiles, a good way to understand this program is by thinking of it as, “Cash for Kitchen Stuff.”
Given the state of the economy the last few years, retailers are excited about this program, because any business at this point is good business. Robert Bevilacqua, the CEO of Grant’s Appliances in Chicago, optimistically expects a very profitable weekend. Bevilacqua said, “we are kind of forecasting about four times the amount of business through the weekend.”
Many retailers, including Sears, are slashing prices even more, in an attempt to maximize the number of shoppers at its stores before the money runs out. Recently, this program was employed in Arizona and Iowa, and the interest was so great, the money was gone within a few hours.