Promotion and Marketing

Promotion and Marketing

Why Do Governments Offer Rebate Incentives?

»Posted in Promotion and Marketing

Have you noticed how some industries seem to pop up out of nowhere just because the local, state or federal government has created a rebate initiative for the industry?

We have seen it happen in Australia with the home insulation scheme as well as the solar hot water rebates that is currently on offer though a couple of different outlets.

So What Is The Benefit To The Government?

1. It Creates Jobs

These usually happen in economic downturn when jobless rates are rising. Buy creating a market for a product or service (by making it accessible to the average person), they are creating new jobs – because someone needs to be able to provide the product or service.

2. It Stimulates The Economy

We have seen a lot more of these rebates or incentives pop up in the wake of the global financial crisis. Every country wants to be seen to have good national economic figures and artificially stimulating a nations economy is commonplace.

3. Usually has a Health or Environmental Benefit

As you can see from the examples at the top, these rebates are usually in industries that have a health or environmental benefit. This is most likely to give the government a positive image in the eyes of its voters.

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