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BUCKSPORT – The town has come up with an innovative way to attract and keep customers in town – lure them in with cheaper gas.
In a program funded in part by the town and the local credit union, the town plans to work with merchants to offer coupons for discounted gasoline at the two stations on Main Street based on the amount of merchandise purchased at each store.
“The more you buy, the bigger the discount,” said David Milan, the town’s economic development director.
Recent surveys of local residents have indicated that more people leave town to shop than come into town, according to Milan. One of the factors cited in those surveys, he said, is the high price of gas in town.
The promotional program will give customers who shop at participating stores the chance to earn coupons for as much as 60 cents off the price of a gallon of gasoline. Each participating merchant will issue a coupon from his store and redeem it for the discounted value when it is redeemed by the gas station.
“We think it will help customers of Bucksport businesses and help attract people from other towns to shop in Bucksport,” Milan said.
Wilson’s Exxon station already has signed onto the program. The station manager at the local Irving supports the idea and is waiting for approval from corporate headquarters, Milan said.
Town councilors last week voted to kick in $5,500 that will be combined with a contribution from the Seaboard Federal Credit Union. Those funds will be used solely for printing the coupons and a marketing campaign for the program, Milan said. The gasoline discounts will be covered by the individual businesses that issue the coupons.
Milan had waited for council approval before formally recruiting businesses, but about a dozen merchants already have agreed to be a part of the program.
Although councilors supported the promotional plan, they had some questions and reservations. Councilor Mike Ormsby, who cast the sole vote against funding the project, said it seemed to benefit the two gas stations in town.
“We always talk about the price of gas in Bucksport being higher than any place else, and no one seems to know why,” he said. “The merchants are giving the discount, and the gas stations selling the gas are going to benefit. There’s no discount from them. They’re still selling at the same price, and they get the benefit.”
Milan said that issue had been discussed with merchants and it did not seem to be a factor.
“The question the merchant has to ask is: ‘Am I going to increase my sales?”‘ Milan said. “If you’re going to bring customers to your door, it doesn’t matter if the gas company makes money or not.”
Councilors also questioned the one-time use of the discount coupon. The coupon will give the customer a discount on a certain amount of gasoline – for example, 10 cents a gallon off on 20 gallons. If the customer only buys 17 gallons, he gets the discount on that purchase but can’t bank the remaining 3 gallons and get the discount the next time around.
That didn’t seem fair to councilors, especially since the merchants will be responsible for the full amount of the coupon when it is redeemed by the participating gas station.
“This plan has some holes in it,” said Councilor Sharyn Betts.
The merchants, however, are willing to accept that loss if it means they can attract more customers, Milan said.
At this point, the coupons cannot be redeemed for heating oil, Milan said. If the project is successful, it could be expanded in the future to include heating oil.
There are still some details to be worked out, he said, so the promotion will not begin until sometime in February.
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