Amidst all the talk of infrastructure spending and tax cuts, the stimulus bill also contains an incentive that gets people spending and at least a small part of the economy moving immediately...no state or local officials have to approve, there's no waiting necessary. All people have to do is go out and buy some energy-saving windows.
Consumers can get 30% off the cost of new, qualifying windows: a value of up to $1500-far more than previous government incentives for window-buyers. And, that tax credit is stimulating sales at Window Nation in Bedford Heights.
On a recent morning, General Manager Chuck Thall convened his sales staff to take their questions about the tax credit.
SALESMAN: For my own personal, so I know how to tell every customer that we see, when you say credit, that means that it's an actual check that's sent back to them.
THALL: Correct. It's not a write-off; it's a credit that comes back to the customer at tax time next year. .
Some of these salesmen are new hires. As a direct result of the stimulus package, Window Nation has created jobs: taking on two new salesmen for its Cleveland office.
That's thanks to sales that are up 30% since the stimulus passed in February. The company is even thinking of adding a couple more sellers. Sure, it's small potatoes in this big, struggling economy, but you have to start somewhere.
And, it's a welcomed development for Ron Ipavec, who joined Window Nation a few days ago. He says the company has something most businesses can't boast right now.
IPAVEC: It's growing and so I thought it was a great opportunity to get involved and now is the time.
In fact, even the general manager is a new hire. Chuck Thall says the window business was weak until the stimulus came out.
THALL: I think what's it's done is that it's made a lot of people consider windows and home improvements who maybe wouldn't have in the past.
That's because with the tax credit and the reduced need for energy in a home, the windows can pay for themselves in a matter of years. Thall says, with the housing market in such bad shape, many homeowners can't move if they wanted to, so an inticement to do some home improvements hits the spot.
THALL: If they can't move, they want the quality. People are realizing that normally they would sell their house in a year or two. Now it might take five. So they don't want windows that are going to be not doing what they need to be doing in five, and they'll get the value when they sell the house as well.
While it's too early to know if energy efficient window sales are booming nationwide, Ducker Research, which analyzes the industry, says the replacement window business is a relative bright spot in an industry hurting with the decline of homebuilding. And a much-needed bright spot since analysts say window sales "fell off a cliff" at the end of 2008.
So, Chuck Thall of Window Nation is making sure his salesmen-including the new ones-are working as hard as they can for every sale. Because in this economy, a new punch could occur at any time.
THALL: Learn the four qualifying questions. And the last thing I'd say: I want goals by Friday. I want dollar amount.
And, with that, the sales team dispersed to sell some windows, buoyed by the newfound demand.