Defending The Amazon Deal

Just because Amazon builds a distribution center in Cayce, S.C. doesn’t mean that the shopping habits of anyone in Columbia, Charleston, Florence, Greenville, Myrtle Beach or anywhere else in South Carolina are going to be affected. Amazon is nothing more than a website – same as it is to residents of California, New York, South Dakota, or any other state.wholesale Android Tablets

Amazon’s presence in Cayce is not going to change the way South Carolinians shop. For example, someone in Hilton Head who has always gone to Barnes & Noble, Best Buy or Wal Mart to purchase their books, CDs, and other electronics is not going to suddenly stop shopping there and start ordering online from Amazon just because they put a distribution warehouse in Cayce.wholesale ebook reader

Think about it: Some will shop Amazon, some will shop brick and mortar stores and some will shop both. The percentages will be pretty much the same before and after the Amazon center opens – if it opens.wholesale car recorder

And if it never opens, guess what: Those same people will still order from Amazon.

Obviously it would be a different story if Amazon was coming into South Carolina and opening new retail stores in every major city right across the street from Barnes & Noble, Best Buy and Wal Mart, etc. (and still getting the same tax deals).

That would be apples to apples, this isn’t.wholesale ebook reader

But then again, even if they were doing that – why would it be considered unfair? Amazon was looking to expand and was searching for the best best deal it could get. Our state saw that Amazon was looking to expand, wholesale tablet pc and decided that extending these incentives was a worthwhile investment given that this company was willing to create 1300-3000 jobs and generate $60 million a year in taxes.wholesale baby monitor

So, we went after them and offered a competitive package to lure them here instead of letting them go to one of our neighboring states.

If we want to be “fair,” then we should quit offering any type of incentives to any economic recruit.

Incentives are a part of business. For example, let’s say I go down to Best Buy and purchase a new 55-inch HDTV because they are offering a $200 gift card rebate through the end of April. Now, if you bought the same HDTV three months ago when there was no rebate and go back down to Best Buy today, do you think they will give you that $200 gift card? What about the people who buy one next month when the rebate offer has expired?

Is that “fair?” No. It was simply an incentive.

And what about everyone that goes down to their local Bi-Lo and purchase $400 worth of groceries for $15 using a bunch of bonus card discounts?

Following the logic of Amazon opponents, we should outlaw this incentive program because it isn’t fair to Publix – which doesn’t have a store savings card program.

Again, it is simply an incentive

South Carolina has two options with respect to the Amazon deal:

1. We can let Amazon leave and get nothing. Under this scenario, the same number of South Carolinians who were shopping on Amazon last year will be shopping on Amazon next year. Not to mention, our state once again looks idiotic and other companies considering doing business here will probably think twice because we don’t honor our commitments.

Or …

2. We can extend this tax exemption and the same amount of people that were shopping on Amazon last year will still be shopping on Amazon next year. Oh, and this deal also puts 1300-3000 South Carolinians to work, generates $60 million a year in payroll taxes (and several million a year to Lexington county school districts). In fact if you or someone you know is a school teacher or works in the school district and loses their job three years from now – those several million a year might have made the difference.