Eagle adds $20 "marketing fee" to business licenses
EAGLE, Colorado – Eagle businesses will be charged an extra $20 on their business license fee bills beginning this year to help pay for marketing efforts in town.
The Eagle Town Board of Trustees approved the $20 fee, which will bring the town’s total business license cost to $70 per year. In addition to the $20 marketing fee, the town has agreed to earmark $25 of its traditional $50 fee to help fund a marketing effort.
Gypsum’s business license fee is $80 per year.
The contribution from the town is expected to generate approximately $20,000 for the development of a marketing plan. In addition to the town funding, the Eagle Valley Chamber of Commerce and the One Eagle business/citizen group have been asked to contribute $2,500 toward the marketing plan.
“Obviously we want our businesses to be marketed successfully and we want our businesses to be marketed to the broader community,” said Eagle Mayor Ed Woodland.
Woodland said town opted to institute the business license fee increase to pay for marketing because there is a logical relationship between the people who are paying for the service and the benefit that service will provide. At the same time, he noted that during the current recession, it’s difficult to charge businesses more money.
“Once you start raising fees to pay for things other people want, your are going to see some backlash,” he said.
Woodland noted that the town needs to see an additional $500,000 in sales to generate $20,000 in sales tax revenue to offset the cost of the marketing plan. But, he said, increasing business is what a marketing plan is specifically designed to do.
Holli Snyder of NRC Broadcasting is one of the members of the committee that has been tasked with developing the marketing plan. The committee will include two representatives each from the town, the chamber and One Eagle.
Snyder said the first order of business is to develop a budget and hiring a marking firm to develop a plan. “We want to have someone hired and on board by the end of January,” she said.
The committee is also focusing on development of a comprehensive events calendar representing activities planned by the town, community groups and the county. Snyder noted that making sure all the entities are working together, communicating about the plans and cross-promoting events will help ensure everyone has more success during 2010.
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