How Doom Spending Can Boost Lighting Sales

Results from a February survey of 2,000 American consumers released last week from CreditCards.com estimated one in five people are “doom spending” — meaning, they are spending more than usual ahead of the upcoming tariffs affecting goods imported from China, Mexico, and Canada.

Roughly 19% of survey respondents indicated that they are buying “significantly” more (5%) or “slightly” more (14%) items than usual; 37% state the tariffs are having “some” impact, and 29% say the tariffs “greatly” impact their desire to make additional purchases before they would have normally been ready to buy.

The CreditCards.com survey results estimated 28% of Americans have made a large purchase over $500 since the November election, and 21% have not made a large purchase yet, but are planning to do so soon.

Of those who made a large purchase, the most popular categories they spent on were electronics (39%), home appliances (31%), and home improvement materials (25%). Other big-ticket items included furniture (22%) and cars (17%). When asked about the impact of Trump’s planned tariffs on their large purchases, 22% of respondents say the tariffs had a “big” impact and 30% report “some” impact. Just over 20% claim there was “not much” impact, and 26% felt there was no impact.

“Researchers at S&P Global estimate the new tariffs could trigger a one-time increase of 0.5% to 0.7% in U.S. consumer prices, assuming the tariffs remain in effect through 2025,” says John Egan, credit cards, insurance and personal finance expert contributor for CreditCards.com. “But it’s too soon to say precisely how the new tariffs imposed by President Trump are affecting consumer spending. However, they very well could cause some consumers to rethink their buying habits, especially when it comes to major purchases.”

One of the drawbacks of doom spending is that it could cause a strain on consumer budgets. “In addition, doom spending might lead [consumers] to pile up credit card debt, which could put [them] in a financial hole due to interest charges and fees,” Egan comments.

Besides buying a home (new or existing), furnishing that new residence is high on the list of costly expenditures. During the pandemic, many consumers who were able to continue their work from home directed their discretionary dollars into home improvements since travel, entertainment, dining out, and sports activities were severely curtailed. While many lighting manufacturers and showrooms were reluctant to crow about an uptick in sales at a time of national crisis, the home furnishings category overall – including lighting – did rather well in that time period.

Then came the ensuing sales slump, after new furnishings were purchased, renovation projects completed, quarantines lifted, and consumers resumed spending on travel, dining, and “experiences.” Sales fell flat and have stubbornly remained so for the last two years.

Your Immediate Sales Plan

The arrival of tariffs this spring will presumably slow down purchases of lighting and furniture, but how about those customers you have already established relationships with through past lighting upgrades, remodeling projects, and moves? How about the customers who came in last year after purchasing a home and walked out without placing an order, stating they would purchase their outdoor lighting, kitchen or bath lighting, or great room chandelier “later” or “next year.” Now is the time to go over your client lists and contact those who were undecided or who made Wish Lists on your showroom’s website and have yet to come in.  Reach out to those customers and give a gentle nudge that the time to buy their new lighting is now — before the tariffs take effect and prices increase. As their trusted lighting consultant, you are doing them a service by advising them about the timing and ultimately saving them money on the lighting fixtures they really love instead of them having to select products they don’t like as much because the tariffs have maxed out their budget.