Question: What would be the cost be for a "SHOP LOCAL" initiative? (Councilman Chapman)
Response:
In June 2024, AEDP launched a pilot Shop and Dine Local initiative provided through Bludot Open Rewards (Bludot), an app-based rewards program that enables AEDP to incentivize dining and shopping at Alexandria's small and local businesses. The annual membership cost for the Bludot is $7,080 per year (funded through AEDP’s small business program budget), comprising $2,340 for creation and maintenance of an online local business directory and $4,740 for app maintenance.
Additionally, AEDP committed to an allocation of $1,000 per month to fund the 3% incentive rewards that is core to the program, resulting in an annual total program cost of $24,000 in year 1.
As the end of the year one pilot approaches:
- Online directory: https://alexandriaecon.org/local-business-directory/ and available in the app. There are 726 participating businesses (all independently owned)
- Number of users: 1,427 users, approximately 50% have an Alexandria zip code, 50% throughout the rest of the Washington, DC region
- Total amount of purchases made in FY25: $428,493.15
- Total amount of rewards redeemed in FY25: $11,924.59
AEDP, in coordination with and amplification by Visit Alexandria, are prepared to continue this program into FY2026 at current levels- collecting data and regularly evaluating the pilot.
Continuation costs and Scalability:
Option 1: Continue to run the program as is- approximately $24,000/annual cost, no significant growth in users or purchases expected
Option 2: Baseline cost ($24,000) plus investment in marketing and advertising to increase number of users/customers-
- Funding of a targeted marketing & advertising campaign to Alexandria and regional shoppers: $11,700 - $46,200
- Increased funding of monthly rewards, for more users: $12,000 - $18,000
Total Option 2 cost: $47,700 - $88,200