At the start of this week, California workers will notice their paychecks are slightly smaller. In July, California legislature passed a plan to falsely increase state revenue until June by increasing the Personal Income Tax withholding by 10%. Technically this is not an increase in the personal income tax as any extra withholding will be returned in April, it is a matter of when personal income tax is paid. This increased withholding is being referred to as an “interest free loan” and will serve as a $1.7 billion cash advance for the government through next June. However, the timing matches right up with the holiday season. Will the withholding reduce holiday shopping?

The government argues that it will have a minimal impact on people’s income, with an income reduction of only about $10-$45 a month. The problem is, for California families living paycheck to paycheck, this “minimal” reduction is huge. CareerBuilder reports that 61% of US workers generally live paycheck to paycheck. However with this year’s Labor Day decline in sales and with Labor Day being considered a sales indicator for the upcoming holiday season, the withholding measure may lead to tighter wallets for California shoppers. California’s increased withholding, coupled with the other tax increases this year, makes Californian’s disposable income smaller and smaller. (Other impacts this year: sales tax increased by one percent, state income tax increased by .25 percent and dependent credit was reduced by two-thirds).

Who is affected most by this?

Local California business, particularly those in counties with higher unemployment rates, such as Riverside County with a September unemployment rate of 14.7%, might sharply feel the increased withholding tax. It is possible that people will use credit cards more this holiday season as an attempt to compensate for a lack of cash. Credit card processing capabilities may play a large factor in holiday shopping profits this year for areas with higher unemployment rates.

Companies who employ ecommerce web design for their websites and have developed their online marketing and search engine optimization efforts will be in a more comfortable place this holiday season. Websites with shopping carts will grant these businesses access to out-of-state customers unaffected by the increased personal tax withholding.

Get around the increased tax withholding measure:

People can change their personal withholding allowances through their employers or payroll services provider with the Employment Development Department’s DE4 form. The legislature is hoping most will not be wise to this technique.

It’s that time of year again- Comic-Con descends on Southern California this week for it’s 40th Anniversary Convention.  Why all the fuss about trade show displays?  For one, Comic-Con is fun- from sneak television and movie previews to presentations by award winning authors, the show doesn’t have the feel of your typical industry convention.  So in the spirit of Comic-Con week, here are a few tips to make the most of your big trade show event:

Plan ahead for sales. Are you planning to sell products or take orders at the show?  If you already have a merchant account, make sure you have a mobile credit card terminal, or if your display is equipped with a computer and monitor, an online payment mechanism that customers can use.  At the last minute, you can always download a credit card processing application to your iPhone to accept payments.

Prepare a press release. Create buzz before the event by announcing a new product, a new partnership, a new strategy…you can submit press releases to media sources directly or use a paid service like PR newswire to get the word out.

Send e-mail blasts. If you can get a list of registered attendees or industry professionals that will be attending the show, send an email a few weeks ahead of time about your exhibit.  A general flier is okay, but personalized emails with an attached flier are better- especially for bloggers (who might write about your business) or current customers (who you want to build a relationship with).  Keep e-mail marketing materials compelling by including a special offer or discount if a recipient visits your display booth.

Put social media tools to work. This one is pretty obvious: Twitter, Facebook, and your business blog are all free and easy ways to publicize your show appearance.

Use old-school tactics, too. Sure, e-mail blasts and social media are great for building brand awareness, but old-fashioned strategies like direct mail marketing still work wonders.  Make sure you send mailers out well in advance (at least 4 weeks before the event) especially if you plan to offer special deals or product samples at the show.  Mailers should encourage attendees to visit your booth to redeem a special offer, check out a new product, register for a discount offering, etc.

Re-think promotional materials. Don’t just pay someone to hand out fliers without carefully considering their content and message.  At a trade show, everyone is handing out promotional materials- your goal is to stand out among the crowd by encouraging interaction at your display and conversation with potential sales leads, customers, vendors, and industry taste-makers.  Make sure anything you’re distributing is worth the cost to produce.

Plan your display. Whether you’re attending a nationally prominent event like Comic-Con or a smaller, regional show, you’ll need an exhibit that stands out to visitors.  If you’ve never attended a trade show before, this can be tough- check out our Buyer Guide to trade show exhibits to start, and then work with vendors to prepare your exhibit based on your requirements.  Once you’ve got all equipment, do a “test run” putting up and taking down a pop-up display, or do a run-through with your exhibit staff before the show if you have a larger, more complex display.

Get visitor information. At the show, make sure you have a method for collecting contact information from exhibit visitors.  Then extend your marketing efforts beyond the show itself: take pictures at the show and post them on your website, send follow up emails- re-connecting is easy if you plan for it ahead of time.

The best exhibits are those that aren’t overly focused on selling, collecting lead information, or following a specific script or procedure.  Be welcoming- make your exhibit a fun place to hang out.  Some shows- especially those like Comic-Con- have a large audience that’s just there for fun.  Planning ahead for your show efforts will ensure that you’re able to relax and have a great time.