Rebates

[vraiblonde]

What is the purpose of a rebate? Why don't they just take it off the sale price instead of making you send in for a check or gift card back?

 

[MMDad]

Most people don't follow through so they get the sale without having to give the discount.

 

[mamatutu]

What is the purpose of a rebate? Why don't they just take it off the sale price instead of making you send in for a check or gift card back?

I know. Actually, I should have posted the same thing in the 'pet peeves' thread a while back. It is a pain in the butt to fill out the form, make copies of receipts, cut the upc off the box, and then have to pay postage. But, I guess, I will keep doing it if it is another way to save some money. Well, some you can do online. It is a marketing ploy that we have to do if we want to get the best deal.

 

[glhs837]

Most people don't follow through so they get the sale without having to give the discount.

If I drop the price, %100 of my units make me less money. If I offer a rebate, I sell less units total than I would with a price drop, but as MM noted, I'm still selling all units at full price, with only some customers even aware of the rebate, and those who are still buy intending to use it dont.

 

[itsbob]

If I drop the price, %100 of my units make me less money. If I offer a rebate, I sell less units total than I would with a price drop, but as MM noted, I'm still selling all units at full price, with only some customers even aware of the rebate, and those who are still buy intending to use it dont.

I won't buy anything that comes with a rebate, unless it's an instant rebate at the register.

Staples used to be the worst, and the requirements tonget the rebate were insane.. upc symbol, receipt, form downloaded had to filled out correctly, mail it in and hopefully by the time the 8 weeks is up you've forfotten about it and won't pursue the company for your money.

 

[mamatutu]

I won't buy anything that comes with a rebate, unless it's an instant rebate at the register.

Staples used to be the worst, and the requirements tonget the rebate were insane.. upc symbol, receipt, form downloaded had to filled out correctly, mail it in and hopefully by the time the 8 weeks is up you've forfotten about it and won't pursue the company for your money.

I guess companies that use rebates don't count on someone like me. I am a pursuer/fighter/never give up kind of gal.

 

[glhs837]

I guess companies that use rebates don't count on someone like me. I am a pursuer/fighter/never give up kind of gal.

They do, but like the house in Vegas, they play the numbers. The statistics, that is, that say for every fighter like you, there are 10 other customers who will not fight.
They still make money on you, of course, they never drop below their profit margin, they just dont make as much.....

 

[mamatutu]

They do, but like the house in Vegas, they play the numbers. The statistics, that is, that say for every fighter like you, there are 10 other customers who will not fight.
They still make money on you, of course, they never drop below their profit margin, they just dont make as much.....

I know what you say makes sense. It wouldn't make sense for a company to have a promotion that they would lose money on. I compare this to the amount of invites that have been sent out for my daughter's wedding. It varies, but I have heard that 10-20 percent will decline. I hope so!

 

[vraiblonde]

Most people don't follow through so they get the sale without having to give the discount.

That makes sense. Rebates don't influence my purchasing decisions; I buy what I want and the rebate is just a nice surprise. But I do send them in because...hey, it's free money.

 

[Dakota]

That makes sense. Rebates don't influence my purchasing decisions; I buy what I want and the rebate is just a nice surprise. But I do send them in because...hey, it's free money.

Me too but they really should make the process easier. Some places allow you to just go online and request the rebate. How easy and buyer friendly that is???

BUT they are betting most won't follow up.

 

[ProfMoneyWise]

http://en.wikipedia.org/wiki/Rebate_(marketing)

Check the "Rationale" section.

 

[GURPS]

• Once the UPC has been removed from the box, retailers can refuse to accept a return of the item.

that has always annoyed me ...

a couple of rebate experiences have been pleasant even easy, most are a chore

Recent trends

Some retailers have taken a step forward with offering consumers new ways to submit their rebates easily over the Internet, completely or partially removing any mail-in requirements. Staples, Sears, TigerDirect, and Rite Aid currently offer an online submission option for all or some of the rebates they offer. These special rebates are usually identified as such and have instructions for full or partial online submissions. This is touted as a more accurate processing of the rebate, reducing the potential for human or mechanical error and, in many cases, eliminating the postage costs associated with traditional mail-in rebates, although some require the UPC or proof of purchase to be mailed in. Most of these retailers still let consumers submit rebates by mail.

I have been surprised a few times in the MicroCenter Checkout -

X Product has a 30 dollar rebate, here is an extra receipt copy, and the web link for the rebate for is right here ....

 

[Tilted]

What is the purpose of a rebate? Why don't they just take it off the sale price instead of making you send in for a check or gift card back?

As others have already indicated, the failure of many to successfully follow through with rebate redemption can significantly reduce the effective size of the 'discount' represented by rebate offers.

Beyond that there are other possible reasons, but the most notable among them (at least from my perspective) is the accounting impacts of using rebates rather than price reductions. For example, a sale might be booked in the current quarter while the expense of issuing the rebate for it might be booked in a subsequent quarter. And, regardless of when the sale and rebate are booked, the full price of the sale might count as revenue while the cost of the rebate counts as an expense. In theory the bottom line (net income) isn't affected, but the top line (total revenue) is larger. There are also issues relating to who's footing the bill for particular discounting (e.g. the manufacturer, the retailer) and various marketing advantages to offering rebates rather than price reductions.

 

[huntr1]

Most people don't follow through so they get the sale without having to give the discount.

 

[ArkRescue]

Me too but they really should make the process easier. Some places allow you to just go online and request the rebate. How easy and buyer friendly that is???

BUT they are betting most won't follow up.

YUP and I was so busy I missed the deadline to get a big rebate on a can of paint I bought - stupid me - I can't afford to bypass money like that because I could have bought some critter food with that money.