How mail-in-rebate works?. How can companies afford to sell product for $0(after mail in rebate) sometimes.?

Answer 1

I've always wondered how companies can afford to sell things that are "Free!" after rebates. They can't. They count on only about 15% of customers to file for rebates on such offers. Overall, figures show that at least 15% of all mail-in rebates are never claimed. I've since seen sources that put this figure above 50% -- which sounds more realistic. At least half of us probably just don't get around to claiming rebates. That's good for sellers, but it's our own fault.

Answer 2

Most people who actually receive the ability to have the mail in rebate will not spend the time to fill out the information and take the time to mail it off, I know this from first hand experience. Most of the time it takes registering the product first and then sending in the rebate to get it back. In most cases most people will forget or feel its a waste of time

Answer 3

Companies can make money because not everyone who can get the rebate actually gets it. Not everyone can be bothered to mail the required items. People see the total after rebate price, see it's a great deal and buy. Maybe you remember to mail the upc, maybe not. And then once you get the check, they are usually void after 30 or 60 days. Sometimes they don't get cashed.

Answer 4

First of all, companies can easily produce goods for far below their resale value. Secondly, the profits gained by the lure of a rebate offer outweigh that which is lost to people who remember to take the time to collect the rebate.

Answer 5

If it is a reputable company you will get the money. I have done it. Don't buy from ecost though. I only bought two things, both had rebates, neither rebate came, one item broke, the company doesn't care.

Answer 6

Less then 10 percent of all rebates are sent in, so there is really little risk, but everyone who buys means to send it in, so the company makes extra sales.

Answer 7

Because most people never send in the paperwork. And, lately companies are stalling or not sending the rebates at all.

Answer 8

well, not everyone turns in the mail in rebate.. i always forget to turn it in before the deadline so they get their money that way...

Answer 9

they can afford it cause there stuffs usally sold on so many shelfs it dosent matter i mean some companies could more than likly afford to just give some stuff 4 free heres a cart fill it up !

Answer 10

because it gets the people that bought them at a discount that come back after the discount and buy more at a higher price