What are the purpose of mail-in-rebates? How do companies benefit from them?

Answer 1

1. Companies can move the items quicker by offering rebates, If they offered a rebate to the retailer, the item would still be marked up.
2. Not all customers mail in the rebates, therefore creating additional margins on the products.
3. Customers who do mail in rebates leave valuable information such as their mailing address, allowing the company to compile a marketing list for future promotions.

Answer 2

The purpose of mail in rebates is a very smart one. This is because when people here of a rebate or think of one, they consider it a discount. With this, the customer has another reason to buy to the item as a sort of guarantee of benefit on their side. Companies do not worry about this because 90% of people buy the item, and forget about the rebate or lose the receipt/proof of purchase. Most rebates must be completed before the next billing cycle which gives another disadvantage to the consumer.

Your Welcome =D

Answer 3

They benefit because a customer has had to buy their product in order to get the rebate. That may be a customer who might not buy that product without a rebate. Of course, there are some people who are addicted to rebating. They buy things that they have absolutely no use for them just so they can get the rebate.

Answer 4

you get the full effect/impact of doing a price reduction without the full expense. A large number of rebates are never submitted, even though they were the reason for buying. Increased sales with reduced cost of sales.

For accounting reasons, also. Rebates are seen as a sales/promotion expense rather than a reduction of revenue. This is important if the company has a revenue focus.

Finally, it is a way to lower your selling price on inventory already in the field without impacting the profitability of your vendors/distributors.

Answer 5

They get more sales because most of the time people buy the product and then forget to mail it in. It also takes 6-8 weeks for processing or whatever and this is time where they have your money and can earn interest or whatever use on it before giving some of it back.

There may have been some people that would not have bought the product otherwise and it's a tactic just like those coupons.

Answer 6

They figure that most people are too lazy to fill them out and mail them in so they do end up making money on them. I just got a rebated check 2 days ago and it was a nice suprise. I had forgotten about it!

Answer 7

Rebates motivating buyers to purchase the item..AND most importantly the collect names and addresses. This way they can send you offers in the mail.
In hoping that you'll purchase. Mail order..which does quite well.

AND they put you on list with other people that have purchased certain items, rebates, etc. Sell the information to those that are looking to get people that have purchased certain items.

Answer 8

because most of america doesnt mail them in, so the companies make like 25 extra dollars

Answer 9

Most people don't bother sending them in and some companies don't give your money back even if you do send it in.

Answer 10

yeap, because they assume you will forget to mail them in. you think you are getting a better deal so you buy. people sell themselves!