whats the point of mail in rebates?

Answer 1

I agree, just give us the darn discount at the check out. I think rebates are a marketing ploy to get you to buy something and big business knows most of us are going to forget to mail it in or lose our receipt etc.

Answer 2

It allows the seller to advertise a low price with "including mail-in rebate" in small print, & so attracts more buyers ... but a lot of people either won't claim the rebate (for various reasons) or will make mistakes & so somehow not qualify for the refund ... & so for those reasons the seller is actually making a bigger profit, on the average, than indicated by the price advertised. In addition, since some time passes between the time when the item is sold and the time they have to pay the rebate, they have the use of the buyer's money during that time, & so, in effect, have a free loan from the buyer and can be making money on the interest. The advantage to the buyer is that, sure enough, he can get a better price than he would without the rebate IF he applies and does everything right, fills out all the forms correctly & within the time limit, etc.

Answer 3

From the perspective of the selling company, it is a great way to sell more without losing much profit on each item. Basically, they know that many people will be a lot more likely to buy something if they think they are getting a good deal. However, once they buy the item, most people never get around to sending in the rebate form and actually getting the rebate. Effectively, they sell a lot more product at the regular price, and a small amount at a lower price (those who actually send in the rebate form). For example, if a company offers a $1.00 mail-in rebate on a $1.99 package of light bulbs, they will make more profit than if they put the bulbs on sale for $1.50 because everyone will be buying the bulbs at the regular price (and they will feel like they are getting a great deal, so more people than normal will buy), but very few will get around to sending in the rebate form.

Answer 4

Mail in rebates are a type of bait. The majority of people who buy products with rebates, never turn them in. The ones that do are very often told they didn't do it correctly. I have been dealing with rebates on products I buy for more than ten years, and even if you send everything they ask for, exactly the way they want it, they'll turn you down, then you have to appeal. I have gotten 90% of my rebates after appealing their crap, but most people don't appeal. It's a trick way for the company to list something for a really low price when it actually isn't. Even in the perfect circumstance, they get to keep your money for 6 to 10 weeks, drawing interest, so if they sell 10 million units with a 20 dollar rebate, they get 200 million dollars to draw interest for 10 weeks. That's a pretty good chunk of change........

Answer 5

Mail in rebates can be a very good thing for both the consumer and the retailer.

They give future money in weeks to come making our purchase a future bargin if we send the rebate in.

For the retailer, they get more of us to buy products at sometimes higher prices. Then lots of people do not send in the rebates.

Answer 6

For the consumer it's just the thought that they will get money back. The manufacturer prefers to do a mail in vs. an instant rebate becuase some people don't send them in. So they get full price and the consumer is luered in to buying the product because they like the idea that they will get money back.

Answer 7

the purpose of a rebate is to induce to consumer to pay more for the product by promising to return a small portion at a later date. one concerns is that the consumer pays tax on the entire purchase and doesnt get back the portion of tax paid on the rebate. i recently received a 9000.00 rebate on a car purchase and was required to pay tax on that portion. it reduced the price and i never paid that 9000.00 ,it was taken off as a rebate on a line item. this not right! this should be changed! they wonder why some dont pay taxes,with this lack of fairness, one feels cheated. in conclusion,rebates can cost you additional tax dollars;it would be better to just reduce the price.

Answer 8

My guess is that when people mail in the rebate paperwork, they are basically supplying the manufacturer with demographic information about who is buying their product (because return address is required), allowing the manufacturer to target advertising more effectively.

Answer 9

To entice you into buying their product. And they don't even have to pay off a lot of the time! Aren't lazy people wonderful?